1 / 14

US Auto Industry Review

US Auto Industry Review. Ian Beavis, EVP Global Auto. From Carpocalypse to the New Normal. PLENTY OF GOOD NEWS FOR THE auto INDUSTRY. 2013 has experienced record breaking growth for the US Auto Industry. 2013. Incentives average $ 2,500 per car down from over $4,000 since 2008 .

adem
Download Presentation

US Auto Industry Review

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. US Auto Industry Review Ian Beavis, EVP Global Auto

  2. From Carpocalypse to the New Normal

  3. PLENTY OF GOOD NEWS FOR THE auto INDUSTRY 2013 has experienced record breaking growth for the US Auto Industry 2013 • Incentives average $2,500 per car down from over $4,000 since 2008. • SAAR is 16.1 million, up 6 million sales since 2009 New vehicle price average $31,252, up over $3,000 since 2009 • 17,700 • new car dealerships down from 20,000 in 2008 • Leasing is 27.6%, the highest percentage since 2006 Prepared for: TVB Source: Automotive News

  4. Upward trends for the industry • Credit is easierto get, the average loan amount is $26,526 • Captive Finance companies’ portfolios are over 70% Prime • The average age of the US fleet is 11.4 years, the highestsince WW2 • Franchised dealers are increasingtheir share of the vehicle maintenance pie • Certified Pre-Owned sales are close to 2 million units and continue to grow rapidly Prepared for: TVB Source: Automotive News

  5. a record-breaking month AUGUST 2013… was the highest sales volume for the auto industry in 75 months Prepared for: TVB Source: Automotive News

  6. There is a lot of money in the industry OEMs are making record, or near record profit in the US Auto plants are running at maximumcapacity Sales per dealership are higherthan ever All OEMs have robust product cycle plans, with improved technology and quality Most dealers are enjoying the highest profit in 10 years Prepared for: TVB Source: Automotive News

  7. Assessing the future Though the hope is for continued growth, there is much to be done for this upward trend to continue CAR MARKET NOT EXPECTED TO GROW SIGNIFICANTLY IN THE NEXT 5 YEARS Make an impact Uncommon emotion • Factors Affecting Growth • New and expensive manufacturing, materials and technology will increase vehicle cost and put further pressure on affordability • Pricing transparency will put pressure on profitability • What The Industry Needs To Do • Invest heavily to achieve new CAFE regulations • Seek additional sources of revenue, particularly OEMs and dealers Prepared for: TVB Source: Automotive News

  8. A new Focus on efficiency and effectiveness Marketing tactics are in the crosshairs OEMs need to SQUEEZE out any WASTE in procurement, product development, manufacturing and distribution Dealers and OEMs must CONNECTwith a smaller pool of REAL CUSTOMERS Areas that PROVE they REACH auto prospects will grow dramatically PRECISION MARKETING= LONG TERM SUCCESS of a new model TELEVISION ( video in all its forms ) is ESSENTIAL Prepared for: TVB Source: Automotive News

  9. Reaching your key audience, car buyers The importance of precision marketing Cut through the clutter and breakthrough the long purchase cycle Improve creative across platforms Place advertising where buyers are watching Prepared for: TVB Source: Automotive News

  10. when do car buyers watch tv? With similar viewing habits to average consumers, primetime is the top daypart to catch car buyers’ attention Average Rating by Daypart and Viewer Type August 2012-July 2013 Source: AdViews, August 2012- July 2013 , Persons 18+.

  11. When are auto brands advertising? On average, most auto brands focus their advertising on early fringe, primetime, and late fringe/overnight % of Gross Ratings Points by Car Manufacturer August 2012- July 2013 Source: AdViews, August 2012- July 2013 , Spot TV. Persons 18+. Average taken from Chevy, Chrysler, Ford, Honda, Hyundai, Nissan and Toyota.

  12. When Do consumers recall auto ads? Primetime and late fringe dayparts provide the best opportunities to catch consumers’ attention % of Audience that recalled the creative and brand for all Auto ads during September 2012- August 2013 Source: Brand Effect TV National Results for All Auto Ads Sep 2012 – Aug 2013 A18+. Ad Breakthrough = recalled the ad and the brand.

  13. THE New Normal OPPORTUNITIES ABOUND

More Related