Japan 3, Even Subaru, Tumble in Rough Month
Even though 2019 has been marked by six monthly U.S. sales declines, the toll on the industry had been relatively small, with demand slipping less than a percentage point through August. According to Automotive News, that changed in a big way in September, as the biggest Asian automakers recorded steep sales declines on the first of a two-day sales reporting period. Nissan Motor Co. volume plunged 18 percent and Toyota Motor Corp. was down nearly as much for its biggest slide in eight years. Honda Motor Co., too, recorded its steepest drop in nearly as long. Hyundai ended a 13-month winning streak with an 8.8 percent setback. And for the first time since 2011, Subaru wound up in the losing column. Blame the calendar for some of the damage. September had two fewer selling days than the year-earlier month. More critically, sales around the critical Labor Day weekend this year were counted as part of August’s tally. That quirk helped lift August’s industry total 10 percent ahead of their year-ago pace, the industry’s biggest monthly increase in almost three years. Read more here.
BMW Beats Mercedes by Just 34 Cars in Tight U.S. Sales Race
BMW AG’s namesake brand was neck-and-neck with its German rival in the U.S. last month, edging Daimler AG’s Mercedes-Benz by a mere 34 cars and keeping the race for sales bragging rights close into the final stretch, reports Bloomberg. BMW posted a 6% gain in September, delivering to 27,467 cars and sport utility vehicles. The 3 Series sedan was up 19% and the X5 SUV more than doubled sales from a year ago. Mercedes deliveries rose 4.8% to 27,433, paced by deliveries of its GLC and GLE SUVs, which jumped 13% and 28%, respectively. BMW leads Mercedes by more than 8,200 vehicles through September. BMW has a lead of more than 8,200 vehicles over Mercedes year-to-date. But the latter is regaining some momentum after supplier bottlenecks at its assembly plant in Tuscaloosa, Alabama, left dealers with inventory shortages earlier this year. Read more here.
Subaru Plant Cancels Shift Due to Supplier Issue
According to Automotive News, Subaru of Indiana Automotive, Subaru Corp.'s lone manufacturing plant in the U.S., which makes two strong-selling crossovers, canceled its first shift on Tuesday because of a supplier issue. In an update Tuesday, the spokesman said the plant will resume operations for the second shift "Due to a supplier issue, first shift production has been canceled today," said a plant spokesman in an emailed statement. "However, in these types of situations, we typically do not disclose the name of the supplier or the issue." The plant, in Lafayette, Ind., produces the Impreza sedan and hatchback, Ascent three-row crossover, Legacy midsize sedan, and Outback midsize crossover. Production of the redesigned 2020 Legacy and Outback began in late July. The plant employs around 6,000 people. Read more here.
The Seven-Year Auto Loan: America's Middle Class Can't Afford Its Cars
About a third of auto loans for new vehicles taken in the first half of 2019 had terms of longer than six years, according to credit-reporting firm Experian PLC. A decade ago, that number was less than 10%. Car loans that are increasingly stretched out are a pronounced sign that some American middle class buyers can’t afford a middle-class lifestyle, reports The Wall Street Journal. Incomes have risen at a sluggish pace in the past decade, but car prices have grown rapidly. New technological and safety features, such as larger and more sophisticated multimedia displays, have made even the most basic cars more expensive. U.S. consumers have also veered toward pricier rides such as sport-utility vehicles that tend to dominate auto showrooms. The result is that consumers are seeking bigger loans than ever to purchase a car. Read more here (subscription required).
Gas Prices Dip Lower for Second Consecutive Week
The national average price for a gallon of regular gasoline slipped by 1.9 cents per gallon last week to reach $2.64, according to industry analysts at GasBuddy. That price remains well above the $2.56 average just before the drone attack on two major Saudi Arabian processing plants but down from the peak of $2.68 reached following the attack, reports USA Today. Crude oil traded around $55.11 a barrel just before noon Monday, down about 1.5% from Friday's closing price. Over the past month, the price of West Texas Intermediate crude for immediate delivery has dipped by about $8.00 a barrel (nearly 13%) from the price just two weeks ago. GasBuddy's head of petroleum analysis, Patrick DeHaan, commented, "Oil prices have cooled back off after Saudi Arabia brought a significant portion of oil production and processing back online, helping the national average to begin moving lower again, but don’t tell California[ns]- who saw a massive spike of nearly 25 cents per gallon in the last week, fueled by refining issues there." Read more here.
KAR Auction Services Rebrands as KAR Global
KAR Auction Services Inc. announces that it has rebranded and will begin doing business as “KAR Global.” The move comes after several years of rapid geographic expansion across North America and Europe and the company’s acquisition and development of new technology and data-driven products, services and capabilities. Headquartered in the heart of the Midwest’s innovation and technology corridor, KAR Global has more than 200 operating locations in ten countries and customers in over 75 countries. KAR Global will continue to trade on the New York Stock Exchange under the ticker symbol “KAR.”
“At KAR, we have a fast, fearless and entrepreneurial culture, and we’ve been pioneers in the auction business for decades,” said Jim Hallett, chairman and CEO of KAR Global. “But we’re a lot more than just ‘auction services.’ We’re rethinking and reimagining remarketing for our diverse sellers and buyers across the automotive sector. These global customers want global solutions — and that’s what KAR Global delivers.” Read more here.
Around the Web
You Can Now Buy a Mazda 3 TCR Race Car [Road and Track]
NYC to Ban Most Vehicle Traffice From 14th Street [MotorAuthority]
Porsche Panamera Celebrates a Decade on Sale with 10 Year Package [Autoblog]
GM Idles a Pickup Truck Plant in Mexico Amid U.S. Strike [WSJ]
