Post-Clunkers Second Half Becomes Huge Sales Question Mark
By Michelle Krebs September 1, 2009
The U.S. government's Cash for Clunkers program finished its job in August, boosting industry-wide U.S. sales to 1,261,799 vehicles, a 1.3-percent increase from a year earlier and a 26.7-percent boost from July, as American consumers rushed dealerships to turn in their well-used vehicles for more fuel-efficient new ones.
Automakers revisited long-abandoned, almost heady levels of sales, with the August results translating into a Seasonally Adjusted Annual Rate of 14.1 million units - equivalent to a yearly pace about five million units faster than the sales rate for the first half of this year, and much higher than the 10.5-million to 11-million-vehicle pace that industry executives still expect to prevail for the rest of 2009.
And therein lies the rub, or at least the question: After the federal Car Allowance Rebate Systems (CARS) program sucked up practically every car buyer and short-term intender across the nation over the last month or so, resulting in about 700,000 total sales, who's left to purchase vehicles for the rest of 2009 and into next year?
"I definitely think we're in a different world moving forward," said Jessica Caldwell, director of industry analysis for Edmunds.com. "September will definitely be a 'payback' period for sales. I'm not expecting over a 9.5-million [seasonally adjusted rate] for September."
'Clunkers' Be Praised
Still, OEM sales executives on Tuesday couldn't say enough about what the Cash for Clunkers program had done for their companies, their customers, their dealers, their rising production plans and their buoyant mood.
And they were mostly optimistic that the program had helped create - or at least coincided with - the return of recovery-type momentum to the marketplace for after September and beyond.
"Cash for Clunkers brought customers back to the showrooms in volumes we haven't seen for nearly 18 months," said Jim O'Sullivan, president and CEO of Mazda North American Operations. "We're hopeful that we've turned the corner and that better times are ahead for the industry."
Mark Barnes, chief operating officer of Volkswagen of America, said that the program "was instrumental at sparking the entire auto industry."
And Michael DiGiovanni of General Motors sounded a hopeful note for this fall based on the nature of those who exchanged clunkers for new vehicles under the program.
"We think [the program] drew more from used-car owners who weren't intending to buy new" vehicles otherwise," said GM's executive director of global market and industry analysis. "Hence the pull-ahead [from sales that would have occurred later anyway] and payback [in lower fall sales] will be less. Plus we're clearly seeing a strengthening economic recovery."
The Big Question
In fact, DiGiovanni said that GM's analysis showed that perhaps only 200,000 of the 700,000 CARS buyers were actually "pull-aheads" who bought in July and August under the program instead of waiting until fall.
Other company executives similarly suggested that the "payback" to future sales wouldn't necessarily be severe. "There will be some near-term payback," said Emily Kolinski-Morris, Ford's chief economist. "But there remain more than 40 million comparable vehicles on the road that continue to approach peak replacement age and will continue to sales growth in coming months."
Besides, Kolinski-Morris noted, America's underlying economy is showing signs of life, and "the outlook for positive GDP growth in the second half is growing."
Observing how sales swooned during the last week of August, after the government announced an official end to the CARS program, industry executives didn't dispute Caldwell's contention that September's sales rate might make it only into the nine-million- to ten-million-unit range.
But they stuck with forecasts made earlier in the year that sales for all of 2009 would end up somewhere around 10.5 million to as many as 11 million units. Those continued projections, in turn, suggested that CARS may have succeeded in producing a lot of excitement at car dealerships across the nation - and a more fuel-economic fleet on American roads -- but not much of a fundamental long-term spark in auto sales.
Koreans Up, Luxury Down
Another prominent feature of August sales reports was the continuing market share and sales gains posted by the Korean automakers in this market, Hyundai and Kia. Combined, they posted more than 100,000 sales, the first month the two companies ever have reached that mark in the U.S. market.
Caldwell attributed their success in large part to Hyundai's early and aggressive pursuit of CARS customers, in part by financing the government rebates up front for dealers. "That really paid off for them," she said. The two companies' combined sales increased 30 percent from their previous best combined month, June 2008.
At the same time, sales on the other end of the U.S. market, the luxury end, remained in a spotty limbo.
BMW's sales fell nearly 29 percent in August, yet Jim O'Donnell, president of BMW of North America, hailed the results because they showed "a strengthening of the premium market," while the brand's sales were compared against "one of our strongest months on record" in August 2008.
Audi, meanwhile, posted a 26-percent gain in sales, to achieve its best August sales ever, and only 10 percent of its sales that could be attributed to CARS.
But sales of Mercedes-Benz, Jaguar, Infiniti, Lexus and Acura brands all declined for the month, perpetuating questions about the long-term health of the luxury segment.
GM, Ford and Chrysler share of August sales came in at 41.3 percent.
GM: Tempered Success
GM executives couldn't celebrate the Cash for Clunkers program nearly as much as some of their counterparts because they didn't - and couldn't - benefit as much from it. The company's August sales came in 20 percent lower than a year ago, at 246,479 units.
There were a host of mitigating and countervailing factors, including the fact that GM's sales a year earlier were quite high because of rich incentives, and its fleet sales have bounced around lately.
But there was no getting around the fact that GM - distracted by its bankruptcy, trapped by a product mix that leans heavily on big vehicles - couldn't take as much advantage of CARS as Toyota, Ford, and other Japanese and Korean makers. GM's share of the 700,000 sales under the CARS program was only 17.5 percent, far under even its historically low overall 19.5-percent share of the U.S. market.
GM was "behind the curve in putting vehicles out there for Cash for Clunkers and in touting their vehicles," observed Caldwell of Edmunds.com. The company offered only a few fuel-efficient small cars, she said, "so they really didn't have much to offer the customer. People didn't really see GM as the place to turn to when they needed to buy a fuel-efficient vehicle."
The Chevrolet division nonetheless cranked out an estimable showing for CARS-driven buyers - at least on the passenger-car side of the showroom. The Aveo subcompact boomed to 12,733 units, a 159-percent leap compared with last August. And the not-getting-any-younger Cobalt chipped in with a solid 17,393 sales - a 13.8-percent gain.
The Malibu midizer scored 17,348, almost the exact number of sales as the Cobalt and good for an 11.1-percent improvement. All of Chevy's car lines remain down for the year, though, including 46.2 percent for the Cobalt, 10.2 percent for the Malibu, 37.7 percent for the Impala. The Corvette is off a visible 56.3 percent, posting just 9,210 so far in a rough-economy year; at 31,190 sales, the all-new 2010 Camaro is outselling the Corvette by better than 3-to-1.
GM's total August sales were up 30 percent over July, when only the last week benefited from the CARS program. It was the company's best month for sales since September 2008. And its incentive spending was down by about $500 per vehicle, to about $3,200 per unit, compared with July, according to Mark LaNeve, U.S. sales and marketing vice president.
Nevertheless, using its proprietary formula, Edmunds calculated GM's Total Cost of Incentives (TCI) at $3,343 per vehicle, highest in the industry.
And while GM's midsize pickups leapt up with the rest of the segment (Chevy Colorado: +12.3 percent in August), and the heavily revised 2010 Equinox compact crossover waded in swinging (+188.5 percent), the success of Cash for Clunkers didn't do a thing for GM's continued dependence on large pick-up trucks and full-size SUVs, which may have lost even more long-term favor with American consumers via the CARS program. The Chevrolet Silverado sold only 28,000 units in August compared with 48,000 a year ago, for example, and full-size utility sales were "weak," LaNeve said.
The bread-and-butter Silverado's drop of 41.9 percent isn't comforting considering Ford's 13-percent hike in F-Series sales, and those full-size Chevy SUVs were hammered, too: Tahoe was down 40.2 percent and the Suburban slid 24.2 percent and is off 40.8 percent for the year to a formerly unimaginable 22,103 sales (as recently as 2002, Chevy sold more than 150,000 Suburbans).
One other warning sign for GM's big iron might be in sales of GM's fullsize crossovers. Although the Chevrolet Traverse (launched this spring) seems strong enough with its 11,465 sales in August, sales of its other platform-badged variants are beginning to soften. Never mind the Saturn Outlook's -45.3-percent year-to-date; the once high-flying Buick Enclave was down 31.7 percent in August and now has retreated 9.2 percent for the year. The GMC Acadia was off 25.1 percent in August and has backed up 25.8 percent for the year.
Ford: Riding Momentum
For Ford, an unexpectedly strong performance in the Cash-For-Clunkers program has simply supercharged its sales and market-share resurgence of the last few months. For August, Ford reported total sales of 176,323 units, up 17 percent compared with a year earlier.
Ford executives on Tuesday were happy to tick off the company's August accomplishments: gains in retail-market share in 10 of the last 11 months; two vehicles (Ford Focus and Ford Fusion) among the top 10 sellers in the CARS program overall and record sales in August for Focus, Fusion, Escape, Edge, Flex and Mercury Mariner models. It was Ford's best sales month since May 2008.
"I'm guessing we did better [with CARS results] than most people had thought we would," said George Pipas, head of U.S. industry analysis for Ford. "We're especially pleased with our balanced performance" in sales increases among segments, including car sales up 25 percent and crossover sales up 28 percent for the month. "This will be a big differentiator of the Ford story."
Edmunds' Caldwell confirmed that Ford has built some buzz. "Everyone's talking about Ford," she said. "It's not a surprise that they did well" under CARS.
Even sales of Ford's F-Series trucks, which are updated for 2009, rose 13 percent in August, and sales of its new Transit Connect - a small, fuel-efficient purpose-built van - were 70 percent higher than the company's goal for the month.
"We are hopeful that the sales of our pickups and Transit Connect are an indication that small-business owners are seeing signs of recovery and gaining confidence in the outlook for stronger business conditions," said Ken Czubay, Ford's vice president of U.S. marketing, sales and service.
Ford also was sparked by the return of the Taurus nameplate in an all-new vehicle in July. August sales totaled nearly 2,400 units compared with little more than 300 in the prior month. "Our goal was 1,100" Taurus sales for August, Pipas said. "More and more people are asking about it."
Chrysler: Sales Down, But At Least So Are Incentives
Despite having two of the top five new models purchased by Cash for Clunkers customers, Chrysler Group LLC still saw sales decline 15 percent in August. Chrysler said 17 of its 26 nameplates recorded month-over-month or year-over-year retail sales increases, indicating the extent retail sales no longer play in Chrysler's portfolio.
Another bright spot for Chrysler: Edmunds.com data indicate the company's incentives are down - drastically. Edmunds.com's proprietary Total Cost of Incentives data shows Chrysler TCI for August was down 28 percent compared with July and a big-time 34 percent compared with August last year. Chrysler's TCI reduction, both month-over-month and year-over-year, was the largest among all automakers.
Although the Dodge Caliber and Jeep Patriot were among the top five new vehicles purchased in Cash for Clunkers transactions, neither was able to leverage that popularity into a sales increase compared with last August: Patriot was down 34 percent compared with last year and Caliber was flat; they are off 57 percent and 45 percent, respectively, through 2009.
Edmunds data also show Chrysler's car-truck sales mix in August was the year's second-lowest for cars (24 percent, exceeded only by April's 22 percent), suggesting the Cash-For-Clunkers program delivered more pickup and SUV sales for Chrysler than passenger-car sales.
Chrysler's only cars to post sales increases in August were the 300 (17 percent) and Dodge Avenger (16 percent). The only other models that did not endure sales declines: Chrysler PT Cruiser (flat); Jeep Grand Cherokee (+62 percent); Dodge Caliber (flat); Journey (+3 percent) Sprinter (+18 percent) and Caravan (+13 percent).
Outsized declines for the month came mainly from the Dodge division: Challenger (-62 percent), Ram pickup (-30 percent) and Nitro (-24 percent).
For the year, no Chrysler model has a sales gain to report, other than the Challenger, which did not have full-year sales in 2008, and the Jeep Wrangler, whose sales are flat compared with the same time last year.
Peter Fong, president and CEO, Chrysler Brand and lead executive for Chrysler's sales organization, said Chrysler's sales were strong in August and the company has ordered a production increase to replenish inventory - a rare and positive situation for Chrysler, which for two years has battled to manage bloated inventories.
"The CARS program gave a boost to the industry in August, and as a result, we've increased production by more than 50,000 units, our factories are full-steam ahead building Chrysler, Jeep and Dodge vehicles for customers and replenishing dealer inventories," Fong said in a release.
Toyota Bangs Out A Big Month
The 225,088 sales Toyota Motor Sales USA rang up in August wasn't the company's best-ever month in total (that was May, 2007's 269,023), but it was for the Toyota division's passenger cars - no small milestone when considering Toyota's long sales history in the U.S.
In fact, Edmunds.com data indicate that 69 percent of Toyota buyers in August selected cars, up from 61 percent in August 2008, a month itself reflecting a drastic shift to cars in response to last summer's incendiary gasoline prices.
In all, it was a 67 percent gain over Toyota's average monthly sales this year. Thank you, Uncle Sam and your Cash for Clunkers rebates.
"In addition to increased sales, the CARS program provided tangible benefits to consumers, dealers and industry-related businesses, as well as state and local economies, in the form of sales tax and registration income," said Jim Lentz, president and chief operating officer for TMS. "Toyota vehicles accounted for 19.4 percent of sales within the CARS program," Lentz said.
Thus the wild ride for Toyota's leader in the fuel-efficiency game, the Prius hybrid-electric vehicle. Prius cranked out 18,886 units, a 45.7-percent gain over last year - but the car remains down 20.9 percent for the year. And the Corolla was no slouch, either, racking up a 51.9-percent August gain. The big Cash for Clunkers rebate checks must have been too tempting as a "move-up" incentive, however, because the entry-level Yaris subcompact was left out of the party to lick the wounds of a 47.4-percent plunge.
Toyota's Camry large-midsize sedan benefitted to the tune of 28.2-percent gain, and even the recently dragging Scion line improved; the xD led the way with a 15.1-percent jump and the xB improved by 3 percent, with the tC dropping 28.6 percent.
On the truck side, the transactions didn't come quite so easily: smart increases of 47.3 percent for the RAV4 compact crossover and 37.1 percent for the Highlander were offset by huge plunges from the body-on-frame ilk. The FJ Cruiser led the way with a 76.1-percent shutdown and the 4Runner slid 74.7 percent, followed closely by the 74.3-percent decline for the Sequoia.
And the Tundra fullsize pickup posted another weak month, with its sales of 7,872 units amounting to a 53-percent drop. Tundra's sales for the month were effortlessly surpassed by the midsize Tacoma pickup, whose year-to-date sales now have shouldered well past the Tundra. Unless something drastic happens, Tundra will fall well short of the 100,000-unit mark for the full year.
Moreover, as with other makers's fuel-efficient models, August's hyper-injection of sales couldn't reverse Toyota's broader trend of deep declines. Exhibit A: the Prius, which despite a robust past few months (as the heavily redesigned model's availability improved) remains down 20.9 percent for the year. Every one of Toyota and Scion's passenger cars remains off by double digits through August, despite the Cash-For-Clunkers effect.
At Toyota's Lexus upscale division, the month's 18.8-percent slide likely is one Lexus will accept, given the sharp drop-offs already experienced this year. Lexus' passenger-car sales were down 26.6 percent for the month, led by a 58.8-percent slide for the GS midsize sedan (ignoring the 34 units of SC sales that amounted to an 81.1-percent drop) and a 48.4 percent decline for the LS flagship.
The truck side of the Lexus showroom slid just 6.6 percent thanks to the continuing strength of the RX crossover, surely the segment's case study in success. The RX bounded to a 7.9-percent gain in August, more than offsetting the large percentage (but low-volume) declines of the truck-based LX and GX SUVs.
Honda: 'Clunkers' Fuels Record Highs
Confirmation that a goodly number of those Cash-For-Clunkers vouchers went to Honda dealers: American Honda Motor Co. Inc. had its best-ever August - and the monthly sales figure of 151,814 for the Honda division was the second-best single month of sales in its history.
"Honda's August sales speak to the attributes customers were looking for under CARS and will continue to look for as the economic recovery takes shape," said John Mendel, executive vice president of American Honda. "The challenge will be maintaining this momentum going forward."
Honda's overall sales increase of just 10 percent reflects a 33.8-percent drop at its Acura premium division - a decline broadly in line what that experienced by other upscale brands in August, but Acura nonetheless continues to drag on Honda's sales performance.
Honda said its Fit subcompact - up a giant 194.1 percent to 13,593 sales - and the CR-V compact crossover, with a 58.3-percent jump, had best-ever sales months.
A month heavily biased by buyers seeking fuel-efficient choices was an exceptional one for almost all of Honda's passenger-car nameplates: In addition to the Fit, the Civic (which had been flagging for most of the year) increased by 49.6 percent and the Accord dropped a comparatively paltry 5.4 percent. The one casualty seems to have been the Civic Hybrid, a model whose sales appear to be going directly to Honda's all-new dedicated hybrid, the Insight. Insight, which went on sale this spring, moved a solid 4,226 units for the month.
Aside from CR-V, Honda's "trucks" didn't fare so well in August. The fading Ridgeline dropped a heady 58 percent and has sold a meager 10,494 units this year. The Pilot was off 28.2 percent and the Odyssey minivan fell 40.5 percent. Cash-For-Clunkers seems to have aided the long-in-the-tooth Element crossover, as the Element slid just 4.5 percent in August and now is outselling the Ridgeline for the year.
At the Acura unit, the only bright point for the month was a rebound for the entry-level TSX, which delivered a 7.1-percent gain, although it remains off 19.2 percent for the year. The TL and RL sedans were down 37.6 percent and 51 percent, respectively, and the MDX crossover's 43.5-percent decline (to 2,820 units for the month and just 18,760 for the year) looked comforting only compared to the dismal ongoing performance of the RDX compact crossover, which fell 56.9 percent in August and has sold a paltry 6,223 units for the year.
Data from Edmunds.com shows that Honda's Total Cost of Incentives was estimated at just $947 for the month, the lowest incentive for Honda in nearly two years And by far the lowest among the industry's "super seven" largest automakers, which averaged $2,475.
Hyundai Group: Surpasses 100,000 Sales Mark for First Time
Both Hyundai and Kia set new all-time monthly sales record, leading the Hyundai Group to shatter its previous monthly sales high by a wide margin and surpass the 100,000 sales mark for a single month for the first time in its relatively short history in the U.S. market.
Hyundai and Kia combined sold 100,665 vehicles in August, a whopping 52.1 percent increase from the 66,195 the pair sold in August 2008. The previous monthly record for the two Korean brands was set in June 2008 when their combined sales totaled 78,325 for the month.
Both brands and virtually their entire model lines were huge beneficiaries of Cash for Clunkers. Both brands have been on a roll with the focus on value during the recession. And Hyundai has fortified its brand with its Gas-Lock gas-price guarantee program and Hyundai Assurance plan that protects buyers who lose their incomes.
In addition, both brands have capitalized on the downturn to capture market share, but it is costing them in hefty incentives. Though Hyundai-Kia combined cut incentive spending by 15 percent in August compared with July, according to Edmunds.com's estimates they still spend more than their Japanese counterparts.
Edmunds.com's TCI data shows Hyundai spent about $2,958 per vehicle in incentives in August, about double Toyota's $1,543 and even higher than Nissan's $2,620. Kia's $1,849 per vehicle spent is nearly double Honda's $947.
The Hyundai brand set an all-time monthly sales record with August sales soaring to 60,467 vehicles. That represents a 47-percent increase over August 2008 and a 33-percent increase from July. Also shattering records were the Hyundai Elantra and Genesis models.
Hyundai has been on a roll throughout the year, with August marking its eighth consecutive month of year-over-year retail share gains.
"August was a shot-in-the-arm for the industry, and a great month for Hyundai and our dealers, with all-time sales records for the Hyundai brand, Elantra and Genesis," said John Krafcik, president and CEO, Hyundai Motor America.
But there will be no let up, assures Dave Zuchowski, vice president of sales. "The successful Cash for Clunkers program stimulated the auto industry in time for the summer selling season, and we will work to continue that momentum through the fall," he said. "Hyundai Motor Manufacturing Alabama has returned to a five-day work week, our inventories are replenished and our dealers' lots are filled with a broad lineup of high-value, fuel-efficient vehicles."
Kia sold a record 40,198 vehicles, up 60 percent from a year ago and 37 percent more than in July.
Kia sales were led by the Sportage, which at 7,558 vehicles saw a stunning 166-percent increase from a year ago. The Optima had a 96-percent hike in sales to 7,461 vehicles sold in August. Kia sold 6,961 Rio models, for a 94-percent increase.
"Our relative market share increase tied to the vehicles included in the CARS program is among the top three brands in the industry," said Tom Loveless, Kia's vice president of sales.
Two brand-new models - the Soul and the Forte compact sedan - also attracted buyers. Kia sold 5,751 Soul models and 4,049 Forte sedans in August.
Loveless said the Cash for Clunkers program attracted new customers to Kia who didn't necessarily want or need a new car but were enticed by the program to buy. "These buyers, often with better credit, are a solid sign of a significant positive change in brand perception and a tribute to the entire Kia vehicle line," he said.
He added that bodes well for future product launches, including the upcoming 2011 Sorento crossover, which will be built at the company's first U.S. factory in West Point, Ga.
The Hyundai Group is on course to set a new annual sales record. Hyundai sales so far this year stood at 310,706, just off from last year's 312,899. Kia sales so far stand at 216,947, up from 210,705 in 2008.
Nissan: Signs of Life
Nissan was able to take good advantage of the CARS program, with August sales declining only 3 percent compared with a year earlier, as the company sold 105,312 vehicles in the U.S. market.
The company accounted for nearly 9 percent of sales under the U.S. government's cash-for-clunkers program. It was Nissan's sixth-best sales month ever, with a very notable increase of 48 percent in sales compared with last month.
"And their sales increase was an incredible 76 percent against its average monthly results for this year," noted Caldwell of Edmunds.com.
Yet Nissan's results also presented a vast disparity between its traditional and its luxury brands. Nissan vehicles - many of them small- and mid-sized cars and SUVs - actually rose a scant 0.2 percent during the month, while sales of Infiniti-brand luxury vehicles continued their slump, declining by more than 30 percent for the month.
Even within such a good sales month, Nissan didn't post a single gain for any vehicle that didn't qualify for a CARS voucher. Nissan Versa, the sixth most-purchased or leased vehicle during the program, had a record month of 18,580 sales in August, 132 percent better than a year earlier. Sales of Rogue, a small crossover, the Sentra subcompact, and the Altima midsize sedan also increased.
Sales of the new Nissan Cube, an innovative design that is being marketed as a "mobile device" and aimed at young buyers, were an impressive 5,347 in August and brought the total for the year to 12,522 units.
Every Infiniti model posted lower sales in August than a year earlier, led by a startling 60-percent decline for the ultra-stylish Infiniti EX.
Mazda: Best Month This Year; Best August Since 2003
Propelled by Cash for Clunkers, Mazda reported its best sales month of the year and best August since 2003. Mazda's August sales totaled 26,542 vehicles, up 12.1 percent from August 2008.
"Cash for Clunkers brought customers back to the showrooms in volumes we haven't seen in nearly 18 months," said Jim O'Sullivan, Mazda North America president and CEO. "Nearly every manufacturer with a qualifying vehicle saw a lift for the month. We're hopeful that we've turned the corner and that better times are ahead for the industry."
The new 2010 Mazda3 and multi-activity vehicle Mazda5 led the way with sales increases of 33.3 percent and 44.9 percent respectively over year-ago numbers. Both vehicles set best-ever August sales records.
In fact, 58 percent of Mazda's sold through Cash for Clunkers were the Mazda3, the company's most fuel-efficient vehicle. And the government program drove Mazda5 availability to its lowest level ever, as demand outstripped supply in many areas of the country.
Also reporting strong sales in August was the Mazda Tribute, based on the popular Ford Escape, which had sales up 33 percent and its best month this year. Similarly, the Mazda B-Series Truck, based on the Ford Ranger that was also a popular purchase by clunker traders, rose 2.4 percent.
Sales of the CX-7 and CX-9 were down 8.1 percent and 38.7 percent. Still, the pair of SUVs had their best month this year.
Further deterioration in the sporty car segment pushed MX-5 Miata sales down by 30.7 percent and the RX-8 by 56.1 percent.
BMW: Clunker Traders Opt for More Mini, Less BMW
The BMW Group, which includes the BMW and Mini brands, reported its best sales month this year with sales totaling 24,343 vehicles, a -21.3-percent drop from August 2008.
The BMW brand had its best month this year sales of 19,232 units, a 24.5- percent decline from August last year. BMW car sales were off 19.0 percent; BMW activity vehicle sales were down 43.0 percent.
"We are happy with BMW sales this month because it shows a strengthening of the premium market," said BMW's O'Donnell. "On the other hand, we always knew this month would be difficult in comparison to August 2008, because it was one of our strongest months on record."
Mini sold 5,111 vehicles for its fifth best month since it came into the U.S. market in 2002. Still, sales were down 6.5 percent from last August.
"Cash for Clunkers brought some new, more pragmatic customers to Mini who would probably not have considered the brand without the program," said Jim McDowell, Mini USA vice president. "This is good and shows that for Mini, Cash for Clunkers was not just a pull-ahead of sales."
For the year thus far, BMW and Mini combined have sold 160,044 vehicles, down 26.5 percent from the 217,821 vehicles sold in the first eight months of last year. BMW brand has sold 129,176 vehicles, down 28.6 percent form 180,889 sold in the same 2008 period. Mini has sold 30,868 automobiles, a decrease of 16.4 percent compared to the 36,932 cars reported in the first eight months of 2008.
Volkswagen: Best Month Since December 2005
Volkswagen of America credited Cash for Clunkers for its best sales month since December 2005. In August, Volkswagen sold 24,823 vehicles, an increase of 11.4 percent from August 2008.
The Volkswagen Jetta posted its best sales month since December 2005 with 12,872 vehicles sold, up 13.4 percent from a year ago. Jetta SportWagen sales soared 30.7 percent from last year.
Other models enjoying a strong August were: the Routan minivan with sales of 2,098; the CC sedan at 1,980 sales, and Tiguan SUV at 1,750 sales, up 69.7 percent from a year ago. The Routan and CC were not on sale a year ago.
"The fact that Volkswagen currently has more vehicles that attain 25 miles per gallon or better on the highway than any other brand well positioned us to capitalize on the program," said Mark Barnes, chief operating officer, Volkswagen of America, Inc.
Barnes pointed out Volkswagen's diesel-powered models did so well the automaker is virtually sold out of 2009 inventory. The 2010 Jetta TDI is now available in showrooms with the 2010 Jetta SportWagen TDI available later in September.
For the year to date, Volkswagen sales totaled 158,258 vehicles, down 10 percent - less than the industry average.
Audi: No Lift from Clunkers, But Sales Still Rise
With little boost from Cash for Clunkers, Audi achieved its best month since June 2008 and its second-best August sales ever. Audi sold 8,057 cars and SUVs in August, up 26 percent from 6,406 vehicles sold in August 2008.
Audi said fewer than 10 percent of its August sales could be attributed to the government's CARS program. Indeed, luxury vehicles were largely excluded from the clunker game because many car price tags beyond the $45,000 limit or the vehicles simply aren't logical picks for consumers trading in clunkers. In addition, while European luxury makers in general boosted incentives while American, Japanese and Korean manufacturers lowered them, according to Edmunds.com data, Audi offered the lowest discounts in August.
"With each passing month it is clear that Audi is shaping the luxury vehicle conversation," said Audi of America President Johan de Nysschen. "These August results are not figments of steep discounting or other sales gimmicks. They represent the reality that the performance orientation, the leading-edge styling, the attention to detail and efficiency found across the Audi lineup resonate with the priorities set by today's luxury car buyers."
August marked the highest sales yet for the Audi Q5 crossover vehicle, launched in February. Dealers sold 1,496 Q5 models, leaving a scant 21-days supply of unsold models when 60 days is considered normal. Similarly, Q7 inventory sunk to a 29-days supply. Both are diesel powered, a feature Audi sees gaining increased interest by American consumers.
"We received some lift by bringing 2010 Audi Q5 and Q7 TDI models to market earlier than usual," de Nysschen said. "But continued high demand isn't allowing them to sit long on dealership lots."
Sales Audi A5 and S5 coupes reached 877 to set an all-time monthly record. Through the first eight months of 2009, sales of the A5 and S5 models are 49.9% higher than the same period in 2008. Audi dealers sold 44 of the newly released S5 Cabriolet models in the month, as well.
August was the best month this year for the bread-and-butter Audi A4 sedan and Avant, with 3,209 of those models sold. Another 614 of the A4 Cabriolet sold in August. The Audi A3 and TT models also achieved their best sales this year.
In negative territory is the TT, with sales down 45 percent in the month along with the A6 and A8, both of which saw sales declines of more than 60 percent from a year ago.
For the year to date, Audi has sold 52,309 vehicles, down 10 percent from 58,233 sold a year ago.
Audi is optimistic about the months ahead. At the end of August, dealership showroom traffic was up more than 20 percent from a year earlier and Internet leads were up 38 percent. That bodes well for the arrival of a host of new Audi vehicles including the S4 sedan, the S5 Cabriolet, the A5 Cabriolet, the redesigned Q7 as well as the A3 TDI, rated at 42 mpg.
Daimler: Mercedes Down, smart Up
Daimler AG reported sales of its Mercedes-Benz and smart vehicles totaled 18,734 units in August, down 10.5 percent from a year ago. Mercedes sales were down; smart car sales were up.
Mercedes-Benz had its best month this year, selling 17,112 vehicles, down 7.5 percent from a year ago. August marked the fourth month of increasing month-to-month sales. The new, ninth-generation 2010 Mercedes-Benz E-Class appears to be a hit, posting a 74.2-percent increase over last August's E-Class sales.
Other volume leaders were the Mercedes-Benz C- Class, with sales down 39.2 percent from August 2008 at 4,253 units, and M-Class, with sales up 6.0 percent to 2,577. The new GLK, not in the market last year, kicked in sales of 1,665 units.
Except for those vehicles mentioned and the GL-Clasls, which had sales down 18.7 percent, all other Mercedes models had August sales that were lower by at least 40 percent from a year ago. The R-Class saw the biggest drop with Mercedes selling only 39 of them for a decline of 91.7 percent.
Year to date, Mercedes has sold 118,428 new vehicles, a decrease of 25.3 percent over the comparable period last year.
As for smart, the one-model company had its best month since March and its second consecutive month-over-month sales increase with sales of 1,622 fortwo cars, a 14.3 percent increase from July.
Since going on sale in January 2008, smart has sold more than 36,000 vehicles.
Subaru: Amazing Momentum Continues
Subaru of America, Inc., which has bucked the downward sales trend throughout the recession, kept the momentum up again in August, recording the company's best-ever sales month and recording an amazing 52-percent sales increase of last August.
Subaru sold 28,683 vehicles in August, compared with 18,932 sales in August 2008. August sales were up 31 percent from July sales, which was the previous sales record-holder.
Models that had been doing well throughout the year did even better in August, setting new individual personal bests. The Subaru Forester had a 76-percent sales increase to 11,870 vehicles; the Subaru Impreza had a 30-percent sales hike with 6,590 sold; and the Subaru Legacy jumped 49 percent to 3,569 sales.
"While the CARS program helped fuel our August results, the fact that this is our third consecutive record month reinforces that our products have connected with consumers," said Tim Colbeck, Subaru of America's senior vice president of sales, Subaru of America, Inc. "Well before our success with the CARS program, we were having great results."
Indeed, for the year so far - a year of lower sales for most makers - Subaru has sold 143,828 vehicles for an 11-percent year-over-year increase.
Subaru is launching the redesigned 2010 Subaru Outback and Legacy models, giving the Japanese automaker "an unprecedented opportunity to gain sales and market share," said Thomas J. Doll, Subaru's executive vice president and COO.
Jaguar Land Rover: Jaguar Down; Land Rover Up
Jaguar Land Rover North America reported Land Rover sales rose in August compared with a year ago, while Jaguar sales were down by nearly a third, pushing the entire company slightly lower than a year ago.
However, on the bright side, both British brands, which are now owned by India's Tata Motors, showed sales improvement from July to August. Company President Gary Templeton said the improvement from July and small decrease from a year ago suggests "a sign of stability."
In total, Jaguar Land Rover sold 3,160 vehicles, a 5-percent decline from a year ago but a 21-percent increase from July.
Land Rover sales were 2285 units, 13-percent rise from August 2008 for its best sales month this year and a 25-percent hike from July. The Range Rover HSE and SC models, which hit 944 units in August, up 103 percent from 474 units in August 2008, led the rise. Range Rover Sport had sales of 934 units, down 9 percent from August 2008.
Land Rover will launch the new Land Rover LR4, as well interior, exterior, feature and powertrain upgrades to the Range Rover Sport and Range Rover for 2010. The 2010 Range Rover began arriving in showrooms in August; the August; the Range Rover Sport and LR4 arrive in September.
Jaguar sales came in at 875 units, 32-percent drop from August 2008 but an 11-percent gain from July. Jaguar XF sales of 609 vehicles were up 20 percent from July. In October, Jaguar introduces the 2010 Jaguar XF Supercharged version. Later in the 2010 model year, Jaguar debuts the new XJ sedan.
Year-to-date, Jaguar Land Rover sales are off 24 percent with Jaguar down 30 percent and Land Rover down 21 percent.
Porsche: 911 Saves the Day
Porsche Cars North America sold 1,526 sports cars and SUVs in August for a 9-percent increase from the 1,404 sold a year ago.
The improvement in Porsche sales, which have been pummeled of late, came on the strength of the flagship 911 model, which had its best month in nearly a year. Porsche sold 673 of them in August, up 92 percent from the 351 sold in August a year ago. Boxster and Caymen sales showed some improvement with 344 sold in August compared with 280 a year ago.
However Porsche SUV sales, which once saved the brand, are now a drag on the marque. Porsche sold 509 Cayennes in August, down from 773 in August a year ago.
Porsche's overall year-to-date sales are 12,729, down 35 percent from last year's 19,618.
Mitsubishi: Best Month Since October 2008
Mitsubishi Motors North America had its best month since October 2008, its best retail month since August 2008 and its fifth consecutive monthly increase. July-to-August sales rose 41 percent.
Still, Mitsubishi sales were off from a year ago. In August this year, Mitsubishi sold 6,813 vehicles, down 26 percent from the 9,200 it sold in August 2008.
Cash for Clunkers "lifted the spirits of the automobile industry by attracting to the showroom buyers who purchased cleaner-running, fuel efficient vehicles," in Mitsubishi's case the Lancer, Galant and Outlander, said Shinichi Kurihara, president and CEO of Mitsubishi Motors North America. "August was our fifth consecutive month of increased sales, and we are working diligently to maintain this sales growth in the months ahead."
Indeed, the Lancer had its best month since August 2008, with sales up 38 percent from July, but still down 4 percent from a year ago. Kurihara noted that the Lancer Sportback, arriving in dealerships now, will add momentum to the nameplate. Dealers sold 42 of them in August.
The Outlander had its best sales in two years. Sales rose 92 percent from July to August. Mitsubishi sold 1,887 Outlanders in August, up 68 percent from August 2008.
Galant had its best month this year, with sales up 34 percent from July. Mitsubishi sold 1,100 Galants, down 63 percent from a year ago.
Endeavor had its best month since July 2008. Month-over-month sales rose 38 percent. Mitsubishi sold 620 Endeavors, up 63 from a year ago.
Sales of the Eclipse coupe and Spyder, Lancer Evolution and Raider truck are but a fraction of what they were a year ago.
For the year so far, Mitsubishi has sold 38,127 vehicles, down 47.6 percent from 72,727 sold in the same year-ago timeframe.
Suzuki: An August Breather from Downward Slide
Suzuki sales, battered brutally in recent months, got a bit of a reprieve in August. Sales totaled 5,749 vehicles, still down from last year's 6,081, but only by 5 percent. And sales improved 39 percent from July to August.
Suzuki's performance was led by a 30-percent increase in year-over-year sales of the SX4 and a 20-percent improvement in Grand Vitara sales. The Nissan Frontier-based Equator, which was not in the market a year ago, kicked in 561 sales.
For the year, Suzuki sales have been slashed by more than half. Sales for the first eight months totaled 31,793 vehicles, down 55 percent from 70,431 a year ago. For the year-to-date, all Suzuki sales are down by 30 percent or more. -- Dale Buss, Michelle Krebs, Bill Visnic
Analysis by Edmunds.com analysts Jessica Caldwell, Ivan Drury, David Greene
Graphic by Bob Holland
Photos by manufacturers and Edmunds.com
1 - Chevrolet Aveo
2 - Ford Focus
3 - Dodge Caliber
4 - Toyota Prius
5 - Honda Fit
6 - Hyundai Elantra
7 - Kia Forte
8 - Nissan Versa
9 - Mazda3
10 - Mini Cooper
11 - Volkswagen Jetta SportWagen
12- Audi Q5
13 - Mercedes-Benz E-Class
14 - Land Rover Range Rover
15 - Subaru Legacy
16 - Porsche 911
17 - Mitsubishi Lancer Sportback
18 - Suzuki SX4
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