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Posts Tagged ‘car sales’

New Vehicle Sales Booming in May, Tracking for 17 Mil

Sluggish April being offset by this month’s results.

by on May.22, 2015

Sales in May are outperforming expectations, led in some measure by strong SUV and truck sales.

The economic “showers” that slowed new car sales in April are resulting blooming results in May as new vehicle sales are exceeding expectations thus far this month despite the slow tempo of economic growth in the U.S.

“The industry continues to outperform prior-year levels with respect to retail sales and transaction prices,” said John Humphrey, senior vice president of the global automotive practice at J.D. Power.

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Total light-vehicle sales in May 2015 are projected to reach 1,591,100, a 3% increase on a selling-day-adjusted basis compared with May 2014. Fleet volume is expected to hit 290,500 units, accounting for 18.3% of total sales, up from 17.6% a year ago. (more…)

Collapse of Oil Prices Rocks Auto Industry

Volatility causes some markets to shrink.

by on Mar.20, 2015

Audi's new plant in Mexico may be the last of its kind for some time, according to IHS Analyst Henner Lehne.

Unforeseen events such as the sudden collapse of oil prices and the conflict in the Ukraine have combined to re-shape the outlook for the automobile industry, according to Henner Lehne, senior director of global light vehicle forecasting, IHS.

The oil price collapse, which has garnered renewed attention this week as the price of crude oil dropped again, has begun to create clear winners and losers. The list of winners includes the United States, China, Japan and other oil importing nations, while the losers have been net exporters, such as Russia, Venezuela, Norway and sub-Saharan Africa.

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Within the European Union, the falling price of oil has been more or less neutral because the decline in oil prices has been offset by the decline in the value of the euro and higher taxes used to replenish losses by governments in euro-zone. The recent shifts also mean that that the carmakers now have to depend on mature markets in North American and Western Europe. (more…)

Europe Back in Gear: Sales Grow for 18th Consecutive Month

But recovery likely to be slow, less than phenomenal.

by on Mar.17, 2015

Nissan-Renault's Carlos Ghosn expects the growth of auto sales in Europe to continue to slowly increase for some time.

European automakers have another reason to celebrate today, an industry group confirming that sales on the Continent rose in February, the 18th consecutive month of increased demand.

There is now general consensus that the European auto market’s worst recession since World War II has ended. But there’s far less agreement over the form the recovery will take.

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Expect to see “slow growth … for a long time, 2 to 3% a year,” forecast Carlos Ghosn, CEO of the Renault-Nisan Alliance, during an appearance at the Geneva Motor Show earlier this month. (more…)

Automakers Enjoy Strong February Sales Despite Cold Weather

Truck, SUVs continue to report strong results.

by on Mar.03, 2015

Nissan's Sentra saw sales increase 24% in February. Most early reporting automakers saw sales increases in last month.

Good news for automakers in February: U.S. consumers still wanted to buy new cars, trucks and sport-utility vehicles despite the frigid weather conditions that prevailed across much of the country. Most automakers reporting sales early today managed to post modest sales increases for the month of February.

General Motors, FCA US, Toyota, Nissan and Infiniti all reported sales increases while Ford announced modest 2% drop in sales and the Volkswagen brand saw its sales drop by 5%

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Reid Bigland, head of U.S. Sales for FCA, said Chrysler, Jeep, and Ram Truck brands each posted year-over-year sales gains in February as FCA sales increased 6% compared with the same month a year ago. The Jeep brand’s 21% increase was the largest sales gain of any FCA US brand during the month and its best February sales ever. The group extended its streak of year-over-year sales gains to 59 consecutive months. (more…)

Automotive Loans at All-Time Highs

Rising new vehicle sales expected keep totals rising.

by on Feb.20, 2015

There are $866 billion outstanding vehicle loans in the U.S.: an all-time high.

Americans owe more money for new and used cars than ever: $866 billion, according to Experian Automotive.

That’s the outstanding loan balance for vehicles in the U.S. and not only have Americans borrowed more than ever for cars, the average length of new car loans is a record-high 67.2 months – almost six years.

It’s not entirely surprising as new cars are being sold for their highest prices ever, according to TrueCar.  The average transaction price for new cars in 2014 was $31,831. Next year it’s expected to surpass the $32,500.

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Also it’s well-documented that lenders have loosened up their requirements, which certainly played a role in the record loan number, but only in the sense that sub-prime and deep sub-prime buyers were give more loans – like everyone else. (more…)

Study Forecasts Three More Years of Auto Sales Growth

But several factors could lead to a modest slide as the decade ends.

by on Feb.20, 2015

Honda hopes to ride booming demand for small crossovers with the launch of its new HR-V.

After one of the worst downturns in U.S. automotive history, the industry could be in the midst of one of the more long-lasting recoveries, according to a new study predicting sales will continue to grow through 2017.

Americans bought 16.4 million vehicles last year, a nearly 6% year-over-year increase, and well ahead of the predictions most analysts and planners made at the beginning of 2014. AutoPacific Inc. is forecasting demand will rise to 17.0 million this year, and hit a 17.24 million peak in three years before gradually settling back.

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“U.S. sales recovery has been steady since hitting the bottom of the decline in 2009,” says Ed Kim, the consulting firm’s Vice President of Industry Analysis. The upward surge will continue, albeit at a slower pace, he predicts, “fueled by continued increases in truck and SUV sales.”

(more…)

Automakers Riding Sales Tsunami into 2015

All indicators suggest makers hit 17 million units this year.

by on Jan.05, 2015

BMW recaptured the luxury sales crown from Mercedes-Benz in the U.S. in 2014. Lexus finished a distant third.

If the end of 2014 is any indication, the new year for cars (and trucks) may be best described by The Cars’ 1978 classic song lyric: let the good times roll.

The industry saw sales up in December as an improving economy and low-priced gasoline renewed the country’s love affair with new vehicles – in particular full-size trucks and SUVs – and it’s a trend that’s expected to continue.

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Auto sales are expected to surpass 16.5 million units, which is a 6% increase on a year-over-year basis, when all of the counts are in today. Part of the reason is that all of those “feel good” factors were catalyzed into reasons to buy with heavy advertising and tempting incentives by automakers during the holiday season. (more…)

New Car Sales Predicted to Top 17 Million in the US in 2015

Next year expected to hit new highs for new and used vehicle sales.

by on Dec.22, 2014

TrueCar expects the luxury vehicle segment to experience the largest sales growth in 2015.

A catalytic combination of an improving economy and lower gas prices will result in record results for the auto industry in 2015.

TrueCar, the online car-selling and data service, is predicting that new vehicle sales will exceed 17 million units next year and total sales will be more than 55.7 million units.

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“We see a convergence of favorable economic circumstances pushing auto demand up to pre-recession levels, including continued gains in the job market, the best consumer sentiment in eight years and low fuel prices,” said John Krafcik, president of TrueCar. (more…)

New Vehicle Buyers Gobble up Trucks, SUVs, Luxury Cars

Lower gas prices contribute to strong sales.

by on Nov.03, 2014

Audi was among many automakers that reported October sales increases.

The sales numbers from October have given carmakers a renewed sense of confidence that sales will remain strong in the months to come as consumers continue to buy more trucks, utilities and luxury vehicles.

A long string of carmakers reported increased sales during October among them Subaru, Chrysler Group, Audi, Nissan, Mercedes-Benz, BMW, Toyota, Acura, Honda, Hyundai, Volkswagen, Kia and GM all reported sales increases for last month.

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“October vehicle sales were the best for the month in 10 years as an improving economy and lower gas prices drove strong SUV sales,” noted Bill Fay, Toyota division group vice president and general manager, who has said that the sale outlook for 2015 is also looks positive. (more…)

Low Gas Prices Keep Sales Going in October

Trucks and fuel-efficient vehicles rolling off dealer lots.

by on Nov.03, 2014

Jeep sales were up 52% on a year-over-year basis in October. Chrysler Group sales were up for the 55th consecutive month.

New car sales, aided by falling gasoline sales and the popularity of trucks, remained robust in October with preliminary results suggesting the seasonally adjusted annual rate of sales, or SAAR, hit 16.9 million units as Chrysler, Nissan, Honda, Volkswagen/Audi and General Motors all reported sales increases for the month.

Analysts are expecting the overall sales to jump 6% and the early returns suggest they’ll be correct in that there will be another increase in purchasing. Not only did trucks perform well, but smaller cars, such as the Chevy Cruze, Nissan Versa and others also saw impressive returns.

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Chrysler Group reported the biggest overall jump in sales of the early reporters with a 22% increase compared with sales in October 2013 of 170,480 units, the group’s best October sales since 2001 when carmakers utilized an extra heavy dose of incentives to boost sales following 9/11. (more…)