Blue Book Briefing
September 2009 - Blue Book Briefing
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In this issue – SEPTEMBER 2009:
· NEW-VEHICLE MARKET ANALYSIS – Timely commentary from Jack R. Nerad, executive editorial director and executive market analyst for Kelley Blue Book’s kbb.com: CLUNKER-MANIA, THE FINAL CHAPTER
· LATEST NEWS & BLOGS ON KBB® GREEN – The latest news and blogs posted to KBB Green from the editorial staff of Kelley Blue Book’s kbb.com
· LATEST NEWS STORIES ON KBB.COM – The latest video and written news stories by the editorial staff of Kelley Blue Book’s kbb.com
· NEW-VEHICLE REVIEWS ON KBB.COM – All-new and updated video and written reviews from the editorial staff of Kelley Blue Book’s kbb.com
· Kbb.com Names 2009 Top 10 Back-to-School Cars
· Kia, Hyundai, Jeep Show Increased Share of Market Interest as Honda, Saturn, BMW Decline
· Kbb.com Study: Domestic Trucks Remain Cornerstone of Strength; Import Truck Consideration Declines
· Kbb.com Eclipses Two Single-Day Traffic Records, Reports Greatest Month Ever
· Kbb.com Names 10 Most Fun Clunker Replacements
· Cash for Clunkers to Cause Used-Car-Value Bubble
Clunker-Mania, the Final Chapter
- Jack R. Nerad, executive editorial director & executive market analyst, Kelley Blue Book’s kbb.com
Even before the government’s CARS 2009 (“Cash for Clunkers”) program came to an end, the spin doctors were trying to put the stamp of their point-of-view on the program. Now that Cash for Clunkers has run its course, those with various agendas will continue to try to characterize the program in a particular way. “An unqualified success,” say its backers. “Another instance of government ineptitude,” say its detractors. “A clear win for the environment,” sing its backers. “An expensive boondoggle that won’t help the environment at all,” retort its detractors.
Well, no matter what side of the political fence you sit on, one thing is abundantly clear – the CARS 2009 program did, indeed, stimulate the sales of new, more fuel-efficient vehicles. When all is said and done, the CARS program will have provided the impetus for more than half a million new-vehicle sales at a time when the auto industry, from manufacturing to retail, was at a historically low ebb. One can certainly debate if the renewed new-car sales were worth the $3 billion in government spending that it took to generate them, but one thing that is abundantly clear in the aftermath of the program is that if you put big-time cash into the market (and where I come from $3 billion is big-time cash), you can move the market. As we have seen with auto manufacturer cash-back offers, dollars and a deadline motivate buying behavior. In this case, because of the structure of the program, it very quickly changed the model-mix dynamic of the nation’s auto market. Small, highly fuel-efficient vehicles immediately got much more popular, and vehicles that didn’t have those attributes fell by the wayside.
When you look a little deeper at the program, it is not hard to understand why. Though small cars frequently are incentivized, an incentive of $4,500 on a vehicle that might retail for $18,000 is absolutely unprecedented. Yes, there were some strings – you had to own a qualifying “clunker” – but this was indeed “the chance of a lifetime.” Americans are pretty quick to recognize a good deal when they see it, and nearly 700,000 eager buyers took advantage of the government’s largesse.
Some will claim that the CARS 2009 program didn’t really create new-vehicle sales; it simply pulled forward many new-car sales that would have happened eventually anyway. While it is certain the program did pull some sales forward, it also succeeded in creating a substantial number of incremental new-vehicle sales, because it is more than likely that, in the absence of the CARS program, many of the ‘clunkers’ would otherwise have been replaced by a newer used vehicle…if they were replaced at all. Again, one can debate the wisdom of leaving out used cars and used-car retailers, but if the goal was to create new-car sales, the goal was realized.
Perhaps the most under-reported aspect of the program was that it made it okay to buy a new vehicle again. Very often in an economic downturn consumers become reticent about buying a flashy, big-ticket item like a new car simply in response to the tenor of the times. The CARS 2009 program removed that stigma immediately and replaced it with a gold rush mentality – “I’ve got to get mine before the money runs out” – which motivated immediate sales.
We’re sure the debate on Cash for Clunkers will continue, but to the extent it got American consumers in a car-buying mood again, it was a significant success. But, there is one question yet to be answered in the coming weeks: Will consumers sit on their wallets again until another CARS-like program comes along?
LATEST NEWS & BLOGS ON KBB GREEN:
Check out the very latest news and blog entries by visiting www.kbb.com/green and clicking on News & Blogs.
The following latest news & blogs by kbb.com’s editorial staff went live on the site or were updated during August 2009.
· Battery and Auto Firms get $2.4 Billion for New EV/Hybrid Programs
· BMW Confirms Status of New Megacity Vehicle and Inks Battery Deal
· BMW Promises "Sustainable" Sports Car Concept for Frankfurt Show
· EcoDrivingUSA Gains Support From Governors of 10 More States
· Ford Sees Common Battery Design as Key to Future EV Success
· GM's Next Six-Speed Autoshifter Promises Five-Percent Better MPG
· Illmor Engineering Creates Experimental Five-Stroke Engine
· Kumho's Futuristic Fortis is an SUV with an EV Twist
· Mercedes Will Build EV Version of SLS AMG Gullwing Coupe
· New Buick Crossover Will Get GM’s Plug-In Technology
· New smart fortwo Electric Drive Heading to Production and the U.S.
· Plug-in 2009: Meaningful Change Will Require Maximum Cooperation
· Trabant EV Concept to Debut at Frankfurt Motor Show
· Volt Mileage Claim Generates High-Voltage Buzz
· Volvo Will Show New C30 EV Concept
LATEST NEWS STORIES ON KBB.COM:
Check out the very latest news stories by visiting www.kbb.com and scrolling down to the Latest News & Articles link on the home page.
The following latest news stories by kbb.com’s editorial staff went live on the site or were updated during August 2009.
· Bark Buckle UP Top 10 Pet-Safe Vehicles Latest News Video
· Mercedes-Benz PRE-SAFE Brake System Feature Video
· Suzuki Kizashi Feature Video
· Suzuki SX4 Sportback Feature Video
· 10 Most Fun Clunker Replacements
· 1965 Cobra Daytona Coupe Brings Record Price at Auction
· 2010 Mercury Milan Hybrid: Like the Hybrid, Dislike the Technology
· Audi A4 Sedan Returns for 2010 with More Performance, Lower Pricing
· Cash for Clunkers Ends Monday
· Cash for Clunkers Status Update
· First Drive: All-electric Nissan LEAF Prototype
· First Look: 2010 Bentley Mulsanne
· First Look: 2010 Ferrari 458 Italia
· First Look: 2011 Mercedes-Benz E350 4MATIC Wagon
· First Look: 2010 Nissan Sentra
· First Look: 2010 Porsche 911 GT3 RS
· First (Virtual) Look: 2011 Infiniti M
· Ford Plans to Revamp up to 90 Percent of its Lineup by 2012
· GM Kills Plug-in Buick Crossover
· GM Plays Show and Tell With its Future Product Lineups
· Honda Hopes to Turn Formula Ford into Formula Fit
· Hyundai Confirms New Flagship Sedan Heading to the U.S. in 2011
· Hyundai Teases Next-Gen Tucson Prior to Frankfurt Debut
· IIHS Bashes Bumpers on Midsize Sedans
· Kia Confirms 2011 Sorento Will be its First Georgia-Built Product
· Kia’s Soul Collective Tour to Feature Music, Arts and Test Drives
· Long-term Infiniti EX35: Staying Between the Lines
· National Stop on Red Week Decries the Perils of Red-Light Running
· Quick Drive: 2010 Ford F-150 SVT Raptor
· Quick Drive: 2010 Subaru Outback
· Recent Drive: 2010 Ford Transit Connect
· Will Lasers Make Spark Plugs Obsolete?
· Volvo Celebrates 50th Anniversary of the Three-Point Seatbelt
NEW-VEHICLE REVIEWS ON KBB.COM - VIDEO:
The following new-vehicle video reviews by kbb.com’s editorial staff went live on the site or were updated during August 2009. To see any new-vehicle review from kbb.com’s editorial staff, please visit www.kbb.com and click on the News and Reviews tab, then select the make and model.
· Ford Fusion Hybrid Video Review
NEW-VEHICLE REVIEWS ON KBB.COM - WRITTEN:
The following new-vehicle reviews written by kbb.com’s editorial staff went live on the site or were updated during August 2009. To see any new-vehicle review from kbb.com’s editorial staff, please visit www.kbb.com and click on the News and Reviews tab, then select the make and model.
Looking for a premium-branded sedan with a $30,000 starting price and fuel economy that reaches into the 30 miles-per-gallon range? Congratulations, you've found it. While its Acura TL big brother competes with heavy hitters like the BMW 3 Series and Infiniti G Sedan, the second-generation Acura TSX is light on direct competitors. The Volvo S40 is one, as are the Audi A4 and Lexus IS. The TSX's big advantage versus most of its competitors can be summed up in a word that a premium-brand marketer like Acura would never use: Value. A fully-loaded, tech-laden 2010 Acura TSX with the four-cylinder engine tops out at just over $33,000, while opting for the V6 under the hood brings the price to just shy of $40,000. Combined with an EPA rating of up to 30 mpg on the highway, the Acura TSX may be the best premium bargain going…
The 2010 Cadillac DTS (formerly known as the DeVille) continues with relatively few changes. Designed to appease traditional Cadillac buyers who may be turned off by the company's newer products, the DTS maintains a firm foothold in the soft-riding, moderate-handling category. With its long hood, six-passenger seating and huge trunk, the DTS is equally as capable of accommodating a foursome's trip to the golf course as it is a family's weekend retreat. Although priced well into Lexus territory, Cadillac feels the long list of electronic goodies on the DTS, coupled with its famed Northstar V8 engine, should be sufficient to keep brand-loyal customers from jumping ship. Yet, as aging baby-boomers look for more comfortable means of transport, the DTS just may win over an entirely new generation…
Although the lucrative SUV business is still in danger of a sales downturn, GM is keenly aware many Americans have an inescapable need for seven-passenger transportation. With this in mind, GM has created a new line of crossover SUVs offering maximum interior space, mid-level towing ability and fuel economy numbers that reach into the mid twenties. The latest iteration of this well-conceived platform is the 2010 Chevrolet Traverse, a vehicle that combines contemporary styling, one of the best accident avoidance system in the business and an interior worthy of a high-end luxury car – all at a Chevrolet price…
Ford spent the last two years overhauling the Escape in an attempt to make it more competitive with its much newer rivals. The transformation started in 2008 when Ford gave its popular compact SUV a cosmetic makeover, with a new interior and exterior design, and improved sound insulation and seat comfort. Then, in 2009, Ford completed the two-year renewal process with a major overhaul of the Escape's engine, transmission, suspension and brakes – changes that also applied to the Escape Hybrid (reviewed separately). With over a million units sold, the Escape has proven itself to be an appealing vehicle, yet with the current economic downturn and increasingly tough competition, maintaining its strong sales presence is now the 2010 Escape's number one job…
While the bigger, heavier 2010 Ford Escape Hybrid doesn't deliver all the fuel economy of smaller hybrids like the Toyota Prius and Honda Civic Hybrid, it does offer greater utility and capability, especially when outfitted with four-wheel drive. Choosing the Escape Hybrid over a gas-only model will likely cost you more money up front than you'll end up saving at the pump, but you can still feel good about using less gas and spewing fewer pollutants than otherwise-efficient SUVs like the Honda CR-V and Toyota RAV4…
Although Ford's Expedition (and other large, truck-based SUVs) may be in market decline, there remains a need for vehicles with their capabilities. In the 2010 Expedition and extended length Expedition EL, Ford hopes to meet or exceed that need. Against rivals from Chevrolet, Nissan, Toyota and GMC, the Expedition stacks up well, offering innovative features like a power flush-folding third-row seat, the SYNC audio system and an external keypad locking/unlocking feature. With the industry still in recovery mode, those willing to take a risk may find now is the best time to make a great deal…
Despite the recent downturn in SUV sales, a somewhat aging platform and less-than-stellar fuel economy, the 2010 Ford Explorer continues to populate Ford showrooms. Powerful owner loyalty, a reasonable size and the option of a potent V8 engine all contribute to the Explorer's appeal, and it makes a great choice for families looking to get away from a full-sized SUV, as well as for those who need the ground clearance and towing ability only a body-on-frame SUV can provide. Although the Explorer has plenty of newer competition, both domestic and foreign, few offer the combination of an attractive price, three-row seating, a powerful V8 engine and the Explorer's 7,300-pound tow rating…
2010 Ford Mustang Shelby GT500
Alpha stallion in the factory Mustang corral, the Shelby GT500 takes its name and performance influences from racing legend Carroll Shelby but brings a full measure of design and engineering development magic from Ford's SVT (Special Vehicle Team) operations. As before, it couples unique styling with performance and handling that take it well beyond the Mustang GT, whether in coupe or convertible configuration. In 2010 guise, the Shelby's supercharged V8 boasts a heady 540 horses – 225 more than the GT's naturally-aspirated alternative. Despite that bountiful power and formidable dynamic capabilities that make it a natural adversary of vehicles like the Chevrolet Camaro SS and Dodger Challenger SRT8, this fearsome Ford also packs a magnum load of comfort and convenience touches that allow it to serve equally well as a daily driver…
Lexus was one of the first brands to recognize the image-enhancing value of hybrid technology. Sure, its customers want big comfortable luxury cars, but they also want to drive with a clean conscience and perhaps display their concern for the environment. For 2010 Lexus introduces the HS 250h, a hybrid that offers the luxury, technology and comfort expected of the brand but in an efficient and distinctly-styled package. The HS 250h is an entry-level luxury vehicle that slots between the Lexus IS and ES in size and price, although its status as a purely hybrid vehicle means its appeal should extend to a wide variety of buyers…
When Lincoln launched its original Navigator, it was America's first full-size luxury SUV. GM soon followed with the Cadillac Escalade, and has followed with much-improved second- and third-generation versions. As expected, the battle was resumed a few years later with the launch of the significantly improved Navigator and long-bodied Navigator L in 2007. Although this long-time rivalry still simmers, a number of new players have joined the game, including the Infiniti QX56, Mercedes GL 450 and Lexus LX 570. Though luxury SUV sales may be off, the Navigator still has much to offer those who need room for eight and/or a desire to tow heavy loads. And the Navigator still has some clear advantages over the Escalade, namely the function and operation of its second- and third-row seats. Both rows fold flat into the floor, and the PowerFold feature flattens the back row at the touch of a button…
The 2010 Subaru Outback is the perfect anti-SUV. No larger than most mid-size cars, the all-wheel-drive Outback has become one of the best selling wagons in America; it is also a favorite of those needing the off-road capabilities of a large SUV, but not the accompanying lofty fuel bills and hard-to-park mass. New from the ground up, the fifth-generation Outback remains true to the original concept yet achieves major improvements in the areas of interior room, fuel economy and flexibility. As with all Subarus, the Outback comes standard with Symmetrical All-Wheel Drive, a proven system that allows this rugged wagon to conquer the toughest terrain and deepest snow…
Shoppers Reveal Which Auto Manufacturers’ CARS-Specific Incentives Most Impacted Brand Consideration
IRVINE, Calif., August 26, 2009 – According to the latest Kelley Blue Book www.kbb.com Market Intelligence Study, the CARS 2009 program, commonly referred to as Cash for Clunkers, was successful in changing in-market car shoppers’ consideration set from ‘used’ to ‘new’ vehicles. From the program’s official inception in July to late August when Cash for Clunkers ended, a significant percentage of in-market car shoppers said they previously considered buying a used vehicle, but now considered buying new (from 12 percent in July to 20 percent in August).
In addition, the latest kbb.com survey showed that the Cash for Clunkers program positively impacted dealership foot traffic. In the August survey, 59 percent of respondents said they were likely to visit a dealership participating in the Cash for Clunkers program, and 60 percent of those consumers said they will go to their local dealer specifically to see what bargains are available.
Of the auto manufacturers who offered CARS 2009-specific incentives in addition to the government rebate, Toyota and Ford proved to be the most successful at increasing brand consideration, according to the Kelley Blue Book study. Fifty percent of survey respondents indicated they were more likely to consider Toyota due to its Cash for Clunkers incentives, and 47 percent increased brand consideration for Ford. In addition, 44 percent said they were more likely to consider Nissan, and 40 percent said they increased brand consideration for Chevrolet.
Throughout the Cash for Clunkers program, in-market shoppers increasingly felt the government-sponsored incentive was both successful and helpful to the auto industry. In July only 33 percent of survey respondents said Cash for Clunkers would help the auto industry, but by August that number had jumped to 51 percent. In July only 19 percent of in-market car shoppers said the program would be very successful and run out of funding quickly, but by August 48 percent agreed with that sentiment.
“While the specific details, perceived successes and failures of the CARS 2009 program can be debated at length, the latest Kelley Blue Book Market Intelligence study shows that Cash for Clunkers successfully got consumers in the mind-set to shop for a new car again, despite the economic hardships the country is experiencing,” said Rick Wainschel, senior vice president, market intelligence and brand strategy for Kelley Blue Book and kbb.com. “Manufacturers who placed heavy marketing emphasis and incentives on pushing the Cash for Clunkers program were winners in the end, both in increasing brand consideration in the minds of American car shoppers and likely upping their new-car sales as well.”
This Kelley Blue Book Market Intelligence study was fielded to 414 in-market car shoppers on Kelley Blue Book’s kbb.com from August 11-20, 2009, all of whom indicated they currently own a vehicle and intend to purchase or lease a new or used vehicle within the next 12 months.
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KBB.COM NAMES 2009 TOP 10 BACK-TO-SCHOOL CARS
Editors Name Top New, Used Back-to-School Rides; Offer Shopping, Buying Tips for Students and Parents
IRVINE, Calif., August 17, 2009 – The 2009 Top 10 Back-to-School Cars, www.kbb.com/schoolrides09, today were named by the expert editors from Kelley Blue Book, www.kbb.com, the leading provider of new car and used car information. With students heading back to high school and college campuses nationwide, the expert kbb.com editors offer their top recommendations for getting to and from class in an economical and reliable new or used car. The editors also provide car shopping and buying tips to aid both students and parents in this all-important purchase decision.
Along with choosing the right books, calculator and backpack for the upcoming academic year, the return to school often calls for selecting a new (or used) ride. Choosing the right kind of car can be a difficult process, especially when parents and their children are at odds with what they need versus what they want in a set of wheels. While features such as reliability, safety, affordability and practicality are important to any parent, how quickly their car accelerates and how cool it looks when cruising to the school football game are often bigger concerns for students.
The good news is that there are plenty of vehicles out there that can please both parties. Those considering a new entry-level vehicle will find the latest and greatest safety and technology advancements, a full warranty and, of course, that new-car smell. If saving money places higher on the “must” list, then there are plenty of dependable used cars out there that would suit the needs of any young adult.
“This year especially, with 2009’s tough economy and recent new-car-purchase stimulus programs like ‘Cash for Clunkers,’ we’re seeing abundant deals on great back-to-school cars,” said Jack R. Nerad, executive editorial director and executive market analyst for Kelley Blue Book’s kbb.com. “Vehicles are better built and better equipped than ever before, and there are a variety of options available to suit the needs of any parent, and inevitably satisfy the wants of any teen.”
Every new car listed on this year’s kbb.com Top 10 Back-to-School Cars list features New Car Blue Book Values starting under $18,000. Kelley Blue Book’s New Car Blue Book Values reflect real-world transaction prices and provide a more useful comparison point than Manufacturer's Suggested Retail Price (MSRP).
Every used car identified has a Kelley Blue Book Suggested Retail Value of less than $12,000. These values represent what a consumer can expect their local dealer to ask for the vehicle in question, and from which they can negotiate downward. For each model, the kbb.com editors chose the most recent model-year available that came in under $12,000, priced using mileage matching each car’s age. The editors chose 2005 as the earliest qualifying year.
Sample Choices from kbb.com’s 2009 Top 10 Back-to-School Cars List
2010 Kia Soul
2010 Mazda3
2009 Ford Focus
2007 Suzuki SX4
2006 Honda Civic
2005 Chevrolet Silverado
For the remaining 2009 Top 10 Back-to-School Cars choices, including full editorial commentary and reasoning behind each of the editors’ picks, visit the Top 10 Back-to-School Cars story in kbb.com’s Latest News section at www.kbb.com/schoolrides09.
CAR SHOPPING AND BUYING TIPS FOR STUDENTS AND PARENTS:
Arguably some of the vehicles on the lists may be cooler than others (but cool is, after all, in the eye of the beholder), and some are more practical, but each offers a balance of attributes that qualifies it as a great option for a back-to-school ride. To help ensure driving and ownership satisfaction into the coming school year and beyond, follow these guidelines for getting the right car at the right price:
· Do Your Research - All the information you need to put together a short list of favorite vehicles is available at kbb.com, including expert reviews, real-world values, side-by-side comparisons, safety and reliability ratings and more. There are even tools like a newly enhanced Perfect Car Finder®: Photo Edition that can help you decide exactly what ride is best for you.
· Consider Your Green Options – Visit the comprehensive KBB® Green section at www.kbb.com/green to learn about fuel-efficient vehicle options and various environmentally friendly technologies, participate in Green blogs and forums, take the Fuel Efficiency Challenge and more.
· Drive Two or Three Different Models - It’s easy to enjoy a test drive in the vehicle at the top of your list, but without driving one or two others to compare, you might easily miss out on something you’d like even more.
· Buying Used? - Whether buying from a private party or a dealer, it’s always a good idea to have any used vehicle checked out by a reputable independent service shop. When purchasing from an individual, print the private-party value from kbb.com as well as Kelley Blue Book's 27-point Vehicle Condition Quiz to take with you. These items will help you determine the “actual” condition and value of the vehicle.
· Buying New? - Always use a vehicle’s New Car Blue Book Value, not Manufacturer’s Suggested Retail Price, as your basis for comparing vehicles and negotiating with the dealer. New Car Blue Book Value reflects real-world selling prices, which are often hundreds or even thousands of dollars less than MSRP.
· Parents: Don't buy a car for your teen without driving it yourself, as your experience can help you identify problems or shortcomings that your teen may not notice. Also, trust your own judgment and don't let your teen talk you into buying a vehicle with which you’re not fully comfortable.
· Teens: Do all of your homework before you meet with mom or dad; show them you are responsible and ready for a car, and make it easy for them to say “yes” to your well-researched choice.
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KIA, HYUNDAI, JEEP SHOW INCREASED SHARE OF MARKET INTEREST AS HONDA, SATURN, BMW DECLINE
“Core” Domestic Brands Continue to Show Consumer Interest Strength
IRVINE, Calif., August 13, 2009 – Kelley Blue Book, www.kbb.com, the leading provider of new car and used car information, today announces the results of the latest analysis by Kelley Blue Book Market Intelligence of recent kbb.com Web traffic patterns, including the top five upward-climbing and downward-declining brands in share of market interest for July 2009 when compared to July 2008.
Top Five Upward Climbers Top Five Downward Decliners
1. Ford 1. Honda
2. Chevrolet 2. Saturn
3. Kia 3. BMW
4. Hyundai 4. Pontiac
5. Jeep 5. Nissan
While Ford and Chevrolet have led share of market interest year-over-year for the past three months, newcomers to the list Kia and Hyundai saw a significant increase in share of market interest in July 2009 when compared to July 2008. Kia saw a jump due to the popularity of its all-new Soul and the introduction of its all-new Forte, and Hyundai due to its heavy promotion of the Genesis coupe and sedan. Jeep also entered into the top five ‘upward climbers’ list for July 2009 with traffic primarily reaching the fuel-efficient Patriot small SUV, which is garnering more attention now due to recent heavy incentives and its eligibility for new-car purchase under the federal Cash for Clunkers program.
In July 2009, as other domestic manufacturers were coming out of of bankruptcy and dealer closings, Ford traffic saw the largest year-over-year share of market interest increase compared to July 2008. A leading contributor to Ford’s climb was the Fusion, which saw a 180 percent increase in year-over-year interest from July 2008 to July 2009, likely due to the introduction and heavy promotion of Ford’s 2010 Fusion and Fusion Hybrid models.
Brands affected by the negative economic news actually saw increases in share of market interest in July 2009 compared with the prior year. The second-highest upward climber of year-over-year share of market interest on kbb.com was Chevrolet. Despite GM’s bankruptcy and dealer closings, the Chevrolet brand’s share of market interest surged ahead in July 2009, based largely on strong consumer interest in the new 2010 Camaro as well as the heavily-marketed Equinox and Traverse crossovers.
Two exceptions to the domestic surge are Saturn and Pontiac, whose decline is largely attributable to General Motors’ decision to sell Saturn and terminate the Pontiac brand as part of its massive government-assisted reorganization. GM’s original communications sent a signal to consumers that the Saturn brand might cease to exist, which has eroded its market share since that announcement was made. While GM subsequently has announced that Saturn Corporation will be acquired by the Penske Automotive Group, this has not, as of yet, reestablished interest levels in that brand.
BMW is a newcomer to the top five ‘downward decliners’ list for July 2009, due to the fact that the luxury-car market has not fared as well with the current economic problems in 2009 when compared to one year ago. Even with more affordable entry-level models like the 1-Series and 3-Series, consumers still perceive BMW as a luxury brand and are simply not shopping for luxury vehicles as much this year. Luxury brands also have suffered as shoppers are drawn to more affordable vehicles that qualify for the Cash for Clunkers program.
Likely reasoning behind July share declines in Honda and Nissan was their uncommonly high interest in July 2008. At that time with a rapid run-up in fuel prices, consumers took a decided turn toward more fuel-efficient vehicles, boosting the share of audience for both small-car and primarily sedan-oriented brands, including those with heavy hybrid representation. Now, with fuel prices down from their peaks of nearly $5-a-gallon last year, the shares of both brands are at more ‘typical’ levels.
“Ford, Chevrolet and Jeep increasing their year-over-year share of market interest certainly brings good news to the domestic manufacturers, and the Korean manufacturers have a lot to be proud of with the increased interest in Kia and Hyundai,” said Jack R. Nerad, executive editorial director and executive market analyst for Kelley Blue Book and kbb.com. “However, domestic brands in flux such as Saturn and Pontiac, luxury brands like BMW and fuel-efficiency-focused Japanese brands like Honda and Nissan are simply victims of the changing times. A lot has happened to the U.S. economy in the past year, and the mindset of the American car shopper has changed along with it.”
The information contained in this press release is from Kelley Blue Book Market Watch Web site traffic data from kbb.com from July 2008 – July 2009.
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KBB.COM STUDY: DOMESTIC TRUCKS REMAIN CORNERSTONE OF STRENGTH; IMPORT TRUCK CONSIDERATION DECLINES
Ford Claims Top Spot in Consideration, Overtaking Chevrolet
IRVINE, Calif., August 12, 2009 – Kelley Blue Book, www.kbb.com, the leading provider of new car and used car information, today announces the results of the second-quarter 2009 Brand Watch study by Kelley Blue Book Market Intelligence, detailing consumers’ perceptions of truck brands and factors of importance when new-truck shopping. The study found that in the past year, domestic truck consideration has increased or held steady, while import truck consideration has decreased.
Currently, Ford is the most-considered truck brand at 58 percent, Chevrolet is second with 51 percent consideration, Dodge ranks third at 37 percent and GMC is fourth at 33 percent. Ford consideration is up significantly in the current results, increasing 12 points from the previous year and overtaking Chevrolet as the most-considered truck brand. Chevrolet and GMC consideration has remained constant in the second-quarter of 2009 when compared to the previous year.
“Even with the troubles experienced by the automotive industry in the past year, trucks remain a center of power for the domestic manufacturers. With a recent round of impressive redesigns and creative marketing to support their new launches, the latest Brand Watch study from Kelley Blue Book Market Intelligence shows that consumers still appreciate trucks from American companies,” said Rick Wainschel, senior vice president, market intelligence and brand strategy for Kelley Blue Book and kbb.com. “While import manufacturers tend to dominate perception – and frequently sales - in the small-car genre, the foundation underneath the domestic manufacturers does not show signs of cracking.”
In contrast to the strength demonstrated by Ford, GM brands and Dodge, Toyota truck consideration fell from 34 percent to 31 percent, Nissan truck consideration fell from 17 percent to 13 percent, and Honda truck consideration fell from seven percent to four percent in second quarter 2009 compared to the previous year. Toyota was the third-most-considered brand in second-quarter 2008, and now is the fifth-most considered brand in second-quarter 2009.
Additionally, new-truck shoppers indicate an increased importance in more ‘traditional’ truck factors in the last year, with durability/reliability, ruggedness/toughness, towing/hauling capacity, driving performance and driving comfort ranking among the top. While still a primary consideration at 55 percent, fuel efficiency has decreased in importance among new-truck shoppers. The decrease is in-part due to more stable gas prices compared to the spike of 2008, when survey respondents citing fuel efficiency as an important factor in truck purchase decisions was a full 10 points higher at 65 percent.
When looking at how individual truck brands fared on important decision factors, Ford takes the most No. 1 spots, including ruggedness/toughness, towing/hauling capacity, exterior styling, interior design/layout, versatility/flexibility, safety and cool factor/vehicle image. Chevrolet ranks first on fuel efficiency, driving comfort, economical factors and seating capacity. GMC ranks first in durability/reliability, driving performance, family friendliness and available options.
This Kelley Blue Book Market Intelligence Brand Watch study was fielded to 3,164 in-market car shoppers on Kelley Blue Book’s kbb.com from April – June, 2009. For Brand Watch sales inquiries on any vehicle segment or brand, please contact Kelly Kim, director of marketing research services for Kelley Blue Book and kbb.com, at 949-268-2756 or kkim@kbb.com.
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KBB.COM ECLIPSES TWO SINGLE-DAY TRAFFIC RECORDS, REPORTS GREATEST MONTH EVER
Market Interest Increasing Among Consumers; SUVs, Pickups among Most-Researched Segments
IRVINE, Calif., August 12, 2009 – Kelley Blue Book, www.kbb.com, the leading provider of new car and used car information, today announces an unprecedented amount of traffic to its top-rated consumer Web site in a single day and month, with a 20 percent year-over-year increase for July 2009.
Recently, traffic on kbb.com hit a staggering 618,000 visits as reported on July 23. Another record was set as the Web site accrued 649,000 visits on July 27. As of August 3, Kelley Blue Book trampled both preceding records to achieve an all-time high of 658,000 visits in a single day.
Total traffic for July 2009 escalated to 15.9 million visits, a 10 percent increase from the previous month. This is the highest number of visits on record for the Kelley Blue Book site, reaching six percent higher than the previous record (March 2009).
“Consumers are flocking to kbb.com as a one-stop shopping resource for their next new or used car,” said Justin Yaros, executive vice president, product design and development for Kelley Blue Book’s kbb.com. “All areas of the site are experiencing tremendous increases in traffic. Whether shoppers are looking to participate in the Cash for Clunkers program or simply have the new-car ‘bug,’ the resources available to them on the site or via KBB® Mobile can help provide the consumer with the confidence they need in making one of the biggest financial decisions.”
Kelley Blue Book offers a variety of Web tools, news and reviews for new and used cars on its consumer Web site, kbb.com. Recently, the company launched its classifieds section, The Trusted Marketplace℠, making kbb.com a one-stop shop for in-market car shoppers. Other Kelley Blue Book offerings include Perfect Car Finder®, KBB® Green, auto show coverage, articles and advice, vehicle reviews in video and print, and free dealer price quotes, among a number of other resources and information.
In July 2009, new-car visits on kbb.com jumped 26 percent from the previous month, while the used-car section experienced a 9 percent month-over-month increase. The most-researched segments among new- and used-car shoppers were sedans, SUVs and pickup trucks. The top new-car brands consumers researched on kbb.com included Toyota, Ford, Honda, Chevrolet, and Nissan. In the used-car experience, Ford, Chevrolet, Toyota, Honda, and Dodge topped the minds of online shoppers.
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KBB.COM NAMES 10 MOST FUN ‘CLUNKER’ REPLACEMENTS
Editors Name 10 Exciting New Cars Eligible for Purchase Under Federal ‘Cash for Clunkers’ Program
IRVINE, Calif., August 11, 2009 – The 10 Most Fun Clunker Replacements, www.kbb.com/funclunkerreplacements, today were named by the expert editors from Kelley Blue Book, www.kbb.com, the leading provider of new car and used car information.
The government’s Cash for Clunkers program is in full swing, and the editors of Kelley Blue Book’s kbb.com are seeing new-car shoppers combining $4,500 government credits with cash rebates and going home with economical, efficient compact cars for less than $8,000 out of pocket. But what if practicality is secondary to the desire to have some fun? In that case, consumers will probably have to spend more money than $8,000 and they will have to shop carefully. For instance, popular muscle cars like the Ford Mustang, Chevrolet Camaro and Dodge Challenger do meet the program’s $45,000 price ceiling, but they do not achieve the required EPA combined fuel economy of 22 mpg. Conversely, lightweight performers like the BMW Z4, Lotus Elise and Porsche 911 are adequately fuel-efficient, but too costly.
To help new-car shoppers turn Clunker credit into driving excitement, the editors of Kelley Blue Book’s kbb.com put together a list of the 10 Most Fun Clunker Replacements.
“With this seemingly once-in-a-lifetime opportunity to garner federal assistance in buying a new car, plenty of folks are maximizing their dollars and buying affordable, economical vehicles, but on the other hand, some new-car shoppers are looking for serious driving fun after years of riding around in their old clunker,” said Jack R. Nerad, executive editorial director and executive market analyst for Kelley Blue Book’s kbb.com. “While some great cars don’t make the ‘clunkers’ cut for price or fuel economy reasons, several exciting, fun-to-drive models do. To help shoppers who are looking to upgrade in their next new-car purchase after cashing in their clunker, we crunched the numbers and then chose our top picks for the 10 Most Fun Clunker Replacements.”
Sample Choices from kbb.com’s 10 Most Fun Clunker Replacements List
Audi TT
BMW 128i
Hyundai Genesis Coupe
Pontiac Solstice
Volkswagen GTI
For the remaining 10 Most Fun Clunker Replacement choices, including full editorial commentary and reasoning behind each of the editors’ picks, visit the 10 Most Fun Clunker Replacements story in kbb.com’s Latest News section at www.kbb.com/funclunkerreplacements.
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DISTINGUISH ONLINE INVENTORY AMONG COMPETITION WITH BLUE SEAL™ LISTINGS IN THE TRUSTED MARKETPLACESM
Blue Seal Listings Now Live for CDM Dealer Services Customers on Kbb.com
Irvine, Calif., August 10, 2009 – CDM Dealer Services, a Kelley Blue Book company, today announces the launch of the Blue Seal Listings program to its customers on kbb.com’s new classified section, The Trusted Marketplace℠. The Blue Seal Listings treatment will allow dealers with inventory collected and managed by CDM Dealer Services to have a special notation on their listings, informing car shoppers that the information and photographs contained in the classified listing were gathered directly by CDM Dealer Services.
The Blue Seal treatment will appear within the Used Car Inventory experience. For CDM Dealer Services customers who also are Kelley Blue Book Dealer Showcase customers, the Blue Seal treatment will appear on their feature-rich Dealer Storefront page and within kbb.com’s New and Used Car Inventory.
“With The Trusted Marketplace, dealers have the opportunity to market inventory to an immense number of serious online shoppers from kbb.com’s 13 million monthly visits,” said Mike Romano, chief operating officer for CDMdata, Inc., and senior vice president of dealer strategy for Kelley Blue Book. “With the unique Blue Seal merchandising call-out provided to CDM Dealer Services customers, dealers can set themselves apart, making their listings more appealing and potentially attracting more sales by showing consumers the information was collected by professionals. Dealers benefit from a larger marketable audience and recognition within classifieds.”
In addition to special Blue Seal recognition on Kelley Blue Book’s The Trusted Marketplace, CDM customers receive merchandising treatments to identify their vehicles as “newly listed” or “price lowered.” Vehicle listings through CDM also include Kelley Blue Book® Suggested Retail Values and Kelley Blue Book Digital Window Stickers integrated within their classified ads on kbb.com.
CDM offers an array of products and services to assist dealerships at all levels of business and effectively sell more cars online. For more information about Kelley Blue Book and CDM dealer products, services and solutions, please contact 866-379-CDM1, Option 1, or visit www.cdmdata.com.
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CASH FOR CLUNKERS TO CAUSE USED-CAR-VALUE BUBBLE
August Kelley Blue Book Market Report Offers Forecast of Used-Car Industry After Cash for Clunkers
IRVINE, Calif., August 7, 2009 – Kelley Blue Book, www.kbb.com, the leading provider of new car and used car information, today reveals possible effects of the Cash for Clunkers program on the used-car industry as reported in the company’s August 2009 Blue Book Market Report. As dealers and consumers continue to take advantage of this program, Kelley Blue Book analysts forecast a likely bubble in used-car values, which could deflate as the Cash for Clunkers program comes to a close.
With $1 billion spent and more than 250,000 new vehicles sold, the success of the Cash for Clunkers program cannot be argued. With more than 250,000 vehicles leaving the used-vehicle supply, this equates to a 0.8 percent reduction in the overall supply of used vehicles (based upon sales of 16 million used vehicles in 2008). When the Senate signs off on an additional $2 billion funding for the Cash for Clunkers program later today, it could equate to an additional 500,000 used cars being removed from the overall used-vehicle supply, which is a 2 percent overall reduction in supply this year alone. With a total of 750,000 vehicles being removed from the marketplace, dealers are stocking up on used inventory in anticipation of low supply and high demand. This scenario is driving used-car prices up significantly in the short term, causing a bubble in values that will seriously impact used-vehicle values when the Cash for Clunkers program ends.
“Dealerships have reported increased foot traffic, creating a false sense of automotive market recovery,” said Alec Gutierrez, senior analyst of vehicle valuation for Kelley Blue Book. “As a result, dealers are going to auction to restock inventory, driving up used-car values. However, the effect of a supply reduction of this magnitude could have an immense impact on these values in the short-term, exacerbating the already-limited supply at auction. If this bubble comes to pass, dealerships will end up with excess inventory of both new and used vehicles and be forced to offer deep discounts to remove surplus inventory, driving values down. Ultimately, there will be the possibility of a contraction in auto sales as soon as the Cash for Clunkers program runs out of funding.”
According to a Kelley Blue Book Market Intelligence study on the Cash for Clunkers program, 1-in-10 new-vehicle shoppers said they are likely to purchase sooner as a result of the government-sponsored program. In addition, 45 percent of consumers likely to participate in the program own a sedan, followed by SUV and crossover owners at 25 percent. Among that group, 37 percent plan to trade in their clunker for a sedan and 28 percent plan to buy an SUV or crossover. The top brands being considered among study participants are Toyota, Ford, Honda and Chevrolet.
This Kelley Blue Book Market Intelligence study was fielded to 517 in-market new-car shoppers on Kelley Blue Book’s kbb.com from July 10-17, 2009.
Kelley Blue Book’s vehicle valuation department is keeping a close eye on values as the program continues and an influx of additional funds is added to the program by the federal government. For additional information, please visit www.kbb.com/media for the latest Blue Book Market Report. If you would like to subscribe to the monthly Blue Book Market Report, please email pr@kbb.com.
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KELLEY BLUE BOOK PUBLIC RELATIONS CONTACTS:
Robyn Eckard
Director of Public Relations
949-268-3049
Joanna McNally
Senior Public Relations Manager
949-268-3079
Brenna Robinson
Public Relations Manager
949-267-4781
About Kelley Blue Book (www.kbb.com)
Since 1926, Kelley Blue Book, The Trusted Resource®, has provided vehicle buyers and sellers with the new and used vehicle information they need to accomplish their goals with confidence. The company’s top-rated Web site, www.kbb.com, provides the most up-to-date pricing and values, including the New Car Blue Book® Value, which reveals what people actually are paying for new cars. The company also reports vehicle pricing and values via products and services, including software products and the famous Blue Book® Official Guide. According to the C.A. Walker Research Solutions, Inc. – 2008 Spring Automotive Web Site Usefulness Study, kbb.com is the most useful automotive information Web site among new and used vehicle shoppers, and half of online vehicle shoppers visit kbb.com. Kbb.com is a leading provider of new car prices, car reviews and news, used car blue book values, auto classifieds and car dealer locations. No other medium reaches more in-market vehicle shoppers than kbb.com.
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