Toyota Says Retail Demand Bouncing Back, Inventory Remains 'Lumpy'
Toyota's U.S. dealers are coming off their best weekend since the coronavirus pandemic hit in late March in a continuing display that buyers are once again ready to purchase new vehicles, executives said Monday. But, reports Automotive News, while retail demand is still down about 15 percent from the same point a year ago, the industry is likely to go through several "lumpy" months this summer as automakers continue to ramp up plants after extended shutdowns and reconfigure output in the face of anemic fleet demand, said Bob Carter, head of sales for Toyota Motor North America. Speaking to reporters on a conference call, Carter said the automaker is seeing several signs that retail demand is strong, including a more than 50 percent jump in quality Internet leads from the automaker's Tier One Website. "We're seeing the retail consumer be very, very resilient," Carter said. "We're running about 82 to 85 percent of the same retail level that we did last year. What is not recovering that we're seeing is the commercial and fleet buyers." Read more here.
U.S. Expected to Report Record Rise in Monthly Retail Sales
Reuters reports that U.S. retail sales likely experienced a record rise in May as 2.5 million Americans went back to work, although any rebound will retrace only a fraction of the historic drops in March and April amid the coronavirus lockdowns. The monthly report, due to be released by the Commerce Department on Tuesday, is expected to show overall receipts at U.S. retailers jumped 8.0% last month, according to a Reuters poll of economists. That would exceed the previous record increase of 6.7% in October 2001 as Americans resumed spending following what was then a record pullback in the aftermath of the September 11, 2001, attacks on the United States. The likely sales rebound was probably led by strong auto sales as the relaxing of lockdowns across the country allowed car dealership showrooms to reopen. May’s sales rate climbed above 12 million vehicles per year after dropping below 9 million in April, according to Wards Intelligence. Read more here.
Nissan Unveils 2021 Rogue Crossover as Key Product in Global Turnaround Plan
Nissan Motor has redesigned its best-selling Rogue crossover, a key product in a global turnaround plan for the embattled Japanese automaker, reports CNBC. The third-generation compact crossover features a sleeker design, increased power and additional technology, including an enhanced version of the company’s “ProPilot Assist” driver-aid system. Nissan also added a new high-end trim to the Rogue lineup. “It is one of, if not the most important product in our lineup,” Jared Haslam, vice president of product planning for Nissan North America, said during a Zoom media briefing. “This all-new Rogue is certainly fitting of that moniker, being the most important.” The 2021 Rogue — available in the fall — is the first of five new or redesigned vehicles in the U.S. for Nissan in the coming year. They are part of a global turnaround plan unveiled in May. Read more here.
The Coronavirus Pandemic Can't Stop Americans From Buying Pickups
Not even a global pandemic can stop Americans from buying their beloved pickups, apparently. USA Today reports that while sales of passenger cars and SUVs have fallen sharply, pickup sales have held up surprisingly well as Americans take advantage of low-interest financing offers and refuse to let economic concerns stop them from getting the vehicle they've had their sights set on. As the coronavirus pandemic raged, sales of passenger cars plunged 48.6% from March through April, compared with a year earlier, according to car research service Kelley Blue Book. Sales of SUVs fell 36.6%. Sales of pickups fell 18.7%. Much of the decline was due to a drop in purchases by commercial and government buyers, according to analysts. Although some automakers haven't released a detailed breakdown of their performance, retail pickup sales were much stronger than fleet buys, analysts said. Read more here.
Tesla Negotiating Incentives for Possible Texas Vehicle Assembly Plant, Report Says
Reuters reports that electric carmaker Tesla Inc is negotiating possible incentives with a Texas county that could bring a new auto assembly plant to the area near Austin, the state capital, the Austin American-Statesman reported on Monday. Travis County Commissioners Court is scheduled to discuss terms of the deal on Tuesday, the paper reported, citing people with knowledge of the situation. A vote is expected in the coming weeks. The paper said it was unclear whether negotiations with Travis County show that Tesla has picked the Austin region as the site for the plant, which would build the company’s electric pickup truck and Model Y SUV and employ thousands of people, or if the company is also negotiating with officials in Tulsa, Oklahoma. Read more here.
Webinar TODAY: COVID-19's Impact on the Dealership Buy/Sell Market
Don’t miss Kerrigan Advisors’ webinar, happening today, about the effects of COVID-19 on the buy/sell market and franchise values. Learn how blue sky multiples are changing as a result of the coronavirus and expectations for transaction activity in the second half of 2020. This is a not-to-miss webinar for dealers looking to grow their group and those who are considering a sale in the near future. Happening today, Tuesday, June 16, at 2:00 p.m. EDT. Click here to register.
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