Autoblog

Recently, Honda has had issues with keeping supply and demand in check with its newest products. Waiting lists for everything from the Civic Si to the Honda Fit have become bones of contention with consumers, and the recently redesigned Honda CR-V was among them earlier this year. Sales of Honda's cute 'ute have been on an upwards trajectory during 2007, with over 167,000 units sold thus far -- a 44-percent jump over the previous year. Analysts contend that buyers who used to flock to the Ford Explorer are now looking at smaller, more fuel-efficient offerings, bolstering sales of the CR-V along with Toyota's RAV4.

Honda is constantly trying to keep a balance between imported and domestically made products, so it's considering doubling the North American production of the CR-V. The move would come at a perfect time, as CR-V sales have officially eclipsed sales of the Explorer, the U.S.'s best selling SUV for 14 years.

[Source: Detroit News]

Having learned from the sales bank debacle of the past, Chrysler is now throttling back production to draw down inventory levels. Sales of the PM/MK platform cars – Dodge Caliber and Jeep ComPatriot twins – are down roughly 23 percent compared to last year. Part of that is due to a move away from fleet sales, but whatever the cause, the 3,400 workers at the Belvidere assembly plant will get a two week vacation starting Monday. It's a great time of year to take a trip, enjoy some of the last warm days before winter tightens its grip, or just get out and rake the yard. By the time the line starts back up again, the backlog of unsold vehicles will be reduced, and the looming catastrophe of UAW contract talks will be looming.

[Source: Auto News - sub req.]

To them that have, more is given. Europe's biggest car maker just posted the biggest month-on-month increase in its entire history. The People's Car and its family brands did 12.1-percent more business in August 2007 than in August 2006, getting 286,000 vehicles into new homes.

For the year, VW sales are up 8.3-percent over 2006, with 2.4 million Golfs et al finding new homes. The numbers are lead by emerging market gains, with Brazil up 30-percent, China up 27.4-percent, and Argentina doing 21.3-percent more business. Volkswagen is expected to sell more than 3.5 million cars this year.

[Source: Just Auto, sub req'd]

The Jeep Wrangler Unlimited, Compass, and Patriot are helping Chrysler defend its market share in a declining sales environment. Between these new models and incentives on Dodge and Chrysler vehicles, Chrysler has managed to stay 0.1% ahead of the market's year-on-year drop in sales. The Wrangler Unlimited is proving a noteworthy boon, helping lift Wrangler sales by 71% year-over-year. Steve Landry, Chrysler's EVP of North American sales said, "The four-door has really created a halo effect for the Jeep brand, bringing people into the Jeep showrooms and it has improved our two-door sales."

Although Chrysler-brand vehicles lead the way among the Big Three in incentives, Jeep has placed little reliance on them. The numbers mean that Chrysler's market share has actually improved a tiny bit, from 12.85% to 12.86% in the US. It's a minuscule improvement to be sure, but for a company that has been through the wringer over the past few months (years, some would say), it's still a great statement.

[Source: Freep]

Sales of new Chrysler vehicles are down between 1 and 8 percent, depending on which brand you're looking at, but sales of the Pentastar rides referred to as Brand Spankin' Used are the best ever. Five-Star Chrysler dealers moved 10,204 Certified Pre-Owned Vehicles in August, a 5 percent increase over 2006. Particularly popular choices are the Chrysler Pacifica and the Dodge Magnum, those models seeing increases of 24 and 26 percent, respectively. CPO cars from any manufacturer are often a good bet, as they're typically a maximum of 5 years old and must undergo a more rigorous inspection than they might at another sales outlet. Chrysler's comprehensive 8 year, 80,000 mile warranty doesn't hurt, either. How could you deny the allure of a 300C that's delivered its depreciation hit to someone else, comes in cherry condition (Five-Star dealers typically wholesale anything that's not approaching pristine), and has a better warranty than many new cars? Now all Chrysler has to do is build more compelling cars that people will be clamoring for, even used.

Press release after the jump

[Source: Chrysler, LLC]

BMW outdid compatriots Mercedes and Audi to sell the most cars in August, taking the cake with the number one spot and probably the Benjamins as well. Compared to Audi's 66,400 cars and Mercedes' (and smart's) 96,200, BMW (with MINI) rolled 99,755 cars off dealer lots.

BMW couldn't have done it without the success of the MINI, and we can debate whether it's fair to include it in a shootout. Minus the little British lifestyle accessory, BMW only moved 85,003 units. Nevertheless, as long as its in there, it bodes well for the blue-and-white propeller, with the X5 and MINI (which is up 24%) still doing very well. All three makers have new and refreshed models on the way shortly, but BMW also has the brand new -- and certain to be popular -- volume-selling 1-Series and MINI Clubman in the works.

And not that they will add too much to the tally, but while we're throwing things in, there's the Rolls-Royce Phantom Drophead Coupe that will probably outsell Maybach all by itself. If it isn't already, the question soon will be: can you get too much BMW?

[Source: Motor Authority]

China and the U.S. are the two biggest car markets in the world, but despite this, Hyundai is easing back on its initial sales targets for both countries, citing tough market conditions as the main cause. In China, Hyundai has reduced its target from 320,000 units this year to 260,000, the first drop since the brand was launched there in 2002. Things are so grim that officials are even planning to drop prices just to keep up with the competition. Sales so far have dropped a staggering 18.2-percent this year, and this is in a market that's experiencing the world's fastest growth.

Fortunately for Hyundai, conditions in the U.S. aren't as severe. The annual sales target for the U.S. has only been lowered by 45,000 units, falling from 555,000 to 510,000, and once again low demand is the culprit. It's easy to think in the black-and-white of our own domestics doing poorly and imports doing well (that's not even always true), but Hyundai's predicament shows this is clearly not the case in the U.S.

Other bumps in the road slowing Hyundai's growth have been a string of recent industrial disputes, but these are nothing new. The automaker has faced walkouts in all but one year of its existence since the company was founded in 1987.

[Source: Yahoo News/AFP]

You didn't think we forgot to report the numbers, did you? We imagine some automakers wish we had, for instance Jaguar and Mercury, which share our Biggest Loser honor this month by dropping an identical 20.2% in sales. Another of Ford's brands, Land Rover, was the Biggest Winner, jumping 32.2% in sales last month versus August 2006.

Kudos to General Motors for pulling out a 5.3% increase in sales thanks to a big effort by Chevrolet (up 8.6%) and GMC (up 21.2%) that offset losses at the automaker's other brands. FoMoCo, meanwhile, took a hit by dropping 14.4% in sales (thanks Biggest Losers!). Even Toyota felt the crunch, slipping 2.8% in sales last month despite Lexus being up 3.6%. The newly christened Chrysler LLC reported a 6.0% fall in sales, with Dodge, Jeep and Chrysler brands all reporting lower sales last month versus 2006.

Overall, August 2007 seemed like a mixed bag for automakers, with some pulling out a victory (GM, Honda, Nissan, BMW) and others taking it on the chin (Ford, Toyota, Chrysler). This makes it hard to label August 2007 a good or bad month for the industry, but at least it's in the bag.

Biggest Winner
Land Rover 32.2% at 4,853 (08/06: 3,671)

Biggest Loser
Jaguar –20.2% at 1,359 (08/06: 1,704)
Mercury –20.2% at 12,296 (08/06: 15,417)

BRANDS
Acura –10% at 16,436 (08/06: 18,263)
Audi 7.1% at 7,620 (08/06: 7,115)
BMW 18.5% at 26,562 (08/06:22,421)
Buick –15.4% at 19,324 (08/06: 22,853)
Cadillac –2.8 at 19,481 (08/06: 20,036)
Chevrolet 8.6% at 229,012 (08/06: 210,860)
Chrysler –7.0% at 43,650 (08/06: 47,132)
Dodge –8.0% at 82,841 (08/06: 89,790)
Ford –16.1% at 180,282 (08/06:214,759)
GMC 21.2% at 51,222 (08/06: 42,262)
Honda 6.7% at 141,906 (08/06: 132,990)
HUMMER –15.4% at 5,677 (08/06: 6,711)
Hyundai 1.0% at 45,087 (08/06: 44,635)
Infiniti 8.7% at 10,252 (08/06: 9,429)
Jaguar –20.2% at 1,359 (08/06: 1,704)
Jeep –1.0% at 41,712 (08/06: 42,243)
Kia 7.0% at 26,874 (08/06: 25,114)
Land Rover 32.2% at 4,853 (08/06: 3,671)
Lexus 3.6% at 32,199 (08/06: 31,074)
Lincoln 16.1% at 10,423 (08/06:8,979)
Mercedes 1.8% at 20,980 (08/06: 20,602)
Mercury –20.2% at 12,296 (08/06: 15,417)
MINI 25.4% at 4,077 (08/06: 3,252)
Mitsubishi 19% at 13,020 (08/06: 10,954)
Nissan 6.0% at 85,275 (08/06: 80,419)
Pontiac –1.0% at 39,324 (08/06: 39,711)
Porsche 6.0% at 2,548 (08/06: 2,397)
Saab –5.0% at 3,011 (08/06: 3,168)
Saturn –4.2% at 21,117 (08/06: 22,050)
Subaru –7.5% at 16,573 (08/06: 17,809)
Suzuki 6.0% at 8,916 (08/06: 8,399)
Toyota –3.7% at 201,272 (08/06: 209,104)
Volkswagen –7.5% at 21,655 (08/06: 23,420)
Volvo 13.8% at 9,119 (08/06: 10,582)

NA: Mazda

COMPANIES
BMW Group 19.3% at 30,639 (08/06: 25,673)
Chrysler Group –6.0% at 168,203 (08/06: 179,165)
Ford Motor Co –14.4% at 218,332 (08/06: 255,112)
General Motors 5.3% at 388,168 (08/06: 368,776)
Honda America 4.7% at 158,342 (08/06: 151,253)
Nissan North America 6.3% at 95,527 (08/06: 89,848)
Toyota Motor Co. –2.8% at 233,471 (08/06: 240,178)

The housing crisis is being blamed for decreased truck sales. In light of the credit crunch, fewer loans are being disbursed and fewer construction workerss are actually at work. With GMC Sierra and Chevy Silverado sales taking the hit, GM has decided to cut a shift at its Oshawa, ON plant in Canada. In a factory that employs 3,000 people, that's a direct loss of 1,000. The indirect job losses won't be known for a while, as GM's suppliers and the businesses around the plant make cuts of their own. It represents the first time the plant has run just two shifts since the early nineties.

The move is more regrettable news for the CAW following Ford's closing its Windsor plant and Chrysler's plan to shed 2,000 union jobs in Ontario. With 85% of the Oshawa plant's output coming south of the border, the 7% drop in sales for the two trucks has made them especially susceptible. The potential light on the horizon is that GM plans to build a state-of-the-art factory next to the Oshawa truck plant to build 500,000 cars per year -- but only after closing one of the two car plants that are currently there. It's quite a fall for the region; GM's Oshawa Plant No. 1 was the most efficient plant in North America in 2004.

Thanks for the tip, Peter!

[Source: Report on Business via Auto North]

It looks like residents of Ohio's Lucas County, home to Jeep's Toledo HQ, aren't buying into the hype, even if they're the ones building the things. Part of it is that Kia plays in more segments than Jeep, so while the brands do compete, Kia has an edge. We're not saying we want to see a Jeep minivan. In fact, we wish that the money spent on the Compass would have gone into making the Patriot's interior better, or at least not so cheap, rather than trying to deliver a Jeep for every taste.

The fact remains that registrations of new Kias jumped 20 percent in the last year, versus Jeep's near stagnant sales numbers. Kia's price-leader status likely has a lot to do with that growth. Jeep's premium airs and SUV/CUV specialization also don't do the brand any favors when it comes to appealing to Toledo buyers. The desire for an affordable fuel-efficient vehicle, not necessarily in the SUV form factor, makes a good argument for buying a Kia. It would be interesting to see a more apples to apples breakdown, though, as the numbers are merely brand totals, not broken into segments. If you were to examine total sales of the parent companies, rather than just divisions, Chrysler crushes Hyundai/Kia in Toledo.

Thanks for the tip, Tom!

[Source: Toledo Blade]

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BMW plans on selling 700 M3s in the UK this year, but if you haven't already put in your order, better luck next year. Not only are the Brits excited to get their own M3, they're also packing on the options, as this year's orders average £4,700, with the optional 19-inch rims being high on everyone's list. BMW is expecting the interest level to remain high into the future, as it plans to ship 2,000 of their 414 HP rocket ships next year.

It should come as no surprise that M3s are flying off the shelves right now, since BMW has added high-end V8 power to the already outrageously successful 3-series. We fully expect to see similar sell-out stories in other countries, including here in the US, as the M3 is one rockin' ride.

[Source: Autocar]

Earlier today we referenced Toyota disputing Edmunds.com claiming that the Tundra was sold in July with $6,861 of incentives per vehicle. That would've been the highest amount of incentives for any full-size pickup sold last month, but it turns out Edmunds made an error and last Friday printed a retraction on its AutoObserver site. Though Toyota does not release the official amount of incentives it offers for the Tundra, Edmunds is now claiming the amount offered last month is $4,625. That amount, while still high, makes it the third highest amount of incentives behind the Dodge Ram 1500 ($6,739 per vehicle) and Nissan Titan ($4,835 per vehicle). Edmunds further claims the 2007 Chevy Silverado was sold with $3,995 worth of incentives last month, and the Ford F-150 with $3,574. The Honda Ridgeline, if it can be rightly included in this group, was sold with $2,746 worth of incentives.

[Source: AutoObserver]

During the 1932 World Series at Wrigley Field, New York Yankee Babe Ruth pointed to the center field bleachers while at bat during the fifth inning. He then knocked one out of the park directly where his finger was pointing. The Babe's famous called shot reminds us of recent comments made by Jim Lentz, executive vice president of Toyota's U.S. sales, about the Toyota Tundra. Last Thursday Lentz said, "We're spending the incentives necessary, given the economics, given a down market, to sell that 200,000 vehicles."

While not as glamorous or direct as Babe Ruth's pointed index finger, in our eyes Lentz effectively pointed to the center field bleachers and called it: Toyota will reach its goal of selling 200,000 Tundra's in 2007, the new full-size pickup's first year of sales. About 97,290 2007 MY Tundras were sold in the first six months of 2007, so 200,000 certainly seems reachable, but by no means in the bag. Just like the Big 3, Toyota has been laying both dealer and customer incentives on the hood of 2007 Tundras to encourage sales, and marketing for the truck has been omnipresent on TV and the web. Toyota disputes, however, the Edmunds.com estimate that incentives for the Tundra amounted to $6,861 per truck last month when 23,150 units were sold.

[Source: The Detroit News]

The launch of Toyota's all-new 2007 half-ton Tundra pickup has had its fair share of hiccups, but despite bumps in the road, it appears that the Japanese automaker's half-ton has become the first import pickup to overtake a domestic in year-to-date sales. According to Mike Levine at pickuptruck.com, it appears the GMC Sierra 1500 lost its #4 ranking in half-ton sales to the Tundra based on projections culled from production numbers.

General Motors reports that the Sierra has sold 115,185 units year-to-date. The figure, however, includes 2006 and 2007 models of the Sierra 1500, Sierra 2500 (three-quarter ton), Sierra 3500 (one-ton) and even the 2007 Sierra "Classic" based on the older GMT800 platform. GM doesn't break down the sales numbers for the Sierra by model, so Levine got creative and used production numbers for each model from both 2005 and 2006 to extrapolate what percentage of this year's sales the Sierra 1500 model was likely to be. Assuming the Sierra 1500 represents about two-thirds of all Sierra sales, that would mean GM sold 76,700 units of the truck during the first seven months of 2007. The Tundra, meanwhile, sold 105,990 units, of which 97,290 were the all-new 2007 Tundra. Based on an "apples-to-apples" comparison in sales between half-ton models, it would then seem the 2007 Toyota Tundra easily outsold GMC Sierra 1500 to become the #4 best-selling half-ton pickup in the U.S. Based on projections through the end of the year, the Tundra will likely outsell all GMC Sierra models, as well, making it the #4 best-selling truck of any kind in the U.S. behind the Ford F-150, Chevy Silverado and Dodge Ram.

Thanks to Mike for doing the legwork and crunching the numbers.

[Source: pickuptruck.com]

A couple weeks ago, J.D. Power released its Alternative Powertrain Study, which found that hybrid consideration among new car buyers is slipping, while interest in diesels is growing. Today J.D. Power released its 2007 U.S. Hybrid Vehicle Forecast Second Quarter Update, which projects that hybrid sales for 2007 will increase up to 35% this year. Last year, 256,000 hybrids were sold in the U.S., while the report released today indicates that up to 345,000 may be sold by the end of 2007. That would give hybrids a 2.3% share of the total market in the U.S. Sure doesn't sound like interest is slipping to us.

And that number is only likely to grow as more hybrids enter the market like the Ford Fusion Hybrid, Chevy Malibu Hybrid, GM's stable of Two-Mode Hybrid SUVs and like models from Dodge and Chrysler. Toyota itself pledges to have a hybrid option for all of its vehicles by 2020.

Nevertheless, hybrids have become an increasingly tough sell based only on their green merits, as new procedures to estimate EPA mileage have driven down their city and highway mileage estimates to more realistic levels. Also consider a report from the National Renewable Energy Laboratory that claims in the eight years that hybrids have been on the market in the U.S., they've saved 230 million gallons of fuel. Considering that we use about 385 million gallons of dead dino juice a day in the U.S., that means hybrids have saved us a total of 14 hours of fuel use in 8 years.

[Source: J.D. Power, AutoblogGreen]