Express Your True Intent

Tell customers upfront: "I don't know if there's a fit between what you need and what I have right now, but I'm hoping we can explore that in more detail during this meeting."

Or: "In the end, I hope that we can mutually decide if there is a reason to move forward. If not, that's fine, too, and I hope you'll feel comfortable telling me so."

This advice runs counter to 90 percent of the approaches I see. But then again, maybe that's why only 10 percent of salespeople are top performers.

Try it yourself a few times, and you'll be amazed at the response you get.

Travelers Increasingly Choose Luxury in the Sky

Travelers increasingly are splurging in the air and scrimping on the ground.
A new American Express Business Insights study finds that spending on first- and business-class airline tickets increased by 9.1% and 5.4%, respectively, in the third quarter. But on the ground, travelers spent more of their dollars -- an additional 10.5% -- on economy lodging vs. only 2.2% more on luxury hotel accommodations in that time.

The reason for the seemingly bipolar spending: A growing frustration with flying and an improvement in the quality of economy lodging, industry analysts and travelers say.

"It really speaks to the fact that (consumers are) so concerned about the airline experience that they're willing to make the trade-off," says Maryam Wehe, senior vice president of hospitality at Applied Predictive Technologies, a consulting firm.

The spending trend applies to traveling for business or leisure, the study indicates.

Frequent traveler John Harding, a family law attorney in Pleasanton, Calif., says he doesn't mind paying more to fly business class. But when it comes to lodging, he's looking to save.

"It's a whole lot more miserable for me to spend five or 15 hours on an airplane in economy than for me to spend a couple of days in a budget hotel," Harding says.

Harding follows the same pattern whether flying for business or pleasure. He recently spent $1,100 each for business-class tickets to Hawaii for himself, his wife and two teenage children. But he spent less than $200 a night for the hotel.

Usually, he says, he tries to keep the nightly hotel bill under $125. "The only time I spend in a hotel is when I'm sleeping," he says. "I don't need all the accoutrements."

That seems to be the case among both affluent and average-income travelers. The American Express study found that midscale and even upscale hotels, the second-highest category, lost favor among all types of travelers, with declines of 3.4% and 3.9%, respectively.

"The most pronounced trend we're seeing is 'luxury or value,' which also speaks to the barbell effect apparent in travel -- and other sectors -- wherein consumers selectively choose either high-end or low-cost options, squeezing out the midtier providers with flat or declining spending growth," says Ed Jay, senior vice president of American Express Business Insights.

Other frequent business travelers say they're doing the same thing.

"A good comfortable bed and shower, the ability to work and get food and drink when needed works for me," says Stephanie Dickey, who lives in Richmond, Texas, and works as vice president of sales for an import company.

The upswing in business travelers opting for premium seats may also be attributed to companies loosening their policies on letting employees fly first or business class as the economy has improved.

According to a Global Business Travel Association report, just 42% of companies banned premium-class air travel this year compared with 47% last year.

And, analysts say, business travelers often may have had no choice but to upgrade their seats. In 2009, the economic downturn and high fuel costs forced airlines to cut flights.

Business travel has rebounded, but airlines have been slow to add flights, says Joel Wartow, senior director of the Solutions Group for Carlson Wagonlit Travel, a corporate travel agency.

(Source: USA Today, 12/13/11)

Gen Y, Boomers on Same Smartphone Page

Boomers...they're just like Millennials, at least when it comes to smartphones.

According to research commissioned by Consumer Cellular (which is the official cell phone plan provider for the AARP), Boomers use their smartphones in much the same way that younger customers do.

One survey conducted by the company found that 90% of current 40-plus smartphone owners taught themselves the features and functions of the device, and nearly 60% cite email as the most-used app on their phones.

The survey also indicated that Boomers wanted to use their phones to access the Internet as much as younger consumers. A full two-thirds of the respondents said they use the phone's WiFi features to connect to the Internet.

According to the survey, 64% of male smartphone owners and 48% of female smartphone owners most frequently visited news Web sites (although men were three times more likely to visit sports Web sites, while women tend to visit social media websites).

Meanwhile, a quarter of them have given up their landlines in favor of cell phones. "These surveys show that Boomers are as interested in the latest phones and technologies as younger generations," said Consumer Cellular CEO John Marick, in a statement.

(Source: Marketing Daily, 12/23/11)

Auto Sales Could Hit 14 million in 2012



Auto sales could hit 14 million in 2012.

Analysts Cite Easier Credit, Aging Fleet

Rising employment, better credit availability, new products and urgency to replace aging vehicles will drive U.S. auto sales higher in 2012, forecasters say.

Sales predictions from 11 independent analysts ranged from 13 million light vehicles (Wells Fargo Securities) to 14 million (Morgan Stanley). The average outlook of 13.6 million would be up 6 or 7 percent from this year's sales, which are likely to finish between 12.7 and 12.8 million units.

That 1 million unit spread in forecasts is narrower than the 1.5 million spread among 2011 forecasts by seven analysts a year ago.

All the analysts expect as much disruptive and unsettling economic news in 2012 as there was this year. But they say American auto buyers don't scare as easily as they did three years ago, when the financial crisis hit.

Crisis-jaded consumers have become less likely to change car-buying behavior based on economic news -- good or bad, says Alec Gutierrez, senior market analyst for Kelley Blue Book.

Gutierrez noticed the change in summer during the congressional debt-ceiling standoff that triggered a cut in the U.S. credit rating.

"The Dow fell 1,500 points -- and car sales stayed smooth and consistent," he said. "The American consumer has seen so much gone wrong. If they have to buy a car, they will."

Economic ups and downs won't greatly alter 2012 auto sales, said Jeff Schuster, top forecaster of the Americas for LMC Automotive, formerly a unit of J.D. Power and Associates. He forecasts sales of 13.8 million.

A sharp European recession would trim 2012 U.S. light-vehicle sales by no more than 300,000, Schuster said, while a U.S. economic surge might add 200,000 units. More important are pent-up demand, larger inventory and growing credit availability.

"So 2012 depends on those positive trends and the will of consumers to replace vehicles," he said.

Jesse Toprak, vice president of TrueCar.com, said: "Consumers are changing their attitude. Many are comfortable buying a car even though there is no clarity on the economy."

Even relative pessimists say U.S. consumers are harder to scare.

"Consumers are feeling insulated from bad news and secure in their own jobs, so pent-up demand has been driving sales," said Mike Jackson, head of North American auto forecasting for IHS Automotive, who sees 2012 sales at 13.3 million. But Jackson worries that if conditions worsen, particularly if Europe's debt crisis affects credit availability in America, "then consumers will once again postpone purchases."

Most forecasters minimize the odds that troubles in Europe will hurt U.S. auto sales. Polk's Germany-based analysts, for example, compare the debt-crisis debate there to the August U.S. debt-ceiling squabble, said Anthony Pratt, Polk's director of research, Americas.

"There will be lots more noise yet, but in the end it'll get done," Pratt said.

Paul Taylor, chief economist for the National Automobile Dealers Association, says that if European sales falter, U.S. shoppers could benefit.

"German automakers will target the U.S. market to sop up excess capacity," Taylor said. For the same reason, he said, Asian automakers would boost shipments to North America, probably triggering higher incentives and sales.

The increase in sales will be mirrored by a rise in North American production. In fact, four forecasters project the same North American light-vehicle production next year: 13.8 million, up from about 13.0 million this year. That's about the same rise as U.S. sales.

The four prognosticators are IHS Automotive, LMC Automotive, NADA, and Polk.

Most forecasters see sales momentum accelerating in the second half of 2012.

Adam Jonas, top global auto analyst for Morgan Stanley and the most optimistic forecaster at 14 million, expects the seasonally adjusted annual sales rate -- which has been slightly above 13 million since September -- to fall back into the high-12 millions in the first quarter and then start to build.

"We expect a slow start" in 2012 once a flurry of Japanese catch-up buyers eases and because of the end of the accelerated-depreciation (business tax rule that has boosted truck sales) on Jan. 1," Jonas said. "Then the SAAR will improve to the 14 million level by May or June and exit the year in the high 14s."

Forecasters said the recovery of auto sales, from a low of 10.4 million in 2009, likely would continue the slow pace into 2012. The economic fundamentals most closely tied to auto sales -- personal income, unemployment rate and housing starts -- are still weak.

But other factors are helping sales, especially the need to replace America's aging vehicle fleet. The average age of vehicles on the road has risen to 10.7 years, up from 8 or 9 years during most of the past decade, said Tom Kontos, executive vice president of customer strategies and analytics for auction house ADESA.

"Americans have gone without for a very long time," he said. "'I need a car' is the biggest reason for optimism."

Morgan Stanley's Jonas cited higher leasing rates, new model launches and better credit availability.

It's no longer difficult to finance new-car buyers at Egglefield Ford in Elizabethtown, N.Y., said owner Dennis Egglefield.

"A buyer with a 620 credit score can get a loan in the 4 percent range," he said. "Lenders are actually trying to do some business."

------------------------------
(Source: Automotive News, 12/26/11)

Last-Minute Hotel Reservations on the Rise

Smartphones are empowering a segment of hotel customers often overlooked by the industry: last-minute buyers who aren't traveling.

Hoping to draw impulsive buyers addicted to daily coupon alerts, hotels and online travel agencies are introducing a flurry of new specials and features targeting those who book a room locally on the day of the stay.

They include couples celebrating anniversaries; long-distance commuters working late; people without electricity; travelers whose flights are canceled; and suburban deal seekers who can't resist a 30% discount at a fancy downtown hotel.

Orbitz, which launched its Orbitz-Hotels app for iPad in the summer, says 65% of its mobile bookings are same-day reservations (vs. 14% on desktop). Orbitz also recently launched a redesigned mobile website that includes a new tonight-only deals feature.

Hotel Tonight, an app featuring daily deals from hotels cutting prices by at least 20% for the night, is one of the most popular travel apps, with more than 800,000 downloads.

Priceline launched its Tonight-Only Deals feature in October, selling discounted deals from hotels that disclose their names. (Priceline's name-your-price auction doesn't reveal hotel names.)

About 60% of mobile bookings are for the same day, says John Caine, Priceline's senior vice president of marketing. "There's a certain portion of travelers who don't like planning," he says.

"In Connecticut, more than half the people were without power for days and days" after an October snowstorm, says Priceline CEO Jeff Boyd. "We literally watched the hotel reservations light up on our mobile devices."

The hotel-tonight trend is part of a broader buy-now shift in the economy enabled by mobile technology. But hotels, especially independent properties, are willing to participate in this new sales channel because about 40% of rooms on average go unsold each night.

Hotels also like the feature because they don't have to commit a minimum number of rooms, says Sam Shank, CEO of Hotel Tonight.

"Technology is making it easier to fulfill the need that's been out there," says Andrew Kauffman, vice president of e-marketing at Marriott.

About half of Marriott's mobile bookings are same-day reservations, he says.

Large hotel chains are also concerned about any new technology that might detract from a hotel stay being "an amenity-driven, emotional experience," Kauffman says. "We don't want to make it solely about price. It's undermining all that we do that makes hotels great."

(Source: USA Today, 12/08/11)

Top Restaurant Marketing Trends for 2012

Marketing Agency Predicts Ways to Tap 'Influencers' to Drive Traffic

With the battle for market share expected to get even tougher next year, restaurant operators will have to be smarter in how they target "influencers" -- people others turn to for restaurant advice -- to drive traffic.

So says Carin Galletta Oliver, president of the San Francisco-based world-of-mouth marketing agency Ink Foundry, who predicts six restaurant marketing trends for 2012 -- plus one trend she contends restaurant operators should rethink in the new year. Ink Foundry has worked with restaurant brands such as Bonefish Grill, Fogo de Chao, California Pizza Kitchen, Rubio's Fresh Mexican Grill and Carl's Jr.

Consumers are growing ever more selective about restaurant choices as they cut back on dining out occasions, Oliver said.

"They're going to want to feel they're making a safe choice," she said. "And that puts more pressure on restaurant operators to make a connection."

Oliver predicts five key tactics restaurant operators will use next year:

Data. The number of tools that allow restaurant operators to collect information about social media, public relations, e-mail marketing and advertising is growing. Savvy restaurant operators are also collecting data on their customers in various ways.

The key, however, will be how well restaurant operators integrate that data and develop a more holistic analysis across all platforms.

Most restaurants keep data in separate silos, Oliver said, thinking of marketing, public relations and influencer relations as separate departments.

"You need to break down those walls," she said, and merge that information to more effectively mine insights.

Identifying and activating influencers. Restaurant operators tend to define their customers in demographic terms, but today's restaurant influencer is likely to defy or transcend more traditional demographic characteristics, like income level, gender or age.

A powerful restaurant influencer today, for example, might be a young woman who traveled through Europe, living in bargain-rate hotels so she could spend more money on high-end restaurants.

"If you looked at her on paper, she probably wouldn't be on your list" based on demographics, said Oliver. "But if you listen to her conversations, you'd realize she's in your restaurant five times a month and spends more money" than the average diner.

Those are the people who are driving restaurant recommendations these days, Oliver said, and restaurants next year will be developing tools to encourage those people to spread the word about their brands.

"We need to identify those folks and create programs for them so they can more easily pass along information to friends and family," Oliver said.

Some restaurants, for example, have used gift certificates given to specific influencers to share with friends and family members. "That's like a third-party endorsement from someone they really trust," Oliver said.

And as gift certificates become more available in digital form, restaurants can track how they're used, who is sharing them and their impact.

Signature items. Most restaurants have a signature item or two that stands out, but Oliver sees the role of the signature dish becoming increasingly important.

Having a great signature dish is one way to offer influencers a "wow experience," Oliver said. "It gives them something to tell their friends about."

It also gives people something to search, she said.

Consumers tend not to search online for generic terms like "steak restaurant." Instead, they'll look for where they can find a great macaroni and cheese dish or taco.

Oliver noted the Bonefish Grill chain, which is known for its Bang Bang Shrimp appetizer, an item that creates positive chatter on Yelp.

"It's extremely challenging to sway diners from one restaurant to another, but a great signature item has the power to do it," she said.

Loyalty programs look to gaming. Loyalty programs are effective tools for driving traffic, but next year Oliver predicts more restaurant operators will be integrating aspects of social gaming -- offering rewards for certain actions, like referring friends or multiple visits.

Rather than offering guests nebulous titles, like the mayors of Foursquare, Oliver said restaurants will offer more tangible offline incentives for participation in loyalty games.

One-to-one accessibility. Restaurant chefs used to stay closed in their kitchens, but the age of social media has allowed those who cook to engage with those who eat in ways that were formerly impossible.

In 2012, however, Oliver predicts that customers will be demanding even more direct interaction with chefs, both on and offline -- and not through an intermediary on the marketing team.

Expect to see personal messages directly from the chef to his or her best customers informing them of menu changes, nightly specials and suggestions based on past orders, Oliver said.

"As chefs get more comfortable with being in the limelight and with using technology, we'll see even more engagement," she said.

Coupon personalization. In 2011, many restaurants experimented with social coupon sites, such as Groupon or LivingSocial, with both positive and negative results, Oliver said.

Next year, Oliver predicts restaurants will continue to experiment with social couponing, but they will do so with more realistic expectations. They will also look for ways to have more control, to customize the offers and to ask for more data on results.

Oliver said more restaurants will use their customer lists to promote such social coupons, focusing on top influencers to provide a value-added experience and reward pass-along recommendations.

More generalized coupon seekers "tend to just come for the coupon and never come back," Oliver said. "And you can't upsell them."

Search local. Allocating resources to enhancing local search engine efforts is not likely to drive traffic, Oliver said.

Surveys by Ink Foundry have found that consumers tend not to select where they dine out based on online search engine results, she said.

Word of mouth is far more effective, Oliver said. Once consumers have a recommendation from an influential friend or family member then they turn to sites like Urbanspoon or Yelp to look up information.

Restaurants may be better off spending marketing dollars on identifying and courting those influential guests, rather than pouring dollars into local search enhancements.

"You want a well-rounded approach," Oliver said. "Remember, most influence happens offline."

(Source: Nation's Restaurant News, 12/19/11)

Competing Against Yourself

The truest measure of your success is not whether or not you're better than everyone else, but if you are better than YOU used to be!

You can be better than everyone else and still be WORSE than you used to be, which is no reason to beat your chest in pride.

Remember: Your objective is not to become successful and then let your pat on the back turn into a massage. Rather, your objective should be to strive to reach your maximum potential.

As long as you continue to grow, you will never reach your maximum potential. It is an endless journey. But it's the journey that keeps you moving; stretching; learning; hungry and humble.

Consumers look to help good causes with gifts

For some shoppers, a chic cashmere scarf has to be more than comfy and attractive neckwear to be plucked off a store shelf this holiday season.

They need to know that the wooly wrapping was stitched in America (or somewhere that supports free trade), and that part of the purchase price benefits charity. For good measure, the accessory should also somehow reduce the buyer’s carbon footprint.

The ranks of such cause-conscious shoppers are growing, retail analysts say. They are looking for more than good prices and quality - seeking gifts that are made locally or sold by small businesses, made under sustainable or environmentally friendly conditions, and benefit someone besides the recipient. The movement is being driven by heightened shopper awareness, wariness of conspicuous consumption, and the popularity of websites promoting informed giving.

“There is a pervasive sense that people want to try to give back in a world that feels increasingly chaotic and out of control, even when it comes to shopping,’’ said Jon Carson, chief executive of BiddingForGood in Cambridge, a two-year-old online marketplace that combines shopping and charity.

Nonprofits, schools, and charities can list items they want to auction on BiddingForGood’s site. The company says 91 percent of sales proceeds go to the organizations.

“There is angst around overconsumption and people want to shop for gifts with a purpose,’’ Carson said. “It makes people feel less guilty about spending.’’

This year, Patty Levy, of Lincoln, used BiddingForGood to do her holiday shopping for the first time. She scored a pair of $20 silver-and-turquoise earrings for a friend and a $345 baseball for her husband and son that was signed by Red Sox legend Carl Yastrzemski. Her purchases provided funds for an educational nonprofit in New York and a community organization in California.

“I always love sharing where gifts come from. And this is more meaningful - not only is it a gift, but is also helps out an organization,’’ Levy said.

Kara Iskenderian knocked out her holiday shopping earlier this month at the OneWorld Global Crafts Bazaar at Tufts University. All the net proceeds from the sale of local and global handmade products benefited GoodWeave, a nonprofit based in Washington, D.C., that works to end child labor in the carpet industry and to offer educational opportunities to children in South Asia.

At the OneWorld bazaar, the college freshman bought three fair trade woven scarves for $12 each for her mother, sister, and best friend, along with beaded jewelry for her aunt.

“I won’t shop at places like Walmart. But trying to buy gifts that are socially conscious and sustainable can be more difficult because you have to go out of your way to find options,’’ she said. “I think it adds extra meaning to the gift so it’s worth it. And they’ll be proud to wear it.’’

Vincent Kasten, a sustainability specialist at retail consulting firm Kurt Salmon, said the combined growth of social media and online shopping has made it easier for merchants and nonprofits to tap into the cause-conscious movement as it becomes more mainstream.

“It’s a multiplier effect, with more people becoming aware and more people getting involved in this type of activity,’’ Kasten said.

The Clear Water Carbon Fund in Maine recently launched a program that allows people to purchase trees for $6 that will be planted in either Maine or Vermont to help address greenhouse gas emissions. The organization marketed the trees as holiday gifts this season with the option to send a personalized note to the recipient. Just in the last month, the group sold more than 250 trees as presents - and 11 of them were purchased by Deb Harrison of Dedham.

Harrison, who teaches a class in environmental sustainability, set aside her usual gifts of paperwhite bulbs or homemade food in order to give the trees this year.

“Everyone does not need more stuff, even for the holidays,’’ Harrison said. “I think it’s the right thing to do and something my friends and kids would appreciate. It’s a way of sharing your own passion in way that matters.’’

Jenn Abelson-The Boston Globe

GM’s Chevy Eyes One Of 35 Indie Films As A Super Bowl XLVI Commercial

General Motors division Chevrolet has for the past few months been soliciting from filmmakers worldwide submissions for an ad that could potentially run on NBC during Super Bowl XLVI.
Chevy has closed the competition but opened another: People can visit a dedicated Web site to vote for their favorite.

In addition to getting a sneak peek at at a possible Super Bowl spot, visitors to the site have the opportunity to win up to $10,000, which is part of a larger $15,000 purse being offered by the automaker for watching and sharing the entries. (Full details here.)

GM is planning to have five 30-second spots on Feb. 5, one of which will go to the winner of this competition. Ad time has been selling for upward of $3.5 million for a 30-second space, per analysts, but companies with multiple spots usually pay a lower bundle rate.

The Chevy Super Bowl event, under a “Chevrolet Route 66” umbrella, is running now through Jan. 26, 2012. After that, Chevy execs will look at the films that have received the most views to help make their final selection.

Chevrolet has been working with Microsoft on the project.

The company said it received nearly 200 submissions from 32 countries, including Brazil, Canada, China, France, Germany, India, Mexico, the United Kingdom and United States. Chevy said that growing percentage of its sales are coming from international car buyers and is using this promotion, in part, to strengthen those bonds.

Among the 35:
• “Happy Grad”: Parents are giving their son a mini-refrigerator as a high school graduation present for his college dorm. He and his friends mistakenly think he’s getting a 2012 Camero. “Best gift ever!” they all yell as a neighbor, who actually owns the Camero, drives away.

• “Miss Van Der Volt”: A woman lets her friend sit inside her new Chevy Volt. Once inside, the friend envisions herself as a super heroine – Miss Van Der Volt. After she gets out of the car, the Volt owner’s other friends fight for their turn behind the wheel.

• “Dogs And Horses”: In a similar vein, a dog eyeballs a new black Camero, but not for the tires. He pictures himself behind the wheel, head out the window, speeding down an open highway. The dream ends when the car’s owner catches the pooch behind the wheel. Turns out this is not the first time. “George,” yells out the car owner, “you dog’s sitting in my car again!”

• “Cindy, I Love You”: A young man is seemingly seeking to cross items off of his bucket list. Next up: Telling a former girlfriend that he loves her. He drives to her wedding ceremony in his Chevy, bursts through the chapel door and yells, “Cindy, I love you!” The woman, in her wedding dress, replies, “My name is Candy.” The awkward moment becomes sentimental when it turns out the guy was completing a list for his deceased friend. “You had the worst handwriting ever,” the guy says about his friend as he moves on to the next task.

• “School’s Out”: A grade school teacher has the rapt attention of his class, even after the bell rings and the weekend arrives. The kids even follow him out of the classroom and to the parking lot. Turns out that he has a new Camaro. When he gets in and revs the engine, all of the kids go “Oooooh.” Then one of the students says to the other, “When I grow up I want to be a teacher.”

BigLeadSports : Business, NFL, Super Bowl Ads, Super Bowl XLVI Barry Janoff

Look for Hefty Holiday Spending on Local TV

Retailers are booking lots of TV ad time to lure shoppers.
The outlook for consumer holiday spending isn't particularly strong this year, with forecasters predicting growth of 2.5 to 3 percent over 2010, about half last year's growth rate.

But spot television spending should be very healthy despite that lukewarm forecast, ending a string of months of flat or declining spending following a softer-than-expected spring.

The reason is simple.

Shoppers still feeling the pinch of a down economy are looking for the lowest prices, and retailers are competing fiercely to reel them in with gimmicks like midnight openings on Black Friday.

They're willing to use any means to get consumers into the stores.

"Fourth quarter rates are up, and we're anticipating sell-out conditions in some markets," one East Coast media buyer says.

That will be a big change from recent months in spot TV. During the first half of the year spot spending fell 1.2 percent, according to Kantar Media data analyzed by the TVB.

Spending took a hit during second quarter when Japanese auto companies largely suspended advertising in the wake of the earthquake and tsunami that hit their country, leading to production and supply problems.

That led other automakers to pull back as well because they had less competition. The lack of auto advertising meant an excess of inventory of some markets, where pricing flatlined or dipped.

But things are looking better for fourth quarter, especially the final six weeks of the year.

Many retailers, including department and discount stores, have already been advertising their holiday sales for weeks. Pre-holiday sales have also been more popular this year, prompting more spending to advertise these new offers.

Clothing retailers have been particularly active, note buyers, and electronics should be growing as well as retailers battle to offer better prices on holiday must-haves like tablets, smartphones and TVs.

Also helping the fourth-quarter spot outlook is a small influx of political spending ahead of the surge of campaign ads in the first quarter.

Only a handful of states with early primaries will benefit from this spending, but they are important states that will set the tone for the later primary season, including Iowa, New Hampshire, South Carolina and Florida.

In first quarter, when many states will see the start of the lowest unit rate political window, political should pick up for the post-holiday decline in retail spending and keep spot TV spending on the rise.

ZenithOptimedia predicts that spot TV spending will be up 8 percent next year, to $22.6 billion.

Toni Fitzgerald - Media Life

Chrysler extends streak, Toyota ends slide; industry looks up

Chrysler continued its year-long surge, and Toyota had something to crow about for the first time since spring.

Those factors combined to help U.S. light vehicle sales jump 14 percent in November and produce the strongest selling rate of the year.

"I've been waiting to say this for seven months," Toyota brand General Manager Bob Carter said in a conference call. "For the first time since the earthquake and tsunami in Japan disrupted worldwide automotive production, Toyota sales were up last month."
Among the highlights:

• U.S. consumers shook off concerns about European debt and a stalemated Congress to boost auto sales. The 14 percent increase was the biggest since an 18 percent advance in April, before the full toll of the March quake was felt
• On a volume basis, unit sales failed to top the 1 million mark for the fourth straight November. But they were close, at 994,786.
• The seasonally adjusted annual selling rate of 13.6 million was the highest since the cash-for-clunkers government stimulus program in August 2009. This year's previous high: a pre-quake 13.3 million in February.
• Chrysler Group's 47 percent increase marked its 15th straight double-digit gain. The company is now up 25 percent for the year.
• Since soaring 42 percent in February, Toyota Motor Sales had posted seven monthly sales declines and one increase -- a 1 percent rise in April. Last month's 7 percent gain was split equally between the Toyota division and Lexus.
• Two companies still haven't been able to shake the effects of the quake. American Honda was down 6 percent in November, and Subaru fell 15 percent. Each extended their monthly losing streaks to seven.
• Subaru was the only company that recorded a sales gain in 2009, when the industry collapsed 21 percent. This year it's on track to post a decline -- 2 percent through November in an industry that's up 10 percent.
• Aside from Honda, all major automakers posted bigger gains in November than in October. In addition to Chrysler Group's 47 percent, Hyundai-Kia Automotive jumped 29 percent, Nissan North America rose 19 percent and Ford Motor Co. grew 13 percent. General Motors matched Toyota with a 7 percent increase.
• German companies led the smaller automakers. Daimler AG jumped 47 percent; Volkswagen Group gained 29 percent; and BMW Group rose 15 percent. Volvo was up 19 percent, Jaguar Land Rover rose 17 percent, and Mazda advanced 20 percent.
• In addition to Honda and Subaru, four other automakers lost volume in November: Suzuki, down 22 percent; Mitsubishi, down 13 percent; Saab, down 10 percent; and Porsche, down 7 percent.
• Looking ahead: November's growth shows underlying conditions continue to improve, said Jesse Toprak, vice president of TrueCar.com.

"This sets the market up for a strong finish to the year and a good start to 2012," he said. He repeated his forecast of 13.8 million sales next year. That would be the highest since 2007, before the industry's collapse.

Jesse Snyder - Automotive News