Tag: reports

By on July 18, 2019

J.D. Power’s annual Automotive Brand Loyalty Study came out for 2019 this week. According to the outlet, Subaru outranks every other brand when it comes to consumer loyalty. That meshes with any anecdotal evidence I’ve accumulated by just speaking with people. Despite some nagging quality concerns stemming from the company’s swift sales growth, most people I know that have driven a Subaru still want one.

Subaru also has been running some of the best advertisements within the industry with the broadest possible appeal (as they often feature dogs) over the last few years. Almost every woman I’ve spoken with feels positively about the brand and, while I can’t say the same about the men, it’s not a nameplate that receives much ire with laypersons — minus the odd tale of a tragic timing chain mishap (I told you to take it in, Sean).  (Find Out…)

By on June 24, 2019

Subaru was one of the few automakers experiencing growth going into the Great Recession. When the financial crisis struck in earnest, Subaru’s volume briefly dipped to pre-recession levels before resuming its climb. Thanks largely to an enviable public image and desirable lineup, Subaru’s annual deliveries tripled between 2009 and 2018 inside the United States.

However Subaru’s quality rankings have lapsed in its quest to meet elevated demand. There has been a surge in recalls for the brand and some unsavory claims coming from the factory. According to internal documents seen by , one of the primary reasons for this was due to rampant supply chain issues. The papers indicate that nearly half of Subaru’s suppliers were recently operating at quality levels below the company’s internal targets. Subaru is currently overhauling its own production processes and working with suppliers to improve quality and avoid developing a poor reputation with customers.  (Find Out…)

By on June 20, 2019

Many consumers continue to misunderstand the driver-assistance technologies being placed in modern vehicles, according to the latest survey released by the . But we don’t need the IIHS to tell us that. We’ve been documenting the avoidable accidents created whenever motorists overestimate what their high-tech cars are capable of for years now.

However, the insurance institute and numerous consumer advocacy groups have suggested that big part of the problem stems from the names manufacturers are using to describe their semi-autonomous hardware. Titles like “Autopilot” or “Driving Assistant Plus” can be confusing to somebody who didn’t bother to read the manual, especially when the associated marketing materials are often helping to steer them further in the wrong direction.  (Find Out…)

By on June 18, 2019

The National Highway Traffic Safety Administration has released its on how many people died on U.S. roadways in 2018, indicating that overall traffic deaths had likely fallen by 1 percent. While the information doesn’t exactly justify a party, it’s good news after the last few years attempted to provide new footage for the Red Asphalt series.

As the first major spike in traffic deaths since the “Swinging Sixties,” 2015 freaked everyone out a bit. Save for a few annual hiccups, American traffic deaths (contrasted with its population) had been on the decline for decades. However, by the end of 2016, things looked certain — it was becoming less safe to drive in the United States.  (Find Out…)

By on June 11, 2019

With Europe and China promoting aggressive emission mandates, including proposals to eventually prohibit the sale of internal combustion vehicles, electric cars look to be a shoe-in. The UK’s Committee on Climate Change recently recommended moving up the country’s 2040 deadline to end the sale of gasoline or diesel cars to 2035 as part of a wider target to cut the country’s net greenhouse gas emissions to zero by 2050.

Unfortunately, battery electric vehicles still represent less than 1 percent of the region’s new car sales. While EV sales rose 63 percent in April vs the previous year, the adoption rate doesn’t appear to be on the same track as regulatory measures pushed by various authorities.

According to government-commissioned poll from 2016, range anxiety appears to be the primary culprit in the United Kingdom. Most respondents cited recharging their battery as their biggest hangup, with elevated EV costs playing second fiddle. (Find Out…)

By on May 21, 2019

As ride-hailing services utilize the personal vehicles of contractors, rather than a commercial fleet of their own, repairs and recalls have to be handled by individual drivers. While it shouldn’t be a revelation that some recalls fall through the cracks, is concerned that the ratio of unaddressed safety issues are unbecoming of companies pushing multibillion-dollar IPOs.

“Uber and Lyft are letting down their customers and jeopardizing their trust,” suggested William Wallace, products policy manager for Consumer Reports. “Uber’s website says people can ‘ride with confidence,’ while Lyft promises ‘peace of mind,’ yet both companies fail to ensure that rideshare cars are free from safety defects that could put passengers at risk.”  (Find Out…)

By on May 13, 2019

Having already announced plans to cut thousands of jobs in Europe in an effort to stem the region’s ongoing cash hemorrhage, Ford has reportedly begun re-examining the United Kingdom. Initially, the automaker’s restructuring plan involved ending production at a transmission plant in France, killing the C-Max in Germany, and dissolving its Ford-Sollers joint venture in Russia.

While Ford hoped to shed as many employees as possible through voluntary retirement, it acknowledged it would have to fire at least 5,000 people in Germany and an unspecified number of U.K. citizens in March. The company hasn’t settled on a figure, though inside sources claim it should be no more than 550 jobs — all of which should be of the non-manufacturing variety.  (Find Out…)

By on April 26, 2019

Automakers find themselves a bit of a pickle right now. The shift towards “mobility” has resulted in high development costs for electric and autonomous vehicles in the midst of stagnating sales growth. There’s also a trade war hurting global demand and impacting supply chains. Ultimately, this resulted in a lackluster Q1 for many manufacturers.

Ford’s situation was symbolic of the industry’s general plight, per its 34-percent decline in net revenue for the first quarter of 2019, but it wasn’t without a warm ray of hope. The company posted a 12-percent increase in earnings (before before interest and taxes) over the same period due to North America’s consistent desire to own SUVs, crossovers, and pickups. Ford’s share price also improved, hitting the $10 mark for the first time since August of 2018 on Friday.

With all that good news, many probably wonder what caused net revenue to climb into the toilet like an overly curious ferret. As it turns out, saving money can be pretty expensive.  (Find Out…)

By on April 22, 2019

For roughly the last decade, we’ve heard the motoring media bemoan Millennials as the generation that snubbed driving. Their inability to find and hold jobs that paid as well as their parents’ did at the same stages of life, combined with elevated costs of living and crippling student debt load, negatively impacted their purchasing power. Still, this generation might be just the tip of an iceberg the industry’s about to careen into.

As it turns out, Generation Z might even be less interested in cars. In addition to facing similar financial constraints as their older peers, most of them aren’t even bothering to get a driver’s license.  (Find Out…)

By on April 15, 2019

With governments strongly encouraging the growth of electric vehicles and automakers repositioning various brands to align with that goal, it’s worth a manufacturer’s time to examine the market. Mini, which BMW Group intends to evolve into an EV-focused nameplate, plans to release its first battery powered vehicle in 2020. However, before that occurs, the brand decided to commission Engine International for a little market research.

The firm conducted a general population survey of 1,004 presumably average Americans — all above the age of 18 and split equally by gender. Unfortunately for BMW, the results were less than promising. Most people still don’t seem to have a handle on what EVs offer or how they function. However, that might not necessarily be because they are clueless morons. Apathy undoubtedly plays a role here, especially as EV ownership remains relatively rare.  (Find Out…)

By on April 9, 2019

Urban transportation is a slippery fish. No two cities are the same, and most need to harmonize foot, rail, bike, bus, and automobile transportation to ensure everyone can get where they’re going in a timely manner. Unfortunately, as the constantly changing recipe varies significantly between towns, some projects can hamper a city’s wellbeing.

Take New York as an example. The city’s subway system is well on its way to becoming an unmitigated disaster as more and more disgruntled residents lean on ride-hailing services as an alternative. This has increased on-road congestion, without making the Metropolitan Transportation Authority’s underground option cheaper, less crowded, or more reliable. The city has since decided to enact congestion charges for Lower Manhattan.

Other towns face similar issues, with the presiding logic frequently being little more than “let’s just cram a highway through there.” Unlike in past decades, cities are increasingly hesitant to enact such plans. An ill-placed freeway can spell disaster for local communities, just as a well-placed one can help bedroom communities thrive. Congress for the New Urbanism (CNU) recently released a list of 10 highways it would like to see demolished in order to create more walkable, connected neighborhoods under the banner of promoting “great urbanism.” (Find Out…)

By on April 8, 2019

U.S. light-vehicle dealers reported an operating loss for the first time since the National Automobile Dealers Association (NADA) began collecting data in 2009. While everyone continues reporting pretax net profits, concerns are beginning to swell around their dependency on factory incentives, which are not included in operating tabulations.

NADA’s analysis of 2019’s first-quarter auto sales shows that incentive spending is down compared to the same period a year ago. The group expects above-average discipline from automakers in terms of incentive spending throughout the year. According to J.D. Power, average incentive spending per unit was down $119 to $3,821 through March 2019 — with the brunt of that going toward trucks. However, if sales remain low, spending may creep back up to help clear out languishing inventories.  (Find Out…)

By on March 28, 2019

It used to be that, if you were a “Ford Truck Man,” that’s all you drove. In fact, this author and his friends used to frequently quote anytime someone exhibited an overabundance of brand loyalty. The borderline hysterical ad includes a scene with Keith hitchhiking through the desert, refusing rides from anything that lacks a blue oval on the grille. Hyperbolic for sure, but it kind of felt like that’s how people shopped for trucks back then.

Plenty of people still shop for a new pickups in this manner but, according to , buyers are becoming increasingly less loyal as truck prices continue to climb.  (Find Out…)

By on March 19, 2019

Ever since the Great Recession, Millennials have become the target of blame for every economic woe imaginable. They’re not saving their money, they’re not buying homes, they’re not making enough, they change jobs too frequently, they don’t know how to shop around, they’re crippled by debt, and they aren’t buying enough cars. Depending on where you get your news, they are frequently framed as economic imbeciles incapable of doing anything right.

Of course, the obvious counterpoint to those allegations involve the broader problem stagnating wages and a market established by their higher-earning forebears that they can’t seem to wrangle — but who has the time for nuance these days?

While we primarily care about the car buying angle, it’s worth mentioning that Millennials are different from their older counterparts. Still, we were surprised in how that fact manifested itself this week. Apparently, Millennials aren’t all that excited about utility vehicles. Despite SUVs and crossovers dominating the automotive landscape, younger folks are still choosing to buy cars.  (Find Out…)

By on March 11, 2019

It looks as though more parents are increasingly paying for the transportation needs of their (sometimes very old) children.

Thanks largely to abandoning the important job of parenthood, a Bank of America survey a discovered small portion of adults between age 23 and 37 are now able to put away legitimate savings. However, the prevalence of student debt, low-paying jobs, and an increased cost of living has left many to continue scrimping and saving. In fact, most Millennials under 24  had less than $1,000 in their savings accounts, with nearly half having no savings at all. The former was also true for older members of the same generation. On average, it’s presumed that Millennials are earning 20 percent less than their Boomer parents at the same stage in life — despite being better educated, overall.

That’s causing future issues for the automotive industry. When Bankrate surveyed Americans to get their financial priorities on record last month, 23 percent of respondents specified that student-loan debt directly influenced their decision to delay purchasing a new car. Considering both monthly payments are frequently set to the tune of hundreds of dollars, that would make a lot sense.  (Find Out…)

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