Filed under: Car Buying, Budget, SUV, Crossover

Finally, after years and years of stagnation and painfully slow sales, small cars are starting to take a foothold in the United States. Or are they? While conventional wisdom makes us believe that Americans are ready to take the downsizing plunge in the face of – or at least the threat of – high fuel prices and environmental concerns (we’re all still watching the Gulf Coast, right?), it seems that reality may once again set us straight.

Automotive sales watchdog Autodata has found that the gas-swilling large SUV segment is growing at a faster pace than the America’s small car segment. Like statistics? Here we go: With a 19-percent jump over the first six months of 2010, large SUV sales have outpaced small cars (14 percent). Critically, they’ve also outpaced the overall market (17 percent).

Now, before we get our feathers riled up too much, realize that sales of large SUVs still lag way behind small cars – 974,000 to 121,000 through the first half of the year. Further, large crossovers like the Buick Enclave, Chevrolet Traverse, Ford Flex, GMC Acadia and Lincoln MKT are included in those figures right alongside traditional behemoths like the Chevy Tahoe, Ford Expedition, Infiniti QX56 and Toyota Sequoia.

We also expect that small car sales will continue to climb with new models coming to market, such as the upcoming Ford Fiesta, Mazda2 and Hyundai’s Accent and Elantra. That said, there’s always going to be a demand for large and powerful SUVs that can haul people and stuff while towing a boat or camper in cool, air-conditioned comfort, and automakers will be only too happy to provide the thick-margined vehicles for their consumption. For better or for worse.

[Source: USA Today via Kicking Tires]

Report: Large SUV segment outpacing small car sales growth in America originally appeared on Autoblog on Fri, 30 Jul 2010 15:59:00 EST. Please see our terms for use of feeds.

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Report: Large SUV segment outpacing small car sales growth in America

Filed under: Car Buying, Earnings/Financials

2009 was the single worst sales year for the auto industry in 30 years, with just 10.4 million vehicles moving off dealer lots. Consultancy A.T. Kearney feels a lot better about 2010 and beyond, though, as pent-up demand is beginning to creep into the market. A.T. Kearney predicts that by the time 2010 is in the history books, the industry will have hit between 11.4 and 12.3 million cars and trucks sold, but if you hold the company to just one number, it estimates a market of 11.7 million units.

If the economic recovery continues to gain steam, 2011 could see 14.4 million sales. That would be a huge sum for an industry that has scaled back production to meet current demand. The firm feels 2012 will bring auto sales back to pre-industry collapse, with an estimated 16.6 million cars and trucks manufactured.

It’s worth noting that the A.T. Kearney forecast is quite a bit more aggressive than many we’ve seen, but analyst Daniel Cheng tells Reuters that the analysis closely follows what happened in the early 1980s, when demand shot right back up after a lull of a couple of years. Among the potential calamities that could derail the industry’s climb back to normalcy are a double-dip recession and credit that doesn’t loosen up over time.

If A.T. Kearney’s industry sales forecast comes close to true, we’re thinking there are going to be a lot of happy automakers in carmaking nations the world over. The industry will need to hire more workers, which won’t be bad for the economy, either.

Where do you think the industry will finish in 2011? Leave your best guess in ‘Comments.’

[Source: Reuters | Image: Getty]

A.T. Kearney forecasting 14.4 million U.S. vehicle sales in 2011… what do you think? originally appeared on Autoblog on Thu, 20 May 2010 14:20:00 EST. Please see our terms for use of feeds.

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A.T. Kearney forecasting 14.4 million U.S. vehicle sales in 2011… what do you think?

Filed under: China, Buick, Beijing Motor Show

Over the course of the 20th century, the so-called “developed world” changed faster than at any time in recorded history, but not all parts of the world changed at the same pace. Late in the century some regions attempted to catch up, most notably China and India. In the process of doing so, they didn’t follow in the footsteps of their predecessors and cultural differences have meant that some things have been a bit different – including automotive retailing.

During our visit to China for the Beijing Motor Show, Buick offered to take us on a visit to a local dealership to see how things are done a bit differently. At first glance, the Buick dealer we visited on the northwest outer reaches of Beijing didn’t appear radically different from what you might encounter in the United States. A somewhat small showroom (at least compared to some of the larger American stores we’ve seen) contained eight cars, including each of the market’s currently available models. Read on to see how things diverged.

Continue reading Beijing 2010: 90% of Buicks in China bought for cold hard cash

Beijing 2010: 90% of Buicks in China bought for cold hard cash originally appeared on Autoblog on Mon, 26 Apr 2010 19:00:00 EST. Please see our terms for use of feeds.

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Beijing 2010: 90% of Buicks in China bought for cold hard cash

Filed under: Car Buying, Etc., Marketing/Advertising, Chevrolet, GM

Go to church on Sunday, sell on Monday? Well, not exactly, but General Motors will bring along the cream of its crop this Sunday, April 18, to the Hartford Memorial Baptist Church near Detroit, Michigan. For those interested in seeing the next wave of green technology, the procession will include the 2011 Chevrolet Volt.

The event is being sponsored by GM Minority Suppliers and Dealers, and the automaker says the purpose of the shindig is “to build new relationships in the community and highlight the contribution of minority suppliers and dealers to the community and local economy.”

We’re not sure how common this sort of thing is with GM, let alone with other automakers, but we have to wonder if some won’t find the event just a wee bit distasteful. That said, Reverend Dr. Charles G. Adams, pastor of the 10,000-member Hartford Memorial Baptist Church, says, “This is a wonderful opportunity to do something really special for Hartford church members. Something that has never been done at a church in Detroit.”

Any who wants to know more or who are thinking of attending can find all the official details in the press release pasted after the break.

[Source: Hartford Memorial Baptist Church]

Continue reading GM going to church to sell cars?

GM going to church to sell cars? originally appeared on Autoblog on Thu, 15 Apr 2010 08:56:00 EST. Please see our terms for use of feeds.

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