Dealers

Nissan Targets 5% of Brazil Auto Market Share with New Facility in Brazil

Nissan just opened a new plant in Brazil, with capacity to make 200,000 light vehicles per year. Nissan has built the Livina/Grand Livina MPVs and the Frontier pick-up in a plant owned by Renault in the southern part of the country. With the new facility, they will make the March and Versa in Brazil. Previously, they were imported from Mexico, but when Brazil set limits on vehicle imports from Mexico in 2012, they had to change their strategy. The new factory, which was built in 36 months,...
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Jeep Off to Extraordinary Start in 2014

As the automotive world focuses on the GM recall crisis, other stories are getting less visibility than they otherwise would. One of these is Jeep and its amazing start to 2014. Consider the following:
  • In the first three months of 2014, Jeep dealers delivered 145,839 new trucks, almost 45,000 (45%) more than a year ago, the largest increase of any brand in the industry (other than the 331% increase at low-volume Maserati).
  • Jeep captured 3.9% of the U.S. market in the first quarter, up 1.2...
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Are Brands Important?

In “Twilight of the Brands” in the February 17/24 issue of “The New Yorker,” James Surowiecki  discusses the challenges facing brands in today’s information-rich U.S. economy. Surowiecki focuses on Lululemon Athletica, a yoga apparel company that quickly became the darling of the industry and then tumbled almost overnight because of negative customer feedback. Such instantaneous customer reaction can propel a company to new heights or spell its doom in the blink of an eye, according to...Read...
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When Porsche Outsells Other German Luxury Brands in Brazil

Do you think a Jeep Grand Cherokee is a direct competitor of a Porsche Cayenne? Would you add the Volkswagen Touareg to the competitive set? Well, many Brazilian consumers do. And the results may be surprising. Let me start with the winner in the SUV/crossover segment. Land Rover is the preferred brand. The Range Rover Evoque sells over three times more than vehicle number two, the Volvo XC60. And the Freelander (LR2 in the U.S.) comes right in third place. Looking one length class above, the......
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Five Car Brands that Excelled in 2013 and Why

U.S. car dealers delivered 15,600,199 new cars and light trucks in 2013, up 8% from 2012. This is the fourth consecutive year-over-year increase and follows three years of double-digit growth from 2010 through 2012 as the industry climbed out of the 2009-10 recession. Of the 38 makes now on the market, 29 enjoyed year-over-year increases in 2013, eight saw declines and one (Tesla) could not be compared to 2012 since it had no sales at all last year. The five makes with the largest increases... Re...
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Luxury Share of U.S. Auto Market Remains in 10-11% Range

The competition in the luxury part of the U.S. new vehicle industry has perhaps never been as intense as it is right now, and, in a related trend, new product activity in this space is as frenetic as ever. BMW, Lexus and Mercedes-Benz continue to vie for luxury sales leadership with Audi and Cadillac aggressively trying to move up. Many of the luxury makes have been expanding into new segments, with such products as the Evoque, F-Type and CLA. There are other examples of this trend coming...
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Which Vehicles Topped Google's Search in Brazil?

When Google released its Zeitgeist 2013, a compilation of the most googled terms of the year, the Hyundai HB20 reached the top spot for the Brazilian automotive industry. It was followed by the Chevrolet Onix and Chevrolet Prisma. The new Volkswagen Golf and the Volkswagen Beetle (locally called Fusca) rounded out the Top 5. The HB20 hatchback, the Onix and the Fusca were launched late in 2012. There is no doubt the HB20 has written its success story in Brazil’s automotive history. With 3,312......
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How Quickly Should an OEM Phase a Vehicle Out?

I always think about the title of this post – how quickly should an OEM phase a vehicle out? – when I analyze Chevrolet’s numbers in Brazil, the second market for the brand just behind the U.S. Before I get to the figures, let me give you a quick background. Traditionally, Chevrolet had sold rebadged Opel models in Brazil: Monza, Corsa, Zafira, Meriva, Astra, Vectra. During GM's Chapter 11 time, no investments were made in Brazil, which got Detroit's approval of using local revenue to develop......
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Luxury Deliveries Climb at Year End

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,...
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Mercedes-Benz CLA Has a Strong Start

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...
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Let's Kick off Auto Show Season!

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...
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Will Automotive Luxury Brands Succeed in Brazil?

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......
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Farewell to Brazil's Oldest Vehicles

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...
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Huge Opportunity: Orphan Owners

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...
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Is there any Logic to Argentina's Auto Market?

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...
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Is There any Logic to Brazil's Auto Market?

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......
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Automotive Customer Loyalty - Who's Winning and How?

It's not always about who has the largest market share or the broadest product line. Sometimes repeat sales for OEMs and dealers are fruitful when you're a small player, too. Yesterday, Polk issued a press release of customer loyalty on automakers who beat the industry average by looking at first quarter results.  What did we find?
  • Thirteen brands exceeded the average industry increase for make loyalty when we compared buyer behavior from Q1 2012 and Q1 2013. The first three months of the...
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How Used Cars Are Hindering Mexico's Potential

Since January, Mexico has been able to import American and Canadian vehicles that are Model Year (MY) 2007 or older. Up until December, the limit was MY04 or older and in 2009, it was MY99 or older. In 2019, any used vehicle can be imported from the U.S. and Canada, regardless of its age. This is not a new problem: in 2006 and 2007, Mexico imported more used vehicles then it sold new cars. Although the imports cooled down last year, they gained strength again earlier in 2013. There was an...
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Toyota Camry’s Market Share Increasingly Under Pressure

It is no secret that Toyota owes much of its climb in the U.S. market to the success of the Camry. This sedan has been the most popular car in the U.S. every year since 1997, with the exception of 2001 when it was edged out by the Accord, and Toyota has not hesitated to stress the Camry's leadership position in its advertising. The Camry and Corolla represent the core of Toyota's car lineup in the U.S., though obviously there are other successful Toyota cars. The Camry's position at the...
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Venezuela Selling 2013 Vehicles with 2009 Prices

Venezuela was all over the news last week because of the death of its president, Hugo Chávez. President Chávez passed away after a battle against cancer, which included several surgeries in Cuba. What the international media did not pay attention is to a law approved in January that affects the automotive industry. How would you react if a law determined that all new vehicles from now on should have a sticker price from the first half of 2009? Moreover, could you, the dealer network, afford...
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