US SALES

New Audi Q2, Updated Q5

Audi, like BMW and Mercedes-Benz, has the segment covered. But Audi still sees room for growth and will introduce an all-new model in 2016, the Q2. In addition, the next generation Audi Q5 will also debut, giving this German luxury brand one of the freshest SUV model lines in the industry.

Audi Q2

Up next: Audi Q2 SUV.

Yesterday, the Audi Group outlined its plans for the coming year with the company’s CEO, Robert Stadler, stating that the automaker will be “continuing with high levels of investment in future technologies to enhance [its] strong position.”

Near-Term Investment Plans

A big chunk of that $3 billion euro investment will come in the form of alternative drive systems, including its first large-series battery-electric vehicle, based on the Audi e-tron Quattro concept. Audi’s already expansive product line will continue to expand and include 60 different vehicles by 2020.

Not much is known about the Audi Q2 although sources such as Autoweek claim that the vehicle is based on the Audi Crosslane Concept, which is based on the Volkswagen Group’s MQB platform. That platform underpins a number of models, including the Volkswagen Golf. The Audi Q2 might be considered a competitor to the Mini Countryman.

Second-Generation Audi Q5

The second-generation Audi Q5 (the brand’s best selling model) will arrive for the 2017 model year, replacing the first-generation SUV after an eight-year model run. A 2013 refresh brought in several changes and added a high-performance SQ5 edition. The Volkswagen’s Group diesel crisis means only gasoline engines are currently available, effectively inhibiting sales.

One issue Audi has been slow to resolve is its USB connectivity or lack thereof. Audi does make it possible to connect your smartphone, but only if your personal product and that cable connect — good luck with that, my iPhone 5 simply has no compatible cable.

Sixth Straight Year of Sales Gains

Despite not offering diesel products over the past several months, Audi has managed to enjoy increased market share. In November, its sales rose by 0.4 percent, but was good enough to record its 59th consecutive month of year-over-year sales increases. Through November, US sales are up 11.7 percent, outpacing the industry. At this pace, Audi should enjoy its sixth straight year of sales growth and top 200,000 units for the first time.

Despite the continued gain, Audi will remain in a distant fourth place in 2015 among luxury makes, finishing behind BMW, Lexus, and Mercedes-Benz, with each marque selling at least 325,000 vehicles per year in the US. New product from Cadillac and Hyundai’s soon to arrive Genesis luxury brand should make things interesting these next few years.

Audi Q2 photo copyright Audi AG.

2015 is on pace to set a new, all-time sales record in the United States. Retail and fleet light-vehicle sales are coming in strong as the year moves to a close.

December is shaping up as yet another strong month for auto sales. Mild weather across much of the country has been helping as well as continued low interest rates on consumer loans despite a recent, but nominal increase in lending rates. If the sales pace continues unabated, 2015 will go down as the best year ever for US sales, breaking the previous record established in 2000.

Those are the findings of a forecast developed jointly by LMC Automotive and J.D. Power. LMC is a noted supplier of automotive trends and intelligence; J.D. Power is a global marketing services company serving multiple fields, including automotive.

Within Reach: 17.5 Million Units

New light-vehicle sales for the month are expected to be the best we have seen for any month since 2005. That should allow U.S. sales to top 17.5 million units, surpassing the previous 17.4 million units reached in 2000. Retail sales (consumer or non-fleet) are expected to total 14.3 million units, representing the fourth best year in history.

Two more factors are also weighing in this year: December has five selling weekends, the first time since 2012, and will also have 28 selling days, the most since 2009. The selling days include the first few days of the new year as 2015 calendar year sales will include sales made through Jan. 4, 2016.

“As 2015 comes to a close, the industry is expected to post its strongest sales month of the year,” said John Humphrey, senior vice president of the global automotive practice at J.D. Power. “With continued record transaction prices, consumers are on pace to spend more than $44 billion on new vehicles in December and $437 billion on new vehicles in 2015, both record levels.” The previous record of $407 billion in annual consumer expenditure was set in 2014.

Humphrey also addressed the recent 0.25 percent increase in the Federal Reserve’s interest rate stating that it “…should have minimal impact on new-vehicle sales.”

Strong Fleet Sales

Fleet sales have been strong this year and have been making a significant contribution to this year’s sales pace. Data reveals that fleet sales were much stronger than expected in November, accounting for 19.5 percent of all light-duty vehicle sales. This month, that contribution is expected to drop to 18.2 percent.

LMC remains bullish on 2016 U.S. auto sales. The company has forecast 17.8 million total light-duty vehicle units, including 14.6 million retail sales. That forecast aligns with what other experts have been saying.

Stated Jeff Schuster, senior vice president of forecasting at LMC Automotive, “We now have greater confidence that record sales in 2015 will lead to yet another volume record in 2016. The year-over-year growth rate is projected to be one-third of the growth experienced in 2015, but total and retail light-vehicle sales are at a 2% increase in 2016, keeping the expansion going.”

Extensive Research Can Save You Money

For consumers shopping for a new vehicle, extensive research, including visits to dealer websites can save them money. Most new vehicles sell for hundreds to thousands of dollars below the window sticker price with greater savings achieved through aggressive negotiation. Arranging your own financing and taking manufacturer and dealer discounts instead can lower your overall costs.