Table of Contents
Scope and Themes
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- What you need to know
- Definition
- Data sources
- Consumer survey data
- Advertising creative
- Abbreviations and terms
- Abbreviations
- Terms
Executive Summary
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- Domestic new car unit sales losing ground to imports
- Federal regulations, programs forcing U.S. automakers to change
- Cash for Clunkers
- Climate change legislation
- Push for electric vehicles
- After gradual declines, dealership revenues plummet starting in 2008
- U.S. dealership units in continual freefall over the past 21 years
- Advertising budgets suffering from federal regulation, declining sales
Insights and Opportunities
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- Turning green messages into personal advocacy can speak to recession
- Target gay, lesbian car buyers who are proven to be brand-agnostic
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- Figure 1: Top 10 dealer locator brand searches, gaywheels.com, January-April 2009
- Create incentives that speak to specific realities of the current recession
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- Figure 2: Consumer attitudes regarding new car retailers and incentives, by gender, February 2009
Federal Regulatory Measures: How They will Shape Selling Cars into the Future
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- Overview
- Cash for Clunkers
- What it means
- Climate change bill to double federal loans for plug-in electrics
- What it means for electrics and hybrids
- New proposals to address tire fuel efficiency
- What it means
Market Size
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- Key points
- Domestic new car unit sales losing ground to imports
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- Figure 3: Total U.S. unit car sales, by domestic and import, 2003-08
- Figure 4: Total U.S. car unit sales, 2003-08
Imports Versus Domestics
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- Key points
- Import production volume to increase while domestic slowing by 2012
- By mid-2009, domestics losing market share to foreign automakers
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- Figure 5: U.S. unit sales of light vehicles, January-June 2008 and 2009
Domestics—General Motors Corporation
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- Key points
- Overview
- Dealing with an image problem
- Renewed focus on hybrids, electrics
- North American GM sales fell 23% in 2008
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- Figure 6: GM total North America automotive sales revenue, 2006-08
- Figure 7: GM North America vehicle unit sales, by car and truck, 2006-08
Domestics—Chrysler LLC
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- Key points
- Overview
- Sales down 46% in Q1 2009
- Incentives include employee pricing, 0% financing
- New vehicles stunted for 2009, but new model launches for late 2010
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- Figure 8: Chrysler U.S. vehicle unit sales, 2005-08
Domestics—Ford Motor Company
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- Key points
- Overview
- Mounting debt forcing company to pursue more innovative vehicles
- Ford dealerships launch campaigns to rectify consumer perception
- Ford revenues drop nearly 24% in 2008 from previous year
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- Figure 9: Ford total North America automotive sales revenue, 2006-08
- Figure 10: Ford U.S. vehicle unit sales, 2005-08
American Pride: Patriotism in a Recession
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- Key points
- Who are consumers with American Pride?
- American Pride is reflected the most by large trucks, SUVs, not compacts
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- Figure 11: Vehicle ownership, by American Pride, February 2009
- American Pride respondents more influenced by personal recommenders
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- Figure 12: Research preference, by American Pride, February 2009
- Economy fears translate mainly to sticker price, less to fuel economy
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- Figure 13: Vehicle feature preference, by American Pride, February 2009
Imports
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- Key points
- Import unit sales rising while domestic sales on the decline
- U.S. luxury market threatened by small, crossover imports
- Toyota Motor Co.
- A leader in hybrid technology, design
- Toyota’s unit car sales in U.S. increased 5.3% in 2008 from four years prior
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- Figure 14: Toyota Motor Sales U.S.A.’s U.S. vehicle unit sales, 2005-08
- Honda Motor Co.
- Competing against Toyota’s Prius with the Insight
- Honda’s unit car sales in U.S. increased 4.7% in 2008 from four years prior
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- Figure 15: Honda’s U.S. vehicle unit sales, 2005-08
- Nissan Motor Co.
- Nissan planning to mass-market electric cars
- New Cube marketed to young drivers
- Unit car sales in U.S. increased 3.7% in 2008 from four years prior
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- Figure 16: Nissan North America’s U.S. vehicle unit sales, 2005-08
- Hyundai Motor Co.
- A push for hybrids, electrics
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- Figure 17: Hyundai U.S. vehicle unit sales, 2005-08
Retail Distribution
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- Key points
- After gradual declines, dealership revenues plummet starting in 2008
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- Figure 18: Total sales at new car dealerships, at current prices, 2003-09
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- Figure 19: Total sales at new car dealership, at inflation-adjusted prices, 2003-09
- U.S. dealership units in continual freefall over the past 21 years
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- Figure 20: U.S. new car dealerships, 1987-2008
- New vehicle sales dominate, but losing slight market share to used
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- Figure 21: U.S. sales at new car dealerships, by segment, 2005 and 2007
- Where consumers are buying cars now
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- Figure 22: Source of last new vehicle purchased, by gender, February 2009
- Younger consumers more open to non-traditional channels
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- Figure 23: Source of last new vehicle purchased, by age, February 2009
- Highest household incomes prefer brand dealerships
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- Figure 24: Source of last new vehicle purchased, by household income, February 2009
- Exclusive brand dealerships rated highest among all groups
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- Figure 25: New vehicle retail preference, by race/Hispanic origin, February 2009
Dead Automotive Brands: Where Are They Now?
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- Overview
- Hummer
- Pontiac
- Porsche
- Saab
- Saturn
Innovations and Innovators
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- Parts suppliers rate domestics far behind imports in product innovation
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- Figure 26: Automotive parts supplier ranking of automaker innovations, 2009
- Kia finds opportunity in chaotic Saturn closings to widen brand’s territories
- Hyundai uses bartering to its advantage to avoid losses from liquidation
- Toyota combines television product placement, text message interaction
- Ford creates program to help consumers navigate CARS program
- Online research site targets women car buyers through tailored features
- Dealership website launched to help stem consumer financing fears
Advertising and Promotion
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- Advertising budgets suffering from federal regulation, declining sales
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- Figure 27: Automaker and auto dealership adspend on U.S. media, 2003-08
- GM, Chrysler scale back adspend considerably due to bankruptcies, debt
- Digital media investment stable, source of creative marketing endeavors
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- Figure 28: Online advertising by the U.S. automotive industry, 2007-12
- GM, Chrysler forced to tone down advertising to address bankruptcies
Mintel Asks the Experts: How to Sell Cars Now
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- Overview
- Where do automakers start to address the crisis that is slamming their industry?
- How does this affect General Motors and Chrysler in particular?
- Is the difficulty these companies are having limited to domestics and not foreign makers?
- Can foreign car companies play on the difficulties that domestics are having?
- What messages will resonate with consumers during this downturn?
- How much is consumer fear a factor in the buying process right now?
- Is time a factor here? Are automakers moving too slowly to change?
Mintel Asks the Experts: What Women Car Buyers Want
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- Overview
- What are women looking for when they are interested in buying a new car?
- How are dealerships missing the boat then in creating that confidence and trust?
- Besides the sales approach, do they need to address how their dealerships are designed?
- What amenities are lacking at dealerships but would impress women buyers?
Mintel Asks the Experts: How Future Cars Will Connect
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- Overview
- What factors go into shaping new vehicles for the future?
- How can congestion be addressed by new vehicle technology?
- What would it take in the infrastructure of making cars for this to take place?
- How can advertisers participate in this technology?
- For this to take hold, do partnerships need to take place between automakers?
- What segment of the driving population would be a good place to start?
- Micros like the GM’s PUMA are often used for commercial fleets. What are their advantages?
- What will it take for these vehicles to gain momentum here?
Appendix: Trade Associations
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