Automotive News recites a number of statistics and reasons why February marked another good month of new car sales. Among them, an improving economy, incentives, and dealer promotional activities. GM showed the biggest increase, up 46% from a year ago.
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March 7, 2011
Automotive News – “The auto industry is back”
Posted by Mark under Automotive, Business, EconomyLeave a Comment
February 8, 2011
Finally, signs of life from Detroit – its a start
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The only state I can personally say has been harder hit by the economy, and for a longer time, than Oregon, is Michigan.
Michigan has been stereotyped by its fall from a once might auto manufacturing base that was tipped upside down by the economy, oil prices, generous union contracts, and Japanese imports in the early 1970s. And, it has never really recovered. It is my native state and I left there decades ago, along with so many others, in search of opportunity. I vividly recall the pickups on I-80 heading west in the late 1970s garnished with spray painted signs that read, “Last one to leave Michigan turn out the lights.”
I’m pleased to have landed in Oregon, a state of beauty but also of great economic challenges. Still, it was with a sense of gratitude that I enjoyed this video during the Super Bowl.
February 8, 2011
Double digit new car sales gains predicted in 2011
Posted by Mark under Automotive, Economy1 Comment
SAN FRANCISCO (Feb. 6, 2011) — Paul Taylor, chief economist of the National Automobile Dealers Association (NADA), said today that new-vehicle sales will reach 12.9 million units in 2011 as consumers benefit from higher trade-in equity and improving credit.
Last year, 11.55 million light vehicles were sold. A market of 12.9 million new vehicle sales this year would be a nearly 12 percent increase over 2010.
But Taylor warns that declining real estate values in many states have caused some consumers to pull back on large purchases like cars, and that trend will continue to play a role in new-car sales in 2011.
“The problem in the real estate market is too many houses,” Taylor said at the NADA Convention and Expo in San Francisco, which ends Monday. “The car market has too few used vehicles.”
The shortage in used vehicles is working in some consumers’ favor, however, Taylor says, because it has improved trade-in equity on their one- to five-year-old vehicles. That trend is paying dividends for dealers, too, because used-vehicle inventories are now more valuable.
“The shortage of used cars is one more pillar of strength for the new-car market,” Taylor says. “The debut of nearly 50 cars and trucks at the Detroit Auto show is another. So we have many strong indicators that the auto industry is making a comeback and will lead to increased sales in 2011.”
Here’s a list of NADA’s top five factors that will accelerate new-vehicle sales this year:
1. MORE NEW-CAR AND TRUCK CHOICES
Auto manufacturers are producing a wide variety of new cars and trucks that are headed to dealer showrooms.
There will be many new hybrid and electric vehicles as well as (more…)
February 8, 2011
Outgoing NADA chair, Portland’s Ed Tonkin, sees “New spirit of Optimism”
Posted by Mark under Automotive, Business, EconomyLeave a Comment
SAN FRANCISCO (Feb. 5, 2011) – With auto sales expected to reach nearly 13 million units in 2011, the outgoing chairman of the National Automobile Dealers Association (NADA) said today that the nation’s auto dealers have a renewed sense of optimism about the auto industry.
“We are on the way back,” said Ed Tonkin, a multi-franchise dealer from Portland, Ore., who will end his term as NADA chairman Monday, passing the gavel to Utah dealer Stephen Wade at the NADA Convention and Expo in San Francisco.
The convention, which runs through Monday, Feb. 7, is expected to draw nearly 17,000 total attendees, a 15 percent increase from the 2010 event.
“Our challenge now is to do everything in our power to keep things moving forward,” Tonkin said.
As chairman of NADA in 2010, Tonkin led the association through several legislative and regulatory (more…)
January 5, 2011
DETROIT (AP) — Auto sales rose in the United States last year for the first time since the recession. They’re still far from what they were just a few years ago – but that’s just fine with the downsized auto industry, which can post profits even if it sells millions fewer cars and trucks.
For the year, new car and truck sales came in at 11.6 million, up 11 percent from last year, automakers reported Tuesday. For December alone, sales were 1.14 million, also up 11 percent from a year earlier.
While the figures have some in the industry talking about a return to the glory days, it’s a fragile idea. Rising gas prices or more economic trouble could still shake the confidence of American car buyers.
But for now, executives are optimistic about this year. General Motors, Ford and Toyota all predict sales will come in at 12.5 million to 13 million for 2011. It will take years (more…)
December 29, 2010
National auto sales in recovery, 2011 projected growth
Posted by Mark under Automotive, EconomyLeave a Comment
The Associated Press and Dayton (OH) Daily News are reporting new car and truck sales growth through 2010. November’s 16.9% improvement over year prior place the industry in recovery.
Industry leaders optimism may be buoyed by a growing chorus of reports and speculation that the economy has turned the corner and that the economy is poised for real growth in 2011, such as this report from National Public Radio.
December 2, 2010
Nov. auto sales up 17%, 11th straight growth month
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Though 2009 was anything but a banner year for auto sales, 11 straight months of improvement is a welcome indicator or improving consumer confidence.
The Big Three Detroit firms all showed good growth with Ford leading the way, up 19% according to this article in autonews.com.
August 16, 2010
The past few years have given us the most turbulent of auto manufacturing times since the early decades of the industry.
Brands closed, or sold, or both, became nearly daily events. Government funding for some of our largest manufacturers was hotly debated.
In the midst of all this, the number one selling American brand in China, Buick, has captured the title of fastest sales growth in 2010. According to a spokesman in this Ad Age article, designing a quality product for a younger market has been key – though the younger market is about the same age as the average nightly network news audience, 61, which is three years younger than it was.
June 3, 2010
Mercury to join Olds, Hudson, others … gone
Posted by Mark under Automotive, Business, Marketing, retailLeave a Comment
Though not terribly consequential in Roseburg, where there is no Mercury dealership, it is worth noting the passing of another once popular car brand, the Mercury line . Mercury vehicles, manufactured by the Ford Motor Company, are to be phased out in the fourth quarter of this year. Ford says it is at the same time expanding the Lincoln line-up of vehicles. Perhaps they can do for Lincoln what GM has done for Cadillac … but they are late to the game.
The demise of Mercury appeared inevitable as Ford essentially ignored the brand while working to competitively position Ford branded vehicles. Mercury faded in relevance as the cars became Ford’s with a different grill and a higher price tag.
American automotive manufacturers were once widely admired for their ability to build brands. Oddly, that ended as some industry leaders focused on brand and stock valuation instead of product. That has changed in recent years, but too late for some lines.
So long, Mercury, we barely remember what you once were.
June 1, 2010
Used car prices projected to soften in second half
Posted by Mark under Automotive, Economy1 Comment
AutoRemarketing reports that used car prices were at historic highs in April but expected to soften in the second half of the year. The same article reports the economy as experiencing a mixed recovery and that used car supplies will decline over the next four years.
