U.S. Auto Market News and Reviews

circlew

Just like children who pledged allegiance to the flag before they started their school day, a number of grown adults are brand faithfuls who pledged their hard-earned dollars to a cause they believed is theirs to fight. For whatever reason, they are still steadfast in their belief that their brand is the best, their truck is better than all others and their car is the most reliable piece of transportation since God invented feet.

Yet, if there’s one thing that the last week, last month, last year, or even the last decade has taught us it’s that companies, specifically automakers, do not care about us. Not one bit.

http://www.thetruthaboutcars.com/2015/08/automakers-companies-dont-care/#more-1135530

So, next time to pledge your donation to the My Favorite Brand club, remember this: You might care about them, but they only care about one thing from you — and it isn’t your life.

Yes, including the Asian brands.

circlew

No negative comments.

General Motors is close to becoming the first major automaker to sell a China-made vehicle in the U.S. in a move that could fuel political consternation over the decline of the American manufacturing sector.

http://www.usatoday.com/story/money/cars/2015/08/17/gm-may-export-china-made-buick-us/31864817/

An additional complicating factor for GM is the onset of contract negotiations in the U.S. with the United Auto Workers union. The UAW, which has threatened to authorize a strike at GM, Ford or Fiat Chrysler if it doesn't reach deals by mid-September, is consistently critical of manufacturers for locating production in other countries.

stever

"U.S. consumers are already accustomed to products made in China, such as Apple products and TV sets. The quality of those products has given consumers confidence in the quality of products made in that country."

Interesting to see that the Buick Encore I test drove a couple of weeks ago is a South Korean import. The UAW must have griped about that import too but I don't recall seeing any headlines about it. Then again, I moved from Michigan and don't read the Detroit papers much anymore.

circlew

Donald Trump already warned Ford what he'll do regarding it's Mexican strategy! Build a wall so no cars from Mexico can enter!

circlew

General Motors traded down $1.80, or 6.08%, a share to close at $27.80

http://www.usatoday.com/story/money/2015/08/24/automakers-stocks-china/32271225/

For more perspective, consider that China is essentially the only other part of the world where GM and Ford are making a profit, leaving the U.S., Mexico and Canada, for now the only source of profitable growth.

tlong

Ever since the BK and apparent revival of GM, I've always said that the real test of their health will be the next recession. It looks like we might be approaching that period.

circlew

Yes, the China bubble explodes the facade.

andres3

Would be hilarious if the economy collapsed right before Obama left office.

Mr_Shiftright

Musk can brag all he wants---let him make a profit first, then I'll be more impressed. Right now Tesla is living on its stockholders.

henryn

I am on a forum for GM truck owners, and just received a link to this article.

http://gm-trucks.com/forums/topic/176756-gm-posts-sales-gains-claims-market-share-car-sales-dive/

9/1/2015
General Motors again was one of the first car-makers to announce its August results. In a press release the automaker claims it gained a full percentage of the U.S. retail market share in August. This despite terrible car sales in the month. First the bad news. Here are some of the car sales for August compared to last August:
Cadillac ATS -12.7 (down 12.7%)
Cadillac CTS - 33.3
Cadillac XTS - 48.6
Buick Regal - 23,2
Verano - 48.4
Chevy Camaro - 23.2
Cruze -37.4
Sonic -63.5
Volt - 45
Malibu was up 7.4%

GM has had an amazing month due only to crossovers and trucks. As we have reported previously, GM is very quickly exiting the car business in North America. GM's trucks like the Silverado and Sierra had single digit gains in the month. The Colorado and Canyon have leveled off now at their 10K per month maximum. We'd like to take GM's side and report all the great statistics that the company is touting, such as:
"Truck Sales up For 16th Consecutive Month"
"Buick Crossover Sales Up 28%"
"Cadillac SRX (crossover) Up 52%"
However, the real news to our eyes seems to be the very real possibility that GM cars are becoming irrelevant in the U.S. market. They have legions of fans, get great reviews, and don't sell.

andres3

henryn said:

I am on a forum for GM truck owners, and just received a link to this article.

http://gm-trucks.com/forums/topic/176756-gm-posts-sales-gains-claims-market-share-car-sales-dive/

9/1/2015
General Motors again was one of the first car-makers to announce its August results. In a press release the automaker claims it gained a full percentage of the U.S. retail market share in August. This despite terrible car sales in the month. First the bad news. Here are some of the car sales for August compared to last August:
Cadillac ATS -12.7 (down 12.7%)
Cadillac CTS - 33.3
Cadillac XTS - 48.6
Buick Regal - 23,2
Verano - 48.4
Chevy Camaro - 23.2
Cruze -37.4
Sonic -63.5
Volt - 45
Malibu was up 7.4%

GM has had an amazing month due only to crossovers and trucks. As we have reported previously, GM is very quickly exiting the car business in North America. GM's trucks like the Silverado and Sierra had single digit gains in the month. The Colorado and Canyon have leveled off now at their 10K per month maximum. We'd like to take GM's side and report all the great statistics that the company is touting, such as:
"Truck Sales up For 16th Consecutive Month"
"Buick Crossover Sales Up 28%"
"Cadillac SRX (crossover) Up 52%"
However, the real news to our eyes seems to be the very real possibility that GM cars are becoming irrelevant in the U.S. market. They have legions of fans, get great reviews, and don't sell.

Seems to me too many bridges have been burned in the past, and rebuilding bridges is tough work. The only hope; a new growing customer base, such as people young enough that they don't remember 2008/2009, or other countries like China. As negative as I am toward the Big 3 I hope they don't continue to disappoint and lose their remaining customers. That would mean either another bailout in the future, or their disappearance. While I'd like for Chrysler to disappear, I'd like Ford and GM to stay, if only to provide for greater varied competition and keep the prices of the cars I really like down due to not winning every sale out there.

tlong

I've always said that the real test of GM and Ford's recoveries is the next recession. GM was fragile in the 2000's due to high reliance on truck and SUV sales as well as high UAW costs. The UAW costs are somewhat lower but the reliance on high profit vehicles remains. Once the economy tanks and/or oil goes way up, that is going to be a huge vulnerability. We are also in a replacement cycle for cars right now that won't last forever. I expect say 5 years from now to be a lot worse than today. Just MHO.

berri

I do worry that Detroit isn't balancing their product segments in order to chase those Wall Street demanded quarterly results. If something happens, and it always seems to, they could be back in trouble down the road because of their skewed product emphasis and sales. The longer term investment return approach of the Japanese often seems to put Japan Inc. in a better position to react to crises. But D3 is stuck with the Wall Streeter's, just like they are stuck with the UAW, because they have to issue and sell stocks, bonds and shorter term debt financing in the US.

One thing I don't seem to understand is how they can put out something like the Ford Fusion which initially takes off, but then kind of peters out a bit, while cars like the Accord or Camry can go on for years with just some styling tweaks. I don't know if that is because of different buyer expectations, or because of product issues as they age?

tlong

berri said:

I do worry that Detroit isn't balancing their product segments in order to chase those Wall Street demanded quarterly results. If something happens, and it always seems to, they could be back in trouble down the road because of their skewed product emphasis and sales. The longer term investment return approach of the Japanese often seems to put Japan Inc. in a better position to react to crises. But D3 is stuck with the Wall Streeter's, just like they are stuck with the UAW, because they have to issue and sell stocks, bonds and shorter term debt financing in the US.

One thing I don't seem to understand is how they can put out something like the Ford Fusion which initially takes off, but then kind of peters out a bit, while cars like the Accord or Camry can go on for years with just some styling tweaks. I don't know if that is because of different buyer expectations, or because of product issues as they age?

I thought like 5 years ago the Ford products were generally getting better than average reliability - then it seemed that they kind of went into the crapper a bit. I know there have been a lot of problems with Sync for one thing, which is why Ford has abandoned Microsoft for their telematics.

circlew

All of your comments on the D3 is a reflection why Marchionne wants a merger. He has vision because particularly when sales are high, he sees big problems in the future.

Must be watching this board!

http://www.thetruthaboutcars.com/2015/09/fields-fertile-now-marchionne-long-view/

stever

Good article - 99% of people don't really care about cars and the bit about the Renault/Nissan and Mercedes tie-up mentioned in the comments was new to me.

andres3

berri said:

I do worry that Detroit isn't balancing their product segments in order to chase those Wall Street demanded quarterly results. If something happens, and it always seems to, they could be back in trouble down the road because of their skewed product emphasis and sales. The longer term investment return approach of the Japanese often seems to put Japan Inc. in a better position to react to crises. But D3 is stuck with the Wall Streeter's, just like they are stuck with the UAW, because they have to issue and sell stocks, bonds and shorter term debt financing in the US.

One thing I don't seem to understand is how they can put out something like the Ford Fusion which initially takes off, but then kind of peters out a bit, while cars like the Accord or Camry can go on for years with just some styling tweaks. I don't know if that is because of different buyer expectations, or because of product issues as they age?

I'm sure that poor dependability with time has a lot to do with it. Also, inconsistent reliability will do you in as well with a lot of shoppers.

Another thing that can't be ignored, a colleague of mine recently totaled his 2012 Civic with 110,000 miles and got a check for $14,000 from his insurance company. With a check that big on a car with that many miles (for what was probably under $20K new out the door), guess what he bought?

That's right, a new 2015 top of the line leather Civic.

berri

One of my kids bought a Toyota Corolla after graduating from college. It had boiled down to that or a Focus, which was around 2 grand cheaper out the door. two months later someone T-boned her. After the insurance settlement it only cost around $1200 to replace it with another Corolla. The body shop estimated that it would have cost her more like 5 grand if she had bought the Focus due to depreciation rates.

uplanderguy

I believe the Cruze, Malibu, and Camaro are due to be replaced by all-new versions in the next few months. That couldn't possibly be helping sales of the old ones I wouldn't think. I still like the Impala, but it's so big I fear my wife would have dings all over it. I couldn't swing one now anyway.

Just for fun, I'd be curious to see how the Corvette is doing compared to a year ago.

circlew

Corvette -
2014 Full Year = 34,839 (23,483 YTD August '14)
2015 YTD August = 23,826

circlew

So far GM has rejected the idea of a merger with FCA, but Marchionne has indicated that he's not opposed to the idea of a hostile takeover.

"There are varying degrees of hugs," Marchionne told Automotive News in a recent interview. "I can hug you nicely, I can hug you tightly, I can hug you like a bear."

http://www.leftlanenews.com/fca-likely-to-wait-until-ferrari-spin-off-for-gm-merger-89576.html

henryn

http://npr.org/sections/money/2013/02/12/171814201/episode-435-why-buying-a-car-is-so-awful

Someone posted this link over in Buying and Selling, and I thought it fit really fit well here. Interesting article (audio only, from National Public Radio). The web page also has a link to a very scholarly article on the history of car dealership franchises, and the laws pertaining thereto.

If you do listen, pay attention to the part about how the franchise laws raise the average price paid for a new car by $1,800. Which costs US consumers approximately $25 billion dollars per year.

berri

Auto dealers have a very powerful lobby effort at both the state and federal levels. Money talks!!!

uplanderguy

A redesigned Volt is shortly out too I believe, so this tells one that GM hasn't played surrender in the auto market.

circlew

Here's why GM is giving Marchionne the cold shoulder

However, that same analyst described Fiat Chrysler Automobiles as "probably the most challenged within the global industry." Not US industry – global. And before that revenue goal could be reached, the merged companies would need to wade through a bureaucratic swamp. Plus the executive, manufacturing, financial, platform, procurement, and international labor swamps, among a few others.

http://www.autoblog.com/2015/09/08/why-gm-giving-marchionne-cold-shoulder/

circlew

U.S. Cars Sales - YTD September 2015

U.S. Mfg. = 1,719,000
Asia Mfg. = 3,135,000

What is going on?

tlong

It will be interesting to see what happens to VW sales in the US. The diesels are gone for the moment. What spillover happens with the gasoline vehicles?

I drove a Passat rental over the weekend. First time in the new Passat.
From my point of view the Passat of say, the 2004 era which was compact and very high quality interior has turned into a too-big boat. Straight, featureless dash and interior, extremely bland styling inside and out. Engine is fairly rough, especially at startup. Honestly, why would I pay German brand prices and suffer through VW dealer service to drive this car? I might as well drive a GM that is nicer inside (and I'm not a huge fan of GM).

andres3

tlong said:

It will be interesting to see what happens to VW sales in the US. The diesels are gone for the moment. What spillover happens with the gasoline vehicles?

I drove a Passat rental over the weekend. First time in the new Passat.
From my point of view the Passat of say, the 2004 era which was compact and very high quality interior has turned into a too-big boat. Straight, featureless dash and interior, extremely bland styling inside and out. Engine is fairly rough, especially at startup. Honestly, why would I pay German brand prices and suffer through VW dealer service to drive this car? I might as well drive a GM that is nicer inside (and I'm not a huge fan of GM).

Was it a TDI rental? You get extra emissions at no extra cost! How did it handle? I think Passats are being sold fairly cheaply at real market prices.

circlew

2015 Consumer Reports Brand Reliability

Ever wonder which company makes the most reliable cars? Thanks to the latest Consumer Reports’ 2015 Annual Auto Survey, there is a definitive answer.

Our 2015 auto survey, conducted last spring, gathered information from Consumer Reports subscribers who collectively owned or leased over 740,000 vehicles. From this data, we can predict how cars will hold up, and collectively, what the outlook is per brand.

This table shows how the brands rank based on the average of their models’ predicted reliability scores. A measure of the brand’s consistency can be seen in the span of their scores, cross-referenced by how many different models they produce. The blue bars illustrate a brand’s consistency by showing the reliability range between its top and bottom model. The numerals indicate the number of models included. We excluded Jaguar, Land Rover, Mitsubishi, Scion, Smart, and Tesla because we lack data on two or more of their models.

berri

Boy, Ford looks all over the board. Almost makes an average meaningless.

Mr_Shiftright

Boy Chrysler-Fiat is really stinking up the room here....and Cadillac isn't too far behind. Benz is a bit of a surprise. Land Rover isn't on the chart but they would have been near the bottom anyway.

andres3

Mr_Shiftright said:

Boy Chrysler-Fiat is really stinking up the room here....and Cadillac isn't too far behind. Benz is a bit of a surprise. Land Rover isn't on the chart but they would have been near the bottom anyway.

I wouldn't say Benz is a surprise, they are right next to Chrysler, and they were the same company not that long ago.

uplanderguy

I'm unable to tell from the chart--is this for 2015 models, or what?

imidazol97

uplanderguy said:

I'm unable to tell from the chart--is this for 2015 models, or what?

There's also no explanation for a meaning for the horizontal axis, meaning or units.
And it's Consumer Reports with no indication of the size of voluntary, convenience
reports done by the unknown demographics of their subscriber list. It makes nice
cocktail conversation, however.

uplanderguy

Do we know if they still weigh all "problems" the same? I only thumb through on occasion on the newsstand.

stever

"Auto makers in the U.S. said car sales rose by a double-digit percentage in October, driven by the month having five weekends and continued strong demand for larger vehicles amid low oil prices.

GM led the Big Three, posting a 15.9% jump to 262,993 light vehicles sold in the month, which surpasses the estimate for 12% growth from car research firm Edmunds.com.

Fiat Chrysler Automobiles NV recorded a 14.7% leap, propelled in part by searing demand for the auto maker's Jeep brand, and was above the 14% estimate by Edmunds.com.

Ford Motor Co.'s 13.4% growth in sales, which excludes heavy trucks, came in slightly muted from Edmunds.com's expectations for 14.2% growth."

U.S. auto sales jump by double-digits in October (marketwatch.com)

uplanderguy

I'm unable to tell from the chart--is this for 2015 models, or what?

Can the OP answer this question?

andres3

imidazol97 said:

uplanderguy said:

I'm unable to tell from the chart--is this for 2015 models, or what?

There's also no explanation for a meaning for the horizontal axis, meaning or units.
And it's Consumer Reports with no indication of the size of voluntary, convenience
reports done by the unknown demographics of their subscriber list. It makes nice
cocktail conversation, however.

It says the horizontal access is percent better or worse. Meaning Ford makes some vehicles close to 300% worse than average. Also, I can vouch this is the latest and greatest 2015 data as I follow this chart yearly like clockwork.

If the sample size isn't large enough, you won't see it on the chart (Ferrari, Lambo, Land Rover)

andres3

Tesla was left off the chart because they only have one model, but if they were on the chart, they'd be below average.

Mr_Shiftright

Lucky for Land Rover they got left off, too.

imidazol97

andres3 said:

If the sample size isn't large enough, you won't see it on the chart (Ferrari, Lambo, Land Rover)

What number is that for the sample size to be large enough to be used? Or does it vary depending on the vehicle and how CR feels about that company?

As to the meaning of the horizontal axis, what is the "average" number of problems? One per hundred? In that case it could mean that the Ford in some models had 4 problems per 100 samples sent in, if that many were sent to CR--no one knows. That's the point about the lack of transparency for the "data" from CR.



Contrast with JD Powers where it's clear the meaning of the x-axis.

And they have text explanation of the larger number of technology problems shading the data from their
random survey of brands.

" Bluetooth connectivity and voice recognition issues are the most frequently reported problems after three years of ownership, according to the J.D. Power 2015 U.S. Vehicle Dependability StudySM (VDS) released today. Study findings show that technology is playing an increasingly critical role in owners’ perceptions of overall vehicle reliability, which, in turn, is impacting their likelihood to repurchase the same brand next time around."

From a study of 3-year ownership released in February:
http://www.jdpower.com/press-releases/2015-vehicle-dependability-study

circlew

I'm unable to tell from the chart--is this for 2015 models, or what?

Can the OP answer this question?

2015

Ever wonder which company makes the most reliable cars? Thanks to the latest Consumer Reports’ 2015 Annual Auto Survey, there is a definitive answer.

Our 2015 auto survey, conducted last spring, gathered information from Consumer Reports subscribers who collectively owned or leased over 740,000 vehicles. From this data, we can predict how cars will hold up, and collectively, what the outlook is per brand.

This table shows how the brands rank based on the average of their models’ predicted reliability scores. A measure of the brand’s consistency can be seen in the span of their scores, cross-referenced by how many different models they produce. The blue bars illustrate a brand’s consistency by showing the reliability range between its top and bottom model. The numerals indicate the number of models included. We excluded Jaguar, Land Rover, Mitsubishi, Scion, Smart, and Tesla because we lack data on two or more of their models.

circlew

2015 Car Reliability Highlights

Two Korean automakers, Kia and Hyundai, are considerably stronger. The sister brands finished sixth and ninth, respectively. For the first time, Kia beat the stalwart Japanese brand Honda, and by a significant margin.
Lexus pulled off a rare feat, garnering top reliability marks for all seven vehicle lines scored in our survey. But it was the only strong Japanese luxury brand.
Honda’s Acura brand has plummeted because of problems with in-car electronics and new transmissions.
Nissan’s Infiniti brand has continued its downward trajectory because of similar problems with its InTouch infotainment system.
Ford remains in the lower half of the rankings but showed significant gains, with most of its cars scoring average or better.
Audi, once a sinkhole of service problems, continued its recent roll and finished third, just behind Lexus and Toyota.
The Fiat-Chrysler brands (Chrysler, Dodge, Jeep, Ram, and Fiat) finished at or near the bottom again.

One of the main reasons people buy a brand-new car is the promise of a no-hassle ownership experience, free from the drip-drip-drip of service problems that set in as cars age. Nonetheless, our comprehensive annual auto reliability survey tells us that some buyers will be taking their brand-new car back to the dealer’s service department sooner and more often than other car buyers will. Our survey, the largest of its kind, is designed to provide car-shoppers an early-warning system, identifying which cars are apt to be headaches from the get-go, and which have the best odds of staying healthy.

What’s wrong now: The area that has garnered the most frequent complaints in recent years has been infotainment systems and their integrated bundle of audio, navigation, and communications systems, and their display screen. There’s nothing inherently faulty about these systems, and they’re among the most desirable feature sets of a contemporary car. But when the technology isn’t executed just right it can cause endless aggravation.

This says something about new technologies in general: It often takes a while to work out the kinks. That’s why we recommend you wait a year or more after any brand-new car design is introduced before taking the plunge.

circlew

No surprise to me where the usual culprits sit near the bottom but doesn't seem to be affecting sales at the moment.

Mr_Shiftright

It would be interesting for someone to create a chart that shows the relationship between reliability and percentage of depreciation over say 3 years....if there even is such a relationship.

imidazol97

U S A Yesterday lists CR's 20 least reliable cars.



http://www.usatoday.com/story/money/cars/2015/11/06/consumer-reports-reliablity-20--worst/75275986/

dieselone

My question is how bad are those on the bottom? Ram doesn't look very good on the cart, but I'm pushing 50k miles on my 14 Ram. Only thing that's been replaced has been an LED map light. I do have an annoying rattle in the moon roof, but overall, I still like the truck a lot.

An occasion problem with a light or infotainment system is a lot different than a major component failure. So far knock on wood. Uconnect in my Ram has been nearly perfect. No issues pairing multiple phones and overall performance is very good. I can only think of 1 or two instances where it was slow to react or rebooted on it's own.

So overall it has added to my satisfaction with the vehicle, same goes for the keyless ignition.

dieselone

looking at the USA Today list I see not much has changed with Suburban. Same issues I had back in the 2000's;)

Mr_Shiftright

Gee you'd think they'd have the Escalade squared away after all these years!

berri

I remember some guy once saying you should buy a car in it's 3rd - 4th year after they've got the initial kinks resolved and before they start wrecking it again with value engineering cheapening.