Against expectations that auto sales would rise by at least 7 percent, March 2016 volume in the United States increased just 3 percent. Modest growth at General Motors and noteworthy drops at Toyota, Volkswagen, BMW, and Mercedes-Benz didn’t stop auto sales from increasing by more than 50,000 units, year-over-year. But the possibility that auto sales in March would climb to one of the highest levels ever failed to materialize despite an additional two selling days compared with March 2015.

Indeed, the daily selling rate achieved by the auto industry decreased even as March 2016 hosted 27 official selling days on the auto sales calendar, up from 25 one year ago. (Read More…)

If your neighbor tells you they’re thinking of buying or leasing a new midsize sedan, you wouldn’t be crazy to assume that they’ve likely visited the local Toyota, Honda, and Nissan dealers.

Yet the majority of U.S. midsize car buyers do not, in fact, choose the Camry, Accord, or Altima.

Diversity wins. The dominator isn’t all-conquering.

(Read More…)

As the U.S. auto industry achieved record sales volume in 2015, Mini’s U.S. sales were down 12 percent compared with Mini’s peak in 2013. And despite modest year-over-year growth in 2015, the year didn’t end so well. Mini sales plunged 20 percent in the fourth quarter, and sales have now declined in four of the last five months.

Through the first two months of 2016, U.S. Mini sales are down 13 percent, a loss of nearly 900 sales, even as industry sales grew by more than 3 percent. Indeed, in February, Mini volume plunged 24 percent as overall U.S. new vehicle volume rose to the highest February level since 2001.

Yet this is not a worldwide issue. Globally, Mini sales hit a record high in 2015 and are up 4 percent in the early part of 2016. Will a U.S. rebound soon follow? (Read More…)

The tiny, centre-mounted screen is controlled by a wheel and a mound of buttons. Controls for power seat memory protrude from the driver’s door, demanding the attention that protruding things tend to demand. Rubbing the driver’s right knee is plastic surrounding the centre console that would seem out of place in a car costing 10 grand less. The 3.7-liter V6 ignites with a level of coarse grumbliness that suggests Infiniti spent slightly more time on NVH than Blue Bird does on school buses. The faux wood applique — with which Infiniti liberally encompassed the shifter, climate, and audio controls — may be the same stuff Hyundai once used to make the XG300 appear upmarket.

Yet the QX50, riding as it does on only a slightly elevated 370Z architecture, is ridiculously fun to hustle down an empty rural road. The level of standard horsepower, 325 ponies at 7,000 rpm, shames its competitors. And for 2016, the Infiniti QX50 can ferry live human passengers in its rear seat.

As a result, U.S. sales of the Infiniti QX50 jumped 473 percent over the last five months. (Read More…)

The best-selling Toyota subcompact in America is a Mexican-built Mazda that’s sold as a Scion and will soon be sold as a Toyota. It’s a car that’s already called the Yaris R in Mexico and the Yaris Sedan in Canada.

Meanwhile, Toyota’s once hot-selling subcompact, the Toyota-branded Yaris, is a hatchback imported from France that scarcely attracts any attention at all.

In between, Toyota’s actual Japanese-built Prius C is increasingly unpopular. (Read More…)

Competition improves the breed?

In order to tighten its grasp on the American midsize truck market, the Toyota Tacoma was thoroughly refreshed for model year 2016, a necessary development following the arrival – finally – of all-new competition at the end of 2014.

Evidently, Toyota did not need to debut an all-new pickup truck in order to fend off new General Motors challengers and keep its hold on a segment Toyota has led since 2005.

Want proof? Nearly half the non-full-size pickup trucks sold in the United States in the first two months of 2016 were Toyotas. (Read More…)

Through the first one-sixth of 2016, U.S. sales of passenger cars sold by so-called premium brands plunged 17 percent. That year-over-year loss of nearly 25,000 sales occurred over the course of the auto sales calendar’s two lowest-volume months.

Lost in the story of booming auto sales volume in February 2016 — the highest-volume February since 2001 — was the underachieving premium market. Auto sales jumped 7 percent in February, a gain of 86,000 units, but 19 premium brands — from sector-leading Mercedes-Benz to one-model Alfa Romeo — combined for only a 1-percent year-over-year uptick during the same period.

Why, in such an apparently healthy market, are premium auto brands collectively losing market share? (Read More…)

The good news? Volkswagen of America sold more new vehicles in February 2016 than the company managed to sell in January 2016.

The bad news? Improving upon January’s results was a given. February volume was significantly stronger across the industry, just as it always is. Even as industry-wide sales grew 17 percent compared with January, Volkswagen sales grew 11 percent. And while the industry surged to its best February results since 2001, Volkswagen brand sales still fell to the lowest February total in five years. (Read More…)

The plan was straightforward. With demand for conventional midsize cars gradually decreasing and buyers in Fiat Chrysler’s U.S. showrooms increasingly turning to flexible Jeep SUVs, Chrysler 200 production would be temporarily shut down. Inventory was piling up. Inventory needed to be cleared out.

Rather than build more sedans, which would simply be piled up on top of existing unsold 200s, a six-week production hiatus would allow time for 200 supply and demand to realign at more realistic levels.

But the clear-out of those existing, unsold 200s — Automotive News says Chrysler had a 217-day supply of 47,000 200s at the beginning of February — isn’t having any measurable impact on 200 sales. In fact, while FCA wants to see 200s leaving showrooms in order for space to be created for new 200s once production is reignited, demand for the 200 is drying up. (Read More…)

Canadians purchased and leased nearly 43,000 SUVs and crossovers in January 2016. At the same time, fewer than 34,000 passenger cars made their ways to Canadian driveways.

This wasn’t an anomaly. Canadians also registered more utility vehicles than cars in January 2015, and over the course of 2015, only 2 percent more cars were sold than utilities, a margin of only 14,000 sales.

No, it wasn’t an anomaly, but the gap in demand was exceptional. For every passenger car acquired by a consumer, business, fleet, or governmental agency, the industry also recorded 1.3 SUV/crossover sales.

How soon before the U.S. auto industry makes the same claim? In January, as car volume plunged 9 percent and utility vehicle sales jumped 6 percent — despite an abbreviated sales month and an overall volume decrease — cars outsold utilities by just 1.1-to-1. That’s down from a 1.25-to-1 gap a year ago.

In other words, it’s about to happen. (Read More…)

U.S. sales of utility vehicles increased 16 percent last year. Amidst the modest decrease in volume reported by the industry in January 2016, U.S. sales of SUVs and crossovers jumped by more than 6 percent.

Yet even with drivers enjoying truly low fuel prices, we have not seen a return to the days of full-size, truck-based, body-on-frame SUV dominance in the modern SUV/crossover sector. In fact, U.S. sales of the 10 full-size SUVs which use full-size pickup truck platforms as a foundation collectively declined 2 percent as America’s auto industry soared to record highs in 2015.

And 2016 begins similarly. Two Chevrolets, two GMC, two Cadillacs, and individual nameplates from Ford, Lincoln, Nissan, and Cadillac tumbled 9 percent in January. (Read More…)

We knew it wouldn’t be easy for them. We knew it would get worse before it got better. But did you know it would be this difficult for Volkswagen of America to sell cars, and did you know it would get this bad this soon?

And could it get even worse?

Volkswagen brand sales in the United States tumbled 15 percent in January 2016, a year-over-year loss of 3,425 units. With barely more than 20,000 total sales, January 2016 sales fell to a 60-month low. Not since January 2011, when Volkswagen sold only 18,401 vehicles in America, has the company generated so little showroom activity. (Read More…)

News that 200 production would instantly end, albeit temporarily, was overshadowed by news that Fiat Chrysler Automobiles would, sooner than later, farm out the design and production of their small and intermediate cars to a rival automaker.

The Chrysler 200’s plant in Sterling, Michigan will undergo a six-week shutdown due to an inventory glut at dealers nationwide. Over the last three months, U.S. sales of the 200, FCA’s best-selling car in the United States in 2015, tumbled 46 percent to only 24,111 units, or about the number of Camrys Toyota sells every 18 days. (Read More…)

Is Toyota about to officially murder the company’s fledgling Scion marque? If so, it will be both the exact outcome analysts and observers and fans predicted for years and a surprising turn of events.

After thriving for half a decade prior to the economic collapse, Scion’s poor performance in recent years led us to assume that Toyota would tire of the brand’s inability to turn a corner. But then Toyota finally reinvested in the brand, launching a sports car, a conventional hatchback with the iM, and a new Mazda2-based best seller, the iA.

Only months into the tenure of the two newest Scions, the cars which accounted for six in ten Scion sales in January, Toyota apparently realizes that the potential of the iA, iM, and even a C-HR crossover is insufficient. Joining Geo, Eagle, and Merkur on the scrap heap of failed auto brands launched by large automakers, Scion is killed off just when we thought Toyota had decided not to kill off Scion.

(Read More…)

Minivan sales in America fell 8 percent to only 513,000 units in 2015, less than half the number of MPVs sold in the United States a decade ago. Yet the number of sales produced by the three biggest players, across four nameplates, are more than healthy enough to suggest Fiat Chrysler Automobiles is wise to reinvest in their Windsor, Ontario, plant and the all-new Pacifica van.

Of course, the degree of wisdom employed by FCA as the automaker goes about reinventing its van is up for debate. Switching from Town & Country to Pacifica? Leaving the Dodge Grand Caravan to lumber along in previous-gen form? Neglecting all-wheel-drive in a gaga-for-SUVs market? There are upsides and downsides to each of these decisions.

But FCA’s decision to stick with a segment from which Ford, General Motors, Hyundai and Mazda fled is a wise one. The minivan market is much, much smaller than it was a decade ago. But if half a million people in America want to buy a minivan every year, the automakers which historically controlled the sector will want to own as large a chunk of that market as possible. (Read More…)