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The AutoGuide News Blog is your source for breaking stories from the auto industry. Delivering news immediately, the AutoGuide Blog is constantly updated with the latest information, photos and video from manufacturers, auto shows, the aftermarket and professional racing.
New cars leaving dealership lots last month helped push average fuel economy in the U.S. to an all-time high.
So Long, Summer
Like memories of band camp August is dead and buried. Regrettably the eighth month of the year didn’t go quietly; it took summer down with it. Sure, the season’s not officially over but we’re too emotionally devastated about the loss to care. At least new-vehicle sales in the U.S. were strong.
With sales on an upswing all across the auto industry, record-setting amounts of vehicles are hitting the road in the United States.
Welcome to 2014! Apparently in Chinese Astrology it’s the year of the “wood horse” but let’s hope this timber pony can canter away and carry the auto industry to continuing sales success. Which brands drove away with buckets of cash and which ones took a tumble down the stairs? Let’s take a peek at last month’s showroom winners and losers.
Overall the market took a small slide in 2014’s first month. January’s inhospitable weather likely kept shoppers at home huddled in front of their heat registers instead of out and about shopping for cars. Compared to the same time period in 2013, new-vehicle deliveries declined three percent to a little more than one million units.
Sales moved in the wrong direction, though fortunately the decline wasn’t severe. Still, a number of automakers did post some welcome gains, though these were offset by others that dropped.
Labor Day is full of wonderful stuff: inflatable gorillas, free hot dogs and enough sheet metal on sale to drown a city in consumer debt several times over.
Auto sales are poised to crack the 16 million mark in 2014, a number that if met will represent the fifth straight year of growth for the American car market.
According to a new study, the 55-to-64-year-old age group is most likely to purchase a new car.
The average fuel-economy value of vehicles sold in July was 24.8 mpg, tying the record high previously reached in March, April, and May.
Now that Detroit automakers have failed to keep Japan out of regional free trade talks, they are hoping that the U.S. will listen to its demand that the auto tariffs are phased out in no less than 25 to 30 years.
Average gas mileage for new-cars has risen to an all-time high in America: 24.8 mpg in May 2013.
Japanese Prime Minister Shinzo Abe announced yesterday that an agreement has been reached with the U.S. that will phase out trade tariffs affecting car and truck imports. The Detroit 3 balked.
Today is the 1st of March and that only means one thing… February is rapidly fading into the rear-view mirror. How well did automakers fare in the second month of the year? Here’s a look at some of the big sales stories from the last 28 days.
For the last four years, new car prices have risen quickly as the U.S. comes out of its recent recession. But a new report shows that new car prices are beginning to level off now that automakers have been disciplined about their discounts and sales incentives.
We are constantly waiting for outfits such as J.D. Power and Associates to tell us which car is the most reliable, but consulting firm 2953 Analytics says that these scores really don’t matter all that much.
June of 2012 marked a good year for automakers, improving sales by 20 percent overall, compared to June, 2011.
While automakers are targeting younger demographics with flashy marketing campaigns, they ought to be appealing to more adult sensibilities because baby boomers make up more than half of the car buying market today.
The average new vehicle sold in March in the United States reached an all-time high of $30,748, up from $28,771 a year earlier.
Even though average car prices are going up, buyer preferences may also be shifting in a non-traditional direction towards smaller and cheaper cars.
Sub-compact and compact car sales, for example, are growing in the U.S. and could largely be attributed to rising gas prices. Boosting the average price of a new car sold could also be the premium that hybrids and EVs are demanding. Regardless, automakers are well aware that buyers are looking at smaller cars and variants such as the upcoming Abarth 500 Convertible are coming to America to satisfy consumer demand.
“It’s not a blip. It’s a trend we’ve been seeing for months,” said Jesse Toprak, TrueCar’s chief automotive analyst. “This might seem counter-intuitive at a time you might expect to see people buying cheaper cars because fuel costs are rising so fast.”
According to data in the report, nearly one in four cars sold in March were in the small car category, compared to December when barely one in six vehicles sold was a small car.
Another contribution to the rising average price of a new car sold is the fact that buyers are willing to add all the available options and upgrades since they plan on keeping their vehicle longer. Buyers are now holding onto their vehicles for an average of 57 months.
Finally, supply and demand are on a more even level now that many automakers have cut production in order to save costs. When automakers had more vehicles sitting on the lots, they were more likely to offer big incentives and discounts to sell cars. Now there is even a shortage of certain models which allows dealerships and to charge markups.
[Source: The Detroit Bureau]
Things aren’t just “made in China” anymore, in fact the country’s surging economy is significantly supporting industries like the luxury car market. BMW, Audi, Mercedes-Benz and more are all aiming their crosshairs at the Chinese economy, hoping it can be the saving angel capable of salvaging growth.
That’s still likely to be the case, though not with the breakneck speed we saw a year ago when light vehicle sales grew 33 percent. China is taking steps to shush their screaming economy by restricting residential property purchases in an effort to avoid a housing bubble. Despite that, IHS Automotive and LMC expect car sales to grow between eight and 10 percent next year.
That growth will be slower thanks to restrictions and disappearing subsidies. The Chinese government removed incentives after 2010 meant to encourage new car buyers into the market while Beijing, this year, imposed a strict quota on new car purchases to cut down on traffic congestion and pollution.
Despite that impediment, Chinese car sales are still expected to grow, which is good news for luxury car makers. Demand for German luxury cars is actually eclipsing the European market, which traditionally consumes the most. With money looking tight across the globe, a 10 percent growth margin is sure to look good for any automaker.
[Source: Automotive News]