Aston Martin's First Utility Vehicle Key to Sales Growth Plans
Aston Martin CEO Andy Palmer said the company’s first utility vehicle arriving later this year will be crucial for the British luxury-car maker, which is trying to revive sales growth and rebuild investor trust. According to Automotive News, the DBX will add about 4,000 units to annual deliveries after its launch in late 2019, Palmer told reporters in Tokyo. The automaker cut its overall sales target for this year by 11 percent last month to a minimum of 6,300 cars. The DBX will be the biggest step yet in Palmer’s campaign to win over buyers and regain investor confidence in the Gaydon, England-based automaker. Waning demand in the U.K. and Europe have left Aston Martin’s stock valued at a quarter of its initial public offering price just 10 months ago -- the worst-performing new listing on London’s main market in more than two years. “The key, of course, is DBX,” Palmer told reporters at the brand’s dealership in central Tokyo. “When you see DBX, when you hear DBX and when you drive DBX, it should shout Aston Martin at you.” Read more here (subscription required).
Volkswagen Upgrades Tech and Safety Features for 2020
Volkswagen redesigned the Passat for 2020, and other models are getting slight updates for the new model year, reports USA Today. The automaker is adding more standard safety features to its lineup, as well as standard Wi-Fi and wireless charging on many vehicles. All versions of the Atlas SUV, Arteon sedan, Golf and GTI hatchbacks, Jetta and Jetta GLI sedan, and Tiguan SUV get the next generation of Volkswagen’s Car-Net connectivity system, as well as in-car Wi-Fi capability when you subscribe to a data plan. In safety news, Volkswagen is making many active safety features standard across its lineup. For the 2020 Tiguan, front assist (forward collision warning with automatic emergency braking), side assist, and rear traffic alert systems are now standard on all models. Read more here.
Car-Crazy Californians Slow Their Purchase of New Vehicles
New car sales in the largest U.S. auto market have slowed this year as more and more drivers opt for less-expensive used cars, reports CNBC. New vehicles sales in California dropped 5.6% in the first half of 2019, setting the state on track for full-year sales to fall short of 2 million vehicles for the first time since 2014, according to the California New Car Dealers Association. “It is not a huge surprise that after years of increased sales, we are seeing the market level off, reflecting the broader economic and political climates,” Ted Nicholas, the association’s chairman, said in a release Wednesday announcing sales for the first half of the year. The drop in new vehicle sales in California is greater than the 1.5% decline seen in the U.S. from January through June. Sales of new cars, which include sedans and compacts, dropped by 10.8% during the first half of the year across the state while sales of new pickups, SUV’s, crossover utility vehicles, and other light trucks fell by 1.1%. Read more here.
Leasing Strength to Continue; Off-Lease to Boost CPO
A shade over 29% of new-vehicle sales in the first quarter of the year were leased, according to Experian’s latest State of the Automotive Finance Market report. Auto Remarketing reports that’s down a smidge from 29.83% a year earlier, but Experian notes in the report that a lease “continues to be a sought-after product, generating payments on average $98 lower than loans.” In fact, Kelley Blue Book shares data from Experian indicating the leasing’s penetration of new-car retail sales in March was 34%, an all-time high. In the 2019 “Automotive Industry Trends: Mid-year Update” report, released in late June, Edmunds said that year-to-date lease penetration was at 32.2% through May, which is the highest in its data set that goes back to 2002. A year ago, year-to-date lease penetration was 31.5%; and in 2017, it was 31.3%. It reached 32.1% through May 2016. Read more here.
Luxury Automakers from Bugatti to Pagani to Debut New Cars at Pebble Beach
Thousands of classic car fans are rolling onto California’s Monterey Peninsula for what has become one of the year’s most eagerly awaited automotive events, reports CNBC. Centered around Sunday’s Pebble Beach Concours d’Elegance, it’s a week-long series of car shows, auctions, parties and other events featuring some of the world’s rarest and most expensive collector cars. But what has become known as Pebble Beach car week has also become a major event for new car fans, as well. More than a dozen different luxury brands, including Acura, BMW, Bugatti, Mercedes-Benz and Pininfarina, will be on hand to show off their latest concept and production models, many of them making their world debuts. Click here for a look at some of the more significant introductions that already have been confirmed for Pebble Beach Car Week.
Webinar: Tax Reform Status Update for Dealers
Join AutoTalk on Tuesday, August 20th at 2:00pm ET as Amy Stillwell and Dan Cheyney of Moss Adams' Automotive and Dealer Services Group update dealers on:
-
Additional tax plan clarification on dealer operations
-
What we know now
-
How tax reform effects dealers
-
What you can do to minimize your taxes
Around the Web
The Most Reliable Car Brands and Their Reliable Cars [Gear Patrol]
This James Bond Aston Martin Was Just Auctioned for $6.4M [CNN]
Bugatti's New $18.7M Hypercar is the Most Expensive New Car Ever Sold [Business Insider]
Ford Focus, Fiesta Models Had Flawed Transmission, Sold Them Anyway [Detroit Free Press]
