Japanese Automakers Lead US Sales

The Nissan Motor Co., Honda Motor Co., and the Toyota Motor Corp. grabbed a notable record share of U.S. sales in June. The increase in sales is attributed to the rising demand for fuel-efficient cars.

Sales increased 23 percent for Nissan, 11 percent for Honda and ten percent for Toyota. Meanwhile, the market share for the General Motors Corp., Ford Motor Co. and the Chrysler Group dived to a record low 50.3 percent, according to data compiled by Bloomberg. The Japanese gained as new products and improvements in quality surveys for U.S.-based rivals failed to translate into higher sales. Additionally, U.S. demand and the yen's 2.7 percent decline against the dollar may prompt Japanese automakers to increase their profit forecasts.

"Gas prices are tied to Japanese car sales in the U.S., so high prices in May boosted sales, particularly of small cars,'' said Takashi Aoki, who manages about 130 billion yen at Mizuho Asset Management Co. in Tokyo. "Japanese carmakers will probably revise their earnings forecasts at mid-year because of the weak yen."

Satoshi Aoki, Honda's chairman, said that the automaker may raise its profit forecast for the current fiscal year because of the yen's decline. With gasoline prices still near $3 a gallon, U.S. consumers view vehicles from the Asian companies more favorably, said Jack Nerad, Kelley Blue Books' senior market analyst.

"There is still the perception of quality and reliability for the Asians that the domestics don't seem to be able to match," said Nerad, who is based in Irvine, California. "Any fuel-price increase is always a positive for the Asians, and the Japanese specifically, again mainly based on perception."

The Nissan tail light shines at its brightest in June as the company reported its biggest monthly gain in more than a year. The record was bolstered by an 83 percent surge for Altima sedans and higher sales of Sentra small cars and Versa subcompacts. The new coupe version of the Altima midsize car added 2,286 sales, said Fred Standish, Nissan's spokesman.

Toyota was significantly backed by the demand for fuel-efficient vehicles such as the Prius hybrid, as gasoline prices surged $3 a gallon in the U.S. for a third straight year. The average price is $2.953 nationwide, compared with $2.926 a year earlier, according to AAA's Daily Fuel Gauge Report.

Prius sales increased 83 percent to 17,756. Toyota also posted gains of 33 percent for the Yaris small car and 11 percent for the Camry sedan. Sales of the redesigned Tundra pickup more than doubled to a record 21,727, as the Japanese automaker boosted incentives June 15 on the truck to as much as $3,500 or no- interest loans for as long as 60 months, citing competing offers.

"Our incentive actions are being driven by the segment,'' said Jim Lentz, the executive vice president of Toyota's U.S. sales unit. "We still use incentives only tactically, when necessary.''

Toyota overtook GM in global vehicle sales in the first quarter. The Toyota City, Japan-based company is also gaining on Ford to become No. 2 in the U.S. In June, Toyota sold a record 245,739 cars and light trucks in the U.S., 200 fewer than Ford. In the first half, the Dearborn automaker held a 39,558-vehicle lead, about a tenth of its 319,208-unit advantage a year earlier.

Jesse Toprak, an auto analyst at Santa Monica, California- based Edmunds.com, called the Tundra discounts "unusually'' high for a Toyota model that is fewer than six months old. "It shows us how determined Toyota is to grab market share in the profitable truck segment,'' he said. Toyota's market share in June rose two percent from a year earlier to 16.9 percent.

The Saturn brand lineup has been revitalized to make it more appealing to auto buyers. As part of General Motors' aim to win back consumers, they have turned to German automaker Opel to help Saturn design its new vehicles. Aside from redesigning existing templates, Opel also introduced an all-new vehicle model in the form of the Saturn Outlook.

Aside from the Outlook, the revitalization of the Saturn lineup is also anchored on the Saturn Aura. The midsize sedan was recently named the 2007 North American Car of the Year, taking the distinction over the Toyota Camry and the Honda Accord. Complementing the Aura in Saturn's lineup is the Saturn Vue.

The nameplate is the best selling Saturn automobile. For the 2008 model year though, Saturn decided to redesign the crossover SUV. The compact Vue is now being seen as a serious competitor to established nameplates such as the Honda CR-V and the Toyota RAV4. The redesigned Vue is also in direct competition with the Hyundai Santa Fe.

While the previous Vue is a good vehicle in terms of design, handling, and performance, its competitors offer more than the norms. Thus the redesigned Vue's design was made to look even better than its predecessor. The performance is also improved. Indeed, although the new Vue shares its name wit its predecessor, it is a whole new vehicle on its own.

With Opel's help, the Vue was designed with clean but muscular lines. European car styling cues have been integrated into the designing of the vehicle. The revision in the exterior design of the Vue made it look bulkier. With rounded of edges, the new Vue exudes an aura of friendliness yet the wheels are positioned that it gave the Vue an aggressive stance.

The redesigning of the Vue does not hide the fact that it comes from Saturn. The snub-nosed Vue with its grille accented by the Saturn badge is unmistakably a Saturn. Another Saturn-trademark is the headlight configuration which seems to have a jagged edge. This is something that was dome to the headlight of the 2007 Vue. The redesigned Vue though has that jagged edge in the headlight more pronounced.

Car buyers can choose from a wide choice of Vue variants. Two trim levels, two drive configurations - the Red Line and the Green Line - are the choices for auto buyers. The Red Line is the more sports-oriented Vue while the Green Line is a hybrid Vue. If one is looking for performance from a Vue, the Red Line is the obvious choice. With its responsive steering, good stability, and maximum stopping power provided by Saturn brake calipers, the Red Line is aimed for performance enthusiasts.

The Green Line, on the other hand, uses General Motors' "mild hybrid" technology. This means that while it is equipped with an internal combustion engine ad an electric motor, it cannot be driven by battery power alone. Nevertheless, the Saturn Vue Green Lien provides better fuel economy than its base model. With tax incentives offered with hybrid vehicles, the Saturn Vue Green Line is being considered by many as the cheapest variant of the Vue.

The changes made to the Saturn Vue in terms of performance and design would go a long way to making the compact SUV a strong contender in its segment. Going up against established nameplates such as the RAV4 and the CR-V, the Vue is equipped with what it needs to come out on top

Source: http://riverside-honda.blogspot.com/2007/09/japanese-automakers-lead-us-sales.html