Domestic automakers got shut out of top spots for best retained value
12-08-04, 06:19 AM
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Domestic automakers got shut out of top spots for best retained value
Looks like Honda/Toyota/Nissan took home the trophy (again).
From www.cnn.com
On a related note, also from www.cnn.com, GM, coming off two straight months of disappointing sales, told dealers Tuesday it will launch a new U.S. sales incentives promotion later this week called the "GM Red Tag Sale."
From www.cnn.com
Honda has best retained value
Study: US automakers shut out of top spots for best retained value in different vehicle categories.
December 8, 2004: 8:44 AM EST
NEW YORK (CNN/Money) - Honda is again the best brand for retaining value for new cars and trucks, while U.S. brands were shut out of the top spots, according to a firm that tracks vehicle value for the industry.
Automotive Lease Guide. a privately held company that has been forecasting automotive residual values for more than 35 years, gave the top spot to Honda (Research) for the second straight year, as the Odyssey won the award for best retained value in the minivan segment and its CR-V won in the compact sport/utility vehicle segment.
Toyota Motor Corp. (Research) won four individual segments, as the Tacoma had the best retained value among compact trucks, the Sequoia was tops among fullsize SUVs, the 4Runner for the midsize SUV Segment, and the Tundra for fullsize trucks.
Nissan Motor Co. (Research) won the midsize car segment award for the Altima, displacing Honda's Accord, which took that segment award last year. The Infiniti G35, also produced by Nissan Motors, won the near luxury segment.
German automakers took the award for best retained value for the more expensive models, as BMW was the best luxury brand overall, although the Mercedes CLK had the best retained value of any one luxury model. Mercedes is a unit of DaimlerChrysler (Research), which also owns Chrysler Group.
The Mercedes SLK also won the sports car segment award, while the Cooper Mini, which is made by BMW, had the best retained value of any compact car for the third year in a row.
The closest a U.S. brand came to winning an award is Swedish automaker Volvo, owned by Ford Motor Co. (Research), which took the award for best retained value among crossover utility vehicles for its XC90.
Automotive Lease Guide's data is used by the automakers when calculating the expected value of vehicles they lease out to customers.
"In an era of heavy incentives and discounts, Residual Value excellence becomes more difficult to achieve," said ALG CEO John Blair. "Both the segment and brand winners clearly demonstrate that quality products combined with effective pricing strategies will rise to the top of the charts."
The only good news for U.S. automakers in the report was that, "the gaps have tightened in all award categories," Blair said.
Study: US automakers shut out of top spots for best retained value in different vehicle categories.
December 8, 2004: 8:44 AM EST
NEW YORK (CNN/Money) - Honda is again the best brand for retaining value for new cars and trucks, while U.S. brands were shut out of the top spots, according to a firm that tracks vehicle value for the industry.
Automotive Lease Guide. a privately held company that has been forecasting automotive residual values for more than 35 years, gave the top spot to Honda (Research) for the second straight year, as the Odyssey won the award for best retained value in the minivan segment and its CR-V won in the compact sport/utility vehicle segment.
Toyota Motor Corp. (Research) won four individual segments, as the Tacoma had the best retained value among compact trucks, the Sequoia was tops among fullsize SUVs, the 4Runner for the midsize SUV Segment, and the Tundra for fullsize trucks.
Nissan Motor Co. (Research) won the midsize car segment award for the Altima, displacing Honda's Accord, which took that segment award last year. The Infiniti G35, also produced by Nissan Motors, won the near luxury segment.
German automakers took the award for best retained value for the more expensive models, as BMW was the best luxury brand overall, although the Mercedes CLK had the best retained value of any one luxury model. Mercedes is a unit of DaimlerChrysler (Research), which also owns Chrysler Group.
The Mercedes SLK also won the sports car segment award, while the Cooper Mini, which is made by BMW, had the best retained value of any compact car for the third year in a row.
The closest a U.S. brand came to winning an award is Swedish automaker Volvo, owned by Ford Motor Co. (Research), which took the award for best retained value among crossover utility vehicles for its XC90.
Automotive Lease Guide's data is used by the automakers when calculating the expected value of vehicles they lease out to customers.
"In an era of heavy incentives and discounts, Residual Value excellence becomes more difficult to achieve," said ALG CEO John Blair. "Both the segment and brand winners clearly demonstrate that quality products combined with effective pricing strategies will rise to the top of the charts."
The only good news for U.S. automakers in the report was that, "the gaps have tightened in all award categories," Blair said.
On a related note, also from www.cnn.com, GM, coming off two straight months of disappointing sales, told dealers Tuesday it will launch a new U.S. sales incentives promotion later this week called the "GM Red Tag Sale."
GM launches 'Red Tag' sale
Offers $7,000 cash back or interest-free financing on 2004 models in hopes of staying in the black.
December 7, 2004: 6:16 PM EST
DETROIT (Reuters) - General Motors Corp., coming off two straight months of disappointing sales, told dealers Tuesday it will launch a new U.S. sales incentives promotion later this week called the "GM Red Tag Sale."
The program, which will include higher incentives and be supported by heavy advertising, will encourage dealers to clearly mark vehicles with red tags carrying special sales prices, executives for the world's largest automaker said.
Last week, GM (Research) reported a 13 percent drop in its U.S. sales for November, and the automaker said it expected its first quarter production in North America to fall about 7 percent from the first quarter last year.
"We've picked up our incentives nationally and regionally to put us in an outstanding price position," Pete Gerosa, GM North America vice president of sales, service and parts, told dealers on a Webcast. "We've only got a few weeks left in the year, and with this promotion we can finish with a bang and move off inventory, in anticipation of a strong start in '05," he added.
GM will provide dealers later with specific details on the incentive amounts and pricing on the vehicles, GM officials said. The automaker was still calculating some of the incentives, dealers said.
GM incentives currently vary by region, but offers include up to $3,500 cash back on some new 2005 models, and interest-free financing for up to six years or up to $7,000 cash back on some remaining 2004 models.
"See red, save green"
The "Red Tag" promotion will be a simple concept, easy to communicate to consumers, Gerosa said.
"The price on the tag is the price you pay," says a television commercial to promote the new incentives. "It's that simple. See some red, save some green."
In many car dealerships, the only price clearly displayed is the manufacturers suggested retail price, which is required by law, and is rarely the actual price paid by consumers. To clear up any confusion, the "Red Tag" price will also include a standard destination fee.
GM has led Detroit's price war since it first rolled out its interest-free financing offers shortly after the Sept. 11 attacks to revive the market. The incentives boosted sales, and GM's market share, in 2001 and 2002, but consumers have grown used to the deals, and GM's sales have faltered recently.
Last month, GM unveiled its "Lock 'n Roll" promotion, offering consumers the chance the lock in a low financing rate on both a new vehicle bought in November, and a second GM vehicle in a few years. But dealers said the offer was too complicated, and GM officials acknowledged it failed to meet expectations.
Offers $7,000 cash back or interest-free financing on 2004 models in hopes of staying in the black.
December 7, 2004: 6:16 PM EST
DETROIT (Reuters) - General Motors Corp., coming off two straight months of disappointing sales, told dealers Tuesday it will launch a new U.S. sales incentives promotion later this week called the "GM Red Tag Sale."
The program, which will include higher incentives and be supported by heavy advertising, will encourage dealers to clearly mark vehicles with red tags carrying special sales prices, executives for the world's largest automaker said.
Last week, GM (Research) reported a 13 percent drop in its U.S. sales for November, and the automaker said it expected its first quarter production in North America to fall about 7 percent from the first quarter last year.
"We've picked up our incentives nationally and regionally to put us in an outstanding price position," Pete Gerosa, GM North America vice president of sales, service and parts, told dealers on a Webcast. "We've only got a few weeks left in the year, and with this promotion we can finish with a bang and move off inventory, in anticipation of a strong start in '05," he added.
GM will provide dealers later with specific details on the incentive amounts and pricing on the vehicles, GM officials said. The automaker was still calculating some of the incentives, dealers said.
GM incentives currently vary by region, but offers include up to $3,500 cash back on some new 2005 models, and interest-free financing for up to six years or up to $7,000 cash back on some remaining 2004 models.
"See red, save green"
The "Red Tag" promotion will be a simple concept, easy to communicate to consumers, Gerosa said.
"The price on the tag is the price you pay," says a television commercial to promote the new incentives. "It's that simple. See some red, save some green."
In many car dealerships, the only price clearly displayed is the manufacturers suggested retail price, which is required by law, and is rarely the actual price paid by consumers. To clear up any confusion, the "Red Tag" price will also include a standard destination fee.
GM has led Detroit's price war since it first rolled out its interest-free financing offers shortly after the Sept. 11 attacks to revive the market. The incentives boosted sales, and GM's market share, in 2001 and 2002, but consumers have grown used to the deals, and GM's sales have faltered recently.
Last month, GM unveiled its "Lock 'n Roll" promotion, offering consumers the chance the lock in a low financing rate on both a new vehicle bought in November, and a second GM vehicle in a few years. But dealers said the offer was too complicated, and GM officials acknowledged it failed to meet expectations.
Last edited by Cadd; 12-08-04 at 06:20 AM.
12-08-04, 11:19 AM
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12-08-04, 02:01 PM
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In the next couple of years, don't be surprised if Korean automakers....especially Hyundai.....show the best rates of improvment. Toyota and Honda will still probably have the lowest general depreciation rates, but Hyundais...and to a lesser extent Kias......... have been improving enormously in the past 5 years in sales, quality, and reputation.
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