• DigitalDealer-horizontal-Logo
  • ATTEND LAS VEGAS
    • Attendee
      • Registration & Pricing
      • Agenda At-A-Glance
      • Exhibitor List/Floor Plan
      • Sponsor List
      • Hotel & Travel
      • Hosted Dealer Program
      • FAQ
      • Mobile App
    • Exhibitor
      • Exhibit/Sponsor
      • Advertising Opportunities
      • Exhibitor Resources
      • Exhibitor Tips
    • Education
      • Overview
      • Show Schedule
  • ABOUT
    • Conference Overview
    • Best Of Awards
    • Become a Speaker
    • Press Inquiries
    • Partnership Programs
    • Health & Safety
    • Contact Us
    • Get Updates
  • RESOURCES
    • Webinars
    • Downloads
  • NEWS
    • Auto Retail News
    • Digital Editions
    • Press Releases
    • Submit Editorial
    • Subscribe
  • .
  • ATTEND LAS VEGAS
    • Attendee
      • Registration & Pricing
      • Agenda At-A-Glance
      • Exhibitor List/Floor Plan
      • Sponsor List
      • Hotel & Travel
      • Hosted Dealer Program
      • FAQ
      • Mobile App
    • Exhibitor
      • Exhibit/Sponsor
      • Advertising Opportunities
      • Exhibitor Resources
      • Exhibitor Tips
    • Education
      • Overview
      • Show Schedule
  • ABOUT
    • Conference Overview
    • Best Of Awards
    • Become a Speaker
    • Press Inquiries
    • Partnership Programs
    • Health & Safety
    • Get Updates
  • RESOURCES
    • Webinars
    • Downloads
  • NEWS
    • Auto Retail News
    • Digital Editions
    • Press Releases
    • Submit Editorial
    • Subscribe

DealerPoint: May 21-23, 2024
Conference & Expo:
October 8-10, 2024

REGISTER NOW EXHIBIT / INQUIRE
Q

NEWS:

Everyone
September 13, 2011

kbb.com: Japanese, Domestic Vehicle Incentive Battle Imminent; Car Shoppers to Benefit

Posts:
Everyone
September 13, 2011

kbb.com: Japanese, Domestic Vehicle Incentive Battle Imminent; Car Shoppers to Benefit

IRVINE, Calif. — Kelley Blue Book, the leading provider of new car and used car information, today reports that it anticipates strong incentives late in the year in the form of cash and attractive lease offerings, as covered in the company’s Blue Book Market Report for September 2011.  As the Japanese replenish inventory and begin to throw cash on the hood, expect to see the domestics follow suit, setting off an incentive battle.

Prior to the earthquake, Japanese brands were consistently capturing close to 40 percent of all United States sales, but since April they have seen their monthly share of sales dwindle to nearly 30 percent.  As Japanese production facilities return to full capacity in the near future, expect to see strong incentive support from these manufacturers as they aggressively try to recapture lost market share.

While Hyundai and Kia sales are strong, neither currently have high enough inventory levels to support incentive programs big enough to compete with the Japanese brands.  Neither of the Korean brands have the production capacity to satisfy current demand for their products as evidenced by their ultra-lean 19-day supply of vehicles currently available to consumers.  Under these conditions, consumers in the market for a new vehicle will likely find plenty of attractive deals in the latter part of the fourth quarter.

“While the earthquake in Japan halted sales recovery earlier this year, the anticipated push by the Japanese to recapture market share will likely help sales later this year,” said Alec Gutierrez, manager of vehicle valuation for Kelley Blue Book.  “Since May, Japanese brands have given up considerable market share to both domestic and Korean manufacturers.”

In addition to increased incentive spending during the fourth quarter, many highly anticipated redesigns will be hitting U.S. shores for the first time.  The 2012 Toyota Camry, Honda CR-V and Honda Civic are but a few of the major redesigns either just hitting dealerships or expected to hit dealerships later this year.  Typically, Japanese redesigns are strong sellers; however, they are entering today’s competitive market.  In the compact segment, the Civic will face strong competition from the all-new 2012 Ford Focus, new for 2011 Hyundai Elantra and the hot-selling Chevrolet Cruze.  In fact, the Cruze has been the best performing seller in the segment for the past several months and on a year-to-date basis the Cruze only trails the Corolla by slightly more than 1,000 units for outright segment leadership.  While increased supplies, lucrative incentives and new product should certainly help the Japanese improve their sales figures, they are facing an aggressive market.

The monthly Blue Book Market Report explores the state of the automotive industry by analyzing Kelley Blue Book® Wholesale Lending Values.  The report also discusses developments in residual values and trends in monthly used-car shopper activity on kbb.com.  If you would like to subscribe to the monthly Blue Book Market Report, please e-mail pr@kbb.com.

For more information and news from Kelley Blue Book’s kbb.com, visit www.kbb.com/media/, follow us on Twitter at www.twitter.com/kelleybluebook (or @kelleybluebook), or like our page on Facebook at www.facebook.com/kbb.

About Kelley Blue Book (www.kbb.com)

Founded in 1926, Kelley Blue Book, The Trusted Resource®, is the only vehicle valuation and information source trusted and relied upon by both consumers and the industry.  Each week the company provides the most market-reflective values in the industry on its top-rated website www.kbb.com, including its famous Blue Book® Trade-In and Retail Values and Fair Purchase Price, which reports what others are paying for new cars this week.  The company also provides vehicle pricing and values through various products and services available to car dealers, auto manufacturers, finance and insurance companies as well as governmental agencies.  Kbb.com provides consumer pricing and information on minivans, pickup-trucks, cars, hybrids and SUVs.  Kelley Blue Book Co. Inc. is a wholly owned subsidiary of AutoTrader.com.

Everyone

SHARE

Share on Email
Share on Linkedin
Share on Facebook
Share on Pinterest
Share on Twitter
← Previous Article Next Article →
Posts Marketing & Advertising

7 Strategies for Car Dealers to Run Event Marketing

Event Marketing is a strategy used by car dealerships to promote their vehicles, services, and overall brand through organized events. These events can range from new car inventory, exclusive test drives, and service workshops to participation in lar
Posts Dealer/GM News

CarGurus Deal Acquiring CarOffer is Completed; Zach Hallowell Named CEO

CarGurus completed the acquisition of CarOffer, purchasing the remaining minority equity interests for $75 million on Dec. 4. CarGurus acquired a 51% interest in CarOffer in January 2021 and announced plans last month to accelerate the purchase of th
Posts Marketing & Advertising

7 Strategies for Car Dealers to Run Event Marketing

Event Marketing is a strategy used by car dealerships to promote their vehicles, services, and overall brand through organized events. These events can range from new car inventory, exclusive test drives, and service workshops to participation in lar
Posts Industry Press Releases

Step One Automotive Group Announces 25 Days of Giving Across Alabama, Florida, and Georgia

Step One Automotive Group will dedicate 25 Days of Giving within the communities they serve in Alabama, Florida, and Georgia. Throughout the month, expect to see Step One Automotive Group team members spreading holiday cheer to those in need. “
Posts Dealer/GM News

Haig Report Finds Mixed Results In Dealership Deals–More Deals, Lower Prices

While values declined slightly this year, 2023 is on pace to be the third most active year for the selling of U.S auto dealerships. That is one of the main takeaways of the Haig Report for third quarter 2023 that stated at least 385 rooftops have tra
Posts Dealer/GM News

New Research Reveals Age and Gender Differences in Vehicle Add-On Purchases

When consumers purchase cars at an auto dealer, they often buy supplemental products and services called voluntary protection products (VPPs). These provide additional coverage and protection for certain vehicle components or services not covered by
Posts Dealer/GM News

Nearly 4,000 Car Dealers Ask President Biden to Slow Down EV Push

Car dealers are asking President Joe Biden to “tap the brakes” in his administration’s electric vehicle (EV) push. A total of 3,882 franchised car dealers the U.S., calling themselves the EV Voice of the Customer, published the letter on No
Posts Data & Analytics

Digital Retailing Continues to Grow at Auto Dealerships

A recent report found car dealers offering consumers the ability to do a deal online has grown to 40% in the last year—but an urgent need to cutdown on repetitive steps happening in the showroom. Nearly all car dealers currently using digital retai

NEWSLETTER

SUBSCRIBE

DEALER MAGAZINE

Dealer Magazine March/April 2023 Issue Featuring an Interview with NADA 2023 Chairman
MAGAZINE

Explore All Our Brands

FOLLOW US ON

  • Follow
  • Follow
  • Follow
  • Follow
  • Follow
© 2023 Emerald X, LLC. All Rights Reserved.

ABOUT    CAREERS    AUTHORIZED SERVICE PROVIDERS   DO NOT SELL MY PERSONAL INFORMATION   TERMS OF USE   PRIVACY POLICY