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Car Wars report predicts Hyundai, Kia will lose market share
Posted by: | CommentsFiled under: Car Buying, Ford, GM, Hyundai, Kia, Toyota, Earnings/Financials
The annual “Car Wars” report by Merrill Lynch analyst John Murphy predicts that, despite their seizing of U.S. market share over the last few tumultuous years, Korean brands Hyundai and Kia will give it all back and then some to companies like Ford, General Motors and Toyota by 2016.
Murphy bases his predictions not on tea leaves or crystal balls, but rather the rate at which automakers launch new products. Ford will replace 26 percent of its product line over the next four years, a number that represents 46 percent of its volume, while General Motors will replace 25 percent and Toyota 24 percent. On account of these new product launches, Murphy says Ford can expect to add 0.8 percentage points of market share, General Motors will recover 0.5 points and Toyota will add another 0.3 points.
Other automakers that won’t be so aggressive in turning over their lineups with new models include Chrysler, Honda, Nissan and the European brands, which Murphy surmises will all remain flat in terms of market share.
Hyundai and Kia, meanwhile, will be introducing fewer new models than the rest and therefore, Murphy predicts, will see a 0.5 decline in U.S. market share.
Of course, these are all just predictions and can be blown to bits with the next unforeseen economic crisis or natural disaster, just like the last three years were. And there are other factors that might affect market share for each automaker during the next three years, including the availability of raw materials, exchange rates, union contracts, recalls and a million another minor things that might grow to become big things, not the least of which is consumers deciding they actually like all those new products being launched.
Car Wars report predicts Hyundai, Kia will lose market share originally appeared on Autoblog on Fri, 18 May 2012 18:14:00 EST. Please see our terms for use of feeds.
Ford books $1.4B, profits dragged down by Europe and Asia
Posted by: | CommentsFiled under: China, Europe, Ford, Earnings/Financials
What a difference a few years make. Back in 2009, Ford Motor Company’s North American operations were dragging down its earnings. The company reported a net loss of $1.4 billion in that year’s first quarter when market share in the U.S. was falling but rising overseas. The situation today, however, is the mirror opposite.
Today Ford reported a first-quarter net income for 2012 of $1.4 billion on the strength of sales in the States. While that’s a 180-degree turnaround compared to the same quarter in 2009, it’s still a decline in earnings compared to the $2.6 billion earned just last year. This time, however, the blame for the fall lies with Ford’s operations in Europe and Asia.
In Europe, Ford reported an operating loss this quarter of $149 million, blaming the continent’s shrinking markets and weaker demand for parts and accessories. The company’s Asian operations reported an operating loss of $95 million, which can be attributed more to investments in new plants for increased production than shrinking sales. Ford attributes the rest of its losses during the first quarter to higher tax expenses and special charges.
Fortunately, Ford’s North American operations were able to offset most of the company’s losses elsewhere. The region reported a pre-tax operating profit of $2.1 billion, up from $1.8 billion last year and the highest quarterly profit here since 2000. Revenue in this region alone was $18.6 billion, up $700 million from the same quarter last year and the largest chunk of the automaker’s global quarterly revenue of $32.4 billion, which was down $700 million.
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Ford books $1.4B, profits dragged down by Europe and Asia originally appeared on Autoblog on Fri, 27 Apr 2012 10:30:00 EST. Please see our terms for use of feeds.
Next Ford Mustang to ditch retro look in favor of futuristic Evos styling?
Posted by: | CommentsFiled under: Coupe, Performance, Ford, Design/Style
Matt Ramsey from The Wall Street Journal claims that the next-generation Ford Mustang will be ditching its ’60s-inspired retro styling. Citing people familiar with Ford’s plans who have seen the new Mustang, Ramsey claims the new model will look more like the 2013 Fusion and be a dead ringer for the Evos concept car that debuted at the Frankfurt Motor Show last fall. The reason for abandoning the retro-inspired styling, says Ramsey, is Ford’s desire to appeal to Generation Y consumers – people born between 1980 and 1999.
It may very well be the case that the next Mustang, which Ramsey says will be a 2014 model (we suspect it will be labeled a 2015), will look a lot like the Evos concept, but we don’t buy some of the author’s reasoning for why the Stang’s retro look might be going away. He cites declining sales of certain retro-styled vehicles like the Volkswagen Beetle and Mustang itself, but having just experienced an economic recession, many models saw their sales decline during the past two years compared to prior peaks, not just ones with retro styling. In particular, he cites Volkswagen selling just 6,468 units of the New Beetle last year compared with over 81,000 in 2000, but last year was that generation’s final year of sales. It has been replaced with the all-new-but-equally-retro 2012 Beetle, sales of which are up 2,722 percent so far in 2012.
And as for the Mustang, after enjoying a competition-free pony car market from 2002-2010, it’s now sharing that segment’s sales with worthy competition from both Chevrolet and Dodge. Its sales are certainly below their peaks from last decade, but again, a recession and new competition where there was none before will do that.
So while we have no reason to argue against Ramsey’s claim about the next Mustang moving away from its retro roots, we’re not sure we buy his evidence for the reason behind it.
Next Ford Mustang to ditch retro look in favor of futuristic Evos styling? originally appeared on Autoblog on Mon, 16 Apr 2012 15:29:00 EST. Please see our terms for use of feeds.
Edsel Ford’s 1934 Model 40 Special Speedster
Posted by: | CommentsFiled under: New York Auto Show, Classics, Convertible, Ford, Lincoln, Design/Style
If you’ve attended major international auto show in the U.S. this season, you’ve likely seen this car: Edsel Ford’s 1934 Model 40 Special Speedster. We first saw it at the Pebble Beach Concours d’Elegancee last August, then again in January at the Detroit Auto Show. It is, frankly, a most beautiful specimen, and since we hadn’t yet taken the opportunity to capture it with our own lenses, New York seemed like the perfect place to hold an impromptu shoot.
The Speedster has a very long history going back to 1932 when Edsel Ford, then president of Ford Motor Company, returned from Europe and asked design director E.T. Gregorie to pen a sports car similar to the ones he saw running around Europe. It started out as a 1934 Ford, but was radically altered to make a low slung, two-seat sports car with technology that wouldn’t appear on production Fords for many years. It originally weighed 2,100 pounds and was powered by a 75-bhp Model 40 flathead V8 that was later replaced by a 100-bhp Mercury V8.
Edsel Ford enjoyed the car until his death in 1943, at which point the car began a journey of many ownerships, ultimately vanished and then resurfaced in 1999 when it was sold to a collector for $1.76 million. When the collector died, the Speedster was given to the Edsel and Eleanor Ford House who oversaw a complete restoration of the car. It now travels the auto show circuit, on display in a place of honor within the Lincoln display.
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Edsel Ford’s 1934 Model 40 Special Speedster originally appeared on Autoblog on Fri, 06 Apr 2012 13:31:00 EST. Please see our terms for use of feeds.