Thursday, January 8, 2015

Hottest (and coldest) car brands heading into 2015

Last year was big for automakers, and though some brands are leading the pack, others have a lot of catching up to do.


Car brands that are hottest (and coldest) heading into 2015

By Rick Newman

Automakers hit the gas in 2014, with the momentum likely to continue during the next 12 months. Total sales last year reached 16.5 million, the best since 2006. Forecasting firm IHS Automotive expects sales to hit 16.9 million vehicles in 2015, as a combination of job and wage growth, low gas prices and a generally stronger economy lures more buyers to showrooms.

Competition among automakers is always intense, with manufacturers constantly jostling for even slight gains in market share. To gauge which brands are the pace setters in 2015, I analyzed sales and pricing data from car-research firm KBB.com. Several brands, including Jeep, Ram Lincoln, Audi, Nissan and BMW, had great sales numbers in 2014 -- but average transaction prices were either flat for the year or lower than in 2013. That suggests sales were driven by discounts, at least in part.

The real winners are brands able to increase both their sales and prices, which shows that buyers are willing to pay top dollar for models they consider worth a premium. Overall sales in 2014 were up 5.9%, with the average transaction price up 3.2%.

The hottest brands


Here are seven brands with sales and price increases that were both above the industry average in 2014:

Subaru. Sales in 2014: up 21%; average transaction prices: up 7.1%. Subaru’s all-wheel-drive crossovers are in the sweet spot of the market right now, as buyers prefer rugged vehicles with the comfort of a sedan but the higher perch of an SUV.

The CrossTrek looks rugged, even if most people drive it on paved roads. (Photo courtesy of Subaru)

Buick. Sales: up 11%; prices: up 6.1%. This sleeper brand has finally assembled a modest lineup of entry-luxury vehicles buyers like.

GMC. Sales: up 11.3%; prices: up 5.1%. This General Motors (GM) division benefited from strong sales of big SUVs toward the end of the year, as gas prices plunged.

Kia. Sales: up 8.4%; prices: up 3.5%. The Optima sedan and Sportage crossover are big winners for this Korean carmaker.

Mazda. Sales: up 7.7%; prices: up 6.1%. New versions of the Mazda 3 economy car and the Mazda 6 sedan kept sales humming in 2014. A new version of the beloved Miata roadster will materialize in the fall, and while sales will be limited, it will enhance Mazda’s reputation for sportiness.

Mercedes-Benz. Sales: up 6.5%; prices: up 5.1%. Mercedes was the only luxury make with sales and prices that rose by more than the industry average in 2014, which shows the strength of the brand from the entry-level CLA all the way up to S Class models priced well over $100,000.

Subaru has exactly the types of vehicles buyers want right now, while Volkswagen has big but unreali …


The Mercedes CLA draws young buyers to the once-staid brand. (Photo courtesy of Mercedes-Benz.)


The coldest brands

Here are eight brands that disappointed in 2014, with sales growth and price changes that were both below the industry average in 2014:

Mini. Sales: down 15.6%; prices: up 1.1%. Mini struggled with old models in 2014, but a new Cooper for 2015 should reinvigorate sales. Mini excels at designing many appealing variants of a single platform, so watch for the rollout of numerous Cooper cousins during the next few years.


A new Cooper for 2015 will spawn an expansion of Mini's lineup for years. (Photo courtesy of Mini USA.)

Scion. Sales: down 15.1%; prices: up 1.1%. You’d probably have trouble naming a single Scion model, and that’s the problem—Toyota’s budget brand just hasn’t generated much buzz.

Volkswagen: Sales: down 10%; prices: down 0.1%. VW has big growth plans but a shortage of new models has depressed sales. A new Golf lineup for 2015 will draw more buyers, but VW won’t havenew crossovers and SUVs in showrooms until 2016 at the earliest.

Infiniti. Sales: up 0.8%; prices: up 0.1%. Nissan’s luxury brand renamed most of its models for 2014, with all vehicles now beginning with the letter Q. The old G37 sedan, for instance, is now the Q40. Buyers may have found the realignment qonfusing and opted for other brands they felt more familiar with.

Nice car. What's it called again? (Photo courtesy of Infiniti.)

Honda. Sales: up 1%; prices: up 1.6%. This usually reliable brand reported record U.S. sales in 2014, but sales growth was meager due to an unusually large number of recalls related to air bagsmanufactured by Takata, and other problems.

Acura. Sales: up 1.5%; prices: down 0.6%. Honda hopes the new TLX sedan, introduced last summer, will help reenergize a luxury division that can’t seem to catch up with Lexus, BMW or Audi.

The TLX sedan will save Acura--so the company hopes. (Photo courtesy of Acura.)

Chrysler. Sales: up 2.1%; prices: down 3.5%. Chrysler finally got a new 200 sedan last year, but the division’s entire lineup consists of just three vehicles, and some analysts think parent firm FCA (formerly Fiat-Chrysler) might retire the whole brand. If so, FCA’s five other U.S. divisions—Jeep, Dodge, Ram, Fiat and Alfa Romeo—ought to be plenty.


Rick Newman’s latest book is Rebounders: How Winners Pivot From Setback To Success. Follow him on Twitter: @rickjnewman.

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