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Scion was slain by Toyota, not the Great Recession
Wed, Feb 3 2016Scion didn't have to go down like this. Through the magic of hindsight and hubris, it's easier to see what went wrong. And what might have been. What the industry should understand is this: Scion wasn't a losing proposition from the get-go. Its death is due to negligence and apathy. This is more than just the failure of a sub-brand. It's the failure of a company to deliver new and compelling products over an extended period of time. Toyota will point to the Great Recession as the reason it hedged its bets and withdrew funding for new vehicles, instead of using that as an opportunity to redouble efforts. This was as good as a death warrant, although myopically no one realized it at the time. Sadly, GM's Saturn experiment was a road map for this exact form of failure. No one at Toyota seemed to think the Saturn experience was worth protecting their experimental brand from. Or they weren't heard. Brands live and die on product. Somehow, Scion convinced itself that its real success metric was a youthful demographic of buyers. It seems like this was used to gauge the overall health of the brand. Look at the aging and uncompetitive tC, which Scion proudly noted had a 29-year-old average buyer. That fails to take into account its lack of curb appeal and flagging sales. Who cares if the declining number of people buying your cars are younger? Toyota is going to kill the tC thirteen years [And two indifferent generations ... - Ed.] after it was introduced. In that time, Honda has come out with three entirely new generations of the Civic. Scion wasn't a losing proposition from the get-go. Its death is due to negligence and apathy. At launch, the brand could have gone a few different ways. The xB was plucky, interesting, and useful – a tough mix of ephemeral characteristics – but the xA didn't offer much except a thin veneer of self-consciously applied attitude. That's ok; it was cute. Enter the tC, which managed to combine sporty pretensions with decent cost. It took on the Civic Coupe in the contest for coolness, and usually managed to win. More importantly, an explicit brand value early on was a desire to avoid second generations of any of its models, promising a continually evolving and fresh lineup. At this point, the road splits. Down one lane lies the Scion that could have been. After a short but reasonable product lifecycle, it would have renewed the entire lineup.
Coronavirus shakes up America's truck market: GM outselling Ford and Ram
Thu, Apr 2 2020FCA, Ford and General Motors joined the rest of the U.S. auto industry in taking heavy volume hits due to coronavirus-related shortages of both cars and customers. The saying goes that a rising tide lifts all boats; it stands to reason, then, that a falling one would have the opposite effect. However, as we learned Thursday, the automotive market can behave in unpredictable ways. While the F-Series remained the best-selling nameplate in Q1, GM's full-size trucks are now outselling Ford's again for the first time in years, and with this upward thrust from the General, FCA's Ram was unceremoniously booted out of a hard-earned second place. While late-March sales declines hit just about every major automaker in one way or another, the model-by-model results weren't nearly so uniform. And because the market tends to be a zero-sum game, for every winner, there generally has to be a loser. In this case, that winner was GM, and its rise had to come at the expense of another automaker, in this case, Ford. F-Series sales dropped 13.1 percent in the first quarter of 2020, while sales of GM's full-sized Silverado and Sierra surged nearly 28% in the same period. FCA's Ram lineup managed a steady-as-she-goes 7% increase. All-in, GM finished the quarter with 197,743 full-size trucks sold to Ford's 186,562. Here's the full breakdown: Ford F-Series: 186,562 Chevrolet Silverado*: 144,734 Ram P/U: 128,805 GMC Sierra: 53,009 *includes 1,036 Medium Duty sales Things are a but murkier in the midsize segment, where the Chevy Colorado slipped 36% to just 21,430 units sold — just a few hundred better than the slow-selling Ford Ranger's Q1 numbers. The GMC Canyon experienced an almost identical slide, finishing the quarter with just 4,483 units sold. For perspective, Jeep sold more than 15,000 Gladiators and Toyota's midsize Tacoma slipped less than 8%, finishing the quarter with nearly 54,000 sales. We suspect this discrepancy in full- and mid-size truck sales comes from shifting incentives. Ford, GM and FCA would like to keep selling bigger trucks because there's far more profit margin built into their list prices. Even with tens of thousands of dollars in manufacturer money on the hood, big trucks still make money. Since these automakers report quarterly, we won't get another good look at these numbers until July, but if you thought that 2019 represented the new normal for U.S. auto sales, well, think again.
In Jamaica, it's not easy to sell or buy hybrid cars
Wed, Jan 15 2014Jamaica's mellow reputation and Rasta vibe contributes to an international reputation of an island nation that moves at a leisurely pace. And the term "leisurely" certainly applies to the rate of sales of hybrids there. And we thought Mitsubishi i sales in the US have been slow. The country's Toyota dealership is still in the process of explaining hybrid technology to many of its prospective customers, with the widespread perception remains that a standard Toyota Prius needs to be plugged in for electrical charging, the Jamaica Gleaner reports. Because of such slow exposure, Toyota has only sold about 10 hybrids in Jamaica since the Japanese automaker started selling them there in 2010. And we thought Mitsubishi i sales in the US have been slow. Toyota dealers in Jamaica continue to tout hybrid technology that can boost fuel economy by about 30 percent but are going up against the fact that Toyota's hybrids now need to be pre-ordered and aren't kept in stock because of sluggish demand. There's also the fact that Toyota's Japanese operations insist on an approval process that ensures the hybrids sent there can handle Jamaica's road conditions, and it typically takes three to four months for a Prius to get to Jamaica once ordered. Island locales provide a curious dichotomy for advanced-powertrain vehicles. On one hand, the driving distances tend to be relatively small, lengthening the amount of time it takes to pay back the original cost premium. On the flip side, importing fuel to islands makes gas prices skyrocket and can prove costly for the economy in island nations. Late last year, for instance, the government of another Caribbean nation, Barbados, estimated it spends about $250 million a year on gas used for personal vehicles. That's why the government there is pushing for more electric-vehicle adoption, though the number of EVs on the island was in the low double-digits as of mid-2013.