Auto Sales Get Decimated In October – A Sign Of Things To Come?

The month of October was not friendly to most car manufacturers, as overall sales in the United States dropped 6%. This sharp drop can be attributed to volume sellers who saw declines that haven’t been posted in quite sometime. Is this a reason for concern moving forward? Is a slowing auto market going to be the new reality that manufacturers will face for at least the short term? New car sales have been slowing over the past few months, but October’s sudden drop in overall sales is nothing that should be taken lightly.

It should be noted that October of 2016 had two fewer selling days than October of 2015, but with some of the percentages that were posted, not even two extra selling days could change the outcome of a bleak new car market.

Fiat-Chrysler Massacre

It has not been a good year for the Fiat-Chrysler group, and October magnifies the downward trend in sales for most of the brands. Chrysler posted a decline of 44.7%, Fiat down 24.3%, Dodge -16.4%, and Jeep -6.6%. Three out of the four brands listed are down on the year for new car sales, while Jeep is still maintaining an increase of 9.7%. With Dodge ending the Dart and Chrysler no longer producing the 200, sales figures being down was to be expected, but for the auto group as a whole, there’s not much excitement for any of the brands, besides Dodge which produces the Challenger and Charger.

BMW, Volkswagen, Volvo and Land Rover Experience Sales Decline

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Volvo and Land Rover, two manufacturers who are both up on the year in new car sales in the United States, saw sharp declines in the month of October. Volvo, a brand that has been revived thanks to the all new S90 and completely redesigned XC90, experienced a 14.6% drop in sales. Land Rover saw a decline of 23.2% in October. Despite the sharp drop in sales in the United States, Volvo and Land Rover are still having a fantastic year overall, and shouldn’t be too concerned about the final quarter of the year, unless lower sales figures overall in the automotive market becomes a trend.

BMW may be the biggest surprise for lower volumes in sales, not only for October, but for the year of 2016. Down 18.4% last month, and down 9% for the year, BMW is the only brand out of the big three luxury manufacturers in Germany that has experienced declines. Mercedes Benz and Audi are still strong, and while sales were flat in October, the loss of two sales days could be a contributing factor. Volkswagen on the other hand has not recovered from Diesel Gate, and with a loss of 13.5% on the year and another double-digit loss last month, it just continues to get worse for the German auto brand.

Bentley, Jaguar, Maserati, and Porsche Have Strong October

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Not everyone is reeling from the October blues, there are car brands that had a fantastic month with Bentley, Jaguar, Maserati, and Porsche having double and even triple digit increases in sales. The British are leading the way and Jaguar’s 226% sales increase can be attributed to the F-Pace and XE, which have both taken their respective markets by storm. The F-Pace is Jaguar’s first attempt at making an SUV, and so far it has been a great success, while the XE, which is the British’s answer to the BMW 3 Series, is seeing strong sales since it’s arrival to the market earlier this year.

Bentley’s impressive gain of 158% in sales last month is all thanks to the Benteyga, which is Bentley’s first ever SUV. In October, the Benteyga contributed more than 33% of sales for the Bentley brand. While the British luxury car maker is down on the year by 6.8%, the entrance into the luxury SUV market has yielded strong sales figures, with the Benteyga making up about 50% of Bentley’s sales in the US since it’s debut on the market in August.

Maserati, much like Bentley and Jaguar, has seen strong sales numbers since entering the SUV market as well. The Levante, which also brought in about 33% of sales in October for Maserati, has received raved reviewed by journalists and consumers. Maserati has hit a home run with their luxury SUV, and that is starting to trickle down to other cars in the lineup. The Ghibli had a strong month alongside the Levante, leading to Maserati’s 11.8% increase in sales for the month of October.

Porsche had the best month out of all German brands in October, with luxury SUV’s again being the main contributor for strong sale. Up 10.7% in October and 3.2% for the year of 2016, Porsche has seen tremendous sales figures and it’s the Cayenne and Macan that is carrying the once sports car dominated lineup.

Strong sales across the board for luxury brands could be a good sign, despite the slowing of overall sales in the market. While Fiat-Chrysler, BMW, Volvo, and many others struggled in October, there’s no reason to panic just yet. If the fourth quarter of 2016 continues a downward trend and that transitions into the new year, then there would be a legitimate reason for concern. As for right now, we can only hope that October isn’t the start of a trend, and that the holiday season and the incentives that come with it could motivate consumers to buy in November and December.

Mazda: The Face Of A New Trend In The Auto Industry

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AlBargan / Foter / CC BY-ND

The past five to ten years for the auto industry has seen countless innovations and changes, from cars being more economical, smaller SUV’s, to auto manufacturers changing their identity to keep up with the times. Mazda is one of many manufacturers who changed their lineup to appeal to all generations with their new designs and models that range across the spectrum of the auto world. A company that was primarily sports car driven with the Miata and RX-7, is now continuously finding ways to add on to what they’ve built in the past decade.

The Mazda 3, Mazda 6, CX-5, and CX-9 have created a solid foundation for the Japanese auto maker to build on. The 3 and 6 are beginning to compete against tough competition, as sedans priced between $20,000 – $30,000 have become extremely competitive. Because of this, auto brands are releasing some of the best looking cars in the segment. The Chrysler 200, Ford Focus and Fusion, Honda Civic and Accord, Subaru Impreza and Legacy, and Mazda’s 3 and 6 might just be the most options consumers have ever had in the compact to mid-size sedan segment. With that being said, a new trend in the auto industry is here, and you can thank the Germans for that.

Mercedes Benz, Audi, and BMW are in a battle of their own, fighting for position and dominating the smaller luxury car market. This fight for a majority stake in the $30,000 – $40,000 range has trickled down to companies who primarily sell cars $10,000 cheaper. Chrysler, Ford, Honda, Subaru, Mazda, and Hyundai know that if they don’t start jockeying for position in their respected segment, they’ll become victims to the big three in Germany. Consumers are beginning to see the opportunities that BMW, Audi, and Mercedes Benz have opened up and are now buying A3’s, CLA’s, and BMW X1’s. After two strong years for the Germans, the other auto manufacturers have had to throw a few punches of their own.

Think about it. Did you ever think you’d see the day when a Honda Fit or Civic would have a touch screen in their dashboards? Mazda’s, Subaru’s, and Hyundai’s are looking more high class which is making the consumer very bold in this segment. Four-door sedans, hatchbacks, and crossovers are the new, hot toys on the market. Sports cars are seeing a decline in sales, and despite lower gas prices, consumers aren’t buying bigger SUV’s like they once did.

We are going to continue seeing the auto industry changing, but for the better. Right now, as consumers, we’re like kids in a candy store and the auto manufactures continue coming out with new things to try. Mazda is about to unleash the new CX-3 which will take a bite in the small crossover segment, Honda is still going strong with the models they’re selling, Subaru continues to change their model’s appearances to entice buyers, Ford is pushing the Titanium trims of the Focus and Fusion, and Chrysler’s 200 not only looks classy, but now offers a V-6 engine under the hood that supplies 295 HP.

This is an amazing time to be in the market for a car. You can buy new or used, or lease which will put you behind the wheel of these new cars. Best of all, dealerships are offering great lease deals, especially around the holidays. Heading into 2015, you don’t have to own a BMW, Audi, or Mercedes Benz to drive a nice a car that provides luxury and a quiet interior.

Are Sports Cars Becoming A Thing Of The Past?

Er hat bestimmt eine tolle Klimaanlage.
ingrid eulenfan / Foter / CC BY-NC-SA

As we’re heading into the fifteenth year of the new millennium, the automotive world has changed quite a bit from twenty years ago. Sedans have more powerful engines, which means more horsepower, smaller SUV’s and crossovers can be found in almost every car manufacturer lineup, and technology in both the engine and the interiors of vehicles have now taken precedence over power. When it comes to the traditional sports car, is their time coming to and end? BMW’s Sales Chief Ian Robertson thinks so.

“The sports car market is roughly half of what it used to be,” Robertson told Bloomberg. “Post-2008, it just collapsed—I’m not so sure it’ll ever fully recover.”

To keep his comment in context, he’s not referring to the exotic luxury sports car market that includes Ferrari and other premium brands. Two-door coupes in general have been waning, and to take their place, sedans which used to be seen as for the average adult, now have sports packages that certainly would make a consumer question the long term value of buying a coupe.

Two-door coupes really aren’t that practical for families, or young adults who want to drive their friends around town. There’s less carrying capacity for both people and groceries which could definitely be a hassle if you’re moving into a dorm or shop frequently. Looking at how the automotive world has evolved over the past decade there are certainly better options out there for the average consumer.

Hatchbacks and sedans today offer everything the car enthusiast and everyday driver wants from a car. Cargo space, seating capacity, and more importantly stronger engines with more horsepower. While some would say sports car have a better center of gravity and can take turns better, how important is that to people who just want to get from Point A to Point B?

Sports cars have been on the downward trend. However, while the sports car market is slowing down for automakers, Ford, GM, and Dodge have re-introduced the muscle car to the American driver. Ford’s new Mustang that has the body style of the 1960’s, Dodge’s Charger and Challenger Hellcats that pack a whopping 707 horses, and Chevy’s Camaro are all grabbing the attention of sports car drivers. But other than the Americans, many car companies have turned their focus to serving the consumer who wants a four-door.

Even Porsche has slightly strayed from their identity as they’ve come out with to SUV’s and the four-door Panamera. Volkswagen is discontinuing their Eos, Volvo stopped producing the C30 and C70, Mazda has no plans to remake an RX-8, Chrysler is putting more focus on the 200 sedan rather than the coupe which they do offer, BMW is adding a four door to their 4series, and Audi has released sketches of a four-door TT. The trend in the automotive market is moving towards sedans and SUV’s, and whether that has anything to do with the fact that they’re more practical, or manual transmissions (which are usually found on sports cars) are becoming a thing of the past, we can’t lie to ourselves and think that Ian Robertson is wrong.

As I said before, he wasn’t saying anything about the exotic sports car market which is seeing strong sales numbers; he’s referring to the market that BMW is in. Consumers want smaller four-door cars, and that’s what we’re seeing car companies building. While Ian Robertson might be right about the sports car market, the four-door sedans of today have that sports car identity built in them that makes the Dodge Charger, Chrysler 200S, Audi S4, and the Lexus IS-F very popular cars.

Has Italian Ownership Changed The Chrysler Group For The Better?

2015 Dodge Challenger SRT (left) and Dodge Challenger SRT Supercharged (right)
Chrysler Group / Foter / CC BY-NC-ND

When Italians and Americans come together the end result is usually awesome, and Fiat-Chrysler is no exception. What has transpired over the past few years for the American manufacturer is a combination of the first three Rocky films, as Chrysler was this beat-up, almost irrelevant company, and in a matter of a few short years has become a force to be reckoned with. While Chrysler is changing the definition of American luxury, Dodge has become the automotive world’s version of Rocky Balboa; two tons of Italian-American muscle that has redefined what muscle cars are.

Starting with the Dodge Challenger Hellcat, clearly Italian influence is making its impact as the new muscle car now has a 707 hp engine, which makes it the most powerful American muscle car ever manufactured. But Dodge didn’t stop there, they’re now Hellcatting the Charger, which just like it’s brother, will be the most powerful four-door sedan sports car to come out of America. While Dodge’s SRT department retains the credit for creating the two beasts, Italian ownership clearly had some input on the power. Seeing that Fiat owns Ferrari and Alfa Romeo, they’ve incorporated Italian engineering with American muscle which has spawned two sports cars that’s making the Dodge Viper obsolete and forgotten.

By 2016, we’ll also have an SRT Dodge Dart which is certainly going to draw some attention, as smaller, powerful four-door compacts are becoming a trend. Even though the company is still Dodge, you can’t help but feel that it’s becoming an Italian car more than American, which is a good thing. The Chrysler group needed a push in the right direction, and by having a luxury manufacturer in Chrysler, and now what appears to be the performance division in Dodge, there is the right balance that’s boosted sales throughout the year.

Jeep on the other hand is becoming Fiat’s extended arm, as the new Jeep Renegade will be based off the Fiat Panda, a vehicle we don’t get here in the United States. The Jeep Cherokee has definitely been Italian-ized with that new, European look. It’s been recently reported that Jeep claimed Trackhawk as their performance name, raising speculation that we might see a Hellcat-like SUV that may change the perception consumers have on SUV’s in general.

Right now things couldn’t be better for the Chrysler group. They’re producing vehicles consumers want, spanning across multiple age groups that’s reshaped their customer base, and becoming more like a European auto manufacturer than American. Their new image of being young, fun, with a dose of luxury has certainly changed how Americans see the Chrysler group, and they’re now seeing strong sales because of it.

Chrysler Sales Rise 17% in May as Jeep and Dodge are in Demand

Chrysler reported strong earnings in May, as Jeep, Fiat, and Dodge carried most of the momentum heading into June. Jeep sales alone rose 58%, Fiat up 18%, and Dodge Ram trucks up 17%. Surprisingly the Chrysler brand itself didn’t report any gains, in fact sales were down 22%. The hope is that the redesigned Chrysler 200 can reignite sales as it will be the first model to get a whole new makeover that will be present in all Chrysler vehicles.

The Dodge Journey and Dart both had a great month, putting together a 33% gain in May. The Challenger on the other hand barely managed a 4% increase in sales, as subtle changes to the body didn’t seem to phase consumers.

With GM having their own problems, this is great news for the Chrysler group as confidence in their brand appears to be growing. The Jeep Cherokee is a favorite among buyers as it brings it’s all-new design and reputation as being a strong and durable SUV.

It’s going to be interesting to see how the 2015 Dodge Charger will sell. After the Charger’s unveiling at the New York International Auto Show, it didn’t get a warm reception. Some consumers didn’t like the fact that Dodge basically put the body of the Dart on the chassis of a Charger, making the once fierce-looking four door sedan look tame.

Despite Chrysler being owned by Fiat for a few years now, the company is still evolving and making major changes to their lineups. If sales continue to grow, there will be a bright future for them as their five year plan heading into 2018 looks very promising.