Tag Archives: demographics

GM Considers More Specialty Silverado Trucks

mm_gal_item_c2.img_resize.img_stage._2GM’s latest specialty truck, the 2014 Chevrolet Silverado High Country, won’t go on sale until this summer, but already GM is looking into adding more specialty versions of the Silverado.

Other automakers like Ford and Chrysler have had success with specialty trucks like the F-150 Harley Davidson and the Ram 1500 Laramie Longhorn, and GM hopes to see similar success with the Silverado High Country. Industry insiders have noted, however, that these specialty trucks can be a double-edged sword. The right combination can bring in new customers as Ford did with the Harley Davidson F-150, but if an idea is too niche, it will not sell and could possibly alienate loyal brand customers.

Pricing has not been announced yet for the Silverado High Country, but GM’s manager of creative design for full-size pickup trucks did hint that it is “for someone who wants to know he has the money,” so a high price tag is expected.

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Europe Starts an Auto Industry Revival

ID-10088993European auto sales have not risen in over a year and a half, but the tide might finally be turning now that the April numbers are in.

Compared to the recent U.S. auto sales, which have been driving the U.S. economy for the past year, Europe’s sales numbers don’t seem all that encouraging. Four-month sales were still down 7 percent. Ford, PSA Peugeot Citroen was down 10 percent, and BMW was down 3 percent. The European market is struggling through a 20-year low point with analysts hoping that “the worst is over.”

Still, there are plenty of bright spots including a 10 percent increase in Volkswagen registrations as well as an 11 percent increase in car sales for Daimler AG. Most importantly, registrations in the United Kingdom were up 15 percent, and Germany, after five months of falling auto sales, finally saw a 4 percent gain in auto sales.

The industry is hoping to hold onto these gains and build on them in the coming months, and the European Central Bank is helping by slashing interest rates. As of May 2, the benchmark interest rate is 0.5 percent. Not that long ago, easing credit restrictions and offering more subprime credit options revived the auto industry in the United States, so it is perfectly possible that the same will happen in Europe.

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Image courtesy of adamr / FreeDigitalPhotos.net

Is 2013 the Year of the Pickup?

ram-1500-backplateIt might still be too early to tell, but so far, 2013 is looking like the year of the pickup.

In April, pickup trucks saw double-digit sales gains with Ram pickups seeing 49 percent gains, Ford’s F-series getting 24 percent gains, and GM getting 23 percent gains. The surge in pickup sales has been so significant that Ford and other automakers are upping their truck production to keep up with demand. Ford and Chrysler have both announced that they will be adding shifts at their plants in response to the April sales.

Chrysler’s April sales, however, were more than just a sign that the public loves pickup trucks. Ram’s commercial pickup trucks just underwent a redesign, and April sales would be an indication of how the public feels about the new look. Now that April is done, it looks like Chrysler should have nothing to worry about.

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Automakers Confront the Changing Face of Carbuyers

ID-10081939How do you make sure that vehicles match the ideals of those wanting to buy? It’s a difficult question, one that’s troubled the auto industry forever. How do you consistently make sure that your buyer base, both older and newer, are getting what they want so they will purchase from you?

Many of the top automotive executives are meeting in Detroit at the SAE 2013 World Congress to address that very question. Demographics have been changing quickly with a widening global market and fuel standards being made even stricter. Car manufacturers are having to constantly keep up with designing new cars.

“You can’t use traditional research methods to ask a customer ‘do you like this or do you like that,” said Mike O’Brien, President of corporate planning and product strategy for Hyundai.

Ralph Gilles, the senior VP of design for Chrysler, sees this same problem. The millennials, those born between 1980 and 2000, are some of the toughest to address. What they want in a car is very different than that of the generation before them.

Gilles doesn’t seem this as a problem though. He said “Everyone says they don’t like cars. Maybe. But I don’t buy that. They just don’t need cars right now.”

He also doesn’t believe that larger cars are the answer to what America is looking for, quite the opposite in fact. “I think small is the next big thing. I think small cars are finally here.” The numbers back him up. Small and compact cars had their sales increase by 27% in 2012 as opposed to the 13% for the overall industry.

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