October 26, 2015
Toyota Beats Volkswagen and GM in Global Vehicle Sales
According to U.S. News and World Report, Toyota was the world's top-selling automaker for the first nine months of this year, selling nearly 7.5 million vehicles, and overtaking Volkswagen which was in the No. 1 spot for the half year. Toyota Motor Corp.'s global sales for the first three quarters totaled 7.498 million vehicles, down 1.5 percent from the same period the previous year, according to numbers released Monday. Volkswagen AG of Germany sold 7.43 million vehicles, almost unchanged from the previous year, while GM sold 7.2 million vehicles, down 1 percent. Volkswagen overtook Toyota for January-June, the first time it had come out on top in such tallies. Its sales may suffer because of a scandal, which hit last month, in which its cars were found equipped with software that allowed them to cheat U.S. emissions tests. Detroit-based GM was the top-selling automaker for more than seven decades until being surpassed by Toyota in 2008. GM retook the sales crown for one year in 2011, when a tsunami and quake disaster struck northeastern Japan, disrupting production. Last year, Toyota, which makes the Prius hybrid, Camry sedan and Lexus luxury models, sold 10.23 million vehicles. For more on who is ahead in the global auto sales race, click here.
A Stealth Giant in Auto Retail
The titans who own the nation's largest privately held dealership groups are mostly familiar names: high-profile businessmen such as Rick Hendrick, John Staluppi, Herb Chambers, Rick Case, Dave Wilson, Alan Potamkin, and a handful of other superstars. But, reports Automotive News, the biggest of them all appears to be a hard-nosed, hard-driving Florida entrepreneur you have never heard of. Through a string of acquisitions in recent years, Terry Taylor's obsessively secretive West Palm Beach, Fla.-based company, Automotive Management Services Inc., has quietly amassed the No. 1 private new-car dealership group in the country – at least in terms of the number of rooftops it owns. Taylor's latest addition is 11 stores from Sam Swope Auto Group of Louisville, Ky., one of the nation's best-known family-owned dealership companies. The sale comes less than a year after the group's founder, Sam Swope, died. For Taylor – seemingly the most aggressive buyer of dealerships in the U.S. these days – the Swope deal last month was just another day at the office. Taylor has told acquaintances he plans to have 200 stores within a year, which would make his company second only to AutoNation and Penske Automotive Group in rooftops. Read more about dealership group owner Terry Taylor here.
Car Sales, Student Loans Fuel Record Consumer Borrowing
According to The Detroit News, it’s starting to feel as if the good times have returned at Diamond Jim’s Motor Cars, with its sales of used cars up at least 30 percent this summer from the same period last year. “We’re doing well, we’re having fun,” said Tom Letizia, the owner of Diamond Jim’s, which operates automotive lots in the Milwaukee area. “We made it through the ’08, ’09, 2010 drought, and it’s now getting back to the glory days like it used to be. People are buying cars, people are spending money.” The Federal Reserve reported earlier this month that consumer borrowing in the United States is at a record level of $3.47 trillion. Economist Brian Jacobsen said looking at what goes into overall consumer spending offers a glimpse of where it may be headed. “Autos and student loans are at record highs and don’t look very sustainable. Revolving credit, like for credit cards, are just beginning to move higher. I actually view the increase in revolving credit as positive. It’s the first time credit card debt has increased in the course of this economic recovery. That can show consumer confidence and support spending.” Read more about what’s fueling consumer borrowing here.
Diesel Scandal Opens Door for Other Technologies
The Volkswagen diesel scandal has drawn fresh attention to automakers’ drive toward alternate fuels and clean engine technology. It won’t be the end of diesel engines, but it could sharpen the focus on other technologies, reports The Detroit Free Press. “Automakers have made great progress” improving fuel efficiency and reducing emissions to meet standards that take hold in 2025, Autotrader senior analyst Michelle Krebs said. “Far greater than the skeptics expected.” Some companies have announced changes to their long-term technology strategies in the weeks since it became clear that VW purposely built millions of vehicles that violated environmental laws around the world. VW promises to build a new range of electric vehicles. Toyota expects to build nearly exclusively hybrids and fuel cell cars by 2050. “The challenge is getting people to buy electric vehicles and hybrids,” Krebs said. “Low oil prices and a strong economy make it harder.” Technologies that combine electricity with traditional engines are becoming commonplace. Within a few years, you’ll be hard-pressed to find an engine that doesn’t shut off when you’re idling at a stop light, recapture energy from braking and get a battery-assisted boost for passing. Read more about the changing alternative fuel marketplace here.
AutoNation Nears Purchase of Texas Dealership Group
AutoNation Inc. is poised to make its second huge acquisition deal of 2015, reports Automotive News. The nation’s largest new-car retailer is negotiating to buy Allen Samuels Auto Group based in Waco, Texas. The deal is expected to be signed and announced this week, said the source. Allen Samuels was ranked 79th on the Automotive News list of the Top 150 dealership groups in the U.S. The group reported revenue of nearly $735 million for 2014. It’s unclear how many stores are included in the likely purchase. Allen Samuels is heavy on domestic brands, particularly Chrysler-Dodge-Jeep-Ram stores. According to the company’s website, it also has Chevrolet and Hyundai dealerships and a Mercedes-Benz store. Should the deal be finalized, it will cap what’s become a major acquisition year for AutoNation. The retailer’s announced deals for 2015 already represent an estimated $929 million in added annual revenue. That’s its biggest total since 1999 and double last year's pace. AutoNation's 2014 purchases had combined annual revenue of $450 million. In August, AutoNation announced two deals that showed it was getting into smaller markets and picking up major business with Fiat Chrysler Automobiles brands. For more on AutoNation’s latest acquisition, click here.
TradeRev Expands Its Footprint Into the Carolinas, Florida
TradeRev is bringing its dealer-to-dealer vehicle appraisal and auction tool to the U.S., starting with the Carolinas and Florida. TradeRev is a widely used platform in Canada that is quickly gaining traction across North America. ADESA, which acquired a 50-percent stake of TradeRev in August 2014, is able to offer back office support during this expansion. “The Carolinas and central Florida have a high concentration of car dealers,” said Mark Endras, TradeRev president and co-founder. “Entering these two markets gives us the perfect opportunity to share our unmatched, innovative technology with a greater dealer market as we continue to grow across the U.S.” TradeRev gives dealers the power to launch live, one-hour, dealer-to-dealer auctions from a mobile device. Using TradeRev makes the remarketing process more productive and profitable for dealers. It allows them to close more retail deals, minimize risk during the trade-in process and sell vehicles quickly and at reduced expense. To learn more about TradeRev, visit traderev.com.
Around the Web
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Honda to Show Off Conceptual Ridgeline at SEMA [Autoblog]
German Luxury and Muscle Cars Can Co-Exist [WardsAuto]
Aston Martin to Sell Just One James Bond 'Spectre' Car [CNN Money]