According to our latest sales data, the Detroit Three have enjoyed something of a comeback relative to the “foreign” competition this year. And though it’s not clear how long that trend will last, the media is catching the Detroit-boosting bug again. The NYT’s Bill Vlasic epitomizes the mood, focusing on improvements in GM and Ford’s products in a piece titled American Cars Are Getting Another Look. Between IQS score improvements and anecdotal evidence of consumer interest in Ford and GM’s “gadgets” and “value,” Vlasic’s sidekick, Art Spinella of CNW Research, forwards an interesting theory for the death of the “perception gap” (a construct he helped create, by the way):
Ford has become almost the ‘halo brand’ for G.M. and Chrysler. Because of Ford’s success, people are less resistant in general to considering all of Detroit’s products.
Well, that’s not the dumbest thing ever said about the destruction of the perception gap… but it sure is a head-scratcher. Did Nissan and Honda just spend the last several decades skating by on Toyota’s sterling reputation (RIP)? Still, it might be interesting to hear Ford’s perspective on all this.
We knew that something was wrong with this month’s whisper number for Chinese car sales. If China’s largest carmaker, SAIC, improves by 23 percent , if Dongfeng is up 22.3 percent, then the total number will be somewhere in that neighborhood, and not “up by nearly 40 per cent over September 2009,” as it was rumored yesterday (no wonder we couldn’t find the official Xinhua release, it either had been withdrawn or it was never there.) (Read More…)
In this first look at Nissan’s 2011 Versa, we’re seeing a very different car from the high-roofed, gangly subcompact that has been dominating the B-segment sales charts all year. Which begs the question: should Nissan mess with success? With Kia’s Soul sneaking up on the Versa in year-to-date subcompact sales, will a sleeker sedan keep the Versa riding high, or will it lose out to boxier, more practical offerings?
According to Automotive News [sub], both General Motors and Hyundai-Kia have reduced their fleet sales percentages in the last year, as the two firms seek retail-level pricing for their recently-improved products. Ford and Chrysler? Not so much. As the top-selling brand in the US, Ford is simply using fleet sales to boost itself to the top of the pile. Winning the annual sales volume race is good for morale, but The Blue Oval should be careful not to delude itself into unrealistic expectations. For Chrysler, on the other hand, the continued practice of sending 40 percent of sales to fleets is big, big trouble.
Not only has Chrysler been barely making its minimum “survival volume” numbers (and some months, not), it also had a “come to Jesus” moment on the fleet issue back in April. At the time, Chrysler swore it would limit fleet sales to 25 percent of overall volume, but since that announcement, its fleet percentage has held steady at around 40 percent. For a company on the brink, the lost profits are just as important as the lost credibility. Meanwhile, each new Chrysler that ends up in a fleet cements the perception that Chryslers are the automotive purchase of last resort. And at this point, the perception probably isn’t too far from the truth.
Given the rush to load up cars with the latest technological gadgets, you’d think that in-car television would have taken off by now. But Chrysler, the pioneer of in-car live TV, has sold only 850 units of its FLO TV system since it began offering the $629 (plus installation) MOPAR accessory last year, according to the Detroit News. And now Qualcomm is winding down its FLO TV business (likely due to low sales, reports the LAT), leaving Chrysler with only the Sirius TV subscription service to offer consumers who want live TV in their Grand Caravan. Chrysler is
still developing a plan to take care of the customers with FLO TV as it learns more details of how the television service provider plans to stop offering its direct-to-consumer programming,
but it seems that the technology simply isn’t striking a chord with consumers. Which leaves the question: why? High price? Poor marketing? Or do consumers really draw a line between in-car DVD players (must-have) and live in-car TV (no thanks)?
OK, so what’s literally wrong with the picture is that TTAC needs a real graphics team. The larger, figurative problem: Ford is replacing its long-soldiering Lincoln Town Car, the granite-standard of livery transportation, with its unloved (5,701 sales year-to-date) MKT crossover. Say what you want about the old Town Car, at least it had a certain quietly anonymous gravitas. The MKT? Let’s just say that a stretched version will serve largely to make the adjective “cetacean” even more applicable to the baleen-snouted crossover. According to the Freep, Ford will offer
a standard livery vehicle with stretched second-row seating and a modified heavy-duty chassis version designed for limousine modification.
The livery version is available in both front-wheel and all-wheel drive. The heavy-duty limousine chassis will feature standard all-wheel drive for stretch limousine construction up to an additional 120 inches – or 10 feet – of wheelbase.
It’s that time again. The time that I report on the market that no-one cares about. The UK. The SMMT has released the car registration figures today and as predicted, they fell, but not as much as other markets. The UK saw new car sales fall by only 8.9 percent, compared to, say, Italy. Overall, the UK market still remains 7.8 percent higher than last year (to date). The Ford Fiesta remains the best selling model in the UK, which will do our balance of trade with Spain and Germany no favors. Diesel cars and alternatively fuelled cars all posted growth in September. What was also telling about this “growth” was this little nugget of information: Private demand fell, while fleet demand increased. That’s right, while private customers are fleeing, car makers are trying to sustain volume by following the fleets. Shall we take a look the breakdown? (Read More…)
It was actually a “Dear John” letter! No surprise, since that’s my proper name, and that’s how I registered my SRT-4 six and a half long years ago.
Dear John,
My name is (blah blah), manager of (blah blah) Chrysler Jeep Dodge and I am contacting you today to inform you of a special offer available designed just for you. Over the last couple of weeks we have had several customers inquire about purchasing a reliable pre-owned Dodge Neon…
It is not an exaggeration to say that I laughed for a full thirty seconds.
Speaking of India, it’s about time that GM gets its act together on the subcontinent. If you aren’t somebody in India you are missing the boat. If the augurs augur right, the subcontinent will be the fastest-growing car market in the world. (Read More…)
With the aftereffects of the Abwrackprämie, that German cash for clunkers on steroids, slowly abating, Germany is slowly coming back to normal. In September, car sales were 17.8 percent below September 2009 (red line), but only 0.6 percent below September 2008 (blue line). For the first nine months, sales are 27.5 percent below prior year, but only 8.6 percent below the same period in 2008. (Read More…)
New car registrations in Italy fell 18.9 percent in September to 154,429 vehicles. Of course that means major pain for Fiat, which holds about 30 percent of the market. Actually, more than major pain: Fiat’s sales in their home market cratered by 26.3 percent to just 44,161 vehicles in September. That according to Transport Ministry data, published by Reuters. And what did Sergio Marchionne have to say to that disaster? (Read More…)
So, this weekend has been crowned “Sexual exploitation” weekend? See what happens when you put a German in charge? If you can pull your eyes away from the scantily clad ladies, who have nothing between their ears, except for the photographer’s tongue, and look at a calendar, you’ll see that October is upon us. The beginning of a month. What could that mean? It’s the monthly sales figures! Which leads us to Toyota. (Read More…)
U.S. auto sales climbed 29 percent last month, the biggest gain of the year. (Nearly) everybody was a winner: All but two booked increases in September. Suzuki lost 12 percent (itai!), and the “others” brand lost 4 percent. Ford shot up 40 percent. Chrysler rocketed up by 61 percent. GM looked downright lame in comparison by growing only 11 percent. From Porsche (+ 25 percent) to Hyundai (+44 percent), from Daimler (+ 18 percent ) to Toyota (+17 percent), everybody reported huge gains. But why is nobody partying? (Read More…)
Japanese automakers keep saying the ever appreciating yen will be their undoing. So their government intervened, sending the yen back to 85 to the dollar. Once the intervention stopped, the yen continued its march upwards. Today, the Japanese currency stood at 83.31 to the dollar. Which is losing strength across the world. The Europeans received $1.36 for their Euro today. A higher yen making Japanese cars more expensive should hurt Japanese car exports, don’t you think? Let’s see. (Read More…)
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