• Sign in to follow this  
    Followers 0

    Automotive Sales To Reach Pre-Crash Levels Next Year


    William Maley

    Staff Writer - CheersandGears.com

    September 17, 2013

    Analysts are predicting that new car sales could reach pre-crash levels possibly next year. Sales in 2014 are projected to rise to 16.1 million vehicles, just shy of the 16.15 million cars sold in 2007.

    Part of this increase is coming from automakers building better products. Chrysler, Ford, and General Motors are real contenders in the compact and midsize marketplace. Also, Korean automakers are giving everyone in the industry a run for their money.

    “It would be one thing if the domestics were going to get better in cars and pull back on trucks, but they aren’t. You see a rising level of competitiveness for the domestics across the whole industry, which is forcing the Asians to be more aggressive just to maintain where they are,” said Tom Libby, an analyst for R.L. Polk & Co.

    Another part of this increase is due to automakers not laying on the incentives or dumping a lot of vehicles into fleets.

    “It’s not just the number 16 that’s amazing. It’s the fact that it’s coming effortlessly. We’re not dumping cars and trucks into the fleets. We’re not using humungous incentives to move them. It’s a reflection of people’s willingness to buy and the strength of the product out there,” said George Magliano, chief economist for IHS Automotive.

    Source: Bloomberg

    William Maley is a staff writer for Cheers & Gears. He can be reached at william.maley@cheersandgears.com or you can follow him on twitter at @realmudmonster.

    0


    Sign in to follow this  
    Followers 0


    User Feedback


    Yet if China implodes into their own Fiscal mess in the next year or so, I wonder how much will really be sold as people seeing money issues in china will hold off on purchases. I know we have needs to replace worn out auto's but are we looking at another bubble pop or just a balance over all and then this will fall back to more reasonable levels?

    0

    Share this comment


    Link to comment
    Share on other sites

    Oh boy. The streets are going to get more and more populated with vehicles if the number of purchases are going up to 16.1 million. The competitors have certainly stepped up their game with the products, leading the way for more buys. I'll be adding to that rising number in a year or two, also.

    0

    Share this comment


    Link to comment
    Share on other sites

    yet the average age of vehicles on the road increases to like 11 years........it seems to me as long as the financing aspect keeps up, we will crack 16 mill and stay above that for awhile.

    What is needed now, to back off by staying even on all the regulations for emissions, mpg, and even safety. What is needed is the ability to start reducing the cost of new vehicles for more and more people.

    0

    Share this comment


    Link to comment
    Share on other sites

    All I can think of is traffic. Well, its no surprise seeing the boom in the Asian economy, a lot more people in Asia are able to afford a car. Aside from quality of automotive products, automotive companies are coming out with more affordable models for the middle class. This looks like a good sign for the "global recession" people were talking about a few years ago.

    0

    Share this comment


    Link to comment
    Share on other sites

    I think it has more to do with the fact that the purchases that were deferred a few years ago can no longer deferred.... that 1998 Accord/Camry/Impala just can't be kept on the road much longer.

    0

    Share this comment


    Link to comment
    Share on other sites

    All I can think of is traffic. Well, its no surprise seeing the boom in the Asian economy, a lot more people in Asia are able to afford a car. Aside from quality of automotive products, automotive companies are coming out with more affordable models for the middle class. This looks like a good sign for the "global recession" people were talking about a few years ago.

    Well it is also that the cheaper cars are no longer total penalty boxes. A Sonic or Elantra isn't something you buy because it's all you can afford, it is something you buy because you like it too now.

    0

    Share this comment


    Link to comment
    Share on other sites


    Your content will need to be approved by a moderator

    Guest
    You are commenting as a guest. If you have an account, please sign in.
    Add a comment...

    ×   You have pasted content with formatting.   Remove formatting

      Only 75 emoticons maximum are allowed.

    ×   Your link has been automatically embedded.   Display as a link instead

    ×   Your previous content has been restored.   Clear editor




  • Popular Stories

  • Today's Birthdays

    1. bcs296
      bcs296
      (29 years old)
    2. jcgable
      jcgable
      (30 years old)
  • Similar Content

    • By William Maley
      Smart already finds itself in a small niche by selling small city cars in North America, but a new letter reveals that the brand will be entering an even smaller one.
      Automotive News obtained a letter from Dietmar Exler, CEO of Mercedes-Benz USA which says the brand will cease sales of gas-powered models by the end of this year, becoming an electric-only brand.
      “Developments within the micro-car segment present some challenges for the current Smart product portfolio. Therefore, with the launch of the fourth-generation Smart ForTwo electric drive this summer, the Smart lineup will consist exclusively of the zero-emissions Smart electric-drive coupe and cabrio in the U.S. and Canada,” Exler said in the letter. 
      Mercedes-Benz spokesman Rob Moran tells Automotive News the plan at the moment is to stop production of the gas model for North American in April and continue sales until all of the models are gone.
      Smart has never done well in the U.S. Their best year was in 2014 with 10,453 models sold. Since then, sales have been steadily declining thanks to low gas prices and consumers going towards crossovers. In 2016, Smart only sold 6,211 models.
      Source: Automotive News (Subscription Required)

      View full article
    • By William Maley
      Smart already finds itself in a small niche by selling small city cars in North America, but a new letter reveals that the brand will be entering an even smaller one.
      Automotive News obtained a letter from Dietmar Exler, CEO of Mercedes-Benz USA which says the brand will cease sales of gas-powered models by the end of this year, becoming an electric-only brand.
      “Developments within the micro-car segment present some challenges for the current Smart product portfolio. Therefore, with the launch of the fourth-generation Smart ForTwo electric drive this summer, the Smart lineup will consist exclusively of the zero-emissions Smart electric-drive coupe and cabrio in the U.S. and Canada,” Exler said in the letter. 
      Mercedes-Benz spokesman Rob Moran tells Automotive News the plan at the moment is to stop production of the gas model for North American in April and continue sales until all of the models are gone.
      Smart has never done well in the U.S. Their best year was in 2014 with 10,453 models sold. Since then, sales have been steadily declining thanks to low gas prices and consumers going towards crossovers. In 2016, Smart only sold 6,211 models.
      Source: Automotive News (Subscription Required)
    • By William Maley
      Hatchbacks have never sold well in the U.S., but that could be changing thanks to new entrants and hotted-up models. According to a forecast done by IHS Markit, sales of hatchbacks are projected climb 19 percent this year. By 2020, the firm projects sales of 567,000 hatchbacks. What has changed?
      Some of this comes down to hatchbacks finding a niche market. Michelle Malcho, spokeswoman for Chevy cars and crossovers tells The Detroit News that active, urban buyers who are wanting a bit more functionality with their vehicle are turning to hatchbacks.
      “I think the U.S. likes the functional thought. The hatch for some people offers that without stepping up to that next level ... It really does fit what you need to do on a daily basis,” said Malcho.
      Helping out are new models and hotted-up versions. The Chevrolet Cruze hatchback made up 10 percent of the model's total sales in January. Over at Ford, the sales of hotted-up versions of the Fiesta and Focus grew 21 percent last year.
      But Stephanie Brinley, senior analyst with IHS Automotive cautions this will only cause a slight spur some growth in the compact class.
      “Hatchback sales have not traditionally been good in the U.S. It’s a relatively small opportunity ... they should help stem the losses in the (small car) segment,” said Brinley.
      “The cars are just so much better than they were, and it’s no longer a penalty (to drive a hatchback). It’s taking a while, but people are starting to understand.”
      Source: The Detroit News

      View full article
    • By William Maley
      Hatchbacks have never sold well in the U.S., but that could be changing thanks to new entrants and hotted-up models. According to a forecast done by IHS Markit, sales of hatchbacks are projected climb 19 percent this year. By 2020, the firm projects sales of 567,000 hatchbacks. What has changed?
      Some of this comes down to hatchbacks finding a niche market. Michelle Malcho, spokeswoman for Chevy cars and crossovers tells The Detroit News that active, urban buyers who are wanting a bit more functionality with their vehicle are turning to hatchbacks.
      “I think the U.S. likes the functional thought. The hatch for some people offers that without stepping up to that next level ... It really does fit what you need to do on a daily basis,” said Malcho.
      Helping out are new models and hotted-up versions. The Chevrolet Cruze hatchback made up 10 percent of the model's total sales in January. Over at Ford, the sales of hotted-up versions of the Fiesta and Focus grew 21 percent last year.
      But Stephanie Brinley, senior analyst with IHS Automotive cautions this will only cause a slight spur some growth in the compact class.
      “Hatchback sales have not traditionally been good in the U.S. It’s a relatively small opportunity ... they should help stem the losses in the (small car) segment,” said Brinley.
      “The cars are just so much better than they were, and it’s no longer a penalty (to drive a hatchback). It’s taking a while, but people are starting to understand.”
      Source: The Detroit News
    • By William Maley
      Author's Note: Welcome the to first 'by the numbers' where we take a deeper look at sales numbers and give some perspective on them. Whether it is considering the weather affecting sales to understanding why midsize sedans are falling down, this is the place to see it a new light.
      January is never a good month when it comes to car sales. Coming from the spending and holidays of December, people are hesitant to spend money on expensive items. This was reflected in January sales with a 1.9 percent drop.
      “Coming off a record December and year in 2016, the industry in January took a bit of a pause with volume down slightly vs. a year ago,” said Bill Fay, group vice president and general manager of the Toyota division in a statement.
      Midsize sedan sales are getting clobbered
      January marked the tenth month of year-over-year decline in midsize sedan sales. As Tim Cain from The Truth About Cars notes , the class saw a 21 percent decline for the month. This is concerning considering passenger car sales only dropped 13 percent. The big losers for the month were the Hyundai Sonata (down 48.1 percent), Chevrolet Malibu (down 43.2 percent), and Toyota Camry (down 24.3 percent). A lot of this can be attributed to the rise of crossovers and SUVs. Data from Wards Auto shows sales of crossovers rose 9.4 percent and sales of SUVs up 12.6 percent for the month.
      Only two nameplates in the midsize sedan class actually saw sales go up - Mazda6 (up 28.3 percent) and Volkswagen Passat (up 64.2 percent). We need to put these numbers into perspective. This time last year, Volkswagen was still embroiled in the diesel emission scandal which caused all of Volkswagen's nameplates to dive downward. As for the Mazda6, that 28.3 percent increase only represents 728 additional models sold (3,300 in Jan 2017 vs, 2,572 in Jan 2016).
      What happened Toyota?
      January wasn't a pleasant month for Toyota and Lexus dealers. The company reported an 11.3 percent decrease in overall sales. Over at Lexus, they saw sales plummet 25.6 percent. What happened? As we mentioned above, the Camry saw a big drop in January sales. Not helping was Toyota's truck lineup posting a 4.1 percent drop and the Sienna seeing sales drop 33.7 percent. Over at Lexus, their entire passenger car line saw a 40.6 percent decline. SUVs and crossovers did slightly better with a 15 percent drop. Lexus general manager Jeff Bracken admits that December's big sales left dealers with a limited stock of their utility vehicles for January, which explains the sales decrease.
      Nissan's Crossover & Incentive Play
      Nissan had a record January with 100,761 vehicles leaving dealers. More than half of those sales came from their truck and utility line - 53,313 models. Out of that, 28,760 units came from Rogue crossover (up 46 percent). But January also saw Nissan increase incentives. According to ALG (via Automotive News (Subscription Required)), Nissan raised incentives 24 percent to an average of $4,335 when compared to last January.
      Other notes from the month:
      Chevrolet Camaro, Dodge Challenger, and Ford Mustang all saw drops this month. Of course, you might be thinking, ITS WINTER! But last year, sales of three were slightly higher - Camaro: 5,551 in 2016 vs. 3,588 this year; Challenger: 5,661 in 2016 vs. 3,393 this year; Mustang: 7,580 in 2016 vs. 5,046 this year. You would think automakers would be increasing the transaction prices on SUVs and trucks to make a little bit more dough. Not so. According to Kelly Blue Book's monthly new-car transaction report, the average transaction price on trucks or SUVs either stayed the course or saw a slight decrease/increase (ranging -0.1 to 0.5 percent when compared to last month). Fiat Chrysler Automobiles sales slide continues with an 11 percent drop in January. How do you reverse this? Sources tell Automotive News that FCA is planning to add an additional 400 dealers in the U.S. That's on top of the almost 2,500 dealers across the country. What could go wrong?
      View full article
  • Recent Status Updates

    • Drew Dowdell

      I have one co-worker who has been a thorn in my side for the past 6 months.... but I have to admit that when I need something done that is in his area of expertise, he goes after it like an angry rabid chihuahua and gets it done.
      · 0 replies
    • Drew Dowdell

      Me: I'll take "Shopping" for $800.
      Alex:"This shopping location is popular on Sundays for groups of gay couples, families with small children, and college kids with parents in tow to gather."
      · 3 replies
    • Drew Dowdell

      @gmc Sierra Denali with manufacturer plates and a never used snow plow. Wonder what's going on here.
      · 2 replies
  • Who's Online (See full list)