Friday, December 6, 2013 by
December brings to mind snow and cold, but for luxury dealers in
the U.S., this month will be the "hottest" of the year. U.S.
consumers purchase more new luxury vehicles in December than in any
other month of the year, according to monthly Polk new vehicle
registration data. This contrasts with the monthly tallies for the
non-luxury space, where March and August are the peak months.
Luxury registrations also rise in the spring, but not to the same
degree as non-luxury deliveries; rather,...
Monday, November 25, 2013 by
The Porsche Macan, Porsche's all-new small crossover revealed last
week in Los Angeles and to be launched in the U.S. next spring,
should be a "slam dunk," given the landscape of today's new vehicle
market. The small luxury crossover segment is one of the
fastest-growing in the industry, with registrations more than
quadrupling since 2008 and share of industry up by almost the same
amount (see table below). The number of small luxury crossovers in
the market has doubled from four in 2008 to...
Thursday, November 21, 2013 by
On Wednesday, November 13, the Automotive Professional Society
(APS) of New Jersey, along with the Society of
, held their Fall Networking Event. It was a
moment for those automotive professionals in New Jersey to come
together and explore a common issue in a friendly, non-competitive
manner. The focus of this APS meeting was to explore the concept of
experiential marketing. What are best practices for engaging
customers or prospects using these tactics? Can the automotive...
Wednesday, November 20, 2013 by
Monthly summaries of U.S. car and light truck sales focus on macro
results such as the seasonally adjusted annual rate (SAAR),
corporate results and brand results. Micro outcomes get less
publicity even though they may be as noteworthy, if not more so.
For instance, there has been little mention given to the fact that
Mercedes-Benz dealers delivered 4,895 CLAs in October, its second
month on the market. This tally follows 2,310 sales in September.
The October figure is surprisingly strong and...R...
Tuesday, November 19, 2013 by
I attended the 43rd edition of the Miami International Auto Show at
the Miami Beach Convention Center. This is truly regarded as the
official kick off for auto show season. Miami's show is sponsored
by the South Florida Automotive Dealers Association, which boasts
over 175 dealers. My experience began with a media launch party on
November 7th at the well-appointed Raleigh hotel on Collins Avenue.
This event boasted many local dealers, product specialists, show
event planners, members of the...
Tuesday, November 12, 2013 by
After two lackluster years, Jaguar is now thriving in the U.S. In
both 2011 and 2012, Jaguar suffered registration declines even
though the industry recorded double-digit growth. But this year,
Jaguar's registrations have jumped 25% through August when compared
to a year ago. This is the fourth highest year-over-year gain among
all makes (with 1,000 or more registrations) that were also on the
market for all of 2012, after Porsche, Cadillac and Subaru.
Jaguar's gain is almost three times the...Re...
Wednesday, October 9, 2013 by
For those of you like me who have been in the automotive
aftermarket industry for a number of years, you understand the
common challenge that all of us have been facing for over a decade
– how do you determine if parts being sold in the U.S. or Europe
have applications that can generate revenue in other parts of the
world? And how do you identify vehicles that are more likely to
have the same components as those on the road in different
countries? I've never found these questions to be easy...
Wednesday, October 9, 2013 by
Do you have the impression that the Brazilian president meets the
CEO of an automaker daily? Lately there have been a lot of
announcements that OEMs will start – or resume – production in
Brazil. This year, Honda and Mercedes-Benz announced new plants,
while Audi stated it is coming back to Brazil and making cars
in a VW plant where it built the A3 some years ago. VW confirmed it
is finally updating the locally made Golf (currently still in its
fourth generation). Last year, BMW announced its......
Tuesday, October 8, 2013 by
Leasing is not just back; it has climbed to new heights in the U.S.
car business. Through the first seven months of 2013, leases have
accounted for 20% of all new vehicle transactions, the highest
annual lease penetration in at least 10 years if it holds for
the rest of the year. The Fed's bond-buying program, which has
suppressed interest rates, coupled with the higher quality and
residuals of new vehicles, has helped to make leasing more
attractive to the consumer. This industry-wide rise...
Wednesday, October 2, 2013 by
U.S. new vehicle registration data indicate that millenials' (age
21-34) portion of total new vehicle registrations continues to
decline (see chart below). In the first seven months of this year,
11.2% of all new vehicle purchases were made by millenials, down
from 14.5% five years ago. There are two schools of thought on why
this trend is occurring:
- Millenials are not as interested in cars as their predecessors
because, among other things, today's millenials are immersed in the
Monday, September 16, 2013 by
Brazil is waving goodbye to some of its oldest vehicles. Not
because OEMs have decided to drop them or because customers were
not going to the dealer network looking for them, but because all
vehicles sold in Brazil beginning January 1, 2014 must
have ABS and airbags. And some last-longing models simply
cannot comply with the rules. That is the case of the Volkswagen
Kombi, known as the Transporter T2 in the country. Made in
Brazil for the past 56 years, it was the first vehicle assembled...
Tuesday, September 10, 2013 by
August U.S. new car and light truck sales were not merely good —
they were extraordinary. Consider the following:
- U.S. customers purchased 1,503,151 new cars and light trucks in
August, the highest monthly volume since May 2007
- This August total converts to an annual rate (SAAR) of 16.1
million, the highest monthly SAAR since November 2007
- The August year-over-year increase of 17% was the highest
monthly change since June 2012
- Every manufacturer enjoyed a sales increase in August
- August Ford...
Monday, September 9, 2013 by
Seeing the Signs Every new vehicle sold is a signal to OEMs that
customers want more of that type of car or truck. In essence,
customers are voting with their wallets and with business
interests ever focused on customer loyalty and customer retention,
an OEM should be seeing the market signs. National Trend: Consumers
Continue to Buy New Through the second quarter of this year
(2013 Q2), new vehicle sales are once again on the
rise in Canada. New vehicle registrations indicate that...
Wednesday, August 28, 2013 by
Drive on any U.S. highway for more than 10 minutes and you
can't help but notice the wide variety of vehicles on the road.
There appear to be dozens of colors, wheels, designs and body types
from which to choose, not to mention the variety of less visible
features such as engines, transmissions and connectivity
technologies. A visitor to the U.S. could rightfully be overwhelmed
by the plethora of different cars and light trucks on the road.
Yet, a review of body type registration data reveals......
Tuesday, August 6, 2013 by
When car owners either trade their vehicle for a new one or add a
vehicle to their household fleet, 55-60% of them choose a vehicle
from the same corporation as their existing vehicle. But what about
car owners whose brand has been discontinued (frequently referred
to as "orphan" owners)? This is now a topical question since GM and
Ford together have recently discontinued five brands. As of April,
there were over 14.4 million orphan owners in the U.S. (including
owners of vehicles from all...Read...
Thursday, August 1, 2013 by
There is mounting evidence that the three "domestic" automakers,
long known for their strength in light trucks, are turning out more
competitive cars and that consumers are noticing. New retail
registration data for the first five months of 2013 show the
domestics have gained almost two points of car market share (versus
the same time period in 2012) with almost all of this increase
coming at the expense of the Asian makes. The domestics have made
these gains while at the same time increasing...R...
Monday, July 22, 2013 by
If you follow my posts, you have read that there is not much logic
in Brazil's automotive market (if not, you can follow the link at
the bottom of the blog). Today, I will show that neighboring
Argentina faces the same problem. Argentina is struggling with
inflation. Last year, inflation was 10% according to the
government, but opposition in Congress says it was 25% – the
highest rate in South America and only behind Venezuela. The
government is known for reporting lower inflation and higher...
Tuesday, July 16, 2013 by
The "sweet spot" in the U.S. premium new vehicle market right now,
at least from a volume standpoint, is the compact crossover
category. Small luxury CUV registrations have jumped almost
four-fold over the past five years, with almost 75,000 being
delivered in the first five months of 2013. The segment's share of
industry has reached 1.15% and small luxury crossovers now account
for more than one of every 10 luxury registrations (with all
luxury crossovers together making up a third of the...Read...
Friday, July 12, 2013 by
At the brand level, the structures of the U.S. marketing and sales
operations of all the major automakers are similar with the
exception of one. The OEMs operating in the U.S. have one dominant
make accounting for at least 60% (and much higher in most cases) of
all its U.S. registrations while Chrysler's registrations are
spread more evenly across five makes (see chart below). Chrysler's
U.S. structure is the result of both acquisitions and a different
marketing strategy. Chrysler purchased...
Tuesday, July 9, 2013 by
Several protests took place in Brazil during the month of June.
Everything started with public transportation fares that were
increased, although the increases were less than $0.10. And even
after the increase was cancelled, protests kept going on, focusing
on corruption, the amount spent to build stadiums for the World
Cup, poor educational and health systems despite high taxes,
amongst other things. (For more about the protests, see the links
at the bottom of the blog.) Ironically, protests......