Automotive News - July 7, 2008 - (Page 32) 32 • JULY 7, 2008 Small-car transaction prices rise in June Jamie LaReau jlareau@crain.com SUBARU Customer Incentives Cash rebate Finance rate Incentives in this table are a summary of retail programs offered. Programs may vary by region and model. Compact prices Average transaction price changes for compact and subcompact vehicles from June 2007 to June 2008, ranked by percentage change % CHANGE TOP 5 JUNE 2008 AVERAGE TRANSACTION PRICE GENERAL MOTORS Expires July 31. In lieu of rebates, cut-rate financing is available. 2008 models Buick Lucerne, LaCrosse $0-$1,000 0% Enclave – 5.9-6.9% Cadillac DTS, XLR $0-$4,000 0-4.9% Escalade, SRX, STS $0-$3,500 0-7.9% CTS – 0-4.9% Chevrolet Avalanche, Silverado 1500, Suburban, Tahoe, TrailBlazer $0-$2,000 0-6.9% Express cargo $1,500-$2,000 2.9-6.9% Express $1,500 2.9-6.9% Silverado 2500HD, Silverado 3500HD, HHR, Equinox, Colorado $0-$1,500 0-6.9% Cobalt, Impala $1,000 0-6.9% Aveo $500 5.9-6.9% Corvette, Malibu, Uplander – 0-6.9% GMC Envoy, Savana cargo, Sierra 1500, Yukon, Yukon XL $0-$2,000 0-6.9% Canyon, Sierra 2500HD, Sierra 3500HD $0-$1,500 0-6.9% Savana $1,500 2.9-6.9% Acadia $500 5.9-6.9% Hummer H3 $0-$7,000 0-6.9% H2, H2 SUT $0-$5,000 0-6.9% Pontiac Grand Prix $0-$2,000 0-6.9% G5, Torrent, Vibe $0-$1,500 0-6.9% G6, Solstice $0-$1,000 0-6.9% G8 $500 5.9-6.9% Saab 9-3, 9-7X $0-$4,500 0-7.9% 9-5 – 5.9-7.9% $0-$1,500 0-6.9% Saturn Vue (excl. hybrid) Aura, Sky $0-$1,000 0-6.9% Outlook $500 5.9-6.9% Transaction prices for entry-level subcompacts rose in June even as rising gasoline prices drove overall industry prices down, according to Power Information Network data. In June, the average transaction price of subcompacts such as the Toyota Yaris, Honda Fit and Chevrolet Aveo rose 1.7 percent from a year earlier to $14,825. By contrast, large pickups were the biggest losers, with transaction prices falling 9.0 percent. Not all subcompact prices increased in June. The Hyundai Accent was down 4.6 percent, for instance, and the Nissan Versa dropped 1.6 percent. The industry average transaction price in June fell 3.7 percent from a year earlier. Subcompact transaction prices had been declining earlier in the year. Christopher Li, a research specialist at J.D. Power and Associates in suburban Detroit, says the entry of a new batch of car buyers might have initially hurt pricing. “You have new people coming into that segment, so instead of just the college student looking for a cheap car, you might have more savvy shoppers,” Li says. Among compacts and subcom- Toyota Matrix +12.9% Toyota Corolla +12.3% Ford Focus +8.3% Pontiac Vibe +6.3% Chevrolet Cobalt +4.7% BOTTOM 5 $19,662 $17,730 $15,885 $18,800 $14,751 Nissan Sentra –1.5% Nissan Versa –1.6% Volkswagen Jetta –3.9% Hyundai Accent –4.6% Jeep Patriot –10.6% Source: Power Information Network $16,553 $15,257 $20,950 $12,865 $18,701 Top 5 gainers in average transaction prices from June 2007 to June 2008 are, clockwise from top left, Toyota Matrix, Toyota Corolla, Ford Focus, Pontiac Vibe and Chevrolet Cobalt. pacts, the largest increases in transaction prices in June were for the Toyota Matrix, Toyota Corolla, Ford Focus, Pontiac Vibe and Chevrolet Cobalt (see box above). By contrast, the decline in the average transaction price of large pickups was 9 percent in June compared with a year earlier. From January through June, large pickup transaction prices declined 3.3 percent. “You can see large pickup and midsized pickup segments have struggled a lot, and you’ll expect to see some price decrease,” Li says. In June, automakers added incentives to help boost sales of large pickups. Average customer cash rebates rose to $3,674 from $2,279 a year earlier, Li says. On large SUVs, those rebates rose to $3,865 from $2,004 in June 2007. But rebates on basic subcompacts were up by just $286 in June to $472 in cash. Rebates for compacts such as the Honda Civic, Toyota Corolla and Chevrolet Cobalt, fell $76 in June to $528. c AMERICAN HONDA MOTOR CO. Expires July 7. 2008 models Acura MDX, RDX Honda Accord, Element, Ridgeline, S2000, Pilot Civic – 0.9-2.9% – 0.9-2.9% – 1.9-2.9% SALES Demand soars for fuel-efficient cars continued from Page 1 Top 10 vehicles June 2008 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. Toyota Corolla/Matrix Toyota Camry Honda Civic Honda Accord Ford F series Chevrolet Silverado Nissan Altima Chevrolet Cobalt Ford Focus Hyundai Sonata 42,180 41,572 39,967 39,704 38,789 34,290 24,541 20,888 17,950 16,875 Winners and losers 6 months 2008 % change in sales from 6 mos. 2007 Winners and losers June 2008 % change in sales from June 2007 JAGUAR Expires July 7. 2008 models XJ – 4.9% Winners 1. Mini 2. Scion 3. Honda Division 4. Subaru 5. Kia 33.6% 8.0% 6.7% 4.4% 2.1% –40.4% –29.0% –29.0% –27.8% –23.7% Winners 1. Mini 2. Kia 3. Audi 4. Subaru 5. Honda Division 24.8% 7.6% 5.3% 5.3% 4.8% –59.3% –57.1% –47.1% –43.1% –42.4% NISSAN NORTH AMERICA Expires July 7. In lieu of rebates, cut-rate financing is available. 2009 models Nissan Armada $2,500 2.9-3.9% 2008 models Infiniti G35, G37 – 1.9-2.9% FX35, M35, M45, QX56, EX35 – 2.9-3.9% Nissan Armada, Titan $4,500-$5,000 0.9-4.9% Pathfinder, Quest $2,250-$3,500 1.9-4.9% Frontier, Maxima, Xterra $1,750-$2,500 0.9-2.9% Sentra $1,500 2.9% Altima Hybrid, Versa $1,000-$1,250 1.9-2.9% Altima $500 2.9-3.9% 350Z – 2.9-3.9% 2007 models Nissan Murano $2,000 1.9-4.9% says Kent Ritchey, a big multifranchise dealer in Memphis, Tenn. “It is more dramatic than in the gas crunch of the early ’80s.” His Ford-Lincoln-Mercury store has a 10-day supply of the Focus and four-cylinder Fusion. “I could take all the Focuses and four-cylinder Fusions they could send,” Ritchey says. Meanwhile, Ritchey’s Nissan dealership has experienced strong demand for four-cylinder versions of the Nissan Altima, Versa and Sentra. Concludes Ritchey: “Thirty miles per gallon seems to be the magic number.” Ritchey’s experience is common to Ford dealers across the country, Ford’s Farley says. For example, 70 percent of Ford Fusion buyers are choosing a fourcylinder engine, Farley says, up from 57 percent a year earlier. Toyota has experienced a similar shift. Many more buyers of the Toyota Tacoma compact pickup are choosing four-cylinder engines, says Jim Lentz, president of Toyota Motor Sales U.S.A. Inc. The company is shifting production to accommodate that preference, he says. Toyota purchasers also have developed a clear preference for the fourcylinder version of the Camry. Sales of the compact Corolla sedan and Matrix five-door hatchback, which are available only in four-cylinder models, are at record levels. “We have asked for more supply and are working to meet demand,” Lentz says. “We could have sold a lot more Yaris and Corolla.” But it’s not clear how easily Toyota can meet surging demand for more fuel-efficient powertrains. The company builds four- and sixcylinder engines for the Corolla and Losers 1. Hummer 2. Saab 2. Chrysler Division 4. Land Rover 5. Mercury Losers 1. Hummer 2. Saab 3. Land Rover 4. Chrysler Division 5. Mitsubishi Source: Automotive News Data Center and company sources Source: Automotive News Data Center and company sources Source: Automotive News Data Center and company sources 4 sure With this year’s surge in U.S. consumer demand for fuel-efficient vehicles, most new cars and trucks sold last month had 4-cylinder engines. This chart shows the percentage of 4-cylinder vehicles in the overall sales mix. 60 4 out the door In the first half of 2008, 4-cylinder versions of these popular models sold more quickly at U.S. dealerships than their 6-cylinder counterparts. AVG. RETAIL TURN RATE, 4-CYL. AVG. RETAIL TURN RATE, 6-CYL. Dealer Incentives Incentives in this table are a summary of dealer programs offered. Programs may vary by region and model. Saturn Aura Toyota Camry/Solara Chevrolet Malibu 26 days 33 days 23 days 112 days 54 days 33 days GENERAL MOTORS Expires July 31. 2008 models Saab 9-5 9-3 $3,500 $3,000 Source: Power Information Network 50 40 PERCENTAGE AMERICAN HONDA MOTOR CO. 30 20 10 0 Jan. Feb. Mar. Apr. May June Source: Power Information Network its hatchback variant, the Matrix, at its factory in Buffalo, W.Va. The engine plant already is running at full capacity, says Toyota spokesman Victor Vanov. “We’re doing whatever we can to meet that demand,” he says. Global constraints Japanese automakers can import engines from Japan. Nissan North America has asked its Japanese parent for more four-cylinder engines. A shortage of four-cylinders is hampering U.S. sales of the Nissan Sentra and Versa, says Al Castignetti, Nissan Division’s general manager. But global production constraints may limit Nissan’s options, he says. Even Honda — one of a handful of automakers that had higher U.S. sales in June — is struggling to meet demand for four-cylinder engines. Later this year, Honda will open a factory in Alliston, Ontario, with an annual production capacity of 200,000 four-cylinder engines. Meanwhile, Honda’s engine plant in Anna, Ohio, is building more fourcylinder engines and fewer sixes, says Ron Lietzke, spokesman for Honda of America Manufacturing Inc. Like Honda, Hyundai Motor Co. boasts a sales increase in June. And Hyundai is expanding production of four-cylinder engines. This week Hyundai begins production of 2.4-liter four-cylinder engines at a new factory in Montgomery, Ala. The plant will produce 200,000 engines a year for the Sonata, with plans to expand production by 100,000 units. Like Toyota, Hyundai has discovered that shoppers want four-cylinder engines in their mid-sized sedans. In June, 64 percent of all Sonatas sold at retail had four-cylinders. Eighteen months ago, only a third of all Sonatas had four-cylinder engines. “We’ve got a really strong demand for four-cylinders right now,” says Hyundai spokesman Robert Burns. “It’s good that we have been able to meet that.” c Lindsay Chappell, Mark Rechtin, Amy Wilson and April Wortham contributed to this report Expires July 7. 2008 models A http://Edmunds.com
Table of Contents Feed for the Digital Edition of Automotive News - July 7, 2008 Automotive News - July 7, 2008 Turnaround trouble: Mitsubishi back on the skids It's a panic — but don't panic CAUGHT FLAT-FOOTED Japan's new diet plan: Slim down, ounce by ounce Amid sale rumors, Volvo has upmarket plans Reynolds sues dealer over computer upgrade Chrysler and dealers to improve Internet marketing strategies Seat strategy: Lear aims to make more profits by producing more parts Nissan: Despite a truck glut, Titan gets no more incentives American Axle cuts staff; boosts India business, CEO bonus Bosch sees N.A. red ink this year Bill Mitchell's designs blew away the past Hyundai Santa Fe to get a 4-cylinder GM Europe exec: Curbing CO2 is 'around the clock' effort Supplier input varies in Nissan's tech plans Great Wall becomes Chrysler's 2nd Chinese partner Steel prices nudge up Nano's costs Analyst: GM could tap UAW benefits fund Automakers create opportunities for Mexican molders Chrysler pitches gas savings on hybrid SUVs Researchers test capturing CO2 before it leaves the car Some execs win even when their companies lose Tata's personal touch Show me the money Obituaries Study: Dealership service shops extend their hours New Web tool promotes GM service Fiat CEO Marchionne is Industry Leader of Year Jim O'Sullivan Johan de Nysschen Sergio Marchionne Ratan Tata Dick Colliver Fritz Henderson Martin Thall Jim Farley Jack Stavana Roger Penske Walter de' Silva Mike Stanton Tim Manganello David Friedman Jim Hallett Larry Jutte Kim Kosak Ron Gettelfinger Tom Stephens Bob Lutz Tom Shoupe Jay Amestoy June caps a dismal first half Personnel Auto roof rule due by Oct. 1 Mitsubishi dumps 9 ad associations Small-car transaction prices rise in June Turbo taboo may end for BMW M's The mpg fracas: Pick your favorite fairy tale Great news? Analysts shun the Kool-Aid at Chrysler And now, from Wall Street, a short tale of terror VW tells builders: Plan for Southeast plant Dodging a bullet: Half-off deal busts dealer's Ram jam To run the train, should you be an engineer? Automotive News - July 7, 2008 Automotive News - July 7, 2008 - CAUGHT FLAT-FOOTED (Page 1) Automotive News - July 7, 2008 - CAUGHT FLAT-FOOTED (Page 2) Automotive News - July 7, 2008 - Amid sale rumors, Volvo has upmarket plans (Page 3) Automotive News - July 7, 2008 - Seat strategy: Lear aims to make more profits by producing more parts (Page 4) Automotive News - July 7, 2008 - Seat strategy: Lear aims to make more profits by producing more parts (Page 5) Automotive News - July 7, 2008 - Hyundai Santa Fe to get a 4-cylinder (Page 6) Automotive News - July 7, 2008 - Hyundai Santa Fe to get a 4-cylinder (Page 7) Automotive News - July 7, 2008 - Analyst: GM could tap UAW benefits fund (Page 8) Automotive News - July 7, 2008 - Analyst: GM could tap UAW benefits fund (Page 9) Automotive News - July 7, 2008 - Chrysler pitches gas savings on hybrid SUVs (Page 10) Automotive News - July 7, 2008 - Chrysler pitches gas savings on hybrid SUVs (Page 11) Automotive News - July 7, 2008 - Show me the money (Page 12) Automotive News - July 7, 2008 - Show me the money (Page 13) Automotive News - July 7, 2008 - Show me the money (Page 14) Automotive News - July 7, 2008 - Show me the money (Page 15) Automotive News - July 7, 2008 - Obituaries (Page 16) Automotive News - July 7, 2008 - Obituaries (Page 17) Automotive News - July 7, 2008 - Obituaries (Page 18) Automotive News - July 7, 2008 - Obituaries (Page 18A) Automotive News - July 7, 2008 - Obituaries (Page 18B) Automotive News - July 7, 2008 - Obituaries (Page 18C) Automotive News - July 7, 2008 - Obituaries (Page 18D) Automotive News - July 7, 2008 - Obituaries (Page 18E) Automotive News - July 7, 2008 - Obituaries (Page 18F) Automotive News - July 7, 2008 - Obituaries (Page 18G) Automotive News - July 7, 2008 - Obituaries (Page 18H) Automotive News - July 7, 2008 - Obituaries (Page 18I) Automotive News - July 7, 2008 - Obituaries (Page 18J) Automotive News - July 7, 2008 - Obituaries (Page 18K) Automotive News - July 7, 2008 - Obituaries (Page 18L) Automotive News - July 7, 2008 - New Web tool promotes GM service (Page 19) Automotive News - July 7, 2008 - Dick Colliver (Page 20) Automotive News - July 7, 2008 - Walter de' Silva (Page 21) Automotive News - July 7, 2008 - Larry Jutte (Page 22) Automotive News - July 7, 2008 - Jay Amestoy (Page 23) Automotive News - July 7, 2008 - Jay Amestoy (Page 24) Automotive News - July 7, 2008 - Jay Amestoy (Page 25) Automotive News - July 7, 2008 - Jay Amestoy (Page 26) Automotive News - July 7, 2008 - Jay Amestoy (Page 27) Automotive News - July 7, 2008 - Jay Amestoy (Page 28) Automotive News - July 7, 2008 - June caps a dismal first half (Page 29) Automotive News - July 7, 2008 - Personnel (Page 30) Automotive News - July 7, 2008 - Mitsubishi dumps 9 ad associations (Page 31) Automotive News - July 7, 2008 - Small-car transaction prices rise in June (Page 32) Automotive News - July 7, 2008 - Small-car transaction prices rise in June (Page 33) Automotive News - July 7, 2008 - To run the train, should you be an engineer? (Page 34) Automotive News - July 7, 2008 - To run the train, should you be an engineer? (Page 35) Automotive News - July 7, 2008 - To run the train, should you be an engineer? (Page 36)
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