Car Buying auto news

Report: Car Wars report predicts Hyundai, Kia will lose market share

The annual "Car Wars" report by Merrill Lynch analyst John Murphy predicts that, despite their seizing of U.S. market share over the last few tumultuous years, Korean brands Hyundai and Kia will give it all back and then some to companies like Ford, General Motors and Toyota by 2016.

Murphy bases his predictions not on tea leaves or crystal balls, but rather the rate at which automakers launch new products. Ford will replace 26 percent of its product line over the next four years, a number that represents 46 percent of its volume, while General Motors will replace 25 percent and Toyota 24 percent. On account of these new product launches, Murphy says Ford can expect to add 0.8 percentage points of market share, General Motors will recover 0.5 points and Toyota will add another 0.3 points.

Other automakers that won't be so aggressive in turning over their lineups with new models include Chrysler, Honda, Nissan and the European brands, which Murphy surmises will all remain flat in terms of market share.

Hyundai and Kia, meanwhile, will be introducing fewer new models than the rest and therefore, Murphy predicts, will see a 0.5 decline in U.S. market share.

Of course, these are all just predictions and can be blown to bits with the next unforeseen economic crisis or natural disaster, just like the last three years were. And there are other factors that might affect market share for each automaker during the next three years, including the availability of raw materials, exchange rates, union contracts, recalls and a million another minor things that might grow to become big things, not the least of which is consumers deciding they actually like all those new products being launched.

2013 SRT Viper to require dealer certification; hardcore model planned? [w/video]

On Thursday night's Autoline After Hours, SRT boss Ralph Gilles sat down with show hosts John McElroy and Peter DeLorenzo, along with Autoblog and AOL Autos staffers to talk all things Viper. Among the interesting tidbits disclosed about the 640-horsepower supercar are plans for a new dealer certification process designed to encourage the sort of purchasing, service and ownership experience that buyers of six-digit cars have come to expect.

According to Gilles:

"It's going to be a qualified dealer situation... The ones who do the dealer training in terms of the tech. I want a tech. I want a display car. I want all these things. There's going to be a list. It's not going to be impossible, it's just that someone has to put in the extra effort and say 'I'm an SRT dealer.

Chrysler has yet to announce official pricing and the Viper won't go on sale until sometime in the fourth quarter of the year, but that hasn't stopped a queue of customer deposits from piling up. According to Gilles, one particularly strong Viper dealer already has around 90 such deposits in-hand. Considering that Viper sales averaged about 1,600 units in past years, that's a substantial figure.

In other news, Chrysler officials have been making a big point of talking about the 2013 Viper's newfound refinements, from reduced NVH to nicer interior materials and improved drivability thanks to the institution of technologies like stability control and traction control. Gilles says that great care has been taken to ensure the model's core personality still shines through, but given that much of the Viper's mystique is centered on its raw, leg-burning, hairy-knuckled persona, we couldn't help but wonder aloud if the new model's refinements have left room for a stripped-out hardcore version for Viper purists and racers. With raised eyebrows, arms gesturing wildly and stifling a smile, Gilles wryly said: "I love how you think. Next subject!"

To watch the Autoline After Hours episode in its entirety, scroll down.

Continue reading 2013 SRT Viper to require dealer certification; hardcore model planned? [w/video]

Report: Lexus kills off slow-selling HS 250h

Are you one of the few people looking to put a brand-new Lexus HS 250h in your driveway? Better act fast. Inside Line reports that Toyota's luxury division has killed off its slow-selling HS model:

"Production of the HS 250h ceased in January, 2012. Lexus continues to monitor sales for each product and we make adjustments to make sure that we meet market demand, and the discontinuation of HS was part of that adjustment. The ES 300h is not replacing HS in our lineup. It's merely part of the hybridization of many of our existing vehicles in the Toyota and Lexus lineups."

It's interesting that Lexus says the ES Hybrid is not a replacement for the HS, but we'd be a bit surprised if another standalone hybrid model made it into Lexus showrooms to replace the canceled HS - it seems to us that the current CT 200h hatchback and ES 300h ought to satisfy the needs of Lexus hybrid shoppers.

Report: Auto sales credited with half of U.S. economic growth

The auto industry has long been a cyclical business, and though this last trough was a deep one, the coming boom has economists excited. According to Bloomberg, the auto industry's comeback contributed fully half of the 2.2 percent national economic growth in the first quarter of this year. Auto sales are on target to top 14 million vehicles this year, the best pace in four years.

Production is up at all three domestic carmakers, which has a ripple effect throughout the economy. Bloomberg cites Chad Moutray, chief economist of the National Association of Manufacturers, who estimates that every dollar spent on a new vehicle leads to an addition $2.02 in economic activity. The industry's share of gross domestic product for the quarter was 2.8 percent, which is nearly as high as it was in 2007, before the economic crisis that devastated the industry, according to the report.

Yet despite the rise in fortunes for carmakers, stock prices have yet to follow suit. A key automotive index is up just 1.5 percent so far this year, but is down 31 percent in the past 12 months, according to the report. The U.S. Treasury Department recently indicated that because of lagging stock prices, it would not be divesting its share of General Motors stock anytime soon.

Digging Deeper: April 2012 sales figures

April showers may result in May's flowers, but it didn't result in great car sales numbers.

Overall, sales in April only climbed 2.3 percent compared to April 2011, leaving some carmakers and observers scratching their head. Of course, the raw numbers, as provided by AutoData Corp., also note that there were three fewer selling days due to that occasional month with five Sundays in it. Imagine the pain people paid on the 1st and 15th had to endure?

So the numbers may not be as bad as a first glance might suggest, and in my opinion, the slow pace of growth is better for automakers. Rather than big ups and downs that leave dealerships empty of popular vehicles and overstocked with others, a steady mild increase means it's easier to match production to demand.

But there are plenty of outliers in the pages of spreadsheets when you look inside the numbers. So here are the 10 things I think I know about the auto industry based on April's sales.

Continue reading Digging Deeper: April 2012 sales figures

Report: 2012 U.S. auto sales on pace to be best in five years

Bloomberg reports that if U.S. auto sales continue at their current pace, 2012 will mark the best year for the industry since 2007. The news comes after word that both Ford and Chrysler have slimmed or entirely eliminated the traditional summer shutdown at their manufacturing facilities to keep pace with demand.

All told, sales may reach 14.3 million cars and light trucks, according to analysts, thanks to factors like a gradually improving economy and easier credit. If the pace continues, 2012 will mark the third year of 10-percent gains, which marks only the fourth time that's happened since the Great Depression.

Car sales stalled in 2008, and 2009 saw manufacturers move just 10.4 million units. As Bloomberg points out, that's the lowest number since 1982, but buyers took home 11.6 million vehicles in 2010 and 12.8 million in 2011. The industry saw a 10.3-percent increase through the first four months of this year. As a result, General Motors, Ford and Toyota have adjusted their yearly sales forecasts accordingly.

Report: Audi narrowly beats BMW in April to take premium sales crown

The global luxury war has three fierce combatants, all German, all producers of amazing vehicles, and all serious about besting their two other rivals. While BMW has been winning as of late, the latest battle goes to Audi.

The Volkswagen luxury brand sold 125,200 vehicles in April, topping BMW's 121,476, according to Reuters. It was the first time Audi outsold BMW since January 2011. BMW still holds the year-to-date lead with 478,030 units sold, compared to 471,300 for April's champ, according to the report. BMW sales are up 10.1 percent for the year, while Audi's have risen by 11.7 percent.

Mercedes-Benz sits over 50,000 units behind at 418,246, according to Automotive News. Sales of Mercedes vehicles are up 9.7 percent on the year.

Audi's ascendency can be traced to China, where sales rose 44 percent in April, according to AN. European sales, by comparison, were only up 4.9 percent, with U.S. sales rising by 15 percent.

Report: Toyota Prius Plug-In third fastest-selling car in America

The good people at Cars.com have slogged their way through sales data from April and found something interesting. The Toyota Prius Plug-In managed to walk away as the third quickest-selling car in the U.S., spending just five days on dealer lots. That figure was good enough to land it behind the BMW X3 and X5, both of which take four days to find a new homes. The plug-in hybrid has only been on sale for two months, and took the honor of being the second-quickest selling vehicle in March, according to Cars.com.

The report also took the time to look at the slowest-selling models around. Surprisingly, the Porsche Boxster sits at the top of that list, taking a whopping 250 days to turn. The 2012 BMW 6 Series isn't doing much better. The 650i Convertible took fourth place with an average of 128 days on the lot while the 640i Coupe rounds out the top 10 with 111 days. Perhaps even more shocking is the news that there are four vehicles selling slower than the Nissan Murano Cross Cabriolet at 120 days on dealer lots. Head over to Cars.com for the full report.

Report: Automakers tussle over owners of 'orphan' makes

When General Motors put down several of its brands in recent years, it also let loose thousands of brand-loyal customers who will eventually need another car.

R.L. Polk Associates estimates there are more than 18 million cars from 16 discontinued makes on the road today. Those "orphan owners" have sales-hungry competitors seeing dollar signs. GM is offering Saturn owners $1,000 cash toward a Chevy Cruze, Caddillac CTS or a GMC Acadia. Ford is giving its Mercury lease customers a chance to get out of their contracts with no early-termination penalty and offering to waive six remaining payments if they drive off in a Ford or Lincoln.

Edmunds.com research shows the efforts are paying off somewhat for GM, with 39 percent of Pontiac owners, 37 percent of Hummer owners and 31 percent of Saturn owners taking delivery of another GM-branded vehicle. But that leaves as much as 69 percent of owners going elsewhere. Ford, Honda and Toyota seem to be attracting many former GM owners.

As Forbes points out, if you're driving an orphaned nameplate, you just might be able to use that to your advantage when shopping for a new vehicle.

Official: 2013 Hyundai Sonata gets $1,100 price increase, drops manual option

Bid farewell to the Hyundai Sonata equipped with a manual transmission. The Korean manufacturer has discontinued the third-pedal in its midsize sedan for 2013, though buyers can look forward to more standard equipment on next year's model. With such a small take rate, Hyundai saw no reason to continue offering the six-speed manual in the base GLS model. That means the six-speed automatic transmission is now standard across the line, though the four-door will see an uptick in price as a result. The 2013 Sonata now starts at $21,670, including a $775 destination fee.

Consumers can expect to find the same direct-injection 2.4-liter four-cylinder under the hood as well as an optional turbocharged direct-injection 2.0-liter four. Heated seats are now standard in every trim with the exception of the entry GLS model. The Limited trim bows at $26,620 with the 2.4-liter, which marks a $600 price drop compared to 2012. The impressive, standard panoramic sunroof is now optional, however. If you want the extra glass, you'll now have to step up to a $2,900 Limited Premium Package. Scroll down for the full press blast.

Continue reading 2013 Hyundai Sonata gets $1,100 price increase, drops manual option