Ad Standards

Transcription

Ad Standards

Inside this issue:
Dealership Showcase
Richfield Bloomington Honda
BBB
Ad Standards
Ready for
E
R
Spring 2016
www.mada.org
Volume 12 • Issue 3
IN THIS ISSUE
RE
12
Cover:
BBB Ad
Standards
Ready for
Relaunch
38
Dealership
Showcase:
Richfield
Bloomington
Honda
Table of Contents
GMADA Minutes
Twin Cities Auto Show Highlights...............6
Twin Cities Auto Show is Growing..............8
Opening Night Party.................................10
2016 Executive Committee
President
Mike Saxon, Inver Grove Ford Lincoln
President Elect
Rick Jensen, Jensen Motors, Inc.
Treasurer
Michael Stanzak, Key Cadillac, Inc.
Secretary
Peter Kolar, Kolar Toyota Scion
Immediate Past President
Greg House, House Chevrolet Company
Executive Vice President
Scott Lambert
EDITORIAL STAFF
Scott Lambert, Publisher
Amber Backhaus, Senior Editor
Ginger Lemke, Editor
On the Cover
BBB Ad Standards Ready For
Relaunch..................................................12
Dealers Are Good Neighbors
Good News...............................................19
Council Minutes
Twin Cities Auto Show Display and
Reception.................................................34
MADA News
We’re Sorry!..............................................37
Minnesota Auto Outlook
Comprehensive New & Used Vehicle
Information on Minnesota’s Automotive
Market.......................................................21
Dealership Showcase
Richfield Bloomington Honda...................38
PHOTOGRAPHY
Jim Mims, Mims Photography
SUBSCRIPTIONS
Minnesota Dealer Outlook is an official
Minnesota Auto Dealer Association
publication, provided Quarterly to Members
of the Minnesota Automobile
Dealers Association.
SUBMIT ADDRESS CHANGES TO:
Minnesota Automobile Dealers Association
200 Lothenbach Avenue
West St. Paul, MN 55118-3505
Phone: 651-291-2400 • Fax: 651-291-2894
Toll Free: 1-800-652-9029
Email: [email protected]
ADVERTISING SALES:
Ginger Lemke
Phone: 651-291-2400
www.mada.org
On the Cover:
MADA Executive Vice President Scott
Lambert and General Counsel Jim
Schutjer are “aghast” and “horrified” by the
new Steve Sack cartoon in the Star Tribune.
There’s also an article on page 12 about
dealer advertising that you should read.
Data Source Information for Minnesota
Auto Outlook on pages 21 - 33.
Exclusive source for new vehicle
registration data presented in Minnesota
Auto Outlook is R. L. Polk and Company, a
leader in providing detailed new and used
vehicle sales and registration statistics.
Data is available on a timely basis on the
internet.
For more information visit www.polk.com
Advertising Directory
3M.................................................................... 35
Blue Cross Blue Shield MN............................. 11
CliftonLarsonAllen..................................... 36
CVR............................................................. 5
Greg Johnson, LLC................................... 11
JM&A Group.............................................. 20
LED Supply Co.......................................... 27
LubeTech................................................... 35
MADA Business Cards.............................. 24
MADA Choose Your News......................... 37
MADA Direct Mail........................................ 4
MADA Endorsed Services and Vendors...... 4
Protective.....................................Back Cover
Reliable Plus.............................................. 27
Schmit Towing........................................... 27
SuperAmerica............................................ 31
StarTribune.......................Back Inside Cover
WIPFLI LLP......................Inside Front Cover
3
MADA Endorsed Services & Vendors
Check Guarantee/Credit Card Processing
Certegy / FIS
Collections
Springer Collections
Computerized Vehicle Registration
CVR
Dealer Bond Program
Ensure Agency
Dealership Marketing
Visible Customer
Disability Income Insurance & Section 125 Cafeteria Plans
American Fidelity Assurance
F&I Products
Protective
Fleet Fueling Program
SuperAmerica
Group Health Insurance
Blue Cross Blue Shield of MN
Delta Dental
ReliaStar Life
Hole-In-One Insurance
Hole-In-One-USA
Call MADA for all of
your Direct Mail Needs.
651-291-2400 • 800-652-9029
Lighting
LED Supply Company
Office Supplies
Innovative Office Solutions
OSHA, EPA & DOT Compliance/Training
ComplyNet Corporation
Pre-Paid Legal, Jim Gavin
Identity Theft Shield & Pre-Paid Legal Services
Uniforms and Linen Services
AmeriPride Linen and Apparel Services
Workers Compensation
Ensure Agency
4
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COMIC CORNER
I think I’ll do
something nice for
my customers...
like CVR
Benefits of CVR:
• Increase CSI scores
• Accurate fees
• Flexibility with plate
assignments
• Increased
revenue
Contact MADA
today to get
in touch
with CVR.
www.mada.org
5
MINUTES
2016 Twin Cities Auto
Show Highlights
The 2016 Twin Cities Auto Show was bigger
than it has been in years and laid the
groundwork for continued growth in the
future.
6
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www.mada.org
7
MINUTES
Twin Cities Auto Show is GROWING
Here are some of the new and featured attractions at this year’s event that contributed to the show’s growth:
Toyota Truck Season
Toyota sponsored the all-new Seasons display on the second level of
the convention center.
The goal was to show SUVs and trucks in ways that MN buyers want
to use them.
Campers on SUVs and trucks towing boats
were just a few practical and exciting ways
the Toyota vehicles were displayed. Bears,
moose and a lot of trees, provided by
Bass Pro Shops, helped make this area a
destination at the show.
Classic Car Walk
More than 25 classic
vehicles from 1904
– 1973 made this a
must-see attraction at
the event. Sponsored
by WCCO.
Special thanks to Randy Guyer and Jim Davis of the 10,000 Lakes Concours d’Elegance
and Brian Warhol of the GSTA Rod & Custom Spectacular Car Show for their assistance
in contacting and securing fellow collector car friends.
The winner of the Favorite Classic
Car contest that was voted on by
show-goers was the 1965 Ford
Mustang Convertible owned by
Gary and Marie Simek
SuperAmerica
New marketing at all SA locations, free
Icees and a brand new fuel pumper made
SuperAmerica, the show’s title sponsor, a
terrific partner. The Twin Cities Auto Show
looks forward to expanding our partnership
through the next four years of our exclusive
sponsorship agreement.
8
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Electric Room
Sponsored by Great River
Energy, the Electric Room was
a great success. There were
a variety of great vehicles
from Ford, Volvo, Nissan, BMW, Cadillac, Porsche and
Volkswagen, and EV owners were onsite every day to
answer questions and educate buyers on this growing
market segment. A 12-foot
video monitor, roaming
robot and Porsche 918 were
highlights of the room.
Military Appreciation Night
The second annual Military
Appreciation Night was well
attended. The event was
sponsored by SuperAmerica
which allowed more than
300 military professionals
to receive complimentary admission to the event.
Hundreds watched on as the American Legion and
VFW honor guards kicked off the ceremony followed by
music performed by the 34th Infantry “Red Bull” Band
and National Guard speaker.
Luxury Lane
It was a big decision to move
the Twin Cities Auto Show
spokeswoman to Luxury Lane
and to fill the space with
video and sound. Both investments paid off and buyers
flocked to this space on
the main floor. Minnesota
Monthly was the sponsor.
www.mada.org
Celebrities and Special Appearances
Thousands attended the Show to see Disney Star
Olivia Holt, Timberwolves point guard Ricky Rubio and
members of the St. Paul Saints.
9
MINUTES
TCAS Opening Night Party
It was a perfect evening for enjoying a night on the
town. Guests at the opening night party for the
Twin Cities Auto Show gathered at the Hyatt to enjoy
wonderful hors d’oeuvres and music and catch up
with old friends.
10
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better together
Welcome to Blue Cross and Blue Shield of Minnesota. Together, the
Minnesota Automobile Dealers Association and Blue Cross are offering
you and your employees:
➜➜
More choice – The largest network of providers in the state delivers
value and preserves provider choice
➜➜
Better value – More benefit plan options make it easy to choose a plan
that fits your health care needs and your budget
➜➜
Bigger savings – Working with providers, Blue Cross rewards quality
of care to deliver you bigger savings
➜➜
Added convenience – From retail clinics to online care options, we
make it convenient for your employees to get the care they need
Find out how to
accelerate your
health care savings.
Contact your Blue Cross
sales representative or
call MADA Insurance at
(651) 291-2400 or
1-800-652-9029.
Blue Cross® and Blue Shield® of Minnesota and Blue Plus® are nonprofit independent licensees of the Blue Cross and Blue Shield Association.
www.mada.org
11
BBB
Ad Standards
Ready for
RE
Deceptive and misleading car
ads are bad. We all agree on that.
They’re bad for consumers who listen
for clear messages about features and
price only to have them drowned out by the
noise and din of false claims. They’re bad for dealers
who spend hundreds of thousands of advertising dollars each
year to compete fairly and honestly only to be understandably enraged by
misleading competitors’ ads that are stealing their customers away. They’re bad for the
government which has far better things to do than sue dealers for deceptive advertising.
They’re bad for MADA which “loves” all of its members equally, but sometimes ends up
taking the lose-lose call from an extremely frustrated member complaining bitterly about the
advertising of another.
12
www.mada.org
Jim Schutjer
General Counsel
There is a solution. It worked before and will work again. It’s us. Thirty years
ago there was an advertising crisis. The Minnesota Attorney General was suing
dealers over misleading “push, drag, pull” and “dealer prep” ads demanding large
civil penalties. Bad press abounded. Twin Cities dealers Jim Lupient and Bill Whitaker
were early leaders envisioning and then creating an advisory group of dealers - the
“Automotive Steering Committee” - to establish automobile advertising standards
to guide Minnesota dealers away from deceptive and misleading ads. The Steering
Committee also forged a partnership with Better Business Bureau of Minnesota and
North Dakota (BBB) to serve as an independent
third party to monitor dealer advertising,
educate dealers about lawful advertising and to
challenge misleading ads and get them stopped.
...on the whole, dealer
advertising here in Minnesota is
as fair and truthful as anywhere
in the United States.
The Minnesota Automotive Steering Committee
has met on an “as needed” basis since the mid
1980’s. BBB staff has monitored countless ads and
challenged thousands. Sure, there have been problems. But on the whole, dealer
advertising here in Minnesota is as fair and truthful as anywhere in the United States.
The Federal Trade Commission has been busy. Automobile advertising
enforcement actions were relatively rare around the country for nearly thirty
years. The FTC changed that in 2013 when it began launching round after round of
lawsuits against dealers across the country. Enforcement efforts included both civil
and criminal charges of deceptive advertising, automotive loan application fraud,
odometer fraud, deceptive add-on fees, and deceptive marketing of car title loans.
The Agency claims a total of 187 enforcement actions against dealers in the United
States. Six more recent cases include $2.6 million in monetary judgments. “For most
people, buying a car is one of the largest purchases they’ll make,” said Jessica Rich,
Director of the FTC’s Bureau of Consumer Protection. “Car ads must be truthful, loan
terms must be clear, and dealer practices must be honest. That’s why our partners
are working together to crack down on deceptive marketing about car sales, leasing
and financing.”
www.mada.org
13
BBB ad Standards... (cont... )
in consumer credit transactions, in printed publications, including in the Las Vegas ReviewJournal newspaper. Exhibit A is an example of a full-page advertisement that Respondent ran in
the Las Vegas Review-Journal. Respondent’s advertisements in other editions of the Las Vegas
Review-Journal contain substantially similar statements and depictions.
Planet Nissan action is a game changer. On June 29, 2015, the Federal Trade
7.
Respondent has also advertised consumer leases and purchases of motor vehicles, or
Commission
announced settlement of deceptive advertising claims against two Las
promoted credit sales and other extensions of closed-end credit in consumer credit transactions,
Vegas
dealerships.
Planet
Planethttps://www.facebook.com/planetnissan.
Nissan were charged with running ads
on the Internet, including
on Hyundai
its page onand
Facebook,
that
misrepresented
purchase
and lease
offers.onMany
of the FTC’s
deceptive
Exhibit
B is an examplevehicle
of one such
advertisement
appearing
Respondent’s
page on
Facebook. claims against the Planet dealerships were similar to those alleged in
advertising
other cases brought against dealerships nationwide since 2013. The FTC charged that
“NOW” Prices
the dealerships misrepresented down
payments and confused purchase and lease
offers.
8.
Respondent’s advertisements, including but not limited to the advertisement attached as
Exhibit A, feature images depicting motor vehicles for purchase with a prominent “NOW” price
However,
one
of theFor
deceptive
is different.
It as
involves
pricing.
next to each
vehicle.
example, ad
theclaims
advertisement
attached
Exhibitconditional
A features a 2015
The
FTCVersa
found
the following
Planet
Nissan ad deceptive:
Nissan
S with
a “NOW” price
of $9,977:
(Disclaimer reads in part: “$1000 Trade Assistance and $600 VPP/
(from Exhibit A, print advertisement, Las Vegas Review-Journal ((Nov. 2014))
Active Military discount and $600 College Grad discount”)
9.
Beneath the prominent statement that consumers can obtain the vehicle for “$9,977,” the
The
rationale states
for the
deception
laid2 out
in the
FTCprice,
complaint
is thatAssistance
the vehicle
advertisement
in small
print: claim
“#11155,
or more
at this
$1,000 Trade
VPP/Active
Military
and $600
College
Grad discount.”
Thus, the
isand
not$600
“generally
available
todiscount
consumers”
at the
“prominently
advertised
price.” The
prominently
price with
is notcomments
generally available
consumers.
a consumer
can
FTC
signaledadvertised
this position
to the to
press
earlier In
in fact,
2015.
According
qualify
for
the
advertised
price
only
if
the
consumer
meets
certain
requirements
for
discounts
to Jessica Rich, “Dealerships can avoid violating the law by simply posting accurateor
incentives, such as being a recent college graduate, being a member of the military, or trading in
prices
available to all consumers and avoiding fine print… Dealers think that if they
a vehicle.
put the real price of something in really fine print, that’s not deceptive. That is
deceptive, and it violates the law.”
MADA Steering Committee launches new standard. In response to the
2
Federal Trade Commission enforcement action
in Planet Nissan, the Automobile
Steering Committee adopted a strong, clear and easy to understand new standard
governing conditional pricing and conditional payments.
14
www.mada.org
The heart and soul of the new conditional pricing standard is contained in the first paragraph of new
Standard 3:
“The most prominent reference to an advertised price or savings must be one
available to all customers without condition.”
ACCEPTABLE ad
UNacceptable ad
This new language is simple, direct and takes the view that when a reasonable consumer looks at an ad,
they believe that the price most likely to catch their eye is an unconditional price - they should be able to
come in, write a check and take delivery.
The second paragraph of new Standard 3 quoted below is the corollary provision which addresses
payment ads.
“The most prominent reference to an advertised monthly finance or lease
payment must be the amount calculated from the vehicle price available to all
customers without condition other than being creditworthy and entering into
the finance or lease transaction.”
ACCEPTABLE ad
UNacceptable ad
Under this new language, the most prominent payment reference must not be conditional except
to require the customer to enter into the credit or lease transaction advertised. Because the ad’s
assumption (and a customer’s reasonable expectation) is that the customer must enter into the
advertised transaction in order to take advantage of the offer, the most prominent payment may take
into account finance incentives associated with the credit or lease offer but no other.
www.mada.org
15
The Steering Committee adopted the following timetable for advertisers to discontinue or fix
ads once they have been notified that the ad violates the standards.
Guidelines to Discontinue or Modify Advertising (Time in Business Days)
Medium
Print
Web Banner Ads
Electronic Signage
Radio / TV
Website Formatting / Inventory Listings
Poster Billboards
Permitted Days to Discontinue
3
3
3
3
5
14
Permitted Days to Modify
3
3
3
3
7
30
Relaunching the process. Adopting the new standard is very important.
However, it’s destined to fizzle out without a renewed commitment from dealers and
Better Business Bureau to make this very important program work.
For its part, BBB has recommended and agreed to specific timelines for addressing
competitor concerns and insisting on changes to faulty ads.
•When a dealer contacts BBB with concerns about competitor advertising, BBB
staff will contact the initiating dealer within one business day to confirm it will
take action, or explain why the advertising does not violate standards. BBB staff
will also confirm the dealer’s request for anonymity. If the initiating dealer wishes
to be party to the advertising dealer’s response, it will be offered the option of
filing a formal complaint at this time.
•Within one business day of this communication, BBB staff will contact the
advertising dealer to request substantiation, modification, or discontinuation of
the advertising in question.
•If modification/discontinuation is necessary:
•The advertising dealer will be asked to commit to a timeframe for making
changes, with BBB using media-specific guidelines (above chart) to gauge
whether the commitment is reasonable.
•If modifications are not made within the committed timeframe, BBB will call
the dealer principal and send a certified letter.
•If modifications are not completed following this phone call/certified letter,
BBB will issue a ‘2nd Strike’ under its ‘Three Strikes Policy’ (see sidebar) by
notifying MADA, who will in turn notify its Steering Committee.
•If the dealer still fails to complete modifications, BBB will issue a ‘3rd Strike,’
at which point it will issue a press release, update the dealer’s BBB Business
Review (may impact rating, accreditation status), and ask MADA to highlight
the decision in its newsletter.
16
www.mada.org
For its part, the Steering Committee has agreed to semi-annual meetings and a more
active role in demanding compliance from dealers who snub the program and run
unlawful ads.
Complacency is a bad idea. So far, Minnesota dealers have escaped FTC
enforcement actions. That’s great and Minnesota dealers should be proud of their
accomplishments. However, the Federal enforcement agencies and their state
enforcement counterparts have waded deep into our business. Their staff, with the
experience and knowledge gleaned from hundreds of enforcement actions, appear
able and willing to continue challenging dealers and enforcing laws against misleading
advertising and abusive business practices.
Why partner with Better Business Bureau?
Better Business Bureau (BBB) of Minnesota and North Dakota is proud to be known
as “the first BBB.” It’s a non-profit organization that was founded by ethical business
owners in the Twin Cities in 1912 who were interested in advancing marketplace
trust between buyers and sellers. Today, more than 6,700 locally Accredited
Businesses support that mission.
BBB’s high standards for identifying trustworthy businesses that operate with
integrity gives it additional clout with regulators. Just as Minnesota’s Attorney
General declined to pursue additional regulatory oversight of Minnesota dealer’s
due to the launch of the Advertising Standards Program in the 1980’s, MADA
believes it’s no coincidence that the Federal Trade Commission has skipped over Minnesota when
deciding which dealers to sue for misleading
THE CONSUMER JOURNEY
advertising violations.
HOW INFORMED CONSUMERS MAKE PURCHASING DECISIONS
Beyond a high level of respect and credibility
from businesses and regulators, the public has
great esteem for BBB. In 2015, Minnesotans
made over 7.2 million inquiries about local
businesses with BBB. That’s likely because
81% of the public trusts BBB, compared to
58% who have confidence in Angie’s List and
51% who trust Yelp.
familar with the BBB
are more likely to
purchase when a
business displays
BBB’s Accreditation
Seal
familiar with the
BBB Ratings are
more likely to
purchase if a
business has a high
BBB letter grade
81%
BBB
Angie’s List
Yelp
 How Trusted is
BBB Compared to
Other Review Sites?
Consumers
consult the
BBB before
utilizing 
Online
Retailers
Retail
Stores
Auto
Dealerships
$
MADA is proud to partner with BBB to
demonstrate our member’s commitment
to ethical advertising and selling practices,
reducing consumer complaints and improving
the overall reputation of the industry.
Contractors Financial Salons
Services
 What the accreditation seal symbolizes
to consumers
1
2
3
4
5
Honesty
QUALITY
APPROVAL
Good
Business
Standing
Reliable
Health
Clubs
Medical
Care
®
150801
www.mada.org
83%
84%
Consumers Base Their
Purchasing Decisions
on BBB® Trustmarks 
Travel
Services
Visit bbb.org and
start your next
consumer journey
with trust.
Source: Nielsen 2014/2015
17
The “Teeth” behind Minnesota’s Automotive Advertising Standards
Although the Automotive Advertising Standards program is based on self-regulation, there are
consequences for dealers who decline to participate in the process. The “teeth” can be found in BBB’s
“Three Strike Policy,” which was developed in conjunction with MADA to ensure a consistency in responses
to advertising concerns and violations. Dealers who choose not to respond to complaints will have their
names communicated to the members of the Steering Committee. Continued disregard of the complaint
and a refusal to act in good faith could result in BBB issuing a press release highlighting the details of the
deceptive advertising, as well as a feature on the delinquent dealer in MADA’s member newsletter.
The “Three Strikes” are defined as follows:
1st Strike: At their discretion, BBB will determine which issues are of a certain level of severity or
are occurring at a certain level of frequency that special attention be given a dealership. When BBB
first notices the pattern and/or a nonresponse by an automobile dealer, defined by frequent contact
for not adhering to the Ad Standards, BBB Code of Advertising or has disseminated a particular
advertisement that is of great concern:
• BBB will initiate informal contact with the dealer, the general manager and/or other dealership
staff as appropriate, providing support and education to the dealership. BBB will closely monitor the
dealership’s advertising, in all media for evidence of changes in the advertising.
2nd Strike: The 2nd Strike trigger will be if the dealership does not respond to BBB’s contact by
modifying their advertising or declines to work with BBB informally.
• The dealership will be notified by BBB of the requirement that they will need to send all of their
ads (print, electronic and broadcast) to BBB’s Prior-to-Publication (PTP) for a certain time period
(discretion of BBB) until which time BBB is comfortable that the dealership has a proper grasp of
the ad standards and is operating in good faith as they develop or approve promotions for their
dealership. The 2nd strike letter will be copied to the owner of the dealership – not just to the GM or
complaint contact. This letter will be sent via certified mail.
Additional Action:
• Dealers who are at the 2nd strike point- dealership names will be communicated to MADA, who will
in turn notify the members of the steering committee.
3rd Strike: If dealership refuses to act in good faith by participating in the PTP process and/or does
not respond to contacts by BBB, the following will occur:
• BBB will issue a press release.
• BBB will include details of the matter in BBB public report on the dealership (which may impact BBB
accreditation status and BBB grade.)
• MADA will include/spotlight BBB decision in the MADA newsletter.
18
www.mada.org
Send
YOUR good news
to Sandy at
[email protected]
Dealers Are Good Neighbors
MADA salutes Minnesota new vehicle dealerships and dealership employees
who make their communities a better place to live.
Supporting Local Charities
Marthaler Chevrolet of Glenwood is pleased to
be the primary sponsor for the new home of the
Minnewaska Lakers baseball stadium, Marthaler Field.
Construction on the new ballpark is slated to begin this
summer, with completion expected in the spring of
2017.
The CPR training program at Walker-Hackensack-Akeley
School was greatly enhanced recently when Walker
Ford, in partnership with the National Automobile
Dealers Association (NADA) Charitable Foundation,
presented four “Little Anne” Resusci-Annie CPR Units to
the school.
Walker Ford
President Josh
Loney presented
four Little Anne’s to
WHA Nurse Sandy
Munson. The units
will be used to
train students, staff
and community
members in CPR.
Lake Country Chevrolet joined Warroad Youth
Hockey to provide players and coaches with hockey
equipment kits that include hockey pucks, t-shirts and
knit caps, and a sponsorship check for $500.
Hibbing Chrysler Center made a cash donation
for every car sold in January to the United Way of
Northeastern Minnesota’s LIVE UNITED Crisis Fund. The
fund helps displaced workers most impacted by job loss
on the Iron Range.
Asa Auto Plaza, Jackson, teamed up with its
Each November, Marthaler Chevrolet of
Worthington looks forward to being a contributor to the
Nobles County Community Christmas Basket Program.
They donate $20 per vehicle sold to collect toys, clothes
and food to help make Christmas a little more merry for
area families. A total of $1680 was raised in 2015.
www.mada.org
customers to give thousands of dollars back to local
charities during the holidays. For each car sale, a
percentage of the proceeds were given back to the
community. A total of $4500 was raised!
19
There Is Power In Numbers.
Let’s Put That Power To The Test..
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Minnesota presence just got a lot more powerful.
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dedicated exclusively to our valued Minnesota
dealer customers. That’s seven times the attention,
manpower and opportunity to boost your store’s
F&I performance and profitability.
LET’S TALK!
Mark McGoldrick, Division Manager
(571) 216-2511
[email protected]
Michael Snyder, Region Manager
(410) 446-6655
[email protected]
Contact us today to schedule a preview of what
our team can do to improve your dealerships
performace.
A division of
JM Family is a diversified automotive company ranked on the FORTUNE® 100 Best Companies to Work For®
list, its seventeenth consecutive year. © 2015 Jim Moran and Associates, Inc.
20
www.mada.org
FORECAST
FORECAST
Small
SmallIncrease
IncreasePredicted
PredictedforforState
StateMarket
Marketinin2016
2016
New
vehicle
sales
areare
expected
to to
remain
at at
strong
levels
forfor
several
years
New
vehicle
sales
expected
remain
strong
levels
several
years
Comprehensive Information on the
TheThe
Minnesota
new
vehicle
market
stumbled
a bit
in 2015,
withwith
registrations
declining
slightly
from
2014,
butbut
Minnesota
new
vehicle
market
stumbled
a bit
in 2015,
registrations
declining
slightly
from
2014,
Minnesota
Automotive
Market
thethe
total
still
exceeded
211,000
units.
And
the
market
has
come
a
long
way
from
the
depths
of
the
2009
total still exceeded 211,000 units. And the market has come a long way from the depths of the 2009
MINNESOTA AUTO OUTLOOK
recession.
In that
year,
thethe
market
fell fell
to 127,662
units
andand
recovered
to 211,079
in 2015.
That’s
a 65%
recession.
In that
year,
market
to 127,662
units
recovered
to 211,079
in 2015.
That’s
a 65%
FORECAST
increase
over
the
six
year
period!
With
sales
reaching
such
high
levels,
there
are
concerns
that
the
market
hashas
increase over the six year period! With sales reaching such high levels, there are concerns that the market
peaked.
And
based
solely
on
the
primary
predictors
of
core
demand
(i.e.,
the
cyclical
nature
of
sales
and
thethe
peaked. And based solely on the primary predictors of core demand (i.e., the cyclical nature of sales and
release
of
pent-up
demand)
there
are
reasons
to
believe
that
sales
will
soon
begin
a
prolonged
cyclical
release
pent-up
demand) to
there
are at
reasons
to believe
that sales
will soon begin a prolonged cyclical
New
vehicleof
sales
are expected
remain
strong levels
for several
years
downturn.
downturn.
Small Increase Predicted for State Market in 2016
The Minnesota new vehicle market stumbled a bit in 2015, with registrations declining slightly from 2014, but the total still
ButBut
predicting
thethe
course
of new
vehicle
sales is not
always
as as
straightforward
as as
it seems.
Despite thethe
predicting
course
new
vehicle
not
always
straightforward
it seems.
exceeded
211,000 units.
And the of
market
has
comesales
a longisway
from
the depths
of the 2009 recession.
In thatDespite
year, the market
concerns
mentioned
above,
there
areare
some
compelling
reasons
to believe
thatthat
thethe
market
stillstill
hashas
some
gas
concerns
mentioned
above,
there
some
compelling
reasons
to
believe
market
some
fell
127,662
units
and
recoveredarray
to 211,079
in 2015.safety
That’sfeatures
a 65% increase
over the six-year
period!
With
salesgas
reaching
leftto
in
the
tank.
The
impressive
of
advanced
and
infotainment
offerings
in
new
vehicles
left in the tank. The impressive array of advanced safety features and infotainment offerings in new vehicles
such
high
levels,
there
are
concerns
that
the
market
has
peaked.
And
based
solely
on
the
primary
predictors
of
core
demand
cancan
make
even
three
year
oldold
cars
seem
outdated.
This
cancan
provide
strong
motivation
for for
consumers
to enter
make
even
three
year
cars
seem
outdated.
This
provide
strong
motivation
consumers
to enter
(i.e.,
the
cyclical
nature
of sales
the release
of pent-up
demand)
therestated
are
reasons
to believetothat
will
begin a
thethe
new
vehicle
market.
In addition,
manufacturers
have
generally
a commitment
hold
thethe
linesoon
on on
new
vehicle
market.
Inand
addition,
manufacturers
have
generally
stated
a commitment
to sales
hold
line
incentives
and
emphasize
profitability
over
sales
volume.
However,
if
demand
starts
to
soften,
the
battle
for
prolonged
cyclical
downturn.
incentives and emphasize profitability over sales volume. However, if demand starts to soften, the battle for
market
share
could
result
in an
opening
of the
incentives
spigot,
which
would
prolong
thethe
sales
rebound.
Most
market
share
could
result
in an
opening
of the
incentives
spigot,
which
would
prolong
sales
rebound.
Most
likely
scenario
thethe
state
market
is slow
growth
year,
perhaps
in 2017
as as
well,
withwith
moderate
easing
But
predicting
theforcourse
ofstate
new
vehicle
isgrowth
not this
always
asand
straightforward
as
it seems.
Despite
the
concerns
mentioned
likely
scenario
for
market
issales
slow
this
year,
and
perhaps
in 2017
well,
moderate
easing
to follow.
above,
there
are
some
compelling
reasons
to
believe
that
the
market
still
has
some
gas
left
in
the
tank.
The
impressive
array
to follow.
of advanced safety features and infotainment offerings in new vehicles can make even three-year-old cars seem outdated.
Key trends
in thethe
Minnesota
new vehicle
market:
Minnesota
vehicle
market:
ThisKey
can trends
provideinstrong
motivationnew
for consumers
to enter the new vehicle market. In addition, manufacturers have generally
stated• aThe
commitment
hold the line
on incentives
and
emphasize
profitability over sales volume. However, if demand starts to
market
istopredicted
to increase
by by
about
1%
in 2016.
• The
market
is predicted
to increase
about
1%
in 2016.
soften, the battle for market share could result in an opening of the incentives spigot, which would prolong the sales rebound.
State
light
truck
market
share
increased
from
63.5%
during
2014
to in
66.8%
last
year.
Most •likely
scenario
fortruck
the
state
market
isincreased
slow growth
this63.5%
year,
and
perhaps
as last
well,
with moderate easing to follow.
• State
light
market
share
from
during
2014
to2017
66.8%
year.
• Domestic
brand
registrations
were
up up
slightly
in 2015.
Key trends
in the Minnesota
new vehicle
market:
• Domestic
brand
registrations
were
slightly
in 2015.
The market
is predicted
tomarket
increase
by about
1% in in
2016. down from 2.6% in 2014.
••Hybrid
andand
electric
vehicle
share
waswas
1.9%
• Hybrid
electric
vehicle
market
share
1.9% 2015,
in 2015, down from 2.6% in 2014.
• State light truck market share increased from 63.5% during 2014 to 66.8% last year.
• SUVs
have
gained
ground,
withwith
market
share
increasing
1.61.6
points
from
2014.
• SUVs
have
gained
ground,
market
share
increasing
points
from
2014.
• Domestic brand registrations were up slightly in 2015.
• Hybrid and electric vehicle market share was 1.9% in 2015, down from 2.6% in 2014.
• SUVs have gained ground, with market share increasing 1.6 points from 2014.
Market
Review
Market
Review
Market Review
Minnesota
Brand
Market
Share
- 2015
Minnesota
Brand
Market
Share
- 2015
Minnesota Brand Market Share - 2015
Ford, 17.5%
Ford, 17.5%
Others, 21.4%
Others, 21.4%
TOTAL
TOTAL
Kia, 3.3%
Kia, 3.3%
Chevrolet, 16.3%
Chevrolet, 16.3%
Ram, 3.7%
Ram, 3.7%
GMC, 4.2%
GMC, 4.2%
Jeep, 4.6%
Jeep, 4.6%
Subaru, 4.9%
Subaru, 4.9%
Nissan, 4.9% Honda, 8.3%
Nissan, 4.9% Honda, 8.3%
Toyota, 11.0%
Toyota, 11.0%
Source for historical data: IHS Automotive.
www.mada.org
2014
2015
% Chg. Mkt. Share
2014
2015
% Chg. Mkt. Share
Annual
Annual '14 to '15
2015
Annual
Annual '14 to '15
2015
213,557
211,079
-1.2%
213,557
211,079
-1.2%
Car
Car
Light Truck
Light Truck
77,875
70,157
-9.9%
77,875
70,157
-9.9%
135,682
140,922
3.9%
135,682
140,922
3.9%
33.2%
33.2%
66.8%
66.8%
Domestic**
Domestic**
European
European
Japanese
Japanese
Korean
Korean
112,747
113,592
0.7%
112,747
113,592
0.7%
13,088
12,553
-4.1%
13,088
12,553
-4.1%
74,448
72,301
-2.9%
74,448
72,301
-2.9%
13,274
12,633
-4.8%
13,274
12,633
-4.8%
53.8%
53.8%
5.9%
5.9%
34.3%
34.3%
6.0%
6.0%
**Domestic consists of Detroit Three brands and Tesla.
Source: IHS Automotive.
21
Brand Registrations Report
Minnesota New Retail Car and Light Truck Registrations
TOTAL
Last Two Months (Dec. '15 and Jan. '16*)
Annual Totals
Registrations
Market Share (%)
Registrations
Market Share (%)
2014
2015 % chg.
2014
2015 % chg.
Yr. Ago Current% change Yr. Ago Current Change
34,757 31,608
-9.1
213,557 211,079
-1.2
Cars
Light Trucks
11,362
23,395
9,118
22,490
-19.8
-3.9
32.7
67.3
28.8
71.2
-3.9 77,875 70,157
3.9 135,682 140,922
-9.9
3.9
36.5
63.5
33.2
66.8
-3.3
3.3
Domestic Brands
European Brands
Japanese Brands
Korean Brands
19,168
2,111
11,507
1,971
17,211
1,906
10,804
1,687
-10.2
-9.7
-6.1
-14.4
55.1
6.1
33.1
5.7
54.5
6.0
34.2
5.3
-0.6 112,747 113,592
-0.1 13,088 12,553
1.1 74,448 72,301
-0.4 13,274 12,633
0.7
-4.1
-2.9
-4.8
52.8
6.1
34.9
6.2
53.8
5.9
34.3
6.0
1.0
-0.2
-0.6
-0.2
Acura
239
199
-16.7
0.7
0.6
-0.1
Audi
274
288
5.1
0.8
0.9
0.1
BMW
496
432
-12.9
1.4
1.4
0.0
Buick
668
670
0.3
1.9
2.1
0.2
Cadillac
251
258
2.8
0.7
0.8
0.1
Chevrolet
5,797
5,433
-6.3
16.7
17.2
0.5
Chrysler
642
401
-37.5
1.8
1.3
-0.5
Dodge
877
794
-9.5
2.5
2.5
0.0
FIAT
16
23
43.8
0.0
0.1
0.1
Ford
6,049
5,247
-13.3
17.4
16.6
-0.8
GMC
1,634
1,449
-11.3
4.7
4.6
-0.1
Honda
2,641
2,599
-1.6
7.6
8.2
0.6
Hyundai
891
730
-18.1
2.6
2.3
-0.3
Infiniti
138
122
-11.6
0.4
0.4
0.0
Jaguar
14
8
-42.9
0.0
0.0
0.0
Jeep
1,574
1,506
-4.3
4.5
4.8
0.3
Kia
1,080
952
-11.9
3.1
3.0
-0.1
Land Rover
85
114
34.1
0.2
0.4
0.2
Lexus
410
496
21.0
1.2
1.6
0.4
Lincoln
220
195
-11.4
0.6
0.6
0.0
Mazda
629
661
5.1
1.8
2.1
0.3
Mercedes
347
298
-14.1
1.0
0.9
-0.1
MINI
95
83
-12.6
0.3
0.3
0.0
Mitsubishi
318
239
-24.8
0.9
0.8
-0.1
Nissan
1,730
1,391
-19.6
5.0
4.4
-0.6
Other
26
37
42.3
0.1
0.1
0.0
Porsche
46
50
8.7
0.1
0.2
0.1
Ram
1,412
1,208
-14.4
4.1
3.8
-0.3
Subaru
1,886
1,732
-8.2
5.4
5.5
0.1
Tesla
33
30
-9.1
0.1
0.1
0.0
Toyota
3,514
3,364
-4.3
10.1
10.6
0.5
Volkswagen
587
469
-20.1
1.7
1.5
-0.2
Volvo
138
130
-5.8
0.4
0.4
0.0
*Jan '16 figures estimated by Auto Outlook. Top ten brands are shaded yellow.
1,657
1,759
2,700
4,120
1,443
32,139
3,637
6,970
252
37,410
8,271
18,133
6,115
877
70
9,504
7,159
345
2,359
1,146
4,429
2,154
534
2,154
10,524
196
285
7,917
10,113
98
24,192
4,214
681
1,435
1,669
2,353
3,911
1,331
34,303
3,775
5,509
232
36,966
8,821
17,442
5,729
769
63
9,729
6,904
535
2,536
1,102
4,482
2,044
457
1,876
10,309
185
284
7,898
10,302
193
23,141
4,035
759
-13.4
-5.1
-12.9
-5.1
-7.8
6.7
3.8
-21.0
-7.9
-1.2
6.6
-3.8
-6.3
-12.3
-10.0
2.4
-3.6
55.1
7.5
-3.8
1.2
-5.1
-14.4
-12.9
-2.0
-5.6
-0.4
-0.2
1.9
96.9
-4.3
-4.2
11.5
0.8
0.7
-0.1
0.8
0.8
0.0
1.3
1.1
-0.2
1.9
1.9
0.0
0.7
0.6
-0.1
15.0
16.3
1.3
1.7
1.8
0.1
3.3
2.6
-0.7
0.1
0.1
0.0
17.5
17.5
0.0
3.9
4.2
0.3
8.5
8.3
-0.2
2.9
2.7
-0.2
0.4
0.4
0.0
0.0
0.0
0.0
4.5
4.6
0.1
3.4
3.3
-0.1
0.2
0.3
0.1
1.1
1.2
0.1
0.5
0.5
0.0
2.1
2.1
0.0
1.0
1.0
0.0
0.3
0.2
-0.1
1.0
0.9
-0.1
4.9
4.9
0.0
0.1
0.1
0.0
0.1
0.1
0.0
3.7
3.7
0.0
4.7
4.9
0.2
0.0
0.1
0.1
11.3
11.0
-0.3
2.0
1.9
-0.1
0.3
0.4
0.1
Source: IHS Automotive
Any material quoted must be attributed to Minnesota Dealer Outlook, and must also include the statement: “Data Source:
IHS Automotive.” Unforeseen events may affect the forecast projections presented. Consequently, Auto Outlook, Inc. is not
responsible for management decisions based on the content of Minnesota Dealer Outlook.
Any material quoted must be attributed to (name of the publication), and must also include the statement
“Data Source: IHS Automotive.” Unforeseen events may affect the forecast projections presented
Consequently, Auto Outlook, Inc. is not responsible for management decisions based on the content of (name
of publication).
www.mada.org
22
MARKET
TRACKER:
QUARTERLY
RESULTS
MARKET
TRACKER:
QUARTERLY
RESULTS
MARKET
TRACKER:
QUARTERLY
RESULTS
MARKET
TRACKER:
QUARTERLY
RESULTS
MARKET TRACKER: QUARTERLY RESULTS
MARKET
TRACKER:
PRIMARY
SEGMENTS
MARKET
TRACKER:
PRIMARY
SEGMENTS
MARKET
TRACKER:
PRIMARY
SEGMENTS
MARKET
TRACKER:
PRIMARY
SEGMENTS
MARKET TRACKER: PRIMARY SEGMENTS
State
Market
Has
Small
Decline
in in
4Q
‘15‘15 Domestic
State
Market
Has
Small
Decline
in 4Q
Brands
Gain
Domestic
Brands
Gain
State
Market
Has
Small
Decline
State
Market
Small
Decline
in ‘15
4Q 4Q
‘15‘15
Domestic
Brands
Gain
Domestic
Gain
State
Market
HasHas
Small
Decline
in 4Q
Domestic
Brands Brands
Gain
QUARTERLY
TREND
QUARTERLY
TREND
QUARTERLY
TRENDMarket
QUARTERLY
TREND
Percent
Change
in New
Vehicle
Percent
Change
in
New
Vehicle Market
QUARTERLY
TREND
Percent
Change
in New
Vehicle Market
Percent
Change
inState
New
Vehicle
State
and
U.S.
and
U.S.Market
Percent Change
in
New
Vehicle
and U.S. Market
StateState
and U.S.
State and U.S.
Change
in State
Market
Share
Change
in State
Market
Share
Change
in vs.
State
Market
Change
in2015
State
Market
ShareShare
2014
2015
vs. 2014
vs.
2014 Share
2015
vs.
2014
Change
in2015
State
Market
2015 vs. 2014
15.0%
15.0%
15.0%15.0%
%%
change
versus
year
earlier
change
versus
year
earlier
% change versus year earlier
% change versus year earlier
10.0%
10.0%
10.0%10.0%
5.0%5.0%
5.0% 5.0%
0.0%0.0%
0.0% 0.0%
StateState
State
-5.0%-5.0% State
U.S. U.S.
-5.0% -5.0% U.S. U.S.
-10.0%
-10.0%
-10.0%
-10.0%
-15.0%
-15.0%
-15.0% Q1 '15
Q1 '15 Q2 '15
Q2 '15 Q3 '15
Q3 '15 Q4 '15
Q4 '15
-15.0%
'15
'15
'15
'15
Q13.2%
'15Q1
'15Q2
'15Q3
'15Q4
StateState
3.2% Q2-5.5%
-5.5% Q30.5%
0.5% Q4-2.1%
-2.1%
State
3.2%
-5.5%
0.5%
-2.1%
State
U.S. U.S.3.2%
3.9%3.9% -5.5%
3.5%3.5% 0.5%
6.4%6.4% -2.1%
6.4%6.4%
U.S. U.S. 3.9% 3.9% 3.5% 3.5% 6.4% 6.4% 6.4% 6.4%
TheThe
statestate
market
declined
slightly
in the
Fourth
market
declined
slightly
in
the
Fourth
TheThe
statestate
market
declined
slightly
in
the
Fourth
market
declined
slightly
inwhile
the Fourth
The
state
market
declined
slightly
inearlier,
the
Fourth
Quarter
of
2015
versus
a
year
earlier,
the
Quarter
of
2015
versus
a
year
while
the
Quarter
of 2015
2015
versus
aayear
while
U.S.
Quarter
ofwas
2015
versus
a earlier,
year
earlier,
while
the
Quarter
of
versus
year
earlier,
whilethe
the
U.S.
market
up
6.4%.
U.S.
market
was
up
6.4%.
market was
up 6.4%. up 6.4%.
market
U.S. U.S.
market
was was
up 6.4%.
Source:
IHS IHS
Automotive.
Source:
IHS
Automotive.
Source:
Automotive.
Source:
IHS Automotive.
Source:
IHS Automotive.
1.0 1.0
1.0 1.0
Domestic
Domestic
Domestic
Domestic
Domestic
Domestic
brandDomestic
share share
Domestic
brand
brand
increased
byshareby -0.2
brand
share
increased
European
-0.2
European
increased
one
share
increased
by
one
shareby -0.2 -0.2
European
European
one
share
point
inpoint
2015.
one
share
in 2015.
in 2015.
point inpoint
2015.
-0.2 -0.2
Korean
Korean
Korean
-0.2 -0.2
Korean
Japanese
Japanese
Japanese
Japanese
-0.6 -0.6
-0.6 -0.6
-2.0 -2.0
-1.5 -1.5
-1.0 -1.0
-0.5 -0.50.0 0.00.5 0.51.0 1.01.5 1.5
-1.0
0.0
-2.0 -2.0
-1.5 -1.5
-1.0Change
-0.5 in -0.5
0.0 share
0.5 0.5
1.0 1.0
1.5 1.5
market
Change
in market share
Change
in
market
share
Change in market share
x
x
x
x
Domestic
brand
market
share
increased
in in
Domestic
brand
market
share
increased
Domestic
brand
market
share
increased
in 2015,
Domestic
brand
market
share
increased
Domestic
brand
market
share
increased
in in
2015,
while
European,
Japanese,
and
Korean
2015,
while
European,
Japanese,
and
Korean
while
European,
Japanese,
and Korean
brands
had
2015,
while
European,
Japanese,
Korean
2015,
while
European,
Japanese,
and and
Korean
brands
had
small
declines.
brands
had
small
declines.
small
declines.
brands
had
small
declines.
brands had small declines.
Source:
IHS
Automotive.
Source:
IHS
Automotive.
Source:
IHS
Automotive.
Source:
IHS Automotive.
Source:
IHS Automotive.
MARKET
TRACKER:
HYBRID
ANDAND
ELECTRIC
VEHICLES
MARKET
TRACKER:
HYBRID
ELECTRIC
VEHICLES
MARKET
TRACKER:
HYBRID
ELECTRIC
VEHICLES
MARKET
TRACKER:
HYBRID
AND AND
ELECTRIC
VEHICLES
Hybrid
&&
Electric
Vehicle
Market
Share
Slips
toto
1.9%
inin
2015
Hybrid
& Electric
Electric
Vehicle
Market
Share
Slips
to
1.9%
in
2015
Hybrid
Vehicle
Market
Share
Slips
1.9%
2015
Hybrid
& Electric
Vehicle
Market
Share
Slips
to 1.9%
in 2015
MARKET TRACKER: HYBRID AND ELECTRIC VEHICLES
Hybrid &Quarterly
Electric
Vehicle
Market
Share
Slips to 1.9% in 2015
Alternative
Powertrain
Market
Share
Quarterly
Alternative
Powertrain
Market
Share
Quarterly
Alternative
Market
Quarterly
Alternative
Powertrain
Market
ShareShare
(includes
hybrid
andPowertrain
electric
vehicles)
(includes
hybrid
and
electric
vehicles)
Quarterly
Alternative
Powertrain
Market
Share
(includes
hybrid
and
electric
vehicles)
(includes hybrid and electric vehicles)
(includes hybrid and electric vehicles)
4.0%4.0%
Trendline
Trendline
4.0% 4.0%
Trendline
Trendline
3.5%3.5%
3.5% 3.5%
3.0%3.0%
3.0% 3.0%
2.5%2.5%
2.5% 2.5%
2.0%2.0%
2.0% 2.0%
1.5%1.5% Alternative
powertrain
marketmarket
share has
Alternative
powertrain
sharetrended
has trended
1.5% 1.5% Alternative
share
hasdeclined
trended
during
the powertrain
past
three
years,
and
declined
powertrain
market
share
has
trended
lower
during
the
past market
three years,
and
1.0%1.0% lowerAlternative
lower
during
the
past
three
years,
and declined
to 1.7%
the past
Fourth
Quarter
ofand
2015.
during
the
three
years,
declined
to in
1.7%
in
the
Fourth
Quarter
of
2015.
1.0% 1.0% lower
0.5%0.5% to 1.7%toin1.7%
in the Quarter
Fourth Quarter
of 2015.
the Fourth
of 2015.
0.5% 0.5%
0.0%0.0%
Q1 Q2
0.0% 0.0%
Q1 Q3
Q2 Q4
Q3 Q1
Q4 Q2
Q1 Q3
Q2 Q4
Q3 Q1
Q4 Q2
Q1 Q3
Q2 Q4
Q3 Q1
Q4 Q2
Q1 Q3
Q2 Q4
Q3 Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
'12Q2
'12
'12
'12
'13
'13
'13
'13
'14
'14
'14
'14
'15
'15
'15
'15
Q1
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
'12
'12
'12
'12
'13
'13
'13
'13
'14
'14
'14
'14
'15
'15
'15 Q4
'15
'12
'12
'12
'12
'13
'13
'13
'13
'14
'14
'14
'14
'15
'15
'15
'12 '12 '12 '12 '13 '13 '13 '13 '14 '14 '14 '14 '15 '15 '15 '15 '15
StateState
HybridHybrid
and Electric
Vehicle
and Electric
Vehicle
StateRetail
Hybrid
and Electric
State New
Hybrid
andRetail
Electric
VehicleVehicle
Registrations
New
Registrations
New
Registrations
New Retail
Registrations
2009Retail
thru 2015
2009
thru 2015
20092015
thruin2015
2009 thru
Plug
Plug in
in
Plug
inPlug
hybrids
Electrics
Year Year
Hybrids
hybrids
Electrics Total Total
Hybrids
hybrids
Electrics
Total
Year
Hybrids
hybrids
Electrics
Year
Hybrids
20092009
39963996
0
8 Total
0
840044004
2009
3996
0
8
4004
2009
3996
0
8
4004
20102010
32603260
0
7
0
732673267
0
7 32513267
2010
3260
3267
20112010
31763260
2011
3176 063 63 712 12
3251
63 12
12
2011
3176
3251
20122011
47623176
319 319
115 115
51963251
2012
4762 63
5196
2012
4762
5196
20132012
60364762
364 319
276 115
66765196
2013
6036 319
364115
276
6676
2013
6036
6676
20142013
50306036
321 364
256 276
56076676
2014
5030 364
321276
256
5607
2014
5030
5607
20152014
35145030
226 321
289 256
40295607
2015
3514 321
226256
289
4029
2015 2015
3514 3514 226 226 289 289
4029 4029
Source:
IHS Automotive
Source:
IHS Automotive
IHS Automotive
Source:Source:
IHS Automotive
New registrations of hybrid and electric
NewNew
registrations
hybrid
and
electric
registrations
of units
hybrid
and
electric
vehicles
wereof
4,029
during
2015,
New
registrations
of hybrid
and
electric
New
registrations
of4,029
hybrid
and
electric
vehicles
were
4,029
units
during
2015,
vehicles
were
units
during
2015,
down
by
nearly
1,600
units
from
2014.
vehicles
were
4,029
units
during
2015,
vehicles
4,029
units
during
2015,
down
bywere
nearly
1,600
unitsunits
fromfrom
2014.
down
by nearly
1,600
2014.
by nearly
1,600
2014.
downdown
by nearly
1,600
unitsunits
fromfrom
2014.
Source:
IHS Automotive.
Source:
IHS Automotive.
Source:
IHS Automotive.
Source:
IHS Automotive.
www.mada.org
23
MARKET TRACKER: SEGMENTS
Pickup Truck Market Share Increases
MARKET TRACKER: SEGMENTS
Large, and
SmallIncreases
cars lose share
PickupMid-Size,
Truck Market
Share
Mid-Size, Large, and Small cars lose share
Change in Segment Market Share
2015
vs. 2014!Market Share
Change in
Segment
2015 vs. 2014
Minnesota and U.S. New Vehicle Markets
Minnesota and U.S. !New Vehicle Markets
Pickup
Compact SUV
Typical models in segments:
Typical models in segments:
Mid Size SUV
Small
Car:
Hyundai
Elantra
Small
Car:
Hyundai
Elantra
Mid
Size
&
Large
Car:
Toyota
Camry
Mid Size & Large Car: Toyota Camry
Luxury & Sports Car: BMW 3-Series
Luxury & Sports Car: BMW 3-Series Pickup: Ford F-Series
Pickup:
Ford F-Series
Van: Honda
Odyssey
Compact
SUV:
Jeep Liberty
Van: Honda
Odyssey
Mid Size SUV: Jeep Grand Cherokee
Compact SUV: Jeep Liberty
Full Size SUV: Chevrolet Tahoe
Mid Size Luxury
SUV: Jeep
Grand
Cherokee
SUV:
Lexus
RX
Full Size SUV: Chevrolet Tahoe
Luxury SUV: Lexus RX
Luxury SUV
Van
Full Size SUV
Luxury and Sports Car
MN
US
Small Car
Mid Size and Large Car
-2.0
-1.5
-1.0
-0.5
0.0
0.5
1.0
1.5
2.0
2.5
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www.mada.org
New Vehicle Sales Have a Chance to Improve in 2016
The two graphs below provide a long term perspective of trends in the Minnesota new retail light vehicle
market. The first graph shows historical registrations from 2008 thru 2015, along with Auto Outlook’s forecast
LONG TERM TRENDS
for 2016.
The second graph shows light truck share of the overall light vehicle market.
LONG
TERM TRENDS
New
Vehicle
a to
Chance
in 2016
New
Vehicle
SalesSales
Have aHave
Chance
ImprovetoinImprove
2016
New retail light vehicle registrations
New retail light vehicle registrations
State New Retail Light Vehicle Registrations - 2008 thru 2015, 2016 Forecast
Key Trends
The two graphs below provide a long term perspective of trends in the Minnesota new retail light vehicle market. The first graph shows
The two graphs below provide a long term perspective of trends in the Minnesota new retail light vehicle
Between
2009
(the
low
250,000 registrations from 2008 thru 2015, along with Auto Outlook’s forecast for 2016. The second graph
historical
shows light
truck
share
of the
market. The first graph shows historical registrations from 2008 thru 2015, along with Auto
Outlook’s
forecast
point during the market
overall
light vehicle
market. graph shows light truck share of the overall light vehicle market.
for 2016.
The second
downturn) and 2015,
state new retail light
200,000
State
New
Retail
Light
Vehicle
Registrations
2016Forecast
Forecast
State
New
Retail
Light
Vehicle
Registrations- -2008
2008thru
thru2015,
2015, 2016
Key Trends
vehicle
registrations
have
increased
by more
Key Between
Trends
2009 (the low
250,000
than
83,000
units,
an
150,000
point2009
during
the
market
Between
(the
low
point
during
the
increase of 65%.
downturn)
2015,
market
downturn) and
and 2015,
state new
new registrations
retail lighthave
200,000
retailstate
lightFollowing
vehicle
a wild roller100,000
vehicle
registrations
increased
by
more
than
83,000
units,the
an
ride
during
haveofcoaster
increased
by more
increase
65%.
year
period,
than eight
83,000
units,
an state
150,000
Following
a
wild
roller-coaster
ride year
during
registrations
this
increase of 65%.
50,000
the eight-year
period,
state
registrations
should exceed 2008
this
year
should
for the
Following
a wild
rollerlevelsexceed
for 2008
thelevelssixth
100,000
sixthcoaster
consecutive
year.
ride during
the
consecutive
year.
0
50,000
Regs.
2008
2009
2010
2011
2012
2013
2014
2015
2016
Forecast
154,312
127,662
132,931
169,988
183,264
204,546
213,557
211,079
212,000
Years
0
Source:
IHS
2008Automotive.
2009
Regs.
154,312
127,662
2010
2011
2012
2013
2014
2015
2016
Forecast
132,931
169,988
183,264
204,546
213,557
211,079
212,000
eight year period,
registrations this
should exceed
levels for the
consecutive year.
state
year
2008
sixth
Years
State New Retail Light Truck Market Share - 2008 thru 2015
State New Retail Light Vehicle Registrations - 2008 thru 2015, 2016 Forecast
70.0%
State New Retail Light Truck Market Share - 2008 thru 2015
Light truck market share
After declining slightly
from 2011 to 2012, light
Trends
AfterKey
declining
2011 to 2012,
truckslightly
sharefrom
increased
to
light truck 66.8%
share increased
to 66.8%
in
in 2015,
and was
After
declining
slightly
2015,
andup
was
up
18.1 points
from from
2008.
18.1
points
from 2011 to 2012, light
truck 2008.
share increased to
Key Trends
65.0%
60.0%
70.0%
55.0%
65.0%
50.0%
Light truck market share
Key Trends
66.8% in 2015, and was
up 18.1 points from
2008.
60.0%
45.0%
55.0%
40.0%
50.0%
35.0%
45.0%
40.0%
30.0%
35.0%
Share
2008
2009
2010
2011
2012
2013
2014
2015
48.7%
49.8%
55.8%
59.1%
57.7%
59.3%
63.5%
66.8%
30.0%
Source: IHS
Automotive.
2008
2009
Share
48.7%
49.8%
Years
2010
2011
55.8%
59.1%
2012
2013
2014
2015
57.7%
59.3%
63.5%
66.8%
Years
www.mada.org
25
Chevrolet and Ford Are Relatively Strong Performers in State
Ram, Subaru, GMC, and Buick also rank high
The graph below provides an indicator of brands that are popular in Minnesota (relative to the National
BRAND
SCOREBOARD
standard),
and those that are not. Here’s how it works: For the top 30 selling brands in the state, each brand’s
share of the
market
is multiplied by
retail registrations
in the
state during 2015. This yields a “target” for
Chevrolet
andU.S.
Ford
Are Relatively
Strong
Performers
in State
stateGMC,
market.
Targetalso
registrations
Ram,the
Subaru,
and Buick
rank high are subtracted from actual registrations to derive the measurement of
sales performance. Brands at the top of the graph (i.e., Chevrolet, Ford, Ram, Subaru, GMC, Buick, and
The graph
below are
provides
an indicator
of brands
thatinare
Minnesota
(relative
to the National
standard),
those that are
not. by a
Chrysler)
relatively
strong
sellers
thepopular
state,inwith
actual
registrations
exceeding
theand
calculated
target
Here’slarge
how itmargin.
works: For
top 30 selling
brands inregistrations
the state, eachexceeded
brand’s share
the U.S.by
market
is multiplied
Fortheinstance,
Chevrolet
theof target
11,395
units. by retail registrations
in the state during 2015. This yields a “target” for the state market. Target registrations are subtracted from actual registrations to derive
the measurement of sales performance. Brands at the top of the graph (i.e., Chevrolet, Ford, Ram, Subaru, GMC, Buick, and Chrysler) are
relatively strong sellers in the state, with actual registrations exceeding the calculated target by a large margin. For instance, Chevrolet
Retail
Market
registrations exceeded the target Minnesota
by 11,395 units.
Source:
Polk.Performance based on registrations for 2015
Actual registrations minus target (state industry registrations times U.S. market share)
Minnesota Retail Market Performance based on registrations for 2015
11395
Chevrolet
10648
Ford
2196
Ram
2160
Subaru
1763
GMC
1160
Buick
858
Chrysler
661
Mitsubishi
270
Mazda
233
Dodge
-48
Volvo
Lincoln
-188
FIAT
-264
MINI
-334
Volkswagen
-396
Land Rover
-418
Porsche
-442
-703
Cadillac
Jeep
-915
Infiniti
-948
Kia
-965
Audi
-1025
Acura
-1051
BMW
-2194
Lexus
-2250
Mercedes
-2732
Hyundai
-2830
Honda
-2944
-4621
Toyota
-5554
Nissan
-15,000
-10,000
-5,000
0
5,000
10,000
15,000
Data Source: IHS Automotive.
26
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27
MODEL SCOREBOARD
Ford Focus is on Top of Sub Compact Car Segment
Chevrolet Equinox is best-selling Compact SUV
MODEL SCOREBOARD
Fordbelow
Focusshows
is onthe
Toptopoffive
Subselling
Compact
Car
Segment
The table
models
during
2015 in 16 primary market segments. In addition to
Chevrolet
Equinox
is
best-selling
Compact
SUV
unit registrations, it also shows each model’s market share in its respective segment. Ford Focus was the
best-selling
Car,
13.9%
share.
first
amongInEntry
followed byit also
Honda
The tableSub
belowCompact
shows the top
five with
sellingamodels
during
2015 Kia
in 16 Soul
primarywas
market
segments.
additionCars,
to unit registrations,
shows
each model’s
market
share in its respective
segment.
Ford best
Focus was
the among
best-sellingNear
Sub Compact
with aToyota
13.9% share.
Kia Soul
was
Fit. BMW
3-Series
remained
at the top,
as the
seller
LuxuryCar,
Cars.
Sienna
and
first among
Entry Cars,
by Honda
Fit. BMW
remained
at the top,
as therespectively.
best seller among
Near LuxurySilverado
Cars. Toyotabeat
Sienna
Chevrolet
Equinox
werefollowed
the best
selling
Mini3-Series
Van and
Compact
SUV,
Chevrolet
and Chevrolet
wereone
the best
sellingFull
MiniSize
Van and
CompactChevrolet
SUV, respectively.
Chevrolet
Silverado
beat Ford F-Series
as number
Ford F-Series
asEquinox
number
among
Pickups.
Tahoe
was the
best-selling
Full Size
SUV. one
among Full Size Pickups. Chevrolet Tahoe was the best-selling Full Size SUV.
Source: Polk.
Top Selling Models in Each Segment - Minnesota
New Retail Registrations - 2015 Annual Total
Cars
Entry
Model
Sub Compact
Regs. Share
Kia Soul
Model
Sporty Compact
Regs. Share
Model
Standard Mid Size
Regs. Share
Model
Regs. Share
1705
38.3
Ford Focus
3363
13.9
Ford Mustang
598
37.8
Toyota Camry
4378
15.4
731
16.4
Honda Civic
3147
13.0
Dodge Challenger
430
27.2
Ford Fusion
3951
13.9
Honda Fit
Chevrolet Sonic
437
9.8
Toyota Corolla
2734
11.3
Chevrolet Camaro
384
24.3
Subaru Outback
3607
12.7
Ford Fiesta
422
9.5
Chevrolet Cruze
2692
11.1
Hyundai Veloster
103
6.5
Honda Accord
3244
11.4
Nissan Versa
291
6.5
Toyota Prius
1779
7.4
41
2.6
Nissan Altima
2487
8.7
Large Mid Size
Model
Entry Luxury
Regs. Share
Chevrolet Impala
Honda CR-Z
Model
Near Luxury
Regs. Share
Model
Luxury and Sports
Regs. Share
Model
Regs. Share
1152
25.6
Audi A3
232
37.3
BMW 3-Series
579
16.0
Chevrolet Corvette
330
12.3
756
16.8
Mercedes CLA-Class
126
20.3
Mercedes C-Class
416
11.5
BMW 5-Series
261
9.7
Ford Taurus
Toyota Avalon
700
15.6
Acura ILX
76
12.2
Lexus ES
343
9.5
Mercedes E-Class
260
9.7
Buick Lacrosse
657
14.6
BMW 2-Series
74
11.9
Acura TLX/TL
300
8.3
Tesla Model S
192
7.2
Dodge Charger
490
10.9
Lexus Ct200H
70
11.3
Audi A4
281
7.8
Audi A6
186
6.9
Light Trucks
Full Size Pickup
Compact Pickup
Model
Regs. Share
Chevrolet Colorado
Van
Model
Regs. Share
Model
Compact SUV
Regs. Share
Model
Regs. Share
1198
42.8
Chevrolet Silverado
14010
35.2
Toyota Sienna
2035
19.9
Chevrolet Equinox
6677
14.2
Toyota Tacoma
934
33.4
Ford F Series
13425
33.8
Chrysler Town & Country
1758
17.2
Ford Escape
6213
13.2
GMC Canyon
441
15.8
Ram
7410
18.6
Dodge Caravan
1734
16.9
Honda CR-V
5906
12.6
Nissan Frontier /Xe
210
7.5
GMC Sierra
4096
10.3
Honda Odyssey
1655
16.1
Toyota RAV4
5426
11.6
787
2.0
Ford Transit Connect Van
1066
10.4
Jeep Cherokee
3480
7.4
Toyota Tundra
Mid Size SUV (2 rows)
Model
Mid Size SUV (3 rows)
Regs. Share
Model
Full Size SUV
Regs. Share
Model
Luxury SUV
Regs. Share
Model
Regs. Share
Jeep Grand Cherokee
2955
34.6
Ford Explorer
3369
17.8
Chevrolet Tahoe
938
24.9
Buick Encore
1191
12.0
Ford Edge
2805
32.8
Toyota Highlander
2863
15.1
Chevrolet Suburban
878
23.3
Lexus RX
1027
10.3
Nissan Murano
1130
13.2
Honda Pilot
2158
11.4
GMC Yukon XL
601
15.9
Acura MDX
576
5.8
Hyundai Santa Fe Sport
900
10.5
Chevrolet Traverse
2070
10.9
GMC Yukon
500
13.3
Cadillac SRX
518
5.2
Toyota 4 Runner
638
7.5
Kia Sorento
1844
9.7
Ford Expedition
433
11.5
Audi Q5
504
5.1
28
www.mada.org
State Market Down Slightly in ’15; U.S. Sales Improve
New retail registrations in U.S. increased 5.1% in 2015
TheMINNESOTA
accompanying
tableU.S.
provides a comparison of results in both the Minnesota and U.S. markets. New
MARKET VERSUS
vehicle registrations in the state were down slightly in 2015, while the U.S. market was up 5.1%. Detroit Three
State
Market
Down Slightly
in ’15;well
U.S. above
Sales the
Improve
market
share
in Minnesota
was 53.8%,
41.4% share in the Nation. Car market share in
New retail
in U.S. increased 5.1% in 2015
Minnesota
fellregistrations
to just 33.2%.
The accompanying table provides a comparison of results in both the Minnesota and U.S. markets. New vehicle registrations in the state
were down slightly in 2015, while the U.S. market was up 5.1%. Detroit Three market share in Minnesota was 53.8%, well above the 41.4%
share in the Nation. Car market share in Minnesota fell to just 33.2%.
Minnesota Market
U.S. Market
-1.2%
5.1%
Car Market Share
Car share of industry retail light vehicle
registrations - 2015
33.2%
43.7%
Detroit Three Brand Market Share
Domestic brand share of industry retail light
vehicle registrations - 2015
53.8%
41.4%
Change in registrations
% change in registrations
2015 vs. 2014
Top selling light vehicle brands and
market share - 2015
First
Second
Third
Fourth
Fifth
Sixth
Seventh
Eighth
Ninth
Tenth
Ford
Chevrolet
Toyota
Honda
Nissan
Subaru
Jeep
GMC
Ram
Kia
17.5%
16.3%
11.0%
8.3%
4.9%
4.9%
4.6%
4.2%
3.7%
3.3%
Toyota
Ford
Chevrolet
Honda
Nissan
Jeep
Hyundai
Subaru
Kia
GMC
13.2%
12.5%
10.9%
9.7%
7.5%
5.0%
4.1%
3.9%
3.7%
3.3%
Data Source: IHS Automotive
visit us online at
www.mada.org
www.mada.org
29
IN MINNESOTA USED VEHICLE MARKET
dRESULTS
Vehicle
Market Moved Higher in 2015
Minnesota Retail Used Light Vehicle Registrations
registrations
5.4% 2015in 2015
dvehicle
Vehicle
Marketincreased
MovedbyHigher
Annual Totals
ow is a list of key trends in the Minnesota retail
d vehicle market:
% Change
Market Share
Registrations
• Retail used car and light truck registrations in
RECENT
RESULTS
IN
MINNESOTA
USED
VEHICLE
MARKET
'14
to
'15
2014
2015
2014
2015
the state
increased 5.4%increased
from 2014 toby
2015.
vehicle
registrations
5.4% 2015
s a list of key trends in the Minnesota retail
TOTAL
680,102
716,716
5.4%
Used Vehicle Market Moved Higher in 2015 Minnesota Retail Used Light Vehicle Registrations
hicle market:
Cars
340,035
355,269
4.5%
50.0%
49.6%
• As Used
shown
on the
graph below,
monthly
vehicle
registrations
increased
by trends
5.4% 2015
Annual
Totals
a for
list the
of key
trends
the used
Minnesota
Light Trucks
340,067
361,447
6.3%
50.0%
50.4%
state
new inand
vehicleretail
markets
% Change
Market Share
Registrations
etail
used
andof light
truckin registrations
in
Below car
is a list
key trends
the Minnesota retail
cle(vehicles
market:
Minnesota
Retail
Used
Light
Vehicle
Registrations
six year old or newer) have followed
'14 to '153.8% 2014
Detroit Three 2014
470,564 2015
488,485
69.2% 2015
68.2%
e state
increased
5.4% from 2014 to 2015.
used
vehicle market:
Annual Totals
roughly
similar paths during most of the past two
TOTAL
716,716
European 680,102
43,103
45,546 5.4% 5.7%
6.3%
6.4%
% Change
Market Share
Registrations
tailyears,
used• car
light
truck
in in
Retailand
usedused
car and
lightregistrations
truck
registrations
but
the
vehicle
market
surpassed
Japanese
146,932
159,578
8.6%
21.6%
22.3%
'14 to4.5%
'15
2014
2015
2014
2015
Cars
340,035
355,269
50.0%
49.6%
sstate
shown
on the
graph
below,
monthly
5.4%
from
2014
to 2014
2015.
increased
5.4%
totrends
2015.
Korean
19,503
23,107
18.5%
2.9%
3.2%
newincreased
at the
thestate
end
of 2015.
Sixfrom
year
old
or newer
TOTAL
5.4%
Light Trucks 680,102
340,067 716,716
361,447
6.3%
50.0%
50.4%
r the state new and used vehicle markets
Source:
IHS
Automotive.
used •
registrations
increased
11%monthly
in November
shownold
on or
the
graph below,
trends
ehicles
sixAsthe
year
newer)
have
followed
Cars
4.5%
shown
on
graph
below,
monthly
trends
Detroit Three 340,035
470,564 355,269
488,485
3.8% 50.0%
69.2% 49.6%
68.2%
and December
of
last
year
compared
to a year
for
the
state
new
and
used
vehicle
markets
ughly
similarnew
paths
during
most
of themarkets
past two
Light
Trucks
340,067
361,447
6.3%
50.0%
50.4%
European
43,103
45,546
5.7%
6.3%
6.4%
the
state
and
used
vehicle
earlier, (vehicles
while new
vehicle
declined
sixvehicle
year
old market
orregistrations
newer) surpassed
have followed
ears,
but
the
used
Japanese
146,932
159,578
8.6%
21.6%
22.3%
hicles
year old or newer) have followed
5%. six roughly
Detroit Three
470,564
488,485
69.2% Markets
68.2%
in Retail
New and3.8%
Used Vehicle
paths during
most
thenewer
past two
Korean % Change
19,503
23,107
18.5%
2.9%
3.2%
ew
the end
ofsimilar
2015.
year
oldof
or
ghlyatsimilar
paths
duringSix
most
of the
past
two
European
43,103
45,546
5.7%
6.3%
6.4%
years,
but
the
used
vehicle
market
surpassed
2010
thru
2015
Source:
IHS
Automotive.
sed registrations
increased
11% insurpassed
November
ars,
but the used
vehicle
market
Japanese
146,932
159,578
8.6%
21.6%
22.3%
• Chevrolet
the
best-selling
model
newer
newSilverado
at
endyear
ofwas
2015.
Six-year-old
ndatDecember
of the
last
compared
tonewer
aoryear
Korean
19,503
23,107
18.5%
2.9%
3.2%
w
the
end
of
2015.
Six
year
old
or
30.0%
in the state
among
6 year-old
newer
vehicles,
used
registrations
increasedor11%
indeclined
November
arlier,
while
new
vehicle
registrations
Source:
IHS
Automotive.
ed while
registrations
increased
11%had
in November
25.0%
Cruze
and Equinox
big percentage
and December
of last year
compared
to a year
%.December
Source:
IHS Automotive.
% Change
in Retail New and Used Vehicle Markets
d
of
last
year
compared
to
a
year
increases.
20.0%
earlier, while new vehicle registrations declined
% Change in Retail
Newthru
and Used
lier, while new vehicle registrations declined
2010
2015Vehicle Markets
5%.
15.0%
hevrolet
Silverado
was the best-selling model
2010
thru
2015
.• Hyundai,
% Change in Retail New and Used Vehicle Markets
Kia, Silverado
Nissan,was
and
Subaru had
Chevrolet
best-selling
modelthe30.0%10.0%
the state• among
6 year-old
orthe
newer
vehicles,
2010 thru 2015
gains
theamong
state
used
ormarket
newer in25.0% 5.0%
in
the in
state
six-year-old
hilelargest
Cruze
and
Equinox
had
bigvehicle
percentage
evrolet
Silverado
was
theold
best-selling
model
2015
(vehicles
6
years
or
newer).
creases.
vehicles,6 year-old
while Cruze
Equinox
had big 30.0%
20.0% 0.0%
he
state among
or and
newer
vehicles,
percentage
increases.
25.0%
15.0% -5.0%
le Cruze and Equinox had big percentage
yundai, •Kia,
Nissan,
and Subaru
hadhadthethe 20.0%
reases.
Hyundai,
Kia, Nissan,
and Subaru
10.0%-10.0%
rgest gainslargest
in the
state
used
vehicle
market
in
gains in the state used vehicle market in 15.0%
5.0%-15.0%
'10 to '11
'11 to '12
'12 to '13
'13 to '14
'14 to '15
015
(vehicles
6 (vehicles
years old
or newer).
undai,
Kia,
Nissan,
andyears
Subaru
had the
2015
six
old or newer).
10.0%
0.0%
New
27.9%
7.8%
11.6%
4.4%
-1.2%
gest gains in the state used vehicle market in
5.0%
-5.0%
Used
4.3%
0.0%
9.3%
-10.8%
5.4%
15 (vehicles 6 years old or newer).
0.0%
-10.0%
Source:
-5.0%
-15.0%
IHS Automotive.
'10 to '11
-10.0%
New
27.9%
-15.0%
4.3%
'10 to
'11
Retail Used
Registrations
'11 to '12
'12 to '13
'13 to '14
'14 to '15
7.8%
11.6%
4.4%
-1.2%
0.0%
9.3%
'11 to
'12
to
'13 Average
'13-10.8%
to '14
Minnesota New and Used
- Three
Month '12
Moving
Source:
IHS
Automotive.
New
27.9%
7.8%
11.6%
4.4%
(used only includes
vehicles
6 years old or newer)
Source: IHS
Automotive.
Used
4.3%
0.0%
9.3%
5.4%
'14 to
'15
-1.2%
-10.8%
5.4%
Minnesota New and
Used Retail
Registrations - Three Month Moving Average
Source:
IHS Automotive.
Registrations
only
includes vehicles
6 years Month
old or newer)
Minnesota New and Used(used
Retail
Registrations
- Three
Moving Average
25000
(used only includes vehicles 6 years old or newer)
Minnesota
New
and Used Retail Registrations - Three Month Moving Average
20000
(used only includes vehicles 6 years old or newer)
15000
6 yr. old
or newer
used
2500010000
0
30
Jan-13
Feb-13 Jan-13
Mar-13 Feb-13
Apr-13 Mar-13
May-13 Apr-13
Jun-13 May-13
Jul-13 Jun-13
Aug-13 Jul-13
Sep-13 Aug-13
Oct-13 Sep-13
Nov-13 Oct-13
Dec-13 Nov-13
Jan-14 Dec-13
Feb-14 Jan-14
Mar-14 Feb-14
Apr-14 Mar-14
May-14 Apr-14
Jun-14 May-14
Jul-14 Jun-14
Aug-14 Jul-14
Sep-14 Aug-14
Oct-14 Sep-14
Nov-14 Oct-14
Dec-14 Nov-14
Jan-15 Dec-14
Feb-15 Jan-15
Mar-15 Feb-15
Apr-15 Mar-15
May-15 Apr-15
Jun-15 May-15
Jul-15 Jun-15
Aug-15 Jul-15
Sep-15 Aug-15
Oct-15 Sep-15
Nov-15 Oct-15
Dec-15 Nov-15
Dec-15
Data
Jan-13
Feb-13
Mar-13
Apr-13
May-13
Jun-13
Jul-13
Aug-13
Sep-13
Oct-13
Nov-13
Dec-13
Jan-14
Feb-14
Mar-14
Apr-14
May-14
Jun-14
Jul-14
Aug-14
Sep-14
Oct-14
Nov-14
Dec-14
Jan-15
Feb-15
Mar-15
Apr-15
May-15
Jun-15
Jul-15
Aug-15
Sep-15
Oct-15
Nov-15
Dec-15
Registrations
Registrations
20000 5000
25000
0
15000
20000
10000
15000
5000Source: IHS Automotive.
Data
10000
Source:
IHS Automotive.
0
5000
New
6 yr. old
or newer
used
6 yr. old
orNew
newer
used
New
www.mada.org
he accompanying
pie shows
chart shows
by vehicle
age
for 6 year-old
or newer
used vehicles.
companying
pie chart
marketmarket
share share
by vehicle
age for
6 year-old
or newer
used vehicles.
1,2, 1,2,
nd 3 year-old
vehicles
collectively
accounted
for 64.1%
6 year-old
or newer
market.
The shows
table shows
year-old
vehicles
collectively
accounted
for 64.1%
of the of
6 the
year-old
or newer
market.
The table
sed
vehicle
market
share
by
vehicle
age
during
the
final
three
months
of
2015
vs.
2014.
4
year-old
ehicle market share by vehicle age during the final three months of 2015 vs. 2014. 4 year-old marketmarket
hare increased
2.6 points,
while 6 year-old share declined sharply.
ncreased
2.6 points,
while
USED VEHICLE
SALES BY
AGE 6 year-old share declined sharply.
Increasing Supply Boosts Sales of Newer Used Vehicles
The accompanying pie chart shows market share by vehicle age for six-year-old or newer used vehicles. 1,2, and 3 year-old vehicles
collectively accounted for 64.1% of the six-year-old or newer market. The table shows used vehicle market share by vehicle age during the
final
three by
months
of 2015
vs. (vehicles
2014. Four-year-old
market
increased 2.6 points, while six-year-old share declined sharply.
Market
Share
Vehicle
Age
six years
oldshare
or newer)
t Share by Vehicle Age (vehicles six years old or newer)
Market Share by Vehicle
(vehicles six years old or newer)
2015
2015 Age
2015
UsedMarket
VehicleShare
Market
Age of(6
Vehicle
(6 or
yrs.
old or newer)
Used Vehicle
byShare
Age ofbyVehicle
yrs. old
newer)
thru December
Year Earlier
October October
thru December
2015 vs. 2015
Year vs.
Earlier
6 yrs. old 6 yrs. old
10.0%
10.0%
yr. old or newer
1 yr. old or1newer
23.7%
23.7%
11.4%
11.4%
14.5%
14.5%
19.3%
19.3%
Oct. thru Oct.
Dec.thru Dec.
Oct. thru Oct.
Dec.thru Dec.
2014
2015 Change Change
2014
2015
Age
Age
1 yr.
old or newer
1 yr. old or
newer
31.3%
31.3%
27.5%
27.5%
-3.8
-3.8
2 yrs. old2 yrs. old
17.8%
17.8%
19.8%
19.8%
2.0
2.0
17.7%
17.7%
19.1%
19.1%
1.4
1.4
10.3%
10.3%
12.9%
12.9%
2.6
2.6
8.7%
8.7%
11.0%
11.0%
2.3
2.3
14.2%
14.2%
9.7%
9.7%
-4.5
-4.5
21.1%
21.1%
IHS Automotive.
Source:Source:
IHS Automotive.
IHS Automotive.
rce:Source:
IHS Automotive.
SUPER SAVINGS ON FUEL
IN STORE AND AT THE PUMP
SA FLEET CARD
SMART BUSINESS
PER GAL
+
=
3¢
®
5¢
MY SA REWARDS® CARD*
PER GAL
8 OFF
¢
PER GALLON*
APPLY TODAY SUPERAMERICA.COM/FLEET/APPLY
AT PARTICIPATING LOCATIONS*
www.mada.org
31
Silverado and F-Series Lead Minnesota Used Vehicle Market
Cruze has largest percentage gain
SELLING
VEHICLE
MODELS
The TOP
thick
redUSED
bars
on the
graph below show unit registrations (bottom axis), and the thin blue bars show the
percent
change and
(top F-Series
axis). Silverado
was the best-seller
in the state,
while registrations also increased versu
Silverado
Lead Minnesota
Used Vehicle
Market
a year
earlier.
Cruze
had
the
largest
percentage
increase.
Cruze has largest percentage gain
The thick red bars on the graph below show unit registrations (bottom axis), and the thin blue bars show the percent change (top axis).
Silverado was the best-seller
in the state,(2015)
while registrations
also increased
a year earlier. Cruze
hadvs.
the largest
Registrations
and Percent
Changeversus
in registrations
(2015
2014)percentage increase.
for Top 20 Selling Models (6 years old or newer)
Registrations (2015) and Percent Change in registrations (2015 vs. 2014)
for Top 20 Selling Models (six years old or newer)
Percent change in registrations (shown as thin blue bars)
-20%
-10%
0%
10%
20%
30%
40%
0
2500
5000
7500
10000
Chevrolet Silverado
Ford F Series
Chevrolet Impala
Ford Fusion
Chevrolet Equinox
Ford Escape
Toyota Camry
Chevrolet Malibu
Chevrolet Cruze
Chrysler Town & Country
Unit regs.
% change in regs.
Ford Focus
Dodge Caravan
Ford Edge
Toyota Corolla
Chevrolet Traverse
GMC Sierra
Toyota RAV4
Nissan Altima
Honda Accord
Honda CR-V
-5000
-2500
Unit registrations (shown as wide red bars)
32
www.mada.org
Hyundai and Kia Have Largest Gains in Used Vehicle Market
The graph below shows the percent change in retail used light vehicle registrations from 2014 to 2015 for the
top 20 selling brands in the state. Hyundai had the largest increase, up 23.4%.
USED VEHICLE BRAND SCOREBOARD
Hyundai and Kia Have Largest Gains in Used Vehicle Market
The graph below shows the percent change in retail used light vehicle registrations from 2014 to 2015 for the top 20 selling brands in the
state. Hyundai
had the
largest in
increase,
up 23.4%.
Percent
Change
Minnesota
Retail Used Light Vehicle Registrations (Only includes vehicles 6 years old or newer)
2015 vs. 2014
Percent Change in Minnesota Retail Used Light Vehicle Registrations (Only includes vehicles six years old or newer)
2015 vs. 2014
Hyundai
23.4%
Kia
17.7%
Nissan
13.2%
Subaru
11.3%
Jeep
9.6%
Mercedes
8.9%
Dodge
7.7%
Toyota
5.8%
Chrysler
5.4%
Ford
5.2%
Honda
2.9%
Chevrolet
2.5%
GMC
-0.9%
Buick
-1.9%
Volkswagen
-2.5%
Mazda
-6.6%
BMW
-7.0%
Lincoln
-7.2%
Lexus
-7.7%
Cadillac
-20.0%
-9.6%
-15.0%
-10.0%
-5.0%
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
www.mada.org
33
MINUTES
Service, Parts & Collision Council
Service & Collision Car Care Education Center at the Auto Show
The MADA
Service, Parts
and Collision
Council manned
a 1,500 squarefoot exhibit at
the Twin Cities
Auto Show, which
was abuzz with
activity during
the nine-day
show. The exhibit offered a wide gamut of displays
for consumers, and industry persons alike, to see,
listen and learn about quality car care and repair. From
paint protection film (PPF) and paintless dent repair
(PDR) demonstrations, to OEM vs aftermarket part
comparisons, the Car Care Education Center seemed to
be a destination area of the show.
who presented products, provided demonstrations and
displayed enlightening venues to formulate an exhibit
encompassing the mission of the Council: Promote
dealership repair work, OEM products, and educate
consumers on quality car care.
One of the highlights of the exhibit was the car wrapped
in a patriotic theme. In honor of Military Appreciation
Night at the show, the Council held a statewide contest
for automotive and graphic design students to develop
a patriotic car wrap design. The winning design was
provided by a vet himself. Jeremy Goddard, a student
at Central Lakes College in Brainerd, is pictured with his
service dog at the car wrapped in his design. Jeremy
won a 43” TV, which he joyfully gave to his dad.
The Council’s “Service & Collision
Car Care Education Center”
almost doubled in size from last
year, thanks to the support and
participation of the Council’s
anchor sponsors: 3M, LubeTech
(Mobil 1), Volkswagen and Mopar,
“Nobody knows your car better than your dealer.”
34
www.mada.org
When impact
resistance matters.
Many of today’s vehicles are built with impact-resistant structural
adhesives as part of their weld- or rivet-bonded constructions.
3M™ Impact Resistant Structural Adhesive (IRSA) is designed to
meet auto maker requirements for repairing those structural bonds.
IRSA delivers higher impact strength than traditional bonding
adhesives where impact strength matters most.
TOTAL
CUSTOMER
CARE
Learn more at:
3MCollision.com/IRSA
3M is a trademark of 3M Company. © 3M 2016. All rights reserved.
www.mada.org
35
ROCK SOLID FINANCIALS
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Investment advisory services are offered through CliftonLarsonAllen Wealth Advisors, LLC,
an SEC-registered investment advisor.
CLAconnect.com/dealerships
612-376-4513
MADA NEWS
Scott Lambert
Executive Vice President
We’re Sorry!
Sometimes our zeal gets the best of us. In the last issue
of MADA Dealer Outlook, we used some very harsh
words - against Toyota, GM and particularly against
Volkswagen.
We are sorry that the attacks leaked over from the
manufacturer to the brand itself. Dealers rightly
identify with the brand of vehicles that they sell. Chevy
dealers live and breathe Chevys. Volkswagen dealers
pride themselves on the Volkswagen brand.
Can’t Decide? Sign up for MADA Shorts, the
emailed single-page of short summaries with
links to more information.
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Inside this issue:
CONTR OL
M O D UL E
CONTROL ARM
TAKATA PSUONRWOOERF GLASSTES PAERNELINIGNGITIAONSSWSISITCTH
IGNIT ION SW ITCH
We’re not sorry for that. MADA’s most important job is
to protect and promote the interests of dealers in their
When we attacked a brand, we in effect attacked our
never ending power struggle with manufacturers and
own members. We shouldn’t have done that and we
distributors. We’re an organization bred to fight. When sincerely apologize.
a manufacturer screws up, it’s our nature to lash outLAP BELT ANCHOR
PRETENSIONER
and lash out hard.
eet
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ada.org
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37
DEALERSHIP SHOWCASE
RICHFIELD BLOOMINGTON HONDA
Jeff Wood, President/CEO and son of founder Tom Wood,
wanted to carry on his Father’s dream and bring Richfield
Bloomington (RB) Honda into the next generation of a
dealership facility. And he did it in a big way. Owned and
operated by Tom Wood Group out of Indianapolis, IN
since 1986, the old facility in Richfield ran out of capacity
and needed to expand. Fortunately, they were able to
purchase property just west of the original store in 2013,
allowing them to construct a new store which opened in
August 2015.
The primary target of expansion was to increase service
capacity. The original RB Honda started with only 22
service bays, with offsite locations utilized overtime to
grow service capacity. The new RB Honda has 49 service
bays, but with only 2.5 acres on the building site, the
designers had to go up instead of out.
The new
facility is three
stories tall
and utilizes
an internal
ramp to gain
access to all
the floors. The
structure is not
38
typical, as it is mostly constructed with precast concrete,
including double “T” bridge deck type beams for the
flooring. This reduced the amount of posts, adding
valuable production-based square footage in Service and
Parts.
The three-story design also accommodated the desires
of the City of Richfield, who wanted the space to have a
small town, window shopping appeal and not a lot with
a “sea of cars” in front of the dealership. Tom Wood
ownership agreed and positioned the front face of the
show floor and a single row display pad right next to the
city sidewalk. The window shopping appeal isn’t limited
to passing pedestrians. The vertical design showcases
Honda vehicles for the many drivers on 77th Street and
Interstate 494 as well. A second story mezzanine over the
new car show floor provides five display units from 77th
Street and a unique two-story “jewelry box” LED-lighted
display exhibits five units on each level from I-494.
Beyond its innovative design, the facility features many
energy saving features including used oil to provide infloor heating; reusable water in the 90-foot long car
wash; and LED lighting both inside and out, some of
which is triggered with energy-saving motion sensors.
The new 117,000 square-foot building is something of
which the Tom Wood Group is extremely proud.
www.mada.org
Put your sales into
Star Tribune offers more options to drive more active
car shoppers into your showroom. So don’t get stuck
in neutral, take it to the next gear and reach over 61%
of metro adults who are ready to buy. Vroom. Vroom.
PER
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UDIE
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Rev up your advertising.
Call Steve Engelhart at
612-673-4950 or
Stephanie Rowh at
612-673-4667.
PROTECTIVE’S
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IS A NO-BRAINER.
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Backed by
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Contact Protective’s Minnesota representative,
James Mercer at 866 927 2908
visit
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email
[email protected]
or call
866 927 2908
Protect Tomorrow. Embrace Today.
TM
Vehicle Protection Plans | GAP Coverage | Credit Insurance | Limited Warranty Products
Dealer Participation Programs | F&I Training | Advanced F&I Technology
Limited Warranty Products, Vehicle Protection Plans (VPPs) and GAP are backed by Lyndon Property Insurance Company in all states except NY. In NY, VPPs are backed by Old Republic Insurance Company, Limited Warranty Products are backed by Western General Insurance Company and GAP is not available. Credit Insurance by Protective Life Insurance Company in all states
except NY, where it is backed by Protective Life and Annuity Insurance Company.

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