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The Current State of the US Auto Market

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  • circlewcirclew Posts: 8,253
    edited February 2013
    ORLANDO -- Hyundai Motor America hopes that the third shift added in September at its Montgomery, Ala., plant will help the company boost 2013 sales 4 percent, to 730,000 units.

    But Hyundai might sell more than that if slack demand in other markets allows for more U.S. volume. Last year, Hyundai targeted 675,000 units, but totaled 703,007 for a gain of 9 percent when other markets softened.

    Hyundai aims to increase owner loyalty

    Krafcik noted that the average Hyundai store made $1 million in profit last year.

    He added: "We have a lot of momentum. We have a low fleet mix, and we're going to push harder into retail this year."
  • circlewcirclew Posts: 8,253
    Honda's Accord, Civic and CR-V account for 65% of the company's US sales.

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  • circlewcirclew Posts: 8,253
    The Chevy Equinox is just so hot right now.
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  • berriberri Posts: 4,001
    I know a lot of people here think GM is dying and they've lost some market share - BUT I just saw that Warren Buffett bought another chunk of GM stock. He's not always right, but his batting average is probably a hell of a lot better than most of ours! Maybe GM isn't on it's death bed, but just starting to recuperate from a bad case of flu?
  • berriberri Posts: 4,001
    edited February 2013
    Honestly, I think D3 prices their vehicles higher and then gives higher rebates/promo's. It just seems to be their playbook. I wish I had the data to compare sticker price differential and promo $. Something tells me D3 wouldn't look quite as out of whack from that "net" perspective. Maybe average net retail selling price vs. rebate/promo $ or something like that?
  • greg128greg128 Posts: 330
    edited February 2013
    Nssan's having good luck with their CVTs

    not according to these owners:

    lAltima CVT problems

    Plenty of unhappy Rogue and Murano owners, too
  • tlongtlong CaliforniaPosts: 4,701
    I know a lot of people here think GM is dying and they've lost some market share - BUT I just saw that Warren Buffett bought another chunk of GM stock. He's not always right, but his batting average is probably a hell of a lot better than most of ours! Maybe GM isn't on it's death bed, but just starting to recuperate from a bad case of flu?

    If the auto market is trending up, GM will probably do fairly well and be profitable. It's the next downturn that will really tell who is operating more successfully among all the makes. Sort of like in an ice storm or a wind storm - the trees all looked healthy before, but suddenly the weaker ones that had been doing fine in good weather come down.
  • busirisbusiris Posts: 3,447
    edited February 2013
    Hmmmm... Another example of spotty, anecdotal evidence.

    You might want to check out the Nissan Versa section on CVT's. it has 3 posts, all from me.... Regarding a single incident.

    250 posts on the Altima? Out of how many Altimas sold with CVT's?
  • uplanderguyuplanderguy Kent, OHPosts: 7,355
    Regarding incentives...does anybody think that they have something to do with age of vehicle? I know my wife wanted an Equinox (which I didn't want) in June '11 and at the time they were giving zero off of sticker...it was an all-new vehicle. So even if they're now giving $100 off, wouldn't that put it at the bottom? Another time to remind about 'balance', apparently. But what must I be smoking to expect that?
  • busirisbusiris Posts: 3,447
    Seems only logical that incentives would only increase as models "age-out" of their lifespan, before new updated models come out...

    And, you're right about $ .vs. %.

    If the incentive on a vehicle goes from $100 to $200, thats a 100% increase.
  • berriberri Posts: 4,001
    It's the next downturn that will really tell who is operating more successfully among all the makes.

    That's certainly a valid point, although Buffett tends to be a longer term trader. Maybe on this one he's just looking at a trading opportunity though. However, GM shed a lot of crap off it's balance sheet in the BK and buffed up it's liquidity, so I'd almost be more concerned about Ford in that scenario right now. But unless the next downturn is severe, I think both will handle it much better than the recent distress.
  • lemkolemko Posts: 15,071
    Heck, the Avalon was nicer than the ES350! Too bad they had to go and uglify it this year.
  • fho2008fho2008 Posts: 393
    Maybe Buffet will be the future owner of GM.
  • circlewcirclew Posts: 8,253
    edited February 2013
    Well, for GM, it isn't black and white that their pricing strategy helped in the recent quarter:

    During the fourth quarter, costs rose by $US400 million in North America, GM's most profitable region. But combined vehicle pricing fell by $US300 million there as the company offered incentives to cut through its inventory of trucks on dealer lots ahead of its introduction of redesigned versions this year.

    It was the first drop in North American pricing for GM since the first quarter of 2011.

    Jefferies' Nesvold said the weaker Japanese yen and the deteriorating European market would probably lead to more competitive pricing in North America.

    That would continue the trend seen in the fourth quarter, when GM lost one per centage point of US market share despite raising its incentives slightly, according to research firm TrueCar.com.
  • berriberri Posts: 4,001
    Ironically, he actually switched over to a Cadillac a few years back after being a long term Lincoln driver.
  • berriberri Posts: 4,001
    No doubt that GM is a hard one to get your hands around as an investor. Does North America get into consolidation down the road? Do gas prices really go down in a few years helping higher margin truck and crossover sales where GM is a big player? Does a foreign, maybe Chinese firm make a buyout try for GM? As for Europe, there are several ways to look at it. That market looks ripe for consolidation because the government's probably can't keep carrying unprofitable, marginal brands while their economy's are in stress. It doesn't seem clear where they are in the business cycle either. For example, one of the reasons the Oakmark International Fund has done so well recently is that it made an unpopular, but successful bet that European banks were near the bottom. Could that be happening to the automakers down the road over there and the car market? If so, who benefits most; European factories or Asians? Warren Buffett made his fortune as a value investor, so I'd suspect he thinks GM is going to turn around. Remember that value investors (as opposed to growth) tend to buy early when things are ugly and are more willing to use patience and hold a stock.
  • fho2008fho2008 Posts: 393
    And he bought a railroad recently. Bought, not invested in, he owns it.
  • fho2008fho2008 Posts: 393
    Gas prices do not go down $4, get used to it, but I guess you are as we both drive 4 cyl turbos!
  • berriberri Posts: 4,001
    Incidentally, when he first bought into railroads some investors proclaimed he was making a mistake and it took several years to pan out. But man, did it pan out! Personally, I respect Buffett and I'm a fan. But I also tremendously respect him. Not just as an investor, but as a person. There are a lot of wealthy people like him that aren't loud mouth, ostentatious and obnoxious. Buffett lives a quiet life style and is a generous contributor to charitable causes.

    Who really knows what will happen with gasoline prices. There are more than a few economists and investors that think we're nearing a top this year and then prices will come down due to fuel efficiency increasing along with production. I haven't a clue what will really happen. I tend to use $5/gallon when I'm considering them.
  • dieselonedieselone Posts: 5,627
    The LED fogs are a little garish given how sedate the sedan is in general, but other than that, it's not bad looking, could be a real sleeper. Frankly, I'd say make a V6 version and dump the planned Impala entirely.

    Is the platform being imported from Australia like the G8, and GTO was? If so, I know it was expensive for GM to bring those cars over, so I if they are doing something similar with the SS, a lower cost, high production model could be cost prohibitive. I'd think it comes down to where it's being built.

    Overall I like it.
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