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Archive for the ‘Monthly Results’ Category

First Drive: Genesis G70

The Koreans finally deliver a real threat to Munich's vaunted sport compact.

by on Jul.16, 2018

Genesis tapped BMW's former M chief to help build some impressive dynamics into the G70.

Hard to believe but it’s been a full decade since Hyundai introduced what was then its most expensive and lavishly equipped model, the Genesis sedan going on to become the North American Car of the Year, among the many awards it collected. The four-door model also had a sort of Mini Me, the Genesis Coupe essentially being positioned as the Korean carmaker’s answer to the ever-popular BMW 3-Series.

Like so many other 3-Series wannabes, the Genesis Coupe wasn’t up to dethroning the king-of-the-sport-compact-hill, but it’s clear that Hyundai has kept that goal in mind and, a decade later, it’s come about as close to anyone to calling BMW’s bluff.

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The original Genesis siblings are gone. Indeed, the name itself has been repurposed for Hyundai’s new luxury brand. A couple months from now, the high-line division will get its third new entry since being spun off two years ago, and the 2019 Genesis G70 does a better job of justifying the Genesis brand’s existing than the two models that came before it, the midsize G80 and premium luxury G80. It also presents a surprisingly solid alternative to the 3-Series, as well as other compact European contenders like the Audi A4 and Mercedes-Benz C-Class.

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Despite Sales Slump, Genesis on Target, Says U.S. Chief

Upturn linked to new products, standalone dealers, says Raphael.

by on Jul.11, 2018

Genesis steps things up by taking a shot at the vaunted BMW 3-Series with the new G70.

It’s not often that a senior brand executive is pleased to see his sales slide by more than 50 percent, but Erwin Raphael says the sharp year-over-year decline Genesis reported last month is pretty much right on target.

Two years after it was spun off by Hyundai as a standalone luxury brand, Genesis is in the midst of some major changes that will determine its long-term success. That starts with the upcoming launch of the 2019 G70, which targets the likes of the vaunted BMW 3-Series, as well as the first Genesis SUV expected to join the line-up next year.

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The Korean marque is also getting ready to launch its own standalone dealer network in the coming months, one that will see the number of Genesis outlets in the U.S. drop by more than 85 percent. But, as with sales, bigger numbers aren’t always better when you’re launching one of the first new luxury brands in decade, insists Raphael, the executive director of Genesis Motor America.

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New Vehicles Jumping in June

Big Six automakers all enjoy sales increases last month.

by on Jul.03, 2018

Ram trucks and Jeep led Fiat Chrysler to an 8% sales jump in June.

Even as the price of gasoline rises, the six big car makers that dominate the U.S. market, Fiat Chrysler Automobiles. N.V. Ford Motor Co., General Motors, Toyota Motor Co., American Honda and Nissan, all reported sales increases for June with the help of strong sales of trucks and utility vehicles.

Fiat Chrysler Automobiles N.V. reported June 2018 sales of 202,264 vehicles, an 8% increase compared with sales in June 2017.

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Overall sales were bolstered by both the Jeep and Ram brands, which reported significant increases for the month. FCA had the best retail sales in June sales since 2004. Fleet accounted for 23% of total sales, a 1% decline from the previous year. (more…)

New Vehicle Sales Holding Steady in June

First half set to be the weakest in four years.

by on Jun.28, 2018

June auto sales are holding steady, but the second half is expected to be soft.

New vehicle sales in June appear to be holding steady but are expected to decline during the second half of the year, analysts reported this week.

Cox Automotive said it expected June to rise 2.1% from last year, resulting in a seasonally adjusted annual rate of 16.9 million. The June sales pace is up from last year’s 16.6 million rate and is up slightly from the 16.8 million level in May 2018, Cox said. Through the first five months of 2018, the SAAR has averaged 17.1 million.

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J.D. Power and LMC Automotive predicted a 0.6% decrease compared with June 2017. “The first half of 2018 will deliver the weakest industry retail sales results since 2014,” said Thomas King, senior vice president of the Data and Analytics Division at J.D. Power. (more…)

Automakers Launch Full-Size Truck Incentive War

Up to $16,000 in givebacks and discounts on some 2018 models.

by on Jun.07, 2018

FCA has some of the largest incentives -- up to $16,000 -- available on its 2018 Ram.

Despite strong demand, US. Automakers have launched some of the most lavish incentives on full-size truck models seen since the end of the Great Recession, with discounts of as much as $16,000.

The move might come as a surprise considering pickups have retained strong momentum despite the weakening of the broader U.S. automotive market over the last year, and the latest round of incentives threaten to cut into the earnings delivered by what are traditionally the most profitable product segment in the market.

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Automakers appear to be acting for a variety of reasons, including the need to clear inventories ahead of the launch of all-new models from both General Motors and Fiat Chrysler Automobiles, as well as the potential weakness of segment leader Ford which lost thousands of units of production due to a supplier problem last month.

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Tesla CEO Musk Survives 1st Big Challenge as Chairman as Model 3 “Quite Likely” to Meet Target

Shanghai, European plants could be announced within weeks.

by on Jun.06, 2018

Tesla CEO Elon Musk beat back challenges to his role, while 3 board members were voted back in.

Elon Musk stared down a group of dissident shareholders on Tuesday, surviving the first serious challenge to his dual role as chairman and CEO of the California automaker, while three of his hand-picked board members also fended off challenges.

Musk, who has developed an almost cult-like following among investors and electric vehicle fans alike, has faced an unusual degree of scrutiny in recent months as a result of mounting losses, struggles with production of the Model 3 sedan and a series of widely reported crashes involving Tesla vehicles. But despite some opposition, the company’s annual shareholders meeting was largely focused on promises about great things to come.

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Musk promised that after months of what the CEO has dubbed “production hell,” the pace is picking up at the Fremont assembly plant and that production will “quite likely” reach his 5,000 vehicle-a-week target by the end of June. Meanwhile, he and members of his senior management team outlined other developments to come, including the launch of additional production plants that could substantially boost global demand.

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May Auto Sales Bring Mixed Results for Makers

Analysts believe month will end positive.

by on Jun.01, 2018

Jeep's 29% sales increase in May led FCA to an 11% jump overall for the month.

Automakers are looking at a mixed bag of sales for May, but when the final tally is recorded, it’s expected to see the industry on the plus-side of the ledger. Early returns show that domestic makers fared well, while others are more spotty.

Fiat Chrysler Automobiles posted a double-digit sales jump of 11% thanks to big surge in sales by the Jeep brands, where sales went up 29%.

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Ford Motor Co. managed to eke out a 0.7 % sales increase during May. The increase included an 11% in sales of F-Series pickup trucks despite a crippling fire that forced the company to shut down production for more than a week. (more…)

US New Vehicle Sales Bloom in May

Analysts predicting more than 3% jump.

by on May.29, 2018

New vehicles sales are expected to rise 3.1% on year-over-year basis in May, according to analysts.

New vehicle sales are expected to increase during by more than 3% in May, reflecting the strong showing by General Motors and Fiat Chrysler Automobiles N.V., according to new monthly forecasts, but the overall sales rate is falling behind the pace in 2017.

Cox Automotive predicted that overall, U.S. new-vehicle sales in May 2018 are expected to increase 3.1% compared to May 2017. The seasonally adjusted annual rate or SAAR, projected at 16.6 million for this month, is expected to fall to its lowest level since August 2017.

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The Cox forecast 16.6 million SAAR is down slightly from the 16.7 million level in May 2017, and down from the 17.1 million pace the market has been averaging in 2018. (more…)

Toyota Earnings Jump, Despite Rising U.S. Incentives

Record R&D spending could hurt operating profit.

by on May.09, 2018

Toyota CEO Akio Toyoda is not only pushing for automotive sales growth, but leading the company into the emerging mobility sector.

Toyota saw earnings jump 21% between January and March, the final quarter of its fiscal year, despite having to sharply ramp up incentives in a slowing U.S. automotive market.

The automaker reported a profit of 480.8 billion yen, or $4.4 billion, up from 398 billion yen the year before. Toyota’s sales also rose 2% to 7.58 trillion yen, or $69 billion. For the full fiscal year, it earned 2.49 trillion yen, or $23 billion, a 36% increase, with sales rising 6%, to 29.38 trillion yen, or $268 billion.

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The strong performance helped highlight the cost-cutting efforts initiated by CEO and President Akio Toyoda, the grandson of Toyota’s founder declaring, “We’ve become a leaner, trimmer company … and in the past year we’ve developed our remaining fat into muscle, so that we’re in a strong position to be more competitive.”

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Car of the Year? Even Honda Accord Falls into a Black Hole as Sedan Sales Continue to Wither

Slumping sedan sales putting a chill on spring sales.

by on May.02, 2018

It may be new for 2018, but U.S. buyers have had only a tepid response to the latest Honda Accord.

Few recent product launches generated more buzz than the debut of the 2018 Honda Accord. Long one of the U.S. market’s best-selling nameplates, the 10th-generation sedan quickly racked up a slew of awards, including North American Car of the Year.

But despite all the rave reviews, Honda is struggling to retain momentum for the Accord. American motorists purchased just 21,751 of the sedans in April, a 19.3% year-over-year decline. And even when adjusting for the fact that April 2018 had two fewer sales days than the year before, the dip was 12.5 percent. And Honda isn’t alone. The completely redesigned 2018 Toyota  Camry, a Car of the Year runner-up, suffered a 5.0% drop in volume in April.

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“They’re both brand new vehicles and award winners, but I’m not sure that has any impact now,” said Joe Phillippi, head of AutoTrends Consulting. “Consumer tastes are changing. Everybody wants SUVs and CUVs.”

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