Follow us on social media:
Runtime: 6:45
0:06 April Sales Weaker Than Expected
0:32 Cars Falling, Trucks Flat
0:57 Tesla Posts Decent Numbers
2:16 Mitsubishi Tries to Claw Back
3:31 Kia Reveals Niro EV Price
3:57 VW Designs AVs For People with Disabilities
4:35 Automakers Stumble in China
5:21 2019 Wards Best Interiors Winners
Visit our sponsor to thank them for their support of Autoline Daily: Bridgestone.
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.
Thanks to our partner for embedding Autoline Daily on its website: WardsAuto.com
John McElroy is an influential thought leader in the automotive industry. He is a journalist, lecturer, commentator and entrepreneur. He created “Autoline Daily,” the first industry webcast of industry news and analysis.
