The Dodge Caliber hatchback has plenty of room to pack your stuff for a quick getaway, but these days it is going nowhere fast. American car dealers are taking an average of 223 days to clear the Caliber off their lots. That's more than seven months -- a longer sales period than any other major-selling car on the market today.
The Caliber is joined by a host of other American-made vehicles at the top of a list of cars American drivers have little intrest in buying, including: the Dodge Avenger, Pontiac G6 and the Chevrolet Cobalt. In fact, 12 of the 15 slowest selling cars on a list prepared by Edmunds for ABC News are American made. On the foreign side only the Kia Optima, and Spectra and the Hyundai Sonata were the on models on the list of automotive dogs.
Jessica Caldwell, an industry analyst at Edmunds.com, said that part of the problem is a lack of customer demand and part is an overproduction by American automakers.
"It's really a reflection of a misstep of the American automakers," Caldwell said.
General Motors and Chrysler dominated the list. Ford only had one vehicle on it: the venerable Mustang.
Edmunds looked at cars sold by dealerships in May and how long they had been on the lots. Only models with 2,000 or more sales were included in the list to filter out lesser-known and obscure models. A healthy day supply number is about 60 days.
Pontiac's G6, Dodge's Charger, Jeep's Patriot, Chevrolet's Cobalt and Colorado and Ford's Mustang rounded up the top 10 worst performing models in May -- all with day supplies higher than 145 days.
Models that are doing relatively well in the market are those with a good fuel economy, quality reputations and reasonable prices, said Joe Phillippi, of AutoTrends Consulting.
+ 2009 Detroit: Jeep Patriot EV Joins Chrysler ENVI Electric
+ 2009 Dodge Charger SXT: Great Large Sedan
+ New York 2008: Pontiac G8 GXP 2009
+ 2009 Chevrolet Car, Truck, Crossover and SUV: What's New?
+ Hybrid Tax Credit Available for Colorado Looming
+ 2010 Camaro SS vs 2010 Mustang GT vs 2009 Challenger R/T
Dodge Caliber- $16,460 to $24,840, mpg 24/30
Chrysler's Dodge Caliber is particularly inept seller at 223 days. The car features a lot of cargo room, but Edmunds.com called the car "one of the least appealing small hatchbacks or wagons on the market" pointing to the Caliber's meager 172 horsepower engine that delivers "sluggish acceleration" and they noted the "unimpressive build quality." Despite its reasonable price, Car and Driver magazine says the Caliber's "vague steering" and "heavy ride" may make the vehicle seem more like a truck than a compact vehicle.
The Dodge Avenger is far from the meanest selling car on the lot. Its 211 day supply is surpassed only by its relative, the Dodge Caliber. Because of the car's "polarizing styling, budget interior materials and tepid driving dynamics," Edmunds.com says it's no surprise when consumers pass over the Avenger for a different midsized all-wheel drive model.
Pontiac G6- $19,275 - $32,300, mpg 22 / 33
Pontiac G6's 211 day supply is indicative of the gloomy fate for the soon-to-be terminated Pontiac brand. The G6 is available in three body styles as a coupe, a convertible or a sedan, but Edmunds.com says all three are "far from being class leaders." TheCarConnection.com gives the line a 6.8 out of 10 rating, highlighting the vehicle's "iffy safety" and cheap-looking interior materials.
The Kia Optima is the slowest selling car from a foreign automaker on the list with a 166 day supply. Autoguide.com said the model has a nice exterior re-design but said the Optima "rides far too loosely on its suspension" and use "less-than-pleasing material" for its seating.
Dodge Charger- $24,835 - $38,970, mpg 18/26
Despite its aggresive name, the Dodge Charger takes 163 days to creep off the lot. The reincarnated muscle car offers V8 performance and has a good amount of space for families on-the-go. But for drivers looking for a large sedan, Edmunds.com writes that competitors like the Ford Taurus and Honda Accord are "more practical choices."
Jeep Patriot- $17,540 - $23,980, mpg 23/28
The Jeep Patriot, another Chrysler brand, fails to get much of a salute from reviewers. This SUV-like model has good fuel economy and durable off-road features and a 163 day supply. But unless you're expecting to go trail-blazing through the Kalahari, Edmunds.com says that with its cheap interior design and lackluster engine power, the Patriot "should be near the bottom of your list."
The Kia Optima is the slowest selling car from a foreign automaker on the list with a 166 day supply. Autoguide.com said the model has a nice exterior re-design but said the Optima "rides far too loosely on its suspension" and use "less-than-pleasing material" for its seating.
Dodge Charger- $24,835 - $38,970, mpg 18/26
Despite its aggresive name, the Dodge Charger takes 163 days to creep off the lot. The reincarnated muscle car offers V8 performance and has a good amount of space for families on-the-go. But for drivers looking for a large sedan, Edmunds.com writes that competitors like the Ford Taurus and Honda Accord are "more practical choices."
Jeep Patriot- $17,540 - $23,980, mpg 23/28
The Jeep Patriot, another Chrysler brand, fails to get much of a salute from reviewers. This SUV-like model has good fuel economy and durable off-road features and a 163 day supply. But unless you're expecting to go trail-blazing through the Kalahari, Edmunds.com says that with its cheap interior design and lackluster engine power, the Patriot "should be near the bottom of your list."
Showing posts with label Auto Sales. Show all posts
Showing posts with label Auto Sales. Show all posts
Thursday, June 25, 2009
Tuesday, June 23, 2009
Diesel Fuel Prices Drop Boost U.S. Auto Sales
The dramatic decline in diesel fuel prices is driving up U.S. sales of diesel-powered vehicles from European carmakers.
Volkswagen dealers across the country say they can't get enough of the Jetta TDI sedan or station wagon.
"Things have changed, and diesel Jettas are moving. I want more," says Casey Gunther, owner of two VW stores in Fort Lauderdale, Fla.
On Tuesday, June 16, the average nationwide price for a gallon of diesel was $2.60, according to AAA. That compared with $2.67 for regular unleaded gasoline and $2.94 for premium.
A year ago, when diesel hit $4.85 a gallon, European manufacturers wondered how they would sell their new crop of 50-state diesel vehicles, which began arriving last year. VW, Audi, Mercedes-Benz and BMW all sell 50-state diesels in the United States.
Volkswagen sold 3,862 diesel Jettas in May, up from 2,253 in April.
"We would expect equal or higher sales of diesels this month," a VW spokesman says.
About 36 percent of total Jetta sales in May were diesels, compared with an average of 30 percent earlier in the year, the spokesman says.
Volkswagen says demand for the Jetta SportWagen is particularly strong.
Richard Fisher, whose Autobarn dealership group has three VW stores in the Chicago suburbs, says he has "pretty much run out" of TDI SportWagens.
Mercedes-Benz sold 8,242 diesel-powered M-class SUVs from January through May, or 16.5 percent of the total for the vehicle. For all of last year, the diesel version accounted for 13.7 percent of M-class sales.
Through May, diesels accounted for 21.8 percent (5,440) of Mercedes GL sales and 15.1 percent (1,312) of R-class sales, up from 13.7 percent for the GL and 10 percent for the R class in 2008.
Volkswagen dealers across the country say they can't get enough of the Jetta TDI sedan or station wagon.
"Things have changed, and diesel Jettas are moving. I want more," says Casey Gunther, owner of two VW stores in Fort Lauderdale, Fla.
On Tuesday, June 16, the average nationwide price for a gallon of diesel was $2.60, according to AAA. That compared with $2.67 for regular unleaded gasoline and $2.94 for premium.
A year ago, when diesel hit $4.85 a gallon, European manufacturers wondered how they would sell their new crop of 50-state diesel vehicles, which began arriving last year. VW, Audi, Mercedes-Benz and BMW all sell 50-state diesels in the United States.
Volkswagen sold 3,862 diesel Jettas in May, up from 2,253 in April.
"We would expect equal or higher sales of diesels this month," a VW spokesman says.
About 36 percent of total Jetta sales in May were diesels, compared with an average of 30 percent earlier in the year, the spokesman says.
Volkswagen says demand for the Jetta SportWagen is particularly strong.
Richard Fisher, whose Autobarn dealership group has three VW stores in the Chicago suburbs, says he has "pretty much run out" of TDI SportWagens.
Mercedes-Benz sold 8,242 diesel-powered M-class SUVs from January through May, or 16.5 percent of the total for the vehicle. For all of last year, the diesel version accounted for 13.7 percent of M-class sales.
Through May, diesels accounted for 21.8 percent (5,440) of Mercedes GL sales and 15.1 percent (1,312) of R-class sales, up from 13.7 percent for the GL and 10 percent for the R class in 2008.
Tuesday, June 2, 2009
May 2009 Auto Sales: U.S. Falls 33.7% (All Automakers Figures)
Ford Motor Co. and General Motors in May posted their smallest monthly sales declines since last summer, helping the overall U.S. industry improve again while Honda and Toyota dropped more than 40 percent.
Overall sales fell 33.7 percent, the smallest decrease since October's 31.9 percent. The seasonally adjusted annual rate was 9.9 million, the highest of 2009. May's industrywide sales of 926,130 marked the first monthly total this year above 900,000.
"If you're rooting for the Americans, that's what passes as bright news: that they were down less than their competitors," said Efraim Levy, an equity analyst with Standard & Poor's.
Ford Motor's 25.8 percent light-vehicle sales decline was its lowest since July 2008, and GM's 29.0 percent skid reflected its smallest decrease since September. American Honda said its sales plummeted 41.5 percent from May 2008, when the company set a monthly sales record. Toyota Motor Sales fell 40.7 percent, and Nissan North America slid 33.1 percent.
Chrysler LLC's sales tumbled 46.9 percent in May, dragged down by a decline of more than 90 percent in fleet volume stemming from its factory shutdown during bankruptcy. Retail sales fell 30 percent, the automaker said.
Last year's turmoil
The smaller declines at Ford and GM, which filed for Chapter 11 reorganization yesterday, stem in part from comparisons to last year, said Jeff Schuster, executive director of forecasting at the market research firm J.D. Power and Associates.
Average U.S. fuel prices in May 2008 hit $3.97 for a gallon of regular unleaded, according to AAA. The rising prices attracted consumers to Honda, a brand consumers view as fuel-efficient, Schuster said.
Honda's sales rose 15.6 percent in May 2008 from the year-previous period, while GM's fell 27.5 percent, Ford's 15.9 percent, and Chrysler's 25.4 percent. Toyota gained share as its sales fell 4.3 percent.
Last month's sales also indicate that some consumers are showing support for U.S.-based automakers, Schuster said of Ford's and GM's results. President Barack Obama urged the nation to buy American vehicles as he announced Chrysler's bankruptcy on April 30. Schuster also said Ford is benefiting from not seeking government aid.
Elsewhere in the industry, Volkswagen Group slid 12.5 percent. Daimler AG's sales fell 33.4 percent, and the BMW Group dropped 27.6 percent. Subaru slipped 5 percent; Mazda, 40.1 percent; and Hyundai-Kia 18.7 percent.
+ 2009 Auto Sales Monthly Reports Coverage
The Chrysler effect
Some analysts had said Chrysler's retail sales rate would show a boost from clearance sales at dealerships being terminated. On May 14, Chrysler told 789 of its dealerships that they would not have a future with Chrysler Group LLC, the new company set to be steered by Italian automaker Fiat S.p.A. after a scheduled emergence from the automaker's bankruptcy on Friday. Those dealerships have one week left to sell their Chrysler inventory.
Ford said it sold 35,582 crossovers, more than any month since May 2008, and its Lincoln luxury brand posted an increase of 2.4 percent.
Sales of 2,780 Insights drove a 3.5 percent increase in Honda's hybrid sales. The new Insight launched in May.
Ford said it would begin a "Drive the Ford Difference" incentive program today, in which the automaker will cover up to three months of payments on select vehicles, for a total not to exceed $2,100. Ford Credit will also offer 0 percent financing on some vehicles. The program lasts through June 30.
Ford already is anticipating fire-sales at other automakers' dealerships because of liquidations, said Ken Czubay, Ford's vice president of U.S. sales and marketing. In addition to the Chrysler closings, GM has notified 1,324 dealerships it does not plan to renew their franchises beyond October 2010.
"For consumers and for the industry, the next 90 days will be challenging and volatile," Czubay said.
The U.S. sales rate dropped below 11 million units in October, hitting lows not seen in more than a quarter of a century. The rate has hovered between 9 million and 10 million units this year amid an 18-month U.S. recession, the longest since the Great Depression.
Last year's industry sales total was 13.2 million, down from 16.2 million in 2007.
Overall sales fell 33.7 percent, the smallest decrease since October's 31.9 percent. The seasonally adjusted annual rate was 9.9 million, the highest of 2009. May's industrywide sales of 926,130 marked the first monthly total this year above 900,000.
"If you're rooting for the Americans, that's what passes as bright news: that they were down less than their competitors," said Efraim Levy, an equity analyst with Standard & Poor's.
Ford Motor's 25.8 percent light-vehicle sales decline was its lowest since July 2008, and GM's 29.0 percent skid reflected its smallest decrease since September. American Honda said its sales plummeted 41.5 percent from May 2008, when the company set a monthly sales record. Toyota Motor Sales fell 40.7 percent, and Nissan North America slid 33.1 percent.
Chrysler LLC's sales tumbled 46.9 percent in May, dragged down by a decline of more than 90 percent in fleet volume stemming from its factory shutdown during bankruptcy. Retail sales fell 30 percent, the automaker said.
Last year's turmoil
The smaller declines at Ford and GM, which filed for Chapter 11 reorganization yesterday, stem in part from comparisons to last year, said Jeff Schuster, executive director of forecasting at the market research firm J.D. Power and Associates.
Average U.S. fuel prices in May 2008 hit $3.97 for a gallon of regular unleaded, according to AAA. The rising prices attracted consumers to Honda, a brand consumers view as fuel-efficient, Schuster said.
Honda's sales rose 15.6 percent in May 2008 from the year-previous period, while GM's fell 27.5 percent, Ford's 15.9 percent, and Chrysler's 25.4 percent. Toyota gained share as its sales fell 4.3 percent.
Last month's sales also indicate that some consumers are showing support for U.S.-based automakers, Schuster said of Ford's and GM's results. President Barack Obama urged the nation to buy American vehicles as he announced Chrysler's bankruptcy on April 30. Schuster also said Ford is benefiting from not seeking government aid.
Elsewhere in the industry, Volkswagen Group slid 12.5 percent. Daimler AG's sales fell 33.4 percent, and the BMW Group dropped 27.6 percent. Subaru slipped 5 percent; Mazda, 40.1 percent; and Hyundai-Kia 18.7 percent.
+ 2009 Auto Sales Monthly Reports Coverage
The Chrysler effect
Some analysts had said Chrysler's retail sales rate would show a boost from clearance sales at dealerships being terminated. On May 14, Chrysler told 789 of its dealerships that they would not have a future with Chrysler Group LLC, the new company set to be steered by Italian automaker Fiat S.p.A. after a scheduled emergence from the automaker's bankruptcy on Friday. Those dealerships have one week left to sell their Chrysler inventory.
Ford said it sold 35,582 crossovers, more than any month since May 2008, and its Lincoln luxury brand posted an increase of 2.4 percent.
Sales of 2,780 Insights drove a 3.5 percent increase in Honda's hybrid sales. The new Insight launched in May.
Ford said it would begin a "Drive the Ford Difference" incentive program today, in which the automaker will cover up to three months of payments on select vehicles, for a total not to exceed $2,100. Ford Credit will also offer 0 percent financing on some vehicles. The program lasts through June 30.
Ford already is anticipating fire-sales at other automakers' dealerships because of liquidations, said Ken Czubay, Ford's vice president of U.S. sales and marketing. In addition to the Chrysler closings, GM has notified 1,324 dealerships it does not plan to renew their franchises beyond October 2010.
"For consumers and for the industry, the next 90 days will be challenging and volatile," Czubay said.
The U.S. sales rate dropped below 11 million units in October, hitting lows not seen in more than a quarter of a century. The rate has hovered between 9 million and 10 million units this year amid an 18-month U.S. recession, the longest since the Great Depression.
Last year's industry sales total was 13.2 million, down from 16.2 million in 2007.
Cash For Clunker Incentives Plan to Vote Today by Senate
The U.S. Senate may vote today on competing plans to boost U.S. auto sales by paying owners to crush old, inefficient models.
The plan spearheaded by Sen. Debbie Stabenow, D-Mich., has the backing of automakers, dealers and President Barack Obama. But a competing proposal from Sen. Dianne Feinstein, D-Calif., would set tougher mileage standards after complaints from environmental groups that the consensus plan won't save enough fuel.
Following another month of weak sales, and forecasts for sales of only 10 million new cars and trucks this year, automakers and their allies on Capitol Hill have pressed Congress to act quickly.
"It's critical that we pass this," Stabenow said Tuesday. "This is an opportunity to immediately stimulate auto sales across the country."
Under the Stabenow plan, owners of cars and trucks that get less than 18 m.p.g. could get a voucher of $3,500 to $4,500 for a new vehicle, depending on the mileage of the new model. The voucher would replace any trade-in value, since the old model would be scrapped.
Backers say the compromise would cost about $4 billion -- paid for with money from the economic stimulus plan passed earlier this year -- and could boost sales by 1.3 million vehicles over a year, according to industry officials.
But critics note that the plan favors owners of trucks over cars: even 15 years ago, only five models of midsize sedans managed just 18 m.p.g.
The Feinstein plan would add a $2,500 voucher, require old models to get less than 17 m.p.g., and require larger mileage improvements for the larger voucher. It would also offer a $1,000 voucher for buying efficient used models.
+ "Cash for Clunkers' Incentives Program to Buy New Car
+ Cash-For-Clunkers: Pickup Trucks Buyer to Be Winners
The U.S. Chamber of Commerce backed the Stabenow bill in a letter to Congress on Tuesday, saying it would offer the best mix of economic and environmental benefits.
Stabenow offered the plan as an amendment to a Senate bill setting new controls on tobacco products. It wasn't clear Tuesday evening when Feinstein might offer her plan.
The plan spearheaded by Sen. Debbie Stabenow, D-Mich., has the backing of automakers, dealers and President Barack Obama. But a competing proposal from Sen. Dianne Feinstein, D-Calif., would set tougher mileage standards after complaints from environmental groups that the consensus plan won't save enough fuel.
Following another month of weak sales, and forecasts for sales of only 10 million new cars and trucks this year, automakers and their allies on Capitol Hill have pressed Congress to act quickly.
"It's critical that we pass this," Stabenow said Tuesday. "This is an opportunity to immediately stimulate auto sales across the country."
Under the Stabenow plan, owners of cars and trucks that get less than 18 m.p.g. could get a voucher of $3,500 to $4,500 for a new vehicle, depending on the mileage of the new model. The voucher would replace any trade-in value, since the old model would be scrapped.
Backers say the compromise would cost about $4 billion -- paid for with money from the economic stimulus plan passed earlier this year -- and could boost sales by 1.3 million vehicles over a year, according to industry officials.
But critics note that the plan favors owners of trucks over cars: even 15 years ago, only five models of midsize sedans managed just 18 m.p.g.
The Feinstein plan would add a $2,500 voucher, require old models to get less than 17 m.p.g., and require larger mileage improvements for the larger voucher. It would also offer a $1,000 voucher for buying efficient used models.
+ "Cash for Clunkers' Incentives Program to Buy New Car
+ Cash-For-Clunkers: Pickup Trucks Buyer to Be Winners
The U.S. Chamber of Commerce backed the Stabenow bill in a letter to Congress on Tuesday, saying it would offer the best mix of economic and environmental benefits.
Stabenow offered the plan as an amendment to a Senate bill setting new controls on tobacco products. It wasn't clear Tuesday evening when Feinstein might offer her plan.
May 2009 Auto Sales: Mercedes-Benz Down 33% in U.S.
- Mercedes-Benz Cars Division Sold a Total of 16,303 Units in the U.S.
- Mercedes-Benz USA Records May Sales of 15,134
- smart USA Records 1,169 Sales in May
Daimler AG today reported sales for the Mercedes-Benz Cars division (Mercedes-Benz and smart combined) of 16,303 units in the U.S. for May 2009. All sales figures in this release are on an unadjusted basis unless otherwise noted.
Mercedes-Benz USA (MBUSA) today reported May sales of 15,134 vehicles, a decline of 30.5 percent compared to May 2008. The volume leaders for the month were the C, E, and M-Class with sales of 4,842, 2,275, and 2,021 respectively. On a year-to-date basis, the company sold 69,933 new vehicles, a decrease of 29.9 percent over the comparable period last year.
smart USA recorded 1,169 sales in May 2009. Year to date sales now total 7,451 units. Since its introduction in the United States, there are over 32,000 smart fortwos traveling the highways throughout America. The smart fortwo offers the right balance of power, outstanding fuel efficiency, innovative safety features, environmental friendliness and excellent value. There are currently 77 smart centers in 36 states. Recently smart USA opened smart centers in New Orleans, Louisiana and Nashville, Tennessee.
Detailed vehicle sales information for MBUSA will be announced later today in a separate press release issued by Mercedes-Benz USA.
Mercedes-Benz Cars Division in the U.S. Sales Summary Through May 2009
-----------------------------------------------------------------------------
Month Sales % Sales CYTD %
Curr Yr Pr Yr Change Curr Yr Pr Yr Change
Mercedes-Benz
USA 15,134 21,785 -30.5% 69,933 99,703 -29.9%
smart USA 1,169 2,695 -56.6% 7,451 8,854* -15.8%*
Mercedes-Benz
USA / smart
USA combined 16,303 24,480 -33.4% 77,384 108,557* -28.7%*
*smart sales in the U.S. started in mid January 2008
- Mercedes-Benz USA Records May Sales of 15,134
- smart USA Records 1,169 Sales in May
Daimler AG today reported sales for the Mercedes-Benz Cars division (Mercedes-Benz and smart combined) of 16,303 units in the U.S. for May 2009. All sales figures in this release are on an unadjusted basis unless otherwise noted.
Mercedes-Benz USA (MBUSA) today reported May sales of 15,134 vehicles, a decline of 30.5 percent compared to May 2008. The volume leaders for the month were the C, E, and M-Class with sales of 4,842, 2,275, and 2,021 respectively. On a year-to-date basis, the company sold 69,933 new vehicles, a decrease of 29.9 percent over the comparable period last year.
smart USA recorded 1,169 sales in May 2009. Year to date sales now total 7,451 units. Since its introduction in the United States, there are over 32,000 smart fortwos traveling the highways throughout America. The smart fortwo offers the right balance of power, outstanding fuel efficiency, innovative safety features, environmental friendliness and excellent value. There are currently 77 smart centers in 36 states. Recently smart USA opened smart centers in New Orleans, Louisiana and Nashville, Tennessee.
Detailed vehicle sales information for MBUSA will be announced later today in a separate press release issued by Mercedes-Benz USA.
Mercedes-Benz Cars Division in the U.S. Sales Summary Through May 2009
-----------------------------------------------------------------------------
Month Sales % Sales CYTD %
Curr Yr Pr Yr Change Curr Yr Pr Yr Change
Mercedes-Benz
USA 15,134 21,785 -30.5% 69,933 99,703 -29.9%
smart USA 1,169 2,695 -56.6% 7,451 8,854* -15.8%*
Mercedes-Benz
USA / smart
USA combined 16,303 24,480 -33.4% 77,384 108,557* -28.7%*
*smart sales in the U.S. started in mid January 2008
Monday, June 1, 2009
May 2009 Auto Sales: Japan Cars, Trucks and Buses Sales Down 19%
2009 May auto sales figures: New vehicle sales in Japan fell 19.4 percent in May from a year ago, sliding for a 10th straight month, an industry group said, but the decline eased from recent months.
New sales of cars, trucks and buses dropped 19.4 percent from a year earlier to 178,503 units, according to the Japan Automobile Dealers' Association.
Sales fell almost 29 percent in April and 31.5 percent in March.
Among Japan's top three automakers, Toyota Motor Corp. led the decline. The company sold 80,503 vehicles in May, down about 24 percent. Nissan Motor Co.'s new vehicle sales fell 9.1 percent, while those at Honda Motor Co. rose 4.5 percent.
The figures are compiled using the government's new vehicle registrations, and do not include mini-cars or mini-trucks.
Data last week showed that fallout from the recession is expanding to workers and their families amid deteriorating job and wage conditions. The jobless rate rose to six-year high of 5 percent in April, while household spending fell 1.3 percent, the government said Friday.
As part of economic stimulus measures, the government has introduced schemes to boost personal consumption, which accounts for more than half of the world's second-biggest economy.
It began offering tax exemptions for cars earlier this year to encourage sales. Parliament gave consumers added incentive Friday when it approved a cash-back rebate for trading in cars 13 years or older for greener cars.
In a rare bight spot, orders in Japan for Toyota's new Prius hybrid have topped 110,000, a major dealership chain said. The third-generation Prius officially rolled out in Japan just two weeks ago. But dealers are already flooded with orders, including some placed weeks in advance, according to the dealership.
New sales of cars, trucks and buses dropped 19.4 percent from a year earlier to 178,503 units, according to the Japan Automobile Dealers' Association.
Sales fell almost 29 percent in April and 31.5 percent in March.
Among Japan's top three automakers, Toyota Motor Corp. led the decline. The company sold 80,503 vehicles in May, down about 24 percent. Nissan Motor Co.'s new vehicle sales fell 9.1 percent, while those at Honda Motor Co. rose 4.5 percent.
The figures are compiled using the government's new vehicle registrations, and do not include mini-cars or mini-trucks.
Data last week showed that fallout from the recession is expanding to workers and their families amid deteriorating job and wage conditions. The jobless rate rose to six-year high of 5 percent in April, while household spending fell 1.3 percent, the government said Friday.
As part of economic stimulus measures, the government has introduced schemes to boost personal consumption, which accounts for more than half of the world's second-biggest economy.
It began offering tax exemptions for cars earlier this year to encourage sales. Parliament gave consumers added incentive Friday when it approved a cash-back rebate for trading in cars 13 years or older for greener cars.
In a rare bight spot, orders in Japan for Toyota's new Prius hybrid have topped 110,000, a major dealership chain said. The third-generation Prius officially rolled out in Japan just two weeks ago. But dealers are already flooded with orders, including some placed weeks in advance, according to the dealership.
2009 May Auto Sales: Toyota Down 24%, Leads Japan's Drop
Toyota Motor Corp., Japan’s largest automaker, led a 19 percent drop in the country’s vehicle sales last month, as falling wages and rising unemployment discouraged customers from visiting showrooms.
Sales of cars, trucks and buses, excluding minicars, fell to 178,503 vehicles, the Japan Automobile Dealers Association said in a statement today. Toyota sold 80,503 units excluding Lexus brand cars, down 24 percent. Honda Motor Co., the country’s second-largest automaker, posted a 4.5 percent gain, and No. 3 Nissan Motor Co. sold 9.1 percent fewer units.
Japan, the world’s second-largest economy, is struggling to spur spending among consumers as wages fell for an 11th straight month and the jobless rate reached a five-year high in April. Still, the pace of decline in auto sales slowed last month from 32 percent in March and 29 percent in April, as government tax incentives helped boost sales of Toyota Prius and Honda Insight gasoline-electric hybrid cars.
“More and more people are opting for hybrids to save money given the current economic condition,” said Ichiro Takamatsu, chief investment officer at Alphex Investments Co. in Tokyo. Rising oil prices this year will “further spur demand for cars with better fuel economy.”
Toyota has received more than 80,000 orders for the revamped Prius, it said on May 8. Honda’s Insight has attracted 35,000 orders, it said on May 21. Nissan said on May 19 that orders for 14 fuel-efficient models such as the Cube and Tiida rose about 30 percent in last month.
Unemployment
Sales of minicars, powered by engines no larger than 0.66- liters, declined 18 percent to 113,540 units last month, the Japan Mini Vehicles Association said in a separate statement. Daihatsu Motor Co., Japan’s largest minicar maker, sold 41,168 units in May, down 16 percent. Suzuki Motor Corp.’s sales fell 12 percent to 39,649 units.
Combined with minicars, industrywide sales dropped for the 10th straight month, falling 19 percent to 292,043 vehicles. Minicars represent about 40 percent of the Japanese market.
Japan’s unemployment climbed to 5 percent in April, the government said last week. Household spending fell 1.3 percent in April, the 14th straight decline. Outlays by consumers make up more than half of the economy.
Prime Minister Taro Aso plans to give subsidies for purchases of new fuel-efficient cars to spur sales as part of his 15.4 trillion yen ($162 billion) economic stimulus program. The government expects the subsidies to boost sales by 690,000 vehicles this fiscal year. Consumers who bought cars after April 10 when Aso announced the program are eligible.
The dealers association and the automakers’ group will start advertisements about the subsidies to consumers this month, Michiro Saito, a spokesman for the auto dealer’s group, told reporters in Tokyo today.
“Orders for fuel-efficient cars are increasing on the incentive program,” Saito said.
Japan’s vehicle slump mirrors that of the U.S., the world’s largest auto market, where sales have fallen 37 percent this year through April bringing General Motors Corp. to the brink of bankruptcy.
Sales of cars, trucks and buses, excluding minicars, fell to 178,503 vehicles, the Japan Automobile Dealers Association said in a statement today. Toyota sold 80,503 units excluding Lexus brand cars, down 24 percent. Honda Motor Co., the country’s second-largest automaker, posted a 4.5 percent gain, and No. 3 Nissan Motor Co. sold 9.1 percent fewer units.
Japan, the world’s second-largest economy, is struggling to spur spending among consumers as wages fell for an 11th straight month and the jobless rate reached a five-year high in April. Still, the pace of decline in auto sales slowed last month from 32 percent in March and 29 percent in April, as government tax incentives helped boost sales of Toyota Prius and Honda Insight gasoline-electric hybrid cars.
“More and more people are opting for hybrids to save money given the current economic condition,” said Ichiro Takamatsu, chief investment officer at Alphex Investments Co. in Tokyo. Rising oil prices this year will “further spur demand for cars with better fuel economy.”
Toyota has received more than 80,000 orders for the revamped Prius, it said on May 8. Honda’s Insight has attracted 35,000 orders, it said on May 21. Nissan said on May 19 that orders for 14 fuel-efficient models such as the Cube and Tiida rose about 30 percent in last month.
Unemployment
Sales of minicars, powered by engines no larger than 0.66- liters, declined 18 percent to 113,540 units last month, the Japan Mini Vehicles Association said in a separate statement. Daihatsu Motor Co., Japan’s largest minicar maker, sold 41,168 units in May, down 16 percent. Suzuki Motor Corp.’s sales fell 12 percent to 39,649 units.
Combined with minicars, industrywide sales dropped for the 10th straight month, falling 19 percent to 292,043 vehicles. Minicars represent about 40 percent of the Japanese market.
Japan’s unemployment climbed to 5 percent in April, the government said last week. Household spending fell 1.3 percent in April, the 14th straight decline. Outlays by consumers make up more than half of the economy.
Prime Minister Taro Aso plans to give subsidies for purchases of new fuel-efficient cars to spur sales as part of his 15.4 trillion yen ($162 billion) economic stimulus program. The government expects the subsidies to boost sales by 690,000 vehicles this fiscal year. Consumers who bought cars after April 10 when Aso announced the program are eligible.
The dealers association and the automakers’ group will start advertisements about the subsidies to consumers this month, Michiro Saito, a spokesman for the auto dealer’s group, told reporters in Tokyo today.
“Orders for fuel-efficient cars are increasing on the incentive program,” Saito said.
Japan’s vehicle slump mirrors that of the U.S., the world’s largest auto market, where sales have fallen 37 percent this year through April bringing General Motors Corp. to the brink of bankruptcy.
Good Time to Buy a Car, as declining sales, production cutback, incentives.
Given the turmoil in the automotive industry, you wouldn’t think it’s a favorable time to buy a car, but industry experts say declining sales, production cutbacks and manufacturer incentives might make it a good time after all.
“The next 45 to 60 days are the big closeout days, not in the fall,” said Alan Rice, executive manager of Colonial Cadillac in Norfolk, Va. “That’s when you’re going to have your best selection as well.”
The cause: the historic slump in auto sales in the face of the economic recession, which has slowed the production of new vehicles. At the current sales rate, U.S. sales would come in at just more than 9 million for 2009, according to Automotive News. Compare that to 2007, when Americans bought 16.2 million new cars and trucks.
The falloff in demand has led automakers from Asia to Europe to slash output. And with cars and trucks piling up on dealer lots, manufacturers are boosting their incentives.
“Manufacturers have put a lot of cash on the hood to move the metal,” said Frederick Miller, president and chief operating officer of Hall Automotive. “New-car incentives are high, factories are closed and supplies of some models are dwindling.”
Although buyers may have their choice of most models now that might not be the case by the fall, the time of year many look for bargains. And with factories closed, Miller said that automakers might not be able to replenish the pipeline quickly.
“By July, we’re going to have a small amount of vehicles,” he said. “It’s going to be picked over by the end of summer.”
Everyone agrees this scenario could change if Congress passes a “Cash for Clunkers” bill, which would offer car buyers additional cash incentives to buy a new car. While that would stimulate demand for new cars in the short term, it could exacerbate shortages later this year. Even so, there’s a wild card: Chrysler LLC.
With Chrysler closing a quarter of its dealers nationwide, the market could become flooded with new Chrysler, Dodge and Jeep cars and trucks selling below cost as shuttered dealers try to dump their new vehicles at auction to raise cash.
“There’s going to be a sell-off,” said Miller, who runs a Chrysler, Dodge and Jeep franchise in Virginia Beach. “That could be the Wild West show.”
While surviving Chrysler dealers are trying to prevent that from happening, there are no guarantees. And with the looming closure of some General Motors franchises, shortages may not materialize.
“The variable will be dealer attrition,” Rice said. “If dealers go in masses, the inventory has to go somewhere.”
But while new-car prices are sliding, used-car prices are doing just the opposite.
“Used-car prices have been creeping up, and you will see a shrinking in the quality of the used-car market,” said John Linkov, automotive editor for Consumer Reports. “And because leasing isn’t as popular and because manufacturers like Chrysler aren’t leasing, there will be fewer 3-year-old cars with 36,000 miles available.”
Colonial’s Rice said that dealers are stocking up on used cars knowing that manufacturers are slicing new-car production. As new-car inventories thin out, dealers rely on used-car sales to tide them over until new models arrive. All of that comes as consumers are increasingly choosing used vehicles as a less-expensive alternative to new ones.
As an example, Rice said a 2- or 3-year-old Cadillac Escalade with a six-year, 100,000-mile warranty may cost $45,000, while a new one would cost at least 50 percent more. That price difference, along with the drop in gasoline prices over the past year, has increased demand for used SUVs.
Rice has seen it firsthand. His store’s new-car sales are down 40 percent this year, while used-car sales are up 56 percent.
“The used-car business is very strong,” he said. At a two-day tent sale held recently by Hall Automotive, the company sold 100 used trucks and SUVs, five times the normal sales rate.
“Used trucks and SUVs are very hot right now,” Miller said, adding that foreign cars are also bringing big money. “I’ve seen 1-year-old Honda Accords go at auction for what they’re going for new. That’s pretty common right now.”
Such anomalies in the marketplace make it essential that prospective buyers research their purchase decision before entering a showroom. While buyers may be tempted to wait to see if prices go lower, dealers think otherwise.
“There’s not going to be a lot of leftover inventory come fall,” Rice said. “Manufacturers will put the money on the hood that they need to move it, but they won’t have to put big money down.” Miller agreed.
“The next 45 to 60 days are the big closeout days, not in the fall,” said Alan Rice, executive manager of Colonial Cadillac in Norfolk, Va. “That’s when you’re going to have your best selection as well.”
The cause: the historic slump in auto sales in the face of the economic recession, which has slowed the production of new vehicles. At the current sales rate, U.S. sales would come in at just more than 9 million for 2009, according to Automotive News. Compare that to 2007, when Americans bought 16.2 million new cars and trucks.
The falloff in demand has led automakers from Asia to Europe to slash output. And with cars and trucks piling up on dealer lots, manufacturers are boosting their incentives.
“Manufacturers have put a lot of cash on the hood to move the metal,” said Frederick Miller, president and chief operating officer of Hall Automotive. “New-car incentives are high, factories are closed and supplies of some models are dwindling.”
Although buyers may have their choice of most models now that might not be the case by the fall, the time of year many look for bargains. And with factories closed, Miller said that automakers might not be able to replenish the pipeline quickly.
“By July, we’re going to have a small amount of vehicles,” he said. “It’s going to be picked over by the end of summer.”
Everyone agrees this scenario could change if Congress passes a “Cash for Clunkers” bill, which would offer car buyers additional cash incentives to buy a new car. While that would stimulate demand for new cars in the short term, it could exacerbate shortages later this year. Even so, there’s a wild card: Chrysler LLC.
With Chrysler closing a quarter of its dealers nationwide, the market could become flooded with new Chrysler, Dodge and Jeep cars and trucks selling below cost as shuttered dealers try to dump their new vehicles at auction to raise cash.
“There’s going to be a sell-off,” said Miller, who runs a Chrysler, Dodge and Jeep franchise in Virginia Beach. “That could be the Wild West show.”
While surviving Chrysler dealers are trying to prevent that from happening, there are no guarantees. And with the looming closure of some General Motors franchises, shortages may not materialize.
“The variable will be dealer attrition,” Rice said. “If dealers go in masses, the inventory has to go somewhere.”
But while new-car prices are sliding, used-car prices are doing just the opposite.
“Used-car prices have been creeping up, and you will see a shrinking in the quality of the used-car market,” said John Linkov, automotive editor for Consumer Reports. “And because leasing isn’t as popular and because manufacturers like Chrysler aren’t leasing, there will be fewer 3-year-old cars with 36,000 miles available.”
Colonial’s Rice said that dealers are stocking up on used cars knowing that manufacturers are slicing new-car production. As new-car inventories thin out, dealers rely on used-car sales to tide them over until new models arrive. All of that comes as consumers are increasingly choosing used vehicles as a less-expensive alternative to new ones.
As an example, Rice said a 2- or 3-year-old Cadillac Escalade with a six-year, 100,000-mile warranty may cost $45,000, while a new one would cost at least 50 percent more. That price difference, along with the drop in gasoline prices over the past year, has increased demand for used SUVs.
Rice has seen it firsthand. His store’s new-car sales are down 40 percent this year, while used-car sales are up 56 percent.
“The used-car business is very strong,” he said. At a two-day tent sale held recently by Hall Automotive, the company sold 100 used trucks and SUVs, five times the normal sales rate.
“Used trucks and SUVs are very hot right now,” Miller said, adding that foreign cars are also bringing big money. “I’ve seen 1-year-old Honda Accords go at auction for what they’re going for new. That’s pretty common right now.”
Such anomalies in the marketplace make it essential that prospective buyers research their purchase decision before entering a showroom. While buyers may be tempted to wait to see if prices go lower, dealers think otherwise.
“There’s not going to be a lot of leftover inventory come fall,” Rice said. “Manufacturers will put the money on the hood that they need to move it, but they won’t have to put big money down.” Miller agreed.
Sunday, May 31, 2009
2009 May Auto Sales: India Sales Moderate, Maruti and Hyundai Post Rise
In India, car sales moderated in May with market leader Maruti witnessing a double digit growth. Maruti Suzuki India Ltd. and Hyundai Motor Co. - India's top two auto makers by sales - gained in May as demand for their Ritz, i10 and A-Star small cars rose.
However, monthly sales were down for Mahindra & Mahindra Ltd., the nation's largest maker of sport-utility vehicles (SUVs), due mainly to a two-week strike at its Nashik plant in western India.
Sales at Maruti were up for the fifth straight month, gaining 16% in May to 79,872 vehicles.
Local sales increased 10% to 70,785 vehicles, while exports surged 87% to 9,087 vehicles, said the Indian unit of Suzuki Motor Corp.
Maruti, the nation's largest auto maker by sales, introduced the Ritz, its seventh small car model, in May amid intensifying competition from Hyundai and General Motors Corp.
"We are seeing some initial signs of a revival in the auto industry," Amit Kasat, analyst at Mumbai-based Anand Rathi Financial Services Ltd., said by phone.
"With forecasts of a normal monsoon and good GDP growth this year, we should see more demand from semi-urban and rural areas, especially for two-wheelers."
Mr. Kasat, however, said the current growth rate for automakers will taper off in the July-August quarter because of higher sales in the previous year.
Sales of Hyundai's local unit increased 8.4% in May to 43,628 vehicles; of that, local sales fell 4.1% to 23,503 vehicles, while exports rose 22% to 20,125 vehicles.
Arvind Saxena, senior vice president for marketing and sales at Hyundai India, said government incentives in various European countries - including Germany, Italy, France and the U.K. - to revive automobile sales had boosted demand in those markets.
Mahindra sales fell 18% in May to 16,866 units; including 12,620 SUVs, a 3.3% decline from a year earlier.
Sales of the Logan sedan, produced in partnership with Renault SA, plunged to 427 units from 1,531 a year earlier.
In the two-wheeler segment, Hero Honda Motors Ltd., the nation's largest motorcycle maker by sales, posted a 22.5% rise in May sales to 382,678 vehicles.
Hero Honda, the Indian affiliate of Honda Motor Co., produces motorcycles such as the Karizma and Hunk at three factories in Haryana state.
Anil Dua, senior vice president in charge of marketing and sales at Hero Honda, attributed the growth in May sales to the introduction of new products, expansion of the sales network and forays into new markets.
Sales at TVS Motor Co., the third-ranked two-wheeler maker, increased 5.1% in May to 118,574 vehicles, thanks to higher moped sales.
However, monthly sales were down for Mahindra & Mahindra Ltd., the nation's largest maker of sport-utility vehicles (SUVs), due mainly to a two-week strike at its Nashik plant in western India.
Sales at Maruti were up for the fifth straight month, gaining 16% in May to 79,872 vehicles.
Local sales increased 10% to 70,785 vehicles, while exports surged 87% to 9,087 vehicles, said the Indian unit of Suzuki Motor Corp.
Maruti, the nation's largest auto maker by sales, introduced the Ritz, its seventh small car model, in May amid intensifying competition from Hyundai and General Motors Corp.
"We are seeing some initial signs of a revival in the auto industry," Amit Kasat, analyst at Mumbai-based Anand Rathi Financial Services Ltd., said by phone.
"With forecasts of a normal monsoon and good GDP growth this year, we should see more demand from semi-urban and rural areas, especially for two-wheelers."
Mr. Kasat, however, said the current growth rate for automakers will taper off in the July-August quarter because of higher sales in the previous year.
Sales of Hyundai's local unit increased 8.4% in May to 43,628 vehicles; of that, local sales fell 4.1% to 23,503 vehicles, while exports rose 22% to 20,125 vehicles.
Arvind Saxena, senior vice president for marketing and sales at Hyundai India, said government incentives in various European countries - including Germany, Italy, France and the U.K. - to revive automobile sales had boosted demand in those markets.
Mahindra sales fell 18% in May to 16,866 units; including 12,620 SUVs, a 3.3% decline from a year earlier.
Sales of the Logan sedan, produced in partnership with Renault SA, plunged to 427 units from 1,531 a year earlier.
In the two-wheeler segment, Hero Honda Motors Ltd., the nation's largest motorcycle maker by sales, posted a 22.5% rise in May sales to 382,678 vehicles.
Hero Honda, the Indian affiliate of Honda Motor Co., produces motorcycles such as the Karizma and Hunk at three factories in Haryana state.
Anil Dua, senior vice president in charge of marketing and sales at Hero Honda, attributed the growth in May sales to the introduction of new products, expansion of the sales network and forays into new markets.
Sales at TVS Motor Co., the third-ranked two-wheeler maker, increased 5.1% in May to 118,574 vehicles, thanks to higher moped sales.
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