US AUTO SALES

Pony Wars: Dodge Challenger Upends Ford Mustang, Chevrolet Camaro

July 12, 2017 by admin Leave a Comment

Dodge’s entry pulls a fast one.

Plum Crazy Dodge Challenger — Dodge Challenge sales are plum crazy!

The Dodge Challenger is No. 1. Or at least it was in June 2017. In the annual battle for pony car supremacy, the Ford Mustang continues to lead the Chevrolet Camaro and Dodge Challenger in US auto sales, but last month the Challenger overtook the two to finish first.

And that’s no small feat for Dodge’s sport coupe. Long a distant third-place finisher, the Challenger is living up to its name and is within striking distance of overtaking the second-place Camaro.

Pony Car Sales Through June 2017

What’s especially significant here is this Challenger is the same generation model released in 2008. Moreover, both of its American competitors are newer, with the most recent Mustang released in 2015 and an all-new Camaro in 2016.

The Dodge Challenger is the lone car bright spot among the major brands in the Fiat Chrysler Automobiles portfolio. Specifically, sales are up 4 percent through the first six months of 2017, while sales of the similar Dodge Charger sedan are down 11 percent.

Mustang sales are plunging, dropping 29.2 percent through June. Comparatively, Camaro sales are nearly flat, slipping just 0.7 percent during that time. There’s an opportunity here for both Mustang foes to pick up sales this year, but we’ll see how Ford chooses to respond before making predictions.

Pony Car Sales Breakdown

June 2017 Pony Car Sales

New and Specialty Models

So, how is Dodge managing to wring out sales from the Challenger, now in its 10th year of production? By releasing a slew of new and speciality models.

In 2008 — its first model year since the 1970-1974 pony car run (let’s never mention the heretical Mitsubishi model of the late 1970s and early 1980s) — Dodge limited production to 6,400 units and nearly all sold in advance of production.

Throughout the intervening years, Dodge expanded the Challenger product line as new engines joined the portfolio. Special package options, including Drag Race, Rallye, and Rallye Redline joined in, giving shoppers even more reason to consider this model.

And Along Comes the SRT Demon

Even as its competitors prepared and released new models, Dodge kept the pedal to the metal with the Challenger. Notably, in 2015 Challenger sales reached a record 66,365 units as a special edition Hellcat variant making 707 horsepower rolled out. The novelty of this before-unheard-of model sparked sales. Also, Dodge’s decision not to limit production fueled interest.

Earlier this year, Dodge threw new attention on the Challenger as it announced an SRT Demon wide-body variant. The specialty model comes packed with a 6.2-liter V8 engine outfitted with a 2.7-liter supercharger with an output of 808 horsepower. Fill this machine with 100 octane racing fuel and 840 horsepower is at the ready.

The interesting thing here is that the first Demons have yet to arrive at Dodge dealers. That’ll happen in the fall and the allotment of 3,000 2018 models should add further impetus to Challenger sales.

Meanwhile, Dodge continues to enjoy outstanding buzz based on its latest super model, no doubt a contributing factor in its sales increase so far this year. Another factor is the Challenger GT, the model’s first-ever all-wheel drive variant.

2018 Dodge Challenger SRT Demon — 2018 Challenger SRT Demon sales begin this fall.

Ford, Chevrolet Respond

Neither Ford nor Chevrolet is likely to allow Dodge to steal their thunder without putting up a fight.

For one thing, the 2018 Mustang gains a Pony Package, offering 19-inch polished wheels, side stripes, and other embellishments. Other yet-to-be-determined changes will have to await the release of the 2018 Mustang product sheet in the coming weeks.

As for the Camaro, a high-performance ZL1 1LE Extreme Track package debuts, outfitted with a racing-based suspension and aero technologies, while delivering a blistering 650 horsepower and 650 pound-feet of torque. Importantly, Chevrolet matches this engine with a six-speed manual gearbox only.

It may be a few more years before we see an all-new Challenger, bringing the current-generation model run to at least 12 years. That’s long for any car, but still a few years short of the 15-year model run (1979-1993) of the third-generation Fox-body Ford Mustang.

Sales statistics verified with each manufacturer.

First Half 2017 US Auto Sales Highlights

July 3, 2017 by admin 1 Comment

Sales are down, but a few manufacturers are enjoying success.

June’s auto sales figures came out today and for people taking an extended four-day weekend to celebrate America’s Independence Day, poolside chatter may have silenced the news.

Nevertheless, some of us are on duty — including yours truly — tracking certain auto trends or should I say sales trends, which we’ll amplify here.

To that end, the following are the chief takeaways for the first six months of the year as well as my guess on what the remainder of the year may look like.

2018 Volkswagen Tiguan — New models such as the 2018 Tiguan should help Volkswagen finish strong this year.

1. The sky isn’t falling, but sales are slipping.

US auto sales are down 2.1 percent year-to-date through June 2017, what represents only a modest decline (8,456,896 v. 8,641,718). Still, experts now see yearly sales falling short of the 17 million mark and that concerns some.

One big concern doesn’t have much to do with sales numbers, but how those numbers come about. Specifically, customers are buying in part because of big, costly, profit-eating incentives. Coinciding with June’s sales release story, Automotive News reported that the average new car incentive offered by manufacturers was $3,550 in June, up slightly over the previous month, but 9.7 percent higher than a year earlier.

Price discipline is something automotive executives talk about and insist that they’ll follow as sales begin to slide. But, if the dam breaks, incentives may push ever higher — that’s terrific news for consumers, but not so much for each automaker’s bottom line.

2017 Lincoln Continental — Continental sales continue to power Lincoln’s renaissance.

2. Is Tesla on the brink?

Tesla Motors has long enjoyed out-sized news coverage despite its relatively minuscule sales. Indeed, for a company that recorded just 22,000 units sold in the second quarter, it is receiving a lot of press. As a point of comparison, Ford sells as many F-150s in about 10 days.

But Tesla is the darling of the stock market, environmentalists, and technology fans, so it merits attention. Moreover, CEO Elon Musk dropped a bomb today when he said that the Tesla 3 is ready for production, with the first model slated to roll off an assembly line this Friday according to Reuters. This means the $35,000 sedan has received federal approval and the first 30 people who ordered one will take delivery by the end of the month.

Importantly, this will be the first time Tesla released a model on time. Also of importance, the all-electric automaker anticipates production ramping up fairly quickly, hitting 20,000 units per month by December. Heck, this long-time doubter may soon become a true believer if Tesla pulls this off.

Tesla Model X sales may quickly fall behind Model 3
sales when the compact sedan debuts this month.

3. What’s up with Jeep?

Fiat Chrysler is not having a banner year. Sales are down 6.7 percent with only Ram (up 7.6 percent) showing an increase year to date. This also means Jeep is down and that brand’s 12.7 percent sales drop accounts for more than half of FCA’s first-half pull back.

That Jeep sales are down is a curiosity. Customers are shifting their purchases to SUVs and that’s all that Jeep makes. A new Compass is out, but sales are down by 49 percent. Patriot sales are also down by 49 percent, but that model is being phased out. Cherokee sales are down 19 percent and that represents yet another drag on the brand.

The good news for Jeep is that an all-new Wrangler is due by year-end. That release alone will begin to turn around sales, but it may not be enough to offset the earlier losses.

Two overarching concerns about the brands are as follows: 1), Jeep pricing is high on some models, such as the Cherokee. Customers are price sensitive and will look elsewhere if they find a better deal. 2), Jeep quality routinely trails nearly everyone. Although the quality wasn’t a factor when sales were robust, it may be a larger factor than before.

2016 Jeep Renegade — Renegade sales aren’t enough to offset Jeep’s decline this year.

4. Nissan may overtake Honda.

In most every other market in the world, Nissan outsells Honda. In the US, Honda almost always beats Nissan and in some years, decidedly so.

Nissan has started the year strong before, only to see Honda slip past them once summer ends and sales pick up steam in the fall. That happened last year, but this year things are looking up for Nissan. And we’re not including Mitsubishi sales in that number even though Nissan now has a controlling interest in the junior automaker.

Last year, Nissan had a 5,700-unit lead at the halfway mark. This year, its edge is almost 20,000 units. Rogue sales alone may give Nissan the victory as sales are up a whopping 31.4 percent to 195,689 units. There’s a very good chance Rogue sales will top 400,000 units, even dethroning the Toyota Camry as America’s best-selling “car” in the process.

2017 Nissan Rogue — This compact Rogue is helping Nissan to a greater share of the sales pie.

Moving Forward

My best guess is that sales will fall this year and could take a nasty tumble if the stock market has a major correction. Automakers say they always anticipate a drop, but until it happens, they plan for ever-increasing sales.

Nissan, Jaguar Land Rover, Subaru, and Volkswagen seem like the best bets to gain share this year, along with specific brands such as Ram, Buick, Lincoln, Audi, and Porsche also benefiting.

See Also — US Auto Trends: First Half 2016

US Auto Sales Set New Record in 2015

January 6, 2016 by admin Leave a Comment

Just six years after US auto sales reached the lowest mark in decades, the market has rebounded to the point where a new sales record was reached. Yesterday, the automakers reported sales for 2015 and when the final tally was accomplished, 17.47 million light-duty passenger vehicles were sold, beating the previous record of 17.40 million units set in 2000.

For the year, industry sales rose by 5.7 percent. At the same time, the market continues to shift away from passenger cars to light trucks, a category composed of pickup trucks and SUVs.

Importantly, every manufacturer posted sales gains for the year, including beleaguered Volkswagen. The Volkswagen Group has seen its sales fall over recent months as the gravity of the company’s diesel scandal weighs in. Still, the German manufacturer managed to post a gain for the year on the strength of its Audi luxury brand. Audi, incidentally, topped 200,000 units sold for the first time.

2015 Audi A3 TDI — Even without diesels, Audi sales rose significantly in 2015.

GM Maintains Its Position

General Motors remains the market leader, although it continues to lose market share. For the year, GM sales rose by 5 percent to 3,082,366 units. Ford also experienced a slight drop in market share as did Toyota and Honda. Sales for Ford and Toyota rose by 5.3 percent, but were up by just 3 percent for Honda.

Among major manufacturers, Fiat Chrysler continued to pace the market, with sales rising by 7.3 percent. Nissan, at 7.1 percent followed.

“FCA US finished 2015 strong with sales up 13 percent and our best December sales since we started business more than 90 years ago,” said Reid Bigland, Head of U.S. Sales. “For the second straight year, the company has topped 2 million in U.S. sales. FCA US sales have now grown annually for the past six years.”

Chevrolet Silverado sales topped 600,000 units in 2015.

The Best Selling Pickup Truck. But….

As expected, the Ford F-Series remained the best selling pickup truck line in the country with 780,354 trucks sold in 2015. However, GM builds more pickup trucks than Ford. Indeed, GM sold 824,683 Chevrolet Silverados and GMC Sierras. Add in the Chevrolet Colorado (84,430 units) and the GMC Canyon (30,077 units) and GM sold 939,190 pickup trucks in 2015 or nearly 160,000 more trucks than Ford.

“The momentum that the Chevrolet Silverado and GMC Sierra have carried all year, hits like the Chevrolet Trax and Colorado, and innovative designs like the GMC Canyon and Buick Encore, have had a tremendous positive impact on our sales results,” said Kurt McNeil, GM’s U.S. vice president of Sales Operations. “In a record year for the industry, GM gained significant retail market share and we grew our Commercial business by 12 percent.”

Toyota Take Two: Camry and Corolla Excel

Among passenger cars, the Toyota Camry remains the top-seller in the US. Notably, the second best selling car in the US is now the Toyota Corolla notes GoodCarBadCar.net.

Toyota sold 429,355 Camrys last year or just 749 more than in 2014. Corolla sales rose by 7 percent as Honda Accord sales fell by 8.4 percent. The models occupying the fourth and fifth position switched as Honda Civic sales climbed by 2.9 percent and as Nissan Altima sales slipped by 0.7 percent.

The two models achieving the best year-over-year gains were the Chrysler 200 (51.6 percent) and the Ford Mustang (48.1 percent). On the flip side Volkswagen Jetta sales plunged by 18.5 percent while Chevrolet Impala sales declined by 16.7 percent.

2014 BMW 535d — BMW won the luxury crown again in 2015.

Luxury Sales Leader

Not surprisingly, BMW repeated as the top luxury brand in the US, finishing with 405,377 units sold. Mercedes-Benz followed with 380,461 sales. Lexus took third place, finishing the year with 344,601 sales.

With last year now in the bag, car manufacturers are keeping their feet to the pedal with analysts expecting sales to top 18 million units in 2016. Higher consumer financing costs and the usual global uncertainty may weigh in.

US Auto Trends for 2015 and Beyond

December 29, 2014 by admin Leave a Comment

A new year brings with it much promise even if a measure of uncertainty remains. This past year was filled with its share of political and social turmoil, but one of the brightest spots was for the US auto industry as it completes its fifth consecutive year of increasing sales. Sales rarely go up year after year for as long as they have. That streak will end soon — if not in 2015, perhaps in 2016.

Sales, though, are only part of the story. Each car manufacturer brings its own energy to the market, therefore certain auto trends that have been gaining steam in the past few years will likely continue, such as consolation and cooperation between competing manufacturers. The following are the top auto trends we see unfolding this year and beyond.

2015 Cadillac ATS

New models, including this ATS Coupe, will help Cadillac rebound in 2015.

Cadillac on the Rebound

Brand sales for Cadillac were down 19 percent through Nov. 2014 in contrast to a segment where double-digit gains were common. Cadillac has a new president, Johan de Nysschen, who has instituted a level of discipline not seen there in decades. Indeed, as sales have fallen, Mr. de Nysschen has rallied the troops and helped usher in new models long planned before his arrival. Instead of panicking because of diminished sales, Cadillac has been holding the price line.

For 2015, new models such as the ATS Coupe, CTS V-Series and Escalade should help the brand begin a steady rebound. This April, in New York, Cadillac will unveil its flagship CT6 sedan, a model with a six-figure price tag. Likely, we should also hear during the year about additional new models planned, including a crossover slotted between the SRX and Escalade as well as an even smaller model to slot below the current ATS and designed to take on the Audi A3. That model would offer standard front-wheel drive and optional all-wheel drive.

Nissan Sentra

Sentra sales have been a bright spot for the Nissan brand.

Nissan Overtakes Honda

At the beginning of 2014, Nissan held a healthy lead over Honda. By late summer that edge had evaporated and globally smaller Honda has once again finished ahead of Nissan as it has done most of the time over the past 40 years. Honda’s trifecta of Accord, Civic and CR-V have been difficult for Nissan to break, but there is one market where Nissan’s growth seems evident: full-size pickup trucks.

Yes, an all-new Nissan Titan will be unveiled at the North American International Auto Show in Detroit in a few weeks, the second generation of a model introduced in 2004. With a diesel option in the mix and additional body choices available, Titan sales should more than make up for an expected decline in EV Leaf demand. The Sentra is another model that has shone brightly for Nissan and together this automaker could place Honda in its rear view mirror, perhaps permanently.

2014 Toyota Avalon Hybrid. — Avalon is just one of many products that bolster Toyota.

Toyota Expands its Marketshare

New and refreshed models have helped Toyota remain one of the top three automakers in the US market. An all-new Tacoma pickup truck will help Toyota fend off GM in the midsize segment, the refreshed Camry will most likely end 2015 on top yet again, while the Corolla, RAV4, Highlander, 4Runner and Avalon should keep the world’s largest automaker strongly positioned for another year.

Toyota also has deep pockets with more than $60 billion in reserves according to CNN. Just as other manufacturers have faced costly recalls in 2014, Toyota has endured its own share of them. Yet, it is the healthiest of all manufacturers and in the best position to gain market share with its vigorous product line. Toyota, once notoriously conservative, may surprise us by giving Scion a much-needed boost, contrary to rumors that it would extinguish the sub-brand.

Jeep Cherokee auto trends

Jeep sales are booming, but CAFE challenges loom for FCA.

Chrysler Shows Signs of Cracking

Fiat Chrysler or FCA has been growing steadily since 2009. Its streak of month-over-month sales gains have passed the 55-month mark and show no signs of stopping. Lower fuel prices mean that even more people will buy profitable Rams and Jeeps, but increasing corporate average fuel economy (CAFE) thresholds will provide a day of reckoning.

Like all other manufacturers, FCA must find a way to deliver a fleet average of 54.5 mpg in just 10 years. Incremental increases must also be met or significant fines will be levied. FCA could restrict bigger vehicle production, but profits would then fall. Because FCA’s cash position is weak, any hiccup in the economy could slam sales and cause a ripple effect throughout the company. If Volkswagen comes courting, would FCA accept a merger proposal? A blockbuster merger of some sort seems possible in the auto industry.

Smaller Manufacturers May Get Hammered

A highly competitive automotive market is great for consumers. Six strong manufacturers and a robust cohort of middle-range companies as well as smaller, niche players give car shoppers numerous choices. That also means the quality bar is set quite high and no manufacturer has room to mess up. Moreover, new technologies continue to revolutionize the industry and are demanded by consumers.

Among the smaller players we have Mazda, Mitsubishi, Jaguar, Volvo and Land Rover. The premium and luxury makes have higher profit margins, while smaller mass-market brands such as Mazda and Mitsubishi have little room to maneuver.

I’ve been saying for the past few years that Mitsubishi’s tenure in the US is about over. Despite a near 30 percent boost in sales in 2014, the company is too small to stay on pace with the changes. Mazda, too, is vulnerable as it no longer has Ford to back it up. Mitsubishi may make it through 2015, but the next economic downturn and the introduction of Chinese-made cars could do it in. Mazda’s best hope for survival is to align itself closely with a big-time player through collaboration or an outright merger.

Possible Auto Trends

There are many other factors that may impact the US auto industry and in ways not foreseen. A botched product introduction, a pricing war, international conflict and weather calamities can shake the market. Changes in the economy would also impact consumer sentiment.

Photos copyright Auto Trends Magazine.

Jeep Paces Strong May 2014 US Auto Sales

June 4, 2014 by admin Leave a Comment

May 2014 sales were the best we’ve seen in years.

2014 Jeep Grand Cherokee Limited — Jeep sales continue to propel Fiat Chrysler.

It was another strong month for US auto sales with Jeep leading the way. In May 2014, Jeep sales rose by 58 percent over May 2013, for astounding year-over-year gains. Moreover, it was the Jeep’s third consecutive record-breaking month for a brand that is also actively going global.

Jeep sales finished at 70,203 units, nearly equaling what the entire Hyundai brand experienced for the month. Hyundai also set an all-time US sales record in May. The Korean automaker’s next-generation Genesis luxury sedan and mainstream Sonata sedan are now in showrooms.

Wrangler once again led sales and was followed by the Grand Cherokee. The difference maker for Jeep was its midsize Cherokee, a new model that came in at 15,992 units sold. The Jeep Cherokee has exceeded sales expectations and delivers a model that is unusually robust off-road for a crossover utility vehicle. It was an Auto Trends featured model in an April 2014 review that demonstrated its mudding characteristics. Jeep’s other two models, the Patriot and Compass, also fared quite well for the month.

2014 Ford Fusion PHEV — Ford Fusion sales hit a record for May 2014.

Ford Edges Forward

Ford sales were nothing to write home about, but they did increase by 3 percent, largely on the strength of two Ford products: Fusion and Escape as well as the Lincoln MKZ. Lincoln dealers moved 3,714 MKZs, a model that is up by 42 percent for the year. And with the MKC crossover arriving in Lincoln showrooms now, Ford’s struggling luxury brand should see sales increase well above its current 20.9 percent annual rate.

Nissan Group sales rose by 18.8 percent for the month, beating the industry average. Notably, the company’s Infiniti division shined as sales rose by 31.4 percent. Infiniti’s increase came on demand for its all-new Q50 sedan. In May, Infiniti moved 2,938 units.

The Nissan brand was led by the Altima as sales for its midsize star broke a record, coming in at 36,053 units for the fastest increase of any model in its segment. Strong sales of its compact Sentra and crossover Rogue also propelled Nissan.

GM’s hold on the top spot of the US market remains strong despite a slough of recalls that have threatened the company’s viability. The automaker reported 284,694 units sold, for its best month since August 2008. It was in Sept. 2008 when Lehman Brothers collapsed and the economy was plunged into the greatest recession of our time.

Chevrolet led all brands, rising by 14.2 percent for the month. Among its significant gainers were its compact Cruze sedan with 32,393 units sold and its Camaro sports model with sales of 10,340 units. Buick also registered double-digit increases; Cadillac and GMC sales came in on the plus side for the month as well.

2014 Toyota Corolla — May 2014 Corolla and Camry sales paced Toyota.

Toyota Camry Sales Surge

Toyota rode a 12.6 sales increase to reach its highest sales in nearly eight years. The automaker reported strong demand for four models including its midsize Camry, the best selling car in America. Camry sales came in at 49,584 units followed by the Corolla at 36,611 units sold. The Prius at 26,793 units and the RAV4 at 23,465 sales followed.

Volkswagen continues to struggle in the US, one of its weaker global markets. While its Audi division continues to succeed, the eponymous Volkswagen brand is struggling. May sales fell by 11.5 percent with only the Jetta SportWagen and Tiguan seeing increases.

Kia, Honda, Subaru Shine

Kia continues to close the gap with its corporate cousin, Hyundai, selling a recored 60,087 units last month. Its Optima, Soul and Sorento models led the pack as has been the case for much of the last year.

American Honda reported a 9 percent sales increase for the month. The company sold just over 39,000 Accords, more than 36,000 Civics and 32,430 CR-Vs. Its Acura division, however gained just 2.2 percent.

Among the three major German makes, BMW outpaced Mercedes-Benz for the month, cutting its rival’s lead for the year. Audi came in with 16,601 units sold, outpacing the rate of its larger German rivals.

Subaru continues to surge, reporting its 30th consecutive month of year-over-year sales growth. Forester sales rose by 40 percent for the month while the WRX/STI saw a 62 percent increase.

2015 Subaru WRX — Subie May 2014 sales broke a record. The WRX did its part.

May 2014 Auto Sales

For the month, US auto sales climbed by 11.4 percent, beating most analyst’s projections. That’s just over 1.6 million units for May 2014, the best sales month (seasonally adjusted) since July 2006.

See Also — Jeep Wrangler: There’s Only One

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