This is Autoline Daily reporting on the global automotive industry.
APRIL SALES WEAKER THAN EXPECTED
We got the April sales numbers and they came in much weaker than analysts expected. Bloomberg surveyed a number of analysts, and on average they forecasted the SAAR would come in at 16.9 million. Instead, the seasonally adjusted annual rate came in at only 16.4 million. One reason for the drop: Merrill Lynch reports that the car companies cut their sales incentives by 6.5%.
| U.S. SALES APRIL 2019 |
| SAAR |
16.4 M |
|
| Sales |
1.3 M |
-5.6% |
| Source: WardsAuto |
CARS FALLING, TRUCKS FLAT
All told, automakers sold 1.3 million vehicles, down 5.6% from a year ago. Passenger cars fell 5.6%, while truck sales fell 1%. Yesterday we pointed out that sales of full-size vans are going strong and they are one reason why the truck segment is holding up better. Sales of the big vans were up nearly 12%.
| U.S. SALES APRIL 2019 |
| Cars |
396,000 |
-5.6% |
| Trucks |
934,000 |
-1% |
| Source: WardsAuto |
TESLA POSTS DECENT NUMBERS
But overall, only 5 automakers saw their sales go up: JLR, Nissan, Subaru, Volkswagen and Tesla. In fact, Tesla’s results are surprisingly strong. According to Wards estimates, Tesla sold over 20,000 cars last month. That means it outsold every single luxury brand except Mercedes and BMW, and remember, there are 12 other luxury brands in the US market. That’s a pretty impressive number from Tesla considering that its customers can no longer claim a $7,500 tax credit, and considering that Tesla is limited or banned from selling cars in 20 states.
Be sure to join us for Autoline After Hours this afternoon. Gary Vasilash is hosting a roundtable with Stephanie Brinley from IHS Markit, Brett Smith from the Center for Automotive Research and the one and only Autoextremist, Peter DeLorenzo. Join us at 3PM eastern time.
MITSUBISHI TRIES TO CLAW BACK
Mitsubishi was once a leader in technology and styling. In 2002 it sold 345,000 cars in the US market, but through neglect or incompetence sales completely collapsed to only 54,000 units in 2009. Now it’s trying to claw its way back. It only has four models, all sitting on old platforms, and new platforms from the Renault-Nissan alliance are still a couple of years away. Until then it’s relying on fresh styling and low prices. In September it’s coming out with a refreshed Outlander Sport that features a much bolder front end with a new fascia, new fenders, new hood and LED lamps. The rear fascia was changed and LED taillamps were added. Inside they added an 8 inch screen and used better materials, but everything electric and mechanical is carryover. The new strategy is working. Sales topped 100,000 units for the last two years, and interestingly Mitsubishi says it’s not stealing market share from competitors. Instead, it’s pulling customers out of used cars.
KIA REVEALS NIRO EV PRICE
Kia revealed the pricing for the Niro EV: $39,500 without the federal tax credit. With it, the price drops to about $32,000. That makes it about $1,500 more than a Hyundai Kona EV, which is a bit smaller than the Niro. The top of the line Niro EV starts at $45,000 without the credit.
VW DESIGNS AVs FOR PEOPLE WITH DISABILITIES
Volkswagen is launching a new initiative to make sure that people with disabilities are taken into account when developing autonomous vehicles. People with disabilities could be the biggest benefactors of this new technology, which is why VW is collaborating with disability groups to get their input on the design and functionality of self-driving cars. For example, it hosted a meeting last month to find solutions for securing wheelchairs in autonomous vehicles.
AUTOMAKERS STUMBLE IN CHINA
Automakers in China are running into headwinds that are stronger than expected. Most automakers gave very conservative forecasts for their earnings in the first quarter, but Merrill Lynch says that earnings still came in weaker than expected. Two key problems right now in China: severe price competition, too much inventory, and problems selling EVs because the Chinese government just cut EV subsidies. Data from LMC Automotive shows that to reduce bloated inventory levels, automakers are now cutting production faster than sales are falling. Automakers will struggle to maintain profits for the rest of the year, but analysts expect the Chinese market to perform better in the second half.
WARDS BEST INTERIORS WINNERS
Our friends at Wards revealed the winners of its annual 10 Best Interiors list. So without further ado, the winners are the Bentley Continental GT, BMW M850i, Genesis G70, Hyundai Santa Fe, Jeep Gladiator, Lincoln Nautilus, Mercedes-Benz A220, Nissan Kicks, Toyota RAV4 and the Volvo V60. The judges chose vehicles based on design aesthetic, comfort, ergonomics, materials, fit and finish as well as the user friendliness of displays and controls.
Before we go, you’ve got to check out this video clip that our viewer Jack Saindon sent in to us. If you see something that you think would be good to share on Autoline Daily, send it our way.
But that’s it for today, thanks for watching and we’ll see you back here again tomorrow.
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Comments (37)
May 2nd, 2019 at 12:10 pm
Part of why Mitsubishi sold a lot more in 2002, is that they had a lot more to offer. Yeah, most of them were not-now-fashionable cars, like the semi-sporty Eclipse coupe and convertible, but when you compete in 4 or 5 more market segments, you sell more vehicles. I still see an occasional Eclipse on the road, most of them looking well worn, but still running.
May 2nd, 2019 at 12:17 pm
My favorite Mitsubishi products were the Dodge Colt twin stick from the 1980s and the Dodge Stealth turbo. As I look back, Mitsu styling must have greatly benefited from Chrysler input.
May 2nd, 2019 at 12:22 pm
“…That’s a pretty impressive number from Tesla considering that its customers can no longer claim a $7,500 tax credit, and considering that Tesla is limited or banned from selling cars in 20 states.”
Fully agree, esp about its potential if it’s allowed to operate fairly in those 20 states and their 166 million consumers, and if I may add,
also considering that it is doing all of this with only 3 models,
of which one is a low-volume flagship sedan,
the other is a six-figure alleged SUV that looks more like a sleek GT Minivan, also very low volume,
and the only mass produced mid-to-high price model is a 4 door sedan, and we know how poorly sedans from all other makers are doing!
So imagine how much stronger its sales will be when it’s reasonably priced 3-row SUV, the Model Y, starts coming off the assembly line by the 10s of 1000s every month!
May 2nd, 2019 at 12:26 pm
3 its, not ‘it’s’ reasonably priced 3 row SUV above. I can’t believe I made this myself, after noticing it in so many others.
The review of a mid-priced Model 3 from Top Gear puts (I posted the link yesterday) puts to rest all the speculation about the interior, the fit and finish (some expected it to be your father’s Bricklin or Delorean) and the exterior of this affordable model.
May 2nd, 2019 at 12:27 pm
1 In distant antiquity, Dodge and Mitsu had one of the most potent coupes, their HP in some versions were the highest in their market segment (Dodge Stealth and Mitsu 3000 if I remember well).
May 2nd, 2019 at 12:38 pm
Very pleased with both our 2006 Outlander LS and our 2016 Outlander SEL. Both were/are great value propositions. They may not be superlative, but they are adequate as Hell for the price.
I think it’s funny how Mitsubishi led the big 3 in shedding passenger vehicles to concentrate on SUVs. Clearly they had the dire necessity to do something compared to GM and Ford, but you have to give them credit for guessing correctly which way the frog was going to jump.
To me, the Mirage is in the mix because if you’re going to get people out of buying a used car, you need something affordable. Those folks want something reliable that isn’t a 4-wheel penalty box. One of our field reps bought a Mirage hatch with her company car allowance and is quite satisfied with the little spud. Says the amenities are unexpected at that low a price-point.
May 2nd, 2019 at 12:40 pm
The 3000 GT was last sold longer ago than I realized,1999 model year. The similar Dodge Stealth was last sold 1996 model year.
May 2nd, 2019 at 12:44 pm
6 A used Civic is quite affordable and a far better choice. No wonder the Civic is the best selling of all cars sold in the US, even better than the Camry, which sold just a few more units than the Civic, but the Camry sells many 1,000s of units a month to the daily rentals.
as for “penalty box” this reminds me the reviews of the most affordable pure EV a few years ago, a tiny, spartan Mitsu 4-door. You can find low-mile used specimen for less than $5k.
May 2nd, 2019 at 12:54 pm
The Mirage and Chevy Spark are for those who just want a new car, with a new car warranty. Both are slow, crude, and noisy, but would work fine as a city car for some people. Also, they are both short, which would be a good thing for parking in some situations.
Yeah, a 3 year old used Civic or Corolla, for a similar price, would be a much better all around car,
May 2nd, 2019 at 1:10 pm
6. The Mitsu Mirage is one of CR’s lowest rated cars ever:
“Yet those enhancements don’t mask the weak, vibrating three-cylinder engine that delivers sluggish acceleration and a raspy chorus of lament, or the car’s clumsy handling. Though it’s relatively roomy, the depressing cabin feels drab, cheap, and insubstantial. In the end, there is no compelling reason to buy a Mirage, and, for the same price, there are many much better used cars available.”
May 2nd, 2019 at 1:49 pm
10 The one I remember being rated even lower than the Mirage was the previous-to-current generation Jeep Wrangler. The Wrangler was in CR’s top category for owner satisfaction, though, so buyers knew what they were getting.
Mirage is in the second lowest satisfaction category. As I remember, that means that still, more than half of buyers would buy the same car if they could do it over.
May 2nd, 2019 at 2:31 pm
11. Its hard to believe but there are people out there that know nothing about the car they own. They have no idea what size engine it has nor do they care. I have met people that would take a lesser car over a better one simply because they like the color better. To them it is simple a necessity to get from A to B and sadly will buy the inferior vehicles. That’s how Kia grew their market share. They offered a halfway decent car at a low price with the best warranty. It drew in those buyers that didn’t care about where it was made how reliable it was due to the warranty and knew they could get a new car cheap. They probably never read CR on any vehicle because it really comes down to the color, if it has carplay and price.
May 2nd, 2019 at 2:56 pm
12 A few years ago, I read somewhere that a significant number of BMW 3 series drivers didn’t know which wheels were driven.
CR’s owner satisfaction rating are interesting to look through. The Mercedes C-Class, for example, is in the second lowest owner satisfaction category, like a Mitsu Mirage. The C-Class is a nice car, but I suspect a lot of owners, especially first-time “premium brand) buyers start realizing that it isn’t almost twice as good as the Accord, Camry, (or whatever) that it replaced.
May 2nd, 2019 at 3:07 pm
13 The C class used to be Civic, not Accord or Camry sized. So it is quite cramped, at least the one I test drove, as well as the 190 before it. Even in the front.
But I 100% disagree with the rest of your post, which you have repeated often. Nobody makes such comparisons. Not even Honda or Toyota offer the Civic or the Accord as an alternative or replacement to the C or E class. They have Acura and Lexus for that.
Most Merc and BMW Buyers will comparison test their corresponding BMW and Merc models, maybe also Audi, even Lexus, but not anything else. Not even Porsche, it has a different market segment.
If all people chose cars by doing some first grade math, $/lb, $/hp, $/length, width, height, room etc, they would all drive Impalas. I know one, Rafi Haftka, a successful prof. down in Florida, now retired, formerly at Virginia Tech, who always did these ‘scientific’ ‘quantitative’ evaluations, and ALWAYS ended up with an Impala.
May 2nd, 2019 at 3:15 pm
13 PS Also, this question, is this car twice as good as the other car, while not at all applicable in comparing a Civic with a C class that costs twice as much, which are apples and watermelons, is indeed a valid question to ask, if you compare Apples to Apples, such as:
The $35K volt with the $70k ELR (which had even less room than the Volt)
The 5 or 6 versions of the same old car masquerading as a Chevy, a Buick, a Pontiac, a Cadillac, and even GMC (for trucks) and Saturns. Did I forget any division? here is it when it is 100% valid to ask if the top priced flavor is twice as good as the bottom, since they usually had the exact same mechanicals too.
The FORD clones which are all over the range of LINCOLN cars and SUVs. Here is where your Q is 100% valid!
NOT in Mercs and BMWs, which, at least until recently, were not pimped up clones of any lesser brand!
May 2nd, 2019 at 3:21 pm
Ι must say I had AAH on since 3 PM and the female they have on who talks too fast and too much and has this very nasal accent is really annoying to listen to. The others too, what have they been saying 20 minutes now? I hear “Rivian” every now and then. Seriously? Who cares.
May 2nd, 2019 at 3:27 pm
The current C-Class is a 7 inches shorter than a Camry or Accord, and has about 5 inches less rear leg room.
How many recent C-Class prospects, or buyers, have you talked to? The ones I know have mainstream brand cars, and are considering “moving up” to a Mercedes. In one case, it’s a Fusion hybrid owner considering a C-Class. She knows nothing about cars, but knows that Benzes have “prestige,” which seems to be her main interest in one. I think I have her convinced that a CLA would be a major step down from what she has. I doubt if she’s even heard of Acura, and the logical “move up,” by your criteria, would be a Lincoln, which certainly doesn’t have the M-B panache.
Yeah, Porsche certainly is in a much different market segment, especially the 911 variants, Boxter, and Cayman, though the Cayenne is a Q7 competitor.
May 2nd, 2019 at 3:30 pm
15 Yeah, the ELR wasn’t twice as good as a Volt, except maybe in appearance. That’s why it sold so poorly.
You forgot Oldsmobile.
May 2nd, 2019 at 3:32 pm
AAH is getting warmer. Peter made some informative comments, and then Gary made the best one:
“Is an Electric Pickup Truck the answer to the Question Nobody asked”?
I think so, and same for the BEV Harley. Good luck with those two!
May 2nd, 2019 at 3:34 pm
19 PS I’m not even sure about the (on sale in couple years) Tesla Y non-SUV SUV. I saw it when it was unveiled, and it is a very nice design and all, but it looks nothing like an SUV. More like a taller Model 3 Hatchy sedan!
May 2nd, 2019 at 3:36 pm
18 I knew I forgot something, and then I remembered Olds, before you reminded me.
Another good one was the $40k Corvette and the $80k Caddy Clone the XLR or whatever.
May 2nd, 2019 at 3:39 pm
http://www.mae.ufl.edu/haftka/
here he is ( it seems he has not retired yet), the Impala buyer (after maximizing his $/hp. $/length etc)
May 2nd, 2019 at 3:47 pm
21 …and the XLR didn’t perform as well as the Chevy version. The Cadillac was a retractable hardtop, for those who really wanted that, but I heard that it wasn’t the best execution of retractable hardtops.
22 Did he buy Impalas back when they were huge, rear-drive cars, or just since they became front drive?
May 3rd, 2019 at 6:33 am
The biggest difference between the Corvette and the XLR was that the Caddy had the NorthStar (I guess to try to allude to a more sophisticated powertrain; it wasn’t). It did, at least, have a more sophisticated styling, though that was surely subjective. And I don’t think we will see a derivative of the C8, as a Cadillac; at least not right away, or if somehow a niche can be conceived that isn’t apparent now.
There was a time when there was enough of a difference that the GM divisions made sense; each had different enough styling, engine options and creature comforts. Chevrolet, the everyman’s car, Pontiac, a little more performance oriented, Oldsmobile, subdued (perceived luxury), Buick, almost a Cadillac and Cadillac, a bit more ostentatious and the pinnacle of innovation. When Chevy moved up, there was just less room for the others to distinguish themselves.
May 3rd, 2019 at 7:22 am
24 I toured the Bowling Green plant when XLR production was starting up, and saw a pre-production, or early production one at a restaurant nearby. As I remember, the XLR actually went into production before the C6 Corvette. Is that right?
In the early ’50s, Oldsmobile was kind of the performance/technology division of GM. Like Cadillac, they had an overhead valve V8, starting in 1949, while Buick and Pontiac were still using very old design straight 8s as their biggest engines. Olds also used Hydramatic, while Buick used the, basically, one-speed Dynaflow.
May 3rd, 2019 at 7:26 am
23 Not that far ago, not in the 60s-70s, but in the late 90s and the 2000s. The early ones might be RWD I haven’t checked. He was a colleague of my first ever PhD student, who told me about this. The guy who told me, on the other hand, is a driver who always had very slow reflexes and drove very slow, and always bought Audis, and spent a ton of them trying to keep them in perfect shape. He bought cars and was very critical of SUVs and their buyers, even called them ‘reptilian brained’, then did a 180 and bought a used X5 with the 3 lt engine and low miles, and then a used Q5, and now he is very happy with them. Maybe his brain became reptilian too.. he was recently diagnosed with Alzheimers, dementia, etc. Really sad.
May 3rd, 2019 at 7:47 am
24 That time was really early when Alfred Sloan at GM fought Ford, who offered very few different models, by offering a car flavor for every taste. (and was very successful). Long time ago.
May 3rd, 2019 at 8:46 am
24,27 Having all of those brands worked for GM through the ’60s. Having 4 or 5 brands even worked for Chrysler, through the mid ’50s. Then, Ford decided to “catch up” by adding Edsel, just as Chrysler was getting ready to drop DeSoto.
May 3rd, 2019 at 9:30 am
There was no competition for the “Big 3″ in the 50s and 60s, even in the early 80s Toyota and Honda best-sellers were a tiny fraction of GM’s models sales. In the 60s there was only the VW Bug as a serious challenge from the imports, and the Euro luuxry brands had less than 10% of the luxury market in the US while now they (and Lexus etc other imports) have 90%
May 3rd, 2019 at 10:20 am
24-29, Exactly, back when the big three had most of the market, and GM had almost half, the multi-brands made sense and were sustainable. It’s too long a story of why they lost their mojo, so the reduction of brands makes pragmatic sense these days.
May 3rd, 2019 at 10:40 am
Toyota Corolla US sales began in 1968, the year VW Beetle sales peaked, at about 400K.
May 3rd, 2019 at 11:38 am
30 in fact GM’s peak share was close to 60%. Any other company with so much power would monopolize the market and get in trouble with the Antitrust laws.
May 3rd, 2019 at 11:40 am
31 When I bought the Pontiac 2000, in 83, there was no Camry. I could have bought a civic but it was about 25% more expensive and smaller, and also some colleagues (forget which ones) suggested that since I was employed by a state institution, I should support the local industry.
May 3rd, 2019 at 11:43 am
31 a few years ago the VW group (VW+Audi+Porsche+Lambo+Bentley) wanted to sell twice that, 800,000 a year, in the US, an ambitious target that was never achieved, but thanks to its SUVs, now it at least sells about 600,000, or 50,000 a month, 32k VWs, 20k Audis, 6k Porsches, and less than 1k of the rest.
May 3rd, 2019 at 11:53 am
32 In the ’60s, there was talk of breaking GM into Chevy, and “the rest.” As we know, it didn’t happen, and there was thought that two GMs would dominate even more than was already the case.
May 3rd, 2019 at 12:00 pm
35 did DOJ want to break it up or did the GM execs themselves? I remember when DOJ broke up the huge Standard Oil Co, JD Rockefeller tipped his friends to buy shares because he expected the parts to be worth more than the whole was, and he was right.
May 3rd, 2019 at 4:05 pm
DOJ, I think. It would have been when I was in about 8th grade, so I’m not sure.