Autoblog

Times are tough in the US auto industry, and Nissan CEO Carlos Ghosn doesn't see the situation improving any time soon. Ghosn and company are planning under the assumption that overall US sales won't break 15M units for the year, which is a substantial 2M units less than just three years ago. To complicate matters, the Japanese automaker expects steel prices to rise either later this year or early in 2009, which would put further strains on the entire industry.

While times are tough, Ghosn does see a silver lining for Nissan, as the Japanese automaker has a full lineup of fuel efficient cars that customers are buying. That should translate into increased market share, though since it's a larger piece of a smaller pie, it probably won't translate into more year over year volume. While that isn't reason enough to break out the Dom Pérignon, it's better than most automakers can say these days.

[Source: Forbes]

The Jeep Wrangler Unlimited, Compass, and Patriot are helping Chrysler defend its market share in a declining sales environment. Between these new models and incentives on Dodge and Chrysler vehicles, Chrysler has managed to stay 0.1% ahead of the market's year-on-year drop in sales. The Wrangler Unlimited is proving a noteworthy boon, helping lift Wrangler sales by 71% year-over-year. Steve Landry, Chrysler's EVP of North American sales said, "The four-door has really created a halo effect for the Jeep brand, bringing people into the Jeep showrooms and it has improved our two-door sales."

Although Chrysler-brand vehicles lead the way among the Big Three in incentives, Jeep has placed little reliance on them. The numbers mean that Chrysler's market share has actually improved a tiny bit, from 12.85% to 12.86% in the US. It's a minuscule improvement to be sure, but for a company that has been through the wringer over the past few months (years, some would say), it's still a great statement.

[Source: Freep]

VW's has strengthened its position in Europe as the leading brand, claiming more than 20% market share. In the US, though, VW sales have dropped by an average of 25,000 cars every year for four years, and the company has lost close to a billion dollars each of the past three years. Stefan Jacoby, the former head of global sales and marketing who raised the firm's Euro market share, has been put in the top US spot in order to achieve one goal: breaking even in the US by 2009.

Blame for the slide can be attributed to a variety of factors (and we're sure you readers have plenty of theories about what's wrong with and how to fix VW), but unless they figure out how to get them right, the feeling is that VW could leave the US market. It's almost impossible to believe that the company known for fun, funky cars that drove until the wheels fell of, two cars that have been famous for decades around the world (Beetle and Golf), deep brand equity, and fervent brand loyalty would have to grab its wurst and head back home. Yet the situation was summed up by one exec as: "For the first time in some time, the phrase 'If we are to stay in the U.S.' precedes a lot of conversations at VW."

[Source: Business Week]

After showing off their BlueTec-equipped diesel six-cylinder engine at the Detroit Auto Show, BMW indicated that they would be installing oil-burners in their US offerings in 2008. Yesterday, prior to the opening of the Geneva Motor Show BMW CEO Dr. Norbert Reithofer reaffirmed that diesels would be available in US-market BMWs beginning with the X5 and 5-series models. Diesel engines make up about forty percent of BMW's sales worldwide, but are currently unavailable here. He also stated that the mild hybrid system they are jointly developing with DaimlerChrysler would be on sale in about two years time.

[Source: Automotive News - subscription required]

Changfeng Motor Company took a pair each of SUVs and pickup trucks to the NAIAS in Detroit as a first salvo at attacking the US market. Changfeng is a state-owned manufacturer that used to build vehicles for the Chinese army. Before you walk away snickering, consider this; Changfeng is hot to start exports to the US within 3 years, they claim they can meet US standards for emissions and safety, and they've enlisted the design hand of Pininfarina. A bargain-priced Italian-styled vehicle with a high level of content like all the power gee-gaws buyers want like nav, DVD screens, etc. has the potential to be a quick seller. From what we've seen, they're not there yet. The Feibao CT5 (shown above) reminds us of a late '80s Hyundai in material quality and fit and finish. Changfeng will get there, but there's lots of work still to be done. There is no US sales organization, nevermind a dealer network, and the product had best be up to par when it finally appears for sale here. There's also the issue of perception. China is, after all, the country that is siphoning tons of jobs world wide because of their rock-bottom labor costs. There's resentment, as well as real and percieved quality issues to overcome. We have no doubt, though, once these vehicles hit the market, some US buyers will forget all about their gripes and buy on price if the vehicles approach acceptability. Maybe they could even partner with Wal-Mart to sell them?

[Source: Drive.com.au]