Restore The Roar: New Car Sales Should Be Up More Than 14 Percent

August 2013 New Car Sales Expected to Be Up 14.4 Percent According to TrueCar; August 2013 SAAR at 15.75M, Highest August SAAR since 2007

TrueCar.com, company that sources, compiles, and analyzes car-buying information, has released its August 2013 sales and incentives forecast. It shows a 14.4 percent increase in new car sales during the month of August.

• For August 2013, new light vehicle sales in the U.S. (including fleet) is expected to be 1,464,214 units, up 14.4 percent from August 2012 and up 11.8% percent from July 2013 (on an unadjusted basis).
• The August 2013 forecast translates into a Seasonally Adjusted Annualized Rate ("SAAR") of 15.75 million new car sales, down less than one percent from July 2013 and up nine percent overAugust 2012.
• Retail sales are up 10.5 percent compared to August 2012 and up 11.7 percent from July 2013.
• Fleet and rental sales are expected to make up 15.0 percent of total industry sales in August 2013.
• The industry average incentive spending per unit will be approximately $2,477 in August 2013, which represents an increase of 0.4 percent from August 2012 and is down 2.6 percent from July 2013. Incentives are at their lowest percentage since January of this year.
• Used car sales* are estimated to be 3,451,179.  The ratio of new to used is estimated to be 1: 3 for August 2013.

Individual Manufacturer highlights:

• General Motors is enjoying its highest sales since Sept. 2008
• Honda's sales are its highest since August 2009
• Chrysler enjoyed its second highest sales month this year

"New vehicle sales defied their typical strong correlation with Wall Street in August and continued to post a healthy increase despite the lackluster performance in financial markets," said Jesse Toprak, senior analyst for TrueCar.com. "Small SUVs became the fastest growing segment this month, with this very functional and affordable vehicle category now making up 15.5% of all sales, up from 13.5% from a year ago."

Forecasts for the top eight manufacturers for August 2013:

Unit Sales
Manufacturer	August 2013 Forecast	% Change vs. July 2013	% Change vs. Aug. 2012
Chrysler	169,269	22.0%	14.5%
Ford	217,173	15.1%	12.6%
GM	265,369	13.4%	10.3%
Honda	156,371	10.6%	19.1%
Hyundai/Kia	121,462	5.6%	9.3%
Nissan	118,247	8.4%	20.0%
Toyota	215,413	11.4%	14.3%
Volkswagen Group	59,710	13.4%	7.5%
Industry	1,464,214	11.8%	14.4%

Market Share
Manufacturer	August 2013 Forecast	Jul-13	Aug-12
Chrysler	11.6%	10.6%	11.5%
Ford	14.8%	14.4%	15.1%
GM	18.1%	17.9%	18.8%
Honda	10.7%	10.8%	10.3%
Hyundai/Kia	8.3%	8.8%	8.7%
Nissan	8.1%	8.3%	7.7%
Toyota	14.7%	14.8%	14.7%
Volkswagen Group	4.1%	4.0%	4.3%

Incentive Spending
Manufacturer	August 2013 Incentives	% Changevs. July 2013	% Changevs. August 2012	Total Spending
Chrysler	$ 2,987	-0.7%	-8.8%	$  505,588,038
Ford	$ 2,949	-1.2%	12.1%	$  640,336,893
GM	$ 3,469	-3.4%	12.1%	$  920,612,117
Honda	$ 1,498	-15.2%	-38.1%	$  234,287,982
Hyundai/Kia	$ 1,584	-2.2%	33.4%	$  192,433,604
Nissan	$ 2,301	-10.1%	-16.7%	$  272,083,915
Toyota	$ 1,863	4.6%	-0.5%	$  401,334,151
Volkswagen Group	$ 2,461	-3.3%	17.4%	$  146,955,118
Industry	$ 2,477	-2.6%	0.4%	$ 3,622,340,527

"Despite the push to sell down older models, incentive spending has declined for its second consecutive month," said Kristen Andersson, analyst at TrueCar.com. "Chrysler hit its lowest level of incentive spending since May 2011 while also seeing double digit sales increases, as their strong product lineup continues to resonate with buyers. Honda has also slashed its incentive spending, which is down almost 40 percent from last year." 

TrueCar.com bases its forecast on actual transaction data. The transaction data based forecast is refined by other current and historical factors that impact vehicle sales, including  sales, inventory, incentives, fuel prices, and macro economic data (major stock market indexes, consumer confidence, new home starts and CPI).  TrueCar.com does not adjust for selling days in year-over-year percentage change calculations.

*Used car sales figures include sales from franchise dealerships, independent dealerships and private party sales

Restore The Roar: Manufacturing Renaissance, a five-part ebook essay series tells the story of the collapse and rise of Michigan manufacturing. For a preview, please click here.

Restore The Roar: Nissan Soars In The Americas

Nissan To Boost Americas Production Capacity To More Than 2 Million Units In 2014

Production increases, new plants driving growth

IRVINE, Calif., Aug. 26, 2013 /PRNewswire/ -- By early 2014, Nissan's production capacity will eclipse two million units in the Americas, driven by recently added capacity at its U.S. plants, as well as new facilities in Mexico and Brazil.

Site of new Nissan campus in Brazil

In response to strong growth opportunities throughout the region and in an effort to isolate the company from volatility in global currencies, Nissan is rapidly expanding its manufacturing footprint in the Americas region with an investment of more than $5 billion USD in new plants and increased production volumes. To support this aggressive growth and expansion, the company is adding more than 10,000 jobs across the region, with much of the hiring complete or underway.

Nissan has been the market share leader in Mexico for 50 consecutive months and will be further bolstered there by an all-new $2 billion USD manufacturing complex, supplier park and quality proving ground in Aguascalientes, which is nearing construction completion. During the initial phase of its development, the new complex will support production of up to 175,000 units annually of Nissan's 'B' platform products and complement Nissan's two existing Mexican manufacturing facilities in Aguascalientes and Cuernavaca.

Construction is also in progress for an all-new $1.5 billion USD manufacturing complex in Resende, Brazil, which will have annual capacity for 200,000 'V' Platform vehicles with production slated for the first half of 2014. The first plant of its kind for Nissan in South America will provide much-needed production volume to support Nissan's goal for market share growth in Brazil. In 2012, Nissan was the top-growing automaker in Brazil for the third consecutive year.

In addition, production of 4-cylinder gasoline engines for Infiniti and Mercedes-Benz models will begin in early 2014 at an all-new Renault-Nissan Alliance powertrain plant in Decherd, Tenn. The project is a joint venture with Daimler, with an installed capacity of 250,000 units per year.

Americas Region Production Capacities

Canton, Miss. Vehicle Assembly Plant - 450,000
Smyrna, Tenn. Vehicle Assembly Plant - 550,000
Aguascalientes, Mexico Vehicle Assembly Plant - 380,000
Aguascalientes II, Mexico Vehicle Assembly Plant (2013) - 175,000
Cuernavaca, Mexico Vehicle Assembly Plant - 316,000
Resende, Brazil Vehicle Assembly Plant (2014) - 200,000
Curitiba, Brazil Vehicle Assembly* - 32,000

*Production at Renault facility. Capacity figure is based on actual CY2012 production.

Restore The Roar: Manufacturing Renaissance is a five-part ebook essay series that begins with The Great Collapse, the fall and rise of Michigan manufacturing. A free preview is available by clicking here.

Last Chance Mile: The Reinvention of an American Community tells the story of how Grand Rapids reinvented itself while the rest of Michigan was crashing around it. A free preview is available by clicking here.

Nissan Creates "Taxi of Tomorrow" For New York City

Nissan's "Taxi of Tomorrow" is going to be on the streets of New York in the fall of 2013.  It is designed specifically for the streets of New York, the conditions of New York and the people of New York.

Nissan designers have even figured out a way to discourage the honking of the taxi's horn by upset drivers.

Nissan developed the new taxi, which is based on the NV200 compact cargo vehicle, to suit the specific demands of the more than 600,000 people who ride in New York City taxicabs every day.

Manufacturing of the taxi  The Nissan taxi will roll off the line looking as if it's ready to be hailed. Preparations to launch production of the taxi in Cuernavaca entailed the challenge of modifying the production line to integrate exclusive taxi characteristics without affecting production volumes and while maintaining award-winning quality records. The Paint Shop added the exclusive New York taxi yellow color and new elements to achieve a perfect under-floor seal. The plant also added an exclusive afterline to complete taxi-specific manufacturing processes such as bodylines, side door windows and the vehicle's panoramic roof.

New York's "Taxi of Tomorrow" Designed from the inside out using input from New York taxi drivers, medallion holders, fleets and passengers, the Nissan taxi features more content tailored specifically to the unique needs of New York City cab service than ever before.

Nissan created its own "New York Avenue" at its Arizona proving grounds to replicate harsh conditions of New York City streets to rigorously test the NV200 taxi so that the suspension can be tuned specifically to NYC road conditions. Additionally, Nissan hired New York City cab drivers to drive test vehicles around the city, collecting data which was then used to refine the vehicle. In total, these drivers logged more than 155,000 miles – enough to cover every street in Manhattan more than 300 times.

Standard interior features and passenger amenities include:

• Ample room for four passengers and their luggage, offering substantial improvements over current taxi models
• Sliding doors with entry step and grab handles, providing easy entry and exit 
• Transparent roof panel, presenting unique views of the city
• Opening side windows
• Independently controlled rear air conditioning
• Active carbon-lined headliner to help neutralize interior odors
• Overhead reading lights for passengers and floor lighting to help locate belongings
• A mobile charging station for passengers, including a 12-volt electrical outlet and two USB ports
• Breathable, antimicrobial, environment-friendly, durable and easy-to-clean seat fabric, simulating the look and feel of leather
• Flat, "no hump" passenger floor area for more comfortable ride

Other notable vehicle features:

• Proven 2.0L 4-cylinder powertrain, engineered to enhance the emission performance and fuel efficiency of the taxi fleet
• 150,000 mile powertrain warranty
• A low-annoyance horn with exterior lights that indicate when the vehicle is honking, so the horn is used less frequently
• A 6-way adjustable driver's seat featuring both recline and lumbar adjustments, even with a partition installed
• Unique driver's seat material and stitching to promote improved airflow
• USB auxiliary audio input and charge port for driver
• Standard navigation system with integrated rearview backup monitor
• Hearing loop system for the hearing impaired
• Driver and passenger intercom system

In addition, important safety features of the Taxi of Tomorrow include:

• Only taxi ever to be safety tested and certified with full taxi partition
• Front and rear-seat occupant curtain airbags, and seat-mounted airbags for the front row
• Standard traction control and Vehicle Dynamic Control
• Sliding doors to lessen risk of pedestrians, cyclists and other motorists getting struck by doors opening unexpectedly
• Lights that alert other road users that taxi doors are opening

Restore The Roar: Manufacturing Renaissance is a five-part ebook essay series available through Amazon and Vook.com. It tells the story of the fall and rise of Michigan's manufacturers and the new entrepreneurs leading the renaissance.

Last Chance Mile: The Reinvention of an American Community is the story of how the people of Grand Rapids created a cluster of prosperity that came to be called, Medical Mile, during the worst decade Michigan had ever seen.

Last Chance Mile: The Reinvention of an American Community is available wherever books are sold online, including Amazon, Barnes & Noble and iTunes, as well as on the shelves of brick-and-mortar stores like Barnes & Noble-Woodland Mall, Schuler Books & Music- 28th Street and West Coast Coffee on Monroe Center, Grand Rapids, Michigan.

Five Million And Counting, Chrysler's Jefferson Avenue North Plant Success Story

Five Million And Counting

Chrysler's Jefferson Avenue North Plant

Success Story Continues

By Rod Kackley

A Chrysler assembly plant that became iconic of the problems facing the Detroit auto industry in 2009 when workers were arrested for using drugs on their lunch breaks, and one worker killed another in 2012 before taking his own life, has now become a symbol of the reinvention of auto manufacturing in Michigan.

The five-millionth vehicle rolled off the assembly line inside Chrysler Group’s Jefferson North Assembly Plant in the heart of Detroit, August 13.

The 2014 Jeep Grand Cherokee Overland in Billet Silver rolled off the JNAP assembly line on Tuesday, Aug. 13 at 2:30 a.m. 


In addition to the standard Trenton, Mich.-built 3.6-liter Pentastar engine and Kokomo, Ind.-built eight-speed transmission, the vehicle has an 8.4-inch Touch Screen Radio, GPS navigation, Blind Spot and Rear Cross Path Detection, Adaptive Speed Control, leather heated and ventilated seating, Panoramic Sunroof and Quadra-Lift Air Ride Suspension.

Some 50 JNAP employees (pictured above), each with 30 or more years with the plant, were front-and- center as the 5 millionth vehicle, a 2014 Jeep Grand Cherokee Overland, was driven into the staging area and parked right next to a 1993 Jeep Grand Cherokee.


Although the facility was nearly closed in the darkest days of the Great Recession, 1,100 new employees were added to the payroll in the three-million-square-foot factory in October 2012.

Nearly 4,500 people now work inside the plant every day. In 2012, they produced more than 291-thousand vehicles.

In addition to the Jeep Grand Cherokee, Jefferson North also produced the Jeep Commander from 2005-2010 and began production of the Dodge Durango in December 2010.

The former Jefferson Assembly Plant, built in 1907 by Chalmers Motor Car Company, was twice the size of the new plant's original footprint (3.6 million square feet compared to 1.75 million square feet, respectively) and produced a total of 8,310,107 vehicles in its 83-year history.

Restore The Roar: Manufacturing Renaissance is a five-part ebook essay series that tells the story of the fall and rise of the Detroit Three, and the twenty-first century entrepreneurs who are digging new revenue streams.
Restore The Roar: Manufacturing Renaissance is available through Amazon and Vook.com.
For free previews, please go to www.rodkackley.com.

Last Chance Mile: The Reinvention of an American Community tells the story of how the people of Grand Rapids created a new cluster of prosperity, Medical Mile, during the Great Recession. 
For a free previews and to order your autographed edition, please go to www.rodkackley.com

Concentric Circle Around The Globe By Rod Kackley

Concentric Circle

Around The Globe

By Rod Kackley

“The Medical Mile (in Grand Rapids, Michigan) needs to be a concentric circle around the globe,” said one of the people I talked to in the research phase of writing Last Chance Mile: The Reinvention of an American Community.

Jerry Callahan, Van Andel Institute’s director of business development, was making the point in his rapid-fire style that the institution’s on the Mile could not limit their vision to their campus, the city of Grand Rapids or the state of Michigan.

It is a global community in which we live. And it is much of the rest of the world where manufacturers find their greatest growth markets.

Keep that in mind when you learn that Whirlpool Corporation has entered into agreements to become a majority shareholder (51 percent) in Hefei Rongshida Sanyo Electric Co. Ltd. [600983: Shanghai], a leading home appliances manufacturer based in Hefei, China.

Through this transaction, a Whirlpool Corporation subsidiary will acquire all shares currently owned by Sanyo Electric Co. Ltd. and Sanyo Electric Co. (China) Ltd., and purchase new Hefei Sanyo shares via a private placement.

The transaction is subject to customary conditions, certain termination rights, Chinese regulatory approval, and Hefei Sanyo shareholders' approval.  After the transaction is approved, Whirlpool will acquire a majority stake in Hefei Sanyo for approximately RMB 3.4 billion/USD 552 million cash, based on the exchange rate as of August 9, 2013. The transaction is expected to close by the end of 2014.  Whirlpool expects that this transaction will be accretive in the first full year of integration.

"Whirlpool has a strong presence in China's higher tier segments, this acquisition allows the company to build on, complement, and grow its position in the emerging Chinese market and to leverage our global enterprise for greater efficiencies," said Jeff Fettig, the chief executive officer and chairman of Whirlpool Corporation.  

At the same time, we are seeing a phenomenon that has come to be known as “reshoring.” 

That will be the subject of our next post on this blog.

Last Chance Mile: The Reinvention of an American Community tells the story of how the people of Grand Rapids created a cluster of prosperity, Medical Mile, while the rest of Michigan was collapsing around them.

Last Chance Mile: The Reinvention of an American Community is available wherever books are sold online including Amazon, Barnes & Noble and iTunes, as well as on the shelves of Barnes & Noble-Woodland Mall, Schuler Books & Music-28th Street and West Coast Coffee on Monroe Center in downtown Grand Rapids.

Restore The Roar: Manufacturing Renaissance is a five-part ebook essay series that examines the collapse and rise of Michigan manufacturing. It begins with The Great Collapse and is available wherever ebooks are sold online, including Amazon and iTunes.