Auto Trends Magazine

Car reviews, industry news, & advice.

CAR SALES

Keogh to Volkswagen: A Brilliant Move

by 1 Comment

Audi’s U.S. chief heads to Volkswagen.

2018 Volkswagen Tiguan
The VW Tiguan is a roomy, compact SUV.

Audi of America’s loss is Volkswagen of America’s gain. This week, Volkswagen announced that Audi’s president will become president and CEO of the Volkswagen Group of America as well as head the Volkswagen brand in North America, beginning November 1, 2018.

Scott Keogh’s appointment is significant as it comes just as the Volkswagen brand seeks greater recognition in the ultra-competitive U.S. market. Notably, the German automaker forfeited its place as America’s favorite import brand of the 1950s and 1960s, allowing upstarts from Japan to take its place. Only recently, Volkswagen has been trying to expand its reach by introducing a pair of updated or new crossovers in the compact Tiguan and the midsize Atlas.

Moving Audi Forward

Keogh joined Audi in 2006 as its chief marketing officer. In 2012, he was appointed president just as Audi was undertaking a stateside expansion that doubled sales from 2010 to 2015. Today, Audi is the fourth best-selling luxury automotive brand in the U.S., trailing only Mercedes-Benz, BMW and Lexus.

Scott Keogh
Scott Keogh, from Audi to Volkswagen Group leadership.
Through September, Audi’s U.S. sales are up 3.92 percent on 164,834 units sold. For the same period, the mainstream Volkswagen brand is enjoying a 5.45-percent increase based on 266,217 units sold.

Both brands are thriving in a marketplace where overall sales are down 4 percent so far this year.

Audi’s ascendancy, of course, cannot be attributed to just one person. That said, Keogh has instilled confidence in the brand and will turn over the reigns to Mark Del Rosso, who is currently serving as the head of Bentley of the Americas.

Del Rosso will assume his new position on December 1. His replacement has not yet been named.

Finding Volkswagen’s Place

Although Keogh joins Volkswagen as is sales improve, the brand is still attempting to find its way in a fast-changing market. The earlier diesel scandal still looms over the company, which has had to pay tens of billions of dollars in fines and compensation costs. Importantly, its once trusty line of diesel engines is now gone. The automaker has since redirected its investment strategy to electric vehicles, but the company is still playing catch up.

Volkswagen’s strongest vehicle lines have long been the Golf and Jetta, along with their many variants. But as consumer interests shift to crossovers, Volkswagen has been making the transition too. Indeed, in recent years we have seen an all-new Tiguan, a compact crossover SUV, updated to take on its current competitors. The previous model was considered too small to matter much, but the new model corrects that deficiency.

2018 Volkswagen Atlas
The VW Atlas is this brand’s largest SUV.

The surprise hit (for some analysts, but not this one) is the Atlas, a seven-passenger, midsize crossover SUV. The new model succeeds in a segment led by the likes of the Ford Explorer, Toyota Highlander, Chevrolet Traverse, Honda Pilot and Nissan Pathfinder.

Though its sales pale in comparison to the best sellers, Volkswagen moves more Atlas models than the Buick Enclave and Mazda CX-9.

Keogh and the Challenges Ahead

Besides electrification, Volkswagen has other challenges to tackle. Likely, we’ll see additional variations on the VW Atlas theme, with five-passenger and hybrid versions likely. A subcompact SUV is very much needed, although we like VW’s strategy whereby the Golf SportWagen and Golf Alltrack supply something different for the market.

Volkswagen must also decide whether the midsize Passat sedan deserves a lease on life. Built at the company’s Chattanooga, Tennessee, manufacturing plant, that space might be better used for a utility vehicle. We think Volkswagen will eventually discontinue the Passat, while introducing the new Arteon sedan. It’ll stay with its core Golf and Jetta cars and lean on an ever-widening range of people movers to increase market share.

If Keogh is able to replicate at least a portion of Audi’s success while overseeing the Volkswagen Group, the automaker may very well find itself taking away customers from its many competitors. That’s something that should send a shudder through corporate boardrooms in Detroit, Tokyo, Seoul and elsewhere.

Volkswagen Arteon
This sleek Arteon may replace both the CC and Passat.

See Also — First Impressions of the Second-Generation Volkswagen Tiguan

Scott Keogh and VW Arteon photos copyright Volkswagen Group of America; all other photos belong to Auto Trends Magazine.

America’s 10 Best-Selling Passenger Vehicles

by 1 Comment

A look at the year-to-date best-sellers through June 2017.

2017 Ford Super Duty
The Ford Super Duty is all-new for 2017 and is a
significant contributor to overall Ford F-Series sales.

The US auto market is slowing down and will most likely finish below 2016’s peak numbers. Still, somewhere between 16.8 and 17 million new passenger vehicles will likely sell as the books close in early January — that’s still an impressive range.

To that end, let’s take a look at America’s current crop of the 10 best-selling cars, trucks, and SUVs, with statistics supplied by GOOD CAR BAD CAR and confirmed by the manufacturers.

1. Ford F Series (429,860) —- Ford’s full-size pickup trucks are right where you expect them to be: on top. Indeed, for four consecutive decades the F-150 and similar models have led the pickup truck sales pack. In many years, this truck has been the best-selling passenger vehicle, bar none. Year-to-date (YTD) sales are up 8.8 percent for a model last redesigned in 2015 (2017 for Super Duty models).

2. Chevrolet Silverado (262,940) —- The Chevy Silverado has long been in second place behind the Ford F-150. However, in some years the Silverado and its GMC Sierra twin outsell Ford, allowing GM to claim the full-size truck crown. This year, sales are down 3.9 percent for a model last overhauled in 2014. A new model is about two years away and it can’t come soon enough as Ram may move ahead of Chevrolet for the first time.

2017 Nissan Rogue Sport
The Nissan Rogue and this Rogue Sport combine to deliver
strong sales for this aspiring model line.

3. Ram Pickup (250,443) -— That the three top selling models in the US market are full-size pickup trucks may surprise some, but given how strong this segment is, the hold these three have isn’t. What is surprising is that Ram sales are up 7 percent, demonstrating that demand for a model redesigned in 2009 and renamed in 2011 continues unabated. A new model is due out in 2019.

4. Nissan Rogue (195,689) -— The biggest gainer this year among the top models is the Nissan Rogue. Now comprised of Rogue and a smaller Rogue Sport model, sales are up a whopping 31.4 percent. Redesigned in 2014, the Nissan Rogue continues to harness insatiable demand for small SUVs and they’re doing it with just one powertrain choice — a 2.5-liter four-cylinder engine comes paired with a continuously variable automatic transmission.

5. Honda CR-V (187,726) —- Honda’s Accord and Civic models have long delivered a 1-2 punch for the automaker, but since CR-V sales began to surge five years ago, it’s now a 1-2-3 hit from Honda. The CR-V is now in the top position, benefiting from a 17.7 percent sales surge YTD. Helping matters is a 2017 overhaul, what makes this model one of the newest in the small SUV segment.

6. Toyota RAV4 (184,766) —- Like Honda, Toyota has also enjoyed a 1-2-3 punch. Like Honda, the compact RAV4 SUV has leaped the Camry and Corolla, and is now Toyota’s top-selling model. Up 11.4 percent YTD, the RAV4 is one of three compact SUVs that may outsell the Camry this year, the perennial best-selling car in America for most of the past two decades.

2018 Toyota RAV4
An all-new Toyota Camry debuts this summer. Will it be enough for this midsize sedan
to reclaim its top perch once again this year?

7. Toyota Camry (176,897) — Whoa! Toyota Camry sales are down 11.4 percent YTD and that doesn’t bode well for America’s top-selling car. Consumer tastes have shifted and cars are getting hammered. But there is hope — an all-new Camry is in production and some type of rebound is certain to follow. Whether that’ll be enough to close the near 20,000-unit gap between the Camry and the top-selling Rogue is not knowable.

8. Toyota Corolla (176,527) —- The Corolla was last overhauled in 2014. But like the Camry, sales are taking a hit, falling 7.7 percent so far this year. Unlike the Camry, a new model isn’t waiting in the wings. At least not this year.

9. Honda Civic (175,763) —- Honda shook the small car market in 2016 when a larger and more dazzling Civic made its debut. But sales are down 7.4 percent YTD as a once forgiving market reveals a harsh reality: even handsome cars can’t keep up with SUVs.

10. Honda Accord (160,091) — The only car to challenge the Toyota Camry in recent years has been the Honda Accord. Like the Camry, sales are down YTD and to the tune of 5.5 percent. Also, like the Camry, a new model arrives this year, bringing with it the possibility of a sales rebound before the year closes out.

2016 Lexus RX
The Lexus RX is the best-selling luxury vehicle, but it doesn’t crack the
top 50 among all models. (Photo copyright Lexus)

Best of the Rest

The current top 10 may change before the year draws to an end. The Ford Escape occupies eleventh place, just 4,000 units behind the Accord. The twelfth through fifteenth positions include the Nissan Altima, Ford Explorer, Chevrolet Equinox, and the Jeep Grand Cherokee. Of these four, the all-new Equinox has the best chance of moving up as the year winds down.

See Also — YTD: The Five Best Selling Midsize Models

Photos copyright Auto Trends Magazine unless otherwise noted. All rights reserved.

Oft-Dismissed Minivans Propel Fiat Chrysler Sales

by 2 Comments

FCA’s sales streak should continue with minivans providing an unlikely contribution.

Car manufacturers track sales carefully, using monthly statistics to measure progress. Any month-over-month change falling outside of expected parameters can result in a change in strategy, including short-term production output, what incentives are offered to consumers, and a host of behind-the-scenes adjustments.

Yes, automakers often place outsized importance on sales changes, especially in the ultra-competitive and highly profitable US consumer market. Manufacturers aren’t always patient when it comes to short-range developments.

2017 Chrysler Pacifica.
2017 Chrysler Pacifica.

Jeep, Ram Propel FCA

Fiat Chrysler is riding a 73-month streak of year-over-year sales increases, the longest in the industry. After sales bottomed out during the last recession and just as Fiat gained control of Chrysler, the automaker has been nearly unstoppable. Credit the Jeep brand and Ram trucks with much of that continued good fortune, but when sales are tallied this month, a trio of oft-dismissed minivans may hold the key to FCA’s continued expansion.

The Chrysler Corporation launched the modern minivan movement in 1983 with the introduction of the Dodge Caravan and Plymouth Voyager. From the onset, Chrysler has dominated the segment, typically accounting for at least 50 percent of the industry’s sales. But minivans have long since peaked as customers flocked to more versatile crossover utility vehicles.

Since last fall, FCA has been in transition concerning its minivan products. The automaker invested upwards of $2.6 billion to develop a new model, the Chrysler Pacifica, while also continuing production of the Dodge Grand Caravan. The Chrysler Town & Country is officially canceled, but before shutting down production FCA pushed out thousands of models, flooding dealer inventories with the same.

Chrysler Pacifica Production Begins

Chrysler Pacifica production began on Feb. 29 and just 487 copies were sold in April. May will be this model’s first full month and sales should prove robust.

At the same time, Chrysler Town & Country and Dodge Grand Caravan sales continue with year-to-date sales up 64 and 104 percent respectively through April 2016.

2017 Chrysler Pacifica Hybrid.
2017 Chrysler Pacifica Hybrid.

Strong Incentive on Three Minivan Models

Propelling sales for both models are strong incentives. As of publication, Town & Country incentives include a $3,500 cash allowance or 1.9 percent financing for up to 84 months plus an additional $500 back. Grand Caravan incentives also come in at $3,500 along with 0 percent financing for 60 months plus a $1,500 cash allowance. Additional incentives should bring in deeper cuts, especially for remaining 2015 inventory.

Lease deals are also available, depending on the trim level selected. Typically, you’ll pay $289 to $299 per month for 36 months, with $2,999 down. However, CarsDirect.com explains that the Dodge lease on Grand Caravan SE isn’t especially attractive, considering its low MSRP.

Despite being a new model, financing and lease deals on the Chrysler Pacifica are in place. Right now, Chrysler is offering a $2,000 cash credit on the Pacifica. Or, buyers can choose 0 percent financing for 36 months and receive $1,500 cash back. If leasing is your preference, a Pacifica LX can be had for $269 per month with $1,999 due at signing.

Well-Stocked Inventory and May 2016 Sales

Last week, Automotive News noted that as of the beginning of May, 22,170 Town & Countrys and 29,247 Grand Caravans were unsold, representing a two-month inventory. Add in thousands of Pacificas and FCA’s dominance in the minivan segment will continue.

The timing of the Pacifica’s release coincides with curtailing Chrysler 200 and Dodge Dart sedan sales. Jeep and Ram sales should continue to bolster the automaker for May; together FCA is looking at a 74th consecutive month of year-over-year sales increases and should do so despite two fewer selling days this year.

See Also — Chrysler Pacifica Minivan Throws Down the Gauntlet

Photos copyright Auto Trends Magazine. All rights reserved.

Buick Sets Sales Record Again

by 3 Comments

For the third consecutive year, Buick sales have set a record. China is the marque’s strongest market, but the brand remains important to GM in North America.

Buick, the brand almost forgotten by American consumers and nearly canceled as part of GM’s 2009 bankruptcy and restructuring, has once again set an all-time sales record.

GM’s premium mainstream marque surpassed last year’s record pace in mid-December and is expected to top 1.2 million global units sold by year’s end. This is the third consecutive year of record sales for a brand that counts on China to supply most of its growth.

Buick Regal

Premium midsize sedan: Buick Regal (Photo: Auto Trends).

China to the Rescue

Indeed, China is the market that saved Buick. In 2009, when GM was weighing its brand options, Buick was vulnerable. Falling US sales, the oldest customer demographic of any brand, and a poor product mix signaled that something had to be done. China’s market saved the day and the brand, enabling GM to cancel or sell Pontiac, Saturn, Hummer, and Saab instead.

With a new lease on life, GM began to remake Buick with Chinese and American consumers in mind. China, however, has driven the brand and accounts for more than 80 percent of its sales. The effort has worked as the Buick Excelle GT, launched early in 2015, is the country’s best-selling model.

Duncan Aldred, vice president of Global Buick noted, “We think 2016 will be another watershed year for the brand with the global launch of the new 2017 LaCrosse, the North American launch of the Envision, the U.S. launch of the Cascada, and the Chinese launch of a new Verano hatchback. Our products and our customer service have never been better.”

Buick Envision

Imported from China: Buick Envision (Photos: GM.com).

Strong Crossover Sales

Buick customers are embracing the line’s crossover products in both markets. In the US, crossovers now account for 40 percent of all new vehicle sales, but represent 60 percent of Buick’s sales stateside.

Just two products — the diminutive Encore and the three-seat midsize Enclave are accounting for crossover sales. With the arrival of the compact Envision SUV next spring, Buick’s hold on the segment should grow only stronger. In China, GM estimates that it will have sold 130,000 Envisions for the year.

Also helping Buick’s cause is the brand’s success in major consumer surveys, including the J.D. Power U.S. Customer Service Index. For the past two years, Buick has garnered the top spot amongst the mass market brands. It is also the only domestic brand ranked in the Top 10 of the 2015 Consumer Reports Reliability in the US.

Buick Avenir

The full-size Buick Avenir concept sedan (Photo: GM.com)

Waiting in the Wings: Buick Avenir

One model not mentioned in Buick’s product mix is the Avenir, a full-size high-end sedan. Presented in concept form at major auto shows early in 2015, the big Buick would slot above the LaCrosse if GM decided to build it.

China is the logical destination for this sedan, but the US market could see the Avenir too. US sales numbers would likely prove modest, but as a halo product it might raise the visibility of the brand.

Before a possible Avenir arrival, Buick will receive the Chinese-built Envision, the German-built Cascada 2+2 convertible, and a refreshed LaCrosse. The LaCrosse redesign incorporates Avenir styling cues, pointing to a new styling direction for Buick regardless of Avenir placement or not.

See Also — Christmas Holiday Traffic to Hit a Record This Year

Fiat Chrysler Eases up on the Alfa Romeo Pedal

by Leave a Comment

Sergio Marchionne rethinks FCA’s Alfa Romeo strategy as China’s new car sales cool.

Alfa Romeo Giulia.

Up next: Alfa Romeo Giulia.

When announced, it was immediately recognized as a tremendously ambitious plan for the Alfa Romeo brand when Fiat Chrysler boss Sergio Marchionne stated last year that global sales for the Italian marque were projected to reach 400,000 units worldwide in 2018. Representing nearly a six-fold sales increase over 2014, that figure was based on a $5.5 billion product investment, yielding as many as eight new models.

Much has changed since Marchionne made his eyebrow-raising prediction. The most significant change has to do with China, a market that has cooled and one FCA had expected would represent a significant part of Alfa’s growth. With China no longer the dependable market for new products it once was, the automaker will concentrate on strengthening the brand’s appeal in two other key markets — the United States and in Europe reports the Detroit Free Press.

New Products for Alfa Romeo

Nevertheless, Alfa Romeo will still get its new products. For instance, the Giulia sedan introduced in Italy last summer should reach our shores sometime next year. Specifically, it is an entry-level model with a high-performance variant, designed to take on the BMW 3 Series and the M3.

Additional products expected include a midsize coupe, at least two sports car, a large sedan, and a pair of utility vehicles. As a result, the release of those models over a three- to four-year period will now take five or six years to complete. Although the sequence of product rollouts and the timetable for those releases will be adjusted, we don’t yet know how it will unfold. An announcement will wait until January, according to Automotive News.

China Slowdown and a Market Peak

Certainly, the change in schedule is a disappointment for Marchionne and a bit of an embarrassment. At the same time, those plans followed earlier projections that were equally ambitious, but were established when key consumer markets were red hot. With China’s ascendancy slowing down and as the US market approaches its peak, an honest review of the Alfa Romeo itinerary is warranted.

The Alfa reworking comes as FCA must also manage expectations for its other brands. For example, the Fiat brand hasn’t met sales forecasts, although the 500X crossover has shown promise. Fiat’s gradual product expansion comes as consumers switch to crossovers, essentially leaving the 500 and 500L behind.

Jeep Tops 1 Million Sales Worldwide

The brightest mark in the FCA brand portfolio is Jeep. The 4×4 brand topped one million global sales last year as the automaker continues to bring Jeep goodness to more markets. Notably, October 2015 US sales for FCA rose 15 percent on the strength of a 33 percent increase for Jeep. Indeed, top to bottom every Jeep model is contributing; the all-new Renegade is now outselling the Compass.

As FCA adjusts its Alfa Romeo plans, it may once again look at the time schedule for its other brands. This past June, Reuters reported that FCA was delaying the release of “…at least a dozen current or new vehicles in North America.” Those models include the high volume Ram 1500 and the Jeep Wrangler as well as new models such as the Jeep Grand Wagoneer.

Most of the delays can be measured by the number of months, although a few models are scheduled to arrive a full year later than originally planned. However, pulling forward with the production schedule means leaning on suppliers to step up their game. Such pressure could backfire for a family of brands that are already at or near the bottom for quality.

Further Reading

Astonishingly Low Price Point for the High-End Cadillac CT6

Fiata: 2017 Fiat 124 Spider Debuts

Big Incentives Await Pickup Truck Shoppers

by 1 Comment

If youve been holding back on buying a new pickup truck consider this: March 2014 may be the start of something big, as in incentives, and on a wide variety of vehicles.

2014 Chevrolet Silverado.
Big March 2014 incentives for the Chevrolet Silverado.

Chevy Truck Month

General Motors has thrown the gauntlet down as it intends to make March a Chevy Truck Month in a bid to reduce bloated inventories. Chevrolets incentives are expected to extend to other Chevrolet products and will most likely cause competitors to respond in kind.

Deep discounting got GM, Ford and Chrysler in trouble before the last recession, leading two of the companies to declare bankruptcy, while the third avoided a similar fate by hocking its assets in advance of the historic downturn. Without a doubt, all three domestic-based automakers are in a much stronger position in 2014 than they were in 2009, but the stepped-up discounting will eat into profits.

Chevrolet Truck Month spans from March 1 through March 31, enabling Silverado truck buyers to snap up a new pickup truck at supplier pricing. That means you can buy a truck for the dealer invoice price plus the destination charge and a $150 program fee reports Automotive News. Essentially, youll see at least $4,000 to $5,000 shaved off of the sticker price, perhaps much more for super duty models.

***Reference — Automotive News: Chevy to Boost March Incentives in Unprecedented Promotional Assault***


Toyota Tundra

The Toyota Tundra seeks its own place in a competitive segment.

Pickup Truck Competition

The Chevrolet incentives come as GM wrestles with a segment that is increasingly tilted toward the Ford F-150. The Ford F-150 outsells the GMC Sierra and Chevrolet Silverado combined, leading GMs big pickups by about 100,000 units annually. Both GM trucks were all new for 2014 while Ford is on its last year with the current generation model. Sales for the GM trucks are not meeting expectations while Ford continues to succeed with its six-year-old model.

GM is also faced with the prospect of falling further behind when the 2015 Ford F-150 is released later this year. The new Ford model embraces lightweighting, utilizing aluminum to drop up to 700 pounds without losing its overall strength. That will give Ford a five-year jump on GM which just this past week made its own commitment to vehicle lightweighting, an effort that wont kick in before 2019 when newly redesigned Silverado and Sierra pickup trucks hit the market.

***Reference — Auto Trends: GM Pickup Truck Lightweighting to Follow Ford’s Lead***

Ford F-150

Vehicle lightweighting could tilt the market further for Ford.

Rethinking Incentives

It isnt just truck sales that have GM and other manufacturers worried: new vehicle sales are not growing nearly as fast this year as they have in the past five years. Indeed, Jan. 2014 sales fell by 3.1 percent over Jan. 2013, with GMs sales dropping by nearly 12 percent. Feb. 2014 sales are expected to come in flat at best as bad weather across much of the eastern half of the US, effectively offsetting the usual Presidents Day incentives.

Manufacturers are also coming to terms with their rosy sales projections, but they aren’t slashing production, at least not yet. Instead, the pricing discipline of the past five years seems threatened a boon for consumers, but a bane for company profits. GM intends to protect its large pickup truck market share even as demand slows and as it readies a pair of midsize trucks to supplement its two truck lines.

Expect that Toyota with its Tundra and Nissan with its Titan will also be discounted. Sales of the Ram 1500 remain strong, but Fiat Chrysler may respond if market share is threatened. Lastly, Ford wont let its sales slip even as a lighter and more efficient F-150 is prepared for the market.

***Reference — Reuters: Global Auto Sales Forecast Rosy, With Reservations, for 2014***

Ford, Toyota Models Pace 2013 US Auto Sales

by 7 Comments

2013 US Auto Sales Recap

Updated Jan. 4, 2014.

2014 Jeep Grand Cherokee.
A big winner for Chrysler was the Jeep Grand Cherokee.

The 2013 US auto sales calendar officially came to end on Jan. 2, marking the fourth consecutive year of sales improvement. For 2013, sales rose by 8 percent as 15.6 million passenger vehicles were sold. That number is within range of the 16.1 million units sold in 2007, the last stable sales year before the Great Recession kicked in.

As expected, the Ford F-150 was the best selling vehicle followed by the Toyota Camry. The F-150 has been the best selling pickup truck for 37 consecutive years and the Toyota Camry has owned the car market every year except for one since the new millennium. Both models have been facing stronger competition in recent years, but each manufacturer has found ways to keep these models atop of their respective categories.

Read on for a closer look at how each manufacturer performed in 2013.

The Detroit Three

2014 BMW 4 Series.
BMW rolls out the 4 Series for 2014.

Ford and Chrysler reported a sales increase for Dec., while GM sales fell by 6.3 percent. Still, GM remains the top selling automaker in the US market, moving 2,786,078 units for 2013, up 7.3 percent for the year. Meanwhile, Ford closed the gap and finished a strong second with 2,485,236 sales, up 10.8 percent over 2012.

John Felice, Ford vice president, U.S. Marketing, Sales and Service, explained Fords success, what helped the automaker achieve its best selling year since 2006. “We saw strong growth across the entire Ford lineup and made significant gains in the import-dominated coastal markets. California in particular has showed much promise for Ford.

Chrysler sales continue to rise and topped 1.8 million units, although barely, beating that threshold by 368 units. Chryslers sales were up 9 percent for the year with Ram and Jeep accounted for that increase. The Chrysler Group also enjoys a 45 month streak of increased month-over-month sales.

The Big Three, Japanese Style

Toyotas Dec. sales were down by 1.7 percent, but the Japanese automaker finished up by 7.4 percent for the year based on 2,236,042 units sold. Although the Ford brand outsold Toyota, Toyota claimed the retail sales mantle as it has a much smaller percentage of fleet vehicle sales than Ford. The Camry is once again the best selling car in America; Toyota also reported big gains for its Avalon sedan, its RAV4 crossover and its Prius family.

Bill Fay, Toyota division group vice president and general manager, offered an especially upbeat outlook for the year ahead. “The auto industry was a consistent bright spot in the economic recovery throughout 2013. We expect the economy will continue to gain strength in 2014, with car sales rising to pre-recession levels.”

2014 Subaru Forester
The Subaru Forester remains a perennial favorite.

Honda sales fell by 2.4 percent in Dec., but rose by 7.4 percent for the year to 1,525,312 units sold. As has been the case, Hondas top three selling models Accord, Civic and CR-V accounted for the bulk of the sales, with more than 1 million units sold combined.

Nissan sales rose at the highest level among the Big Six manufacturers, increasing by 10.5 percent. For the year, Nissan sales rose by 9.4 percent finishing with 1,248,420 units sold. Its best selling vehicle was its Altima line with 320,723 units sold followed by the Rogue, with sales of 162,751 units.

Hyundai and Kia

Hyundai sales increased by 2.5 percent for the year on 720,783 units sold, its best-selling US sales year ever. However, its sales fell short of the 734,000 units it had expected to sell according to Reuters.

Kia reported its second-best US sales year ever, but that follows its best year in 2012. Kia sales fell by 4.2 percent with capacity constraints and stiffer competition weighing in. Sales of its Optima sedan rose by approximately 2 percent based on 155,893 units sold. Sales of its Soul CUV rose as well, moving past the Sorento as the brands second best-selling model.

The European Luxury Makes

BMW led among the luxury makes in 2013, selling 375,382 BMW and Mini models for the year. BMW sold 331,401 vehicles to Minis 43,981 vehicles.

Mercedes-Benz was second among the luxury makes, selling 312,534 units according to USA Today. Dec. sales rose by 17 percent; Mercedes finished up 14 percent for the year.

Audi sold 158,061 vehicles, up 13.5 percent for the year. Audi had its best Dec. ever, selling 17,013 vehicles, the first time that it passed 15,000 units for that month. Its Q5 and Q7 SUVs accounted for much of the brands gain this year with 40,355 Q5s sold for the year.

Mark Del Rosso, Executive Vice President and Chief Operating Officer, Audi of America, thanked American consumers for embracing the brand. “These record results show the payoff from our longstanding strategy to build the Audi brand through exciting products, committed dealer partners and a sustainable business model.”

Subaru, Volkswagen, and Mazda

At the rate that Subaru is growing it may one day threaten the market leaders. The niche Japanese automaker is enjoying record sales and even moved past the Volkswagen brand for 2013. In 2013, Subaru sold 424,683 units (up 26.2 percent) to Volkswagens 407,704 vehicles sold (down 6.9 percent). Subaru sold 123,592 Foresters (up 61.9 percent) and 118,049 Outbacks (up 0.4 percent) for the year.

Mazda sales fell by 15.7 percent for Dec., but that did not stop this automaker from enjoying a 2.5 percent sales increase based on 283,946 units sold. Notably, it wasn’t the Mazda3 that helped move sales in 2013, rather it was increased demand for the Mazda6 and a sharp increase in CX-5 sales (up 83.2 percent) that lifted Mazda.

The Rest

Tesla Motors sold 19,351 Model S vehicles in 2013, the first full year of sales for this sedan. Volvo sales fell to 61,233 units, down 10.1 percent for the year. Mitsubishi sales moved up by 7.7 percent finishing with 62,227 vehicles sold. Jaguar Land Rover sold 66,962 vehicles, up 20.3 percent; Porsche sales rose by 20.8 percent to 42,324 vehicles sold. Ferrari (2,053 units) and Maserati (4,768 units) rounded out the market.

Note: 2013 US auto sales data is based on manufacturer reports, data derived from Motor Intelligence (AutoData Corp.), and the previously mentioned news outlets.

Classic Cars on Consignment With RK Motors Charlotte

by 1 Comment

At the Charlotte Food Lion AutoFair this weekend, you can take in hundreds of classic cars, including many that are available for immediate purchase. Some are sold directly by the owners to private buyers, serious individuals that will slap down cash on the spot, while still others are hawked at auction and sold to the highest bidder. A third group of owners may prefer to sell their cars on consignment and trust that job to a company such as RK Motors Charlotte, the top classic car dealer in the country.

RK Motors Charlotte

RK Motors Charlotte

A visit to RK Motors Charlotte was part of the Charlotte AutoFair’s press pool tour, giving reporters a first-hand look at a facility that holds scores of pristine collectable cars with an emphasis on the top models of the 1950s, 60s and 70s. The RK Motors Charlotte facility is located approximately 20 minutes from the Charlotte Motor Speedway, deep inside of an office park. The company’s nearby performance center recently restored The Last Hemi, but it also sells cars to interested buyers the world over.

Those cars are kept in a secure climate-controlled showroom, part of a sprawling 100,000 square-foot facility that could just as easily be passed off as car museum. Indeed, RK Motors Charlotte has a row of classic vehicles on display that are not for sale including an ornate Duesenberg and a whimsical Crosby Kiddie Fire Department hook and ladder truck. Everything else featured represents cars that are available for sale, vehicles that potential buyers are snapping up at the tune of 40 cars sold per month.

RK Motors Charlotte

Dealer Prep

Before a car is accepted by RK Motors Charlotte, an application is made by an owner and reviewed by the company. If the vehicle is a collectible or some other uncommon model, it may be accepted and always without upfront or monthly fees. Each consignment model is fully detailed, receives a complete write up, and is put through a professional photo and video shoot. Next, it is marketed on the company’s website, through Internet storefronts and in national publications that reach serious car collectors.

The company researches each vehicle, by verifying documentation, casting numbers and date codes to ensure that the buyer has full knowledge of the cars history and the changes made, if any. Cars that are sold are shipped to the buyer and once the deal is done the proceeds of that sale go to the seller minus the companys fee.

RK Motors Charlotte

What’s On Display

With an ever-changing inventory, the vehicle you have your eye on today may be gone tomorrow. Indeed, with nearly 500 sales per year RK Motors Charlotte is usually closing deals daily.

Its top deal to date was for a 1969 Dodge Charger Daytona Hardtop, a Hemi-powered model with an orange exterior and a black interior. That vehicle, with just 3 miles on the odometer, fetched $499,900. Other top sellers have included a 1971 Plymouth Barracuda Hardtop, a 1968 Ford Shelby Mustang GT500KR Convertible and other muscle cars. Its current inventory includes a 1928 Bentley Roadster, several 1957 Chevrolet Bel Air Convertibles, and a handful of late model future classics including a one-of-a-kind Lexus LFA Nurburgring Coupe.

RK Motors Charlotte

Delicious Eye Candy

There may not be enough superlatives available to describe RKs inventory, but awesome, fantastic, prize-winning, top-of-the-line and unsurpassed will do it. An ever-changing inventory keeps potential buyers in the loop, while leaving the rest of us drooling for more. That more can be had in person too as the annual RKM Collector Car Auctions event at Pinehurst, NC, part of the inaugural Pinehurst Concour d’Elegance.

See Also — Classic Cars Judged, Auctioned at the Charlotte AutoFair

Photos copyright Matthew C. Keegan. All rights reserved

Record Global Vehicle Sales Reached in 2012

by Leave a Comment

Global vehicle sales broke a record in 2012 with more than 82 million units sold. That figure represents an increase of nearly 34 percent over 2009s economy-challenged global sales of 61.2 million units according to the International Organization of Motor Vehicle Manufacturers or OICA.

sales increase
Global auto production and sales are on the rise.

Production and Sales

Global vehicle production reached 84.1 million units in 2012 as Asia produced 43.7 million vehicles followed by the Americas at 20 million units. Europe came in third at just under 20 million vehicles; Africa and Australasia contributed the remaining amount.

The difference between production figures and sales numbers can be attributed to excess inventory and unrecorded registrations for government vehicles.

Ups and Downs

The sharpest production increase was recorded by the NAFTA nations: Canada, the United States and Mexico, rising by 17 percent. Japan and South Korea followed with an increase of 11 percent followed by China, India and other Asian countries coming in at 6 percent. African production also rose, increasing by 5 percent.

Production south of Mexico for the rest of the Americas fell by 2 percent last year, breaking a string of increases that began in 2003.

Europe saw some stark differences in 2012 with production in the E27 or mostly western European nations plunging by 8 percent. Turkey and Russia, however, helped pace production in the other European countries, with an increase of 4 percent observed.

Looking Ahead

Automotive production and sales are expected to set another record in 2013 with the OICA forecasting a sales rise of 3 percent based on continued strong demand in China and in the United States. Nearly half of all new vehicle sales take place in Asia with China accounting for about one in four new vehicle sales.

Production and sales are expected to continue to fall in Europe as the continent works through its current economic challenges. Emerging markets beyond China such as Russia, India, Brazil and Africa are expected to also see improved sales in 2013.

About the OICA

The OICAs mission is defend the interests of new car manufacturers, assemblers and importers, particularly as relates to their national federation. The organization brings together the various national associations and studies issues that impact the development and future of the global automotive industry. OICA is the global voice of the auto industry, speaking on its behalf to both governmental and nongovernmental entities.

OICA also puts its imprimatur on select auto shows around the world, coordinating the scheduling of the same. In the US, shows in Detroit and Chicago are OICA sanctioned as are shows in Geneva, Seoul, Buenos Aires, Johannesburg and Tokyo.

See Also — Jan. 2013 Auto Sales Rise Faster Than Expected

Last Minute Year-End Car Buying Tips

by 1 Comment

The calendar is winding down and come late tomorrow night we will be singing “Auld Lang Syne” as 2012 gives way to 2013. If you are shopping for a new car, however, you have through next Wednesday to buy a car and have that car counted toward 2012 sales. So, what is the big deal about that? Well, first you have more time on your hands to look for a better deal. Second, you can take advantage of industry competition and play these companies off of each other — that is if you are not brand loyal.

Basics

The auto industry’s selling periods do not follow the calendar precisely. That is because dealers want to even out the number of selling days each month although this year those days ranged from 24 days in April to 28 days in March.

Dealers are typically closed on Sundays and those days are not counted in the monthly mix, even if a dealer is open on this weekend day. National holidays are not counted as selling days either. Expect that some dealers that normally are closed on Sunday will be open today and those sales will be counted on Monday.

December Sales

2013December’s selling period always extends into January. That’s because the number of national holidays late in the year to early the following year is three and some balance must be struck to gauge sales. December sales began to be counted on the Dec. 1, but with five Sundays in the month plus Christmas followed by New Year’s Day, Jan. 2 is the last day that 2012 sales will be counted.

Just as some dealers will be open today, some will also be open on New Year’s Day — maybe not at 9 a.m. to allow late-night party-goers to regroup, but by 12 noon and perhaps well into the evening. On Wednesday, some dealers will open early and close late, in a bid to get in that final sale before the books are closed on the year.

Year-End Deals

Earlier this year in “Black Friday and New Car Deals,” we examined how consumers could save money on a new car purchase on the day after Thanksgiving. Although we stick with our guns to say that this day still offers some very good bargains, we did notice that some dealers were holding “Black Friday Sales,” making us wonder just how good those sales really were. New car dealer managers are not dumb, just annoying — wink, wink — and can just as easily read as you can, knowing that consumers are looking for bargains.

As the sales year comes to an end, there is a tussle going on between manufacturers for bragging rights. Last year, we saw BMW and Mercedes-Benz battling for the top as tsunami-battered Lexus lost ground. That battle between two premier German brands also became a source of irritation for industry analyst as both companies held back final sales data for a full day to see who won. BMW ended up winning top luxury brand honors as Lexus’ 11-year reign came to an end. For shoppers of both German brands, incentives helped close many sales.

The big battle this year will once again be on the luxury front although you can look at some vehicle segments and guess that the deals will be flowing. Toyota’s Camry looks as if it will retain its position as the best-selling midsize model, indeed, the best-selling passenger vehicle model in the U.S. for another year. Ford has a lock on standard pickup trucks, so look for some movement in other categories including compact SUVs, minivans and perhaps among mini cars.

Ready. Set. Shop.

Are you in the market for a car? Well, contact several local dealers and find out what there hours are from today through Wednesday. If you have some time on your hand, you may find it beneficial to eat your supper on Wed., head to the dealership and prepare to negotiate. You may have the sales staff on pins and needles as they wonder whether you will agree to a deal and how much that deal will cost them.

It will cost them plenty if you deal wisely.

See Also — How to Lease a Demo Car

Photo courtesy of Billy Alexander.