December 2, 2016
November's Auto Sales Rebound, Keep 2016 on Record Track
November’s sales climbed 3.7 percent on the strength of light truck demand, up 8.5 percent from a year ago, and generous holiday deals, reports AIADA’s Market Watch. Honda’s sales rose 7.9 percent from November 2015, Hyundai’s sales were up two percent, Toyota saw an improvement of 5.3 percent, and Volkswagen’s sales rose 24.3 percent, ending a 12-month streak of declines. Subaru continued its 60-month run of sales improvements with 51,308 units sold – a November record. “December is historically a great month for auto sales,” said AIADA President Cody Lusk. “Thanks to a stabilized industry and promising economic conditions, international brand dealers are coming off of a tremendous November and looking to close out 2016 on a high note.” Read more about how international brands fared in the November U.S. auto market here.
Toyota to Reveal New Camry at Detroit Auto Show
According to The Detroit News, the North American International Auto Show is still a month away, but Toyota is already teasing news of one of the show’s most anticipated products: the all-new, 2018 Toyota Camry sedan. The midsize Camry has been the best-selling car in the U.S. market for 14 years running and is on course to be No. 1 in 2016 as well. But with sedan sales under assault from crossovers – including Toyota’s own RAV4 and Highlander – the eighth-generation Camry will be particularly important as one of the Japanese company’s franchise cars. Toyota put out a teaser image of the new Camry’s rear quarter-panel. Sharper body lines and a long, thin vertical taillight graphic suggest the car continues styling cues from the newly released Toyota Prius and Prius Hybrid. The sharp body lines also echo Toyota’s Lexus luxury brand which has forged a more polarizing design direction in recent years. For more on the new Camry, click here.
Car Dealers Take Steps to Help 'Underwater' Buyers Trade Up
In the housing industry, negative equity is typically seen as a deal breaker. The opposite is true in the car business, reports The Wall Street Journal. People who bought passenger cars when gasoline prices were higher are now wanting to trade up to crossover wagons, pickups or sport-utility vehicles, confident that today’s lower gas prices are sticking around. The problem for many of these shoppers: The principal on the loan they took out on their sedans, coupes or compacts after the financial crisis is larger than the car’s resale value. Dealers and car makers are reaching deeper into their toolbox of financing incentives to get customers who owe more than their cars are worth to drive off the lot in new vehicles. These efforts are helping to keep the industry’s selling pace for light vehicles cruising at near-record levels, even as underlying consumer demand has weakened after six years of growth in the U.S. For more on how underwater car buyers are trading up, click here.
Penske Acquires Used-Only Dealership Group
The nation’s second-largest auto retailer has signed a deal to acquire CarSense, a stand-alone retailer of used vehicles with stores in Philadelphia, Pittsburgh, and southern New Jersey, reports Automotive News. The acquisition is expected to generate about $350 million in estimated annual revenue. “With the completion of this acquisition, we intend to expand our share of the growing used-vehicle marketplace,” Penske Executive Vice President Whit Ramonat said in a statement today. The deal will also further diversify Penske’s business, which includes commercial truck dealerships and car dealerships outside the U.S., said Chairman Roger Penske in the statement. He added that it offers Penske “an opportunity to grow its customer base while capitalizing on the highly fragmented used automotive retail segment.” For more on Penske’s new acquisition, click here.
BMW Shoppers Want Dealership VIP Treatment–And Get It
According to WardsAuto, the Rusnak name has been part of southern California car culture ever since Paul Rusnak began selling Triumphs in 1961. Noting California car buyers’ growing interest in European sports cars at the time, Rusnak opened a Porsche/Audi store in 1970. The Rusnak Auto Group has since expanded to 12 other international brands: Jaguar, BMW, Rolls-Royce, Bentley, Mercedes-Benz, Sprinter Trucks, Alfa Romeo, Fiat, Volvo, Hyundai, Land Rover, and Maserati. Dealerships are in Pasadena, Westlake Village, Arcadia, Anaheim Hills, Loma Linda and Torrance, all in the greater Los Angeles area. WardsAuto spoke to Rusnak BMW General Manager Al Lemoine and General Sales Manager Mehran Forutan. Their store sold 5,622 units in 2015 (3,704 new, 1,918 used) and posted $366,218,289 in total revenue. Find out what his BMW shoppers want and how his dealership group delivers it here.
Working for America: Join AIADA's Annual Meeting in New Orleans This January
International nameplate dealers are working for America. In 2015, they created 570,000 jobs generating a payroll of $32 billion by selling some of the safest, most innovative, and popular vehicles on U.S. roads. Please join AIADA in New Orleans on January 29, 2017, during NADA's annual convention, for the 47th Annual Meeting and Luncheon. Keynote remarks will be provided by American Honda Motor Co. Vice President John Mendel, who is driving Acura and Honda's success in the U.S. AIADA will also welcome its 2017 Chairman, Paul Ritchie from Maryland. Finally, the recipient of the 2017 David F. Mungenast Lifetime Achievement Award will be honored. If you'd like to nominate an outstanding member of the industry for this honor, please click here. Register today for AIADA's 47th Annual Meeting and Luncheon in New Orleans here.
Around the Web
Amazon's 'Grand Trou' Comes Home to England [USA Today]
Rolls-Royce SUV Takes Shape [MotorAuthority]
The Slow Death of the Manual Transmission [Autoblog]
Chinese Buyers Rush for Luxury Cars [Bloomberg]