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......
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...
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...
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, June 25, 2013 by
Tax incentives were very effective in 2012 and helped
Brazil reach a new sales record of 3,573,076 light vehicles.
With this success, Brazil remained the fourth largest
automotive market in the world, just behind China, the United
States and Japan. Polk's automotive forecast does include any
changes in this ranking in 2013 when sales in Brazil are
anticipated to reach 3.63 million light vehicles. However, Brazil's
importance declines when we analyze production numbers. Last
Thursday, June 6, 2013 by
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...
Monday, March 25, 2013 by
On the eve of the 2013 New York Auto Show, the media has noted the
irony that one of the largest auto shows in the country is taking
place in a location where many residents do not even own a car.
What is less frequently, if ever, mentioned in the press is the
fact that the mix of new cars purchased by New Yorkers who DO own a
vehicle is far different from the mix in the rest of the United
States. One of the most vivid differences between new vehicle
registrations in New York and the rest of...
Monday, March 11, 2013 by
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...
Friday, March 8, 2013 by
The automotive industry achieved nearly 14.5 million new vehicle
sales in 2012, which resulted in a sales improvement of 13.4%
versus 2011. There are many contributing factors to this sales
achievement. The following all played a part in the industry
- Stabilized inventory levels from the Japanese automakers
- Several new product introductions from all OEMs
- Strengthening consumer confidence in the U.S. economy and
- Lower unemployment rates
Also in 2012, we began to witness OEMs placing...
Wednesday, March 6, 2013 by
Three new cars are striving to gain ground in the huge non-luxury
small car segment. The 2013 Dodge Dart was launched last June, the
redesigned 2013 Nissan Sentra last November, and the 2014 Kia Forte
sedan arrives later this month. This segment accounted for 16% of
all new vehicle registrations in 2012, second only to the midsize
cars 17.6% among the 32 segments tracked by Polk. The non-luxury
small car segment has been dominated for years by such well-known
models as the Corolla, Civic and...Re...
Thursday, March 7, 2013 by
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 as a dealer network afford to give back to all
you customers what they paid beyond those prices between then and
now? This can sound like an unrealistic scenario, but is a law
approved in Venezuela. The law was create after Congress inspected
and questioned OEMs, dealers and independent stores and got to the
conclusion that vehicles are...
Tuesday, February 19, 2013 by
Every calendar year in the third quarter, the automotive industry
is filled with excitement as OEM brands launch new model year
products. These launches are comprised of new variants (engine,
drive types), product refreshes/facelifts, all new product
offerings and the next generation of existing models. In the third
quarter of 2012, two Japanese automakers (Honda and Nissan)
launched the next generation of their mid-size sedan models. The
all new Honda Accord and Nissan Altima boast... Read More...
Wednesday, February 13, 2013 by
With the economy continuing to strengthen, more and more vehicle
owners are in the market and actively shopping for new cars. With
automotive sales approaching pre-recession levels, I wanted to
review the Designated Market Areas (DMAs) displaying the
highest brand loyalty. For this question, I decided to focus on
DMAs that had the highest level of owners that returned to market
and acquired a new vehicle during 2012 (through November). The
chart below shows the results with the grey bars... Read...
Monday, February 11, 2013 by
January 2013 U.S. new light vehicle sales climbed 14% from a year
ago and sales for the rest of the year are expected to climb as
well, though at a more modest rate. There are several drivers of
this growth, both at the macroeconomic level and within the
industry itself. Consider the following:
- Interest rates remain exceptionally low, and with the Fed
promising to keep them there until unemployment declines to 6.5%,
we can expect to see low rates for quite awhile. This means that
Thursday, January 31, 2013 by
The next 18 months are important for all OEMs, but perhaps
more so for GM than for any of its rivals. From mid-2012 through
mid-2014, GM will unveil the greatest array of all-new or
re-designed vehicles in recent memory, if not in the company's
history. In 2012, the company brought to market the Spark minicar,
Malibu midsize sedan, Verano compact car, XTS large luxury car and
the ATS compact luxury car. Coming in 2013 are new versions of the
Silverado and Sierra large pickups, the full-size... Re...
Tuesday, January 29, 2013 by
As Toyota announced it has regained the global sales crown
, it makes me think of how the
Japanese OEM has wasted its chances in the world's fourth
largest market. Not everyone is aware that Toyota opened its first
factory outside of Japan within Brazil in 1959, a plant that is
currently used to produce parts. For decades, the Brazilian market
was closed to imports and Toyota only produced a version of
its Land Cruiser. It was a great product for rural areas, but
Toyota was far behind its...Read...