Tag Archive | "Kelley Blue Book"

KBB: New-Car Sales To Improve 10 Percent In June

Irvine, Calif. – New-car sales are expected to improve 6.0 percent year-over-year in June to a total of 1,363,000 units according to Kelley Blue Book (KBB). After adjusting for one fewer selling day this June, the 10.1 percent year-over-year gain will mark the strongest improvement thus far in 2013. The seasonally adjusted annual rate (SAAR) for June 2013 is 15.5 million, which is the highest SAAR since November 2012 at 15.5 million, and highest June SAAR since 2007 at 15.8 million.

“We’ve had a strong first half of the year with new-car sales up nearly 7 percent compared to the first half of last year,” said Alec Gutierrez, senior market analyst of automotive insights, KBB. “The industry continues to benefit from modest improvements in housing, unemployment and consumer confidence.”

As in May, Nissan will lead sales gains again this month and is expected to post a 14.9 percent increase, bouyed by demand for the newly redesigned Altima and Sentra. More consumers may be drawn to Nissan products since Nissan cut the manufacturer’s suggested retail price (MSRP) on seven of its models in May. Ford will rely on a strong pickup truck market and plentiful incentives on its F-150 to drive a 13.4 percent gain. Meanwhile, Hyundai-Kia is expected to decline 3.6 percent, as it faces production capacity constraints and competition from newer product offerings from other manufacturers, especially in the mid-size car segment.

Honda’s all-new Accord appears well-positioned to challenge the Toyota Camry for the top spot in mid-size segment sales this month, while the Ford Fusion and Nissan Altima are not far behind. Demand remains strong for large pickups and compact utility vehicles, both of which are expected to be up nearly 20 percent.

“Compact crossovers will capture more market share than ever before at 13 percent, fueled by recent redesigns of the Ford Escape, Honda CR-V and Toyota RAV4,” said Gutierrez. “Sales in the mid-size segment are expected to be relatively flat year-over-year; however, the fight for segment supremacy remains fierce.”

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KBB: Full-Size Cars in Trouble

Irvine, Calif. ─ April new-car sales were up 8.5 percent, while the seasonally adjusted annual rate dropped to 14.9 million, according to Kelley Blue Book (KBB).

Sales improved only 4.2 percent in April, which is well below the pace through the first quarter. Market share for full-size cars declined to 3.3 percent, with sales falling 10 percent from April 2012. Year to date, the full-size car segment was down 1.2 percent, which is far behind the overall industry’s 6.9 percent increase.

“In the long term, we don’t believe full-size cars will improve market share,” said Alec Gutierrez, senior market analyst of automotive insights, KBB. ”Instead, we expect market share to flatten out in the 3 to 4 percent range. Full-size cars don’t present a compelling value proposition for most, since mid-size sedans offer similar space and utility with greater fuel economy for less.”

Compact crossovers drove industry growth in April, with sales increasing 28.9 percent from last year. Market share for the segment grew to 12.9 percent of the industry, an all-time high.

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Kelley Blue Book Names 10 Best Green Cars of 2013

Irvine, Calif. — Kelley Blue Book named the 10 Best Green Cars of 2013 on its website, www.kbb.com.

The No. 1 green car was the 2013 Nissan Leaf. Nissan reduced the Leaf’s starting price by $6,000 for 2013, meaning that after the $7,500 federal tax savings, drivers can go all-electric for about $22,000. Rounding out the top five were the 2013 Tesla Model S, 2013 Ford Focus, 2013 Chevrolet Volt and the 2013 Toyota Prius Plug-in.

“A growing number of both eco-conscious drivers are going ‘green’ when it comes to the new car they choose to drive, and auto manufacturers have primed the pump with the widest array of offerings in the green car segment than ever before,” said Jack R. Nerad, executive editorial director and executive market analyst for Kelley Blue Book’s KBB.com.

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Retail Demand for New Cars Remains Strong, Despite Economy

IRVINE, Calif. – August new-car sales will hit 1,273,000 units overall, which is an 18.7 percent increase from last year, according to Kelley Blue Book. After adjusting for one additional selling day in August, car sales are projected to improve by a conservative 14.3 percent. Although sales remain strong from a year-over-year and seasonally adjusted annual rate (SAAR) perspective, the daily selling rate is expected to decline nearly 1,000 units per day compared to July 2012. This drop can be attributed to a seasonal decline in fleet sales taking place during the second half of this year. Retail sales volume will remain relatively flat month-over-month, outperforming seasonal expectations.

Retail demand from consumers has remained steady, despite a sluggish economic recovery. Although the economy continues to struggle, there were a handful of noteworthy positive developments in August. Consumer sentiment improved slightly, thanks to a growing belief that the housing market has bottomed, and that confidence bodes well for auto sales. Unemployment remains high at 8.3 percent and will continue to limit sales in the long term.

“Although economic jitters remain top-of-mind for many, those consumers seeking replacement vehicles continue to opt for new cars with used-car values remaining high,” said Alec Gutierrez, senior market analyst of automotive insights, Kelley Blue Book. “In fact, a recent survey of KBB.com shoppers conducted by Kelley Blue Book Market Intelligence found that 53 percent of respondents indicated they were considering a new vehicle rather than used due to elevated used-car values. Savvy consumers are likely opting to pay an extra $20 or $30 per month to buy or lease a new car than settle for a used vehicle with 20,000 miles or more.”

From a segment perspective, Kelley Blue Book expects a jump in sales of compact, subcompact and hybrid cars as consumers seek respite from rising fuel prices. Gas prices have increased by $0.30 per gallon since early July, and as a result, Kelley Blue Book has seen an increased interest in fuel-sipping small cars both in terms of KBB.com shopper activity and retail sales volume. Mid-size car sales also remain strong at 16.8 percent market share. The Toyota Camry will continue to lead segment sales; however, the 2013 Nissan Altima could sway consumers with its segment-leading 38 mpg highway.

Toyota and Honda are expected to improve 31 and 51 percent respectively year-over-year in August from each brand’s soft sales one year ago due to inventory shortages stemming from the earthquake in Japan. The rebound of Toyota and Honda is due to more than improved inventory levels. These brands have benefitted from well-received redesigns that have caught the attention of consumers seeking reliability and fuel efficiency. Camry sales have improved 40 percent through the first seven months of the year, while the Prius has soared 93 percent. Honda has benefitted from strong sales of the redesigned Civic and CR-V, each of which currently sit atop their respective segments with gains of 33 and 34 percent respectively.

“The resurgence of Toyota and Honda is especially impressive when we consider that they have been able to regain market share without relying on fleet sales,” said Gutierrez. “Toyota outsold General Motors three out of the seven months so far in 2012 in terms of retail sales volume. Honda, while still firmly in fourth place in terms of retail sales volume in the U.S., has only trailed Ford by 10,000 units on average through much of 2012. In August, Kelley Blue Book expects Toyota and General Motors to be neck-and-neck for the retail sales crown, while Ford will likely beat Honda by a respectable 14,000 units or more.”

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KBB Sees Auto Sales Pacing at 13.8 Million SAAR

IRVINE — Kelley Blue Book (KBB) said yesterday that it expects new-vehicle sales to surpass 1.05 million units this month, which means the industry would be pacing at a 13.8 million seasonally adjusted annualized rate (SAAR) — a 6.4 percent improvement from the year-ago period.

Bolstering the vehicle information site’s outlook are increased inventory levels, improved access to credit, attractive finance offers available to consumers and one additional selling day due to the leap year, officials said. New-vehicle sales have remained above 13.6 million SAAR since November 2011, but KBB said that it believes the annualized sales pace will slow after April, as pent-up demand is satisfied from Toyota and Honda’s inventory shortfalls.

“From a pure volume perspective, in the months ahead sales will continue to exceed last year’s figures, but there may be more volatility this year from month to month than in 2011,” said Alec Gutierrez, senior market analyst of automotive insights for KBB. “Sales were remarkably flat from May through November 2011, due to the production woes faced by Toyota and Honda. Now that they are producing vehicles at full capacity, a return to traditional seasonal patterns is likely through 2012.”

Consumers shopping in February and March will find an improved selection of vehicles available as a result of increased production in January, according to KBB. Manufacturers ramped up production in anticipation of President’s Day sales promotions and the onset of the spring selling season beginning in March.

As of Feb. 1, there were nearly 2.5 million vehicles available for sale on dealer lots — equivalent to a 66 days’ supply of vehicles overall, an improvement from the 52 days’ supply of vehicles available as of Jan. 1. The most significant inventory gains came from General Motors, Ford and Chrysler, each with greater than 80 days’ supply of vehicles available for consumers.

Touting a 50 days’ supply are Toyota, Honda and Nissan, while Hyundai and Kia only have a 30 days’ supply of vehicles overall, according to KBB. In the next month, car shoppers are expected to be able to negotiate savings by focusing on domestic vehicles, given the abundant supply currently available for sale. According to Autodata, domestic manufacturers spent more than $1,000 per unit more on incentives in January compared to their Japanese and Korean counterparts, a trend KBB expects will continue in February.

In terms of year-over-year growth, KBB said that it projects subcompacts to lead all other segments, especially with fuel prices surpassing $3.50 per gallon nationally.

“Although traditionally viewed as a budget segment reserved for those consumers willing to accept fewer amenities, cheaper materials and less than an awe-inspiring driving experience, today’s subcompacts compare favorably to many compacts or mid-size sedans,” said Gutierrez. “The Nissan Versa, Chevrolet Sonic, Ford Fiesta, Hyundai Accent, Honda Fit and Toyota Yaris all are excellent examples of either all-new or redesigned products that many consumers would be happy to call their own.”

The mid-size category was a strong performer in January, and KBB said that it anticipates February will be another solid month for the Camry-led segment. The Toyota Camry topped sales gains in January on the strength of its 2012 redesign.

Rising fuel prices and a slow economic recovery both stand as potential road blocks to continued improvements in new-vehicle sales, KBB noted. Oil prices closed at a nine-month high of nearly $105 on Feb. 20, while fuel prices have continued to climb for the past 60 days. Gas prices are up nearly 40 cents per gallon year-over-year and have increased steadily since late December. Although fuel prices remain high, current projections by the Energy Information Administration (EIA) place average fuel prices in 2012 only slightly above the highs experienced in 2011.

If conflict in Iran is avoidable, KBB said that it is hopeful that fuel prices will remain below the $4 highs of last year. In the worst case scenario, high fuel prices could slow the pace of the economic recovery and vehicle sales along with it.

The pace of the U.S. economic recovery remains very slow, and according to a recent forecast published by the Congressional Budget Office (CBO), the United States can expect much of the same through at least 2013. According to CBO estimates, the official unemployment rate, currently at 8.3 percent, will increase to 9.2 percent by the fourth quarter of 2013. In terms of overall economic output, Gross Domestic Product (GDP) is expected to show an annual increase of 2.2 percent in 2012, while 2013 will bring an even smaller 1.1 percent gain in GDP overall. Given the expectations for weak economic growth during the next several years, KBB said that it expects the pace of the new-vehicle sales recovery to slow.

Chrysler and Volkswagen Expected to Dominate Sales Gains in February


Sales Volume

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General Motors






Ford Motor Company






Toyota Motor Corp.






Chrysler Group






American Honda






Nissan North America






















*Includes projections for manufacturers not shown




Subcompact Cars to Lead Sales Gains in February


Sales Volume

Market Share






Mid-Size Cars





Compact Car





Compact Crossover





Full-Size Pickup Truck





Subcompact Car









*Includes projections for segments not shown





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KBB.com Names New Porsche 911 ‘Best Redesigned Vehicle’

IRVINE — Kelley Blue Book’s Kbb.com announced that the 2012 Porsche 911 was named the 2012 Best Redesigned Vehicle, giving the iconic sports car high marks for its exterior and interior design, enhanced performance, improved economy and clever engineering.

“Porsche’s designers and engineers were faced with the very difficult task of redesigning an icon while keeping all the aspects that made it an icon intact,” said Jack R. Nerad, executive editorial director and executive market analyst, Kbb.com. “They accomplished that task and more, creating a car that looks and handles better than its predecessor and is more fuel efficient to boot.”

The Best Redesigned Vehicle accolade honors the vehicle that best demonstrates improvement and superiority relative to its predecessor and competitors, according to the Website. In judging, the Kbb.com editors consider exterior and interior styling, technology, comfort and convenience features, performance/capability, driving dynamics, safety, fuel economy, overall refinement, and value, reported F&I and Showroom magazine.

Other vehicles making Top 10 list were the 2012 Mercedes-Benz SLK-Class (No. 10), the 2012 Ford Focus (No. 9), the 2012 Toyota Camry (No. 8), the 2012 Honda Civic (No. 7) and the 2012 BMW 6 Series (No. 6).

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