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Motor Authority - blog Tag: Trends

  • Toyota leads brand value survey, Mercedes leads luxury brands

    Toyota leads brand value survey, Mercedes leads luxury brands September 25th, 2008 ByJames Martinez James Martinez, Author, September 25th, 2008 James Martinez 2 Comments

    Toyota leads brand value survey, Mercedes leads luxury brands Brand value can be a fickle thing. It’s impossible to measure accurately and it can be affected by numerous volatile factors, but at the end of the day if a consumer is willing to pay more for one brand over another then brand value becomes a vital indicator of a company’s overall value.

    Nowhere is this more important than in the car industry, where a consumer’s perception of a brand can often be the main decisive factor when it comes to buying a new car. One of the best indicators of how valuable each brand is compared to its rivals is the annual Best Global Brands survey conducted by consultancy firm Interbrand and... Brand value can be a fickle thing. It’s impossible to measure accurately and it can be affected by numerous volatile factors, but at the end of the day if a consumer is willing to pay more for one brand over another then brand value becomes a vital indicator of a company’s overall value. Nowhere is this more important than in the car industry, where a consumer’s perception of a brand can often be the main decisive factor when it comes to buying a new car. One of the best indicators of how valuable each brand is compared to its rivals is the annual Best Global Brands survey conducted by consultancy firm Interbrand and BusinessWeek. Once again, Coca-Cola has taken out the top spot, now its eighth year in a row, followed closely by IBM, Microsoft and GE. When it comes to automotive brand value, Toyota as usual dominates the list with a sixth place ranking and a brand value of $34 billion. The next closest carmaker is Mercedes-Benz, which is ranked 11th overall and is worth $25.6 billion in brand value, followed by BMW in 13th spot with $23.3 billion in brand value. To be eligible for the survey, each brand must derive at least a third of its earnings outside its home country, be recognizable outside of its base of customers, and have publicly available marketing and financial data. Researchers evaluate brand value in the same way any other corporate asset is valued - on the basis of how much it is likely to earn for the company in the future. They use a combination of analysts’ projections, company financial documents, and qualitative and quantitative analysis to arrive at the final brand value estimates. The top ten automotive brands in order and value are as follows: 1) Toyota - $34b 2) Mercedes-Benz - $25.6b 3) BMW - $23.3b 4) Honda - $19.1b 5) Ford - $7.9b 6) Volkswagen - $7b 7) Audi - $5.4b 8) Hyundai - $4.8b 9) Porsche - $4.6b 10) Lexus - $3.6b Read More

  • Small cars still too small for U.S.?

    Small cars still too small for U.S.? September 19th, 2008 By Nelson Ireson Nelson Ireson, Author, September 19th, 2008 Nelson Ireson 3 Comments

    Small cars still too small for U.S.? The floor dropped out of the market for SUVs and pickups this year, and Americans were supposedly replacing them with small cars. But what's small in America isn't what's small in the rest of the world, and truly small cars appear to continue to get short shrift. The latest evidence of this fact is the Hyundai i10's exclusion from U.S. sale.

    But it's far from the only evidence of the American resistance to very small cars. Cars like the Toyota Yaris and Honda Fit do well, even to the point of selling out of dealer supplies in some areas of the country, but they are the smallest examples of commercial success in the U.S. car market aside... The floor dropped out of the market for SUVs and pickups this year, and Americans were supposedly replacing them with small cars. But what's small in America isn't what's small in the rest of the world, and truly small cars appear to continue to get short shrift. The latest evidence of this fact is the Hyundai i10's exclusion from U.S. sale. But it's far from the only evidence of the American resistance to very small cars. Cars like the Toyota Yaris and Honda Fit do well, even to the point of selling out of dealer supplies in some areas of the country, but they are the smallest examples of commercial success in the U.S. car market aside from a rather limited-volume sampling of the Smart ForTwo. Toyota is even reportedly considering keeping its Smart-sized iQ away from the U.S. because of its size. There appears to be no single factor for the reluctance to embrace truly small cars, despite their obvious advantages for the majority of city-dwellers. High exchange rates could drive the price of imported small cars upward enough to make the fuel savings benefits marginal at best. Safety concerns about sharing the highways and byways with the three-ton hulks known as SUVs are equally real. Together, those two plus the apparent American predisposition against anything smaller or cheaper are conspiring to keep such innovative small cars off the roads. In the i10's case, Hyundai has already realized this and is instead working on bringing a Fit or Yaris competitor such as the i20 or i30 to the U.S., though senior vice president of product planning for Hyundia/Kia says there "is no decision yet," reports Automotive News. Read More

  • Ford convinced electricity will beat all alternatives

    Ford convinced electricity will beat all alternatives September 5th, 2008 By Nelson Ireson Nelson Ireson, Author, September 5th, 2008 Nelson Ireson 17 Comments

    Ford convinced electricity will beat all alternatives There are almost as many different approaches to the future of automotive fuel and energy supply as there are carmakers, with hydrogen combustion engines, hydrogen fuel cells, ethanol, hybrid, plug-in hybrid and a number of permutations of these all in development. Ford thinks they are all just stepping stones to the final fuel source: electricity.

    Seeing the power of electrons as providing a unifying motive force, Ford's global product chief Derrick Kuzak has staked his claim that electricity is "the ultimate solution" to the problem of future fuels, reports The Detroit News. Alternative fuels like hydrogen and ethanol are impractical to... There are almost as many different approaches to the future of automotive fuel and energy supply as there are carmakers, with hydrogen combustion engines, hydrogen fuel cells, ethanol, hybrid, plug-in hybrid and a number of permutations of these all in development. Ford thinks they are all just stepping stones to the final fuel source: electricity. Seeing the power of electrons as providing a unifying motive force, Ford's global product chief Derrick Kuzak has staked his claim that electricity is "the ultimate solution" to the problem of future fuels, reports The Detroit News. Alternative fuels like hydrogen and ethanol are impractical to produce, and even if that hurdle is cleared, they don't have an existing infrastructure like electricity does, argues Kuzak. Despite these shortfalls, Ford will continue researching the technologies to cover its bases in the event of a future breakthrough or government intervention. Jim Farley, Ford's chief of marketing, agrees that electric cars are the way of the future, and that the industry as a whole must prepare for that eventuality. Hybrids in particular are problematic, notes Kuzak, despite their partially-electric operation. Because they are effectively two separate powertrains in the same vehicle, they dramatically increase costs without an proportionate increase in efficiency. Even current and future plug-in hybrids (like the Escape plug-in hybrid pictured above) rely on some sort of combustion engine to provide longer-range electricity. That's where critics step in and point out the flaw in Ford's vision: battery technology. The reality of the current technological marketplace necessitates the use of supplemental fuels to aid electric cars on trips of extra-urban distances. Still, Ford's vision for the future means that while the energy storage systems remain in development, focusing on electric powertrains - whatever the power source - is going to be the core of the new agenda. That means electric motors, regenerative braking systems, and ways to quickly, efficiently and safely deliver large amounts of electricity to enable acceptable acceleration. Read More

  • American carmakers slip in latest satisfaction survey

    American carmakers slip in latest satisfaction survey August 19th, 2008 ByAlex Kaufmann Alex Kaufmann, Author, August 19th, 2008 Alex Kaufmann 1 Comment

    American carmakers slip in latest satisfaction survey A survey conducted by the University of Michigan to determine customer satisfaction levels among the major automotive brands has revealed that the Detroit 3 have slipped slightly after last year’s record result, while Japanese manufacturers Toyota, Lexus and Honda all remained in the top five.

    Dubbed the American Customer Satisfaction Index, the survey ranks cars on a 100-point scale depending on the satisfaction ratings made by respondents. The researchers compile the scores based on interviews with more than 65,000 consumers who have purchased a new car within the past three years, reports The Detroit News.

    Despite significant... A survey conducted by the University of Michigan to determine customer satisfaction levels among the major automotive brands has revealed that the Detroit 3 have slipped slightly after last year’s record result, while Japanese manufacturers Toyota, Lexus and Honda all remained in the top five. Dubbed the American Customer Satisfaction Index, the survey ranks cars on a 100-point scale depending on the satisfaction ratings made by respondents. The researchers compile the scores based on interviews with more than 65,000 consumers who have purchased a new car within the past three years, reports The Detroit News. Despite significant improvements in customer satisfaction surveys over the past few years, Buick, Cadillac, Lincoln and Mercury all posted lower scores compared to last year. Nevertheless, all three still managed to outperform Mercedes-Benz, which experienced a 1.2% drop in customer satisfaction and has a current rating of 82 compared to Buick's 85. Chevrolet experienced the largest drop over the past year, falling from 82 to 79. Chevrolet, Dodge and Jeep made up the bottom-three of the customer satisfaction survey, remaining over 10 points behind top contenders Lexus and BMW. High fuel prices have been partly attributed to the slip of American brands, largely due to a lack of fuel efficient models, especially when compared to Japanese manufacturers. The news wasn't all bad for American brands though, with Saturn posting the highest gain of any marque in customer satisfaction - its rating increased from 81 to 85. Nissan, Mazda and Kia all experienced growth in their scores also, although of the three only Nissan was above the industry average score of 82. Read More

  • Traffic deaths in U.S. reach 10-year low

    Traffic deaths in U.S. reach 10-year low August 18th, 2008 By Nelson Ireson Nelson Ireson, Author, August 18th, 2008 Nelson Ireson 3 Comments

    Traffic deaths in U.S. reach 10-year low High oil prices are causing people to drive less, and many are quick to point out the emissions saved as a result, but the latest traffic figures reported by the NHTSA indicate another savings may be taking place as well - 1,600 fewer road deaths occurred in 2007 than in 2006. Whether it's the reduction in total road travel, safer cars or strengthened law enforcement efforts - or likely, all three - that are due the credit, the end result is the lowest national road death toll in a decade.

    The biggest numerical difference was seen in California, where 266 fewer people were killed on the roads in 2007 than in 2006. The highest percentage... High oil prices are causing people to drive less, and many are quick to point out the emissions saved as a result, but the latest traffic figures reported by the NHTSA indicate another savings may be taking place as well - 1,600 fewer road deaths occurred in 2007 than in 2006. Whether it's the reduction in total road travel, safer cars or strengthened law enforcement efforts - or likely, all three - that are due the credit, the end result is the lowest national road death toll in a decade. The biggest numerical difference was seen in California, where 266 fewer people were killed on the roads in 2007 than in 2006. The highest percentage decline in the death toll was found in the relatively small-population states of South Dakota and Vermont, reports CNN. Not all states saw decreases, however. North Carolina, for example, saw its traffic fatality total rise by 121 individuals. Motorcyclists also fared poorly, with the death rate continuing its decade-long rise, up 317 over 2006 statistics. Traffic injuries were also down, falling for the eighth year in a row, with 2.49 million total injuries - a considerable drop from the 2.58 million reported in 2006. The NHTSA predicts deaths and injuries will continue to fall further as the economy slows and people drive less. Already several states have reported significant drops in fatalities so far this year. Read More

  • Cars now at most affordable prices since 1980

    Cars now at most affordable prices since 1980 August 11th, 2008 By Nelson Ireson Nelson Ireson, Author, August 11th, 2008 Nelson Ireson 2 Comments

    Cars now at most affordable prices since 1980 Carmakers are struggling and the global economy is straining under the weight of high oil prices, but cars haven't been this affordable in nearly 30 years. Calculated by relating the number of weeks it takes for the median family's income to pay for the average new-vehicle price, the quarterly rating, determined by Comerica Bank, stands at 23.1 weeks.

    Last year's second-quarter figure was nearly two weeks of pay higher, and no quarter of any year since 1980 has been lower than the second quarter of 2008. What that means in real dollars is that the average price of cars sold in the U.S. is down $700 to $23,900, excluding finance costs. That... Carmakers are struggling and the global economy is straining under the weight of high oil prices, but cars haven't been this affordable in nearly 30 years. Calculated by relating the number of weeks it takes for the median family's income to pay for the average new-vehicle price, the quarterly rating, determined by Comerica Bank, stands at 23.1 weeks. Last year's second-quarter figure was nearly two weeks of pay higher, and no quarter of any year since 1980 has been lower than the second quarter of 2008. What that means in real dollars is that the average price of cars sold in the U.S. is down $700 to $23,900, excluding finance costs. That makes it the lowest figure, in terms of actual dollars, in three years. The data appears to be a reflection of the market's current trend towards smaller, more fuel efficient (and therefore cheaper) cars. "With gasoline prices soaring, interest rates on car loans rising, and the economy wobbly, those consumers who are still in the market for a new vehicle are opting for less expensive models," said Dana Johnson, Chief Economist at Comerica Bank. With most carmakers being forced to raise prices by several percent this year due to high materials and transport costs, buyers are simply purchasing less expensive vehicles, while the more expensive cars that have traditionally sold well languish, making this yet another metric of the market's current downsizing trend. Read More

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