August 11, 2016
Dealership Throughput Forecast to Drop
Automotive News reports that for the first time in seven years, U.S. dealership new-vehicle throughput is expected to decline, according to most light-vehicle sales forecasts and data from Urban Science. The firm reported the average dealership throughput last year was 966. The company forecasts throughput will be 960 this year. That’s still higher than 2014’s 921. Throughput is defined as the number of sales divided by the dealership count. Most forecasts for U.S. new light-vehicle sales range between 17.3 million and 17.7 million vehicles, compared with last year’s 17.5 million. U.S. dealership count has remained relatively flat since the end of 2015, making the possibility of a new throughput record “questionable,” said Mitchell Phillips, global data director at Urban Science. From 1999 to 2007, throughput was fairly stable at 770 to 780, he said. Throughput climbed sharply following the Great Recession. For more on dealership throughput expectations, click here.
Jaguar is the Hottest Car Company in America
Tata Motors’ Jaguar brand has rocketed to the front of an increasingly listless crowd of vehicles in America, reports The Detroit News. In the first seven months of this year, Jaguar sales surged 59 percent, handily outpacing every other brand on the road. Volvo was a distant second, with a 29 percent increase in cars sold. Most of Jaguar’s luxury rivals have reported dips in sales for the year to date. “We couldn’t be more tickled,” said Chris Marchand, executive vice president of operations at Jaguar Land Rover North America. “Foot traffic in dealerships has more than tripled.” The brand overhauled its entire lineup in less than a year, rolling out a new version of its midrange XF sedan in November, followed a few months later by an updated XJ, its most expensive sedan. In May, U.S. dealers started selling two all-new models, the entry-level XE sedan and the F-Pace, Jaguar’s first SUV. It was a blitz of metal-based marketing that appears to be working handsomely. For more on Jaguar’s surge, click here.
Mercedes-Benz Stays on Course to Win 2016 Sales Crown From BMW
Mercedes-Benz sales through July rose at more than twice the pace of arch-rival BMW’s, keeping it on course to reclaim the luxury-car lead this year thanks to a sportier line-up and a new crop of SUVs, reports Bloomberg. Deliveries by Mercedes jumped 12 percent to 1.17 million vehicles in the first seven months of the year, compared to a 5.6 percent increase for BMW AG’s namesake brand. That put Mercedes more than 30,000 cars ahead of its rival. Third-place Audi gained 5.2 percent to 1.1 million vehicles. The three German carmakers are tussling over the top spot in global sales that BMW has held since 2005. Mercedes is set to move to No. 1 for the year after bulking up its offering of sport utility vehicles with additions such as the GLC crossover and introducing a new version of its E-Class business sedan. For more on Mercedes-Benz’s dominance, click here.
CPO Sales Reach Second-Highest Level
July was the second-best month of all time for certified pre-owned car sales, reports Auto Remarketing. The industry sold 234,243 CPO vehicles last month, which beat year-ago figures by 5.6 percent. The only month stronger was March, when 243,957 certified vehicles were sold. Five brands (BMW, Lexus, MINI, Nissan, and Subaru) reached best-ever sales, Autodata said. July’s daily sales rate of 9,009 marked just the third time the DSR has exceeded 9,000, according to the firm. Through seven months, there have been 1.56 million CPO sales, which is up 4.1 percent year-over-year. After selling 77,287 CPO units in July (down 2.2 percent), domestics have now moved 550,570 vehicles year-to-date (down 0.3 percent). Asian brands sold 118,939 certified vehicles in July (up 13.7 percent) and had seven-month sales of 755,715 (up 10.4 percent). European brands have moved 252,582 CPO units so far this year (down 2.9 percent), after selling 38,017 in July (down 0.8 percent). For more on CPO sales, click here.
Toyota FInancial's Texas Move Under Way
Automotive News reports that Toyota Financial Services has begun its move to Plano, Texas. In addition to the relocation, Toyota’s captive plans to make other changes, such as hiring locals and building a more open office environment. In 2014 Toyota Financial Services announced it would move its headquarters to Plano from Torrance, Calif., to join Toyota Motor Sales, Toyota Motor Engineering & Manufacturing North America, and Toyota Motor North America. The move to Texas is happening in phases, Derrick Brown, spokesman for Toyota Financial Services, told Automotive News. Toyota Financial expects all team members to move into the new campus, which is currently under construction, by the end of 2017. So far, about 173 Toyota Financial team members have relocated to Plano. Another 150 or so will move before year end. For more on Toyota Financial’s move to Texas, click here.
Webinar: Used Car Free Fall?
Have used vehicle sales leveled, and are increased wholesale volumes compressing profits? Lease return volume continues to build, just as used vehicle sales volumes appear to be showing some signs of leveling, or even dropping, in certain markets. Are retail margins under pressure and wholesale losses increasing? Different markets are reporting early signs of a possible used vehicle sales slowdown. As wholesale volume builds online and in the lanes at the auctions, how do you protect yourself from an uncertain wholesale market? Join AIADA’s AutoTalk webinar on Tuesday, August 16th at 10 a.m. and 4:00 p.m. EDT to hear Bob Grill, Senior Partner Development Manager at Carfax, and Mike Rossman, past Vice President of Sales at AutoNation, discuss these important used car trends and how to protect your dealership from a possible used car free fall.
To register for the 10:00 a.m. EDT session, click here.
To register for the 4:00 p.m. EDT session, click here.
Around the Web
Hyundai Releases Official Teaser for the All-New i30 [CarScoops]
Mercedes Teases Massive New Maybach Coupe [Autoblog]
7 Great Lease and Rebate Deals on 2016 Cars [CBS News]
How a Legendary Mercedes Unites a Family [WSJ]