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Auto Sales Plunge in BRIC Markets
More BRICs in the Global Car Fleet
Global Auto Market Continues to Expand
Auto Sales Tumble 24 Percent
Luncheon at AAPEX to Feature Presentation by O'Reilly Auto Parts' Vice President of Merchandise
Auto Sales Rate Hits 16-Year Low
U.S. Dollar Rises Against the Euro
U.S. Auto Sales Pace Drops to 10-Year Low
Mike Peace Named National Sales Manager for Timken's Automotive Aftermarket
AAIA Introduces AAIA SmartBrief, New Electronic Newsletter for Members
Former Toyota Exec Named New Dana CEO
New DENSO President to be Elected in June
Auto Sales Slam on the Brakes
Automakers Predicting Strong China Sales
12/11/08
Auto Sales Plunge in BRIC Markets
Passenger car sales fell sharply last month in Brazil, Russia, India and China (BRIC) – the core of the emerging-nation market that established OEMs have been counting on to offset slumping demand in their home markets.
Car sales fell 19 percent in India last month vs. a year earlier, the sharpest decline in nearly six years, reports the Society of Indian Automobile Manufacturers.
Year-on-year demand for cars in India has fallen in four of the past five months as interest rates rose and loans become harder to obtain. Commercial truck sales dropped nearly 50 percent in November, including declines of 60 percent and 67 percent at Tata Motors Ltd. and Ashok Leyland Ltd., respectively.
Several truck joint ventures between domestic and foreign manufactures have been delayed, says the Financial Times. One example: Nissan Motor Co. and Ashok Leyland will postpone their light commercial truck venture by six months until late 2011.
Russia reported earlier this week that sales of foreign brand autos fell 15 percent in November, the biggest decline in at least four years, amid tight credit and waning consumer confidence. Ford Motor Co. responded to slowing sales by announcing it will halt production for a month at its only Russian assembly plant, beginning Dec. 24.
Vehicle sales in the remaining BRIC nations – Brazil and China – fell 25 percent and 10 percent, respectively, last month.
Source: AutoBeat Daily, Dec. 11, 2008
11/25/08
More BRICs in the Global Car Fleet
The global passenger vehicle fleet is expected to grow nearly fivefold to 2.9 billion cars and trucks by 2050 vs. 600 million in 2005, led by expansion in the Brazil, Russia, India and China (BRIC) markets, The Economist reports, citing figures from the International Monetary Fund (IMF).
China’s car population will have long supplanted America’s as the world’s largest by mid-century, the newspaper says. Over the same period, IMF expects India’s annual car market to multiply 45 times to 367 million vehicles.
The four emerging markets are expected to sell a combined 14 million vehicles this year. This likely will put them collectively ahead of the U.S. for the first time. China already is the second-largest auto market in the world, and it’s on pace to pass the U.S. early in the next decade.
A separate report by PricewaterhouseCoopers forecasts that China will account for 14 percent of global vehicle production by 2015. By then, India and Brazil are expected to each contribute another 5 percent of the total, with Russia accounting for 4 percent.
Other estimates say that between 2010 and 2015, gross domestic product growth is expected to average 8.0 percent in China, 5.9 percent in Russia, 5.3 percent in India and 2.7 percent in Brazil.
Source: AutoBeat Asia, Nov. 24, 2008
11/20/08
Global Auto Market Continues to Expand
Despite the global economic crisis, the world’s auto industry is still on track to sell a record 59 million cars this year, reports The Economist.
Combined sales in the emerging BRIC (Brazil, Russia, India and China) will be more than 14 million vehicles, overtaking the U.S. for the first time. Sales in Brazil alone have increased by nearly 30 percent in each of the last two years, notes The Economist, which expects Russia to overtake Germany as Europe’s biggest market in the next two years.
The total number of cars in use worldwide is likely to reach 2.9 billion by 2050 from about 600 million in 2005, according to the International Monetary Fund. By then, says The Economist, China’s car fleet will be the world’s largest, and India’s fleet will have multiplied 45 times to 367 million vehicles.
Keeping up with the growth will require more roads and greener vehicles, the newspaper says. But it adds that “people simply like cars, even if the environmentalists disapprove.”
Source: AutoBeat Daily Europe, Nov. 18, 2008
10/7/08
Auto Sales Tumble 24 Percent
Carmakers sold 964,900 light vehicles in the U.S. in September, a 24 percent decline in the daily selling rate, which adjusts for one less selling day last month than in September 2007. September was the 11th consecutive month of declining U.S. sales and the first to fall below 1 million units since January 1993. Demand last month ran at an annual rate of 12.5 million vehicles, the lowest pace in more than 16 years, vs. a 16.2 million-unit clip a year earlier, says Autodata Corp. Every major automaker posted lower selling rates, and all except Daimler (-5 percent) and Volkswagen (-6 percent) suffered double-digit declines.
General Motors fared the best among the biggest OEMs with a 12 percent decline that boosted its market share for the month to 29.1 percent, the highest in three years and nearly four points more than a year earlier. The company hiked fleet sales by 17 percent from a year earlier, according to Dow Jones Newswires. GM’s relative strength lifted the Big Three’s domestic-brand market share to 52.3 percent last month from a record low of 42.7 percent in July.
The selling rate dropped 34 percent at Nissan, 31 percent at Ford and 30 percent at both Chrysler and Toyota. The sales rate at Hyundai and Honda fell 22 percent and 21 percent, respectively. For Honda and Toyota, those were the biggest percentage declines since the 1980s.
Source: AutoBeat Daily, Oct. 2, 2008
9/23/08
Luncheon at AAPEX to Feature Presentation by O’Reilly Auto Parts’ Vice President of Merchandise
The Automotive Specialty Products Alliance will hold its 7th annual Retail Review luncheon on Wednesday, Nov. 5, during the Automotive Aftermarket Products Expo (AAPEX) in Las Vegas, Nev. A popular highlight of the AAPEX show for the past six years, this year’s event will feature Mike Swearengin, senior vice president of merchandise for O’Reilly Auto Parts. Swearengin will provide an in-depth discussion of trends, opportunities, predictions and keys to success in the automotive chemical and appearance markets.
The luncheon will be held at the Venetian Hotel on Nov. 5, 2008 from 12 p.m. to 1 p.m. For more information and to register, contact Sean Moore at 202-833-7308 or e-mail smoore@cspa.org.
8/5/08
Auto Sales Rate Hits 16-Year Low
Automakers sold 1.14 million light vehicles in the U.S. in July, down from 1.31 million a year earlier. That represents a 20 percent decline in the daily selling rate, which adjusts for two more selling days last month than in July 2007.
Vehicles sold at an annual rate of 12.55 million units – the slowest pace since April 1992 – vs. a 15.48 million unit pace a year earlier, according to Autodata Corp. It was the tenth consecutive month of falling sales, accelerated by high gasoline prices, tight credit and the weak U.S. economy.
Detroit’s three domestic companies accounted for a record low 42.7 percent market share in July. As a group, Asian carmakers captured 49 percent of the American market, with Japanese brands grabbing a 42.9 percent share.
U.S. automakers posted a 29 percent drop in the daily sales rates for their domestic brands. Chrysler’s sales rate plummeted 34 percent, as the company’s Chrysler and Jeep brands each fell 44 percent. Sales fell 20 percent at Ford (led by a 54 percent drop in demand for SUVs) and 32 percent at General Motors.
Source: AutoBeat Daily, Aug. 4, 2008
5/5/08
U.S. Dollar Rises Against the Euro
The American dollar rose to its highest level in five weeks against the Euro last week. Analysts say the shift was driven by improved employment data from the U.S. government and speculation that the Federal Reserve will stop lowering overnight lending rates.
The dollar ended last week at $1.5455 against the Euro after touching $1.5430 on Friday – its strongest level since March 25. The American currency has risen by 3.5 percent after falling to a record low of $1.6019 against the Euro on April 22.
The Euro weakened against the Japanese yen last week, slipping 0.6 percent to 151.40 by Friday. It also declined against the British pound, which is now at its highest level in more than a month against the Euro.
Source: AutoBeat Daily Europe, May 5, 2008
U.S. Auto Sales Pace Drops to 10-Year Low
Sales of cars and light-duty trucks in the U.S. fell in April to an annualized rate of 14.4 million units – the lowest level since August 1998, according to Autodata Corp. in New Jersey. Analysts blame high fuel prices, the sluggish U.S. economy and falling consumer confidence.
The decline hit automakers from Asia, Europe and the U.S. Demand for American domestic brands fell last month by 29 percent at Chrysler, 23 percent at General Motors and 18.5 percent at Ford. The biggest losers among European brands were Volvo (-19 percent), Audi (-12 percent) and Mercedes-Benz (-10 percent).
Many Asian automakers suffered too. Toyota Motor Corp.’s daily sales fell by 4.5 percent in April, marking the fifth consecutive month in which the company failed to match or exceed year-ago volume. Sales rates also fell for Hyundai (-7 percent) and Nissan (-2 percent). A few companies posted higher sales, with Kia and Subaru reporting their best April results ever. Honda, Jaguar, Mazda and Mini also improved.
Sales jumped 27 percent for subcompact cars and fell 38 percent for large cars. April sales were down sharply for large SUVs (-37 percent), big pickup trucks (-28 percent) and minivans (-27 percent).
Source: AutoBeat Daily Europe, May 5, 2008
4/24/08
Mike Peace Named National Sales Manager for Timken's Automotive Aftermarket
Timken has appointed Mike Peace national sales manager for the Automotive Aftermarket (AAM), effective immediately. Peace will report to Tom Tecklenburg, director, Global Automotive Aftermarket.
Most recently, Peace served as zone manager for Timken’s AAM Group. His successor as zone manager is expected to be named in the near future. In his new position, Peace will have responsibilities for the automotive and heavy duty aftermarket in the United States and Canada.
AAIA Introduces AAIA SmartBrief, New Electronic Newsletter for Members
AAIA members will begin receiving a new electronic newsletter on Thursday, April 24, called AAIA SmartBrief. The newsletter, which will replace the segment FACTS newsletters, will be sent twice weekly on Tuesday and Thursday, and will be sent from the e-mail address aaia@smartbrief.com. In addition to AAIA news, each issue will contain news on current developments impacting the industry, technology trends, business leadership, sales and marketing best practices, and government and regulatory news, as featured in Capital Report. Individual segment news will be conveniently accessed from each SmartBrief.
4/24/08
Former Toyota Exec Named New Dana CEO
Dana Holding Corp. has named Gary Convis to the post of CEO. Convis was appointed to Dana's new board of directors in January 2008 after retiring from Toyota Motor Corp., where he had spent more than 20 years, culminating in his role as chairman of Toyota Motor Manufacturing, Kentucky.
Convis comes to Dana after more than four decades spent at Toyota, General Motors Corp. and Ford Motor Co. He became the first American president of Toyota's largest plant outside Japan, Toyota Motor Manufacturing, Kentucky (TMMK), in 2001. He was named chairman of TMMK in 2006 and retired in 2007. Prior to this, in 2003, he was the first American manufacturing executive appointed by Toyota Motor Corp. (TMC) to be a managing officer of TMC, as well as executive vice president of Toyota Motor Engineering & Manufacturing North America, Inc. Prior to serving in these roles, Convis spent 16 years at New United Motor Manufacturing, Inc., a joint venture between GM and Toyota. Previously, he spent more than 20 years in various roles with GM and Ford Motor Co.
Convis earned a bachelor’s degree in mathematics with a minor in physics from Michigan State University. He will continue to serve as a member of Dana's board. He is also a board member of Cooper-Standard Automotive Inc. and Compass Automotive Group, Inc.
New DENSO President to be Elected in June
DENSO has announced plans to elect Nobuaki Katoh as new president and CEO after the annual shareholders meeting in June. Current president and CEO Koichi Fukaya will be promoted to vice chairman and Akihiko Saito will remain as chairman.
Katoh joined DENSO in 1971, after earning a bachelor’s degree in business and commerce from Keio University in Tokyo.
After serving as general manager of the Air-Conditioning Planning and the General Planning departments, Katoh was named one of DENSO’s managing officers in June 2004. He became president of DENSO’s European headquarters in June 2005.
In June 2007, Katoh was promoted to senior managing director responsible for DENSO’s Corporate Center and Thermal Systems Business Group. His responsibilities included planning and implementation of corporate management strategies.
Fukaya has served as DENSO’s president and CEO since June 2003. During his presidency, DENSO expanded its facilities globally, including Japan, China, Europe and North America.
Auto Sales Slam on the Brakes
Auto sales are falling harder and faster this year than anyone anticipated because of a toxic combination of factors not seen since the oil shock of the 1980s. In addition to a weak economy and sagging consumer confidence, gasoline prices have risen to record highs and credit is hard to come by, forcing dealers to turn away prospective customers. These rough conditions are prompting many auto executives to rethink their assumptions that sales would rebound in the second half of 2008 after a short-lived slump.
To read the full story, visit www.detnews.com/apps/pbcs.dll/article?AID=/20080421/AUTO01/804210355.
Source: The Detroit News, April 21, 2008
Automakers Predicting Strong China Sales
Global automakers issued ambitious forecasts Sunday of up to 65 percent sales growth in China's booming market this year – a striking contrast to the gloom in the United States and elsewhere. Sales of some individual models to newly prosperous Chinese drivers soared by up to 100 percent in the first quarter over the same period in 2007, said executives speaking at the Beijing auto show.
To read the full story, visit www.msnbc.msn.com/id/24227372.
Source: Associated Press, April 20, 2008 |