Feb 2010 Auto Sales Thread
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Toyota's troubles are likely to get the most attention when automakers report February sales Tuesday. But the Japanese automaker's pain isn't likely to translate into big gains for its rivals.
Sales tracker Edmunds.com forecasts U.S. market share for Toyota (TM) will fall to its lowest point in nearly five years, and that sales will tumble 10% from year-ago levels.
Most other automakers, including General Motors, Ford Motor (F, Fortune 500) and Hyundai Motor, are expected to post sales increases from a year ago. Overall, the industry should enjoy a modest gain in sales. Chrysler Group is the only other major car company that is likely to report a drop in sales.
But a small gain isn't very good when you consider that last February was the worst month for the industry since 1981.
"It's like saying the Detroit Lions were better this year because they had two wins rather than none," said Jesse Toprak, vice president of industry analysis for TrueCar.
J.D. Power & Associates is forecasting that industrywide sales are going to be up 8% from a year ago, but as was the case in January, fleet sales to businesses such as rental car companies should provide most of the lift. Sales to consumers are expected to be little changed from a year ago.
Most of the forecasts are for a seasonally adjusted annual sales rate of about 10 million vehicles, which would make this the worst month since September for sales.
"Just when we were going to get going on a sales recovery, this pushes us back a little bit," said Toprak.
Experts agree that much of the gains at Toyota's rivals will be coming from sales to rental car companies rather than individual customers who might have considered buying a Toyota before the recall.
"Our view is that Toyota buyers are sitting back and waiting," said Jeff Schuster, director of global forecasting at Power.
It wasn't just recalls depressing auto sales, though. The snow storms that hit much of eastern United States likely depressed sales as well. Of greater concern to experts is that consumer confidence appears to be sliding backwards.
The Conference Board's survey of 5,000 consumers found them more worried about current economic conditions than at any point in the last 27 years, worse even than a year ago when economists feared a second Great Depression. Not surprisingly, consumers planning to buy a new car in the next six months also fell from the depressed levels of a year ago.
"We will have to wait until March to see if February is an aberration or a fundamental sign that the recovery in sales will be more subdued than hoped," said Jessica Caldwell, director of industry analysis at Edmunds.com.
Still, Schuster still thinks the industry is poised for better sales in the months ahead. J.D. Power just raised its full-year sales forecast to 11.7 million vehicles from its earlier estimate of 11.5 million.
"We're starting to see credit and leasing free up. The main economic numbers are looking better," he said. "Those are setting the foundations for a positive recovery."
Sales tracker Edmunds.com forecasts U.S. market share for Toyota (TM) will fall to its lowest point in nearly five years, and that sales will tumble 10% from year-ago levels.
Most other automakers, including General Motors, Ford Motor (F, Fortune 500) and Hyundai Motor, are expected to post sales increases from a year ago. Overall, the industry should enjoy a modest gain in sales. Chrysler Group is the only other major car company that is likely to report a drop in sales.
But a small gain isn't very good when you consider that last February was the worst month for the industry since 1981.
"It's like saying the Detroit Lions were better this year because they had two wins rather than none," said Jesse Toprak, vice president of industry analysis for TrueCar.
J.D. Power & Associates is forecasting that industrywide sales are going to be up 8% from a year ago, but as was the case in January, fleet sales to businesses such as rental car companies should provide most of the lift. Sales to consumers are expected to be little changed from a year ago.
Most of the forecasts are for a seasonally adjusted annual sales rate of about 10 million vehicles, which would make this the worst month since September for sales.
"Just when we were going to get going on a sales recovery, this pushes us back a little bit," said Toprak.
Experts agree that much of the gains at Toyota's rivals will be coming from sales to rental car companies rather than individual customers who might have considered buying a Toyota before the recall.
"Our view is that Toyota buyers are sitting back and waiting," said Jeff Schuster, director of global forecasting at Power.
It wasn't just recalls depressing auto sales, though. The snow storms that hit much of eastern United States likely depressed sales as well. Of greater concern to experts is that consumer confidence appears to be sliding backwards.
The Conference Board's survey of 5,000 consumers found them more worried about current economic conditions than at any point in the last 27 years, worse even than a year ago when economists feared a second Great Depression. Not surprisingly, consumers planning to buy a new car in the next six months also fell from the depressed levels of a year ago.
"We will have to wait until March to see if February is an aberration or a fundamental sign that the recovery in sales will be more subdued than hoped," said Jessica Caldwell, director of industry analysis at Edmunds.com.
Still, Schuster still thinks the industry is poised for better sales in the months ahead. J.D. Power just raised its full-year sales forecast to 11.7 million vehicles from its earlier estimate of 11.5 million.
"We're starting to see credit and leasing free up. The main economic numbers are looking better," he said. "Those are setting the foundations for a positive recovery."
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Coming off a sales increase of 15 percent for 2009 (while sales across the industry plummeted 21 percent), Subaru dealers are trying to keep up the pace in 2010. Subaru dealers have seen a huge increase in sales of the all-new 2010 Legacy and Outback since their launches, and are hungry for increased inventory.
The Lafayette, Indiana plant that makes the two cars is currently working overtime, including weekend shifts trying to keep up with the heightened demand of the all-wheel-drive vehicles. As it stands, the nationwide supply hovers at a mere 10 days. "Our biggest challenge is to get product to dealers so they can achieve another sales increase," said Subaru's COO Tom Doll. When asked just how many Legacys and Outbacks Subaru dealers could sell this year, "we don't know, because we don't have excess inventory," said Phil Porter, chairman of the Subaru National Dealer Advisory Board.
The rest of Subaru's inventory stands at a 30-day supply, half the industry standard. Subaru is adding extra tooling to its Lafayette facility this April to expand capacity. In January alone, the Japanese automaker realized a 28-percent sales increase over the same period last year. Porter believes the added capacity and production will allow Subaru to surpass last year's sales record.
Source: Automotive News
The Lafayette, Indiana plant that makes the two cars is currently working overtime, including weekend shifts trying to keep up with the heightened demand of the all-wheel-drive vehicles. As it stands, the nationwide supply hovers at a mere 10 days. "Our biggest challenge is to get product to dealers so they can achieve another sales increase," said Subaru's COO Tom Doll. When asked just how many Legacys and Outbacks Subaru dealers could sell this year, "we don't know, because we don't have excess inventory," said Phil Porter, chairman of the Subaru National Dealer Advisory Board.
The rest of Subaru's inventory stands at a 30-day supply, half the industry standard. Subaru is adding extra tooling to its Lafayette facility this April to expand capacity. In January alone, the Japanese automaker realized a 28-percent sales increase over the same period last year. Porter believes the added capacity and production will allow Subaru to surpass last year's sales record.
Source: Automotive News
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"Our view is that Toyota buyers are sitting back and waiting," said Jeff Schuster, director of global forecasting at Power.
So much for some people saying Toyota will suffer greatly for this, and the competition will benefit big-time
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Before this situation, Toyota had some of the highest owner loyalty rates in the industry.
Even with a witch hunt of this scale against Toyota, it's not going to significantly change Toyota's owner loyalty.
Loyal owners/buyers would be doing exactly that; sitting back and waiting.
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i see GM and Ford topping toyota in the U.S, but toyota will still be solid at #3.
anyway, it's a great time to buy a Toyota.
anyway, it's a great time to buy a Toyota.
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