December 2007 Sales
01-02-08, 08:51 AM
#1
Lead Lap
Thread Starter
December 2007 Sales
Slow December Auto Sales
Auto analysts are predicting that the lackluster end of 2007 will carry into 2008. The typical round of Holiday incentives failed to lure consumers into showrooms and resulted in a December sales decrease of 4%. While yet to be officially tallied, it is expected that 2007 auto sales slipped to about 16.1 million, the lowest volume since 1998.
During the past year, auto sales have been on the decline due to rising fuel costs, a slumping housing market and a general weakening of the economy. "A lot of these economic issues are continuing to put more pressures on the economy and the consumer as time goes on," Erich Merkle of IRN Inc. told the Detroit Free Press. In 2008, "most of the weakness is going to come in the first half or perhaps the first nine months of the year. So there is not going to be much to write home about."
Of the six leading automakers, it is predicted that the domestic automakers will wind up with the worst December results. Bear Stearns analyst Peter Nesvold says that Ford could see as much as a 14% decline in December sales, due largely to weak sales of the Ford Taurus and Taurus X and the Mercury Sable. However, Ford's F150 pickup will remain as the best selling truck in the U.S.
Nesvold predicts that General Motors' December sales could slip by 14%, although a 30% reduction in fleet sales accounts for most of the lost sales. Despite the slip, Chevrolet is posed to be the best selling brand of the year.
Chrysler will also see a double-digit decline in December, mostly due to a strong December 2006. Its newly redesigned minivans are expected to bolster December sales, although the Dodge Caravan will likely be unseated as the best selling minivan by the Honda Odyssey.
However, Jesse Toprak, chief economist for the auto information Web site Edmunds.com, predicts that Japanese marques will fair much better in the month of December. He predicts that Toyota's sales will fall 3% with Honda's declining by about 1%. Nissan sales are expected to stay flat, thanks to strong sales of the Rouge crossover and the Versa subcompact.
"Given the current economic challenges and the uncertainty associated with the upcoming presidential election, we do not anticipate that 2008 will be any more robust for the car business," Toprak told the Detroit Free Press.
Auto analysts are predicting that the lackluster end of 2007 will carry into 2008. The typical round of Holiday incentives failed to lure consumers into showrooms and resulted in a December sales decrease of 4%. While yet to be officially tallied, it is expected that 2007 auto sales slipped to about 16.1 million, the lowest volume since 1998.
During the past year, auto sales have been on the decline due to rising fuel costs, a slumping housing market and a general weakening of the economy. "A lot of these economic issues are continuing to put more pressures on the economy and the consumer as time goes on," Erich Merkle of IRN Inc. told the Detroit Free Press. In 2008, "most of the weakness is going to come in the first half or perhaps the first nine months of the year. So there is not going to be much to write home about."
Of the six leading automakers, it is predicted that the domestic automakers will wind up with the worst December results. Bear Stearns analyst Peter Nesvold says that Ford could see as much as a 14% decline in December sales, due largely to weak sales of the Ford Taurus and Taurus X and the Mercury Sable. However, Ford's F150 pickup will remain as the best selling truck in the U.S.
Nesvold predicts that General Motors' December sales could slip by 14%, although a 30% reduction in fleet sales accounts for most of the lost sales. Despite the slip, Chevrolet is posed to be the best selling brand of the year.
Chrysler will also see a double-digit decline in December, mostly due to a strong December 2006. Its newly redesigned minivans are expected to bolster December sales, although the Dodge Caravan will likely be unseated as the best selling minivan by the Honda Odyssey.
However, Jesse Toprak, chief economist for the auto information Web site Edmunds.com, predicts that Japanese marques will fair much better in the month of December. He predicts that Toyota's sales will fall 3% with Honda's declining by about 1%. Nissan sales are expected to stay flat, thanks to strong sales of the Rouge crossover and the Versa subcompact.
"Given the current economic challenges and the uncertainty associated with the upcoming presidential election, we do not anticipate that 2008 will be any more robust for the car business," Toprak told the Detroit Free Press.
01-02-08, 09:27 AM
#2
Lead Lap
Thread Starter
Article
2008 Car Sales May Get Worse
New year, old problems for industry, experts say
January 1, 2008
Industry analysts predict a lackluster end to an already dismal year for automakers, likely the worst in nearly a decade.
Holiday discounts failed to bring consumers out of their funk, and December sales are expected to fall around 4%, which would bring the full-year total for U.S. auto sales to 16.1 million vehicles, the lowest volume since 1998.
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Sales have been hurt by consumer anxiety over gas prices, the housing crunch and the overall weakening economy.
Industry watchers warn that the 2008 auto sales performance could be even weaker.
"A lot of these economic issues are continuing to put more pressures on the economy and the consumer as time goes on," said Erich Merkle of IRN Inc. In 2008, "most of the weakness is going to come in the first half or perhaps the first nine months of the year. So there is not going to be much to write home about."
Bear Stearns analyst Peter Nesvold said in a recent note to investors that he is even more concerned about 2008 sales than he was a year ago, since consumer sentiment and employment levels are deteriorating. Nesvold said the country hasn't seen a meaningful downturn in auto sales in 15 years and is long overdue for one.
"In a nutshell, if consumers don't feel good about the world or employment is slipping, they tend to delay major expenditures such as a new house or car, if possible," he said.
December is Ford Motor Co.'s last chance to hold on to its longtime position as the No. 2 automaker by U.S. sales. Toyota Motor Corp., which outsold Ford by 15,000 vehicles in November, is on track to overtake Ford this year. Toyota leads in sales through 11 months by nearly 50,000 vehicles.
In other sales races:
• Chevrolet is poised to seize the spot as the top-selling brand.
• The Honda Odyssey is set to finish the year as the top-selling minivan, stealing the crown from the Dodge Caravan.
• Ford's F-Series and Toyota's Camry appear on track to remain the top-selling truck and car nameplates.
Robert Barry, an auto analyst with Goldman Sachs, predicts Ford's sales will fall 3% in December compared with a relatively weak December 2006. Barry said Ford is struggling because it's at a low point in its product cycle, with a major redesign of the F-150 pickup and a new crossover not due until next year. In the meantime, it's being hurt by aggressive incentive spending by Toyota and other rivals.
Nesvold predicts Ford's sales could fall as much as 12% in December, pointing out that the automaker's newly rebadged Ford Taurus and Mercury Sable sedans and Taurus X crossover have seen disappointing results all fall. But Nesvold said the Ford Edge crossover and Ford's smaller SUVs have held up well.
General Motors Corp. could see an even sharper decline of 14% because of a planned cutback in sales to rental fleets, Barry said. In a note to investors, Barry said he expects GM to cut fleet sales by 30% in December, the same amount the automaker cut fleet sales in November. The automaker has repositioned its Malibu sedan as a true consumer car. Ford also has been slashing sales to rental fleets all year to shore up resale value and brand image.
Barry said Chrysler LLC will likely see double-digit drops in December, particularly since the automaker's car sales shot up 48% last December thanks to brisk sales of the Chrysler Sebring and 300 sedans. Chrysler's newly redesigned minivans could significantly boost December sales, Nesvold said. But if they don't, analysts may have to lower their expectations for the vehicles.
Japanese automakers also are expected to see lower sales in December, particularly as the housing crunch dampens demand in California, their most important market.
Jesse Toprak, chief economist for the auto information Web site Edmunds.com, predicts Toyota's sales will be down 3% compared with last December -- before sales of the Prius gas-electric hybrid kicked off a 70% sales surge -- while Honda Motor Co.'s will fall 1%. Nissan Motor Co. will likely be flat, he said. Nissan has bucked the slow sales trend in recent months on the strength of its new Rogue crossover and Versa subcompact.
"Given the current economic challenges and the uncertainty associated with the upcoming presidential election, we do not anticipate that 2008 will be any more robust for the car business," he said.
New year, old problems for industry, experts say
January 1, 2008
Industry analysts predict a lackluster end to an already dismal year for automakers, likely the worst in nearly a decade.
Holiday discounts failed to bring consumers out of their funk, and December sales are expected to fall around 4%, which would bring the full-year total for U.S. auto sales to 16.1 million vehicles, the lowest volume since 1998.
Advertisement
Sales have been hurt by consumer anxiety over gas prices, the housing crunch and the overall weakening economy.
Industry watchers warn that the 2008 auto sales performance could be even weaker.
"A lot of these economic issues are continuing to put more pressures on the economy and the consumer as time goes on," said Erich Merkle of IRN Inc. In 2008, "most of the weakness is going to come in the first half or perhaps the first nine months of the year. So there is not going to be much to write home about."
Bear Stearns analyst Peter Nesvold said in a recent note to investors that he is even more concerned about 2008 sales than he was a year ago, since consumer sentiment and employment levels are deteriorating. Nesvold said the country hasn't seen a meaningful downturn in auto sales in 15 years and is long overdue for one.
"In a nutshell, if consumers don't feel good about the world or employment is slipping, they tend to delay major expenditures such as a new house or car, if possible," he said.
December is Ford Motor Co.'s last chance to hold on to its longtime position as the No. 2 automaker by U.S. sales. Toyota Motor Corp., which outsold Ford by 15,000 vehicles in November, is on track to overtake Ford this year. Toyota leads in sales through 11 months by nearly 50,000 vehicles.
In other sales races:
• Chevrolet is poised to seize the spot as the top-selling brand.
• The Honda Odyssey is set to finish the year as the top-selling minivan, stealing the crown from the Dodge Caravan.
• Ford's F-Series and Toyota's Camry appear on track to remain the top-selling truck and car nameplates.
Robert Barry, an auto analyst with Goldman Sachs, predicts Ford's sales will fall 3% in December compared with a relatively weak December 2006. Barry said Ford is struggling because it's at a low point in its product cycle, with a major redesign of the F-150 pickup and a new crossover not due until next year. In the meantime, it's being hurt by aggressive incentive spending by Toyota and other rivals.
Nesvold predicts Ford's sales could fall as much as 12% in December, pointing out that the automaker's newly rebadged Ford Taurus and Mercury Sable sedans and Taurus X crossover have seen disappointing results all fall. But Nesvold said the Ford Edge crossover and Ford's smaller SUVs have held up well.
General Motors Corp. could see an even sharper decline of 14% because of a planned cutback in sales to rental fleets, Barry said. In a note to investors, Barry said he expects GM to cut fleet sales by 30% in December, the same amount the automaker cut fleet sales in November. The automaker has repositioned its Malibu sedan as a true consumer car. Ford also has been slashing sales to rental fleets all year to shore up resale value and brand image.
Barry said Chrysler LLC will likely see double-digit drops in December, particularly since the automaker's car sales shot up 48% last December thanks to brisk sales of the Chrysler Sebring and 300 sedans. Chrysler's newly redesigned minivans could significantly boost December sales, Nesvold said. But if they don't, analysts may have to lower their expectations for the vehicles.
Japanese automakers also are expected to see lower sales in December, particularly as the housing crunch dampens demand in California, their most important market.
Jesse Toprak, chief economist for the auto information Web site Edmunds.com, predicts Toyota's sales will be down 3% compared with last December -- before sales of the Prius gas-electric hybrid kicked off a 70% sales surge -- while Honda Motor Co.'s will fall 1%. Nissan Motor Co. will likely be flat, he said. Nissan has bucked the slow sales trend in recent months on the strength of its new Rogue crossover and Versa subcompact.
"Given the current economic challenges and the uncertainty associated with the upcoming presidential election, we do not anticipate that 2008 will be any more robust for the car business," he said.
01-02-08, 10:22 AM
#3
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I can tell you that Subaru is really hurting. While Impreza sales are up, everything else is down. I think it has to do with fuel economy. Before the EPA changed testing procedures the most efficient Subaru was the Legacy 2.5i, avering 26.5 mpg. Now its down to 23.5mpg. Subaru won't even be able to meet the 25 mpg CAFE standards. And poor fuel economy is very enticing with oil hitting $100 a barrel.
01-02-08, 12:49 PM
#7
Lead Lap
Thread Starter
Speaking of Diesels (posting here since we do not have #s yet)
Big 3 Lookin to Diesels
With the recently passed CAFE standards, domestic automakers are looking to new technologies to help them achieve the mandated 35 mpg by 2020. Despite the fuel economy gains of a hybrid vehicles, diesel powertrains could be shaping up to be the most viable option for the Big Three to meet the new requirements.
While diesel-powered vehicles currently make up only about 3.2% of the light vehicle market, that number is expected to grow in the coming years. J.D. Power and Associates predicts that diesel sales will climb to 1.27 million units by 2012 and will make up 15% of the market by 2018.
"If we have to get 35 miles per gallon by 2020, we can't maintain the current makeup of the fleet," said Mike Omotoso, J.D. Power's senior manager of global powertrain. "With continuing high gas prices, consumers are looking for vehicles with good fuel economy, and that's where diesel can deliver." Diesel powertrains can improve a vehicles fuel economy by about 30%.
General Motors, Ford and Chrysler all have plans to use a diesel powerplant in their light-duty pickup trucks, a plan that could soon spill over into their passenger cars.
However, diesels still have some hurdles to clear before they become mainstream. Most U.S. consumers still view diesels as the loud, dirty and slow engines from the 1970s and 80s — the exact opposite of modern clean diesels.
Diesels will also have to overcome the price difference with their gasoline counterparts. Though diesels do command about a $1,655 premium over gas models, that cost can quickly be made up in fuel savings. According to The Detroit News, if you were to drive a diesel 12,000 miles per year, it would take less than four years for the diesel option to pay for itself. In contrast, it would take more than 10 years for a $5,000 hybrid option to pay for itself.
Look for diesel technology to first emerge in trucks and SUV, where the most gains can be made. "The market is ripe, the question will be consumer confidence," John Pinson, GM's group manager of diesel engineering, told The Detroit News. "You start with the engines that consume the most fuel, big pickups and SUVs, where the payoff for the customer is best."
With the recently passed CAFE standards, domestic automakers are looking to new technologies to help them achieve the mandated 35 mpg by 2020. Despite the fuel economy gains of a hybrid vehicles, diesel powertrains could be shaping up to be the most viable option for the Big Three to meet the new requirements.
While diesel-powered vehicles currently make up only about 3.2% of the light vehicle market, that number is expected to grow in the coming years. J.D. Power and Associates predicts that diesel sales will climb to 1.27 million units by 2012 and will make up 15% of the market by 2018.
"If we have to get 35 miles per gallon by 2020, we can't maintain the current makeup of the fleet," said Mike Omotoso, J.D. Power's senior manager of global powertrain. "With continuing high gas prices, consumers are looking for vehicles with good fuel economy, and that's where diesel can deliver." Diesel powertrains can improve a vehicles fuel economy by about 30%.
General Motors, Ford and Chrysler all have plans to use a diesel powerplant in their light-duty pickup trucks, a plan that could soon spill over into their passenger cars.
However, diesels still have some hurdles to clear before they become mainstream. Most U.S. consumers still view diesels as the loud, dirty and slow engines from the 1970s and 80s — the exact opposite of modern clean diesels.
Diesels will also have to overcome the price difference with their gasoline counterparts. Though diesels do command about a $1,655 premium over gas models, that cost can quickly be made up in fuel savings. According to The Detroit News, if you were to drive a diesel 12,000 miles per year, it would take less than four years for the diesel option to pay for itself. In contrast, it would take more than 10 years for a $5,000 hybrid option to pay for itself.
Look for diesel technology to first emerge in trucks and SUV, where the most gains can be made. "The market is ripe, the question will be consumer confidence," John Pinson, GM's group manager of diesel engineering, told The Detroit News. "You start with the engines that consume the most fuel, big pickups and SUVs, where the payoff for the customer is best."
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01-02-08, 01:08 PM
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The problem with diesels is that diesel fuel so damn expensive in many parts of America. Especially during the winter. Regular is $3.00 here vs. the $3.79 for diesel. Not appealing.
01-02-08, 02:57 PM
#9
Moderator: LFA, Clubhouse
This is why luxury diesels aren't taking off here like they are in Europe. In many countries there, the price of diesel is 30-50% cheaper than the high-octane gas you'd have to use otherwise. In the US, it's actually more expensive.
01-02-08, 03:20 PM
#10
Lead Lap
Thread Starter
Last Time I Looked
Diesels were about $.40 more than regular but only about $.10 more than 93 octane which I am used to getting - so I can swallow $1.50 per fill up if it means more MPG & torque. I just need to drive one so I can see if there are any drawbacks like noise, smell, ride quality ...
01-02-08, 05:51 PM
#12
Lexus Fanatic
(Never mind the fact that you may ALREADY be paying a state sales tax when you buy the vegetable oil).
01-02-08, 05:55 PM
#13
Lexus Fanatic
That's because the EPA forced low-sulfur diesel fuel on the American public last year. It DOES help to reduce diesel emissions, quite a bit, but, as you note, it is more expensive to produce than conventional diesel fuel.
01-02-08, 10:30 PM
#14
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01-03-08, 08:48 AM
#15
Super Moderator
Audi
Audi Sets U.S. Sales Record
- Audi sales during 2007 top 93,500, up 3.8%
- Audi dealers increased sales in key markets
- Three all-new vehicles aided Audi's growth: Audi TT, S5 and R8
- Audi CPO sales highest ever
- More all-new vehicles and technology coming in 2008
AUBURN HILLS, Mich., Jan. 3 /PRNewswire/ -- Audi of America, Inc. set a
sales record in the U.S. during 2007, according to the company. Audi
dealers sold 93,506 new vehicles during 2007, up 3.8% over 2006, which will
aid Audi globally as the company has its sights set on a record year.
During 2007 Audi made significant gains in key markets, including New
York (+14.9 %), Miami (+6.6 %), and Los Angeles (+12.9 %).
Audi's growth, both in the United States and globally, has been fueled
by a strong and growing portfolio. Audi introduced the all-new TT coupe and
roadster vehicles during the spring, and then followed during the fall with
the all-new Audi S5 sports coupe. And Audi was one of the most talked about
brands throughout 2007 as the industry and customers awaited the September
market introduction of the Audi R8, the all-new, high-performance sports
car.
Audi dealers continued to report strong sales in 2007 of the Audi Q7
sport utility vehicle, the A4 cabriolet and RS 4 high-performance sedan.
Audi dealers also recorded record Certified Pre-Owned (CPO) sales for
December and the year. CPO sales hit a record all-time high during December
with 2,889 units. Total year CPO sales were 27,058, up 10.1%.
Dealer investment in the brand continued on a strong pace during 2007.
Audi added 10 exclusive dealerships during 2007, raising the total to 110
throughout the U.S. Exclusive dealerships offer customers a dedicated Audi
sales experience.
Parent company AUDI AG in Germany recently announced plans to invest
nearly $15.9 billion (EUR 10.6 billion) between 2008 and 2012, of which
$11.9 billion (EUR 7.9 billion) will be earmarked for product development.
Annual investments in product development will remain steady at around $3
billion (EUR 2 billion) per year, which will aid in achieving the brand's
stated goal of being the most successful premium brand by the year 2015.
Quotes that can be attributed to Johan de Nysschen, Executive Vice
President, Audi of America:
"2007 was an exciting year for Audi, both here in the U.S. and
globally. Audi dealers set record sales around the world, and it's clear to
me that more and more customers are putting Audi on their 'must-see'
shopping list."
"Audi will continue to be the brand to watch during 2008, and you're
going to hear us talk about 'all-new' quite a bit."
"We'll introduce the all-new Audi A5 coupe this spring. Then we'll
introduce the all-new Audi A4, our highest volume model line. It arrives at
dealerships this fall in both the sedan and Avant style. And as we approach
the end of the year, we will see the all-new Audi Q5 mid-size sport
utility, which I think will be the most beautiful and sophisticated
performance- oriented mid-size SUV on the market."
"The phrase 'all-new' can be applied to our technology, and that means
the introduction of a newly available engine for the Audi Q7 SUV. By the
end of 2008, customers can order the Q7 with the 3.0 TDI. This is a diesel
engine that is 50-State emission compliant. It offers power comparable to a
V8 gasoline engine, but with better fuel economy than most V6 gasoline
engines. There is no reason for customers to sacrifice performance in order
to feel good about the vehicle that they drive."
SOURCE Audi of America, Inc.
- Audi sales during 2007 top 93,500, up 3.8%
- Audi dealers increased sales in key markets
- Three all-new vehicles aided Audi's growth: Audi TT, S5 and R8
- Audi CPO sales highest ever
- More all-new vehicles and technology coming in 2008
AUBURN HILLS, Mich., Jan. 3 /PRNewswire/ -- Audi of America, Inc. set a
sales record in the U.S. during 2007, according to the company. Audi
dealers sold 93,506 new vehicles during 2007, up 3.8% over 2006, which will
aid Audi globally as the company has its sights set on a record year.
During 2007 Audi made significant gains in key markets, including New
York (+14.9 %), Miami (+6.6 %), and Los Angeles (+12.9 %).
Audi's growth, both in the United States and globally, has been fueled
by a strong and growing portfolio. Audi introduced the all-new TT coupe and
roadster vehicles during the spring, and then followed during the fall with
the all-new Audi S5 sports coupe. And Audi was one of the most talked about
brands throughout 2007 as the industry and customers awaited the September
market introduction of the Audi R8, the all-new, high-performance sports
car.
Audi dealers continued to report strong sales in 2007 of the Audi Q7
sport utility vehicle, the A4 cabriolet and RS 4 high-performance sedan.
Audi dealers also recorded record Certified Pre-Owned (CPO) sales for
December and the year. CPO sales hit a record all-time high during December
with 2,889 units. Total year CPO sales were 27,058, up 10.1%.
Dealer investment in the brand continued on a strong pace during 2007.
Audi added 10 exclusive dealerships during 2007, raising the total to 110
throughout the U.S. Exclusive dealerships offer customers a dedicated Audi
sales experience.
Parent company AUDI AG in Germany recently announced plans to invest
nearly $15.9 billion (EUR 10.6 billion) between 2008 and 2012, of which
$11.9 billion (EUR 7.9 billion) will be earmarked for product development.
Annual investments in product development will remain steady at around $3
billion (EUR 2 billion) per year, which will aid in achieving the brand's
stated goal of being the most successful premium brand by the year 2015.
Code:
AUDI OF AMERICA: DECEMBER 2007 YEAR-END SALES
AUDI US SNAPSHOT -----YEAR TO DATE-----
Dec-07 Dec-06
Dec-07 Dec-06 Yr/Yr % YTD YTD Yr/Yr %
actual actual change actual actual change
A3 486 580 -16.2% 6,353 8,040 -21.0%
A4/S4/RS 4 3,832 6,747 -43.2% 37,894 42,694 -11.2%
A4/S4 Cabriolet 366 542 -32.5% 7,517 7,168 4.9%
S5 136 0 - 625 0 -
A6/S6 1,204 1,253 -3.9% 12,001 16,219 -26.0%
A8/S8 351 432 -18.8% 3,826 5,038 -24.1%
TT 484 22 2100.0% 4,355 954 356.5%
R8 70 0 - 240 0 -
Audi Q7 1,575 2,321 -32.1% 20,695 10,003 106.9%
Total 8,504 11,897 -28.5% 93,506 90,116 3.8%
President, Audi of America:
"2007 was an exciting year for Audi, both here in the U.S. and
globally. Audi dealers set record sales around the world, and it's clear to
me that more and more customers are putting Audi on their 'must-see'
shopping list."
"Audi will continue to be the brand to watch during 2008, and you're
going to hear us talk about 'all-new' quite a bit."
"We'll introduce the all-new Audi A5 coupe this spring. Then we'll
introduce the all-new Audi A4, our highest volume model line. It arrives at
dealerships this fall in both the sedan and Avant style. And as we approach
the end of the year, we will see the all-new Audi Q5 mid-size sport
utility, which I think will be the most beautiful and sophisticated
performance- oriented mid-size SUV on the market."
"The phrase 'all-new' can be applied to our technology, and that means
the introduction of a newly available engine for the Audi Q7 SUV. By the
end of 2008, customers can order the Q7 with the 3.0 TDI. This is a diesel
engine that is 50-State emission compliant. It offers power comparable to a
V8 gasoline engine, but with better fuel economy than most V6 gasoline
engines. There is no reason for customers to sacrifice performance in order
to feel good about the vehicle that they drive."
SOURCE Audi of America, Inc.
Last edited by Gojirra99; 01-03-08 at 08:53 AM.