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AutoPacific's Ed Kim appeared on Fox Business News today to discuss what lies ahead in the near future for the auto industry. Yes, 2009 was a real bummer, so what can we expect in the years ahead?
See the interview after the jump.
Continue reading "What to Expect in 2010 and Beyond"
I recently had the opportunity to drive the all-new Toyota Sienna on public road here in Southern California, and in my mind the segment has a new product leader. As minivan sales have fallen from a peak of 1.3 million units in 2000 to about 460,000 in 2009, many players fell out. Today, the traditional minivans include Sienna, Honda Odyssey, and Chrysler Group's Dodge Grand Caravan and Chrysler Town & Country.
Designed in California, engineered in Michigan, and built in Indiana, Sienna is developed for U.S. buyers. The 2011 Sienna is about the same size and heft as the outgoing Sienna and looks generally similar. Though the new take carries more contemporary style when the 2010 and 2011 are seen together, the functional requirements of any minivan determine much of its presence, footprint, and shadow. Toyota describes the new look as "visually intriguing." They have hidden the sliding door tracks and used elements like sculpted rear corners to lessen a minivan's natural boxy look.
Continue reading "First Drive: 2011 Toyota Sienna"
PickupTucks.com and AutoPacific have taken a look at all the new trucks sold in the past 10 years and made their picks for the most significant trucks of the decade. The trucks that made the list introduced cutting edge technologies and pushed the segment into new territory.
"Despite the economic challenges of the past two years, it's hard not to look back at the last ten years without calling it the decade of the pickup truck," said PickupTrucks.com editor Mike Levine. "Sales of full-size pickups hit 2.56 million units in 2004 and Ford's F-Series trucks remain the nation's best-selling vehicles, 33 years in a row."
Though there are many trucks that had a significant impact in the last decade, it's clear that the 2009 Ford F-150 earned the title of "Most Significant".
"On balance, we thought the 2009 Ford F-150 was the most significant pickup of the last decade," said Jim Hossack, vice president of consulting for AutoPacific. "It sells in high volume, owners like it and its body, chassis and powertrain are all first rate. Features abound, and there are more models, series and options than can be counted. It's a good looking truck and suitable for the widest possible range of tasks and uses."
After the jump are those trucks deemed most significant, in no particular order.
Gradual Recovery Over the Next Five Years, But No Return to 17-Million Unit Years Anytime Soon
TUSTIN, Calif. (December 21, 2009) -- 2009 will be a memorable year for the automotive industry -- unfortunately for all the wrong reasons. The U.S. light vehicle market is expected to close out 2009 at a disastrous 10.3 million sales, down from 16.1 million sales just two years prior and the lowest industry volume since AutoPacific began forecasting automotive sales in 1988. Naturally, the national economic collapse had a profound impact on retail sales of light vehicles.
The industry can look forward to year-on-year recovery over AutoPacific's five-year forecast period, but at a relatively gradual pace. In the near term, AutoPacific forecasts industry volume of 11.4 million units in 2010 as the economy slowly heals but also as unemployment hampers faster industry sales recovery. 2015 will see industry sales of 15.4 million, a significant improvement from 2009 volumes but still a far cry from the near-17 million unit years seen through much of the past decade.
Continue reading "AutoPacific Sales Forecast: U.S. Light Vehicle Sales Set to Recover...Slowly"
Which Consumer Brands Resonate with Auto Brands and Vice Versa?
TUSTIN, Calif. (December 10, 2009) -- You won't likely find many Porsches parked in front of Walmart. Only one in 17 Walmart Shoppers will even consider a Porsche. On the other hand one in six REI shoppers will consider a Porsche. A Generation Y new vehicle buyer is much more likely to also purchase an Apple product -- computer, iPod, and iPhone than older new vehicle buyers. Shoppers at H&M -- a trendy "cheap-chic" clothier -- are much more into their vehicle's image than their vehicle's power and acceleration. Trader Joe's customers are more likely to drive an Audi, BMW or Volvo.
A just released study of consumer brands and automotive brands sold in the United States provides in-depth information on the relationships existing between new vehicle buyers and twenty-seven consumer brands. This information gives insight not only into who is buying the consumer brands, but what is important to them, what other brands are cross-shopped and how it all plays into their automotive brand preferences.
"Our research indicates that American car buyers have dramatically different buying profiles for consumer brands. Selection of a consumer brand and selection of a vehicle brand and type are heavily tied together. The parking lot at Whole Foods is a lot different from the one at Walmart," notes George Peterson, President of AutoPacific.
Continue reading "Consumer Brands -- Auto Brands -- How Do They Relate?"
AutoPacific, Inc. and SIGMA GmbH use Model-Level Social Milieus to Help Manufacturers Determine How to Make Small Cars Sell to US Consumers
TUSTIN, Calif. USA and MANNHEIM, Germany (December 9, 2009) - Tightening CAFE standards may force smaller cars on US car buyers who are not inclined to downsize. "Our research shows that, despite what the U.S. Government is telling us, few Americans want to downsize to smaller cars," says George Peterson, President of AutoPacific, "Finding more buyers inclined to purchase smaller cars will not be easy."
For years, the US automobile industry has relied heavily on analyzing demographic factors in order to segment the marketplace, and sell consumers vehicles with different characteristics. Traditional socio-demographic targeting using variables such as sex, age, education or income, has been the norm. While many manufacturers have tried to create independent systems for segmenting the market, the results are often short-lived, and lack a global perspective in an industry that clearly must design and sell vehicles on a global level.
Continue reading "Selling Smaller Cars in the US Won't be Child's Play"
Reconciling Consumer Expectations with Reality Won't be Easy
TUSTIN, Calif. (December 2, 2009) -- A study released today by automotive research firm AutoPacific shows that while consideration for alternative fueled vehicles is on the rise, it is often driven by economic forces, rather than consumer desire to help the planet. "We have witnessed that hybrid consideration increased with fuel price, until people became used to higher fuel prices," says Jim Hossack, Vice President of AutoPacific. "Fuel prices have settled down in 2009 and so has demand for hybrid vehicles"
Going green will not be a walk in the park. Hybrid considerers are 10 percentage points more likely than gasoline considerers to agree with the statement, "I am prepared to pay a higher price for an environmentally friendly vehicle." This is even truer for plug-in hybrid considerers (+17 percentage points) and pure electric considerers (+ 19 percentage points). However, they plan to pay between $2,000 and $5,000 less on their next vehicle than gasoline considerers. "Clearly, there is a disconnect here. While green car considerers indicate that are willing to pay more, they are actually budgeting less for their next car. This needs to be reconciled, or alternative fueled vehicles may stall in the marketplace," said Hossack.
Continue reading "Do Green Cars Really Add Up?"
On Monday November 30, Audi AG revealed the all new Audi A8 flagship sedan to the world media in Miami, Florida. There were 850 journalists in attendance from the USA, Europe, South America, China, Japan, Russia... anywhere you can name.
Capping Audi's Centennial Anniversary, the launch of the A8 is very significant to the company. The A8 is being introduced in Europe and China earlier in 2010 with the USA getting A8 in Winter 2010 or Spring 2010.
Study Team Visits USA and China The A8 has a special place in AutoPacific's heart. In early 2006, AutoPacific hosted an Audi study team working on finalizing the concept of the A8. The team was in the USA for about three weeks. After visiting the USA, they spent a month in China where Audi outsells BMW and Mercedes-Benz by two-to-one. This group of engineers, planners, designers, financial experts and production managers were extremely enthusiastic, very knowledgeable and anxious to do what was right for the car and for Audi.
The results of their work is the all new 2011 Audi A8. Wow, what a car!
Continue reading "2011 Audi A8 Premium Luxury Reveal"
Old Time Extravaganza Let's call it a shindig. A Hollywood premiere. Audi celebrated its 100th Anniversary and introduced its all new A8 premium luxury sedan to the world on Monday night in Miami Beach at the renowned Founainbleau Hotel.
Audi constucted a monolithic hurricane-capable structure about a quarter mile up Miami Beach in which to hold the affair. The building will be used for about a week with Audi-related events. Media and glitterati on Monday night, dealers, community VIPs, consumers will all get a chance to see the new A8 during the week of November 30.
The total cost for the program is said to be $9.5 - $10million. This is a very significant sum today and goes back to the way automakers used to launch their cars - before today's huge buget cuts.
Miami Design Week As a sponsor of Art Basel Miami Beach, Audi has provided transportation to various venues and display space for contemporary art.
Continue reading "Audi A8 Premiere - Launch Gala the Old Way"
