AD #1630 – SUVs & Trucks Lose Market Share, Global Sales Slow, U.S. Wants More Ethanol Pumps
May 29th, 2015 at 11:49am
Runtime: 6:20
- Global Sales Slow
- SUVs & Trucks Lose Market Share
- Honda Targets College Grads in New Ad
- U.S. Wants More Ethanol Pumps
- New Toyota Plan Opposed By Wall Street
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On today’s show…contrary to popular perception, SUVs are losing market share in the American market…..the Obama Administration invests in more ethanol pumps….while Honda goes rummaging for college grads. All that and more coming right up on Autoline Daily.
This is Autoline Daily for May 29th, 2015.
GLOBAL SALES SLOW
While car sales in the U.S. continue to grow, it’s not the same story around the globe. Wards reports that automakers sold 7.1 million vehicles in April, a decrease of less than 1% compared to last year. North America and Europe both posted gains in April but it wasn’t enough to overcome a drop in sales in Asia and South America. A slight fall in China and other big Asian markets led to a 2% drop in that region. But South America is really struggling, with all major markets posting a decrease, sales were down over 20%. But despite the slip in April, through the first four months of the year global sales are up 0.7% compared to a year ago.
THAT’S A FACT, JACK
No doubt you’ve seen the stories elsewhere in the media about how Americans have short term memories and that thanks to cheap gasoline prices, they’re running out and buying big pick-ups and SUVs in record numbers. There’s only one thing wrong with this story. The facts don’t bear it out. So far this year SUVs of all shapes and sizes have actually lost market share. Sales are barely up 2%, but the overall market has grown nearly 5%. Sales of full-size pick-ups are up about the same as the overall market, so they have not gained any market share at all. Those are the facts. But we’re under no illusions. No doubt the media will continue to say that Americans have short term memories and are buying big trucks and SUVs in record numbers.
And we’ll be back with more right after this.
FATHER KNOWS BEST
Honda, along with its Acura brand, is losing market share in the U.S. Since the company is morally opposed to fleet sales, it has to search for retail customers wherever it can find them. So it’s launching a new digital campaign aimed at graduating college students. In short video clips an all-knowing father figure gives advice on everything from doing your taxes to flossing your teeth. Since it’s aimed directly at millennials, the ads will only be promoted on Facebook, Twitter and YouTube. Acura will have its own campaign, called Look the Part, which has people share how they dress to impress. The grads are offered up $500 towards the finance or lease of a Honda or Acura.
A week ago we asked for your help identifying this little beach cruiser. And with seemingly little effort the name Citroen Mehari started popping up on the screen. It seems, for some, the most distinguishing features are those 3-lug wheels. Funny how even the smallest of details can be a dead giveaway. Anyway, if you think you have something that would make a good Barn Find, send it our way to viewermail@autoline.tv and it may just make its way into a show.
Coming up next, Toyota is doing something that goes against everything Wall Street stands for.
U.S. WANTS MORE ETHANOL PUMPS
Even though there’s a lot of controversy with using ethanol in gasoline, the U.S. government still wants Americans to use more. Bloomberg reports that the Obama Administration wants to invest $100 million to build more ethanol blender pumps, which allow drivers to choose how much ethanol they want to blend with gasoline. The EPA wants to “decarbonize” gasoline, that is, reduce the amount of carbon in gasoline. And the fastest way to do that is by using more ethanol. The EPA especially wants to see more cellulosic ethanol, not corn ethanol. And cellulosic ethanol is just starting to hit the market.
NEW TOYOTA PLAN OPPOSED BY WALL STREET
Toyota is doing something very interesting. It’s issuing a new type of stock that is aimed at long term investors. The reason Toyota is doing this is what makes it so interesting. It realizes that most investors do not have the patience to wait for returns on investments that could take a long time to pay off. Hydrogen fuel cell cars come to mind. So Toyota is offering shares that will pay a higher dividend but investors will have to hold on to them for 5 years. Toyota hopes to raise over $4 billion. In a nod to its own history, it’s calling these shares “Model AA,” named after the first car the company ever made.
We love keeping you up to speed on all the latest developments in connected cars and mobility services. So be sure to watch for our coverage of the TU Automotive Detroit conference next week, where the best minds in the business will be sharing their latest technologies and services.
That wraps up today’s report, thanks for watching and please join us again Monday.
Thanks to our partner for embedding Autoline Daily on its website: WardsAuto.com
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Comments (37)
May 29th, 2015 at 12:06 pm
Aren’t Americans, in fact, buying SUV’s in record numbers? If sales are up 2% in what seems destined to be a very good year for the total market, after years of increase in market share, it would seem that SUV’s are probably selling in record numbers, even with the small decrease in market share for the year.
I might want to buy some of that Toyota stock, if they can tell me where the hydrogen for the fuel cell cars will come from.
May 29th, 2015 at 12:14 pm
The ethanol and Methanol crowd have a rather basic math problem. The energy per unit of volume is lower, the MPG’s are lower and the cost at the pump is not enough lower to match the actual value received by the consumer. Until this math problem is fixed, no further investment of taxpayer dollars should be made.
May 29th, 2015 at 12:18 pm
Great Job Sean! No more Autoline Garage Segments?
May 29th, 2015 at 12:23 pm
Once again, the Obama administration shows themselves to be the idiots who know better. Ethanol makes no economic sense. The current administration will destroy our economy, if possible, just to be “green”. I’d rather have real gasoline and corn going to feed livestock instead of the negative energy equation that equals corn ethanol.
May 29th, 2015 at 12:24 pm
Um, exactly who in the U.S is it that wants more Ethabol?? Certainly nobody I know. It’s a scam. Dump it. Less gas mileage, no use for it except to support farmers. This isn’t the 70′s anymore. Get rid of that junk.
May 29th, 2015 at 12:25 pm
2. Don’t you see what’s happening? First the feds make ethanol more plentiful and convenient, next they raise taxes on gas. Makes sense now, I bet.
(sorry Mike, it’s sardonic humor day before Saturday)
May 29th, 2015 at 12:49 pm
I believe the “Consolidation Conversation” Sergio Marchionne is having in the press is aimed squarely at the Chinese Auto Makers. He would not directly solicit the Chinese OEM’s for a merger or acquisition with Chrysler because of it’s history of bailouts from the US Government. However if the Chinese want to have a huge presents in the American Market how easy it would be to purchase a majority share in Chrysler with an “Offer you can not refuse”.
This would do three things; infuse Fiat with cash from Chrysler, give a Chinese OEM a huge leg up on it’s Chinese competition and finally, allow Marchionne to bow out of FCA on a very high note. Unfortunately for Marchionne, the Chinese will wait Marchionne and FCA out as it’s value slowly declines over the next few years. This is why PSA did not bite on Marchionne’s offer at present. This Marchionne retiring in the next couple of years FCA will appear to be weaker and it stock price will decline.
May 29th, 2015 at 1:10 pm
Until they start making a fuel cell car that doesn’t look like some reject from Thunderbirds, I’m remaining the ICE man.
May 29th, 2015 at 1:21 pm
So, why doesn’t Wall St like the new Toyota stock? How much higher is the dividend than Toyota’s regular stock? What happens if a buyer doesn’t hold it for five years? And what is the benefit to Toyota when shareholders hold it for five years? Toyota will get their money when the stock is sold. Is the benefit that it helps stabilize Toyota’s share price? Or is this stock sold under a separate class or symbol?
Interesting story and a tantalizing lead in, but more complete information would help us understand what makes this stock sale so much different from other stock sales, aside from the 5-year holding period.
May 29th, 2015 at 1:28 pm
check the show notes,
http://www.bloomberg.com/news/articles/2015-05-29/toyota-shares-for-long-term-investor-opposed-by-proxy-adviser
It’s just one proxy advisor. But I also wonder why Toyota doesn’t just issue a convertible bond.
May 29th, 2015 at 1:55 pm
#9 HtG
That’s what I was thinking; sounds like Toyota is at it again (with a hybrid) stock this time. You buy the share but it works like a bond. Good/bad, I don’t know.
May 29th, 2015 at 2:07 pm
I think ethanol is a good concept except the price/value ratio is ties too much to the price of gasoline. It always seems to maintain that 60-80 cent less range. If they can price it in the $1.80 range when gas is $2.60 why does it have to go up to $2.50 when gas is $3.30? With only 15% being tied to gasoline what gives? The cost of the consumables to make E85 doesn’t have that strong of a swing.
May 29th, 2015 at 2:09 pm
Ethanol is causing havoc with older outboard motors. The boating crowd and motorcycle riders are lining up at the Ethanol-free pumps !!
May 29th, 2015 at 2:37 pm
Older BMW “airhead” bikes had a problem with ethanol, because of the shellac covered carb floats. Most 70′s bikes didn’t have a problem with E15. I recently sold a ’71 Yamaha 125 and ’75 Honda 750, both of which were fine with E15.
The 1940′s outboards I recently sold had shellaced floats, so they would have had a problem.
May 29th, 2015 at 3:07 pm
http://www.thenewamerican.com/tech/environment/item/16932-federal-ethanol-policy-bad-for-the-planet-good-for-lobbyists
May 29th, 2015 at 3:28 pm
Toyota rules auto world engineering w/it’s Prius drive train ,hydrogen exploration , & this—– http://www.autoblog.com/2014/05/01/toyota-randd-shows-off-free-piston-engine-linear-generator-for-fut/ I’m an olwrench , driving nothing but GM,s for 60 years , but “times, they are achanging”
May 29th, 2015 at 3:34 pm
15 not a lot of moving parts there either. No cams or crank. How do those pistons move?
May 29th, 2015 at 3:39 pm
At lunch yesterday , parked my 02 Sierra stepside next to a 2014 sibling. made mine look like a S10—–why ??
May 29th, 2015 at 3:43 pm
16 I meant to ask how those valves move, not the piston.
May 29th, 2015 at 4:11 pm
18 The video seems to show valve actuators of unspecified type. I’d think pneumatics would work well, if there is already a compressed gas used for something else, like “make up” gas for the gas spring that is used for the engine’s operation. Electric solenoids would also work.
May 29th, 2015 at 4:14 pm
I know that compressed air has been used in F1 motors to push valves closed, as steel springs couldn’t take those high rpms.
May 29th, 2015 at 4:33 pm
If the Toyota thing is low speed, which I would expect it to be, the valve springs wouldn’t need to be very stiff, and solenoids would probably work. Pneumatics would be overkill, but easy to do if there is already compressed air.
Anyway, it’s an interesting concept, and if the efficiency is there, and if it would be acceptably smooth, it could be useful, especially as a “range extender” for a car like an i3.
May 29th, 2015 at 5:45 pm
It would seem like it would vibrate a lot, with that single piston moving back and forth. Maybe two of them simultaneously moving opposite directions, with a single gas spring in the middle? Too long?
May 29th, 2015 at 7:35 pm
I want pumps with no Ethanol. That crap is killing my older cars. I nearly burned down the collector car a couple years back when ate through the rubber fuel hose. I wish the gov just would be honest and say the only green they really care about is money.
May 29th, 2015 at 8:53 pm
23 I have used E-10 in cars as old as 1986, and a 1977 lawn tractor with no problem, but some cars older than that have a problem with E-10. I’m glad I don’t have one, because I don’t know of anywhere to get E-0 in my area. E-0 should be available in all areas, for the few people who need it.
May 29th, 2015 at 10:33 pm
Cellulosic ethanol makes a lot more sense than corn ethanol but I really wish that the auto industry would produce fuel delivery systems are 100% free of any materials that are adversely affected by ethanol. Until that time, ethanol pumps should be outlawed.
May 30th, 2015 at 6:13 pm
From my experience, all cars sold in the U.S. over the last 30 years or so have been fine with E10, but I hope a lot of checking is done before E15 becomes commonplace, if that happens.
May 31st, 2015 at 6:01 am
A lot of boat (engines), motorcycle manufacturers and small engine (lawn equipment, etc.) warn of using gasoline with no more than 10% ethanol with some or all voiding warranties if used. E-15, as a separate pump, is okay with me, however this should not universally replace the current E-10. Even using E-10 in my lawn equipment with fuel stabilizer, I have seen long term fuel line deterioration (brittle, cracking, braking); changing the law to increase alcohol, to me, is ill-advised.
May 31st, 2015 at 6:20 am
Elon Musk in LATimes
Here’s a piece from LATimes showing how much Musk’s businesses rely upon govt subsidies.
http://www.latimes.com/business/la-fi-hy-musk-subsidies-20150531-story.html#page=1
May 31st, 2015 at 7:56 am
Here we go with a govt conspiracy, change fuel to E15 which cuts vehicle lifespan which means more car sales and more work for technicians all of which generates more tax for same govt. Case closed!
May 31st, 2015 at 10:16 am
An app that let’s users shame bad drivers. Your phone and its camera record and share info on drivers who are flagged multiple times by app users. You’re made aware that you’re near such a driver.
http://www.geektime.com/2015/05/28/channel-that-road-rage-into-something-constructive-with-nexar-you-can-easily-report-terrible-drivers/
May 31st, 2015 at 12:18 pm
28 I have long thought Tesla stock price was crazy, and even more so after reading that article. If the subsidies end, it seems Elon’s ventures would be in deep trouble. This would be especially true with Tesla cars, if mainstream car companies get more serious about luxury EV’s. Mercedes, Toyota, etc. could easily produce a worthy competitor for the Tesla S, if they choose to do so.
I’m impressed with Space X because of the good record for successful launches, and their near-success with landing first stage rockets on a barge. I don’t know how much government money they get per launch payload, compared to “traditional” rocket builders like Boeing and Lockheed-Martin.
May 31st, 2015 at 1:56 pm
Musk has probably secured his place in the popular imagination, no matter what. Click dependent sites know that any story with him in it will lead to revenues. I’m certainly not going to bust on him when that SpaceX first stage lands on the barge.
May 31st, 2015 at 3:33 pm
I’m look forward to a successful barge landing. Living in Cape Canaveral 2/3 of the year, I tend to follow the space program and launches, and the barge landing attempts are the most interesting aspect in a long time.
June 1st, 2015 at 10:10 am
CR tested the new Miata and they were really impressed with it, HtG what are you waiting for?
June 1st, 2015 at 10:57 am
So so so troubled this morning, Pedro. But you could guess from the body language in the last week that the car was a bullseye. I still haven’t seen a review of the trunk space though, and versatility has been a feature of Miata since Bob Hall envisioned it. Also, this model is a much wider car than the original, one reason for which is to accommodate larger, wider people-wise, I’m sure.
And I’m not saying anything about what driving around here in NY is like in reality. Maybe Matt Farah from Malibu CA can demonstrate…
https://www.youtube.com/watch?v=I07xikQ3l-8
June 8th, 2015 at 4:58 pm
12 years ago ethanol 10% was causing people a lot of problems in Oklahoma City. The TV stations set out to find why. Seems most problem stations had 18% ethanol and more water than gas, not really, but with the added ethanol, the greedy stations were adding water to the tanks. So we get 100% gas, so far along with the junk.
If the Feds want to distribute more Ethanol, make a Law that only US made ethanol be used, unless there is a shortage. California spends at least .40 a gallon more to get their green ethanol from Brazil.