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Automotive Lease Guide Releases Residual Value Awards

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Automotive Lease Guide is an influential and closely watched barometer of the value of brands and vehicles in the USA. ALG’s data are used by leasing companies to set the values for vehicles two and three years in the future and are critical in determining what lease rates a lessee will pay.
While ALG’s Residual Value Awards are not of the ilk of Motor Trend, Automobile, Car & Driver enthusiast awards, they provide an interesting counterpoint to awards based test track measurements, zero to 60 times and seat of the pants opinions. Here is the text of the ALG release…

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ALG’s annual Residual Value Awards honor those vehicles in each automotive segment predicted to retain the highest percentage of their original price. For the third consecutive year, American Honda Motor Company, Inc. heads the list with the Honda Brand winning the Industry Brand Residual Value Award. Honda also received two individual segment awards: the Odyssey for the Minivan Segment and the Accord for the Midsize Car Segment. This is the fifth consecutive win for the Honda Odyssey and the second win for the Accord.
Acura, a division of American Honda Motor Company, Inc., is the winner of the Near Luxury Car Segment for the TL.
BMW of North America, LLC has once again made a strong showing by winning the Luxury Brand Residual Value Award for the third consecutive year. MINI USA, a division of BMW of North America, has won the Compact Car Segment for the MINI Cooper for the fourth time.
Toyota Motor Sales, USA, Inc. took home the most Residual Value Awards this year by winning six individual segment awards: the Avalon for the Fullsize Car Segment, Tacoma Pick-up for the Compact Truck Segment, Tundra for the Fullsize Truck Segment, RAV4 for the Compact SUV Segment, 4Runner for the Midsize SUV Segment, and the Sequoia for the Fullsize SUV Segment. This is the fifth consecutive win for the Toyota Tacoma, Tundra and Sequoia; and the third consecutive win for the 4Runner.
Mercedes-Benz USA LLC is the winner of this year’s Luxury Car Segment award for the CLS Class.
The Sports Car Segment award this year goes to Porsche Cars North America, Inc. for the 911 Carrera.
And last but not least, the CUV (Crossover Utility Vehicle) award goes to Land Rover North America, Inc. for the Range Rover Sport.
“In an era of negative pricing and overcapacity, Residual Value excellence is increasingly difficult to achieve,” said Raj Sundaram, President of Automotive Lease Guide. “Both the segment and brand winners clearly demonstrate that quality products combined with effective pricing strategies will rise to the top.” Sundaram added that, “While the top rankings did not change, several brands have shown significant improvement over last year, highlighting the importance manufacturers are placing on residual value as a long-term objective.”
This year’s awards are based on 2006 model year vehicles. For the fourth year, ALG has also included awards for the brand with the highest predicted resale value of all industry and luxury vehicles. The awards are derived after careful study of segment competition, historical vehicle performance and
industry trends. Award winners are featured on http://www.alg.com, The Wall Street Journal, Automotive News, and other automotive publications and websites dedicated to bringing the industry’s best performing models into the
public eye.


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Subaru B9 Tribeca. New SUV Falls Short with Subi Purist.

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The B9 Tribeca is Subaru’s first effort in designing a larger SUV. It was introduced to the majority of consumers through a 30 second spot featuring the song, “Dust in the Wind” by Kansas. The ad concludes with the tagline claiming the B9 brings an end to our perception of what a typical SUV is, and attempts to establish a new definition for the SUV. The song and visual cues of the ad depicts other SUVs (much larger and utilitarian in size and functionality) falling to dust when the B9 crosses their paths.
Unfortunately, the B9 may be the one that will disintegrate and vanish into air before its competitors. It is brought to you by a company known for appealing to a unique group of individuals who are perceived to be tree-huggers and granola-eaters. From an engineering standpoint, the B9 Tribeca is a great vehicle featuring all that Fuji Heavy Industries technology Toyota just bought from General Motors (GM sold its stake in Fuji to Toyota in Fall 2005)… advanced all wheel drive, ABS, other technological features. Although the B9 Tribeca has an impressive and exquisite interior wrapped in a very distinct (controversial) exterior, it is doubtful the new vehicle will appeal to a large audience.
The Subaru B9 Tribeca was included a VehicleVoice Beauty Contest. As expected, its styling was controversial… in the middle of the pack. It will take a person wanting to make a definite statement to buy a B9 Tribeca. Of course, to break out of the product clutter, that is exactly what Subaru was trying to achieve.
Subaru of America Attempting to Move Upmarket
With the introduction of the B9 Tribeca and the earlier intro of its new Legacy lineup, freshened Forester and Impreza, Subaru is trying to reposition and reintroduce themselves to consumers. The question is whether or not Subaru has the goods to move upscale in product content and price.

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