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GM, Ford, Honda winners in 'Car Wars' study as industry growth continues

General Motors' plans to aggressively refresh its product lineup will pay off in the next four years with strong market share and sales, according to an influential report released Tuesday. Ford, Honda, and FCA are all poised to show similar gains as the auto industry is expected to remain healthy through the rest of the decade. The Bank of America Merrill Lynch study, called Car Wars, analyzes automakers' future product plans for the next four model years. By 2020, 88 percent of GM's sales will come from newly launched products, which puts it slightly ahead of Ford's 86-percent estimate. Honda (85 percent) and FCA (84 percent) follow. The industry average is 81 percent. Toyota checks in just below the industry average at 79 percent, with Nissan trailing at 76 percent. Car Wars' premise is: automakers that continually launch new products are in a better position to grow sales and market share, while companies that roll out lightly updated models are vulnerable to shifting consumer tastes. Though Detroit and Honda grade out well in the study, many major automakers are clumped together, which means large market-share swings are less likely in the coming years. Bank of America Merrill Lynch predicts the industry will top out with 20 million sales in 2018 and then taper off, perhaps as much as 30 percent by 2026. Not surprisingly, trucks, sport utility vehicles and crossovers will be the key battlefield in the next few years, Car Wars says. FCA will launch a critical salvo in 2018 with a new Ram 1500, followed by new generations of the Chevy Silverado and GMC Sierra in 2019, and then Ford's F-150 for 2020, according to the study. Bank of America Merrill Lynch analyst John Murphy said the GM trucks could be pulled ahead even earlier to 2018, prompting Ford to respond. "This focus on crossovers and trucks is a great thing for the industry," Murphy said. Cars Wars looks at Korean (76 percent replacement rate) and European companies more vaguely (70 percent), but argues their slower product cadence and lineups with fewer trucks puts them in weaker positions than their competitors through 2020. Related Video: This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings. Featured Gallery 2016 Chevrolet Silverado View 11 Photos Image Credit: Chevrolet Earnings/Financials Chrysler Fiat Ford GM Honda Nissan Toyota study FCA

Toyota builds its 500,000th Corolla in Mississippi

Toyota assembles the Corolla at plants around the world: from Brazil and South Africa to Turkey, Pakistan, China, Taiwan and Thailand. But the one we get here is built in Mississippi, and that location has just finished its 500,000th Corolla. The plant in Blue Springs, MS, is just one of a half-dozen assembly plants Toyota operates in the United States, but reached the half-million mark faster than any of the others. It began production late in 2011 and took over Corolla assembly from the NUMMI plant in California previously operated via joint venture with General Motors and now occupied by Tesla. Last year, the 2,000 workers at Toyota Motor Manufacturing Mississippi built 180,000 Corollas, contributing to the 10 million units of the model Toyota has sold in America since it was introduced here in 1968 and the 21 million vehicles Toyota has made in America over the years. 500,000th Corolla Speeds Off the Line at Toyota Mississippi Blue Springs plant celebrates milestone achieved at record pace BLUE SPRINGS, MISS. (Feb. 12, 2015) – Toyota Mississippi is celebrating the 500,000th Corolla coming off the line at the Blue Springs, Miss., production facility. The production accomplishment was achieved faster than any other Toyota plant in the U.S. – a testament to the 2,000 hardworking team members who have answered increasing consumer demand since the plant opened in 2011. "The 500,000th Corolla vehicle is a milestone we're excited to be celebrating," said Fred Volf, Toyota Mississippi, vice president of manufacturing. "We are proud to produce the Corolla, and it wouldn't have been accomplished without the 2,000 dedicated team members who support this operation." The milestone is one more to add to the long list of achievements for Toyota Mississippi and the Corolla. Toyota has sold more than 10 million Corollas in the U.S. and 40 million worldwide since the vehicle debuted here in 1968. The success of Corolla contributes to Toyota's accomplished domestic manufacturing footprint and represents Toyota's commitment to producing vehicles where they are sold. Since 1986, more than 21 million Toyota vehicles have rolled off the line in the U.S. and including dealers and suppliers, Toyota has generated 365,000 U.S. jobs. Toyota's local presence is felt by those in Northeast Mississippi through substantial economic investment, employment, philanthropic efforts and environmental responsibility.

China's largest dealer body pushes back against foreign automakers over huge inventories

Do not think for a second that automakers forcing inventory on dealers in order to pad the numbers is a ruse known only in the US. Stories of individual brands have hinted at the trouble Chinese dealerships are having trying to move units as the country's economic growth remains hot but comes off the boil, like the one revealing that 95 percent of Toyota-FAW showrooms are losing money. Yet Toyota isn't the only culprit, and the issue has become so dire that the China Automobile Dealers Association (CADA), the largest dealer body in the country, has written to the government to complain. Chinese car sales are expected to close out the year with an annualized growth of six-percent, down from last year's 14 percent when targets were set, while in the background the pace of overall economic expansion is the slowest its been since the early nineties. Automakers, shipping cars on schedule to make their earlier targets, have blown up inventories such that they are an average of 1.8 times monthly sales, when the preferred multiplier is from 0.9 to 1.2. According to the CADA, the price wars and necessary incentives mean that only 30 percent of dealers are operating in the black. That number is down a whopping forty percent since 2010. In response, Toyota has already said it will not make its 2014 target of 1.1 million cars sold. We're a long way from 2012, when Toyota planned on selling 1.8 million cars in China in 2015, a target that's now as realistic as a manticore. BMW, Honda and Nissan have erased numbers on their spreadsheets, too; BMW growth dropped from 20 percent to 8 percent midyear after it began "reducing wholesale supplies," and Honda has been reworking its plans as sales have decreased each of the past six months. It's a big deal for Chinese dealers to begin protesting publicly, the CADA saying, "In the past, dealers were angry, but dared not speak out. But now, they have to shout because the situation is getting so unbearable." With six-percent growth forecast for next year and dealers unwilling to remain underwater, The Year of the Sheep coming in 2015 could portend meaning beyond the zodiac. News Source: ReutersImage Credit: AP Photo/Andy Wong BMW Honda Nissan Toyota Car Buying Car Dealers