No, the G-Wagen isn’t gone for good… but let’s face it, we all know nothing lasts forever. Having been built with only one major technical change since 1979, the G-Wagen’s inevitable ride into the sunset is beginning with the end of production for the short-wheelbase, two-door version that we’ve never (officially) received here in the US. A complete shutdown of Graz, Austria production has been whispered about since (at least) 2005, when Mercedes nearly stopped shipping Gs to the US (according to Wikipedia, only an order from the US Marines [Devil Dog G-Wagens FTW!] stopped Mercedes from cutting America off from the G-loving). But, according to Auto Motor und Sport, the convertible and four-door versions will continue to be built… for the moment. Think of this as an opportunity for a bit of proactive mourning….
The established Accord/Camry duopoly on the Midsized segment wasn’t in any serious trouble this month, but as tsunami-related shortages hit Honda, Toyota and Nissan, things could be in flux. In fact, the big story for April seems to be the relaxing of demand for Fusion and Altima, which still occupy a distinct second tier behind Accord/Camry in the Year-To-Date race. Behind those four, the Sonata and Malibu are neck-in-neck in the YTD standings, with the fleet-happy Impala (easy there Bias Police, AN [sub] reports that “In March, about 75 percent of Impala sales went to fleets and rental-car companies”) and the supply-constrained Prius trailing the pack. And then there’s everyone else. Chrysler Group’s midsizers are improving their sales, Legacy is in a holding patter, Maxima is showing its age and the Mazda6… well, that’s just a sad story, isn’t it? NB: VW did not sell a single Passat last month. Passat CC numbers will be in our weird mash-up segment of large/premium sedans.
One of Jack Baruth’s many great contributions to modern auto writing is “Mr Euro,” an archetype he first identified in his excellent Ford Fiesta review. According to Jack’s original taxonomy:
Mr. Euro is the guy who, for some reason, wants the cars he cannot have in the United States. He’s the guy who says he would drive a 520i “in a heartbeat” given the chance, the dude who thinks we’re missing out because the Renault Twingo stays on the froggy side of the pond, the fellow who desperately wants a Vauxhall Zafira for child-lugging purposes.
Now, I hope I manage to avoid the most extreme expressions of the stereotype Jack describes here, but yeah, I’ve got some “Mr Euro”-ish tendencies. What can I say, the grass just looks greener on the other side… sue me. In that spirit, follow along as I explain why I’m leaving this dump and moving to China.
With all the excitement brewing in the Compact segment, some may be ignoring a building problem at the other end of the market, in the full-sized truck segment. Automotive News [sub] reports that GM’s truck inventory currently stands at 111 days of surprise, or a whopping 275,000 trucks sitting on lots. In April, Silverado was more than 3,000 units off the previous month’s pace, while Sierra was just over 1,00 units off. GM’s US market boss Mark Reuss tells the industry paper
We’re going to do something about it, but we haven’t made those calls yet… no one month makes a trend, so we’ve got to see where this one holds
Meanwhile, we’d be more worried about Chrysler, which saw Ram sales drop from nearly 22k units in March to 17,680 units in April. And not only is Chrysler more dependent on truck profits than GM due to its tighter balance sheet, it also has fewer high-efficiency alternatives to offer consumers who seem to be slowly responding to rising gas prices and moving towards more efficient offerings. And given that Automotive News [sub] is already noting that Chrysler has fallen behind on its “ambitious” sales goal and quoting analysts bemoaning Chrysler’s “perception” issues, it seems that Auburn Hills should be trying to get ahead of the story the way GM is.
In the comments section of Monday’s Honda Civic review, there was something of a rush to declare a new order in the hotly-contested Compact segment, with Honda notably losing out. Well, TTAC and its Best and Brightest tend to be a little ahead of their time, and the sales numbers for April prove that the Civic still attracts US car buyers in segment-leading numbers. But the monthly sales win was probably something of a bittersweet victory, as Honda dealers hunker down for what is likely to be months of tsunami-related supply interruptions. Meanwhile, the battle is getting feisty, with Hyundai and Chevy doing most of the disruption. Year-to-date, however, the Civic and Corolla are still maintaining their decades-long grasp on the compact segment. But then, the battle is only just beginning…
So, sales are up… but what are the automakers spending in order to get those sales? And what are they getting for their cars? Step inside our incentives and transaction price tracking center for a look at the factors that play affect how sales turn into profits (or don’t). But first, take a look at the graph above showing US-market incentive spending broken out by the regions where automakers are based. As usual, the US-based OEMs put more cash on the hood than their competitors, but more importantly notice how much money is spent on sales each month: nearly $2.5b was spent last month. And despite being a serious chunk of change, Edmunds AutoObserver says that’s the lowest overall level of incentive spending since 2005. So if you’re inclined to ignore incentives when it comes to your monthly sales education, you might want to start paying some attention…
A lot has changed in the auto industry in the three years since I started writing here at TTAC, and one of the more heartening developments has been the move towards ever greater transparency for all kinds of data, from sales breakouts to incentives to sales-weighted fuel economy. Though I’d like to think that TTAC played a role in helping push towards greater transparency and disclosure, the real heroes of this story are Hyundai (which has begun to release its sales-weighted fuel economy each month and is moving towards quarterly fleet sales breakouts) and TrueCar, which has possibly done more to put information in the hands of auto consumers than anyone else (TTAC included). TTAC thanks everyone who is helping push the industry towards ever more disclosure, and invites you to take advantage of these newly-available data points in order to better understand the ever-evolving face of the US auto industry. Here we present TrueCar’s TrueMPG data for April, which shows a .2 MPG improvement across the industry since April 2010.
It might still be a bit early to put a sub-head on this month’s sales, but if GM can serve as Bertel’s China car sales oracle, perhaps they’ll indicate the US market as well. And if they do, we’ll be seeing strong year-over-year sales increases, with much of the new volume coming from compact cars, while large trucks sit flat. If GM doesn’t indicate the market well this month, then we’ll be sure to update our headline when we update the developing sales table which you can find just after the jump.
Nissan’s NV200-based entrant into New York City’s Taxi of Tomorrow contest has won the contract (reportedly worth over a billion dollars), reports Reuters, beating out two other finalists, one based on Ford’s Transit Connect, the other from Turkey’s Karsan Otomotiv. The decision may be taking a few New Yorkers by surprise, as Reuters reports that the Turkish entrant’s clear glass ceiling made it a crowd favorite, and that
Karsan also hoped to gain favour with city officials by promising to assemble the cars in Brooklyn, vowing to use union labour. The plant would have marked a return of auto-making to the city for first time in about a century.
Though New Yorkers may have preferred a locally-built model to take over from the 16 vehicles currently serving as NYC Taxis, the NV200 seems like a sweet little van. So congratulations, Nissan… now, are we ready to start talking about a civilian version?
Zagato’s 100 year birthday present to Alfa Romeo, the TZ3 Corsa, was originally designed around the Alfa 8C’s running gear. So when Sergio Marchionne started showing dealers a new Viper prototype that “resembled the 8C,” I suggested that the TZ3 Corsa’s long-nosed, kammback profile made it a good role model for a future Italian-influenced Viper. And now, as if to explore that very possibility, Zagato has come out with a street-going TZ3 Stradale which drops the 8C underpinnings for a Viper ACR chassis and V10. Is this a look at the high-performance future of the Fiat-Chrysler alliance?
Hyundai’s latest Assurance marketing technique, which guarantees resale values on all 20111 model-year purchases, is already being hailed as the latest in a line of creative, zeitgeist-appropriate incentives. The one downside of guaranteeing residual values: well, people are free to draw their own conclusions from them. For example, it seems safe to say that the Azera and Accent should probably be replaced fairly soon, as their weaker resale values make them stand out from an otherwise extraordinarily consistent lineup. What’s that you say? The new Accent was announced at the same time as the resale guarantee? And an attractive new Azera replacement will be launched within a (the?) year? Er, carry on then.
In all seriousness, whenever Hyundai comes out with a new “Assurance” program, I’m sure a number of other brands look at copying elements. The genius of this latest program, however, is that it only really works if your entire lineup has been updated in a recent and consistent manner. Imagine a chart like this for certain other brands, and you’ll realize that the benefits of a strong and (possibly more importantly) consistent product line can be far reaching indeed.
Surveys of auto executives and analysts by Bloomberg and Reuters show that the US Seasonally Adjusted Annual Selling Rate (SAAR) hit 13m units last month, a 16 percent increase compared to April 2010. And though the market is up significantly from last year, it’s looking like April’s sales will be basically flat from last month. But the effects of the Japanese quake and tsunami are only just beginning to be felt in the US market…
Ever since Bertel showed us the newest version of the Buick GL8 minivan, with its “Business Concept”-inspired design and executive airport shuttle mission, we’ve been curious about the chances of it coming to the US. After all, GM hasn’t sold a minivan in the US since the Uplander died in 2009, a far cry from the 336,000-odd minivans The General sold in America just ten years before. But when we asked our Best and Brightest if Buick could use a minivan, the response was a fairly resounding “no.” One particularly uncharitable soul even suggested that we were trying to goad GM into making a mistake in order to have something to bash them for. But, as it turns out, GM’s US execs didn’t need to be goaded at all to consider bringing the GL8 to the US market. GM China boss Kevin Wales tells Reuters [via the Baltimore Sun] that
They’ve looked at it on and off as long as I’ve been out here. They’ve made a fundamental decision that says demand for that type of product’s not strong enough. We say that’s fine. We’ll just keep selling out here.”
Last week we discussed a rumor that suggested the new 2013 Malibu’s rear legroom might be compromised as a result of its redesign, and in the original post I included the official manufacturer numbers for rear legroom in the “big six” midsize sedans. This led to an interesting discussion in our comments section, and the comparison apparently caught the attention of at least one boss of a global automaker’s US operations. This exec (who has admitted to being a daily TTAC reader), wrote in to point out that there are two different SAE standards for measuring rear legroom, the L33 “Effective legroom” test, in which the front seat is placed at the appropriate distance for a driver in the 95 percentile of height, and the L34 “Maximum driver legroom” test, in which the front seat is placed all the way before measuring. As a result of our conversation, I thought I’d share a comparison of the six best-selling D-segment sedans using a different (and hopefully less-confusing) metric: combined legroom. You can move the seat, but you can’t run away from this metric…
Speaking from Shanghai, NHTSA Administrator David Strickland tells Bloomberg that “a number” of Chinese automakers have expressed interest in selling their products in the US, to which the auto safety regulator says:
When they offer their vehicle for sale, we will treat them like we will treat any company whether it is a Detroit company or a Japanese company or a Chinese company.
Strickland identified GM’s partner SAIC as one company that was interested in US sales, although the automaker says it’s waiting until it has “more suitable product” for the market. Chinese auto exports currently make up only 3 percent of production, a number the Chinese government wants to increase to 20 percent by 2012-2015. Separately, SAIC announced this week that it plans to invest some $1.85b into its hybrid, electric and fuel-cell technologies.
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