Table of Contents
Scope and Themes
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- What you need to know
- Definition
- Data sources
- Sales data
- Consumer survey data
- Advertising creative
- Abbreviations and terms
- Abbreviations
- Terms
Executive Summary
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- Total unit sales of new cars and light trucks increase 10%
- Recovery propelled by 25.3% increase in crossover vehicle sales
- More respondents planning to buy in next year
- Depending on demographics, consumers plan to buy small cars or crossovers
- Consumers react to rising gas prices
- Automakers look to attract buyers trading down in size
- Vehicle buyers focused on cost and value
- More affluent households depend more on research
- Young consumers look for dealerships, attracted to in-car technologies
- Higher earners purchase options for comfort and entertainment
- Tragic earthquake in Japan disrupts production, leads to fewer incentives
- General Motors leads in sales
- Ford avoids bankruptcy spotlight and prospers
- Chrysler fastest-growing U.S. automaker
- Toyota hurt by vehicle recall and earthquake
- Hyundai-Kia fastest-growing automaker
Insights and Opportunities
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- Targeting car owners for a zero-cost trade-in
- Dealerships use clinics to educate and connect with consumers
- Letting consumers test drive the competition
Inspire Insights
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- Inspire Trend: Access All Areas
Market Size and Trends
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- Key points
- New car and light truck sales increase more than 10% from year prior
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- Figure 1: U.S. unit sales of new cars and light trucks, 2005-11
- Total sales of new cars and light trucks more than $175 million
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- Figure 2: U.S. dollar sales of new cars and light trucks, at current prices, 2005-10
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- Figure 3: U.S. dollar sales of new cars and light trucks, at inflation adjusted prices, 2005-10
Market Drivers
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- Key points
- Gas prices again top $4/gallon, impacting consumer-buying decisions
- Automakers respond with record number of 40 mpg-capable vehicles
- Automakers restyle small cars to fit more sophisticated consumer needs
- Domestic automakers lead small car surge
- Higher prices result from lower incentives and strained inventory
- Price increases in used-car market create demand for new cars
- Nissan LEAF first mass-produced electric vehicle
- Hybrid electric vehicles provide consumers with gasoline safety-net
- Electric vehicles potentially overhyped, according to J.D. Power & Associates
- Tragic earthquake in Japan disrupts production
Segment Overview
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- Key points
- Crossover vehicles propel recovery, reach nearly 3 million units sold
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- Figure 4: U.S. unit sales of new cars and light trucks, by segment, 2010 and 2011
- Crossovers supplant SUVs as top light-truck segment
- Pickup sales rebound as manufacturers return focus to business users
- Van sales rebound as brands manage to recast minivan as cool
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- Figure 5: U.S. unit sales of light trucks, segmented by type, 2005-11
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- Figure 6: Index of U.S. unit sales of light trucks, segmented by type, 2005-11
- Figure 7: Change in U.S. unit sales of light trucks, segmented by type, 2005-11
- Car sales lag as older model cars don’t excite consumers
- Mid-size cars account for nearly half of all cars sold
- Luxury fastest-growing car segment, though consumers choose less expensive models
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- Figure 8: U.S. unit sales of cars, segmented by type, 2005-11
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- Figure 9: Index of U.S. unit sales of cars, segmented by type, 2005-11
- Figure 10: Change in U.S. unit sales of cars, segmented by type, 2005-11
Domestic Brand Performance—General Motors
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- Key points
- Strong crossover sales help GM maintain top position
- GM small-car sales down over past year yet show recent improvement
- 200,000 mid-size Chevy Malibu’s sold can’t offset loss of Pontiac models
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- Figure 11: General Motors Company new car and light truck unit sales, by segment, 2010-11
Domestic Brand Performance—Ford
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- Key points
- Ford increases small-car sales 20% by emphasizing luxury-like amenities
- Ford’s crossover vehicles replace out-of-favor SUVs
- Led by the F-Series, pickups remain Ford’s top-selling segment
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- Figure 12: Ford Motor Company new car and light truck unit sales, by segment, 2010-11
Domestic Brand Performance—Chrysler Group
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- Key points
- Chrysler fastest-growing U.S. automaker as crossover sales increase 85.6%
- Chrysler repositions Dodge as performance brand featuring larger sedans
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- Figure 13: Chrysler Group new car and light truck unit sales, by segment, 2010-11
Import Brand Performance—Toyota
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- Key points
- Vehicle recall slows Toyota’s growth considerably
- SUV sales rise yet account for small overall portion of sales
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- Figure 14: Toyota new car and light truck unit sales, by segment, 2010-11
Import Brand Performance—Honda
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- Key points
- Honda sales rise based on success of best-selling CR-V crossover
- Honda small-car sales sustained by out-dated Civic
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- Figure 15: American Honda new car and light truck unit sales, by segment, 2010-11
Import Brand Performance—Nissan
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- Key points
- Nissan innovates with launch of mini-crossover and all-electric vehicle
- The Nissan LEAF marks industry’s first mass marketed all-electric vehicle
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- Figure 16: Nissan North America new car and light truck unit sales, by segment, 2010-11
Import Brand Performance—Hyundai-Kia
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- Key points
- Affordability, fuel efficiency make Hyundai-Kia fastest-growing automaker
- Small cars account for nearly half of Hyundai-Kia’s sales
- Hyundai-Kia crossover sales increase nearly 40% as new model impresses consumers
- Mid-size vehicle sales increase nearly 50% as best-selling Sonata passes 200,000 units
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- Figure 17: Hyundai-Kia Automotive new car and light truck unit sales, by segment, 2010-11
Other Brands—Performance
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- Key points
- Overview
- Volkswagen
- BMW Group
- Subaru
- Volvo
- Jaguar Land Rover
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- Figure 18: Other brand total new car and light truck unit sales, 2010-11
Innovations and Innovators
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- Rinspeed internet car reads emails and Facebook updates aloud to driver
- Software developer Recargo launches app that finds EV-chargers
- Ford partners with Google to create next generation of smart car
Marketing Strategies
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- Brand focus
- Hyundai responds to issues that consumers care about most
- Strategic marketing initiatives
- Looking out for the social good
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- Figure 19: BMW—Keeping Kids Safe, TV ad, 2011
- Getting a timely message out quickly
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- Figure 20: Nissan—Eight Models Over 30mpg, TV ad, 2011
- Portraying the real car owner to connect with viewers
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- Figure 21: Ford —Real Ford Owner, TV ad, 2011
- Emphasizing third-party accolades
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- Figure 22: Lexus, TV ad, 2011
New Cars—Current Household Ownership
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- Key points
- One-fifth of respondents purchased vehicles in the last 24 months
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- Figure 23: Bought or leased a new car in last 24 months, and planning to buy or lease a new car in next 12 months, April 2011
New Car Type Purchased/Planning to Purchase
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- Key points
- Mid-size sedans most popular among respondents
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- Figure 24: Type of new vehicle bought/leased in past 2 years, or planning to buy/lease in next year, by gender, April 2011
- Older respondents favor crossovers
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- Figure 25: Type of new vehicle bought/leased in past 2 years, or planning to buy/lease in next year, by two age groups, April 2011
- Less affluent plan to buy small cars, high wage earners plan for crossovers
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- Figure 26: Type of new vehicle bought/leased in past 2 years, or planning to buy/lease in next year, by four household income groups, April 2011
Reasons to Purchase New Car
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- Key points
- Respondents influenced by incentives related to cost
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- Figure 27: Factors influencing purchase/lease of vehicle in past 24 months, by gender, April 2011
- Young respondents buying for first time, looking for dealership to trust
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- Figure 28: Factors influencing purchase/lease of vehicle in past 24 months, by two age groups, April 2011
- Less affluent influenced by low financing, but don’t always qualify
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- Figure 29: Factors influencing purchase/lease of vehicle in past 24 months, by four household income groups, April 2011
Ways to Research New Cars
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- Key points
- Respondents influenced by third-party reviews
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- Figure 30: Research informing decision to purchase/lease last vehicle, by gender, April 2011
- Social media influences young respondents’ purchasing behavior
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- Figure 31: Research informing decision to purchase/lease last vehicle, by two age groups, April 2011
- With more options, more affluent households depend more on research
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- Figure 32: Research informing decision to purchase/lease last vehicle by, two household income groups, April 2011
Attitudes Toward Rising Gas Prices
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- Key points
- Nearly half of respondents would only buy fuel-efficient vehicle
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- Figure 33: Expected impact of rising gas prices on future car buying, by gender, April 2011
- Older consumers less likely to change behavior because of gas prices
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- Figure 34: Expected impact of rising gas prices on future car buying, by two age groups, April 2011
- High gas prices are a larger issue among least affluent respondents
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- Figure 35: Expected impact of rising gas prices on future car buying, by four household income groups, April 2011
Factors and Features Influencing New Car Purchase
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- Key points
- Price, comfort, and performance most influential when buying cars
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- Figure 36: Vehicle related factors that influenced last new vehicle purchase/lease, by gender, April 2011
- Price, exterior design, and loyalty become more of a consideration with age
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- Figure 37: Vehicle related factors that influenced last new vehicle purchase/lease, by two age groups, April 2011
- Households earning $50K+ influenced by design, safety, performance
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- Figure 38: Vehicle related factors that influenced last new vehicle purchase/lease, by two household income groups, April 2011
New Car Options Purchased
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- Key points
- Security systems most popular amenity
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- Figure 39: Options bought with last new vehicle purchase/lease, by gender, April 2011
- Respondents over 35 most interested in entertainment
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- Figure 40: Options bought with last new vehicle purchase/lease, by two age groups, April 2011
- Higher earners purchase options for comfort and entertainment
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- Figure 41: Options bought with last new vehicle purchase/lease, by four household income groups, April 2011
Impact of Race and Hispanic Origin
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- Key points
- Hispanic respondents more likely to buy pickups
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- Figure 42: Type of new vehicle bought/leased in past 2 years, or planning to buy/lease in next year, by race/Hispanic origin, April 2011
- Hispanic respondents more likely to buy fuel-efficient vehicles
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- Figure 43: Expected impact of rising gas prices on future car buying, by race/Hispanic origin, April 2011
Cluster Analysis
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- Option Opulent
- Demographics
- Characteristics
- Opportunity
- Price and Economy Driven
- Demographics
- Characteristics
- Opportunity
- Uninfluenced and Underequipped
- Demographics
- Characteristics
- Opportunity
- Clusters characteristic tables
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- Figure 44: New car clusters, May 2011
- Figure 45: Factors influencing purchase/lease of vehicle in past 24 months, by new car clusters, April 2011
- Figure 46: Research informing decision to purchase/lease last vehicle, by new car clusters, April 2011
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- Figure 47: Vehicle related factors that influenced last new vehicle purchase/lease, by new car clusters, April 2011
- Figure 48: Options bought with last new vehicle purchase/lease, by new car clusters, April 2011
- Cluster demographic tables
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- Figure 49: New car clusters, by gender, May 2011
- Figure 50: New car clusters, by age, May 2011
- Figure 51: New car clusters, by household income, May 2011
- Figure 52: New car clusters, by race, May 2011
- Figure 53: New car clusters, by Hispanic origin, May 2011
- Cluster methodology
Appendix: Trade Associations
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