Japan new car sales march 2012

Automotive Dealer - Japan new car sales march 2012 ; Sales of new cars, trucks and buses in Japan rose 78% in March from a year earlier, gaining for the seventh-straight month as government subsidies for fuel-efficient cars continued to drive demand.

A lower basis of comparison in the year-earlier period, when sales were down 37% as a result of the massive earthquake and tsunami on March 11, 2011, also helped cause the jump in sales last month.

Sales increased to 497,959 vehicles in the most recent month from 279,389 vehicles a year earlier, the Japan Automobile Dealers Association said on Monday.

The figures exclude sales of minicars and minitrucks.

The nation's domestic auto sales for the fiscal year ended March 31 came to 3.06 million vehicles, up 3.1%, as a surge in sales over the past few months helped to cancel out the negative impact of the March 2011 disasters and severe flooding in Thailand late last year.

Sales rose 32% in February and 41% in January. The government decided in December on a program to provide a total of ¥300 billion ($3.62 billion) of subsidies to spark sales of fuel-efficient cars, and will start accepting applications for subsidies of ¥70,000 ($845) or ¥100,000 a vehicle in April.

Those who buy fuel-efficient cars from Dec. 20 last year to the end of January next year will be eligible to apply.

The incentives will help make up for a drop in export production at factories in Japan, as the strong yen makes cars made in Japan relatively less competitive overseas. Although the dollar has strengthened against the yen recently, some industry executives have cautioned that the yen hasn't moved enough to take pressure off Japanese car makers.

The government measures are likely to underpin auto demand for fuel-efficient cars in the coming months, but some executives warn that current robust demand will likely cause the ¥300 billion incentive package to run out before the scheduled January expiration.

Hi royuki Honma, a Honda Motor Co. 7267.TO -0.47% senior marketing executive, said the program could end a few months ahead of schedule. Seiichi Ohta, an executive at Mitsubishi Motors Corp. 7211.TO +1.06% in charge of sales in Japan, said the termination could come even earlier—before autumn.

Toyota Motor Corp., Japan's biggest car maker by volume, sold 225,921 vehicles in March, about double the number a year earlier. Sales of Toyota's upscale Lexus brand rose 23% to 5,437 vehicles, according to the auto-dealers' association.

Nissan Motor Co.'s March sales rose 78% to 81,145 vehicles, while Honda said its sales increased 55% to 67,267 vehicles.

Spanish new car sales march 2012

Automotive Dealer - Spanish new car sales march 2012 ; New car sales in Spain fell 4.5 percent in March compared with a year earlier, industry data showed Monday, as consumers balked at making big purchases as the economy heads back into recession.

A total of 84,427 new cars were sold last month compared to 88,397 in March 2010, automakers' association Anfac said in a statement.

Total sales during the first quarter reached 204,119, a 1.9 percent drop over the same period in 2010 and the lowest level since 1993, it added.

The fall comes on the back of a 17.7 percent slump in new car sales during all of 2011 to 808,059 units.

Spain has seen private consumption, especially for big ticket items like cars, fall sharply since a property bubble collapsed in 2008 sending the jobless rate soaring to over 23 percent, the highest level in Europe.

The Spanish economy, the eurozone's fourth-largest, posted a second straight quarterly slump in the first quarter, the Bank of Spain said last week, meaning the country had slid back into recession barely two years after it emerged from the last one.

Spain's economy grew 0.7 percent in 2011 but is expected to contract by 1.7 percent this year.

US Toyota new car sales march 2012

Automotive Dealer - US Toyota new car sales march 2012 ; Toyota Motor Corp. (7203)’s U.S. sales of Prius hybrids reached a record in March and in the first quarter, propelled by higher gasoline prices and two new models.

Toyota, the largest seller of gasoline-electric autos, sold more than 25,000 units in March of the Prius “family” now comprised of a plug-in Prius and c subcompact, along with the original hatchback and v wagon, Bob Carter, group vice president of U.S. sales, said in an e-mail yesterday. The previous monthly best for Prius was May 2007, when it delivered 24,009 units.

The fast start for the world’s top-selling alternative powertrain car keeps Toyota on track to meet a goal of 220,000 Prius sales in the U.S. this year, up from 136,463 in 2011. The vehicle accounts for half of U.S. hybrid sales, and a shortage of the car last year due to Japan’s earthquake and tsunami cut industrywide deliveries to about 273,000 units from about 275,000 a year earlier, according to data compiled by Bloomberg.

“At this pace, and with the recovery in the U.S. economy, Toyota’s target for Prius sales looks fairly doable,” said Takashi Aoki, senior fund manager at Mizuho Asset Management Co. in Tokyo. “Toyota’s move to raise the price of their bigger Prius models is a good sign that the company is trying to make the models more profitable, too,” Aoki said, citing the carmaker’s price increase of its Prius wagon version.

First-Quarter Record

Hybrid sales typically track the cost of gasoline, rising in line with pump price increases. Regular grade gasoline cost an average of $3.93 (3AGSREG) a gallon on April 1, up from $3.28 at the end of last year, according to AAA’s Daily Fuel Gauge.

“Fuel economy remains a top purchase consideration among consumers, and we are pleased with the continued response to Toyota’s lineup,” Carter said in the e-mail.

Shares in Toyota fell 1 percent to 3,530 yen as of 10:21 a.m. in Tokyo trading. American depositary receipts fell 0.1 percent to $86.69 yesterday in New York.

Prius and the Prius c are rated as delivering an average of 50 miles (80 kilometers) per gallon in combined city and highway driving by the U.S. Environmental Protection Agency. The Prius v wagon averages 42 mpg and the plug-in Prius, able to go as far as 15 miles on electricity alone, is rated as getting 95 mpg- equivalent when drivers frequently recharge the lithium-ion battery pack, according to the EPA.

First-quarter Prius sales surpassed 57,000, based on the company’s estimate for March. The model’s best previous quarter was April-June 2007, said Celeste Migliore, a spokeswoman for the company’s U.S. sales unit in Torrance, California.

Toyota and other automakers report complete sales results for March later today. The Toyota City, Japan-based company may report a 15 percent increase in sales from a year ago, the average estimate of seven analysts surveyed by Bloomberg News.

South Korea new car sales march 2012

Automotive Dealer - South Korea new car sales march 2012 ; South Korea’s automobile sales jumped 14.1% in Q-1 from a year earlier as weak domestic demand was offset by brisk sales in overseas markets, local carmakers said Monday.

Global car sales by the nation’s 5 automakers, including Hyundai Motor, Kia Motors, GM Korea, Renault Samsung Motors and Ssangyong Motor, reached 2,035,317 vehicles during the January- March period, up 14.1% over the same period of last year.

Domestic sales by the 5 carmakers shrank 7.3% on-year to 329,522 units in the first quarter due to weak demand caused by higher oil prices, but overseas sales, including cars exported from South Korea and vehicles assembled in overseas plants, expanded 19.5% to 1,705,795 units.

By company, global car sales by Hyundai Motor (PK:HYMTF) reached 1,066,660 vehicles in Q-1, up 16.4% from a year before. Local sales contracted 7.1% to 154,885 units over the cited period, but exports surged 21.6% to 911,805 units.

Global sales by Kia Motors (PK:KIMTF) came in at 691,691 units in the 3 months ended 31 March, + 11.7% from the same period of last year. Domestic sales retreated 7.4% to 116,272 units over the cited period, but overseas sales rose16.6% to 575,419 units.

GM Korea logged sales growth both at home and abroad. Global sales by the South Korean unit of General Motor (NYSE:GM) came in at 206,167 vehicles in the first quarter, up 30.2% from the previous year. Domestic sales jumped 28.2% to 31,842 units, with exports growing 30.6% to 174,325 units.

Global sales by Ssangyong Motor (N/A) grew 6.9% on-year to 26, 441 units in Q-1, but those by Renault Samsung Motors fell 30.4% to 44,358 vehicles. Renault Samsung’s (PK:RNSDF) domestic sales tumbled 40.8% to 16,853 units over the cited period, and overseas sales also fell 22% to 27,505 units.

French new car sales march 2012

Automotive Dealer - French new car sales march 2012 ; French new car registrations fell for the fifth consecutive month year-on-year in March, with PSA Peugeot Citroen (PEUP.PA) and Renault (RENA.PA) continuing to lose ground to Germany's Volkswagen (VOWG_p.DE) on their home turf.

Sales tumbled 23.5 percent to 197,033 vehicles, while light commercial vehicle registrations fell 12.2 percent to 36,493 last month, the CCFA automakers' association said on Monday. Overall light vehicle sales dropped 21.9 pct.

"This decline is spectacular but it was expected," said Flavien Neuvy, head of credit provider Cetelem's autos research unit. "We think nevertheless that the bulk of the drop for the year has been done in the first quarter."

The CCFA stuck to its forecast for the French auto market to contract by 8-10 percent this year.

"Today this range is still valid," CCFA President Patrick Blain told a news conference. "If we do minus 7 percent in the last three quarters, which is not absurd, we can achieve it."

Paris-based PSA Peugeot Citroen, Europe's second-biggest automaker after Volkswagen, posted a 33 percent decline to 59,290 car deliveries last month, while smaller domestic rival Renault suffered a 30 percent drop to 42,908.

The Volkswagen group's French new car sales fell a more modest 11.9 percent as it won business from rivals with aggressive pricing on models such as the Polo subcompact.

For the first quarter, the Volkswagen group's market share rose to almost 14 percent from 11.2 percent a year earlier, while PSA and Renault each shed more than 2 percentage points.

Shares in PSA and Renault were the biggest fallers on the French blue-chip CAC 40 index .FCHI, closing down 3.3 percent and 1.3 percent respectively.

Renault's commercial director for France, Bernard Cambier, said orders had rebounded last month, up 6 percent after drops of 8 percent and 9 percent in January and February, reaffirming the market forecast for the year.

"Overall, the auto market is falling a bit more than people had predicted," he said. "But generally, we remain fixed on a decline of the order of 10 percent in the market in 2012."

Along with France's carmakers, Fiat's (FIA.MI) sales suffered from the withdrawal of French government scrapping incentives that had boosted small-car deliveries through March 2011. The Italian brand posted a 41 percent sales decline to 4,588 new car registrations last month.

German premium automakers, meanwhile, also outperformed the French market, with BMW (BMWG.DE) brand car sales advancing 1.2 percent in March and Daimler's (DAIGn.DE) Mercedes brand recording a 29 percent gain.

Italy new car sales march 2012

Automotive Dealer -Italy new car sales march 2012 ; Italian new-car registrations fell 27% in March as the recession and tough government reforms including higher taxes prompted consumers to postpone big purchases, with Fiat SpA (F.MI, FIATY) describing the result for its home market as the worst showing for the month in 32 years.

Registrations in Europe's third-biggest car market totaled 138,137 units against 188,495 for the same month last year, according to data published by the transport ministry Monday.

The drop was worse than the one registered in France, which declined 24%. It was also worse than the drops recorded in Italy in the previous months: registrations fell 19% in February and 17% in January.

For the quarter, the total number of new cars registered in the country dropped 21% to 406,907 units.

Fiat, whose chief executive had spoken of a "horrible" month last Friday, had nearly 36,000 cars of one or another of its various brands registered during the month, giving it a 26.03% share of the total, below its benchmark 30%.

Among its brands, Fiat fell 36% to 24,900, Lancia dropped 29% to 6,490, and Alfa Romeo tumbled 46% to 3,889.

Volkswagen AG (VOW.XE, VLKAY), its closest rival by market share, fell 23% to 12,353.

UNRAE, the association of foreign manufacturers, blamed the drop on the difficulty of obtaining credit and higher taxes imposed by the government of Prime Minister Mario Monti.

Although a hauliers' strike in Italy lasted for most of the month, an UNRAE official said its effect would be felt the most in April.

Fiat and other auto makers elsewhere in Europe are facing a dire year as a result of the sovereign-debt crisis. It has also forced France's PSA Peugeot Citroen (UG.FR, PEUGY) of France and General Motors Co. (GM) of the U.S. to enter into a partnership to save on costs. GM is also considering plant closings at its Opel unit.

india new car sales march 2012

Automotive Dealer - india new car sales march 2012, Maruti Suzuki India car sales march 2012, Hyundai car sales march 2012 ; India’s top car makers posted higher March auto sales as customers bought in anticipation of this month’s price increases and as demand for diesel vehicles continued to grow.

Several auto makers have recently increased vehicle prices after Finance Minister Pranab Mukherjee on March 16 raised the base excise tax on most Indian-made goods, including automobiles, to 12% from 10%.

Sales at Maruti Suzuki India Ltd. gained for a third straight month, touching 125,952 vehicles, up 3% from a year earlier. Local sales for India’s biggest car maker by sales increased 2% to 112,724 units and exports jumped 15% to 13,228 vehicles.

It was the auto maker’s best-ever monthly sales performance, thanks to demand for models such as the Ritz and Swift hatchbacks and the Swift DZire sedan, which are also available in diesel variants. Sales of gasoline cars such as the Alto and WagonR fell.

Consumer preference is shifting toward diesel vehicles as prices of the fuel are regulated by the government, making it cheaper than gasoline. Overall demand has been hit by rising interest rates and fuel prices.

Maruti anticipates a 6% fall in sales of gasoline models in the new fiscal year that started on April 1, its chairman R.C. Bhargava said on March 24.

Hyundai Motor Co., the second-ranked car maker in India, sold 59,229 vehicles in March, up 7% from a year earlier.

Local sales grew 23% to 31,882 units. But exports fell 16% to 23,730 units as more production facilities were utilized for the domestic market, said Arvind Saxena, director of marketing and sales at Hyundai’s local unit, which makes car models such as the i10, i20 and Verna.

Ford Motor Co.’s local unit, which makes the Figo small car and Fiesta sedan, said it posted its highest-ever monthly volume of 12,148 units in March.

The local unit of General Motors Co., meanwhile, recorded a 13% increase in March sales to 10,588 vehicles, helped by robust sales of its Chevrolet Beat hatchback and the Tavera utility vehicle.

Sunday, Tata Motors Ltd. said it sold 100,414 vehicles in March, up 20%, while Mahindra & Mahindra Ltd., India’s biggest sport-utility vehicle maker sold 47,001 units, up 25%.

In the two-wheeler segment, sales of market leader Hero MotoCorp Ltd. rose 2.4% in March to 528,290 vehicles.

Pawan Munjal, Hero MotoCorp’s managing director and chief executive, said the company is set to start exports to markets in Africa, Latin and Central America in a few months.

He also said the company is expanding capacity at its plants to make 7.0 million vehicles a year and will also announce plans later this year about building new factories.

Two- and three-wheeler maker TVS Motor Co. Monday said sales fell 4% to 182,527 vehicles.

Honda prices Acura ILX to lure Gen-Y buyers from BMW, Audi

Automotive Dealer - Honda prices Acura ILX to lure Gen-Y buyers from BMW, Audi ; Honda Motor Co., seeking a 46 percent jump in U.S. Acura brand sales this year, priced a new “near premium” compact sedan to attract car buyers in their 30s and keep them out of competing BMW and Audi models.

The 2013 ILX which goes on sale in May starts at about $27,000 in the U.S. It’s aimed at older “Generation-Y” customers who aspire to own a luxury vehicle and have limited income, Jeff Conrad, vice president of Honda’s Acura unit, said this month. Honda’s U.S. sales target is 40,000 annually of the ILX, which shares underpinnings with the Civic compact.

The target “seems pretty ambitious,” because younger drivers have been hurt the most by weakness in the job market since 2008, said Jessica Caldwell, an analyst for researcher Edmunds.com. “It’s a bit risky aiming your new vehicles at this group is that’s basically falling off the map.”

Acura was the first U.S. premium brand from an Asian carmaker. Sales have been volatile, peaking at 209,610 in 2005 before plunging to 105,723 in 2009. The company sold 123,299 Acuras in the U.S. last year, less than half the 247,907 luxury vehicles sold in the U.S. by Bayerische Motoren Werke AG’s BMW, No. 1 seller last year of luxury cars and trucks.

Honda says the recession left consumers more cost-conscious and potentially open to Acura vehicles that sell for less than BMW, Volkswagen AG’s Audi and Toyota Motor Corp.’s Lexus. Honda wants to raise total Acura U.S. sales to 180,000 vehicles this year.

‘Gateway’ Model

“They are making more-rational purchase decisions within the luxury category,” Conrad told reporters in Scottsdale, Arizona, this month. Both the ILX and new 2013 RDX compact sport-utility vehicle which goes on sale in April are for people with “aspirational goals, but affordability is an issue.”

Along with ILX, the company is targeting annual sales of 30,000 RDX SUVs annually. Next week, Acura also will show a revamped large sedan at the New York auto show that will replace the current RL late this year, followed by a new NSX supercar due in about two years.

“The ILX will act as the gateway to the Acura brand,” said Lee DaSilva, a senior product planner for Tokyo-based Honda.

A median Acura buyer is 49, male and married, according to San Diego-based Strategic Vision, a consumer research company. The median age for all luxury auto buyers is 56, said Alexander Edwards, president of Strategic Vision’s automotive practice.

Audi and Nissan Motor Co.’s Infiniti attract a slightly younger customer, with a median age of 48. Lexus buyers have a median age of 58, according to Strategic Vision.

With ILX, Acura will offer four sedans, including the $29,810 TSX, $35,605 TL and $47,700 RL, Conrad said. There are no plans to discontinue any of those models, he said.

ILX Options

The base ILX has a 2-liter, 4-cylinder engine with standard “connectivity” features including Bluetooth, Pandora and text messaging function. For about $30,000, buyers can choose a 2.4- liter, sport version or 1.5-liter, hybrid ILX, Conrad said.

The car is positioned against small models, including Audi’s A3 hatchback, General Motors Co.’s new Buick Verano sedan and Lexus’ CT 200h hybrid hatchback, Conrad said. Base prices for are $27,270 for the A3; $23,470 for Verano; and $29,120 for the CT 200h, according to company websites.

The ILX will be built at Honda’s Greensburg, Indiana, plant and arrives at dealerships May 25, the company said. The factory also assembles Civic compacts. The hybrid ILX, with a lithium- ion battery pack, gets a combined 38 miles per gallon in city and highway driving and will be Honda’s first gasoline-electric auto built in North America.

Acura is based in Torrance, California. Honda’s American depositary receipts fell 1.8 percent to $38.12 at 1:03 p.m. New York time.

Luxury Car sales february 2012

Automotive Dealer - Luxury Car sales february 2012 ; BMW and Mercedes-Benz’s rivalry for the luxury car lead continued into February, with BMW and its all-new 2013 3 Series taking the reins from Mercedes-Benz and its 2012 C-Class. In other German sales news, Volkswagen reported yet another record sales month, largely driven by the 2012 Passat and 2012 Jetta.

Audi – 8531 Sales, Up 10.0 Percent

Audi’s continuing its sales roll this month, reporting its 14th straight record-setting month. Audi sold 8531 vehicles last month, a 10.0 percent increase year-over-year. Though sales were down 1.8 percent versus last February, the A4 was Audi’s volume leader with 2719 sold. The Audi Q5 continued its sales rise too, rising 14.0 percent year-over-year, for a total of 1754 crossovers sold. The new A6 also had an impressive February, gaining 63.6 percent for a total of 972 vehicles sold. The biggest loser last month was the Q7; due to supply constraints, only 373 were sold, down 49.7 percent. Diesels continue to be a strong seller for Audi, with 53.9 percent of A3s and 36.7 percent of Q7s sold being TDI models.

BMW – 21,204 Sales, Up 29.2 Percent

After just losing out to Mercedes-Benz in the first salvo of the luxury sales battle in 2012, BMW can now boast that it topped Mercedes in February with 21,204 vehicles sold, an increase of 29.2 percent. Buoyed by sales of the all-new 2012 model, 3 Series sales were up 66.3 percent to 8103 vehicles sold in February. BMW’s second and third best-sellers continue to be the 5 Series and X5, respectively. 5 Series sales were down 4.0 percent, with 4042 sedans sold, while X5 sales were up 21.8 percent with 3224 vehicles sold. BMW noted an increase in all models save for the aforementioned 5 Series, and the 1 Series, which was down 30.0 percent year-over-year with just 605 sold.

Mercedes-Benz – 18,080 Sales, Up 16.9 Percent

Though it didn’t sell as many vehicles as its Bavarian rival, Mercedes-Benz still reported another excellent month of sales, with 18,080 vehicles sold, a 16.9 percent increase year-over-year. Mercedes’ best seller continues to be the C-Class; last month 5240 were sold, a 17.0 percent bump versus last year. Though sales were flat with a 0.0 percent year-over-year change, the E-Class was Mercedes’ second best-seller with 4206 sold. The M-Class kept its third spot on the podium with 3408 sold, up 77.1 percent year-over-year. Mercedes-Benz also noted an 81.9 percent diesel sales increase last month, with 1415 vehicles sold.

Mini – 4980 Sales, Up 42.2 Percent

Mini had a strong month last month with all of its models reporting sales gains. Mini’s best-seller continues to be the Cooper hardtop. With 2427 vehicles sold, the Cooper was up 25.7 percent. Hot on the Cooper’s tail was the Countryman with 1294 sold, a 46.0 percent increase year-over-year. Mini also sold 254 Coupes last month. The Mini Roadster, which hit dealers at the close of the month, saw 110 models sold.

Porsche – 2149 Sales, Up 6.4 Percent

Even with sales of its bread-and-butter Cayenne SUV down due to supply constraints, Porsche posted another month of sales increases. Porsche’s best seller in February was the 911. Boosted by the arrival of the all-new 991 series 2013 911, 858 911s were sold, up 111.8 percent year-over-year. As previously mentioned, Cayenne sales were down 29.8 percent with 657 sold. The Panamera slotted in in third, with 511 sold, up 16.6 percent. Still holding steady in last place is the Boxster and Cayman, with just 123 sold, down 47.8 percent. Porsche attributes this to supply constraints as it prepares to roll-out the 2013 Boxster this spring.

Smart – 769 Vehicles Sold, Up 58.9 Percent

Smart continued its sales rise in February, giving the brand its fourth consecutive month of sales increases. Smart sold 769 ForTwos last month, a 58.9 percent increase year-over-year.

Volkswagen – 30,577 Sold, Up 42.5 Percent

Volkswagen reported yet another jump in sales in February, with 30,577 vehicles sold – a 42.5 percent increase year-over-year. VW’s volume seller continues to be the Jetta sedan with 11,694 sold, which is an 11.4 percent increase year-over-year. VW’s second best seller was the 2012 Passat. With 8189 sold, it was up a whopping 14,523.2 percent year-over-year – largely because the Tennessee-built Passat had just begun its rollout in February of 2011. Volkswagen also reported that its diesel TDI models accounted for 21.3 percent of its total sales last month, which is a 54.6 percent increase over TDI sales last month.

Source: Audi, BMW, Mercedes-Benz, Porsche, Volkswagen

new car sales in German february 2012

Automotive Dealer - new car sales in German february 2012 ; FRANKFURT — New car sales in Germany, a key gauge of demand in one of the most important sectors of Europe's biggest economy, remained steady in February, official data showed Friday.

A total 224,318 new cars were registered last month, unchanged from a year earlier, the German federal motor transport authority calculated in its monthly statistics.

Separate data published by the VDA auto industry federation put the number at 224,400 cars, also steady year-on-year.

The numbers were "in line with our forecasts," said VDA chief Matthias Wissmann.

He said that positive developments on the labour markets -- unemployment in Germany is currently at record lows -- offered support.

At the same time, German auto exports fell 6.0 percent to 379,500 in February, pulled down by weakness in many markets in western Europe, VDA said.

By contrast, exports of cars and light trucks to the United States jumped 29 percent to 87,100 vehicles.

The number of cars that rolled off the production line in Germany fell by 3.0 percent to 504,100 last month, VDA said.

Japan New car sales february 2012

Automotive Dealer - Japan New car sales february 2012 ; Japan’s auto sales surged again last month as the government’s latest subsidy program sparked demand for fuel-efficient cars. Backlogs from last year’s earthquake added momentum.

Sales rose to 333,213 vehicles, up 32% from a year earlier, the Japan Automobile Dealers Association said Thursday. It was the sixth consecutive increase. The figures exclude sales of minivehicles.

The growth was slower than the 41% logged in January. But it was too early to determine whether the subsidies effect has peaked, an association spokesman said. During a previous subsidy program, sales picked up toward the end of its term, he said.

The government will start accepting applications for subsidies of ¥70,000 or ¥100,000, roughly $850 or $1,200, per vehicle in April. People buying fuel-efficient cars from Dec. 20 of last year through next January will be eligible to apply. The ¥300 billion incentive package will end as soon as its budget runs out.

Another industry group, the Japan Automobile Manufacturers Association, projects that auto sales, including those of minivehicles, will rise 19% to 5.02 million vehicles this year as the subsidies spark sales of fuel-efficient vehicles.

Japanese car makers are struggling with the yen’s continued strength, though the currency has weakened slightly over the past few weeks. An upturn in sales at home is vital to support profits in Japan’s car industry after coming under pressure from natural disasters in Japan and Thailand last year.

Toyota Motor Corp. and Honda Motor Co., in particular, have reported strong growth, driven by new fuel-efficient hybrid and small models.

Sales at Toyota, Japan’s biggest car maker by volume, surged 38% last month to 158,877 vehicles amid brisk orders for its new Aqua small hybrid. Sales of Toyota’s upscale Lexus brand rose just 2.3% to 3,554 vehicles.

Honda, the country’s third-biggest car maker, with a lineup that includes hybrid versions of the Fit compact car and the Freed minivan, reported that sales jumped 47% to 50,440 vehicles.

Sales at No. 2 Nissan Motor Co., which hasn’t unveiled new compact or hybrid models recently, rose 26% to 55,679 vehicles.

US. New car sales february 2012

Automotive Dealer - US. New car sales february 2012 ; New car sales in the United States jumped 15.7 percent in February for the ninth straight month of year-on-year growth on the back of an economic recovery, with major U.S. and Japanese carmakers except General Motors Co. posting double-digit increases, according to data released Thursday by a U.S. research firm.


Toyota Motor Corp. and Honda Motor Co. — which had been reeling from the March 11 catastrophe — showed steady recovery, enjoying robust sales growth of 12.4 percent and 12.3 percent, compared with increases of 7.5 percent and 8.8 percent in January, according to Autodata Corp.

GM sold 209,306, eking out a marginal 1.1 percent rise.

Nonetheless, GM retained its No. 1 position with a share of 18.2 percent, followed by Ford Motor Co., whose sales grew 14.3 percent to 178,644 units for a share of 15.5 percent.

The second through fifth rankings were also unchanged, with Toyota remaining in third with sales growing for the fourth straight month to 159,423 units, for a 13.9 percent share.

Chrysler Group LLC saw its sales soar 37.0 percent to 130,294 units for an 11.3 percent market share, followed by Honda, which sold 110,157 units for a share of 9.6 percent, posting the sales increase for the second month in a row.

Among other Japanese carmakers, Nissan Motor Co. posted a 15.5 percent rise in sales to 106,731 units and Mazda Motor Corp.'s sales jumped 32.3 percent to 25,651 units.


Sales grew 17.0 percent to 25,374 units for Fuji Heavy Industries Ltd., known for its Subaru brand, and 47.6 percent to 2,425 units for Suzuki Motor Corp.

In contrast, Mitsubishi Motors Corp. saw its sales drop 31.3 percent to 4,736 units.

Canada new car sales February 2012

Automotive Dealer - Canada new car sales February 2012 ; Some of the world’s largest automakers saw Canadian sales grow by double digits last month as more customers flocked to showrooms shopping for fuel-efficient vehicles amid a spike in gasoline prices.

Overall vehicle sales were up 11.2 per cent last month to 106,712 from 96,006, according to a report from DesRosiers Automotive Consultants.

Car sales shot up 17 per cent to 46,285 last month from 39,514 in February 2011.

Meanwhile, as the average age of vehicles on Canadian roads sets new records, that leads to an increased need to replace aging vehicles, while interest rates remain at ultra low levels making auto loans cheap.

As well, Japanese automakers have largely recovered from a disruption due to last year’s earthquake and tsunami.

Positive results from automakers in the opening two months of the year put the industry on track for its third straight year of improving sales. Sales bottomed in 2009 during the financial crisis, but rose the next two years.

“Although sales were very strong in February, they still were not back to levels achieved in 2008 pre-financial crisis,” said analyst Dennis DesRosiers. “We still have a very long way to go.”

The story so far this year has been passenger car sales, which are up 22 per cent for the year, he said.

“Since Detroit is stronger on truck than on car, this is hurting Detroit’s collective market share which is down about three points.”

One new trend is the emergence of Chrysler as the country’s top selling automaker for the past two months, beating out reigning champ Ford, which saw sales slip.

Consumers have reacted favourably to Chrysler’s new lineup of fuel-efficient products since Fiat took over leadership of the company after it restructured in 2009.

Chrysler said Thursday that February sales increased nine per cent compared with a year ago and hit their best level for the month since 2002.

Chrysler Canada, which has assembly plants in Windsor and Brampton, Ont., northwest of Toronto, as well as parts operations, said it sold 16,536 cars and trucks in February, up from 15,238 in the same month last year.

Meanwhile, GM said it sold 14,258 vehicles in February, up 16 per cent over February 2011, as sales of fuel-efficient crossovers increased significantly compared with a year ago.

Ford Canada sales, meanwhile, fell 3.8 per cent to 15,454 from 16,066, according to DesRosiers, as stronger sales at other automakers ate into Canada’s years-long top seller.

The big three Detroit nameplates also lost market share to foreign automakers as consumer growth turned more toward smaller cars than the pickup trucks that have been largely responsible for U.S. automakers success over the past few years.

Truck sales were also higher last month, by seven per cent to 60,427 units from 56,492 during the same month of 2011, but their growth was outpaced by cars, a rare phenomenon over the past few years that coincides with rising gasoline prices.

“One Detroit company may do better than others but collectively if pickup trucks don’t sell as well this year, the three together will lose share,” DesRosiers said.

Sales also improved for Japanese automakers for a second consecutive month after spending the better part of a year trying to smooth out supply disruptions caused by the Japanese tsunami last March.

Toyota Canada said sales rose 31 per cent with 12,384 Toyota, Lexus and Scion vehicles sold in February 2012.

Car sales were up 52.3 per cent to 6,889 units and truck sales saw their best ever February, up 10.9 per cent to 5,495. Meanwhile, hybrid sales jumped 169 per cent during the month.

At Honda Canada, sales rose 14 per cent to 8,883 units, led by a 111 per cent sales increase of the Honda Fit, as well as strong sales of its Ridgeline and Pilot.

Sales of all foreign nameplates grew 15.5 per cent to 60,603 from 52,482 a year ago, DesRosiers said.

South Korea’s Hyundai, which is quickly gaining market share in Canada, grew 6.5 per cent to 9,266 from 8,700.

Also among the fastest gainers according to DesRosiers were Volkswagen, with sales up 9.3 per cent to 3,539 from 3,237, and Suzuki, which saw sales increase 32.1 per cent to 457. Mercedes Benz sales were up 17.4 per cent to 2,319 vehicles and Kia sales rose 20 per cent to 4,644 from 3,870.

In the U.S., many automakers reported strong sales for February as Americans snapped up smaller cars to offset high gas prices.

Chrysler’s February sales rose 40 per cent from a year earlier as it sold nearly 134,000 new cars and trucks. All of its brands showed at least double-digit increases. Chrysler was helped by an easy comparison with last February, when sales were relatively low because many of its revamped models were just arriving in showrooms.

Ford sales rose 14 per cent, mostly on demand for the Focus compact car. Focus sales more than doubled to 23,350, making it the best February for the Focus in 12 years.

At GM, sales of the Chevrolet Cruze compact rose 10 per cent to top 20,000 for the month, while the new Chevy Sonic subcompact saw its best sales month ever at almost 8,000.

The strength of those sales helped General Motors, which was expected to see sales drop, report a one per cent increase.

France New car sales February 2012

Automotive Dealer - France New car sales February 2012 ; New car sales in France plunged by an annualised 20.2 per cent in February, industry data showed this week.

Ratings agency Moody's downgraded the PSA group one notch to non-investment status, warning that similar alliances in the auto sector often failed to match expectations.

Moody's slapped Peugeot with a Ba3 rating and a negative outlook based on poor earnings while adding that previous mergers and alliances 'have often not resulted in the anticipated competitive advantage and improved performance'.

Sales in February by Peugeot plummeted by 29.2 percent while fellow French carmaker Renault saw its sale drop 28.5 percent.

The sharp drop is in large part explained by strong sales a year earlier fuelled by a French 'cash-for-clunkers' scheme that subsidised new car purchases to boost the auto sector.

Sales in February by foreign automakers were stronger, falling only 7.3 percent overall with some companies, such as Japan's Nissan, German BMW of Germany and South Korea's Hyundai, showing growth.

But sales from General Motors fell by 25.7 percent to 7,819 cars.

The drop in new car registrations should continue in March, CCFA warned and the committee has forecast a total market contraction of between 7 and 10 percent for this year.

On Wednesday GM and Peugeot - Europe's number two automaker - said they would form a global partnership with GM taking a seven-percent stake in the French firm through a reported one-billion-euro capital increase.

The two companies agreed to share vehicle platforms and create a joint venture to purchase commodities and other goods and services. They targeted $2 billion (1.5 billion euros) in annual savings within five years from the alliance.

Peugeot's share price sank by more than 5.0 percent on Thursday in a largely flat Paris market with traders focused on the capital increase caused by the venture instead of any potential synergies.

'The share price is suffering because of the capital increase that will dilute the shares and (traders) are ignoring the good news for the moment,' Deutsche Bank analyst Gaeten Toulemonde said.

The automakers have struggled with flagging sales in Europe, where the eurozone debt crisis has brought on recession and a the sharp slowdown in demand for autos.

Thousands of workers at a Peugeot factory north of Paris were temporarily laid off this week as the company looks to avoid stockpiling as demand dwindles.

Hundreds of workers at a Renault factory west of Paris meanwhile marched and blocked traffic on Wednesday demanding salary increases, but Renault said its hands were tied by the deteriorating auto market.

Western Europe new car market forecast 2012

Automotive Dealer ; Western Europe new car market forecast 2012 ; Western Europe's new car market will suffer a bigger contraction next year than previously expected, as the region suffers a mild recession, forecaster LMC Automotive said on Tuesday.

The market research group revised its projections downward for 2012 and now expects sales to drop by almost 5.1 percent to 12.15 million vehicles in a base case scenario to account for economic output declining.

Previously it had estimated a decline of about 2 percent with sales shrinking in virtually all major markets, it said.

"Were we to see a more significant recession in Europe, the market could fall to around 11 million vehicles a year," LMC Automotive forecaster Jonathon Poskitt said.

That was roughly the selling rate in the early months after the Lehman collapse before European governments starting with Germany began introducing fleet renewal subsidies commonly called "cash for clunkers" schemes.

LMC Automotive, formerly known as J.D. Power Automotive Forecasting, reiterated its estimate that the western European car market would dip 1.4 percent in 2011 to 12.80 million vehicles versus just under 13 million last year.

Poskit said euro zone periphery car markets like Italy and Spain were obvious candidates to put downside pressure on western European sales, but economic linkages meant problems could spread to the UK despite its ability to service sovereign debt in a currency it can control.

"The UK market has been deteriorating in recent months. Consumer confidence is hitting all-time lows and the outlook for the wider economy is difficult for next year," he said.

"Along with worries about unemployment, the euro zone debt crisis is one of the factors impacting consumer sentiment in the UK. With its trading partners affected, the country will get caught up in a wider recession

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automotive market sales outlook 2012

Automotive Dealer - automotive market sales outlook 2012 ; The outlook for automotive sales was limited for the next year moving forward as the current industry scenario is lacklustre on the back of weak sales and foreign exchange pressures.

RHB Research Institute Sdn Bhd (RHB Research) analyst Alexander Chia revealed, “The September quarter was dismal for earnings. Four of the six auto stocks under our coverage reported earnings that were below expectations.

“We expect the total industry volume (TIV) to remain flat in 2012 with auto sales estimated at 607,000 units. Although the new model pipeline looks strong, the expected slowdown in the economy will likely put a dent on consumer discretionary spending with some potential buyers possibly opting to postpone purchases or trade down to a less expensive model,” he opined.

Although Proton Holdings Bhd (Proton) and DRB-Hicom Bhd (DRB) were broadly in line with RHB Research’s expectations, both suffered from large year-on-year (y-o-y) decline in earnings.

Proton’s earnings for the first half of financial year 2012 ending March (1HFY12) declined 87 per cent y-o-y due to losses at Group Lotus from expenses associated with its ongoing five-year turnaround plan.

The national carmaker’s market share of the industry was 27.1 per cent year-to-date (January to October), trailing Perodua which had a 28.9 per cent share over the same period.

Despite maiden associate contributions from Pos Malaysia, DRB’s 1HFY12 earnings fell 33 per cent y-o-y due to the 9.6 per cent decline in automotive profit from weaker earnings at 34 per cent owned Honda Malaysia and higher effective tax rates.

The strength of the yen was blamed for some of the weaker earnings at APM Automotive Holding Bhd and MBM Resources Bhd (MBM).

MBM’s 23.6 per cent-owned associate Perodua saw margins squeezed by the higher yen resulting in nine month 2011 associate earnings falling 15 per cent y-o-y despite Perodua sales volumes only falling 9.9 per cent y-o-y.

UMW Holdings Bhd’s third quarter of 2011 earnings were blighted by lower contributions from Perodua, continued losses at 22.3 per cent owned WSP Holdings Ltd, and other losses related to its various subsidiaries.

Chia had a mixed outlook for 2012, starting with the prospects for 4Q11 looking ‘unexciting’ due to the seasonal sales weakness arising from consumers’ preference to register their vehicles in the new year.

Supply constraints due to the floods in Thailand could also mean fewer compelling year-end sales promotions to entice buyers.

He listed the risks to the forecast, namely a stronger economy lifting car sales and favourable foreign exchange trends.

“We remain cautious on the prospects for stocks in the sector going into 2012. In addition to limited headroom for significant TIV growth in 2012, the key risk for the sector is margin compression arising from the recent strength of the yen and US dollar,” he stated.

For investors with a larger risk appetite the research firm pegged Proton with a fair value RM5 per share on the back of potential merger and acquisition activity.

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Impact US. Debt Crisis on Automotive industry

Automotive Dealer - Impact US. Debt Crisis on Automotive industry : A U.S. government default on its debt would derail a shaky economic recovery, crimp auto sales and stifle auto makers and suppliers, But most think the catastrophe will be avoided, even though President Barack Obama and House Speaker John Boehner, R-Ohio, remain deadlocked on a plan to cut the federal budget deficit and raise the nation’s $14.3 trillion debt ceiling.

And if they don’t’ reach a solution?

“The psychological impact will be huge, Interest rates would soar and lending would be squeezed. Consumer confidence would fizzle, and the dollar would weaken as investors scurried for safer currencies.

How big might the auto jolt be? IHS Automotive projects U.S. light-vehicle sales of about 12.7 million this year, a forecast that already has been lowered from 13.3 million because of the cooling pace of the recovery.

IHS sees 14.6 million sales next year. But if there is a default, that forecast gets cut by “some big, ugly number,”—as much as 1.5 million to 2 million—said George Magliano, a senior principal analyst at IHS.

Depending on the timing, 2011 sales would be hurt, too, he said.

Mr. Obama cited the prospect of skyrocketing interest rates on loans—including car loans—and the prospect of a “huge and deep recession” in his address to the nation on Monday. Mr. Boehner responded by accusing the president of seeking “a blank check” to continue government spending that is “sapping the drive of our people.”

But industry executives see the two sides coming together before the Aug. 2 deadline.

“I’m very confident we’re going to get a solution,” Alan Mulally, CEO of Ford Motor Co., said in a conference call July 26 after Ford announced a $2.4 billion second-quarter profit.

High stakes

Michael Jackson, CEO of AutoNation Inc., said a “protracted” period without an agreement would disrupt the economy and the auto industry and change his outlook on the unfolding recovery.

“Hopefully, Washington will still do what’s right for the country and find a solution,” he said. “The stakes are high. There’s no doubt about that.”

Several executives said they can do little but wait. They said changes they made to survive the industry collapse of 2008-2009—building cash reserves, raising liquidity and curbing capital outlays—put them in better shape to deal with any blow stemming from the deadlock in Washington.

“We’re in a much better position than we were when the great recession hit,” said Craig Monaghan, CEO of Asbury Automotive Group.

In the event of a default-spurred crisis, he said Asbury would trim used-car inventory to about $50 million, or about half the current value, to free up cash. The company also would likely reduce staff and new-car stocks.

In the meantime, Asbury has bolstered liquidity by stockpiling $100 million in cash, with another $100 million available in bank credit lines.

“I think we could survive for quite some time in a very harsh environment,” Mr. Monaghan said.

Building cash

Earl Hesterberg, CEO of Group 1 Automotive, said consumers are becoming more jittery each day the stalemate in Washington drags on. He also said he thinks both sides will come to terms.

If they don’t?

“We just prepare ourselves to be able to adjust to another sales downturn,” said Mr. Hesterberg, who steers the nation’s fourth-largest auto retailer.

“If we adjusted to the 30 percent drop in revenue in one quarter, back in the fall of ‘08 or the beginning of ‘09, then we’re confident we can deal with anything that comes our way,” he said. “That’s why we’ve lowered our debt and we have a big cash position.”

AutoNation’s Mr. Jackson echoed that view.

“I’m more concerned about what it does to the overall economic recovery in the U.S.,” he said. “What does it do to jobs in the U.S., and consequently what does it do to the overall outlook for auto sales in the U.S.?”

The impact of a default on the auto industry would ripple far beyond showrooms, said Ron Harbour, president of Harbour Consulting in Troy, Mich.

“It’s not only the cost of borrowing for those who want to lease or purchase a car,” he said. “It’s the cost of borrowing money for suppliers and OEMs and so forth.”

Higher borrowing costs would hamper Ford, for example, as it seeks to chip away at its $14 billion debt.

As for suppliers? “They’re already limited by their financial condition. If the banks limit them even more, it would significantly hurt their health, their ability to deliver to the OEMs on time,” Mr. Harbour said.

Being prepared

Cleveland-based Eaton Corp., which supplies engine and transmission parts, superchargers, fuel emission and safety controls, is maintaining a highly liquid balance sheet in part because of issues like the debt debate, CEO Sandy Cutler told the The Wall Street Journal.

The company had $282 million in cash and $601 million of short-term investments on hand at the end of June.

“We’re well-equipped to be able to deal with what may come out of either some action or lack of action over the next couple of weeks,” Mr. Cutler told the paper.

Standard & Poor’s, in an analysis released July 21, warned a U.S. government default would fuel a “negative feedback loop” in which high unemployment would lower consumer confidence; consumers would cut spending; corporate profits would fall; and companies would cut jobs.

“The auto sector would fit into that negative feedback loop, as would other sectors with exposure to the consumer,” said Robert Schulz, managing director of S&P Ratings Services.

“It’s hard to separate out an effect that’s unique to autos, other than that vehicles are big-ticket items,” Mr. Schulz said in a phone interview. “And that means some of the slower sales we’re already experiencing are probably because consumers are hesitant to take on debt.”

Mercedes Benz market share prediction

Automotive Dealer - Mercedes Benz market share prediction ; MercedesBenz is an online publication dedicated to covering the Mercedes-Benz, Maybach and smart brands. Established with the intent of bringing Mercedes-themed content from across the globe to one centralized location, eMercedesBenz has since grown to become the world’s foremost outlet by which to find the latest news, information, reviews and rumors pertaining to the Mercedes-Benz family of brands.

In addition, eMercedesBenz also offers a distinct lifestyle section featuring an assortment of products and services. Each week, our team finds the hottest new gear, the latest style and the best places to travel in a variety of categories, all of which are aimed at making your life better, more refined and more enjoyable.

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East Africa automotive industry prospect 2012

East Africa's automotive industry prospect 2012 ; East Africa's automotive industry is getting busier as new vehicle brands enter the regional market in anticipation for the economic boom resulting from economic integration.

Data by consulting company Pricewaterhouse Coopers (PwC) indicates that the automotive industry in Kenya and by extension the East Africa has for long been dominated by Toyota (East Africa) , Cooper Motors Corporation (CMC), General Motors (GM), Simba Colt and DT Dobie.

But other vehicle brands are digging in, either establishing assembly plants here or expanding their sales network across the economic community whose market is set to expand with the independence of South Sudan, East Africa Community's planned sixth member.

For example, South Korean auto maker Hyundai Motors on Wednesday announced an investment in East Africa of up to 22 million U.S. dollars in the next three years through its subsidiary Hyundai E.A. Holdings Ltd (HEA) to support Hyundai auto sales in the regions and make it easier to access genuine Hyundai spare parts in the region.

"Hyundai has been absent from East African roads for over a decade. But we consider the region as a significant market and will be making strategic investments to make Hyundai cars the leading models in the region," said Sam Lee, its regional Marketing Director.

The company opened its show room in Nairobi in January. Last week, the company partnered with a Kenyan leasing company known as Vehicle and Equipment Leasing Limited (Vaell) as part of its strategy to increase sales in East Africa.

"Our study of emerging trends in the East Africa auto market found that leasing is the fastest growing new industry. As an aggressive new-car seller, we see it as an enabler and are happy to announce partnership with local leasing company," said Lee.

China's vehicle manufacturer Foton Motor has also set eyes on the East Africa market and is now building an assembly plant in Nairobi that will supply at least 10,000 units to the region, company officials said.

The new plant, which will give the company competitiveness because it means it will avoid paying 25 per cent duty if it imported fully built units, will assemble prime movers, light commercial trucks, tippers, buses, and pick-ups.

The company is currently in the process of recruiting dealers across the East Africa. Availability of spare parts could be major win for the company because consumer trends here indicate that buyers go for vehicles that they know they can buy spare parts at the nearest town.

Earlier, India's Tata Motors said it will establish a USD 12.8 million bus assembly plant in the coastal city of Mombasa to serve the East Africa market.

The company had said it planned to assemble up to 60 buses a month although it was not clear if the assembly has started operations. Just like Foton, the intention is to avoid the 25 per cent duty for the buses to be competitively priced.

Toyota is also another global automaker that announced last year it plans to establish an assembly plant in Kenya to serve the East Africa market.

Martin Owour of the Advisory Center for Trade and Investment Policy said the race to set up assembly plants in the country will result in lower priced vehicles because of competition and avoidind the 25 per cent duty.

Price is a major issue in automotive industry in East Africa and is blamed for the consumer preference to second hand vehicles that command 70 per cent of the automotive market share in East Africa according to various studies. "The new assemblers are looking to use Kenya as the launching pad for entry into the regional common market.

The fragmented economies of the five East African countries had discouraged the auto dealers from setting up assembly plants, but the common market has made it possible for the dealers to capture a region of more than 130 million residents," said Owour in an industry analysis report.

Kenya currently has three motor assemblers, Kenya Vehicle Manufacturer, the Association of Vehicle Assemblers Limited of Mombasa and General Motors East Africa.

The new assemblies will complement efforts by the East African Community (EAC) to encourage setting up of automotive assembly plants.

EAC industrialization strategy for 2010-2030 has identified Numerical Machining Complex (NMC), Kenya's state-owned company that once manufactured two prototype vehicles known as Nyayo Pioneer, as a possible automotive assembly hub. The company currently manufactures some vehicle spare parts.

Groupon’s First Ever Automotive Sales Deal

Automotive Dealer - Groupon’s First Ever Automotive Sales Deal ; Earlier this week Groupon offered its first ever deal from the automotive sales industry. LaFontaine Buick GMC Cadillac, a suburban Detroit dealership, offered $500 toward the lease or purchase of a new or pre-owned vehicle for $199, a savings of 60 percent.

The deal was set to run through Wednesday and required 10 purchases to tip but by that evening only 3 had been purchased and with only a couple of hours to go, the timer was suddenly updated to run for another day. The additional day only saw one more purchase so of course the deal never tipped.

In an article on Reuters, Ben Edelman, associate professor at Harvard Business School said, “The prospect of opening up markets like new cars and leases is attractive. To the extent they can still take 50 percent revenue share that’s more money.”

Groupon has done some other big-ticket deals recently, such as $500 off closing costs for real estate purchases, Edelman noted.

The car offering may be more problematic, he added.

“This voucher is for a very small portion of the cost of a car or lease, so it’s basically an agreement to buy or lease a car from LaFontaine,” Edelman said. “That’s poor negotiating because the dealer could take advantage of that by offering the same car for more money.”

The deal was simply not attractive enough to pull in the buyers. If the deal cost $199, the car discount was really only $301. With the price of cars these days, what part of a vehicle can you even buy for that… a couple of tires, maybe? Auto retailers are offering discounts on cars reaching into the thousands. In order to run a successful promotion LaFontaine needed to risk a lot more on this deal than they did and obviously they weren’t willing to do that