Tag Archives: lmc automotive

COVID-19 Ups Auto Use, Mass Transit Drops

An unintended but not surprising effect of the COVID-19 plague see the use of mass transit plummeting as driving use remains resilient, consultancy LMC reports this morning, “As US states and European countries come out of lockdown, a pronounced preference … Continue reading

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China – Future Export Base for Global Markets?

Although export volumes were stable in the last two years, the sector has experienced significant structural shifts. In 2019, non-Chinese brands accounted for 38% of the export market, compared with 30% in 2018. Data for 2010 and 2016 show that overseas OEMs accounted for just 11% and 19% of China’s exports, respectively. These figures, says LMC,  indicate the growing proportion of vehicles built in China by foreign automakers being shipped overseas. Continue reading

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Electric Vehicles – a Virus That Can’t Be Controlled?

Riddell in essence poses this riddle: When buying an IC car today, a larger engine is a big cost option, and for a BEV, a bigger ‘gas tank’ is a major, high-cost feature. Will this continue? Can this continue? Based on past behaviors, cost is a major inhibitor to adaption of advance technologies. Continue reading

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US February Retail Vehicle Sales to Surpass a Million

 “Last year it took until September for the industry to reach the current spend levels,” King noted. “While the coronavirus has had no meaningful effect on production yet, it does have the potential to reduce overall inventory levels and lower the need for continued elevated incentives. If unhealthy inventory levels persist throughout the year, however, manufacturers may be faced with spend levels that are pacing towards $5,000 by next year.” Continue reading

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U.S. Sales in 2020 – SUVs Will Govern a Down Market?

Compact SUVs during 2019 were the largest segment in the US and declined with the slowing market with a 19.2% share. For 2020, LMC forecasts 20%, thanks to the first full year of sales of the new Ford Escape as well as the ongoing popularity of the Toyota RAV4 and Honda CR-V. Continue reading

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Global Light Vehicle Sales Slump. The Party’s Over?

LMC posits we must look at why the market has dropped 5 million units below the 2017 record. A recent blog entry entitled 2019 Review highlights some of the challenges faced by the auto industry. Chief among them are developments in China, with a protracted hangover from the temporary tax cuts of a few years ago, disruption coming from the launch of State VI-compliant vehicles (which varies region by region), along with a slowing economy. Continue reading

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Global Light Vehicle Sales Fall Again in September

The selling rate drop in September seems partly the result of further changes to the WLTP** emissions testing in Europe, which may have pulled sales forward to August, at the expense of September. In China, LV sales dropped once again. Unfavorable calendar effects thwarted any chance of YoY growth in the US, even though the selling rate was good. Continue reading

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UAW Strike Cost at GM Builds Substantially with Duration

Previously, the 1998 UAW strike on GM lasted 54 days and cost the automaker $2 billion, which would equate to $3.1 billion in today’s dollars – or over a third of their 2018 net profit. A strike lasting this long has the potential to cost GM 500,000 units in lost production, which would quickly deplete their available inventory. In this situation, GM intenders would ultimately either delay purchases or move to competitor brands, which could result in 100,000 lost US sales in the remainder of this year. Continue reading

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The Asian Party is Over for Automakers

No doubt this hurts Asia-based automakers , but the  VW Group, Daimler Group, BMW Group and General Motors – are clearly endangered, because the region accounts for a significant share of their global volume. Continue reading

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Luxury Vehicles No Longer Have Panache?

“A closer look, however, reveals that Premium share actually suffered two consecutive years of decline recently,” Chan notes. The £1Billion questions are: will this drop continue and should Premium segment players be worried? Continue reading

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Cars for Cheese? EU Turning Point in Japanese Localization

In 2018, the three UK Japanese transplants of Nissan, Toyota and Honda collectively produced over 730,000 cars, which represent almost half of all Light Vehicles built in Britain. Continue reading

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2018 Auto Retail Sales Down. Transaction Prices Set Record

“Despite retail sales falling for the sixth consecutive month, the continued growth in transaction prices is allowing manufacturers to offset lower sales with higher revenue,” claims Thomas King, Senior Vice President of the Data and Analytics Division at J.D. Power. “Consumers are on pace to spend nearly $45 billion on autos in December, up 1% from last year and the highest level ever recorded.” Continue reading

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No Deal Brexit to Cost UK Auto Sector £9 Billion Per Year

It’s not only angry Trump voters who are self-destructive, the UK under the Brexit fiasco is about to lose £9 Billion a year due to a conservative Republican-like temper tantrum that will materially hurt middle class workers, as well as society as a whole. Continue reading

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Global Light Vehicle Sales Fall Again in November

The Chinese LV market continues to slow down, “a major source of concern given the importance of this market to global sales.” Other regions are also struggling, with YoY losses in Europe and North America, though selling rates remain robust in North America. Continue reading

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China Light Vehicle Sales Slow in January

Local brands have kept pace by adjusting their SUV product lines to meet this push up market. Examples within the Midsize SUV segment were seen with the Trumpchi GS8 and Changan CS95, both of which offer performance levels and visual appeal that have exceeded consumer expectations by industry observers. In terms of powertrain and comfort levels. Continue reading

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