December 2009 Sales Increase Likely

When the December selling period for US car sales comes to a close on January 4, 2010, there should be some good news to report. In fact, if J.D. Power and Associates projections are correct, a 7 percent month over month gain is possible. The company is a global marketing information services business whose services include market research, customer satisfaction, and forecasting.

Cash For Clunkers

Keep in mind that December 2008 was one of the worst months for car sales over the past few years. Sales cratered as the full brunt of the recession was being felt with consumers clamping their wallets and pocketbooks shut. For most of 2009 sales were truly abysmal, but they began to pick up again following the summer’s CARS or cash for clunkers program.

“The market is continuing to improve, with the relative strength of December sales supporting a year-end rally,” said Gary Dilts, senior vice president of global automotive operations at J.D. Power and Associates. “The December selling rate is tracking at 11.2 million units-up nearly 1 million units from one year ago-which sets up 2010 for further recovery.”

If these prediction ring true then December could be the turning point that automakers have been seeking. Sales began to dip in late 2007 and continued to drop off in 2008, before collapsing following the financial crisis of September 2008. Most analysts believe that the low point was reached in March 2009, with a gradual recovery beginning soon thereafter.

A Brighter 2010

Total sales should hit 10.4 million units for the year, with 8.7 million units being retail sales. The difference, of course, is fleet sales. For 2011, J.D. Power and Associates believes automakers will sell 11.5 million units, a far cry from the 17 million units sold earlier this decade, but a market improvement over 2008 and 2009.

Importantly, automakers are learning how to turn a profit with fewer vehicles sold by reducing incentives and upping content. That can help sustain automakers in the years ahead as consumers carefully weigh jumping back into the market.

Source: J.D. Power and Associates

Photo Credit: Chrysler Group, LLC

Ford Adjusts Incentive Program For Summer Season

Shopping for a new car these days means that consumers have a lot of choices on what they can buy and how much they’ll pay for their purchases. Because of the current economic doldrums, the market definitely favors consumers as manufacturers battle to increase sales while retaining market share.

Drive The Ford Difference

Although auto sales dropped by just over 24% for May 2009 (v. May 2008), Ford still managed to gain market share as its chief competitors (General Motors, Toyota, Honda, Chrysler and Nissan) each reported sharper declines than Ford. May 2009 sales were up over April sales too, the fourth consecutive month that Ford has seen its sales rise this year.

But, Ford isn’t resting on its modest laurels, seeing that current conditions mean an excellent opportunity for the automaker to pick up market share. With the Ford Taurus and Ford Transit Connect due out this month and with the Lincoln MKT arriving later this summer along with an EcoBoost version of the Lincoln MKS, Ford plans to continue providing the help customers need today in order to choose a Ford, Lincoln or Mercury product.

“We continue to introduce world class products into the marketplace and are committed to restoring that much needed confidence for the consumer through our Drive the Ford Difference event,” said Kenneth M. Czubay, Vice President of Sales and Marketing. “Our quality is unsurpassed by the best in the business and we remain focused on being the best or among the best in fuel economy with every new product introduced into the market.”

Ford’s current incentives are as follows:

• Through the end of June, Ford will cover up to 3 months worth of payments on select new Ford, Lincoln and Mercury vehicles.

• 0 percent financing is also offered through Ford Motor Credit on select Ford, Lincoln and Mercury vehicles.

• Ford continues its partnership with Susan G. Komen for the Cure® and will donate $20 in the name of each prospective customer that test drives a Ford, Lincoln or Mercury vehicle, up to $1 million.

Customers will also be able to find additional incentives on various cars, trucks, crossovers and other passenger vehicles at the dealership level. If you’re planning to buy a new car this summer, make sure that you find out what programs you are eligible for and sharpen your negotiation skills. Most analysts believe that 2009 will be a once in a lifetime buying opportunity for consumers, so make sure that you take advantage of special offers while they’re still available to you.

Source: Ford Motor Company