THE MARKET IS GROWING AT A RECORD PACE — BUT NOT ALL AUTOMAKERS ARE DOING WELL
In a near parallel of last year, new-vehicle sales in Canada at mid-year 2015 are 2.9 per cent ahead of where they were a year ago. That means they are on track for a third consecutive record year, if the trend continues.
As is usually the case, however, those sales gains are not equally distributed. Most brands are taking advantage of the positive sales climate, and are doing very well. But not all. Here’s how we grade each automaker’s mid-year report card:
Acura A-
The good news is Acura’s sales at mid-year are up 8.5 per cent from the same period last year. That gain lags the average for luxury brands as a whole, but it has enabled the brand to hang on to the added tenth of market share it picked up in the latter half of 2014. Unfortunately, almost all those gains came from sales of the new TLX sedan, with not a lot of strength elsewhere. There was only a mid-cycle refresh for the compact ILX to help out in the second half.
Audi A+
Audi continues to gain momentum with sales up almost 20 per cent on top of strong gains last year. Share increased by a tenth in the second half of last year and another tenth since year-end. Most of those gains come from big increases in A3 sales, along with those of the all-new Q3 SUV. The A4 and Q5 sales have remained strong. A consistent barrage of new features keeps interest in the brand high, so there’s no sign of an imminent turnaround in fortunes.
BMW A
With sales up 12.4 per cent in the first half, and an additional tenth of share from a year ago, BMW is regaining some momentum. The 2 and 4 series additions have resulted in net gains, while 3 Series sales have also improved. The i3 and i8 are adding an eco halo to the brand. Next up is a new 7 Series. Although it won’t hit the market this year, it will further push BMW’s technology reputation. Unless there’s a major turnaround in the second half, however, chances of BMW once again challenging Mercedes-Benz for the luxury car sales title seem slim.
Chrysler A+
As it was at this point last year, FCA (known as Chrysler back then) is the big success story of the first half among the mainstream brands. It’s the clear sales leader at mid-year by more than 14,000 vehicles, and has been the top seller during most individual months. It also has gained three-tenths of share during the first six-months to top the market at 15.9 per cent. Chrysler 200, Jeep Cherokee, and Ram truck sales are the top contributors to the sales gains. There’s nothing new on the short-term horizon, however, so the second half could get tougher.
Ford B+
As it has now become a pattern, Ford’s sales fell behind Chrysler’s in the first quarter of 2015. Unlike past years, they’ve stayed there through the first half – far enough behind that it could be tough to reclaim the top spot in the second half, as has been the usual script. Ford’s sales are down 6.3 per cent from a year ago, and the Blue Oval has lost 1.3 per cent in share – the most of any automaker. Apart from the Mustang, sales for all Ford’s car lines are down, along with the whole passenger car market, but so are sales of its mainstream Escape, Explorer and F-Series trucks. Improved supply of the new F-150 could help in the second half, but the Edge is the only major new product ready to launch.
General Motors A
General Motors has made the biggest turnaround of the Detroit three over the past year, with a 7.2 per cent increase in sales and a six-tenths increase in market share in the first six months – the biggest gain in the industry. While there have been some sales disappointments among GM’s model lines, there have also been some bright spots, including the Cadillac Escalade, Chevrolet Chevelle and the new Canyon and Colorado pickups. Plus, last year’s new full-size Sierra and Silverado pickups are finally showing some strength. A new Malibu arriving this fall, followed by new Camaro, Cruze and Volt models, gives GM some meaningful momentum.
Honda A-
A year ago, it looked like Honda had got its mojo back. Now, not so much. Sales are down just 1.6 per cent at mid-year, but that decline translates to a 0.8 per cent loss of share over the first six months. Hyundai surpassed the Japanese brand for fourth place in the sales rankings for part of that period. The Civic is still the best-selling car in Canada but its sales are down, as are those for all Honda’s car models. On the truck side of the ledger, however, the 2015 CR-V is doing well, as is the Odyssey. An all-new HR-V and Pilot offer hope for better things in the second half. Plus there’s a new Civic nearing the end of the pipeline.
Hyundai B
Hyundai is almost holding its own in the sales fight, but not quite. Mid-year sales are down 4.1 per cent, costing the Korean brand three-tenths in share this year – half-a-point since a year ago. While Elantra once challenged Civic for best-selling-car honours, it’s now well back in third, with sales down by 17 per cent. Moreover, the Accent’s are off by 10 per cent. Sales of Santa Fe, Sonata and Tucson are up, but not enough to offset the Accent and Elantra decline. A new Tucson hybrid for the Sonata and tweaks to the Veloster offer hope for an improved second half.
Infiniti A-
Infiniti made big gains in 2014, and it’s been able to consolidate them in 2015. Sales are up 2.8 per cent through the first half – just about on the market average but well below the luxury-brand mean – and the Infiniti’s market share is stable. Increased sport ute sales, led by the QX60, have offset losses on the passenger car side by the Q50. There’s flashy new product in the pipeline but nothing that’s likely to alter the status quo for the balance of this year.
Jaguar B
Jaguar’s sales are down about 10 per cent. Given small overall numbers, that’s not a lot of cars. Its market share remains the same (within a tenth of a point). Sales of the F Type sports car were up a bit, while those of the other cars fell. Variations on the F Type promise to keep it relatively popular. The all-new XE anti-3 Series sedan is due here next year, but it’s likely to be more of the same for now.
Kia B
As with its Hyundai sister brand, Kia saw a slight decline in the first half, with sales down 3.1 per cent. Strong Soul sales are the brand’s bright spot. The new Sedona and Sorento and Forte are doing well but sales of other models, especially Optima, are off. But there’s a new Optima coming, which could help ignite sales later in the year.
Land Rover A+
Land Rover sales increased another 6.7 per cent, and share jumped by a tenth as the Chinese/British brand maintains its momentum. The gains came primarily from the sporty side of the product line, the Evoque and the new Discovery Sport. There’s no reason to believe momentum will be curtailed.
Lexus A+
Lexus made big gains last year and has increased the pace in 2015 with sales up by 22.2 per cent, adding two-tenths of share. Most of that increase came from two new models – the sporty RC coupe and the NX compact utility. There’s a new Canadian-built RX coming – the brand’s best-selling model – so the future is looking good for Lexus.
Mazda B
Despite widespread critical acclaim for its products, Mazda has had a tough time translating those honours into sales. Total numbers are down 3.7 per cent from last year, with an accompanying two-tenths share loss. While sales are off on all passenger cars, those of the CX-5 and the all-new sub-compact CX-3 sport utes are helping to offset those declines. The arrival of the next-generation MX-5 sports car could help turn things around in the second half.
Mercedes-Benz A+
With sales gains of 18.7 per cent and three-tenths of added share, Mercedes-Benz continues to extend its lead in luxury brand sales. Sales remain solid for almost every model with the new C-Class leading the way – up 60 per cent from last year. An all-new GLA utility vehicle is bringing in new buyers. It’s about to be followed by new GLC and GLE models (replacing the GLK and ML) so there’s little doubt that the momentum will continue.
MINI A
Mini sales tend to run hot and cold. Right now they’re hot – up 46.2 per cent from a year ago, when the brand was transitioning to a new generation of models. They’ve now arrived, at least in part, and the brand has regained the tenth of a point of share it lost. Some of the fringe variants will be dropped in the coming months but a core lineup of the most popular models will remain, ensuring some stability for this fringe-market brand.
Mitsubishi B
Mitsubishi’s sales are down another 6.7 per cent in 2015, and with them another tenth of market share is gone. But apart from the iMiEV, no single model has dropped significantly in sales, suggesting a stable core of market base. And there’s a new Outlander SUV that’s getting generally positive reviews – including a PHEV version scheduled for 2016. So there’s some reason to hope that things might get better for Japan’s lowest volume brand in Canada.
Nissan A+
As it was last year, Nissan is among the most improved mainstream brands in 2015 for sales. They’re up 13.8 per cent, and share is up 0.5 per cent in the half, second only to GM. The Micra, the all-new Maxima and the Rogue have been the main drivers of those sales increases, with only the Versa suffering significant losses. The unique Juke is holding its own as well, with a new model in the pipeline. It’s a solid product line that leaves Nissan in a good place.
Porsche A+
Porsche’s sales keep right on breaking records, increasing by 32.1 per cent through the first half. The bulk of that increase came from the introduction of the Macan utility vehicle, which is second in sales only to its big brother Cayenne. On the car side, the 911 is the top seller and the only car with a sales increase. But there’s a new Cayman that’s could change that stat, and a stream of new variants that will keep Porschephiles wanting. Don’t expect any slackening of that momentum.
Smart C-
Smart sales continue to free-fall – they’re down almost 60 per cent from a year ago, with not enough sold to register even a tenth-of-a-point of market share. It’s intended for a niche market that seems to be shrinking. A new model is in the wings —but it may be too little too late.
Subaru A+
Subaru has been resetting its own sales records for the past couple years and sales are up another 15.4 per cent through the first half of 2015, gaining another 0.2 per cent of share. The new Outback and Legacy made the greatest contribution to that increase but Impreza and XV Crosstrek also posted gains. No models suffered big declines. Even without new models, the fact that the whole lineup boasts Top Safety Pick status is likely to keep Subaru popular for the foreseeable future.
Toyota A
Toyota made a modest 2.7 per cent sales gain through the first half – just shy of the market average — but that was enough to regain two-tenths of market share, putting it back above 10 per cent. Sales of the new Camry and RAV4 are up, as well as those of Avalon, Prius, 4Runner and Sienna. A new Prius is waiting in the wings, as is a RAV4 Hybrid. Scion is introducing some new models that might give that brand a kick-start, so Toyota seems in good shape.
Volkswagen A+
Volkswagen has taken off. Sales are up 20.8 per cent from a year ago, gaining 0.4 per cent of share over the past six months. While the Jetta remains VW’s best seller, it was a four-times increase in sales of the new Golf that drove that advance, supported by increases in Beetle, Tiguan and Touareg sales. A Golf Sportwagon and Type R and some new engines will keep the lineup fresh short-term, while further downsream there are new SUVs in the pipeline.
Volvo C
With sales down another 5.6 per cent and another tenth of share gone, Volvo’s fortunes in Canada continue to worsen. The only hope on the horizon is the new XC60, which has been the recipient of some positive press. Will it be enough to turn things around? The company’s future may depend on it.
