The Wayback Machine - https://web.archive.org/web/20101219120341/http://plunkettresearch.com/Industries/AutomobilesTrucks/AutomobileTrends/tabid/89/Default.aspx

 

Industry Statistics, Trends and In-depth Analysis of Top Companies

 
 
     

Automobiles and Trucks Overview

 

See the complete list of trends that we analyze.

1. Automobile Industry Introduction

In the U.S. and around the world, the recession that started in late 2007 had a profound impact on the automobile industry. America’s car and light truck market dropped dramatically in 2008, to approximately 13.2 million units sold for the year, down by about 2.9 million from the number of units sold in 2007. In 2009, the market was much worse, with sales for the year totaling 10.4 million units. About 690,000 of those sales were made with the stimulus of a “cash for clunkers” program paid for with federal dollars. This was easily the worst year in decades for the car business, with two giant manufacturers filing for bankruptcy, GM and Chrysler, while a large number of dealerships, suppliers, parts manufacturers and other auto-related businesses also failed.

Estimates of the worldwide automobile market vary substantially from one group to another. Scotiabank Group estimated that 53.96 million new cars and light trucks would be sold globally during 2010. Analysts at R. L. Polk & Co. estimated 2009 global sales of cars and light trucks at 61.9 million, down by 5.1% over 2008.

As widely expected, GM filed for bankruptcy in mid-2009, and was promptly put back in business by a massive federal bailout. Chrysler’s significant financial problems led it to file for bankruptcy protection in April 2009. The company secured a large federal bailout and new financing from the U.S., Canadian and Ontario governments. This enabled it to quickly emerge from bankruptcy in a new structure with help from Italian carmaker Fiat, which initially owns about 20% of Chrysler. Fiat will have the right to earn additional shares in the company if certain goals are met, which could lead to Fiat owning a controlling stake. Labor unions received significant stakes in both GM and Chrysler as part of their reorganization. Outside of the U.S., Toyota received some financing from the Japanese government, and car makers throughout Europe and Asia were seeking concessions and/or financial aid.

Analysts at RL Polk expected 2010 car and light truck sales in the U.S. to total approximately 11.5 million units.

The biggest upward trend in auto sales for 2009 and 2010 was in China, where government stimulus helped dealers to sell about 13.6 million units in 2009 and an expected 14 million in 2010. China has become the world’s largest car market, and RL Polk expects it to hit 17.5 million units in 2015.

biggest winner in this tumultuous environment has been Korea, where Kia and Hyundai have enjoyed soaring global sales, as consumers are attracted to their reasonable prices, excellent warranties and world class manufacturing quality. Korean car makers are competing aggressively against leading Japanese firms.

are approximately 250 million vehicles in operation in the United States. Around the world, there were about 1 billion cars and light trucks on the road in 2010.

years of 2004 through 2006 will long be remembered as a pivotal period in the automobile industry. It was a period during which high gasoline prices finally created significant demand among U.S. consumers for fuel-efficient vehicles. Gasoline prices of approximately $2.00 per gallon started taking a huge bite out of family budgets in 2004, and many middle-class consumers who owned fuel guzzling SUVs and pickup trucks began to wish they had vehicles that were much less expensive to operate. By 2005-2006, with gasoline prices in the $3.00 range, the party was over for large SUVs and family trucks.

major car makers will be aggressively pushing their smaller, high efficiency vehicles in 2011-2012. GM is betting heavily on its Chevrolet Cruze, a small sedan capable of 36 mpg on the highway and stuffed with convenience features that consumers will appreciate. Ford’s revamped Fusion earned rave reviews in the 2010 model year, and it comes in either a hybrid model or a standard engine version that gets 31 mpg on the highway. Chrysler will be relying heavily on its relationship with Fiat for new, fuel efficient models.

result of high gasoline costs and frugal consumers has been strong demand for Toyota’s Prius gasoline-electric hybrid car over recent years. Also, Toyota made investments in its Georgetown, Kentucky plant to enable it to manufacture hybrid Camrys. There has also been good demand for Toyota’s Lexus RX hybrid crossover. Ford launched its hybrids, and other carmakers, including GM, are making their own efforts to bring more hybrids to the market. However, consumers generally aren’t as impressed with U.S. hybrid technology as they are with that of Toyota models, and actual mileage results on the road are often disappointing, largely due to driver habits such as quick acceleration which uses more fuel. Hybrids are now available from a wide variety of makers, and technology has steadily improved.

of the most important trends will be rapid growth in plug-in hybrids (PHEVs) and electric vehicles such as GM’s Volt, which will debut as a 2011 model. This car includes a gasoline-powered generator capable of charging its batteries for those occasions when it is not convenient to plug in. Tremendous improvements in battery technology will soon come to market, further enhancing this trend. Nissan offers strong competition in the electric vehicle sector, with the launch of its 2011 all-electric model called Leaf.

consumers and emissions regulators are taking a renewed interest in advanced automobile technologies. Clean diesel engines, like those offered in new cars from BMW, Volkswagen and Mercedes-Benz, offer exceptional performance and fuel economy while providing quiet, vibration-free running similar to that found in gasoline-powered cars. Clean diesel offers a particularly attractive alternative to hybrid technology for those who seek fuel efficiency, and it is already widely used in passenger vehicles in Europe. The use of ethanol as a gasoline additive in America has grown rapidly, regardless of whether it makes any environmental or economic sense, thanks to requirements enacted by Congress, backed up by massive government subsidies.

are keenly interested in quality and serviceability in the cars that they acquire. A stumble in this regard can have devastating consequences for a car maker, as seen in Toyota’s recent quality problems that led to slow sales, massive recalls and a humble apology from the firm’s leader.

, sales of heavy SUVs have lagged miserably. Ford cancelled production of its larger-than-life Excursion SUV in which some owners reported getting as little as 11 mpg in the city, and GM dumped its Hummer line of SUVs, selling it to a Chinese firm.

The rising affluence of consumers in China is creating both huge opportunities and huge problems. China has become one of the world’s largest importers of petroleum products, largely to fuel its burgeoning fleet of cars and trucks. Streets and highways are clogged with cars, to the extent that traffic and smog are nightmarish. Automakers from abroad have raced to establish plants and partnerships in China, with the aim of producing cars both for domestic use and for export. In fact, low labor costs and increasing product quality in China threaten auto plants located in high cost nations such as the U.S. Today, more cars are sold in China than in any other nation, and strong markets have emerged there for everything from inexpensive sedans and vans to Cadillacs and German luxury cars. One of the brightest trends for GM in 2009-2010 has been its great success in selling cars in China.

India has also seen significant growth in its automotive sector. During 2009, local industrial giant Tata launched, with great success, a no-frills car called Nano at a price equal to less than $2,500 U.S dollars.

to be overlooked are the vast changes taking place in automobile manufacturing plants. Flexible factories have reduced man-hours and cut costs per car, while offering a much wider range of choices for customization to consumers. Today, more than ever, car manufacturers and their suppliers are cooperating in the design and manufacture of new cars in ways that are revolutionizing the entire process.

cars manufactured in China will soon be on the market in many nations. The question is not whether China will export cars and trucks, but whether consumers in markets such as America will be convinced that they offer safety and reliability. Meanwhile, U.S. automakers have made intense demands on their component suppliers for lower prices—these suppliers are, in turn, looking to low-cost production in China and other emerging nations.

manufacturers are facing challenges of their own. High costs, tough labor laws, daunting government regulations and a few disappointing model designs have hampered recent results. Meanwhile, European markets suffered from the general economic slowdown, leading to poor automobile sales results.

Progressive Insurance Automotive X PRIZE offered $10 million in prizes to the competitors able to create viable passenger vehicles capable of operating at the equivalent of 100 miles per gallon. The competition is in conjunction with the X PRIZE Foundation. Of the 111 teams entered, seven remained in final competition. The winners, announced in September 2010, were Edison2, a Virginia-based team of racing engineers who designed and built a four-seat car that gets 102 mpg; Li-ion Motors, a North Carolina firm that produced a two-seat vehicle; and X-Tracer, a Swiss company who produced a motorcycle-type vehicle called the E-Tracer. Edison2 won $5 million, while Li-ion and X-Tracer won $2.5 million each.



 
 
 

Home | About Us | Fax Order Form | Contact Us
Help | Feedback | Custom Research | Site Map
Online Subscriptions | Privacy Policy | Using This Site Means You Accept Its Terms | Affiliate | News & RSS


ABOUT TRUST ONLINE
Secure Online Ordering,
encrypted by VeriSign.
Or, Call 713.932.0000.
 

Advertising & Branding Market Research | Airlines, Hotels, Travel & Tourism Market Research | Alternative Energy Market Research | American Employers Market Research | Apparel & Textiles Market Research | Automobile Market Research | Banking, Mortgages & Credit Market Research | Biotech Market Research | Chemicals, Coatings & Plastics Market Research | Consulting Market Research | E-Commerce & Internet Business Market Research | Energy Market Research | Engineering Market Research | Entertainment & Media Market Research | Food Market Research | Health Care Market Research | Infotech Industry Market Research | Insurance Market Research | International and Global Companies Market Research | Investment Market Research | Manufacturing Market Research | Mid-Size Employers | Middle Market Research | Nanotechnology Market Research | Outsourcing & Offshoring Market Research | Private Companies Market Research | Real Estate & Construction Market Research | Retail Market Research | Sports Market Research | Telecommunications Market Research | Transportation Market Research | Wireless, Cellular, Wi-Fi & RFID Market Research | The Next Boom