October was a good month, Fall arrived, leaves started falling, and Hyundai proudly reported an increase in sales of almost 40%. Worthy reason to celebrate, but not for Hyundai, who plans on increasing all of 2011 sales by at least 14%. We’re talking a massive increase projection, for an entire year!
So how did Hyundai increase sales successfully? Reportedly the 2011 Sonata is what drove sales figures higher and made car salesmen happy on pay day.
Hyundai hopes to sell 3.8 million cars in 2011, an amazing figure for the 5th largest car maker in the world. Obviously the Sonata sedan will help, but what about Hyundai’s other line up of vehicles and there latest jump into the luxury market with the Hyundai Equus?
No doubt it will take a diverse line up of vehicles, that Hyundai has committed themselves to providing. Whether it’s small fries like the Accent or the performance of the Genesis, Hyundai hopes to have you covered. Perhaps we’ll take a look at their concept cars in a future post as well, some very exciting things happening, like the Veloster.
By now everyone has heard of the Cash For Clunkers program by the US Government. It’s the program where the government (see tax payers dollars) gives large incentives to consumers looking to buy a new fuel efficient vehicle. It breaks down by allowing a higher dollar amount, up to a max of $4,500, for buying a vehicle that gets over 10 more mpg than the vehicle you are trading in.
It’s a program that has proved very successful on paper, so much so they have even extended the program by an additional $2 billion. However, such a program can’t last forever, which got me asking a few questions.
First question, will future buyers be waiting around for government assistance before they buy their next vehicle? That is to say, once this incentive ends will the sales dry up until the next government intervention or will dealerships be capable of staying afloat on their own? I’m on the mind that sales will again tank, more dealerships will close, and consumers will hold on to their money again until the next incentive.
Similar consumer buying habits changed back in the mid 90’s when 0% financing was first introduced. It created a flux of buyers looking to capitalize. However, once dealerships tried to end the special promotion the sales ended as well. Just to keep the status quo, dealerships have had to continue that special promotion to some extent to maintain sales. Are we going down this road again?
So Ford posts a $2.3 billion dollar profit today for the 2nd quarter of 2009 and already the official industry experts are chiming in. I already have a view point on why Ford managed to get in the black for the second quarter and it has nothing to do with vehicle offerings. That’s right, I don’t think hybrids and fuel economy had anything to do with the recent numbers published by Ford.
In my opinion Ford manged to turn $2.3 billion in profit because they received the support of the American consumer. The regular Joe blows saw that this corporation was not taking a hand out and decided to show their support through their wallets. The American consumer, when faced with countless options on car lots, decided to choose a Ford vehicle over GM, Chrysler, or Toyota. It’s a sign that the majority of Americans don’t support the bail out plans in Washington.
Another driving force in sales will be whether or not the vehicle you buy now will be supported 5 or more years from now. If you have a major component go out on your car after the warranty has expired, will parts be radically expensive, or supported by the manufacturer. Vehicles that are discontinued generally see higher replacement parts in generic and OEM form, why put yourself in that kind of a position.
I thoroughly realize that $2.3 billion in profits is a far cry from where a company this size needs to be, especially to keep the stock holders happy. However, in this economic environment every ray of sunshine helps to swallow the negative news around every corner. It’s a move in the right direction and I hope Ford can prove themselves again next quarter and the American people continue to voice their opinions with their wallets.
2008 was a good great year for Ferrari and the huge down turn in late 2008 didn’t seem to slow down their high priced performance cars. As a matter of fact, Ferrari set sales records in 2008 with an ROS of 17.6% and investments research in 18%. Basically, they made a lot of money selling sexy women disguised as sports cars.
To put this in perspective, only about 25% of all Ferrari cars are sold in the US. In 2007 they sold only 1,700 cars, which they matched in 2008. But, in Eastern Europe Ferrari increased sales from 2007 to 2008 by more than 20%. Furthermore they increased sales figures in the Middle East, South Africa, and Japan.
According to Ferrari they relied on agrressive cost cutting measures and benefited from a greater offering of vehicles than previous years. The future looks great for Ferrari, with plans to produce facilities that will allow the manufacturer to produce their own energy. However, like other businesses, the CEO of Ferrari warns of the uncertainty of 2009 and does not intend to remain still.
It may sound a bit odd, considering the state of upheaval the US economy and much of the world is in, but Lamborghini sales rose 1% last year. A significant amount, when you consider their cars sell for around $200k each, which is making them consider new dealerships in 2009. The super rich always seem to have money, even in a down economy.
Matte Blue Lamborghini
Matte Blue Lamborghini
Matte Blue Lamborghini
At the Detroit auto show Lamborghini showed off their Matte Blue finish LP640. They were making a statement that those lucky enough to purchase a Lambo, were offered cosmetic options at the time of ordering. Custom colors are offered for everything from Brake Calipers to the type of leather used inside. Those with a big enough wallet can live by Lamborghini’s moto, “Think The Impossible”.