Tag Archives: Kelley Blue Book

Business, Finance, Occupation & Industry

Chrysler 2Q Profit, Sales Rise, but Cuts Full-Year Forecasts

Leave a comment

By The Associated Press

fiat ceo sergio marchionne chrysler earnings automotive industry manufacturing

Filed under: , , , ,

Paul Sancya/APFiat and Chrysler CEO Sergio Marchionne

By DEE-ANN DURBIN

DETROIT — Chrysler Group’s sales picked up in the second quarter thanks to strong U.S. demand for trucks and SUVs, but the company still cut its full-year sales and profit targets after a slower than expected start to the year.

Chrysler said Tuesday that its net income rose 16 percent to $507 million in the April-June period from $436 million a year ago. It was Chrysler’s eighth straight quarterly profit.

Chrysler sold 643,000 vehicles worldwide in the second quarter, up 10 percent from a year ago. Sales were also up 10 percent in the U.S., where Chrysler sells 75 percent of its vehicles. Chrysler’s U.S. sales rose faster than the industry average of 8 percent in the second quarter.

Sponsored Linksadsonar_placementId=1505951;adsonar_pid=1990767;adsonar_ps=-1;adsonar_zw=242;adsonar_zh=252;adsonar_jv=’ads.tw.adsonar.com’;

Revenue was up 7 percent to $18 billion from $16.8 billion.

Chrysler said it now expects to ship 2.6 million vehicles worldwide in 2013, at the low end of its target of between 2.6 million and 2.7 million. It expects to earn between $1.7 billion and $2.2 billion, down from its previous target of around $2.2 billion.

Chrysler’s first-quarter figures suffered because it was slow to release new versions of the Ram pickup and Jeep Grand Cherokee SUV, two of its most popular vehicles. Chrysler CEO Sergio Marchionne described the first quarter as a one-off event and urged workers to “just close your eyes and plug your nose and move on from here.”

Chrysler’s production issues were resolved and there were plenty of vehicles on the ground in the second quarter. U.S. Ram sales rose 30.4 percent over last year as construction companies and other small businesses raced to replace aging trucks. It was the Ram’s best second quarter since 2007.

Grand Cherokee sales soared 27 percent to 47,663. The Grand Cherokee is one of Chrysler’s biggest money makers. U.S. buyers paid an average of $40,294 for a Grand Cherokee in the second quarter, up 9 percent from a year ago, according to car pricing site Kelley Blue Book.

U.S. sales were up for the company’s Dodge, Fiat, Jeep and Ram brands; only the Chrysler brand, with aging vehicles like the Town and Country minivan, saw sales drop.

In the second half of this year, Chrysler should get a boost from the release of the new Jeep Cherokee, which started rolling off the line in Toledo, Ohio, last month. The Cherokee replaces the Jeep Liberty, which was phased out last year.

“Chrysler Group is poised for a very strong performance in the second half of the year,” Marchionne said Tuesday in a statement.

Chrysler is majority owned by Italian automaker Fiat SpA, which is scheduled to release its second-quarter results later Tuesday.

%Gallery-187663%

<a target=_blank …read more

Source: FULL ARTICLE at DailyFinance

Business, Finance, Occupation & Industry

A Virtuous Cycle for Autos and the U.S. Market

Leave a comment

By Daniel Miller, The Motley Fool

Filed under:

It’s no secret, if you follow my writing, that I really like Ford  as a great value play. I’ve covered many specific reasons why I think Ford has turned into an incredible company since Alan Mulally took over and waded through the recession without a bailout.

That said, Ford, like many of its peers, remains undervalued, because risk-averse investors cling to past perceptions of the automotive industry. I understand the reluctance to believe that Detroit has finally learned its lesson and is now producing vehicles that are in demand. However, the misperception offers savvy investors an opportunity to profit from others’ reluctance. Let’s take a macro look at some factors and see if future vehicle sales will continue to rise — increasing profits for automakers.

Macro view
To put it simply, the better, faster, and stronger the U.S. economic recovery is, the happier automakers will be. Right now, Detroit gets the vast majority of its profits from North America. The more people feel secure about their jobs and their futures, in general, the more people will make that vehicle purchase that they’ve long put off.

While February’s unemployment report came with plenty of caveats, it was enough to make Wall Street happy. U.S. employers added 236,000 jobs in the month, making it the best jobs report since last November. It was enough to drop unemployment from 7.9% to 7.7%, the lowest since December 2008. Things are looking up, albeit slowly, and that’s good news for Ford, General Motors , and Japanese rivals Toyota Motors and Honda .

Investors will, however, have to keep an eye open going forward, because the substantial budget cuts in D.C. will have an impact on the recovery. Let’s look at some more specific estimates in the auto industry. 

Tax returns
As refunds from tax returns hit consumers’ pockets, automakers could see a potential boost in March sales. My friend recently gave up his clunker and used his tax return to put a down payment on a new truck. I’m guessing that there are many more consumers doing the same thing. Backing up my thesis is Alec Gutierrez, senior market analyst of automotive insights for Kelley Blue Book.

“Sales will be boosted by record low interest rates and a slowly improving job market, which recently saw the unemployment rate and new unemployment claims fall to five-year lows,” Gutierrez said. “In addition, with attractive financing and ample inventory to choose from, many people receiving tax refunds will use their returns toward a down payment on a new vehicle this month.” That’s good news for investors hoping that March will end the quarter strong for earnings reports. 

Virtuous cycle
Auto output in the U.S. helped factory production numbers last month, which, in turn, is helping to drive economic growth. Vehicle sales have also reached their highest level in five years and are expected to continue rising. We’re on pace this year to sell around 15.4 million vehicles, compared with 10.4 million …read more

Source: FULL ARTICLE at DailyFinance

Business, Finance, Occupation & Industry

GM Could Be in for a Bumpy Ride

Leave a comment

By Adam Levine-Weinberg, The Motley Fool

Filed under:

2013 is a critical year for General Motors as the American auto giant tries to overcome the stigma of bankruptcy and retake market share in the U.S. Management has been touting a series of high-profile vehicle launches, but none is more important than the company’s new line of full-size pickups. If successful, the new pickups have the potential to boost GM‘s profitability, but in the meantime GM has to manage a complex transition between the previous architecture and the new one. Analysts and investors have worried that GM may have too much inventory of the old pickup trucks, which could force margin-sapping discounts or crimp sales of the new models. I expect these concerns to weigh on the stock until the transition is more or less complete at the end of the year.

New trucks coming
GM is launching new versions of the Chevy Silverado and GMC Sierra pickups this spring. On Monday, executives announced that Silverado pricing would remain the same compared to the current generation. Moreover, GM claims that the 5.3-liter EcoTec V8 engine (which will be an $895 option for buyers) will provide better fuel economy than competitors’ V8 engines, and will even edge out Ford‘s V6 EcoBoost by one mile per gallon on the highway.

The risk for GM is that hyping the launch of the new pickups will depress demand for the old ones. With a better version to be available in a few months, customers who can delay their purchases may do so, unless they are drawn in by heavy incentive spending.

Inventory issues?
For investors, uncertainty about the near-term pickup sales trajectory is heightened by the volatility of GM‘s pickup sales pace recently. Weak full-size pickup sales in November led to a spike in inventory worries, but a strong December brought inventories down to from 139 days of supply to 80. January sales were also strong, but inventories increased and days of supply jumped to 117. Strong February sales brought the days of supply number back below 100, but a weaker March caused GM to end the first quarter with 117 days of supply in inventory once again.

Last month’s reversal came as Silverado sales grew 8.4% year over year and Sierra sales were flat compared to 2012. Combined, GM full-size pickup sales were up 6% to 53,378 units. This fell short of the 14.9% gain expected by Kelley Blue Book analyst Alec Gutierrez. By contrast, Ford sold 67,513 F-Series trucks, up more than 16% over the prior year, and Ram pickup trucks were up 25% year over year with 33,831 sold. It is too early to know whether GM‘s underperformance compared to peers last month was a blip or the beginning of a trend caused by anticipation of the new models. Management professes to be very comfortable with the current inventory level of approximately 240,000 full-size pickups. However, if sales slow any further in the spring, GM will need …read more
Source: FULL ARTICLE at DailyFinance

Business, Finance, Occupation & Industry

Ford's Stylish 2013 Fusion Is Changing Attitudes

Leave a comment

By Daniel Miller, The Motley Fool

Filed under:

The midsize sedan segment is filled with competition, but if Ford or General Motors wants to regain market share lost to the Japanese, that is where it will be done. The majority of Detroit’s automakers’ profits come from trucks, but market share is driven by high volume vehicles such as Ford’s Fusion, Focus, and a couple others. The Fusion has had tremendous success, and is beginning to change consumers’ minds about the quality of Ford’s vehicles. Let’s take a look at how it’s selling and what critics are saying. One thing is clear: If Ford continues to have success with other vehicles as it has had with the Fusion, it will be a stock you want to own.

Sales success
Let’s first look at how tremendously well the Fusion has been doing this year. In January it topped its prior year by 65%, a very impressive increase. February was another strong month, topping last year’s record February by 28%. On Monday Ford released March sales information, and the Fusion – for the first time in history – delivered sales figures over 30,000 for the month and over 80,000 total for the quarter. Consumers are giving Ford’s Fusion a chance, and they’re driving them off the lot in a hurry.

Awards
The Fusion continues to add to its collection of trophies, locking up this year’s “Green Car of the Year” award at the auto show in Los Angeles. The Fusion beat five other models from Toyota, Mazda, Dodge, and wouldn’t you know it – another Ford model. One reason it won was due to the sheer number of fuel-efficient options it delivers to consumers. It has the conventional vehicle, a hybrid, plug-in hybrids, and multiple EcoBoost engines that offer increased gas mileage. 

Kelley Blue Book named the 2013 Fusion the “Best Redesigned Vehicle” of the year, describing the new ride as “gorgeous”. Its styling definitely takes on hints from Ford’s previously owned Aston-Martin brand, and has been a hit in a midsize segment that can sometimes lack innovative styling to appease the mass market. 

Looking at the U.S. News & World Report 2013 “Best Cars for Families” award, the Fusion won in the best midsize car category for three straight years now. In addition to that accolade, the hybrid version has won the top spot in its category for two years in a row. This award is based on quality, features, and space for families. Aside from family vehicles, the U.S. News also named the Fusion the best midsize car for your money. Ford’s brought home other awards, too, as it won “Best Cars for the Money” awards with six vehicles taking home first place – the most of any brand. I could go on, but that should be enough to emphasize that the Fusion is changing consumers’ minds. What’s all this mean for Ford investors, though? 

Bottom line
For investors it’s all about profits and market share, both …read more
Source: FULL ARTICLE at DailyFinance

Business, Finance, Occupation & Industry

Automakers Expected to Report Highest U.S. Sales Since 2007

Leave a comment

By The Associated Press

Filed under: , , , ,

Stan Honda/AFP/Getty Images General Motors’ 2014 Chevrolet Corvette Stingray convertible on display at the New York auto show, which runs through April 7. Consumer interest in new cars has grown as the economy has slowly improved, fueling expectations of higher sales in March.

By DEE-ANN DURBIN

DETROIT — U.S. car and truck sales are expected to hit their highest level in nearly six years in March, as buyers armed with tax refund checks were lured by flashy new vehicles and low interest rates.

Auto companies release U.S. sales figures Tuesday.

Analysts predict total sales of nearly 1.5 million cars and trucks, a number not seen since May 2007. That’s almost double the 855,000 vehicles sold in March 2009, the low point for sales during the economic downturn, according to Ward’s AutoInfoBank. Sales are expected to be up 3 to 5 percent over last March.

Alec Gutierrez, a senior market analyst with the car pricing company Kelley Blue Book, said the improving job market is boosting sales. The number of Americans seeking unemployment benefits fell to a five-year low during March. Low interest rates are also making new-car purchases more appealing, Gutierrez said. The average rate for a 60-month new-car loan is now 4.12 percent, down from 4.52 percent at this time last year, according to Bankrate.com.

And Gutierrez says tax refunds can also spur purchases. The average federal tax refund this year is nearly $3,000, or enough to cover the down payment on a three-year lease of a Toyota Camry hybrid or a BMW 3-Series sedan.

Full-size pickup truck sales are expected to rise nearly 15 percent in March, following big gains in February, Kelley Blue Book said. Construction companies are rapidly replacing their truck fleets as the economy improves and they win more business.

Gutierrez said incentive deals — such as the $7,500 cash back now offered for the Chevrolet Silverado pickup — are helping truck sales, and should continue for a while. General Motors Co. (Ford Motor Co. (GM wants to clear out older models before introducing its new Chevrolet Silverado in a few months.

"Consumers looking for a new pickup truck should not hesitate to pull the trigger," he said.

Crossovers are also gaining, thanks to redesigned models like the Ford Escape and Toyota RAV4. Small cars are down slightly, in part because gas prices are relatively low. Gas averaged $3.64 per gallon at the end of March, down from $3.78 at the end of February and $3.91 in March of 2012, according to AAA.

Honda Motor Co.'s (HMC) sales gain should be among the best for March. Sales rose nearly 9 percent, according ...read more
Source: FULL ARTICLE at DailyFinance

Business, Finance, Occupation & Industry

Analysts: Strong Sales Continue for GM and Ford

Leave a comment

By John Rosevear, The Motley Fool

Filed under:

Did U.S. auto sales hold strong in March?

We’ll know for sure when official numbers are reported on Tuesday, April 2, but if analysts are correct, March was indeed another solid month for car and truck sales in the U.S.

Analysts polled by Bloomberg expect an average 4.2% year-over-year increase in U.S. sales of “light vehicles” (cars, pickups, and SUVs). At least one high-profile analyst, Edmunds’ Jessica Caldwell, thinks March was likely the best month for U.S. light-vehicle sales since May of 2007.

While Ford will likely come in with an increase above the average, analysts say, the year-over-year growth winner looks set to be General Motors .

A good month as the General gathers strength
GM is expected to post a 12% year-over-year sales gain for March, according to the Bloomberg consensus analyst estimate. GM’s full-sized pickups are likely to have been a big driver of any sales increase – Kelley Blue Book analyst Alec Gutierrez estimates that overall full-sized pickup sales were up 14.9% in March, and GM is known to be aggressively clearing out pickup inventories ahead of the arrival of redesigned models later this spring.

GM’s increasing strength in cars is likely beginning to pay off as well. The Cadillac ATS and XTS sedans, both introduced last year, are set to benefit as GM’s efforts to revive its old luxury brand gather steam. And GM has more new vehicles on the way: The company is introducing 13 new Chevrolets in 2013, as well as another Cadillac, the mid-sized CTS, due at dealers this fall.

Meanwhile, Ford will likely bask in a strong result for its midsized Fusion sedan, introduced late last year. Kelley Blue Book estimates that Fusion sales will be up 24% over year-ago totals for the last-generation model, itself a strong seller.

Tight supply and strong demand at Ford
Ford is probably selling all the Fusions it can make at the moment, as its factories are at full capacity – and in some cases, beyond. The company is adding 1,200 workers at its plant in Flat Rock, Mich., to build additional Fusions starting later this year.

Ford’s production capacity challenges extend well beyond the hot new Fusion. While the impressive utilization of its factories has meant big profits in North America, the company is likely to be facing tight supplies for a few more months as it works to squeeze more production out of its existing North American factories.

That will likely keep the Blue Oval’s sales increases relatively subdued, at least for a few more months, even as new models bring nice gains to GM. But Ford shareholders can take comfort: Those busy factories should continue to drive strong North American profits for the Blue Oval.

Worried about Ford?
If you’re concerned that Ford’s turnaround has run its course, relax — there’s good reason to think that the Blue Oval still has big growth opportunities ahead. We’ve outlined those opportunities in detail, in the Fool’s …read more
Source: FULL ARTICLE at DailyFinance

News, Politics, Government

How To Prepare Your Car For Sale

Leave a comment

By Jason Fogelson, Contributor

The market for used cars is evolving rapidly. Today’s used car buyer has access to more information about vehicles, pricing and the overall market than most professional salesmen had in the previous millennium. If you want to sell your used car for a fair price with the minimum amount of hassle, you need to meet your buyers where they live: on the information superhighway. According to Daniel Pink in To Sell Is Human: The Surprising Truth About Moving Others (Riverhead Books, 2012), “buyers today aren’t ‘fully informed’ in the idealized way that many economic models assume. But neither are they the hapless victims of asymmetrical information they once were… The balance has shifted. If you’re a buyer and you’ve got just as much information as the seller, along with the means to talk back, you’re no longer the only one who needs to be on notice. In a world of information parity, the new guiding principle is caveat venditor— seller beware.” One way to meet information parity head on is to think like a buyer, and to gather and reveal as much information as possible before a buyer confronts you with the facts. Pink says that “when buyers can know more than sellers, sellers are no longer protectors and purveyors of information. They’re the curators and clarifiers of it— helping to make sense of the blizzard of facts, data, and options.” Companies like CARFAX and AutoCheck offer private party buyers the opportunity to download vehicle registration, repair and accident reports instantly by submitting a Vehicle Identification Number (VIN). A standard CARFAX vehicle history report provides ownership history, title history and other information, including a detailed history with odometer readings, estimated vehicle value and links to other similar vehicles for sale. This buyers tool can also be a tremendous tool for sellers. Order up a copy of the CARFAX or AutoCheck report on the car that you want to sell, and have it available to show to prospective buyers. Examine the report carefully so that you can provide further documentation on any notations. For instance, if your car has been in a minor accident and you’ve had it repaired, that may show up as an entry on a CARFAX report. Be prepared to describe the damage and show receipts for the repair, and reassure your buyers that you have received quality repair and restoration for your vehicle. Use the Internet to price your vehicle appropriately, and share your pricing strategy with your buyer. Use the free resources at Kelley Blue Book, AutoTrader and NADA Guides to figure out what the fair market value is for your car. Be honest with yourself about your car’s condition, and come up with your best price. Then, print out the pricing information, and make it available when buyers come to look at your car. Think about why you bought your car to begin with, and try to share that passion with potential buyers. Many automotive publications maintain online archives of their car reviews. Search the …read more
Source: FULL ARTICLE at Forbes Latest

Automobiles

Video: And now for a different sort of Tesla Model S review…

Leave a comment

By Zach Bowman

KBB Tesla Model S Video

Filed under:

Our friends at Kelley Blue Book have taken an unflinching look at the Tesla Model S in a new video. The crew originally planned to pack up and whip the electric sedan all the way to Las Vegas from Los Angeles, but got sidelined by a flat tire. The ensuing detour to a Tesla service center resulted in a day of hopping from charge point to charge point and a number of close calls on the range front. Confronted with cold temperatures, a desire to make time and some serious topography, the Model S pulled up short on projected range but never left the guys stranded.

The team eventually makes it to Vegas and discovers the aggravation of trying to charge the car with anything other than the company’s supercharger stations. The return trip goes quite a bit better, however, and KBB starts to figure out what makes the Model S so special. We won’t ruin the end for you. You can check out the full clip below.

Continue reading And now for a different sort of Tesla Model S review…

And now for a different sort of Tesla Model S review… originally appeared on Autoblog on Sun, 24 Feb 2013 18:58:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments

…read more
Source: FULL ARTICLE at Autoblog

Automobiles

Official: Mazda and Lexus crowned with KBB 5-Year Cost To Own awards

Leave a comment

By John Neff

2013 Kelley Blue Book 5-Year Cost to Own Awards logo

Filed under: We report on a lot of awards, some of which are given out based on more solid criteria than others. This one, the Kelley Blue Book 5-Year Cost to Own awards, seems like one that new car shoppers should pay attention to.

The cost of a car goes far beyond what you pay for the actual metal, leather and rubber at the point of purchase. Fuel, insurance, maintenance and repair costs, and the cost of fees from the state and financing will all weigh on your wallet while you own the car. That’s not even taking into account the biggest cost: depreciation, or the amount of money you lose based on what your car is worth years from now versus the day you bought it.

KBB tracks these sorts of things, and they’ve compiled a list of winners for 2013 models. On the brand level, Mazda and Lexus earn the 5-Year Cost to Own award for having the lowest overall projected five-year totals (though, curiously, we note that Mazda and Lexus each had only one segment winner). There are lots of winners for all the various segments, so we’ll just pick out a few surprising ones to share and you can view the rest here.

Many vehicles that aren’t generally considered competitive in their segments still do well from a cost-to-own perspective. The Jeep Patriot, for instance, won the Compact SUV/Crossover segment, while the Mitsubishi Outlander scores for the midsize SUV/Crossover group. For hybrids, the Honda Insight costs the least over five years, while the admittedly small segment of pure electric vehicles is lead by the Chevrolet Volt. What’s the least expensive 2013 model year sports car to own? The Ford Mustang, while the Mustang GT also nabs honors in the High Performance Car segment. Like we said, you can check out the full list here, and even <a target=_blank href="http:// KBB.COM ANNOUNCES 2013 5-YEAR COST TO OWN AWARD WINNERS Top 2013 Models, Brands Honored for Lowest Projected Costs During Initial Five-Year Ownership Period IRVINE, Calif., February 5, 2013 /PRNewswire/ — The 2013 model-year vehicles and brands (in both luxury and non-luxury categories) with the lowest projected ownership costs were announced today by Kelley Blue Book www.kbb.com, the leading provider of new and used car information. These awards are based on Kelley Blue Book's 5-Year Cost to Own data for new cars for the initial five-year ownership period. While depreciation (or loss of value) and fuel costs may be the greatest expense incurred in owning a vehicle, there are other factors that can have a significant impact on a consumer's pocketbook. Available on Kelley Blue Book's KBB.com, 5-Year Cost to Own information takes into consideration depreciation, expected fuel costs, finance and insurance fees, maintenance and repair costs, and state fees for new models. Kelley Blue Book's 5-Year Cost to Own Awards, like all new- and used-car information provided by KBB.com, exist …read more
Source: FULL ARTICLE at Autoblog