SALES SCORECARD - FIRST HALF OF 2004
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Published on Thu, Jul 8, 2004
By: The LACar Editorial Staff
The top-selling vehicle for the first half of 2004.
SALES
SCORECARD - FIRST HALF OF 2004
Automotive sales continued at a strong pace in the first
half of 2004. Sales of new cars and trucks totaled 8,412,301, up 2.2
percent from the first six months of 2003. Continuing a longstanding trend, car sales were down, 2
percent,
while truck sales were up, more than 6 percent. Here's a look at the numbers. And some of the trends
behind the numbers.
Trucks take an increasing share of the US market
market Of all vehicles sold so far this year, 53.5 percent were trucks,
up from 53.2 percent for calendar year 2003. That may seem like a modest increase, but the shift toward
trucks is unrelenting. Since the introduction of Chrysler's minivans 20 years
ago, when cars outsold trucks nearly three to one, trucks consistently have taken
a larger share of the market, eventually outselling cars in 2002. If current trends continue, with trucks adding about a
point of share every year, trucks could make up 60 percent of new vehicle sales by the
end of the decade.
Five brands sell trucks only: GMC, Jeep, Land Rover, Isuzu
and Hummer. But for six other brands, trucks account for more than 50
percent
of sales: But as truck sales rise, the distinctions between cars and
trucks are blurring. A few years ago, who would have envisioned Porsche or Lexus
as a truck brand? But it may not make a difference, since many owners of Porsche
Cayennes or Lexus RXs consider their vehicles cars, not trucks. The same goes for owners of the Scion xB. It's boxy, but
who thinks it's a truck? By the way, Toyota
and Nissan, at 48 percent and 45 percent truck sales respectively, likely will soon join the
ranks of brands selling more trucks than cars.
Nissan's Xterra gets an Xtreme makeover for
2005
Industry sales in June were off two percent, making it the
worst June since 1997. The primary reason: sales at General Motors were down 12
percent,
and Ford sales were down nearly 8 percent. Both sell large trucks in high volumes. As a result, we saw headlines screaming, "Big trucks
tumble" and "Buyers return to cars." High gas prices were cited as the
reason. But a month is too short a period to identify a trend,
especially the reversal of an established trend. At LA Car we take a long-term view. Yes, sales of some big trucks were down last month. Hummer,
for example, was off 15 percent, and its sales for the year are down 24 percent. But we suspect the reason behind Hummer's decline is
it's fallen out of fashion, not because of $2 per gallon gas. In the auto industry, what sells is what's new. And the
Hummer H2 is no longer new.
Hummer H2 - has it fallen
out of fashion?
Contrary to what you might have heard, sales of big trucks
are not in the toilet. The Cadillac Escalade was up 20 perent in June, on the strength
of the new Escalade ESV. This is clearly a gas hog, with estimated fuel economy
of 13 miles per gallon in the city/17 miles per gallon on the highway. Sales also were up in June for a few other big trucks,
including the Chevy Tahoe, rated at 15/19, and GMC Yukon XL, rated at 14/18. Because of their soft June sales, this week both GM and
Ford increased incentives. GM is offering $5,000 on most of its trucks. Ford raised its incentives to $4,000 on some of its SUVs,
including the four-door Explorer, and "zero financing" is available on most
Ford cars and trucks. We expect industry sales of large trucks in July to be up
compared with June - and to remain strong for the rest of the year. GM and Ford are not about to let those sales shrivel.
Buyers increasingly want what's new. As a result, first- or second-year sales of a product often
are the strongest. This is especially true of luxury models and innovative
designs. Consider that the sales of every BMW model are down this
year - except for the new 6 Series and X3, both of which are up from zero
sales last year. Every Jaguar model is down except for the new XJ ... every
Audi model is down except for the new A8 ... every Buick except for the new If a brand didn't introduce a new product, such as
Lincoln and Saab, there was little to pull up its sales; both brands showed
decreases for every model they carry. Because what's new is what sells, we may be entering an
era in which manufacturers launch more new vehicles, more often and in smaller
numbers. In other words, we could see a lot more niche products as
automakers strive to keep their product lineups fresh. So instead of trying to sell 400,000 models in a year - such
as a Toyota Camry, Honda Accord or Ford Explorer - we might see manufacturers
sell three or four different vehicles with a volume of 100,000 units each. Or
fewer.
The $16,500 (as shown) Scion tC looks to be a
strong niche player
That may be the strategy GM is employing with the Kappa
platform it introduced at the beginning of the year, which will be used to
produce distinct Pontiac, Chevrolet, Saturn and perhaps other models - two-
and four-door models, sedans, coupes, station wagons and roadsters. Taken to an extreme, manufacturers someday might produce
one-of-a-kind or built-to-order models. Come to think of it, that's somewhat of the approach
being taken by Scion, with dealer add-ons allowing buyers to customize their
vehicle with accessories such as a colored steering wheel and LED interior
lights. Look for this keep-it-fresh trend to accelerate, with
product introductions occurring more often and increasing numbers of models on
the market.
A seemingly irreversible sales trend is the declining share
of the Big Three. For the 2003 calendar year, the US-based brands of General
Motors, Ford and Chrysler Group accounted for 60.2 percent of industry sales. That share has dropped to 59 percent for the first six months of
2004. Car share for the Big Three has fallen to 44 percent, with
Japanese brands claiming 38 percent. The Big Three still dominate in truck sales, with 71.9
percent of
the market. But that's down 1.8 percent from 73.7percent for the full year of 2003. The Korean brands as a group sell more trucks in the US
than all of the European brands combined. We wonder soon Hyundai and Kia together will top all of
the European brands in combined car and truck sales.
Nissan has a new Frontier and Pathfinder for 2005
On a percentage basis, the brands with biggest sales
increases this year compared with the first half of last year: Nissan's 28 percent sales increase has been powered by its new
trucks - the Titan, Quest and Armada - while sales of the Altima and Sentra
sedans have remained strong. Suzuki is still a bit player in the US, but the success of the all-new Forenza and Verona
have led to a 24 percent rise in sales this year. Look for continued big increases
from this small-car manufacturer as it launches a stream of new products over
the next few years. Acura is up 19 percent because of the success of two cars, the TL
and TSX. In contrast, Porsche's 19 percent increase comes solely from the
continued success of its one truck, the Mazda's 18 percent improvement is due to a 30 percent surge in car sales
with the success of the new Mazda3 and RX-8 and continued strength of the
Mazda6. Truck sales for Mazda were down 17 percent. The largest sales decreases of the year, again on a
percentage basis: Oldsmobile's 65 percent sales decline is familiar to anyone who
follows the auto industry, as it heads for the history books. Mitsubishi is off 27 percent, as sales for all Mitsubishi models
are down this year except for the Endeavor. Hummer's 24 percent drop is due to the declining popularity of
the H2, which accounts for 98 percent of Hummer sales. Saturn is suffering from lack of product, so its 23 percent fall
is no surprise. Sales of the Vue SUV are up 17 percent this year, but with only two
cars lines - the Ion and the long-in-the-tooth L series - it's traveling a
rough road. Though Saab's sales are off 21 percent so far this year, look
for the brand to bounce back with the recently introduced 9-2x and next spring's
introduction of Saab's first SUV, the 9-7x.
What is a truck - and a truck brand -
anyway?
Dodge
77.9%
Ford
72.5%
Chevrolet
67.0%
Scion
65.6%
Porsche
54.7%
Lexus
51.2%
Share of Car Sales
Share of Truck
Sales
Share of Industry
Big Three
44.2%
71.9%
59.0%
Japanese
brands
38.2%
23.4%
30.3%
European
brands
11.8%
2.2%
6.6%
Korean
brands
5.8%
2.5%
4.0%
Nissan
+ 27.8%
Suzuki
+ 24.1%
Acura
+ 18.9%
Porsche
+ 18.9%
Mazda
+ 18.2%
Chrysler
+ 17.1%
Lexus
+ 16.8%
Kia
+ 13.7%
Pontiac
+ 12.5%
Jeep
+ 12.5%
Oldsmobile
- 64.8%
Mitsubishi
- 26.7%
Hummer
- 24.4%
Saturn
- 22.9%
Saab
- 20.6%
Volkswagen
- 13.4%
Lincoln
- 10.8%
Isuzu
- 10.7%
Land Rover
- 10.2%
Audi
- 7.6%
Cars
Trucks
Total
Ford
387,853
1,024,222
1,412,075
Chevrolet
431,268
873,650
1,304,918
Toyota
432,900
402,344
835,244
Dodge
137,490
485,664
623,154
Honda
359,316
229,970
589,286
Nissan
226,910
183,565
410,475
Chrysler
175,399
111,199
286,598
GMC
-
273,607
273,607
Pontiac
224,240
31,396
255,636
Jeep
-
226,146
226,146
Hyundai
150,552
54,459
205,011
Buick
119,067
43,389
162,456
Mazda
100,670
39,866
140,536
Lexus
67,470
70,699
138,169