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Posted by Ed Kim on August 4, 2016 at 2:34 pm
Mercedes-Benz Sprinter with a MasterSolutions upfit package. (Photo by Ed Kim)
As published on Forbes.com
Daimler’s Sprinter commercial van has been a pioneer in the North American market, introducing commercial customers here to the tall and slab-sided European-style van format all the way back in 2001. Today, this format’s U.S. sales surpass that of the traditional American-style van as the latest full-size commercial vans from Ford and FIAT Chrysler Automobiles have followed Sprinter’s lead.
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Posted by George Peterson on February 5, 2016 at 1:37 pm
AutoPacific, an automotive specialist research and product planning consultancy, forecasts that trucks, including XSUVs will be about 60% of the market for the foreseeable future. In fact, reading the crystal ball for the next five years, this percentage of the mix may be low. The charts above detail how cars and truck sales and market penetration have evolved since 1987 and the forecast for the future.
The hottest product segment in the American light vehicle market is the crossover SUV (XSUV). A crossover SUV can be as large as a Chevrolet Traverse or as small as a Chevrolet Trax. There are dozens of XSUVs in between. And there will be more.
The XSUV segment has become so hot because this type of vehicle corrects the criticisms buyers had of traditional SUVs which sold very well, but were not optimal. Buyers wanted products that were not hard-core off-roaders, but more civilized and city friendly. The SUV market exploded in the early 1990s with the introduction of the Ford Explorer and Jeep Grand Cherokee. It wasn’t until 1996 that the crossover SUV began slipping into the marketplace. First the Toyota RAV4 and Honda CR-V appeared. They were followed by the luxury crossover RX300. Clearly the manufacturers were listening and reacting.
Here are just a few of the things we know about the evolution of the SUV market over the next five years…
Cadillac Cadillac states that it has too few XSUVs (one, the upcoming XT5) and wants to add two or three more to its lineup while adding one more car as a range topper between now and 2020.
Buick Buick is adding the small Envision XSUV to its lineup this Spring. Envision is assembled in China.
FCA Drops Cars to Add XSUV and Pickup Capacity Fiat Chrysler Automobiles is dropping its Chrysler 200 and Dodge Dart in favor of more capacity for XSUVs and pickups. The Ram pickup will take over the FCA Sterling Heights, Michigan Plant when the Chrysler 200 is dropped. FCA’s huge Belvidere, Ilinois plant will be populated by XSUVs when the Jeep Compass and Patriot plus the Dodge Dart fade away.
Toyota Pushing RAV4 Toyota Motor Sales has stated that they would not be surprised if the RAV4 XSUV overtook the Camry mid-size car as its best selling product. Camry was the best selling car in the USA in 2015.
Lexus will add a 3-row XSUV above the RX350 in the next few years.
The charts above show the impact of crossover SUVs on the light truck market. Huge volume increase and market share increase.
Hyundai Aggressively Adding XSUV Capacity Hyundai is replacing 50,000 units of car capacity in its Montgomery, Alabama assembly plant with the Santa Fe Sport. That drops capacity for the Hyundai Sonata and Elantra from 400,000 to 350,000 units per year. Hyundai admits that they underestimated the demand for XSUVs years ago. This capacity move reacts to market demand and dealer pressure to get Hyundai dealers more XSUVs that are easier to sell and require less incentives and discounting.
Hyundai will add 45,000 units to its Tucson compact XSUV volume this year. Built in South Korea, Tucson has been limited because it is popular around the world and the vehicle was capacity constrained.
Hyundai also recognizes there is a hole at the bottom of their XSUV lineup and are adding a sub-compact B-Segment XSUV to fill that hole. There is a possibility that a smaller A-Segment XSUV will replace the Hyundai Accent hatchback.
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Posted by George Peterson on February 12, 2015 at 3:05 pm
Fun to drive can be defined an infinite number of ways. The sports car driver will say power and acceleration, braking and handling are the main contributors to fun to drive. There is also the element of sexy head-turning styling ringing the sports car driver’s bell. The sport utility driver will add functionality to that equation. A smart fortwo driver may think its quirky styling, minuscule size (even with its funky transmission) add to the fun to drive experience.
The most fun to drive vehicles in AutoPacific’s New Vehicle Satisfaction Research – those with 85 % or more of their drivers totally satisfied with its fun to drive characteristics include:
1. Chevrolet SS: We can certainly understand this one. Fully loaded 4-door sedan with a Corvette V8, the SS is a great value and adds sedan functionality to a high performance platform. Not a big seller, the SS buyer certainly understands the special car they are driving. One hundred percent of the respondents were totally satisfied with its fun to drive characteristics.
2. Chevrolet Corvette: Corvette is the quintessential American sports car. Big with dramatic styling and powered by a large displacement push-rod V8, the Corvette not only has the dynamics for a fun to drive winner, but also the looks.
3. Porsche Cayman: Curvaceous styling with Porsche DNA, German precision and sprightly dynamics have 94% of Cayman drivers totally satisfied with the fun to drive of their car.
4. Porsche Panamera: The most expensive of the fun to drive vehicles is the Porsche Panamera 4-door sedan with 93% of its owners totally satisfied. Sometimes criticized for its ungainly looks, it checks the boxes for fun to drive. Panamera is in the top ten in power and acceleration. Panamera is top ranked for braking. Panamera is in the top five for handling. Not bad for such a large car.
5. smart fortwo: There are fifteen cars that score 85% or higher in fun to drive. Surprising is one of them is the smart fortwo with 92% of its drivers totally satisfied with its fun to drive. Acceleration and powertrain performance clearly are not strong suits for the fortwo. Only 28% of fortwo owners are totally satisfied with power and acceleration, so there are other things contributing to its fun to drive. Maybe it is handling? – 72% are totally satisfied with its handling. Maybe getting good fuel economy is a contributor? – 76% are totally satisfied with fuel economy. Maybe just fortwo’s quirky styling just puts a smile on their face?
6. Porsche Boxster: The first of the “baby” Porsche entries has sometimes been called a chick’s car, and maybe it is if you watched the episode of Two and a Half Men where Alan buys one, but its owners 91% of its owners are totally satisfied with how fun to drive it is. Owners rate the Boxster in the top ten of totally satisfied with power and acceleration, braking, and handling – all strong contributors to fun to drive.
7. Nissan 370Z: A “classic” sports car, 90% of Z-Car owners are totally satisfied with its fun to drive attributes. It is in the top ten in power and acceleration, but comes up shy in handling ranking 12th and poorly in braking where it ranks 53rd.
8. Jaguar F-Type: Jag’s new sports car entry has 90% of its owners totally satisfied with its fun to drive. F-Type is in the top ten in power and acceleration, 11th in braking and 25th in handling. Clearly, F-Types powertrain strongly contributes to its fun to drive and combined with its classic styling owners score the car very strongly.
9. Subaru BRZ: The BRZ may be a new category of sporty coupe. It is built to be extremely maneuverable and fun for a young person. Small, rear wheel drive, and with the ability to drift around corners, 89% of its owners are totally satisfied with its fun to drive. In the case of the BRZ, its power and acceleration does not deliver on its looks or fun to drive image. Only 30% of BRZ owners are totally satisfied with its power and acceleration ranking it 225th. About 56% BRZ owners are totally satisfied with its braking. Where BRZ shines is in handling with 84% of its owners totally satisfying. It appears that Subaru could improve the standing of the BRZ if engine power was increased substantially.
10. Chevrolet Camaro: A classic American muscle car, 89% of its owners are totally satisfied with its fun to drive attributes. Camaro ranks 17th in power and acceleration with 73% totally satisfied. It ranks 18th in braking with 77% of its owners totally satisfied. Camaro ranks 10th in handling. These are solid results for a sporty coupe showing Camaro succeeds not only on the basis of its iconic image and styling, but also on dynamics.
11. Ford Mustang: The outgoing Mustang still has a lot going it with 88% of its owners totally satisfied with its fun to drive. Mustang owners rank its power and acceleration 28th with 68% totally satisfied. Mustang falls to 95th in braking with 65% totally satisfied. It is 55th in handling with 71% totally satisfied. Clearly, style, image and reputation have gone a long way in contributing to Mustang’s position among fun to drive cars.
12. MINI Paceman: The wierdly styled MINI Paceman is totally fun to drive for about 88% of its owners. 46% of its owners are totally satisfied with its power and acceleration ranking 156th, other MINI entries rank substantially higher. About 67% of its owners are totally satisfied with its braking ranking 52nd. About 75% of owners are totally satisfied with its handling – 27th. Head-turning styling and image strongly contribute to the fun to drive aura of the MINI Paceman.
13. Mazda Miata: Miatas, or MX-5s, are famous for how fun to drive they are. About 86% of its owners are totally satisfied with its fun to drive attributes. Miata is not supposed to be blindingly fast it is supposed to be fun and most owners recognize that. Still, ranking 109th, 53% of its owners are totally satisfied with its power and acceleration. About 68% are totally satisfied with its braking – 48th. About 64% are totally satisfied with its handling – 29th.
14. Mitsubishi Lancer EVO: The last Lancer EVO ranks 14th in fun to drive with 85% of its owners totally satisfied. Generally, a car sold for its performance never lives up to the expectations of its owners in power and acceleration, but the EVO seems to be an exception. About 71% of its owners are totally satisfied with its power and acceleration – ranking 22nd. About 78% are totally satisfied with braking – 13th. About 78% are totally satisfied with handling – 15th. This is a pretty good all-around performance for dynamic attributes. Sayonara EVO, you will be missed.
15. Scion FR-S: The FR-S is the Scion version of the Subaru BRZ. About 85% of its owners are totally satisfied with its fun to drive. Like the BRZ, FR-S owners want more power and acceleration – only 33% are totally satisfied – ranked 222nd. About 52% are totally satisfied with its braking – ranking 178th. About 73% of FR-S owners are totally satisfied with its handling – that is what the car is designed for after all – ranking 37th.
Top Ten Fun to Drive Brands: The ranking of brands includes the fun to drive results for all their entries. The top ten brands are: 1) Porsche, 2) MINI, 3) BMW, 4) Audi, 5) Jaguar, 6) Fiat, 7) Scion, 8) Cadillac, 9) Lincoln, 10) Mercedes-Benz.
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Posted by George Peterson on March 7, 2014 at 9:27 am
Brilliant Ad – Controversy Worth its Weight In Gold Cadillac, once the Standard of the World, has aired an outstanding ad for the Cadillac brand and the Cadillac ELR electric coupe. It was first shown on the American broadcast for the Sochi Winter Olympics and more recently for the Oscars that aired on Sunday, March 2. And what a controversy has ensued. Cadillac’s agency Rogue created the Cadillac Poolside ad to espouse unbridled American confidence and showcase what Cadillac stands for. In the process, the spot has left leaners and right leaners sniping against each other on numerous websites. On Thursday, March 6, arch-conservative pundit Rush Limbaugh (click on the link to be taken to the transcript of the Limbaugh show about the Cadillac ad) devoted the top of his second hour to the controversy the ad has created. The Cadillac Poolside ad pushed a button that allowed Limbaugh to rant for about a half hour.
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Posted by Dan Hall on September 23, 2012 at 1:22 pm
“I can’t underestimate how important the Fusion is to Ford,” — Mark Fields, Ford president of the Americas, to workers at Flat Rock, Michigan assembly plant.
The mid-size car segment is filled with able competitors and most are either new or recently updated. The oldest, Hyundai Sonata, is a 2011 model and each new model is being launched with a wider range of features than ever before. Honda Accord, Nissan Altima, Toyota Camry, Kia Optima, Volkswagen Passat, Chevrolet Malibu and next year’s Mazda6 represent the best collection of mid-size cars ever available in the United Sates.
What makes this competition interesting is the different approach that each manufacturer is taking. The Nissan Altima enters the race with a cost conscious four-cylinder engine with no turbo or direction injection. Despite this, the Altima has superior fuel economy and excellent power. Add in attractive styling cues from the Maxima, and you get a pretty compelling offering at a great price.
The Ford Fusion takes a different tack with six powertrains, including two hybrids. We got a chance to drive four of them in Santa Monica this week. Our impressions are positive, but we wonder a bit about the complexity of all these offerings.
2.5-liter inline four-cylinder with a 6-speed auto: This might be the best combination of price and attributes of the four we drove. While not as powerful as the EcoBoost options, it works well for a vehicle in a segment where dynamics are less important than price.
1.6-liter EcoBoost inline four-cylinder with a 6-speed manual: While Ford won’t sell a lot of manual transmission Fusions, this vehicle clearly has a European feel and would be our choice for fun. You clearly feel the small size of the 1.6, but pushing it hard and gliding through the gears with the smooth shifter makes this a fun ride.
2.0-liter EcoBoost inline four-cylinder with a 6-speed auto: More fun than the 2.5 liter four, but will buyers in this segment buy-in? Ours had the stand-alone start-stop feature, which worked better than other executions we’ve seen. It’s a good glimpse into the positive future of start-stop fuel saving technology.
2.0-liter Atkinson-cycle inline four-cylinder with an electric motor: As fun to drive as a hybrid! The hybrid version has received an EPA certified 47 miles per gallon for both city and highway driving, giving the vehicle the highest fuel-efficiency of any hybrid in its class. Toyota Motor Corp.’s Camry Hybrid LE gets 43 mpg in the city and 39 mpg on the highway, according to Toyota.
Building a hybrid can get you to about $38,000. A Titanium All Wheel Drive can get to you to $39,000. Start saving now.
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Posted by Dave Sullivan on July 24, 2012 at 7:24 pm
Who will win? Front-wheel drive? Rear-wheel drive? All-wheel drive? Some don’t care who wins! And we have the enthusiasts, who begrudge anything with front-wheel drive and performance in the same sentence.
Let’s fast forward five years…
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Posted by George Peterson on January 5, 2012 at 5:08 pm
An annual pilgrimage for the auto industry is to attend the press days at the North American International Auto Show in Detroit each January. Unfortunately, this year I cannot attend because my physicians caution that I should not be heaving carry-ons into and out of overhead bins and baggage carousels.
So, I’m jealous.
One of the primary businesses of AutoPacific is to keep on top of what is the latest in the auto industry worldwide, so AutoPacific will still be well represented at Detroit.
I asked each of our staff members to remind me why I should or should not be jealous of them attending instead of me. Read below the break for their input.
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Posted by George Peterson on January 3, 2012 at 5:44 pm
Goodyear Auto Service Centers – the Most Satisfying Tire Retailer in AutoPacific’s 1st Replacement Tire Retailer Dynamics and Satisfaction Study
About 26% of drivers in the USA have replaced one or more tires in the last twelve months. Most of these tires are purchased and serviced by a Tire Retailer. Tire retailers can range from the corner service station to an auto dealership, a mass market retailer or a specialist nationwide tire center. Knowing which tire retailers provide the most satisfying service is critical when deciding where to purchase Replacement Tires. In its first Replacement Tire Brand Dynamics and Satisfaction Study AutoPacific surveyed over 15,000 vehicle owners who bought replacement tires over the past twelve months to determine what is important when choosing a replacement tire and which tire retailers provide the most satisfying experience.
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Posted by George Peterson on February 4, 2011 at 5:57 pm
Last summer during a discussion with senior Hyundai management in Seoul, I asked “When can we expect to see a third plant for Hyundai and or Kia in the United States?” The response was “A third plant will be necessary when Hyundai and Kia sell 900,000 per year in the USA.”
In 2010, Hyundai sold 538,228 cars and light trucks in the USA and Kia sold 356,496 cars and light trucks. That is a total of 874,496 cars and light trucks for these two fast-growing brands. That number is also close enough for us to hypothesize that an announcement for a third Hyundai or Kia plant in the USA should be forthcoming.
Two USA Plants Already at or Above Capacity: Clearly, Hyundai is pushing the capacity of their Montgomery, Alabama plant. With the Sonata Mid-Size Sedan setting all-time sales records and the newly launched Elantra promising to sell very well, Hyundai Motor Manufacturing Alabama is out of capacity even at its increased capacity planning volume of 400,000 units. Hyundai has announced it is importing Elantras from Korea to meet extraordinary demand in the USA. Kia is adding a third shift to its West Point, Georgia plant producing Kia Sorento and Hyundai Santa Fe crossover sport utility vehicles.
Rumor – Mississippi Hyundai-Kia has likely squeezed as many concessions as possible from Alabama and Georgia to support its two plants there. A logical next choice still within range of Hyundai and Kia suppliers is Mississippi. With a third plant in the offing, any state would be willing to offer substantial concessions for the investment dollars and jobs a large scale plant inevitably generates.
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Posted by George Peterson on June 21, 2010 at 10:00 am
Cadillac Adds Premium Care Cadillac is adding standard scheduled maintenance – Premium Care – to its 2011 Model Year products. Providing scheduled maintenance is a way to demonstrate commitment to the customer, reduce ownership costs and increase customer loyalty. BMW has been offering scheduled maintenance for years and has effectively shed its “Break My Wallet” image that existed prior to the scheduled maintenance program.
Premium Brands Abandoned Standard Scheduled Maintenance In the past, most of the European luxury brands included standard scheduled maintenance – BMW, Audi, Mercedes-Benz, Jaguar, Land Rover. As costs went up and belts had to be tightened all with the exception of BMW dropped out. Surprising because consumer input to AutoPacific has indicated that standard scheduled maintenance is a strong enticement in selecting one brand over another. BMW was winning the battle with no competition.
Standard Scheduled Maintenance Returning as Customer Satisfaction and Marketing Tool Brands have begun to slowly return to standard scheduled maintenance as a customer satisfaction enhancer and sales enticement… Volvo, Volkswagen are now on board. Jaguar has added its Platimum Coverage for 2011 that provides all scheduled maintenance for 5-years or 50,000 miles. 2010MY Land Rover models include scheduled maintenance for a short period after
purchase. Perhaps they will follow Jag’s lead.
In any event, standard scheduled maintenance appears to again gain traction in the marketing wars at the top of the market. That VW has adopted it may indicate adding standard scheduled maintenance even to popular high volume brands.
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