For the third straight year, the Toyota Camry mid-sized sedan tops the 10 vehicles in Cars.com's annual American-Made Index.
The index ranks U.S.-assembled vehicles based on the percentage of their parts made in the United States and the number of vehicles sold to domestic consumers. At least 75 percent of the parts in every vehicle on the list were made in the United States.
"The Camry remains an incredibly popular vehicle, and higher total sales require a higher number of U.S. factory workers and a larger number of U.S. suppliers -- all of which contribute to Toyota's ranking," Cars.com's editor-in-chief, Patrick Olsen, said in a statement.
Most Camrys are assembled at Toyota's Georgetown, Ky., plant, which employs 6,429 people.
About 25 percent of Camrys are made at Subaru's plant in Lafayette, Ind., Toyota spokesman Jim Wiseman said. Toyota contracts with Subaru to make the vehicles, Wiseman said.
Through May 31, Toyota sold 125,218 domestically made Camrys in the United States and about 80 percent of the parts in the Camry are made domestically, Olsen said.
Wiseman said today that the company was committed to using locally made parts.
"Part of Toyota's guiding principles is to support the communities where we're based," Wiseman said. "The best way we can do that is by using locally made parts."
While it's advantageous for foreign automakers to use U.S.-made parts, Olsen said the Detroit 3 use fewer locally made parts to cut costs and better compete globally.
"They've lessened their domestic parts content but strengthened their bottom line," Olsen said in a telephone interview.
Two other Toyota vehicles cracked the top 10: the Sienna minivan at No. 6 and the Tundra full-sized pickup at No. 9 . With three vehicles in the rankings, Toyota tied General Motors for the most vehicles in the top 10.
GM's Chevrolet Malibu mid-sized sedan ranked third, up from fifth last year. The Chevrolet Traverse crossover was No. 8 and the GMC Acadia crossover rounded out the list at No. 10. Neither the Traverse nor the Acadia was on the list last year.
For the second straight year, the Honda Accord claimed the second spot in the rankings. The Accord is built at the automaker's Marysville, Ohio, plant and 120,035 American made units were sold in the first five months of 2011.
Honda's Odyssey minivan also made the list, coming in at No. 5.
The Chicago-made Ford Explorer made its debut on this year's list at No. 4 and is the only Ford Motor Co. vehicle to make the rankings. According to Olsen, 85 percent of the Explorer's parts are made in the United States.
The Jeep Wrangler, ranked No. 7, is the only Chrysler vehicle on the list.
Showing posts with label Used Cars. Show all posts
Showing posts with label Used Cars. Show all posts
Wednesday, June 29, 2011
Monday, May 16, 2011
Dealers fear used-car bubble
Auction prices soar, but some say retail demand isn't on same pace
Already high used-vehicle prices are surging at auctions as dealers anticipate gaps in new-car inventories and snatch up used vehicles to fill their lots.
Fears of impending new-vehicle shortages as a result of the March 11 earthquake have pushed up used-vehicle prices. In recent weeks those fears have created a buying frenzy, especially for late-model, fuel-efficient vehicles.
But Damon Schoen, wholesale director at Hamilton Nissan in Hagerstown, Md., and others say retail demand for those vehicles has yet to catch up with the wholesale demand. They warn that used-vehicle auction prices could drop sharply.
Last week Schoen saw 2010 Hyundai Accents with 30,000 miles selling at auction for around $10,500 -- about $2,000 more than he would have paid at the end of February, he says.
His customers aren't clamoring for small used cars, he says, because they would pay almost as much for a used one as a new one. And he acknowledges that he might have to rejoin the bidding if he runs low.
"I participated in the bubble process," he says. "I have enough of these little things gathered up. When we start selling a couple, I'll be forced to go back to the well to replace them."
Michelle Primm, managing partner at Cascade Auto Group, which sells Audi, Mazda, Porsche and Subaru vehicles in Cuyahoga Falls, Ohio, typically buys the used vehicles she needs through auctions run by the manufacturers of her brands. But even those prices have "overheated," she says.
In an effort to find used vehicles with lower prices she has expanded her search to include local classified ads for private sellers and vehicles that have been repossessed.
Primm says consumer demand doesn't line up with the auction bidding because the general population does not understand the inventory problem facing the industry over the next few months. Dealers must plan ahead so they are ready, she says. "Dealers plan 60, 90 or 100 days out. It's what we're good at."
Even so, some dealers and analysts warn that auction buyers could get stuck with vehicles for which they overpaid. Falling new-car prices or lower gasoline prices could prompt a drop in used-vehicle prices, they say.
Since the Japan quake, rising new-vehicle transaction prices have, in turn, lifted used-vehicle prices. But that could change.
Last week, after announcing that its North American factories would be cranking up production sooner than expected, Toyota Motor Sales U.S.A. announced regional cash, interest-rate and lease incentives on most vehicles. Nissan Motor Co. followed suit.
Up 10% in one month
But for now, wholesale used-vehicle prices continue to surge. In its June 1 edition, NADA Used Car Guide raises its suggested prices of used small vehicles by about 10 percent from May levels. And some nameplates will jump even more.
For June, the NADA Guide raises the price of a 2007 Toyota Prius by $1,950, or 15 percent from May, to $15,350 and a 2010 Honda Civic LX sedan by $1,675, or almost 12 percent, to $15,950.
The increases are not limited to Japanese-brand vehicles. The NADA Guide raises the average price of the 2007 Chevrolet Aveo LS sedan by $750, or 14 percent, to $6,125, and that of the 2010 Hyundai Accent GLS by $1,175, or 11 percent, to $11,900.
Typically, used-vehicle prices peak in March and decline from April through June, says Jonathan Banks, NADA Used Car Guide senior director of editorial and data services.
This year, he predicts, used-vehicle prices will peak in June and flatten on the high side in July as new-vehicle prices gradually rise because of lower incentives and higher sticker prices. "We saw new-car incentives on small cars go down by about $400 from March to April. And we expect a similar move from April to May, which means used-car prices can go up," Banks says.
Pump price impact
Alec Gutierrez, manager of vehicle valuation at Kelley Blue Book, cautioned dealers to resist the temptation to load up on fuel-efficient vehicles. He says gasoline prices are predicted to fall in mid to late summer. When that happens, prices of fuel-efficient vehicles will drop significantly.
The price of the benchmark West Texas Intermediate crude oil hovered around $99 a barrel late last week, after flirting with $115 a barrel early this month.
"As we saw in 2008, when gas prices peaked at $4.10 per gallon, by year end we were back down to $1.60," Gutierrez says. "We're not saying we think prices are going to drop that much, but $3 or $3.50 a gallon is a possibility."
Already high used-vehicle prices are surging at auctions as dealers anticipate gaps in new-car inventories and snatch up used vehicles to fill their lots.
Fears of impending new-vehicle shortages as a result of the March 11 earthquake have pushed up used-vehicle prices. In recent weeks those fears have created a buying frenzy, especially for late-model, fuel-efficient vehicles.
But Damon Schoen, wholesale director at Hamilton Nissan in Hagerstown, Md., and others say retail demand for those vehicles has yet to catch up with the wholesale demand. They warn that used-vehicle auction prices could drop sharply.
Last week Schoen saw 2010 Hyundai Accents with 30,000 miles selling at auction for around $10,500 -- about $2,000 more than he would have paid at the end of February, he says.
His customers aren't clamoring for small used cars, he says, because they would pay almost as much for a used one as a new one. And he acknowledges that he might have to rejoin the bidding if he runs low.
"I participated in the bubble process," he says. "I have enough of these little things gathered up. When we start selling a couple, I'll be forced to go back to the well to replace them."
Michelle Primm, managing partner at Cascade Auto Group, which sells Audi, Mazda, Porsche and Subaru vehicles in Cuyahoga Falls, Ohio, typically buys the used vehicles she needs through auctions run by the manufacturers of her brands. But even those prices have "overheated," she says.
In an effort to find used vehicles with lower prices she has expanded her search to include local classified ads for private sellers and vehicles that have been repossessed.
Primm says consumer demand doesn't line up with the auction bidding because the general population does not understand the inventory problem facing the industry over the next few months. Dealers must plan ahead so they are ready, she says. "Dealers plan 60, 90 or 100 days out. It's what we're good at."
Even so, some dealers and analysts warn that auction buyers could get stuck with vehicles for which they overpaid. Falling new-car prices or lower gasoline prices could prompt a drop in used-vehicle prices, they say.
Since the Japan quake, rising new-vehicle transaction prices have, in turn, lifted used-vehicle prices. But that could change.
Last week, after announcing that its North American factories would be cranking up production sooner than expected, Toyota Motor Sales U.S.A. announced regional cash, interest-rate and lease incentives on most vehicles. Nissan Motor Co. followed suit.
Up 10% in one month
But for now, wholesale used-vehicle prices continue to surge. In its June 1 edition, NADA Used Car Guide raises its suggested prices of used small vehicles by about 10 percent from May levels. And some nameplates will jump even more.
For June, the NADA Guide raises the price of a 2007 Toyota Prius by $1,950, or 15 percent from May, to $15,350 and a 2010 Honda Civic LX sedan by $1,675, or almost 12 percent, to $15,950.
The increases are not limited to Japanese-brand vehicles. The NADA Guide raises the average price of the 2007 Chevrolet Aveo LS sedan by $750, or 14 percent, to $6,125, and that of the 2010 Hyundai Accent GLS by $1,175, or 11 percent, to $11,900.
Typically, used-vehicle prices peak in March and decline from April through June, says Jonathan Banks, NADA Used Car Guide senior director of editorial and data services.
This year, he predicts, used-vehicle prices will peak in June and flatten on the high side in July as new-vehicle prices gradually rise because of lower incentives and higher sticker prices. "We saw new-car incentives on small cars go down by about $400 from March to April. And we expect a similar move from April to May, which means used-car prices can go up," Banks says.
Pump price impact
Alec Gutierrez, manager of vehicle valuation at Kelley Blue Book, cautioned dealers to resist the temptation to load up on fuel-efficient vehicles. He says gasoline prices are predicted to fall in mid to late summer. When that happens, prices of fuel-efficient vehicles will drop significantly.
The price of the benchmark West Texas Intermediate crude oil hovered around $99 a barrel late last week, after flirting with $115 a barrel early this month.
"As we saw in 2008, when gas prices peaked at $4.10 per gallon, by year end we were back down to $1.60," Gutierrez says. "We're not saying we think prices are going to drop that much, but $3 or $3.50 a gallon is a possibility."
Sunday, May 08, 2011
Manheim used-car price index hits another record high
Tighter new- and used-vehicle supplies and increased retail demand helped push the Manheim Used Vehicle Value Index to another record in April.
The index, which measures used-vehicle prices, stood at 126.6 last month, up from 124.2 in March and 120.7 in April 2010. The previous record was set in January 2011 at 124.9.
“Wholesale used vehicle prices are also now being supported by the new-vehicle market’s tight inventories, steady demand and higher net transaction prices,” Manhiem said in its monthly commentary.
The index started in January 1995 at 100 and is adjusted for vehicle mileage, model mix and time of year.
Citing data compiled by CNW Marketing Research, Manheim said used-vehicle sales by franchised and independent dealers rose to 7,158,917 units in the first four months of 2011, up 10 percent from the year-earlier level. Sales rose 14 percent to 2,650,619 in April.
Manheim also said certified used-vehicle sales are on pace to set a new record in 2011.
The index, which measures used-vehicle prices, stood at 126.6 last month, up from 124.2 in March and 120.7 in April 2010. The previous record was set in January 2011 at 124.9.
“Wholesale used vehicle prices are also now being supported by the new-vehicle market’s tight inventories, steady demand and higher net transaction prices,” Manhiem said in its monthly commentary.
The index started in January 1995 at 100 and is adjusted for vehicle mileage, model mix and time of year.
Citing data compiled by CNW Marketing Research, Manheim said used-vehicle sales by franchised and independent dealers rose to 7,158,917 units in the first four months of 2011, up 10 percent from the year-earlier level. Sales rose 14 percent to 2,650,619 in April.
Manheim also said certified used-vehicle sales are on pace to set a new record in 2011.
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