Americans Looking to Spend More on Nearly All Wish List ... · Americans Looking to Spend More on Nearly All Wish List Products, Services ... Hot tub 7.3% Antique furnishings 12.1%

Americans Looking to Spend More on Nearly All Wish List Products, Services

percent said they planned on making a used-car

acquisition. That’s up 8.6 percent with a 3 percent

increase in anticipated budget.

On the new-car side, 14.5 percent of the Key

Market is looking to acquire a vehicle this year, up

from last year’s 13.3 percent and 12.7 percent in

2010. New car intenders in this group say they will

have a budget for the vehicle that is about 2.9

percent more than the amount reported in 2012.

Recession for Most is Over

4.23.13

Jitters Index

-0.68%

Americans are putting more expensive products and

services on their Wish List including new and used cars. In

addition, they are planning to spend more on those goods

and services.

Performed annually, the CNW Wish List measures the

share of people who are financially able and moderately

interested in making an acquisition of the listed products.

For example, of Americans who are likely vacationers,

nearly 47 percent say they plan to take a long vacation in

the U.S. this year. That’s up more than 6 percent vs. a year

ago. Anticipated budget for this year’s trip is higher by 2.2

percent. In last year’s survey, people said they were

planning on spending about 1.6 percent less.

Among the U.S. Key Market for automobiles, 14.8

2009 (for 2010) % Chng 2011 (for 2012) % Chng

Antic

Budget 2012 (for 2013) % Chng Antic Budget

Long U.S. Vacation 42.9% -5.30% Long U.S. Vacation 44.2% 5.90% -1.6% Long U.S. Vacation 46.8% 6.02% 2.2%

Personal Investments 30.4% 2.77% Earmarked savings 31.6% 7.55% 11.6% Home electronics 30.4% 9.48% 6.6%

Earmarked savings 28.2% -3.75% Home electronics 27.7% 8.75% 8.4% Earmarked savings 29.7% -5.98% 12.7%

Upgrade Housing 26.4% -8.01% Personal Investments 26.1% 0.11% 2.6% Personal Investments 28.9% 10.64% 3.9%

Home electronics 26.1% -1.14% Upgrade Housing 25.9% 2.41% 1.9% Upgrade Housing 26.9% 3.94% 2.1%

Home theatre / Big screen TV 20.6% 8.99% Home theatre / Big screen TV 20.2% 1.87% -5.1% Interior Furnishings 18.6% 11.94% 3.3%

Interior Furnishings 14.9% -15.34% Interior Furnishings 16.6% 15.94% 2.9% Home theatre / Big screen TV 18.2% -9.67% -4.7%

Home Addition 14.2% -14.46% Used car in household 13.6% 3.89% 5.6% Used car in household 14.8% 8.60% 3.1%

Home garden / Landscape 13.4% -5.63% New Vehicle 13.3% 11.43% 2.7% New Vehicle 14.5% 9.13% 2.9%

Used car in household 13.9% -1.42% Home Addition 13.1% -6.36% 2.6% Home Addition 14.1% 7.78% 2.7%

New Vehicle 12.7% -7.30% Home garden / Landscape 12.9% -9.23% 8.1% Buy/Start Business 13.2% 3.04% 1.1%

Buy/Start Business 12.1% -24.84% Buy/Start Business 12.8% 1.90% 1.6% Remodel kitchen 12.9% 10.41% 1.9%

Remodel kitchen 11.3% -0.88% Remodel kitchen 11.7% 5.59% 1.8% Home garden / Landscape 12.4% -3.72% 7.4%

Antique furnishings 7.7% -17.20% Home office 6.3% -3.85% 2.2% Foreign trip / Incl. Cruise 5.9% 2.81% 3.9%

Home office 6.8% -13.92% Foreign trip / Incl. Cruise 5.7% 6.34% -5.6% Home office 6.4% 2.88% 1.7%

Vacation home 5.3% -38.37% Antique furnishings 5.6% -15.62% -9.4% Antique furnishings 5.1% -8.72% -11.3%

Foreign trip / Incl. Cruise 4.8% 0.00% Vacation home 4.1% 0.24% -11.1% Vacation home 4.0% -2.92% -6.9%

For most of the industries represented in the Wish List, the recession is coming to a

close. As seen with new and used cars, there has been a resurgence based on pent-

Page 2… CNW Research: Retail Automotive Summary

cy1985 (for 1986) 1997 (for 1998)

Long foreign trip 40.2% Long US vacation 38.2%

New home 36.2% In-home computer 31.6%

New vehicle 31.2% Home electronics 29.2%

New furniture 29.7% Used car in household 28.1%

Remodel kitchen 29.6% Upgrade housing 27.6%

New boat 27.2% Personal investment 27.5%

Long U.S. vacation 26.4% Buy / start business 26.3%

Personal investment 19.5% Remodel kitchen 25.4%

Home electronics 19.4% New furnishings 18.6%

Vacation home 19.2% Home addition 17.9%

Buy or start business 13.6% Big screen TV / Home theater 15.8%

In home computer 11.3% Long foreign trip 15.3%

Home addition/Upgrade 10.8% New vehicle 15.2%

Used car in hh 10.6% Home office 13.4%

Acoustic piano 7.7% Home garden 13.2%

Hot tub 7.3% Antique furnishings 12.1%

Swimming pool 5.3% Vacation home / Time share 10.7%

(Continued from page 1)

up demand being sated. More important, the higher

anticipated budgets for most of those goods and

services indicates a willingness to dip into savings

and to borrow a bit more in order to acquire that

desired product.

Not 1986, Though The world has changed, however. In CNW ’s

1985 Wish List study, a new vehicle was third on

the list of products/services of items consumers

wanted to buy costing more than $2,000. A used

vehicle was 14th on that list.

A decade later, buying a used car for someone

in the household climbed to fourth while a new

vehicle dropped to 13th.

In the latest survey, new and used are virtually

tied at 8th and 9th, and in both cases, a smaller

percentage of potential buyers actually had either

on their wish list than in 1997.

Other Industries Suffering; Some Gaining It’s interesting to note that items that were on the list in 1986 have all but

disappeared. Hot tubs, swimming pools, new boats, and acoustic pianos –

all products that had high appeal in the ‘80s.

The concerns over regulations has also hurt the number of people who

are willing or thinking about starting a business. Between 1986 and 1998,

such plans doubled to 26 percent. And while such plans have increased in

the latest survey compared to the previous year, it still remains less than

half of the 1997 level.

On the other hand, home electronics, not surprisingly, have displaced

many of the other products and services, jumping from 9th in ‘86 to 2nd as of

this year.

Cocooning Losing Favor During the depths of the recession, people began moving to products

and services that were more homecentric. Remodeling kitchens, adding

decks and gardens, general upgrading of the existing house,

adding a home office became ways of enhancing their lives. House

prices had collapsed, so moving was out of the question for many.

But the latest survey shows at least some of that cocooning

beginning to subside.

For example, adding a deck or landscaping or building a garden

have all dropped in intentions. For 2010, about 13 percent of

consumers said they would be spending money on those efforts.

That slipped to 12.4 percent – down 3.7 percent from 2011.

Interestingly, the intention to take a foreign trip including a

cruise has edged upward, although still extremely low compared to

1986 when it topped the Wish List.

CONTEXT: Beware that much of consumer spending plans this

year are because of delayed purchases rather than new intentions.

Americans sorely want to come out of their constrained spending

mode brought on by the recession. But first they want to “catch up”

on their previous wish lists before committing to anything new.

Sub-Prime Approv. v Last Yr.

5.01% 12.88% 7.9%


Closing Ratio Closing Ratio

3.28%

April Deliveries Set to Hit 1.3 Million

April new-car sales are set to increase about 6.5 percent, based

on the opening 15 days of the month. That continues to put full-year

deliveries at the 15.6 million unit level.

Floor Traffic at new-car dealerships is up about 8 percent as the

weather begins to shake off winter or, at least, consumers are

anticipating a nice Spring. Much of that floor traffic is coming to

dealerships on Thursdays and Saturdays. Biggest driver for getting

consumers into showrooms: Lease deals that offer some of the

hotter models at low-lease payment rates. Prius, for example, at

$299 per month.

For buyers, regional discounts are spreading. Toyota, for

example, is giving an additional $1,000 to anyone in the Northwest

who trades in a competing Asian product.

Closing ratios are also up, around 3.3 percent.

Same store sales, when adjusted for new facilities and partial

closures for remodeling or moving, are up 5 percent.

34.7%

One thing to watch carefully: Month-over-month sub-prime loan

approvals fell in the opening weeks of April compared to March. The

near-4 percent decline could have many possible reasons and be

nothing more than a single-month anomaly, but some states are

beginning to tighten up or threaten the finance industry with additional

regulations if there is even the perception of taking advantage of low-

income consumers.

On another front, leasing continues to take a growing share of overall

sales. This month, it is running at a 27.5 percent rate, up 5.7 percent.

Sub-Prime Approv. v Last Mo.

-3.94%

NEW Pent Up Dmnd Pent Up Dmnd 12 v 11 Avg. Delay Avg. Delay

Mo. '13 Mo. '12 Change Mo. '13 Mo. '12 % Change Still Plan Acq

Jan '13 94,250 106,300 88.7% 3.52 3.92 -10.2% 95.37%

Feb 118,250 109,500 108.0% 3.97 3.87 2.6% 94.62%

Mar 101,800 97,500 104.4% 3.74 3.59 4.2% 94.28%

Q1 13 314,300 313,300 100.3% 3.74 3.79 -1.3% 94.8%

Apr 106,500 101,000 105.4% 3.52 3.44 2.3% 94.07%

On a year-over-year basis,

however, sub-prime approvals are

up nearly 35 percent.

CONTEXT: April will be a solid

bellwether of Spring and Summer

sales as well as an indicator of total

sales for the year. As it stands, 15.5

million looks like the floor for ‘13.


JITTERS INDEX

Fed Gas Child’s Job Day to Day Condition of Food Local Jitters

Taxes Prices Edu Stability Needs Investments Prices Taxes Index

Vs Previous Mo. 0.00% 1.42% -2.79% -2.46% -1.85% -0.29% 0.51% 0.00% -0.38%

Vs Mo. ‘12 4.73% 1.54% -10.68% -5.99% 0.41% -4.83% 5.78% 0.51% 0.19%

Stats & Graphs Page

Remose Remorse Returned Returned Returned Returned

New Used Sales New Sales Used New Used New New Used Used

cy01 3.13% 6.21% 17,186,360 42,623,717 537,933 2,646,933 0.22% 1,183 0.78% 20,646

cy02 3.05% 6.28% 16,855,729 43,025,087 514,100 2,701,975 0.16% 823 0.75% 20,265

cy03 2.87% 6.19% 16,674,153 43,571,652 478,548 2,697,085 0.19% 909 0.76% 20,498

cy04 2.94% 6.34% 16,909,896 42,706,103 497,151 2,707,567 0.26% 1,293 0.75% 20,307

cy05 3.19% 6.05% 16,989,521 44,138,263 541,966 2,670,365 0.34% 1,843 0.72% 19,227

cy06 3.42% 5.71% 16,546,460 42,565,544 565,889 2,430,493 0.31% 1,754 0.77% 18,715

cy07 3.68% 5.36% 16,227,496 41,569,561 597,172 2,228,128 0.38% 2,269 0.83% 18,493

cy08 4.71% 5.49% 13,413,435 36,530,404 631,773 2,005,519 0.47% 2,969 0.89% 17,849

cy09 6.21% 7.31% 10,476,665 35,491,762 650,601 2,594,448 0.59% 3,839 0.92% 23,869

cy10 6.11% 7.92% 11,588,725 36,883,987 708,071 2,921,212 0.63% 4,461 1.06% 30,965

cy11 5.64% 7.24% 12,768,617 38,792,169 720,150 2,808,553 0.57% 4,105 0.94% 26,400

cy12 5.19% 6.83% 14,576,694 40,525,869 756,530 2,767,917 0.51% 3,858 0.92% 25,465

cy13 est. 5.02% 6.67% 15,250,000 41,000,000 765,550 2,734,700 0.48% 3,675 0.88% 24,065

0.00%

2.00%

4.00%

6.00%

8.00%

10.00%

cy01 cy02 cy03 cy04 cy05 cy06 cy07 cy08 cy09 cy10 cy11 cy12 cy13est.

Buyers' Remorse (Six Months)

New

Used

Buyer’s Remorse Going Down

Six months after making a new or used car purchase, a

certain percentage of buyers begin to have buyer’s

remorse, wondering why they acquired a car or truck at all.

Based on the 2013 Purchase Path study, that figure has

begun to shrink after the recession, although it still remains

significantly higher than pre-recession years.

For example, in 2001, only 3.13 percent of new-car

buyers suffered remorse within six months. Today the figure

is 5 percent, but lower than in ’09 through ’12.

Anticipated Apr Actual Apr % Chng YTD YTD % Chng

Document 106m cy13 cy12 13v12 cy2013 cy2012 13v12

Franchised

Dealer Sales 1,383,588 1,367,543 1.2% 4,048,433 3,688,879 9.7%

Independent

Dealer Sales 1,237,299 1,237,725 0.0% 3,724,980 3,512,261 6.1%

Casual (Private)

Sales 1,228,829 1,187,336 3.5% 3,520,740 3,492,418 0.8%

Total Sales 3,849,716 3,792,604 1.5% 11,294,153 10,693,558 5.6%


April Used Sales Up a Tick; FICO Lower April’s gain in used-car sales will be slight, up about 1.5 percent. Most

of the increase will come from Private Party (casual) sales.

Franchised new-car dealers’ used-car operations are set to

increase a shade over 1 percent to 1.38 million units while Independent

dealers will basically remain static compared to last year at 1.23

million.

As expected and reported, the shift toward private party sales is

increasing as the weather turns warmer and Spring begins.

Used FICO Scores Lower The trend toward lower FICO scores among used-car buyers

continues, falling to 561.3 in the opening days of April. The share of

sub -670 credit-score buyers increased to 46.9 percent from March’s

46.37 percent and year-ago’s 35.22 percent.

A new addition to the Used-Car FICO data (Document 125m at

CNWbyWEB.com) is monthly tracking of retired military credit scores.

While CNW has had the data since 1995, it has never before been part

of a regular release.

In April, Retired Military FICO was 609.8 for used cars and trucks.

Except for eight months in 2008, retired military has remained in the

600s since 1995.

CONTEXT: Expect the trend toward private party sales to continue for

the next four months. Overall, however, all channels are going to finish

the year ahead of 2012.

540

560

580

600

620

640

Jan'11

Mar May July Sept Nov Jan'12

Mar May July Sept Nov Jan'13

Mar

Used FICO Score (Avg.)

April: 561.3

500

550

600

650

700

750

cy8

5

cy9

5

cy0

1

Mar

Sep

Mar

Sep

Mar

Sep

Mar

Sep

Mar

Sep

t

Mar

Sep

t

Mar

Sep

t

Mar

Sep

t

Mar

Retired Military

April: 609.8

40

42

44

46

48

50

52

Used Vehicle Days' Supply


Franchised Independent Franchised Franchised Independent Independent

Document 107m Asking Price Asking Price Trans Price % of Asking Trans Price % of Asking

Jan. '13 $11,336 $9,867 $10,558 93.14% $9,158 92.81%

Feb '13 $11,321 $9,892 $10,562 93.21% $9,174 92.74%

Mar '13 $11,806 $10,276 $11,112 94.12% $9,640 93.81%

Apr '13 $11,716 $10,143 $11,042 94.25% $9,529 93.95%

Apr ’12 $11,507 $10,216 $10,958 95.23% $9,576 93.74%

May '12 $12,119 $9,987 $11,296 93.21% $9,071 90.83%

June '12 $11,684 $9,937 $10,802 92.45% $9,069 91.27%

July '12 $12,136 $9,842 $11,185 92.16% $8,943 90.87%

Aug '12 $12,103 $9,849 $11,138 92.02% $8,936 90.73%

Sept '12 $11,458 $10,172 $11,021 96.19% $9,598 94.36%

Oct '12 $11,419 $9,872 $10,553 92.42% $9,019 91.36%

Nov. 12 $11,583 $9,991 $10,894 94.05% $9,334 93.42%

Dec. '12 $11,186 $10,148 $10,654 95.24% $9,452 93.14%

Percent Change Yr over Yr 1.82% -0.71% 0.77% -1.03% -0.49% 0.22%

Month Over Month Price -0.76% -1.29% -0.63% 0.14% -1.15% 0.15%

Used Prices Squeeze a Gain in April For Franchised New-Car Dealers, April’s opening days were reason

for some optimism. While retail asking prices were off about 0.76

percent vs. March, they were solidly ahead of last year by nearly 2

percent. Even actual transaction prices (excluding add-ons such as

extended warranties), the core transaction price was up three-quarters

of a percent.

For Independent dealers, both asking and transaction prices were off

a bit vs. year ago as well as vs. last month.

The month-over-month figures are somewhat skewed because

March saw an unusually big gain vs. February. For franchised dealers,

transaction prices were up more than $500. The slip in April was barely

$60 per unit, and, in fact, beating the transaction prices registered in

both January and February.

The same can be said for independent dealers.

April: 51.37

Wholesale Used Vehicle Price Trends

Average Prices ($/Unit) Latest Month Versus:

Mar-13 Feb-13 Mar-12 Prior Month Prior Year

Total All Vehicles $10,028 $9,747 $10,625 2.9% -5.6%

Total Cars $9,189 $8,854 $9,922 3.8% -7.4%

Compact Car $7,065 $6,910 $7,684 2.2% -8.0%

Midsize Car $8,520 $8,262 $8,970 3.1% -5.0%

Fullsize Car $7,883 $7,413 $8,416 6.3% -6.3%

Luxury Car $12,057 $11,963 $13,335 0.8% -9.6%

Sporty Car $13,053 $12,144 $14,163 7.5% -7.8%

Total Trucks $9,753 $9,531 $10,286 2.3% -5.2%

Mini Van $6,929 $6,910 $7,600 0.3% -8.8%

Fullsize Van $9,982 $9,952 $9,772 0.3% 2.2%

Mini SUV $11,227 $10,993 $11,409 2.1% -1.6%

Midsize SUV $6,911 $6,560 $7,447 5.4% -7.2%

Fullsize SUV $10,647 $10,130 $12,648 5.1% -15.8%

Luxury SUV $18,144 $18,583 $19,572 -2.4% -7.3%

Compact Pickup $7,550 $7,459 $8,090 1.2% -6.7%

Fullsize Pickup $11,790 $11,532 $11,656 2.2% 1.1%

Total Crossovers $13,572 $13,398 $14,176 1.3% -4.3%

Summary

Wholesale used vehicle prices rose seasonally but fell

annually in March, indicating a softening overall pricing

environment compared to the last three Spring/tax

seasons. The softening is to be expected as used vehicle

prices had risen to high levels relative to new vehicle prices

and as used vehicle supplies, including those from trade-

ins on higher new vehicle sales, have begun growing. Still,

strong retail sales of used and certified-pre-owned vehicles

provided demand support that prevented prices from

softening further.

Details

According to ADESA Analytical Services’ monthly

analysis of Wholesale Used Vehicle Prices by Vehicle

Model Class1, wholesale used vehicle prices in March

averaged $10,028 – up 2.9% compared to February but

down 5.6% relative to March 2012.

At the model class segment level, used vehicle prices

seemed to emulate patterns seen in new vehicle sales data

in that fullsize pickup trucks and small SUVs and

crossovers had strong prices that perhaps mirrored solid

demand for these vehicles at new car dealerships. The

rebounding construction economy is most probably playing

a role in higher pickup prices, while small SUVs and

crossover prices are being impacted by the growing

popularity of these flexible, relatively fuel-efficient and well-

optioned vehicles. Conversely, larger SUVs and

crossovers have experienced significant year-over-year

price declines through the first quarter.

Prices for used vehicles remarketed by manufacturers

were up 2.1% month-over-month, but down 2.8% year-

over-year. Prices for fleet/lease consignors were up 5.2%

sequentially, but down 2.4% annually. Dealer consignors

saw a 4.0% average price increase versus February 2013,

but a 7.8% downturn versus March 2012.


Kontos Kommentary

Based on data from CNW Marketing/Research, retail used vehicle sales were

the highest for March since 2006 and were up 17.3% year-over-year for franchised

dealers and 7.1% for independent dealers. March sales of certified used vehicles

hit an all-time high, with sales of 190,065 -- up 9.0% from March 2012 (174,337, the

previous high), and 21.1% higher than February 2013 -- based on data from

Autodata.

March saw a comfortable ten-percent increase in

Commercial/Fleet sales with an 18.7 percent boost in

vehicle value (excluding upfitting).

Nearly 570,000 C/F sales represented 39 percent of

all sales in March, the highest percentage of 2013.

While government fleet sales were off about 20 and

Medium-size business sales were down nine percent,

small and large business fleets including daily rentals

more than made up the difference, up 17 percent and

21.7 percent respectively.

As a share of total sales, government is beginning to

edge back up and now stands at 1.6 percent. Expect

this figure to regain some quicker momentum as state

governments find themselves in dire need of replacing

older vehicles for police, services and construction.

Small businesses will be the harbinger of the

economy, as always. The gains made thus far this year

are both telling and encouraging. While the year-over-

year gains have shrunk, share of total sales continues

to rise.

Big Gain in Fleet-Commercial Value The value of C-F vehicles in the first quarter hit $41

billion with April’s figure the largest of the year at nearly

$17 billion.


Fleet-Commercial Sales Rise Again

40.00%

47.50%

55.00%

62.50%

70.00%Share Retail

cy13 Jan Feb March

All Sales 1,042,721 1,191,841 1,452,521

Percent Change v Previous Year 14.2% 3.7% 3.4%

Fleet and Commercial Use 37.11% 37.23% 39.24%

Total Fleet (Monthly Approximates) 386,954 443,722 569,969


FLEET COMMERCIAL VALUE -- Per Unit $29,447 $29,466 $29,807

FLEET COMMERCIAL VALUE -- Total $Bllns $11.39 $13.07 $16.99


Government Fleet 15,537 18,235 22,659

Share Gov't of Total Sales 1.49% 1.53% 1.56%

Percent Change v Previous Year -17.4% -22.2% -19.7%

Small Business Fleet and Commercial Use 46,505 55,778 70,012

Share Small Business of Total Sales 4.46% 4.68% 4.82%


Medium Business Fleet and Commercial Use 85,712 111,676 136,827

Share Medium Business of Total Sales 8.22% 9.37% 9.42%

Percent Change v Previous Year -3.4% -4.3% -9.1%

Large Business Fleet, Daily Rental, Commer. 239,200 258,034 340,471

Share Large Business of Total Sales 22.94% 21.65% 23.44%


Also in March, the per-unit value climbed to its highest level of 2013 to $29,807.

Add significant upfitting and the auto industry including accessory manufacturers

added more than a third to the value of those vehicles.

CONTEXT: With about 70 percent of all sales now going to pure retail (including

retail to trades and small business), the industry seems to be back on track with

consumers. But the C-F segment will be responsible for the industry eventually

climbing back to 16-plus million units.

Historically, the C-F sales have accounted for 43 to 45 percent of sales. In this

smaller market, the C-F sales level should be above the historic level, not behind it.

And while C-F has been at the forefront of sales gains thus far this and most of last

year, it has to pick up the pace with the “backfill” coming from pure consumer retail.

0.20% 0.22%

0.26% 11.48%

11.27%

11.57%

12.64%

13.24%

13.68% 1.94%

1.71% 1.64%

Page 9... CNW Research: Retail Automotive Summary February 2013

Entry Level Utility Vehicle

Budget Car Economy Car

Electric Car

Working Out Kinks in Uneven Product Availability; Electrics Being Force Fed to Buyers

Sales in March showed little that is indicative of consumer behavior or economic shifts. Mostly, the solid sales numbers showed the uneven

product availability in the marketplace right now. Events of the day or week are driving people toward or away from certain types of vehicles. For

example, fuel prices appear to have stabilized, so Budget Cars had their lowest share of total sales thus far in ‘13. Full-size pickups would have

taken even a larger share of sales if some of the new products and/or features had been available. Instead, many dealers were left with F150s

when contractors were looking for F250s or gas engine models when the farmer/ranger segment wanted diesel.

A major part of the problem is the inability to match today’s forecasts with tomorrow’s demand. While that has always been an issue, current

automaker thinking is to not overbuild products and keep them in storage lots. Getting better balance on the production and demand see-saw has

become gospel at most automakers. This from an industry that grew up on building as many as possible even if it exceeded demand. One

advantage of over-building was the availability of virtually any model in any configuration for any customer’s desires.

Some are saying electric

vehicles are “gaining

traction.” Not quite the

correct analogy. EVs are

actually being pushed over a

cliff with massive incentives.

And for good reason. It’s

to every automaker’s

advantage to put as many

EVs into the market as

possible to meet the EPA’s

increasingly stringent fuel

economy standards.

Do people want an

electric? Fiat is about to find

out. It will be leasing its 500-

e for the same rate as its

base model. Some say it will

cost Fiat $10,000 per electric

car it sells.

The company says it will

build electric 500s in a

quantity that meets demand

“and not one unit more.”

1.31%

1.51% 1.49%

9.74%

9.55%

9.07%

11.06%

10.93%

10.59%

1.53%

1.38%

1.42%

1.47%

1.49%

1.51% 11.89% 11.95%

11.43%

Page 10… CNW Research: Retail Automotive Summary February 2013

Full Size Pickup Full Size Van

Luxury Car Lower Midrange

Lower Mid Range Utility Vehicle Large Utility Vehicle

Full size pickups and vans

are usually clear indicators

of the health of the business

community. Unfortunately,

the full-size pickup share of

sales in March dipped a half

percentage point vs.

February. The good news: It

wasn’t because of

discouraged businesses.

The primary reasons: The

unavailability of the certain

pickup configurations for

those looking for a work

truck. For example,

contractors report they can’t

find mid-priced F-150s. Most

are either high-end or entry

level, neither of which is

suitable for the trades.

Full-size vans, on the

other hand, are well stocked

and well configured, having

the best month of 2013.

0.30% 0.30%

0.25%

4.20% 4.16%

3.99%

0.29%

0.25% 0.25%

3.34%

3.42%

3.52%

2.83%

3.42% 3.42%

2.41% 2.49%

2.73%

Page 11… CNW Research: Retail Automotive Summary February 2013

Near Luxury Car

Midi-Van Mid Range Utility-Vehicle

Minivan

Premium Car Premium Mid-Range Car

Mid-size vans, like pickups,

were in relatively short

supply and of those on the

lots, most were high-end

models directed more at the

consumer market than the

business customer. Virtually

all of the share decline in

March can be traced to

small and medium size

businesses postponing a

midi-van acquisition until the

“right” units are available.

1.67% 1.93%

2.13% 0.20% 0.21%

0.16%

1.61%

1.49%

1.70% 12.39%

11.99%

12.37%

3.07% 3.00%

2.62%

0.30%

0.28%

0.30%

Page 12… CNW Research: Retail Automotive Summary February 2013 Premium Sporty Car Premium Utility Vehicle

Standard Mid Range Car Small Pickup

Sport Utility Pickup Touring Car Whether by chance or

design, the Touring Car

market has the right mix

of products in the right

configurations. The

month-to-month increase

in share of sales is a

reflection of that supply-

demand balance, lacking

in virtually all other

market segments.

0.18%

0.19% 0.19% 0.05% 0.06%

0.05%

1.89%

1.79%

1.69%

0.05%

0.04% 0.04%

0.02%

0.01%

0.02%

0.00% 0.00% 0.00%

Page 13… CNW Research: Retail Automotive Summary February 2013 Traditional Car Ultra Upscale Car

Ultra Luxury Sporty Car Upper Mid-Range Utility

Ultra-Premium Utility Vehicle Upper Premium Sporty Car

The Upper Mid-Range

Utility market may well be

saturated and coming down

off of a high in terms of

share of overall sales.

The demographic profile

of the people who normally

fit into this segment were

only moderately impacted

by the recession and

continued buying vehicles

throughout the down

economic period.

Since there is little pent-

up demand for Upper M-R-

U models, manufacturers of

these products have to find

“fresh blood’ to maintain

sales levels. That’s an

expensive proposition and

perhaps left for another day.

Audi New Iron Man Deal: Marvel or Misstep?

Audi is in the midst of an astonishing global promotion tied to its co-branding with Marvel and the

upcoming Iron Man 3 movie, arriving in theaters May 3.

The automaker is touting that some lucky person will make ”comic book history” and get to see their

name in a Marvel comic book.

Entrants must drive the story by visiting www.steerthestory.com and come up with the final frame

of Iron Man's battle against villain Blizzard's icy attack.

Audi is advertising the co-branded push with Marvel in this YouTube video

Loren Angelo, a marketing exec with Audi of America, called the deal “a strategic collaboration for us.”

He likened the R8's innovation leadership to the Iron Man character, which has “consistently evolved

throughout the trilogy as he masterminds new trends.”

It's not surprising that Audi is doing some sort of promotion related to the newest Iron Man flick. The

brand had product placement and ad deals with Marvel for the first two Iron Man movies. And Robert

Downey Jr. will be back in the starring role of Tony Stark, who will drive an Audi, all-electric, R8 e-tron

sports car prototype in the movie. His girlfriend Virginia “Pepper” Potts, again played by Gwyneth

Paltrow, will be driving an Audi S7 Sportback.,

What is surprising is this promotion. It just doesn't seem fitting for a progressive, luxury car brand.

What's the promotion's target?

Comic book readers? Artists?

When the last Iron Man movie opened in May 2010, then-distributor Paramount Pictures reported

via exit polling that the first weekend crowd was 60% male and 60% over 25 years old.

So, one could argue Audi is trying to build brand awareness and future consideration among young

males.

Still, what sort of geek wants to win this thing and get their name in a comic book?

I mean wouldn't you rather win an R8?

Just because this kind of thing has never been done before doesn't make it a fitting co-branding deal.

The whole thing just feels forced.

Page 14… CNW Research: Retail Automotive Summary March 2013

Jean Halliday’s Tie-Ins Setting the Stage for Audi, Mazda

Gotta Question How Comics and Luxury Brand Cohabitate

These kind of “drive the stories”

promotions are really starting to gain

momentum in the market place.

Audi asked consumers to vote on

YouTube for one of three endings for its

Super Bowl commercial this year.

And Ford Motor Co.'s Lincoln brand

turned to Twitter to help generate story line

ideas for its Super Bowl ad. It was the first

time Tweets helped generate ideas for a spot

in the Big Game.

While Lincoln's push got a lot of ink, the

resulting Super Bowl commercial was a big

yawn. Only people in on the whole

experiment “got it.”

It's encouraging to see automakers trying

http://www.youtube.com/watch?v=nDNURNvpfeg

Page 15… CNW Research: Retail Automotive Summary March 2013

new tools to try to reach and engage new, younger prospects. But these kind

of co-branding efforts really need to relate to the soul of the car brand.

Sky's the Limit For Mazda

In another movie deal, Mazda USA has linked up with the upcoming

space thriller “Star Trek Into Darkness” to help launch the new Mazda6.

Mazda is also using the tie-in to tout its SKYACTIV Technology that

improves driving, safety and fuel economy with these claims on YouTube:

“See the Future Today” and “Turning science fiction into science.”

These kind of comparisons make sense,

What doesn't make sense is the movie trailer Mazda uploaded on YouTube

this month.

Mysteriously, there's no Mazda in the clip. For now, the carmaker is mum

on other ways it will promote this marriage. Look for more info from Mazda

on how it will extend this Star Trek flick deal this month.

Honda's Shout Out to Dads

Honda made a pitch to dads this month via an online road trip of three

popular blogging fathers, who traveled nearly 2,000 miles in the 2013

Crosstour. During their 30-plus hours of driving, they blogged and posted

some 8 hours of video.

Andy Herald and Charlie Capen of HowToBeADad.com were joined by

David Vienna of TheDaddyComplex.com in their drive in Honda's crossover

from Los Angeles to the Dad 2.0 Summit in Houston, Texas.

Here's their story

On the surface, it doesn't look like Honda got much in return for loaning

the Crossfire to this trio and for footing the bill for their trip. The YouTube

video Honda posted about the adventure didn't generate that many views-

under 2,000 views in a week.

But the Daddy Complex bloggers got more bounce. They managed

27,500 “likes” on their Facebook page and 54 Tweets

Probably more important were several comments from viewers that the

Crosstour Adventure portrayed fathers in a positive light, instead of the often

bumbling characters shown in the media.

With women influencing some 85% of all car purchases, it's smart to woo

men with kids. Showing cool Dads having fun in the Crosstour can give the

whole brand a more male-friendly aura, like Pontiac did with its Montana

minivan and cowboy ads.

The Crosstour, arrived as a 2010 model as the Accord Crosstour and

Mazda’s Star Trek tie-in

has always been aimed at family-oriented folks. The 2013 version is

beefier and better looking, but with a sticker price ranging from the high

$20,000s to high $30,000, we wonder how many parents with kids can

shell out that kind of dough.

Still, it's safe to say Honda got a much bigger pay back for this tour

than its minimal investment.

Honda’s Dad Tour

http://www.youtube.com/watch?v=PPZ2Pgt0xuE

http://www.youtube.com/watch?v=sQLh2zq7d84

CNW Research: Retail Automotive Summary

Back Page *Deliveries not sales Apr 1-15 Apr 1-15 % Chng Actual Sales Apr '13 Full Mo

Based on First 15 Days of April cy2013 cy2012 13 v 12 Apr '12 Sales Change

New Cars Extension

Detroit 3 199,672 188,134 6.1% 199,379 211,607 6.1%

Asian 185,364 168,088 10.3% 353,964 390,344 10.3%

European 51,027 46,662 9.4% 87,208 95,366 9.4%

Ttl Pass. Cars 436,063 402,884 8.2% 640,551 697,317 8.9%

New Trucks

Detroit 3 234,162 221,693 5.6% 330,982 349,598 5.6%

Asian 66,782 63,571 5.1% 182,105 191,303 5.1%

European 7,316 5,780 26.6% 30,431 38,518 26.6%

Ttl Lt. Trucks 308,260 291,044 5.9% 543,518 579,419 6.6%

Ttl Industry 744,323 693,928 7.3% 1,184,069 1,276,736 7.8%

Apr 1-15 Full Apr % Chng Prev Mo Prev Mo % Chng

cy2013 cy2012 13 v 12 cy2013 cy2012 13 v 12

Lease Share 27.6% 26.1% 5.7% 27.1% 26.1% 3.8%

Floor Traffic - New 90.88 84.2 7.9% 87.4 83.47 4.7%

Floor Traffic - Used 94.91 87.25 8.8% 93.49 86.23 8.4%

Apr 1-15 Prev Yr % Chng % Chng Pent Up Demand Units

cy2013 cy2012 Same Mo '12 Prev Mo Mar '13 106,500

Avg. New MSRP $37,984 $37,004 2.65% -0.02% Mar '12 101,000

Total Discounts $5,477 $5,129 6.78% 0.19% % Change 5.4%

Manufacturer Incentives $4,197 $3,671 14.33% 0.83%

Dealer Incentives $1,280 $1,458 -12.21% -1.87% Purchase Delay Months

Core Transaction Price**** $32,507 $31,875 1.98% -0.05% Mar '13 3.52

% Mfg Incentive of MSRP 11.05% 9.92% 11.4% Mar '12 3.44

% Ttl Discounts of MSRP 14.42% 13.86% 4.0% % Change 2.3%

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