Wednesday, January 5, 2011 | Edited by Daniel Moores
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New Vehicles To Be Unveiled in Detroit, Driving Hopes for Major Ad Spend What madman would visit Detroit in the dead of winter of his own accord? Or in his own Accord? This year, you'd be mad not to. On Jan. 10, auto marketers, designers, executives, paparazzi, writers, buffs, hangers-on, pundits, the odd mugger and a mess of new and conceptual cars will converge on Detroit like pack ice in McMurdo Sound. This is, after all, the year in which automakers will talk about their recoveries from near-death in the last two years, and the show presages a very busy year for new-vehicle intros. As the show opening draws near, attention turns to Detroit for global unveilings and news from an optimistic industry that has a major impact on ad spending. The show's organizers say more than 4,500 automotive journalists from all corners of the planet will converge to see 40+ debuts. The Detroit show focuses more on traditional cars and trucks, while the L.A. show that precedes it tends to be more about alternative powertrains and eco-programs. The focus is on mass-market internal combustion vehicles. Ford will make a point of demonstrating that its new truck engines are as good as the ones the company used to outsource. The company's power-train engineers will dismantle an F-150 EcoBoost engine that has gone several hundred thousand miles in tests -- Ford says it has gone a distance equal to six times around the earth and three quarters of the way to the moon. The automaker says it will disassemble and examine the motor for long-term durability in front of the public on Jan. 15 (one of the public days). This is the same engine that has been central to the automaker's marketing campaign centered on Internet videos of that same engine first getting run for 150,000 miles on a dynamometer, then put in a truck that was driven around the country to do hauling tasks versus competitive vehicles. Ford then put the engine in the truck that competed in the Tecate Baja 1000 in Mexico. Finally the engine was re-tortured on a dynamometer. The teardown is the final chapter in the documentary series, which is narrated by spokesperson Mike Rowe. General Motors will show a concept version of the GMC Sierra called All Terrain HD, which is meant to cross a heavy-duty truck with offroad capability. The Chevrolet division will reveal its next small car, called Sonic, which replaces the Aveo in North America. "The Sonic represents a new beginning for Chevrolet in the small car segment, and so we felt it was time to give it a new name," said Chris Perry, VP, Chevrolet U.S. Marketing, in a statement. The car will be called Sonic in Canada, Mexico and the United States, but Aveo in the 50-plus other countries. Toyota will reveal the beginnings of a Prius family of vehicles. The automaker's event includes unveiling a second Prius vehicle and a concept. Usually press events at auto shows like this involve something to awaken and titillate reporters. It's likely, based on a sneak-peek video on YouTube, that Toyota will have X Games skateboarder Bob Burnquist on hand to do some stunts. Honda says it will unveil a concept version of the next-generation Civic. The production version of the car, based on the concept, will go on sale in the spring of next year, according to the company. The car will be in its ninth generation. Porsche will also return to the show after being absent from Cobo Hall for three years. All the automaker has said is that it will use the first day of the show for unveiling a new model. The German company has been expanding its lineup, first with a Cayenne SUV, then the Cajun small SUV and Panamera sedan. (Source: Media Daily News, 01/03/11) |
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KBB: Room for Entries in Packed U.S. Market As if it isn't crowded enough, the auto market is going to squeeze more bodies into the elevator that everyone hopes will stay buoyant enough to keep inching back up after the cable broke in 2008. Kelley Blue Book has come out with its list of new nameplates that the firm believes will develop a following next year. These aren't redesigns, or next-generation cars and trucks bearing familiar nameplates. Rather, they are entirely new vehicles by automakers hoping to make forays into competitive territory. Of the vehicles KBB says will be players next year, many are in the luxury arena. Audi is coming out with its first entry into a segment that comprises vehicles that look like sport coupes but have four doors. The A7, notes KBB, is different from vehicles like Mercedes' CLK because it's technically a hatchback. Another luxury entry is Hyundai's Equus, which just went on sale -- and which, the company hopes, will fight against sedans like BMW 5-Series, and the Lexus LS. The $60,000 car is also benefiting from a new "Equus Experience" Web site that features a video of a wealthy but hip guy driving the car from his office to his James Speyer-esque house in the woods to collect his lithe, swervy wife, for a ride up Coral Canyon. During the video, a series of numbered buttons calls out specific vehicle features. Kelley Blue Book also sees opportunity for Lexus' CT 200h, which the automaker has been touting with events that are nocturnal hipness. KBB says the car will do well because it has Prius' powertrain, meaning great fuel mileage, but also the kind of power and price that will make it a good competitor to Audi's A3. The KBB group also likes Mini's forthcoming Countryman, which goes on sale early first quarter. The vehicle is a paradox, since it's a crossover and Mini has traditionally been just that, although it has slowly been growing in length. Going in the opposite direction, KBB says Scion's forthcoming "micro-car," called iQ, will be a strong competitor to Smart, and probably Fiat 500. The former automaker's sales are now sinking because of limited utility and benefit. Scion says the car's fuel economy will near 40 miles per gallon. "Smart sales have since cooled, making it harder to predict how the iQ will be received by (consumers)," says KBB, which notes that the car will be priced low, get good fuel economy near 40 miles per gallon and "offer the technology and easy personalization that helped put Scion on the map." The firm also sees promise for Nissan's Juke, Ford's Fiesta, Nissan's Leaf, and Chevrolet's Volt. (Source: Marketing Daily, 12/29/10) |
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Rising Gas Prices Prompt Dealers to Rethink SUV Strategies 'Hoping For The Best, But Prepared For Anything' As gasoline prices rise, some analysts predict a drop in SUV sales and trade-in values at dealerships. U.S. gasoline prices recently topped $3 a gallon,the highest level since October 2008, according to the U.S. Department of Energy. Crude oil reached $91 a barrel on the New York Mercantile Exchange in late December, causing nationwide pump prices to increase 7 cents a gallon to an average of $3.05. That is up nearly 45 cents from a year ago. Diesel prices also have risen, reaching $3.29 a gallon, more than 56 cents a gallon higher than last year. Alec Gutierrez, lead analyst for vehicle evaluation at Kelley Blue Book, said sales of SUVs have only fallen about 1 percent since the last major gasoline price spike in spring of 2008. He said he doesn't expect SUV sales to drop dramatically unless prices reach $3.50 to $4 per gallon, but even then, the rush to offload larger vehicles shouldn't be as pronounced as in spring of 2008. "If you see a 20-to-30 cent price increase per gallon over the course of a couple weeks then of course people are going to panic," he said, "but if it increases steadily over time that gives the market a chance to react rationally." Changing habits? But even though consumers may know what to expect this time, that's not to say they won't change their buying habits. "The Ford Escape, the Nissan Rogue, the Honda CR-V and the Toyota RAV4 -- the compact crossover segment -- that's where we'll see a lot of growth in terms of production and sales overall," Gutierrez said. "The American consumer still generally wants to have a vehicle that offers a lot of utility but at the same time they are conscious of the fuel economy that the vehicle offers and what they are going to pay at the end of the month." As people are watching their budgets, so too are dealers, who may not want to buy back SUVs if those vehicles will be worth less at auto auctions, Gutierrez said. "The days where a dealer could just go to auction and stock up on a bunch of SUVs and hold them for 40 or 60 days are over." For dealers, caution is key when stocking inventories. "Our small SUVs are doing OK but the large SUVs and large trucks have definitely cooled off since the pickup in gas prices," said Jason Stewart, general manager of Earl Stewart Toyota of North Palm Beach in Florida. At the same time, Stewart said, Prius sales have tripled -- a reversal of the sales situation when gasoline prices crashed later in 2008. Two years ago, "when gas was in the low-to-mid twos, we did a 180 the other way where Prius sales fell off the mark and we were selling more of the Sequoias and Tundras," he said. "My gut is it ties right into people's pocketbooks." Plummeting trade-ins Stewart said the last time gasoline prices reached this high, trade-in values of SUVs plummeted. Although he said SUVs are not that popular to begin with in the North Palm Beach area, the dealership plans to scale back even further on the number available for sale in anticipation of the gasoline crunch. Dennis Egglefield, owner of Egglefield Ford in Elizabethtown, N.Y., said SUV sales dropped by half during 2008's gasoline price spike, but have since leveled out. Unlike Stewart's dealership, Egglefield Ford is in the Adirondack Mountains about 100 miles south of Montreal -- a region where four-wheel drive is desirable. Egglefield said, though, that he has noticed more people choosing the Escape over the larger Explorer or Expedition. "SUVs are still important in this area, but people are downsizing to more fuel efficient SUVs instead," he said. As gasoline prices rise "we are still stocking with the idea that it may go either way," Egglefield said. "Hoping for the best, but prepared for anything." (Source: Automotive News, 12/28/10) |
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