Detroit Bureau on Twitter

Posts Tagged ‘sales results’

Buyers Celebrate End of Shutdown with New Vehicles

Industry still tracking for sales in the mid-15 million range.

by on Nov.01, 2013

Toyota's 8.8% sales increase in October was led by the new Corolla with a jump of 12.8%.

Automakers enjoyed a return to robust sales in the United States in October. The strong sales came after some sluggishness early in the month due to the 16-day government shutdown. Buyers returned to showrooms en masse providing some automakers with record October sales for some models.

With the final numbers being tabulated, October sales are expected to be almost 13% higher than the previous October. In fact, the number of automakers seeing sales increases far outstripped those witnessing declines. Japanese- and U.S.-based both shared in the return to prosperity.

Your Connected News Source!

Toyota saw its sales jump 8.8% in October and its luxury subsidiary, Lexus, enjoyed an even bigger jump of 14.5%. The makers latest products led the way, including the new Corolla, which sold 23,637 units this October compared with 20,949 last year resulting in an increase of 12.8%. (more…)

Revenge of the Clunkers – August Vehicle Sales Dive

Lavish taxpayer subsidies of last year come home to roost. Toyota, Honda, Nissan, Hyundai, and Ford post big declines.

by on Sep.01, 2010

The U.S. sales numbers for August on a raw basis are stark: Toyota is off -34% ; Honda Dropped -27%; Nissan down -27%; and even Hyundai and Ford – current media darlings- saw sales declines of more than 11%, compared with a year ago, according to Autodata Corp.

General Motors – in the midst of a stock offering where investor confidence will be key to success – saw wholesales of 185,000 vehicles, or a -25% drop from the year ago month. And the industry on average is off, sit down, -21%.

Offshore brands sold 555,425 vehicles during the month, down from 591,297 in July, but up from 525,845 in June. They occupied 55.7% of the market, a decrease from last month’s 56.3%. Asian nameplates, which greatly benefitted from Clunkers, took  a 46.9% share, down from 48.2% in July, but up from 44.8% in June. European nameplates gained slightly over last month with an 8.8% August share. Detroit Three brands finished the month with 44.3%, up from 43.7 % in July but down from 46.5% in June.

Executives universally claimed that the taxpayer subsidized CARS program – aka Cash for Clunkers – was responsible. It’s true Clunkers  artificially boosted sales rates to 14 million on an annual basis using, borrowed, taxpayer funds.  But more is going on here as consumer confidence remains badly shaken and sales tailed off during the month.   (See Ken Zino on Flat Incentives, Economic Blahs Kill August Sales)

Data not Drivel!

So, no surprise to the growing number of non-working stiffs, as this week’s growing unemployment numbers will reveal on Friday, the U.S. economy is tough, getting tougher and showing little signs of reviving in spite of record deficit spending by politicians, which was claimed to be the medicine needed to get it back on track. What we need is growing payrolls, not posturing pundits from either fat cat party or screaming “news” outlet.


Flat Incentives, Economic Blahs Kill August Sales

Mid-term elections loom large as Congress vacations.

by on Aug.31, 2010

Neither party appears to have a plan to restore middle class jobs.

New-vehicle retail sales in the last week of August slowed considerably, pulling down the August selling rate below 8.5 million units, according to the latest data from J.D. Power and Associates.

For total sales, the seasonally adjusted annualized rate (SAAR) is expected to come in below 11.4 million units, with fleet sales offsetting some of the weakness in retail sales.

This is far below the 16-17 million unit years the industry thrived on earlier in the decade, and the latest indicator – among many – that the U.S. economy is in trouble.

The final sales numbers, which will be out tomorrow as auto makers report shipments, increase the pressure on the incumbent Obama Administration to do something about the ongoing Great Recession and staggering levels of unemployment in the stalled U.S. economy.

While Republicans remain critical over deficit spending, the party that presided over the reckless practices of Wall Street that led to the current economic collapse are offering no ideas on how to get what was once $13 trillion in U.S. gross domestic production back on track, as businesses continue to cost cut, not invest,  and consumers stay home.


Chevy Heads J.D. Power China Satisfaction Study

Shanghai GM joint venture bests 42 other vehicle brands.

by on Aug.10, 2010

Smooth sailing for the Chevrolet brand in China at the dealer service level.

Chevrolet finished first among 42 vehicle brands in the 2010 China Customer Service Index study by J.D. Power Asia Pacific. Chevrolet, a brand of Shanghai GM, scored 875 on a 1,000-point scale.

Now in its 10th year, the Power study measures satisfaction among vehicle owners who visit an authorized dealer service department for maintenance or repair work between 12 and 24 months of vehicle ownership, which typically represents a substantial portion of the vehicle warranty period. Five measures are used to determine overall satisfaction with dealer service: service quality, vehicle pickup, service initiation, service advisor and service facility. Overall satisfaction is reported as an index score based on a 1,000-point scale.

The Chevy finish is potentially significant since China is the now clearly the world’s largest auto market. GM has a growing presence there, and it is locked in a battle with VW Group for sales leadership. Record annual sales of 17 million are expected this year in China, a 25% increase from 2009.

Vehicle sales by General Motors and its joint ventures in China rose 22.2% on an annual basis in July to 176,645 units, a new record for the month. Sales growth by GM’s Shanghai GM joint venture remained especially strong, rising 42.1% on an annual basis to 80,269 units – also a record for the month of July.


Toyota Reports U.S. Sales Down 7% in July

Leading Japanese maker slips behind, in spite of incentives.

by on Aug.03, 2010

Still the retail sales leader.

Toyota Motor Sales (TMS), U.S.A., Inc., today reported July sales of 169,224 units, a decrease of 6.8% compared to the same period last year on a daily selling rate (DSR) basis.

Overall the industry was up 5.1%, according to Autodata Corp.

On a volume basis, unadjusted for 27 selling days in July 2010 compared to 26 selling days in July 2009, TMS sales were down 3.2% compared to the same period last year.

Looked at either way the ailing Japanese giant is stumbling in a rising market.

Toyota’s Fleet sales remain low versus the Detroit Three, with Toyota at less than 7% of volume. This compares to four times that when compared with Detroit marketing practices.  Moreover, Toyota incentives remain at levels of about 50% to 60% of the industry, which is now running well over $3000 a unit, depending whose numbers you cite.


GM Posts Sales Gains in July, Up 5%

Remaining four brands are now clearly growing. Can GM recover from its decades long share and sales decline?

by on Aug.03, 2010

The question remains how well GM is doing relative to other automakers. Quick answer - lousy.

Dealers for General Motors delivered 25% more vehicles in July from its surviving Chevrolet, Buick, GMC and Cadillac brands for a total of 199,432 units when compared to a modest July of 2009.

Overall sales year-to-date were up 5.4% to 1,280,213 units compared to 1,143,799 last year. However, the industry was up 14.7% during the same period, meaning the GM continues to lag sales trends.

GM said U.S. auto sales for the industry ran at a seasonally adjusted annual rate (SAAR) of 11.7 million units in July, compared to 11.2 million a year ago.

Another potentially troublesome trend was a decline of -3.8% in retail sales year-to-date as fleet sales are increasing.

Incentive costs also remain relatively high with $3741 on average required to move each unit of metal, according to J.D. Power.

GM sales executives defended the incentive spending by introducing a new metric – the percentage of incentive per average transaction price. Here, GM at 10.6% YTD is in much better shape than the same period in 2009 when it was 14.6%.

Don Johnson, vice president, U.S. Sales Operations said that average transaction prices are up $3800 YTD and incentives are down -$730 to $3270 per unit.


Chinese Auto Market Cooling, But Still at 17 Million

Inventories high, dealer confidence low for the balance of 2010.

by on Jul.21, 2010

China claimed the global sales crown for 2009 and will likely retain it for years, if not forever.

The Economic Monitoring Center of China National Bureau of Statistics and Sinotrust International Information & Consulting today said that even though the Chinese market was growing at a record 18-million unit rate for the first half of 2010, it can’t be sustained for the balance of the year.

Dealers are not optimistic about for the second half of the year, traditionally a slack sales period, and inventories have grown.

Still, record annual sales of 17 million are expected, a 25% increase from 2009.

There is an ongoing debate in China concerning what is a sustainable rate of growth in what is now by far the world’s largest auto market.

According to the survey conducted with automakers and dealers, the “cooling off” was caused by declining sales closing rates and the pressure from the increasing inventory.

Although still optimistic, most automakers are now cautious in making predictions the size of the market in the third quarter.


Ford Retail Sales Decline 5% in January 2010

Company boosts overall sales results by drastically increasing fleet units. Real gain or reversion to bad habits?

by on Feb.02, 2010

All of Ford Motor Companies brands in the United States posted sales increases for the January 2010 period because of significant boosts in fleet sales, which more than doubled versus last January’s depressed levels.

FMC fleet sales were up 154%, as the automaker showed large gains in every fleet segment – commercial, government and daily rental.

Ford claims that last January most fleet owners deferred vehicle purchases due to the credit crunch and uncertain business and economic conditions. At that time and during the ensuing months the company boasted that it was decreasing fleet sales in favor of more profitable retails ones in a depressed market.

On a retail basis, Ford brands declined 5% in total retail sales when compared with what was an admittedly bad January of 2009.

On a unit basis, however, Ford cars were up +43%, crossovers were up +20%, sport utilities were up +8%, and trucks and vans were up +14%. Among the brands, Ford sales were up +26%, Lincoln sales were up +16% and Mercury sales were up +6%.

In the rough and tumble world of automotive marketing and image building, Ford Motor Company has been separating itself the other two wounded companies that comprise the Detroit Three,  reorganized Chrysler and General Motors, by saying, accurately, that it did not accept taxpayer bailout money last year.

While true as stated, the Dearborn, Michigan, based company has accepted billions in government money to develop vehicles  and retool its U.S. assembly lines to get back in sync with existing and projected consumer tastes, after the U.S.’s largest truck maker stayed with gas-guzzling, body-on-frame pickup trucks and SUVs for far too long.

Analysis not Raw Numbers!

The question facing the family-controlled Ford and its stockholders and potential investors is whether the company can continue to increase share profitably as all of its competitors regroup.  One thing is clear, Ford made huge inrods in overall sales in January against a floundering Toyota.


Ford Motor U.S. Sales Up 33% in December

Full year sales are down 15%, a relative success.

by on Jan.05, 2010


Ford's first full year share gain in 14 years.

Ford, Lincoln and Mercury dealers delivered 179,017 vehicles in December 2009, a 33% increase compared to one year ago.

Full-year sales totaled 1.62 million, down “only” 15% in a market off 21%, as Ford capitalized on the well-publicized bankruptcies of its severely wounded cross-town rivals, Chrysler Group, and General Motors Company.

As a result of its, relatively, good performance Ford posted its first full year market share gain in 14 years. Ford estimates its full-year 2009 U.S. total market share was about 15% – about one percentage point higher than in 2008.

While it is too soon to say that Ford is finally turned around after decades of decline, the Dearborn based company faces its best prospects in at least a decade and its stock  at ~+$10 a share is trading at a recent high. Just over a decade ago, Ford had five of the top ten selling cars in the U.S. Now it has two, the F-series pickup truck and the Ford Focus compact.

In December, Ford cars were up 42%, crossovers were up 51%, sport utilities were up 33%, and trucks and vans were up 18%. Among brands, Ford sales were up 37%, Lincoln sales were up 16% and Mercury sales were up 6%.


Overall, the auto market itself  was up 15%. So the primary Ford brand outperformed or swam, as Lincoln treaded water, as Mercury, glub,  sank.


Chrysler Group December U.S. Sales Decline 4%

Sales decrease 36% for the 2009 calendar year.

by on Jan.05, 2010

The newly reorganized company finished the year with 931,402 units sold, a decline of 36%.

Chrysler Group today reported December sales increased 36% compared with November 2009 as 20 of 24 vehicles posted sales increases for the same period.

The company also told dealers that virtually all of its vehicles will be covered by 5-year, 0% interest financing, and that taxpayer-owned GMAC had eased terms so that virtually every one will qualify.

U.S. sales for December of 86,523 units mean a decline 4% year-over-year. Overall industry figures for December are projected to come in at an estimated 11.3 million SAAR, which means the industry is up about 12% based on preliminary numbers, which underlines how far Chrysler has to go to turn things around.

The newly reorganized company finished the year with 931,402 units sold, a decline of 36% compared with 2008. Inventory is down 55% compared with December 2008, with 178,538 units in inventory, representing a 58-day supply.


Chrysler’s five year plan unveiled in February calls for a tight control of inventory, and the end of forcing vehicles on dealers, which at one point in the last year resulted in 150 days of inventory on lots, rather than the norm 60 days. The plan also calls for small, but steady increases in sales going forward.

Chrysler also announced the expansion of its “Invest in America” partnership with more than 90 million Credit Union members in the United States. The Credit Union member-preferred pricing program has been expanded to include all 2010 model year vehicles.

Chart follows: