Used Vehicle

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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Small Crossover Sales Explode in February

February U.S. car sales were driven in part by the appeal of mainstream compact crossovers. These vehicles offer the ideal combination of value for the money, good fuel economy, car-like driving characteristics, and SUV-like functionality. Midsize as well as sub-compact crossovers offer some of these advantages but not all of them. Compact crossover sales in February drove industry results at the segment, model and make levels. At the segment level, the February results were extraordinary.... Rea...
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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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Who is Buying the Tesla Model S?

Given all the attention recently focused on Tesla, I thought it would be interesting to see who is buying the Model S. Specifically, what are customers trading in for the Model S, or what other vehicles do Model S buyers have in their garage if they are adding to their fleet? The Model S conquest data, derived from Polk new vehicle registration data, are fascinating. There are two ways of looking at the data. First, the pure conquest data show that the Model S is conquesting owners of... Read...
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The Best-of-the-Best: Automotive Loyalty Award Winners Named

It was my pleasure to be a co-presenter last night, along with Edouard Tavernier, as 33 winners were recognized for automotive loyalty and conquest during the Polk Automotive Loyalty Awards presented by IHS. For those of you unfamiliar with how owner loyalty is measured, it’s determined when a household that owns a new vehicle returns to market and purchases or leases another new vehicle of the same model or make.   This year's Polk Loyalty Awards recognized the best-of-the-best and winners...
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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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Inconsistent Trends: Local Oil Production and EV Sales

Given the complexities of the global and U.S. economies, inevitably there are going to be economic and/or industrial trends that run counter to one another, but it seems to me that we are now experiencing two movements that are particularly inconsistent. Last month, The New York Times  ran a story about the surge in U.S. oil production, saying local oil output will increase by 800,000 barrels a day annually for at least the next three years (Dec. 17 page B1). Imported oil's share of total... Read...
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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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Porsche Macan: “De-Nichification” Continues

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...
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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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Smaller Powertrains Drive Jaguar Forward

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...
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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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Automotive Leasing Moves Beyond the Luxury Market

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...
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Making Global Product Management Easier for the Automotive Aftermarket Industry

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...
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Georgetown University Study: Today’s Millenials Face Multiple Challenges

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:
  1. Millenials are not as interested in cars as their predecessors because, among other things, today's millenials are immersed in the digital age...
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