Gas prices no longer seem to be as big of a factor when it comes to consumers purchasing vehicles as automobile manufacturers build more fuel efficient cars. August was a perfect example of this as gas prices rose and automakers reported sales also grew by almost 20%. According to analysts, the wide rang of fuel efficient, hybrid, and electric vehicles have made it easier for consumers to spend their hard earned money as the average car and truck on the road reaches over 10 years old. The biggest gains came from Toyota and Honda who experienced low sales last year in the wake of an earthquake and tsunami in Japan. Detroit automakers also showed substantial gains with the introduction of their high mileage car lineup. General Motors (GM) United States sales grew over 10%, driven by strong sales of the Chevrolet passenger cars like the Sonic subcompact and the Spark minicar. Ford also reported an almost 13% increase with the sales of the Focus compact car and the Escape, one of the smallest sub compact sport utility vehicles (SUV) on the market. According to analysts the strengthening industry has surpassed expectations and has helped automobile manufacturers keep inventories stable and sales incentives relatively low.
Tag Archives: Automotive sales
Total Quality Index Is More Than Automobile Quality
According to a 2012 Strategic Vision (SV) survey, consumer’s rate Volkswagen and Ford as having the highest quality ratings of all 2011 vehicles surveyed. The difference between Strategic Vision’s survey as compared to J.D. Power’s Quality Reports, done earlier this year, is that Strategic Vision uses what it calls the “Total Quality Index” (TQI). TQI not only rates vehicles by consumer complaints, but also takes into consideration the customer buying experience, vehicle performance and all around customer satisfaction. Strategic Vision has been working directly with automotive consumers since 1995, as well as maintains relationships with all major automotive manufacturers. This allows them to report on all aspects of the new car buyer’s experience.
This year’s survey questioned almost 40,000 people who bought model year 2011 vehicles between September and December 2010. Volkswagen came in first, mostly due to the success of the Golf, Jetta, and Tiguan. Despite complaints about about Fords infotainment systems; strong designs, technological innovations, and brand equity in the Mustang, Flex and F-Series trucks, gave Ford a second place. The biggest surprise came from the most improved corporation, Chrysler Group, who’s Dodge Charger and redesigned Jeep Grand Cherokee excelled in innovation, influencing the perceptions of quality. Even though Toyota vehicles were reported to have the lowest actual problems, there were no Toyota vehicles in the top of the list. With all automobile manufacturers running the tightest “quality race” ever, customers are increasingly defining “quality” by using the Total Quality Index.
Cadillac ATS Compact Luxury Sedan
General Motors Company (GMC) luxury vehicle subsidiary Cadillac, has always been known for their brash designs and big engines. But, as consumers turn to smaller more fuel efficient vehicles, they have been forced to rethink their automobile lineup in order to become competitive in the world market. According to GMC executives, the release of the Cadillac ATS will be the first of its compact luxury models that will launch it as a global contender. GMC hopes that their subtler design, loaded with the latest technology and touch screen controls will lure the younger luxury car buyer away from BMW’s 3-Series or the Mercedes-Benz C-Class. The ATS comes with three engine options, ranging from a fuel efficient four cylinder to a more powerful V-6 that can reach up to130 miles per hour. G.M. Has been advertising the ATS heavily over the summer, but the first shipments are not expected on lots until the beginning of September.
Ford Invests In Hybrid And Electric Technology
Ford is working hard to become the leader in hybrid and electric vehicles (EV) as they invest over $130 million to build an advanced electrification center in Dearborn, Michigan. The facility will employ approximately 1,000 engineers and will accelerate the companies EV development capabilities. The company hopes to top the market by launching five new electric or hybrid vehicles this year alone. Ford has just recently started developing their own transmission technology which will be built on the same platform as their mainstream gasoline engines. This has allowed them to cut the costs by 30% and will also allow the company to build vehicles according to consumer demand. Amy Machesney, the C-Max marketing manager said Ford feels it now has a product capable of competing with Toyota, and we are confident our EV and hybrid vehicles are comparable to the Prius.
Europe Auto Industry Restructuring
After a year of the lowest car sales since 1994 and factories operating at ten percent below the profit margin, European automobile manufacturers are being forced to restructure companies by cutting payrolls and closing factories just to survive. But with political resistance to cutbacks, strong unions, and strict labor laws, the question is whether companies can do it fast enough to survive.
In the 2009 recession, France and other European countries spent billions bailing out car companies. Instead of using that money to downsize factories and cut payrolls, it was used to subsidize salaries and offer consumers incentives to buy new cars. With automobile manufacturers back in the same position, they are once again turning to the government for help. But for a recovery plan to work, European leaders need to reconsider a free trade agreement with South Korea. Automobile executives say that these agreements are significantly hurting the industry by allowing Korean automakers to gain a jump in the market share.
The European automotive industry is key to the strength and competitiveness of Europe. The sector not only provides direct employment to more than 2.3 million people but also supports another 10 million jobs indirectly.
Chevrolet Offers New Car Refund
General Motors (GM) new marketing plan aimed at clearing out remaining inventory of Chevrolet vehicles, will allow customers to return their vehicle for a refund if they are not satisfied with their purchase. Chevrolet’s “Love It or Return It” offer will allow customers of any new 2012 and 2013 model year vehicles, to a full refund as long as there is fewer than 4,000 miles and the customer has driven the vehicle for at least 30 days.
Buyers who choose to return their vehicle will get all their money back, including sales tax. Unfortunately, expenses such as any additional taxes, licensing, registration and extras such as extended warranties will still have to be paid by the customer. GM hopes the plan will encourage customers to give Chevrolet vehicles a try, winning back some of the market share lost to import oriented markets. The promotion will be offered until Sept. 4, 2012.
Automobile Sales Up For June
Automobile manufacturers reported strong vehicle sales in June despite analysts predictions that the automobile economy is likely to slow for the summer. The average increase for dealership sales was 22% with Toyota and Honda showing the strongest gains. Consumer interest in larger vehicles, such as pickup trucks and sport utility vehicles (SUVs) is being attributed to a sudden drop in the price of fuel, and low interest rates and the release of new models is bringing in consumers who have been delaying purchasing a new vehicle because of lack of confidence in the economy.
BMW And Toyota Share New Technologies
German automobile manufacturer BMW and Japanese automobile manufacturer Toyota have announced that they will be expanding a 2011 agreement between the two companies to share strategic technologies in four different areas. BMW and Toyota emphasized that they have no intentions of building stakes in each others companies. Both say they share the same strategic vision of sustainable individual future mobility and feel their alliance will only strengthen both companies competitive position in sustainable future technologies. The agreement includes:
- The joint development of a fuel cell system.
- The joint development of architecture and components for a future sports vehicle.
- Collaboration on power train electrification.
- Joint research and development on lightweight technologies.
The agreement will also end any further discussions of BMW working with General Motors and will eventually dissolve a joint venture with France’s PSA Peugeot Citroen to share components for hybrid cars.
