As Expected, August 2010 Auto Sales Sink

All throughout the month of August, reports that the month’s auto sales would plunge surfaced time and again. This reporting was wholly unnecessary or at least overdone as an obvious factor was kicking in: August 2009 was “Cash For Clunkers” time, therefore any comparison with last year would be skewed by that federal government rebate program.

But, comparing month over month figures is how the industry rises and falls even when the numbers are skewed. One of the first to issue their sales report was Volkswagen who cut to the chase in the title of their news release: year to date sales are up by 21 percent. On closer scrutiny, Volkswagen revealed that monthly sales fell by 7.9 percent over August 2009.

Monthly Losers

Nissan went straight to the point with their news: sales fell 27 percent for the month although year to date sales are still up by 14 percent. Honda sales fell by 30 percent, but the Japanese automaker says that it is still ahead of last year’s pace though that lead narrowed to just 1.5 percent.

Toyota sales dropped by 31 percent which means that the world’s largest automaker has fallen behind last year’s year-to-date pace by 6,000 units. Blame all the recalls and bad publicity with having a net drain on Toyota whose position as the world’s largest automaker is in jeopardy regardless. Volkswagen, perhaps even GM, may unseat Toyota this year.

Fab 3

How did 2009′s winners do in August? That would be Subaru, Hyundai and Kia, the only automakers who saw their sales rise in a very depressed market.

Subaru’s sales fell by 22 percent, but they’re still up by 20 percent for the year. Hyundai reported that its sales fell by 11 percent, yet the Korean automaker is still up by 17 percent for the year and on pace to establish yet another sales record. Kia, Hyundai’s cousin, registered a 20 percent decline for the month, but they’re still up by nearly 10 percent year to date.

Detroit 3

The Detroit 3 reported mixed sales results with Chrysler sales increasing by 7 percent for the month and are now up by 10 percent for the year. Chrysler’s rise wasn’t a surprise as it basically had to sit out of  last year’s incentive programs as it recovered from bankruptcy and sought to restart production.

GM sales fell by 11 percent for its four surviving brands though the largest domestic automaker is still up by 5.4 percent for the year. Ford sales also fell by 11 percent, but the automaker is still up 18 percent for the year.

The Rest

Daimler reported sales up by 7.4 percent for the month, though when breaking things out by brand Mercedes was up 10 percent while Smart fell by 72 percent. Mercedes is capitalizing on Lexus’ woes and may regain the top luxury marque spot from its Japanese nemesis this year.

The BMW Group fell by 1.6 percent but is up 5.6 percent for the year. Mazda fell by nearly 26 percent, but they’re up by 7 percent year to date. Other manufacturers were still tabulating their figures when Auto Trends went to press with this article.

The Meaning

What does August 2010′s sales mean? Not a whole lot. Cash for Clunkers was a hard month to go up against, so a significant drop was expected. Going forward, a stale economy may keep sales down for the rest of the year, underscoring that the battered American consumer will be careful when and if they buy a car this year.

Sources: Automaker News Releases

GM Poaches Hyundai…Again

Korean automaker gives up another exec

Hyundai needs to circle the wagons if they are to succeed in keeping General Motors away from its key marketing people.

Chris Perry (L); Jim Campbell (R)

For the second time this year, a key Hyundai executive has left the Korean automaker and is heading to GM. Today, GM announced that Chris Perry has been named Vice President, Chevrolet Marketing replacing Jim Campbell who has been reassigned.

Earlier this year GM grabbed Joel Ewanick although when that poaching took place, Ewanick had already left Hyundai for Nissan. Six weeks into his Nissan gig, GM gave Ewanick an offer he couldn’t refuse, naming him vice-president of U.S. marketing.

Marketing Pro

Perry’s career has been on the ascendancy, having spent 10 years at now defunct American Isuzu Motors before heading to Hyundai in 2000. Though Hyundai’s position in the market has improved dramatically since then, GM still sells more vehicles globally than its Korean competitor. Likely, GM sees Hyundai as much of a threat to its business as anyone else, but they’re willing to snag top Hyundai performers especially if that move helps their own business.

Campbell will land on his feet as Vice President, Performance Vehicles and Motorsports. According to GM,  Campbell will be” responsible for integrating the engineering and marketing of performance versions of current production models, as well as all motorsports activities.” Sounds like a fun job, perhaps better than having to market a wide variety of Chevy products.

Hyundai Magic

As for Perry, he’ll report to Ewanick. Perhaps they’ll do for Chevrolet and General Motors what they did for Hyundai, creating a groundswell of interest in various product lines. Also, maybe they’ll help GM complete a Hyundai trifecta by poaching yet another executive  to bolster some other GM brand.

Stay tuned! The wheels on the bus go round and round….

Source: General Motors Company

Click here for entire press release.

Hyundai Takes Wraps Off of Sonata Turbo

In March 2010, just two months after releasing the first of several 2011 Sonata models, Hyundai began to tease us with information about its upcoming Sonata turbo. That model, powered by a 2.0-liter twin-scroll turbocharged four-cylinder paired with a six-speed automatic transmission is about to be released, with the potential to shake up what Hyundai calls a bland automotive segment.

Segment Leader

And disturb the segment the Sonata Turbo will do as this model offers class leading horsepower (274), torque (269) and gas mileage (22/34).  Moreover, with a price ranging from about $26,000 to just under $30,000, the Sonata Turbo may prove to be the best value in the segment for those drivers wanting an extra measure of performance.

Already the price leader with its $20K base model, the well-equipped Sonata turbo features a panoramic sunroof, dual exhaust system, steering wheel mounted paddle shifters and 18-inch silver alloy wheels. The Sonata is also the largest car it in its segment, not much off the pace of some full-size sedans.

Three Models

Don’t expect Hyundai to rest on its laurels when the Sonata turbo goes on sale later this year. The company has already announced that a third model, a hybrid, will debut early next year as a 2012 model and has plans to introduce a plug-in hybrid the following year.

Hyundai is also exploring the feasibility of selling its Sonata wagon in North America, a car that is already available across the European market. The wagon market has produced some interest of late including the now defunct Dodge Magnum and the luxury Cadillac CTS Sport Wagon.

Increased Competition

For Toyota and Honda, the market leaders as well as for Ford and General Motors, whose own midsize offerings compete well, a Hyundai Sonata of any stripe is a threat.  The Toyota Camry and Honda Accord look most vulnerable to losing sales, cars that now trail the Sonata badly in a number of categories especially fuel economy.

The biggest winner in all of this may be the consumer who may find that the Sonata Turbo offers everything that they need in a car at an equipment level and price that they can afford.

Source: Hyundai Motor America