January 9, 2017
Will Last Year's Binge Lead to a Sales Hangover?
Automakers sold more light trucks in December than any month in history, as heavy year-end incentives propelled the U.S. industry to a second consecutive annual record – though just by a hair. According to Automotive News, the frenzied last weeks of 2016, a year that continually defied signs that the market had already peaked, could mean a bigger slowdown than usual in January, which has been the weakest month in each of the past eight years. Many brands offered their biggest discounts since the Great Recession last month, undoubtedly pulling ahead some would-be sales from early 2017. Most analysts are forecasting a slight decline for the industry in 2017. But few saw 2016 finishing as strong as it did, and there's considerable uncertainty about how consumers and the industry will react to Donald Trump's actions after he's sworn in as president this month. For more on what’s ahead for the auto industry in 2017, click here.
SUV Debuts Dominate Detroit Auto Show
Automakers are rolling out a fresh pack of SUVs at the Detroit auto show to feed buyers' appetites for crossovers and sport utilities continues to explode, reports The Detroit News. On Monday, Nissan Motor Co. will debut the 2017 Nissan Rogue Sport, a smaller SUV than the Rogue it will bring to the U.S. market this spring; Audi will showcase its Q8 large SUV concept. Infiniti will bow its QX50 concept midsize SUV. BMW plans to show its X2 small SUV concept. And it's rumored Ford Motor Co. may show its new large Expedition SUV. In 2016, consumers purchased a record 17.55 million vehicles, and nearly 60 percent of them were trucks and SUVs, according to Autodata Corp. Those percentages have grown from 50-50 about three years ago; analysts and carmakers expect the demand for SUVs to keep growing. SUVs are no longer just for towing a boat but are everyday people haulers and daily commuters. For more on the SUVs dominating this year’s Detroit Auto Show, click here.
Volkswagen Exec Charged in Emissions Scandal
A Volkswagen executive was arrested Saturday in Florida on charges involving the German automotive company's emissions scandal, reports The Detroit Free Press. Oliver Schmidt, who was in charge of regulatory compliance for the company in the United States from 2014 to March 2015, is to be arraigned today, according to two anonymous sources cited in the Times report. The Associated Press reports it has corroborated the report with one anonymous source of its own. The company previously admitted to rigging cars to beat emissions tests and is paying about $11 billion to buy back diesel vehicles and to compensate owners. It released a statement to the Free Press this morning: "Volkswagen continues to cooperate with the Department of Justice as we work to resolve remaining matters in the United States. It would not be appropriate to comment on any ongoing investigations or to discuss personnel matters.” For the latest on Volkswagen’s emissions investigation, click here.
Lexus Unveils Next-Generation LS Flagship
WardsAuto reports that Lexus unveils the next-generation of its LS flagship sedan this morning at the 2017 North American International Auto Show, with pronouncements about what the car can do for the premium industry. “Not only will the LS symbolize the Lexus brand, it will become the definitive new-generation luxury car embodying Japanese tradition and culture,” Toshio Asahi, LS chief engineer, says in a statement. “As such, this global pinnacle must go far beyond what the world expects from a luxury car.” Due in late 2017, the fifth-generation LS will use a 10-speed automatic transmission, as does the forthcoming Lexus LC 500 coupe. The high number of gears is becoming a trend, and Lexus follows in the footsteps of General Motors and Ford which are launching a jointly developed 10-speed in the Chevy Camaro and Ford F-150. For more on the next-generation Lexus LS, click here.
Jaguar Land Rover Sells Record 583,313 Cars in 2016
Britain's biggest carmaker Jaguar Land Rover sold a record 583,312 cars last year as the Indian-owned firm continues its rapid expansion with the aim of building 1 million vehicles a year at the turn of the decade. Reuters reports that sales were up 20 percent from the previous year, although sales growth slowed to 12 percent year-on-year in December, the carmaker said. The automaker, which spent years in the doldrums before being bought by India's Tata in 2008, has since invested heavily in new models and expanded production with plants in China and Brazil and construction of a new site in Slovakia under way. Sales of luxury Jaguar models rose 77 percent to 148,730 units in 2016 due to strong demand for a range of new high-end products including the F-PACE, the brand's first off-roader which was launched last year. Europe was the carmaker's biggest overall market, accounting for almost a quarter of total demand. For more on Jaguar Land Rover’s sales record, click here.
Around the Web
Take AIADA's 2017 Membership Survey [Click Here]
7 Self-Driving Car Milestones to Look Out for in 2017 [Business Insider]
Nissan Introduces 2017 Rogue Sport [USA Today]
Riding in Cars With Computers [CNET]