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Some Cars Still Sell: The Few; The Loud; The Tiny

By Jim Henry | Nov 5, 2008

image Smart carIn an otherwise disastrous month for U.S. auto sales, only five brands out of 43 showed higher sales in October than the year-ago month: Audi, Ferrari, Mini, Rolls-Royce and Smart.

Audi is engaged in its biggest, boldest and most iconoclastic advertising and marketing push ever, which started this year with ads during this year’s Super Bowl, the mother of all big-splash advertising. Audi is trying to knock BMW, Mercedes-Benz and Lexus off their pedestals. U.S. sales for the Audi brand were up a thin 0.3 percent for the month to 7,443, according to AutoData Corp.

Year to date, Audi sales were down 3.5 percent, to 73,260. That’s less of a drop than those three chief rivals – especially Lexus, which was down 18.3 percent year to date, to 220,502.

Ferrari’s U.S. sales were up 44 percent in October to 108 units. With such small numbers, a single month can mean outsized percent changes. Year-to-date sales through October are probably a better indication, and those sales were down 2.6 percent to 1,342. That’s still far better than the mass market is doing.

Rolls-Royce sales were also up 75.9 percent in October, to 51 cars, according to an AutoData estimate. Year to date, Rolls-Royce’s U.S. sales were up  32.4 percent, to 339. Rolls and Ferrari both say they purposely build fewer cars than they could sell, so the scarcity keeps them attractive to their kind of buyers.

U.S. sales for BMW’s Mini brand were up a big 56.4 percent in October to 5,272. After 10 months, 2008 sales were up 30.2 percent to 45,966. The tiny Mini Cooper and a couple of new, bigger and more functional variants are riding fuel efficiency to bigger sales. (BMW owns both Mini and Rolls-Royce.)

The smallest vehicle of all, the Smart car, accounted for sales of 2,236 in October. Year to date, Smart sales were 20,392. U.S. sales began in February 2008. In a recent presentation, Roger Penske, chairman of Penske Automotive Group, said his biggest problem with the Smart brand right now is trying to get more cars. Penske has the U.S. franchise for Smart.

Other brands wish they had Smart’s problem. Overall, U.S. sales for the month were down 31.9 percent to 838,156. Year to date, U.S. sales were down 14.6 percent to about 11.6 million.

Considering how well Smart and Mini are doing, you would think Toyota’s Scion brand would be doing well, too, with its small-car lineup. But Scion sales were down almost 40 percent in October, and down 6.4 percent year to date. Meanwhile, the Toyota Yaris, which arguably fits the Scion image, seems to be doing what Scion is supposed to be doing, only it’s a Toyota.

Scion is designed to appeal to younger buyers, but parent Toyota’s demographics are older, and different Scion models attract different buyers. Toyota has a well-earned reputation in the auto industry for learning from its mistakes, and Scion is looking like a mistake, at least as it stands today. It will be interesting to see what eventually happens with Scion.
 

Jim Henry has been writing about the auto industry from a business perspective for more than 20 years. He is also a member and past president of the New York-based International Motor Press Association.

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  •  
    1

    theDoctor912

    11/06/08 | Report as spam

    RE: Some Cars Still Sell: The Few; The Loud; The Tiny

    The Domestics need more than $52 Billion to re-tool thier fleets. Rick Waggoner will spend his share of that walking to the drinking fountain and back.

  •  
    2

    MasterJames

    11/06/08 | Report as spam

    RE: Some Cars Still Sell: The Few; The Loud; The Tiny

    Why didnt the big 3 learn a lesson from the 70's? Why did the SUV become so popular? Especially in the nation with the highest developed roadways, where the off road capbility is not needed and not used. Yeah Toyota for sticking with the hybrid but lets get going on fuel cell and elimination of carbon fuel dependency.

  •  
    3

    dbianco

    11/14/08 | Report as spam

    RE: Some Cars Still Sell: The Few; The Loud; The Tiny

    The big three don't need to retool to get out of their financial bind. They do need to retool to make better vehicles, which I think they can do if their businesses weren't saddled with "non productive" obligations.
    They need to restructure their UAW contracts and pensions. I don't think it is right to prop up these businesses with US tax dollars.

    Toyota and other makers build a lot of vehicles here in the US and have more than their share of SUV's. They aren't crying.

    BTW, on fuel economy, My 1998 Corolla LE w/ 5spd got 41 mpg. The same as a Smart fourtwo. Which would you rather drive? My current ride, an 03 Acura CL, gets 29 mpg hwy! If we all learned how to drive like Europeans (think manual transmissions) we'd save a lot more than some giant retool to econoboxes. We switched to them in the 70's, anyone want to go back to Festivas, Chevettes, and Omnis? I sure don't.

  •  
    4

    Chas123

    02/21/09 | Report as spam

    RE: Some Cars Still Sell: The Few; The Loud; The Tiny

    My requirements for a new car:
    less than 2800 lbs
    2.0 liters or less
    6-speed manual
    4 wheel disc brakes

    I only found one car (I can get in US) to meet this: Mini Cooper. So I bought a 2007. I can get 50mpg on my trip meter if I stay at 55mph.
    Other car considered: Honda Fit, but only 5 speed and rear wheel drums. Too bad, great car!

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