Well, it sure looked like the Kia Soul was poised to take out the Nissan Versa as the king of the small cars, especially in light of Michael Karesh’s lukewarm review. But the new Versa has roared back into contention last month, outselling the two next-closest nameplates combined. The Soul is hanging onto its lead in the YTD numbers, but that won’t last if the Versa keeps up this pace. On the other hand, an updated, more efficient Soul is hitting the market soon, and Kia’s new Rio should help take the fight back to Nissan. Meanwhile, The Fiat 500 still has yet to outsell the MINI, Sonic and Veloster are just entering the market, and Hyundai’s brand-new (and reportedly supply-limited) Accent can’t move past Honda’s aging Fit. But really, there’s only one story here… how about that Nissan Versa? 

The Congressional Subcommittee on Regulatory Affairs, Stimulus Oversight and Government Spending held hearings this week on proposed CAFE standards, as part of Chairman Darryl Issa’s investigation of the regulations. The first panel’s testimony can be seen in its entirety in the video above (all prepared testimony can be found in PDF format here), and it’s worth watching. Though the predictable D.C. partisanship certainly shows up, Anwyl’s testimony was the highlight the hearing, being a tough but fair analysis of the standards. Hit the jump for a brief roundup.
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The idea that environmentalists in this country are waging a “War On Cars” has gained some currency within the right wing in recent years, fueled by the Obama Administration’s increased emphasis on public transportation and cycling. Of course, statistically speaking, the car is proving more than capable of defending itself, as sales and ownership levels remain improbably robust (in per-capita and per-GDP terms) despite the recent “Carmageddon.” But GM waded into the fray anyway, running the anti-cycling ad seen above in several campus publications (via bikeportland.org), likely in hopes of fighting against the kuruma banare phenomenon that began with Japanese youth abandoning cars and has progressed to a full-blown national love affair with bicycles. But cyclists are a passionate bunch, and GM’s ill-advised ad prompted a torrent of Twitter protests (see for yourself), eventually causing the automaker to apologize and pull the ad.

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Lotus invited a considerable amount of schadenfreude when, about a year ago, it introduced not one new car, but an entire new lineup. And there have been plenty of opportunities to steal a mirthless laugh at Lotus’s expense, including when the firm backed away from Toyota engines, talked up the “authenticity” of a rolling chassis, ran into Chinese branding problems, and drew inadvertent comparisons to Reebok by hiring rapper/producer Swizz Beatz. And the hits keep coming. Lotus Senior Adviser, Former BMW executive Karl-Heinz Kalbfell tells Autocar

The brand is well known but the products are not. We are focusing on a new range of cars, but we must sell more cars now.

But how well can the brand be if the cars aren’t selling? Speaking as someone who spends  bit of time interacting with auto enthusiasts, I’d argue there are actually some serious questions out there about what a Lotus is, what with all the talk of hybrids, folding hardtops, performance sedans and generally increased weights. But Kalbfell was just scratching the surface of the host of problems to be found in the land of the Lotus eaters…

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Thought the Midsized segment was heating up in September? A mere 633 units separate the Cruze and Corolla in their battle to become the best-selling Compact in America for 2011. And the way Elantra and Jetta are moving up the chart, this segment could could get a lot more interesting by the end of the year. In fact, the Focus’s weak performance this month makes it vulnerable to the Jetta in the Year-to-Date sweepstakes, despite appearing to be a strong entry in the segment. Back in July it was reported that Focus production was being slowed due to problems with a supplier of dashboard skins. At the time, a Ford dealer told the Associated Press

I know they’re working 24/7 trying to address whatever component issues they have. It’s a high-visibility issue with Ford Motor Co., and senior management is very concerned and very involved.

So, is there still a supply problem, or is the Focus just not selling? A quick look at inventory data shows that Focus started September with a 33 days supply and ended with a 74-day supply, which implies that any supply problems were solved last month. Going forward, the Focus should find its sales stride… or it will become another scalp on the Jetta’s belt.

The Chevrolet Volt may be beating cars like the Jaguar XF and the Lincoln MKT in the sales race, but GM won’t come close to building 120,000 of the plug-ins next year as the Department of Energy was expecting. Today GM confirmed to Automotive News [sub] that it will make 60,000 Volts next year… and it will do so while remaining on a single shift. GM had previously planned to add a second shift at the Det-Ham plant late this fall, but is putting that off until midway through next year, when production of the ’13 Malibu begins there. Until then, The General is adding 300 workers to the 10-hour, four-days-per-week single shift, a move the company says

will significantly reduce costs, and has no impact on the plant’s ability to make 60,000 Volts and Amperas (the European version of the Volt) in 2012.

Think 60,000 units is still more Volt than America will buy? Well, you’re right so far, but 15,000 of those will be exported to Europe, so GM only has to sell 45,000 US-market Volts next year. Although considering the Volt won’t crack 10,000 units this year, that’s still some strong projected growth. And as usual, the union local President sums up the situation with more candor than any executive would:

The sooner the better, but I guess demand will dictate when that happens. Hopefully we’ll get a third shift someday, too.

Because electric cars represent the first fundamental technological shift for the automobile since its invention, their appearance on the US market has elicited quite a bit of skepticism. And as with any new technology, the first generation of EVs does have some serious downsides. For example, you can charge a Nissan Leaf at any outlet, but it takes 21 hours. Also, the Leaf’s range that was once promised at 100 miles is typically under 70 miles in the real world. Plus, it’s not exactly cheap. In the face of these challenges, you might think the Leaf, the first mass-market pure-EV in the US, would be forever doomed to a small niche of the market. But small compared to what? To give a real-world taste of how America’s first pure EV is selling in the context of the broader market, here are the year-to-date sales numbers for the Leaf and 15 other vehicles that you might not expect to be selling worse than an electric car. Incidentally, all of these models are also selling better than the market’s other pioneering plug-in, the Chevrolet Volt… which now has its own graph in the gallery below.

We had midsized madness last month, as the Altima came within 500 units of unseating the mighty Camry and Sonata came within 500 units of sending the Accord tumbling further down the chart. Of the top ten best-sellers in the D-segment, only half beat their year-ago numbers, including Altima, Fusion, Impala, 200 and Optima. And though the YTD chart, which you can find in the gallery below, reflects the monthly sales order quite faithfully, it’s getting tighter… especially among the major players. Between the Malibu (171,266) and the Camry (229,521) there are six models in a 58,255-unit pack, and in September the Sonata pulled ahead of Malibu to snag fifth place. As we enter the fourth quarter, the competition is heating up…

When we reported sales on Monday our conclusion was that “big is big again,” as full-sized pickups dominated growth in a surprisingly up month. So, how do you sell a ton of trucks in a month where gas was still hovering around the $3.50/gal mark? Easy: just throw some cash on the hood. Edmunds Autoobserver reports

From a low that generally occurred around April, Ford Motor Co., General Motors Co. and the Chrysler Group LLC have markedly hiked incentive spending on full-size pickups. In April, the average TCI for the full-size pickup category – which also includes the almost statistically insignificant Toyota Tundra, Nissan Titan and Honda Ridgeline – was $3,261 per vehicle. At the end of September, the average incentive for full-size pickups ballooned by more than 30 percent to $4,281 per vehicle.

Executives from the Detroit automakers insist that this was not simply an inventory-clearing move (because, by industry standards, having three times your monthly sales on the lot is “acceptable”), but manufacturers have been trimming truck production all year and with Days To Turn rising, clearing off the lots makes sense. Especially going into the traditionally slow truck sales months of October and November. Hit the jump for more September incentive and transaction price data…

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Whenever our man in Brazil, Marcello DeVasconcellos reports on new model introductions in his home country, TTAC’s American audience is consistently blown away by the prices commanded by new cars there. Once, when asked why a new VW Amarok costs the equivalent of about $66,000 US dollars in Brazil, Marcello replied

Besides the very high taxes, there are the very, very healthy margins car makers practice down here.

Perhaps too healthy.

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Of all the persistent questions faced by the auto industry in these tumultuous times, perhaps the most pressing is: how many consumers would actually consider buying an electric car? There’s no single answer to this question, but we do have one new perspective on it today, courtesy of a study by Deloitte [PDF] which analyzed potential EV demand around the world through some 13,000 survey respondents. The major takeaway?

The reality is that when consumers actual expectations for range, charge time, and purchase price (in every country around the world included in this study) are compared to the actual market offerings available today, no more than 2 to 4 percent of the population in any country would have their expectations met today based on a data analysis of all 13,000 individual responses to the survey.

That assessment is well in line with other studies we’ve seen, most of which estimate global EV demand at somewhere between one and five percent of the market. But because potential EV demand has a lot of moving parts, from government regulations to the state of EV technology, there’s more to the study than that conclusion alone…

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Ah, my fellow Germans, so predictable. It happens after every crisis: After selfmedicated austerity (money or no money, does not matter,) at one point, all secretly get together and agree that too much restraint is a bad thing. Then, they go out and buy cars. More cars, bigger cars, faster cars.

And so, it happens again. New car sales in Germany, Europe’s largest and most influential car market, rose 8.1 percent in September to 280.689 units. This according to a count of registrations, performed by the German Kraftfahrtbundesamt. This is no one-month wonder: January through September, 2.4 million new cars were registered, 10.8 percent more than in the same period of 2010. (Read More…)

Hyundai and Kia are technically separate companies, with Hyundai owning less than 50% of its junior partner. But as the two major divisions of the Hyundai-Kia Motor Group, the two firms share resources and align their strategies through carefully-maintained relationships in the classic Korean chaebol (conglomerate) fashion. Hyundai has long been the senior partner in the relationship, getting the newest technologies and the most expensive new cars. But in both Korea and abroad, Kia is beginning to catch up with its big brother, raising questions about the future shape of its delicate relationship. Together, Hyundai and Kia enjoy a dominant position in Korea, earning 45.2% and 33.2% of the overall Korean market in 2010 (including commercial vehicles).  But if you just look at sedans and SUVs, the Korea Herald reports that their 2010 market share numbers are much closer: 39.6% and 35/7% respectively, and converging

Hyundai Motor Group is focusing on the possibility that Kia will catch up with Hyundai within one year in terms of monthly market share ― for sales of sedans and sport utility vehicles ― domestically for the first time…

The gap for sales of sedans and SUVs have continued to narrow ― 22.9 percentage points in 2007, 17 percentage points in 2008, 15.4 percentage points in 2009 and 3.9 percentage points in 2010.

And this fresh-brewed sibling rivalry isn’t just about Korea: around the world, Kia is catching up. And this shifting relationship is shaking things up at the highest levels of the group’s leadership.

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I’m sure the resident anti-GM-bias patrol won’t look kindly upon this double-dose of Volt skepticism, but at the point that GM’s Volt production is ramped up well above its sales rate, we should be paying attention to what GM is saying about the challenge of marketing the Volt. Automotive News [sub] reports that it’s still too early to compare Volt and Nissan Leaf deliveries in terms of a competition, arguing

Chevrolet and Nissan are still selling to early adopters and green enthusiasts and will be for most of the coming year. Their real challenge is to learn how to market the high-profile cars to mainstream U.S. consumers in mass-production volumes in 2012 and beyond.

To prepare for that, both automakers are using 2011 as a sort of practice year, taking notes, tinkering with tactics and honing their marketing messages.

And according to GM sources, there’s a lot of honing to do…

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Is the Chevy Volt a flop? It’s a question that plenty of folks both inside the industry and beyond seem awfully curious about, and one that I’ve tried to stay away from until we had some strong data to go on. And with nine months of 2011 under our belt, we’re starting to get a sense of where the Volt is going… and it’s not been all reassuring news. Jalopnik notes that such unloved GM models as the Buick Lucerne and Chevy Avalanche outsold the Volt last month, but failed to look at the important stuff: production as compared to deliveries, and inventory. Jalopnik does quote a Cars.com inventory  figure of 2,600 Volts on dealer lots, although the latest data we have from Automotive News [sub] shows 1,400 units in the national inventory as of September 1… which at that point  constituted a 121-day supply. Add in the 1,644-unit differential between Volts built and Volts sold in September, and the estimated Volt inventory across the nation should be closer to 3,000 units. We will be sure to update when AN gets new inventory numbers, but for now, the signs aren’t promising.

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