Friday, January 6, 2012 by
The U.S. new vehicle industry continued to gain momentum as 2011
came to a close, with December deliveries up almost 9% from
December 2010. For the entire year, dealers delivered 12,777,939
new cars and light trucks, up about 10% from 2011. The Polk
Forecasting Practice expects the industry recovery to continue in
2012, with U.S. new vehicle deliveries climbing another 7% to 13.7
million units. Further growth in the industry
will unfortunately be inhibited by the continued weakness
Friday, May 20, 2011 by
For those of you who have been in a crash while driving or being a
passenger in an automobile, you'll identify with me. If you will,
allow me to share my thoughts hailing from a personal auto
wreck experience late last month (April 2011).Driving home from
work, literally 5 minutes from the office, I was rear-ended
while sitting at a stop light by a large SUV who simply forgot to
put on the brakes. Wrong place at the wrong time I guess. My
precious Mazda6 is thrown into the intersection and...Read...
Monday, February 14, 2011 by
The Indian auto market has been one of my favorites to watch during
the past few years even though many times India was overshadowed by
China. But now that China is ending their vehicle scrappage
and incentive programs as well as limiting registrations in
Beijing to try and manage traffic and parking congestion,
India's growth prospects for 2011 are getting more attention.In the
first 11 months of 2010, India sold over 2.1 million passenger
vehicles. A quick view of India's domestic passenger...R...
Wednesday, June 9, 2010 by
For the first five months of this year, the production of cars in
Germany rose by a remarkable 26%. It was just a few months ago that
the German OEMs reported a 10% decline in their production volumes
for 2009 due to strong export reductions (-17%). Only the European
scrappage schemes prevented the automakers from an even sharper
downturn. These trends intrigued me, so I took a closer look at the
significant comeback the German auto industry is making so far in
2010. Given the German OEMs...
Tuesday, June 1, 2010 by
In a recent interview about how scrappage and other vehicle trends
are affecting the independent aftermarket and dealer service
marketing, I was asked "What is the new normal?
" Well, of course
working for Polk, I instantly talked about the new "normal" as
being new vehicle sales in the neighborhood of 11 to 13-million per
year. And how the normal is not the 15 to 16 million units that the
industry thought it was as recently as two years ago.
However, recently at the Global Automotive... Read...
Tuesday, March 30, 2010 by
I think there's some good news based on our annual
of the U.S. vehicle population. "For whom and
why?", you ask? Read on.
- The U.S. light vehicle forecast is expected to be 11.5 million
units for 2010. That's up from 2009's 10.4 million... we'll take
any gains possible. Good news for dealers and automakers.
- The average age of light vehicles on the road has been creeping
up as well. It's just north of 10 years as of September 2009. A
decade ago it was 8.8 years. This means vehicle...
Wednesday, January 13, 2010 by
There has been much recent news and comment with respect to Europe
and the sales environment looking ahead. We know from our own
experience that the introduction of scrappage incentives can have
positive influence whilst in effect, but can also have negative
impacts on future vehicle sales. Further, our own analysis has
identified unforeseen side effects relative to these programmes
with reductions in loyalty rates. Once these programmes ended the
loyalty rates returned to normal –...
Wednesday, November 11, 2009 by
This has been a difficult year with many automotive industry
challenges; consequently, marketing budgets have been cut
significantly. I attended EquipAuto 2009 for the fifth time as a
visitor, and the second time as an exhibitor. I must say that the
show left me with a funny feeling. Despite rumors of cancellation,
the exhibition took place from the 13th to the 18th of October in
the North of Paris. The limited number of exhibitors meant that the
surface was reduced from six to two halls. I...
Wednesday, September 2, 2009 by
Everyone is talking about the market turbulences caused by the
governmental scrappage schemes in different European countries.
Much has been made of the fact that many consumers have
"pre-bought" in 2009, which will have a negative effect on the
sales trend in 2010. But, nobody is really talking about how the
scrappage schemes have changed the market structure. I decided to
look at the effect of the scrappage schemes on diesel-powered cars
to see what the effect on that important vehicle...
Tuesday, August 4, 2009 by
Wow...who could have ever imagined all of the buzz, national and
local advertising, dealer showroom traffic, new car sales and
"trickle down" business the tremendously successfully "Cash for
Clunkers" (or CARS Car Allowance Rebate System) would create? Just
one week after officially starting on July 24th, the program is
already "out of gas," having spent all of the $1Billon of incentive
money behind it. Last week, the House of Representatives quickly
passed a bill providing an additional $2...Rea...
Monday, July 13, 2009 by
I was on a web panel last week that addressed how dealers can
market to customers and leverage the U.S. "Cash for Clunker"
program starting later this month. It's amazing how many questions
surfaced about the implementation of this program and the questions
that remain in the minds of dealers about what to expect once
customers start calling them. The folks at NHTSA (National
Highway Traffic Safety Administration) have no small chore to get
everyone running a dealership up to speed on this...Read...
Monday, July 6, 2009 by
I can almost see the headlines on CNBC or Fox Business noting that
occult store stock has surged, due to the preponderant purchase of
soothsayer assistance items. Magic 8 balls will reach the
spire of their economic demand since being paired with lava lamps,
and businesses will start hiring mystics to work with their
economists and business analysts. Maybe that
is more than a little far-fetched, but to assure
ourselves we never reach the point of crystal ball and lucky
Friday, June 26, 2009 by
This week, President Obama signed the “cash for clunkers” bill
. So let’s talk about the
impact this will have on auto sales this year. In case the basics
of this bill are foreign to you, it's essentially a cash
incentive. The goal is to motivate us to turn in an older vehicle
(that has to then be destroyed) and purchase a new one.
The government will provide a voucher worth up to $4,500 to
help pay for the new set of wheels. And, you have to buy a new
vehicle that’s more fuel efficient than...