ZUnencumbered [ Vehicles Could Make Z13 a 16 Mil Year...ZUnencumbered [Vehicles Could Make Z13 a 16 Mil Year If all pieces fall into place, it ... budget and spending, the underpinnings

‘Unencumbered’ Vehicles Could Make ‘13 a 16 Mil Year If all pieces fall into place, it

is extremely possible 2013

new-car sales could hit 16

million units, thanks in large

part to those who

postponed replacing their

“unencumbered” vehicle.

In all, of the 112.4 million

vehicles sold since 2005,

9.6 million are coming off of

12.21.12

Jitters Index

-0.85%

As pointed out in October, consumers are still a bit edgy about their home-centric economic condition. But with the exception of Federal Taxes, all

of the metrics showed improvement in both November and December (See Page 3). That’s a trend that foretells a bit of easing on the stress side of

consumer attitudes.

Add to that a bevy of new and higher-fuel-economy vehicles to be introduced this year, possible economic improvements in California and Florida,

as well as a return to some normalcy in the construction trades and the base number of likely vehicle sales hits a healthy 13 million units compared to

only 8.5 million in 2009, but still lagging 2000’s base of 15.75 million.

Also, the annual CNW Wish List of Major Purchases’ early returns show a new vehicle jumps another notch for 2013, adding to the potential

likelihood of a stronger auto sales year.

On the downside, look at Washington D.C. If a farm bill isn’t passed, food prices will increase. Without some form of economic stability in both the

budget and spending, the underpinnings of the U.S. economy could slip and cause psychological damage to consumer sentiment and spending.

But if all of the pieces fall in place, the industry could well see a third and fourth quarter sales surge pushing total sales above 16 million units.

51.3% 49.2%

39.6%

29.4% 25.1%

48.2%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

Dec '02 Dec '04 Dec '06 Dec '08 Dec '10 Dec '12

Plan to Replace After Payoff

finance contract in 2013. And of those owners who now or soon

will have an unencumbered vehicle, nearly 48 percent say they

are inclined to replace the car or truck with a new model within

12 months.

That a potential 4.37 million buyers – about 60 percent higher

than in 2008 and just a notch below 2004.

But Will They?

9.11% 8.24% 11.6%

Page 2… CNW Research: Retail Automotive Summary

Closing Ratio Closing Ratio

13.26%

December Sales Outlook Positive; True Delivery Rate Could Hit 16.2 Million

Based on the opening two weeks of December, the industry was on track to selling 1.4 million units for a 16.2 million unit Delivery

Rate (similar to SAAR). That represents an 11-plus percent increase vs. a year ago. Two factors that may impact that projection:

Bad weather including major storms in the Northwest and Plains states or, conversely, continued replacement of vehicles lost in

Storm Sandy with new rather than used vehicles.

Closing ratios are up more than 13 percent on top of an 11.6 percent increase in floor traffic. Same-store sales are already ahead

of last year by 9 percent with a Sub-Prime Approval rate increasing more than 43 percent compared to 2011’s December.

Incentives Under Control

Even taking into consideration low-rate lease deals, manufacturers are still 9 percent behind incentive spending per unit vs. a

year ago. While up a bit over 1 percent compared to November, that’s a pretty decent showing considering the year-end battle for

market share and meeting sales goals.

Dealers are also restraint vs. year ago with from-profit spiffs to consumers down 20 percent.

All of that is happening while average MSRPs are up 3 percent and Transaction Prices are up 6 percent. (See Back Page.)

Other Positive News

43.2%

Lease share climbed 8.7 percent in the opening days of this month vs. year ago. And most of

those leases are short-term (under 40 months) laying the groundwork for a healthy future CPO and

overall-sales market.

Pent-Up Demand remains in the near-100,000 unit range although it is 3 percent behind year

ago. But much of the decline an be attributed to consumers who postponed a purchase in the past

finally coming to market.

And one last bright spot: Of those consumers who say they have put off a new-vehicle

purchase, the length of time for the postponement has shrunk to a modest 3.4 months.


Jitters Index On the Mend With Fed Taxes, Food Prices Still Worrisome

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. 1.22% -1.80% -7.36% -1.53% -1.84% -1.54% 0.00% 0.41% -0.85%

Vs Mo. ‘11 6.32% 3.16% -15.08% -8.19% 1.08% -6.62% 4.53% 1.02% -0.21%

The typical post-Presidential-election let down has dissipated and a growing number of consumers are saying their home-

centric concerns are dwindling.

While far from the gleeful days of the late 1990s and early 2000s, the overall Jitters Index appears to have hit a plateau and is

now on the a downward path. (Down is good.)

With the exception of concerns about Federal Taxes, most other metrics are showing consumers are less concerned than they

were a year ago or even in November. For example, worries about a child’s education are

down more than 15 percent compared to December of

last year and 7.3 percent than in November. This is

typically a reflection of school budget worries.

Job Stability concerns have also improved, down

8.2 percent vs. year ago while concern over

Investments (including pension funds, 401ks, etc.) are

down more than 6.6 percent.

Gas prices continue to be a sore spot for consumers

with year-over-year increase of 3 percent, although

declining from November.

Food an Issue

It’s no wonder that McDonald’s had a great sales quarter rooted in its Dollar Menu. Americans are food-price sensitive with that

component of the Jitters Index up 4.5 percent (flat vs. November). And waiting on the horizon, a Truman-era law that has the

potential to cause milk, cheese and other dairy prices to double if Congress doesn’t act soon.

Overall, the Jitters Index is showing slight, but positive improvements. If it continues into the first quarter, add another 50,000 to

100,000 new car sales to the 2013 tally.

3.50

4.63

5.75

6.88

8.00

9.13

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Jitter Index -- January '05 to Current Month

Anticipated Dec Actual Dec % Chng YTD YTD % Chng

Document 106m cy12 cy11 12v11 cy2012 cy2011 12v11

Franchised

Dealer Sales 1,150,908 980,873 17.3% 14,989,431 13,845,292 8.3%

Independent

Dealer Sales 1,140,509 965,295 18.2% 14,015,474 13,764,614 1.8%

Casual (Private)

Sales 860,030 1,196,345 -28.1% 11,520,960 11,182,082 3.0%

Total Sales 3,151,447 3,142,513 0.3% 40,525,865 38,791,988 4.5%


The used-car industry will top 40 million sales in 2012 for the first time since 2007. That’s a 4.5 percent gain over last year’s 38.8

December Sets Stage for Full Year Sales of 40-Plus Million Sales – Best Since 2007

million. For franchised dealers,

2013 was a very good year with

sales up more than 8 percent while

independents only had a modest

increase of less than 2 percent.

Even though Private Party sales

have taken a hit lately, the channel

was able to score a 3 percent gain

for the year, riding to ore than 11.5

million units.

December Notes

Franchised new-car dealership

used-car operations are likely to

Total Used

Vehicles

YTD 12 40,525,865

YTD 11 38,792,169

YTD 10 36,883,987

YTD 09 35,491,762

YTD 08 36,530,404

YTD 07 41,418,561

YTD 06 42,565,544

YTD 05 44,278,402

YTD 04 42,706,103

YTD 03 45,279,140

YTD 02 43,025,087 - 10,000,000 20,000,000 30,000,000 40,000,000 50,000,000

YTD '12

YTD 10

YTD 08

YTD 06

YTD 04

YTD 02

Total Used Vehicles

top 1.15 million unit this month to bring the total year to nearly 15 million sales, a million more than Independent dealers. Both had

double digit increases in the first half of the month vs. year ago.

Private Party sales are running 28 percent behind last year with December unlikely to hit 900,000 units compared to 1.2 million

in December 2011. Major reason: Solid trade-in values from dealers and a growing number of those who are undecided about

buying new or used falling onto the new-car side.

Outlook for 2013? Expect Private Party (Casual) Sales to remain soft with Franchised Dealers grabbing a larger overall share

over total used sales – perhaps as much as 40 percent, depending on the strength of the new-car market.


Franchised Independent Franchised Franchised Independent Independent

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

Jan. '12 $11,516 $10,483 $10,855 94.26% $9,715 92.67%

Feb. '12 $11,653 $10,516 $11,090 95.17% $9,784 93.04%

Mar '12 $11,826 $10,592 $11,254 95.16% $9,874 93.22%

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 $11,319 $9,796 $10,558 93.28% $9,078 92.67%

Dec '11 $11,243 $10,572 $10,724 95.38% $9,883 93.48%

Percent Change Yr over Yr 0.68% -7.34% -1.54% -2.20% -8.14% -0.87%

Month Over Month Price -2.28% -1.95% -3.08% -0.82% -2.74% -0.80%

Used Prices Take a Hit in December vs. November; Dealers Make It Up on Volume

With new-car transaction prices down a touch (0.56 percent) vs. November, it follows that used-car prices would follow. And they

did with Month-Over-Month transaction prices at franchised dealerships off 3 percent.

For Independent dealers, transaction prices slipped 2.7 percent compared to November and more than 8 percent vs. December

2011.

For both channels, however, the lower transaction prices are more than offset by the higher volume and quicker inventory turnover.

40

45

50

55

60Used Vehicle Days' Supply Used Vehicle Days’ Supply

A modest increase of 8 percent was recorded in used-car days’ supply data in the

first half of December vs. year ago – 49.13 vs. 45.39 days.

Historically, 45 days was considered ideal, but when the industry went to that figure

and below in mid-2011, the shortage of inventory tripped dealers severely. Today, 50

days is considered by many to be ideal for meeting both shopper expectations on

availability of specific makes, models and colors.

CNW’s breakout of fleet and commercial vehicles differs

from what automakers consider “fleet” units.

For the most part, automakers include any contract that is

either through its fleet department (such as to rental-car

companies) and large commercial enterprises (Hertz).

CNW includes any contract to an individual who uses that

vehicle for 50 percent business use to be a commercial sale.

For example, a tradesman who purchases a single pickup

truck from a dealer for his contractor business is considered

“commercial” use if it is at least half of the time used for

business.


Fleet-Commercial Use Defined

cy12 Jan Feb March April May June July August September October November

All Sales 912,874 1,148,975 1,404,100 1,184,069 1,334,150 1,285,005 1,153,269 1,285,292 1,188,348 1,093,508 1,143,426

Percent Change v Previous Year 11.4% 15.7% 12.7% 2.4% 25.9% 22.0% 8.9% 19.9% 12.8% 7.1% 15.0%

Fleet and Commercial Use 39.52% 36.48% 36.92% 38.09% 36.41% 38.25% 38.73% 44.38% 41.43% 40.86% 42.18%

Total Fleet (Monthly Approximates) 360,768 419,146 518,394 451,012 485,764 491,514 446,661 570,413 492,333 446,807 482,297


FLEET COMMERCIAL VALUE -- Per Unit $27,219 $27,254 $27,614 $27,943 $27,904 $28,147 $28,221 $28,794 $28,937 $29,172 $29,258

FLEET COMMERCIAL VALUE -- Total $Bllns $9.82 $11.42 $14.31 $12.60 $13.55 $13.83 $12.61 $16.42 $14.25 $13.03 $14.11


Government Fleet 18,805 23,439 28,222 24,747 25,616 25,315 22,373 40,358 24,599 20,121 19,210

Share Gov't of Total Sales 2.06% 2.04% 2.01% 2.09% 1.92% 1.97% 1.94% 3.14% 2.07% 1.84% 1.68%

Percent Change v Previous Year -27.6% -17.5% -16.7% -18.0% 3.3% 10.8% 2.5% 83.7% 14.5% -7.5% -7.6%

Small Business Fleet and Commercial Use 35,967 47,338 59,815 51,152 59,770 58,082 53,973 60,537 57,278 54,347 57,972

Share Small Business of Total Sales 3.94% 4.12% 4.26% 4.32% 4.48% 4.52% 4.68% 4.71% 4.82% 4.97% 5.07%


Medium Business Fleet and Commercial Use 88,731 116,736 150,520 124,682 142,887 124,388 112,790 117,861 109,803 104,539 112,284

Share Medium Business of Total Sales 9.72% 10.16% 10.72% 10.53% 10.71% 9.68% 9.78% 9.17% 9.24% 9.56% 9.82%

Percent Change v Previous Year -3.6% 57.5% 67.6% 48.5% 104.6% 88.1% 66.6% 77.1% 68.7% 73.0% 40.8%

Large Business Fleet, Daily Rental, Commer. 217,264 231,633 279,837 250,431 257,491 283,729 257,525 351,656 300,652 267,800 292,831

Share Large Business of Total Sales 23.80% 20.16% 19.93% 21.15% 19.30% 22.08% 22.33% 27.36% 25.30% 24.49% 25.61%


40.00%

47.50%

55.00%

62.50%

70.00%Share Retail

Dec. 62.94%

Average Prices ($/Unit) Latest Month Versus:

Nov-12 Oct-12 Nov-11 Prior Month Prior Year

Total All Vehicles $9,554 $9,764 $9,869 -2.2% -3.2%

Total Cars $8,602 $8,822 $8,756 -2.5% -1.8%

Compact Car $6,848 $7,083 $6,974 -3.3% -1.8%

Midsize Car $7,789 $7,913 $7,704 -1.6% 1.1%

Fullsize Car $7,674 $8,380 $7,514 -8.4% 2.1%

Luxury Car $11,807 $11,950 $12,896 -1.2% -8.4%

Sporty Car $11,959 $12,269 $12,193 -2.5% -1.9%

Total Trucks $9,666 $9,783 $10,099 -1.2% -4.3%

Mini Van $6,971 $6,978 $7,411 -0.1% -5.9%

Fullsize Van $9,471 $9,947 $9,720 -4.8% -2.6%

Mini SUV $10,592 $10,809 $10,492 -2.0% 1.0%

Midsize SUV $6,828 $6,850 $7,287 -0.3% -6.3%

Fullsize SUV $11,344 $11,729 $12,343 -3.3% -8.1%

Luxury SUV $18,631 $19,014 $20,423 -2.0% -8.8%

Compact Pickup $7,158 $7,272 $7,694 -1.6% -7.0%

Fullsize Pickup $11,398 $11,362 $11,392 0.3% 0.1%

Total Crossovers $12,777 $13,084 $13,529 -2.3% -5.6%

Compact CUV $10,745 $10,893 $11,230 -1.4% -4.3%

Mid/Fullsize CUV $15,157 $15,592 $16,265 -2.8% -6.8%

Summary

Average wholesale used vehicle prices in November

resumed the general softening they have shown since

Spring, after what may turn out to be only an upward “blip”

in October due to Superstorm Sandy. Nevertheless, prices

may have shown even more Thanksgiving holiday

softening if it weren’t for the strong retail demand and

somewhat diminished supply in the Northeast following the

storm. Prices for younger units also held up quite well,

especially for off-rental program units sold by auto

manufacturers. This upward pressure on prices will

gradually wane and remarketers would be well advised to

try and sell units sooner rather than later, perhaps by year-

end.

Details

According to ADESA Analytical Services’ monthly analysis

of Wholesale Used Vehicle Prices by Vehicle Model

Class1, wholesale used vehicle prices in November

averaged $9,554 – down 2.2% compared to October and

down 3.2% relative to November 2011. Fullsize cars, vans

and SUVs took the biggest price hits during the month.

Prices for used vehicles remarketed by manufacturers rose

by 2.7% month-over-month in November, and were up

6.2% year-over-year, indicating good absorption of off-

rental program vehicles. Fleet/lease consignors

experienced a 3.0% decrease in November, leaving prices

down 2.6% year-over-year. Dealer consignors saw a 1.7%

average price decrease versus October, resulting in prices

being down 3.9% versus November 2011.


Based on data from CNW Research, retail used vehicle sales in November were up

28.7% year-over-year for franchised dealers and 32.7% for independent dealers,

although down by 6.6% month-over-month for both groups combined. November sales

of certified used vehicles were up 0.9% month-over-month but up by 7.3% year-over-

year based on data from Autodata.

Kontos Kommentary

Ford Motor Co. is reintroducing its Lincoln brand with what it calls the biggest

ad blitz in the luxury marque's history.

The splashy, multi-media ad campaign marks what Ford CEO Alan Mulally

calls “a new beginning” for the 90-year-old brand.

It arrives at a time when Lincoln has fallen behind rivals. Lincoln has dropped

to 8th place in sales among auto luxury brands in the U.S. and has an average

buyer of 65 years old.

Rebuilding a storied American car brand and finding new, younger buyers

won't be easy, since everyone is chasing younger buyers and Lincoln has a lot of

lost ground to cover.

The brand's new target is what Lincoln Global Chief Jim Farley calls

“progressive luxury consumers,” who are affluent purchasing unique choices that

are appealing to themselves, not others. This group comprises almost 25% of all

luxury vehicles in America.

Make no mistake. It will take Lincoln years to rebuild the brand. But cool, new

products can really accelerate that process. The campaign spotlights the cool-

looking, all-new MKZ mid-size sedan and MKZ Hybrid, which are due in

showrooms this month.

MKZ mid-size sedan

Page 8… CNW Research: Retail Automotive Summary December 2012

Jean Halliday’s

The 2013 MKZ is the first of four new products coming in the next four years.

The ad campaign's theme is “Introducing the Lincoln Motor Co.,” the original name of the outfit Ford bought in 1922. Lincoln's new ad

agency, HudsonRouge in Manhattan, part of WPP Group, has done a very good job of writing an emotional script and filming an eye-

catching montage, capturing the brand's heritage and new direction without going overboard.

Lincoln Motor Company -- Redux

Biggest Ad Blitz in Nameplate’s History

Continued next page


:30 version Official 2013 MKZ spot, Click Here.

Love that Abe Lincoln is portrayed in the spot. He's very topical these days with the current hot movie in theaters and in the wake of the Lincoln vampire flick.

“www.steerthescript.com” Click here.

LINCOLN NOT A SUPER BOWL FRESHMAN

Oops. The Lincoln folks got it wrong when they announced in

their press release that the brand will make its FIRST

appearance in the Super Bowl in 2013, a mis-factoid broadly

picked up by news outlets far and wide.

Lincoln's last appearance as an advertiser in the Big Game

was in the mid-90s.

The brand was scheduled to be in the 2005 Super Bowl with

an ad for the Mark LT pickup truck, but pulled it in the eleventh

hour after advocacy groups complained it made light of the

Catholic Church's sex scandals. The spot showed a clergyman

tempted by the keys to the 2006 pickup left on the collection

plate.

Ford used the ad slot during the '06 game for an existing Mustang convertible spot.

This time around for the Super Bowl, Lincoln followed the Ford brand's strategy with a major social media play as part of the push.

Lincoln partnered with late night host Jimmy Fallon, who recruited people on Twitter to answer road trip questions that will help create the

Super Bowl commercial. He also appears in several online videos

explaining the “Steer the Script” promotion, which you can see on

steerthescript.com.

Here's a few of the Tweeted ideas- in 140 characters or less, mind you

“Have a German drive it and realize how much better it is than a BMW

or Mercedes. Include funny accent Or ….”Batman pulls up next to the

MKZ, looks at guy in MKZ. Cut to Batman driving off in MKZ.” And how

about “Abe Lincoln driving new Lincoln and tell of its history a la The

Gettysburg Address as he covers the countryside.”

There's already some auto experts who think this deal with Fallon

misses the mark for the premium category. Whether you like Fallon or not

( I am not a fan), the whole strategy behind this effort is to engage

younger consumers...period. People who may not even know a single

model Lincoln makes today and who couldn't afford one today. This social

media exercise is to get those people to rediscover Lincoln, a fresh start if

you will. Continued next page

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

http://steerthescript.com/

http://steerthescript.com/


Another hurdle for Lincoln is

the alpha names, which it

introduced in 2006 to emulate

other luxury car makers. Even

after 6 years of these alphabet

soup car names, there's still lots

of confusion as to which model is

which.

Lincoln is going to have to

figure out some way to clear up

this name game.

There's also been a lot of

discussion on Facebook among

auto writers questioning Lincoln's

wisdom of running its brand flag

up the pole so early ahead of new

products.

Those critics are missing the

point. After a long lull, Lincoln

needs to start banging some

drums NOW to build brand

awareness about the brand's big

shift ahead of its new product

cycle. This blitz is a giant, flashing

neon sign announcing a change

is afoot at Lincoln.

That's the point of this blitz, not

selling more cars.

That comes at a later date –

hopefully.

Top 10 Most Stodgy

cy2012 cy2011 cy2007 cy2006 cy2004 cy2002 cy2000

Stodgy Stodgy Stodgy Stodgy Stodgy Stodgy Stodgy

Lincoln car 97.52% 97.51% 97.46% 98.34% 95.3% 92.4% 93.7%

Buick car 88.62% 90.46% 90.22% 91.64% 98.4% 98.6% 98.1%

Chrysler

truck 83.24% 86.11% 86.83% 86.59% 87.8% 86.1% 86.3%

Mercedes

car 78.89% 79.04% 82.58% 81.29% 76.8% 77.6% 82.4%

Chrysler car 77.24% 83.67% 82.37% 81.97% 91.2% 88.2% 86.1%

Volvo car 82.37% 82.24% 80.53% 81.97% 80.1% 82.3% 85.7%

Audi car 76.67% 78.97% 79.92% 80.34% 87.6% 89.3% 89.7%

Cadillac car 72.25% 76.12% 78.64% 80.66% 84.4% 87.1% 91.4%

Lincoln

truck 82.31% 80.46% 78.64% 79.81% 73.4% 71.6% 71.1%

Land Rover 79.69% 77.24% 78.56% 78.89% 88.1% 88.4% 89.3%

Top 10 Least Stodgy

Kia truck 18.92% 18.57% 17.47% 15.18% 13.9% 13.7% 12.5%

Scion xB 22.47% 20.81% 16.94% 11.64% 5.7%

Dodge truck 23.33% 23.31% 13.63% 12.21% 49.2% 47.5% 42.3%

Hyundai

truck 18.91% 17.53% 13.27% 10.13% 11.4% 11.1% 0.0%

Mini Cooper 12.44% 12.62% 12.87% 11.72% 10.1%

VW truck 18.97% 18.54% 9.12% 9.06% 8.9% 10.2% 16.3%

Porsche car 8.16% 8.15% 8.05% 8.09% 9.5% 9.1% 8.8%

Jeep truck 7.72% 7.96% 7.94% 8.04% 8.4% 10.1% 16.7%

Scion xA 9.91% 9.86% 7.73% 5.89% 6.1%

VW car 8.42% 8.05% 7.02% 6.91% 7.7% 7.7% 11.2%

Battling the Stodgy Perception: Looking for a younger audience? CNW ’s ongoing “Stodgy” Index shows Lincoln has a long way

to go to turn around its image as a geezer brand. It can be done. Just look at the Cadillac improvements between 2000 and today. In 2000, 91 percent

of the youth market considered Cadillac to be “stodgy.” Today it’s 72 percent. Chrysler shaved three points off its Stodgy rating in a single year, thanks

to some outstanding “Imported from…” ads. Lincoln Car, by the way, has gone in the other direction since 2000 – up from 93.7 percent to 97.5 percent

this year.

0.14% 0.13%

0.21% 0.16%

0.17% 0.18% 0.20%

0.28% 0.33%

0.42%

0.27%

12.09%

11.40% 11.87%

11.31%

11.78%

12.21%

12.48%

12.04% 12.15%

11.11%

11.66%

12.54%

13.45% 13.81%

12.34% 12.41% 12.13%

12.24%

12.87%

13.85%

12.59%

11.86%

2.09% 2.13% 1.96%

1.93%

1.70% 1.54% 1.68%

1.81% 1.66% 1.66%

1.56%

Page 11... CNW Research: Retail Automotive Summary December 2012

Entry Level Utility Vehicle

Budget Car Economy Car

Electric Car

Budget and Economy Models Stall; Luxury Cars Shine; EVs? Feh.

If it had a big price tag, October and November were swell months for luxury models. Almost all market segments where the word “luxury” or

“upscale” or “premium” are used saw a growing market share of total sales. Luxury cars, for example, had the best month of 2012 in November,

capturing more than 2 percent of total deliveries. “Premium Cars” racked up its fourth month-over-month gain. Ultra-Premium Utility Vehicles –

best month of the year. Ditto Upper Premium Sporty Cars.

As for the mass market vehicles offering low prices or high fuel economy, Budget Cars had their second worst month of the year while

Economy Cars dipped below 12 percent for the first time of 2012. Electric Vehicles? As they say in New Jersey, Furgetaboutit.

The rest of the market segments pretty much remained unchanged or showed minor ups and downs. Expect that to change in 2013 as more

trucks are sold and hot diesels come to market.

1.62%

1.46% 1.33%

1.49% 1.66% 1.74% 1.79%

1.38% 1.52% 1.65%

1.89% 8.51%

8.20% 7.99% 8.20%

8.34% 8.28% 8.77% 8.53% 8.60% 8.70% 9.63%

10.78% 11.04% 11.43% 11.87% 12.44% 11.96% 10.76%

10.14% 9.23% 9.27% 9.89%

1.32% 1.35% 1.38% 1.33% 1.46% 1.52% 1.67%

1.21% 1.47%

1.73%

2.10%

1.56% 1.71% 1.68%

1.99% 2.05% 2.05% 2.08%

1.66% 1.42% 1.60% 1.65%

10.90% 10.56% 10.37% 10.19% 10.46% 10.58% 10.78% 11.63% 11.96%

13.25% 11.64%


Full Size Pickup Full Size Van

Luxury Car Lower Midrange

Lower Mid Range Utility Vehicle Large Utility Vehicle

4.39% 4.64% 4.24%

4.63% 4.05%

4.52% 3.93% 3.76% 3.86% 3.74% 3.93%

0.37%

0.28% 0.30% 0.29% 0.31% 0.26%

0.37%

0.24% 0.26% 0.28%

0.34%

3.70% 3.52% 3.35% 3.35% 3.06% 3.51%

3.80% 3.71% 3.67% 3.83% 4.16%

3.47% 3.86% 3.85% 4.01% 4.14%

3.72% 3.78% 4.28% 4.05%

3.66% 3.36%

2.32% 2.27% 1.98%

2.17%

2.66% 2.70% 2.35% 2.34% 2.20%

2.42% 2.26% 0.24%

0.20% 0.21% 0.24%

0.29%

0.21% 0.23% 0.26% 0.25% 0.24% 0.25%


Near Luxury Car

Midi-Van Mid Range Utility-Vehicle

Minivan

Premium Car Premium Mid-Range Car

1.75% 2.07% 2.19%

2.43% 2.39% 2.64%

2.28% 1.94%

1.70% 1.92%

1.75%

0.19% 0.17% 0.16%

0.15% 0.17% 0.14%

0.17% 0.19%

0.19%

0.23%

0.17%

2.54% 2.23% 2.07% 1.91% 1.91% 1.93% 2.02% 1.86% 1.79% 1.70% 1.69%

12.56% 12.42%

12.87%

12.43%

11.54% 11.21%

11.85%

12.71% 12.46%

12.10%

11.28%

3.24% 2.73% 2.50%

2.76% 2.72% 2.74% 2.72% 2.78% 2.91% 3.27%

3.69%

0.25% 0.25%

0.31% 0.34%

0.27%

0.34% 0.33% 0.33% 0.35% 0.35% 0.34%

Page 14… CNW Research: Retail Automotive Summary December 2012 Premium Sporty Car Premium Utility Vehicle

Standard Mid Range Car Small Pickup

Sport Utility Pickup Touring Car

0.17% 0.16%

0.12%

0.18% 0.19% 0.16%

0.19%

0.15% 0.17%

0.20% 0.22%

0.04% 0.05%

0.02%

0.04%

0.06% 0.05%

0.03%

0.05% 0.06%

0.08%

0.09%

1.61% 1.54% 1.37%

1.81% 1.90% 1.88% 1.79% 1.97% 1.98% 2.07%

2.23% 0.05% 0.04% 0.04%

0.05% 0.04% 0.04% 0.05%

0.04% 0.05% 0.05%

0.04%

0.02% 0.01%

0.02% 0.02%

0.02% 0.02%

0.02% 0.01%

0.02% 0.02% 0.02% 0.07%

0.05%

0.03% 0.03% 0.02% 0.02% 0.02%

0.01%

0.03%

0.02% 0.02%

Page 15… CNW Research: Retail Automotive Summary December 2012 Traditional Car Ultra Upscale Car

Ultra Luxury Sporty Car Upper Mid-Range Utility

Ultra-Premium Utility Vehicle Upper Premium Sporty Car

CNW Research: Retail Automotive Summary

Back Page *Deliveries not sales Dec 1-15 Dec 1-15 % Chng Actual Sales Dec '12 Full Mo

cy2012 cy2011 12 v 11 Dec '11 Sales Change

New Cars Extension

Detroit 3 152,335 131,691 15.7% 158,347 183,170 15.7%

Asian 169,571 131,281 29.2% 330,424 426,797 29.2%

European 43,641 38,672 12.8% 84,437 95,286 12.8%

Ttl Pass. Cars 365,547 301,644 21.2% 573,208 705,253 23.0%

New Trucks

Detroit 3 222,637 236,119 -5.7% 421,145 397,098 -5.7%

Asian 58,216 51,239 13.6% 211,670 240,492 13.6%

European 6,419 5,672 13.2% 37,269 42,177 13.2%

Ttl Lt. Trucks 287,272 293,030 -2.0% 670,084 679,768 1.4%

Ttl Industry 652,819 594,674 9.8% 1,243,292 1,385,021 11.4%

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

cy2012 cy2011 12 v 11 cy2012 cy2011 12 v 11

Lease Share 28.7% 26.4% 8.7% 28.9% 26.2% 10.3%

Floor Traffic - New 78.03 69.92 11.6% 77.44 64.25 20.5%

Floor Traffic - Used 84.41 80.62 4.7% 84.42 76.55 10.3%

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

cy2012 Full Dec Same Mo '11 Prev Mo Dec '12 98,250

Avg. New MSRP $37,204 $35,806 3.90% -0.31% Dec '11 101,500

Total Discounts $5,186 $5,704 -9.08% 1.29% % Change -3.2%

Manufacturer Incentives $3,836 $4,008 -4.29% 1.91%

Dealer Incentives $1,350 $1,696 -20.40% -0.43% Purchase Delay Months

Core Transaction Price**** $32,018 $30,102 6.37% -0.56% Dec '12 3.37

% Mfg Incentive of MSRP 10.31% 11.19% -7.9% Dec '11 3.8

% Ttl Discounts of MSRP 13.94% 15.93% -12.5% % Change -11.3%

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ZUnencumbered [ Vehicles Could Make Z13 a 16 Mil Year...ZUnencumbered [Vehicles Could Make Z13 a 16 Mil Year If all pieces fall into place, it ... budget and spending, the underpinnings