Americans are gearing up to replace their aging vehicles.
by Jerry Davich
With the sluggish economy in our rearview mirrors and new car sales back in high gear, vehicle makers are revving up their coming attractions for 2014.
Luxury cars, family sedans, pickup trucks, sexy sports cars–there's a rising demand again for all new vehicles despite average sales prices this year up almost $1,000 over last year's sticker prices. New car sales spiked 17 percent in August alone, the highest jump in the past few years and, analysts predict, a hopeful harbinger for the new year. Not to mention low interest rates, lower gas prices, the need to replace aging vehicles and an expected jump in end-year sales.
“For 2013, the auto industry is at the 15.5 million mark in total vehicle sales and the industry is growing again with a bigger pie for the market,” says Alan Adler, spokesman for General Motors in Detroit. “We continue to see improvement from an economic standpoint and, for whatever reason, the auto industry is really leading the country's economic recovery.”
With the average age of a vehicle on the road at 11 years old, consumers are now returning to dealerships to replace their aging vehicles and this trend is expected to continue into 2014, Adler says.
“There's a lot of pent-up demand out there and this is part of the reason for higher sales expectations,” Adler says. “There's quite a bit of replacement demand taking place already.”
Perry Watson III, president of Lexus of Mishawaka, attributes high sales expectations for 2014 to, in part, automakers aiming at a younger demographic of customers. “A lot of the 2014 cars coming out are red hot with a lot of curb appeal for this group,” says Watson, who's expecting red-hot sales of the new Lexus IS 250 and Kia Cadenza. “The Cadenza is absolutely gorgeous.”
boxed frame with high-strength steel, cutting road noise and allowing smoother driving.
Tom VanProoyan, president of Schepel GMC Cadillac in Merrillville, points to the 2014 Cadillac CTS, the GMC Sierra pickup truck and the Buick LaCrosse as most promising. “Many of these 2014 vehicles are brand new or significantly redesigned,” he says.
Bill Fennell, sales and lease consultant at Arnell Chevrolet in Burns Harbor, also expects strong sales next year and in 2015. “We also expect to see a larger number of people who lease vehicles, as more people realize the benefits of leasing,” he says.
Fennell says the 2014 Chevy Impala is redesigned, attracting a lot of interest and sales are already brisk. Consumer Reports and The Wall Street Journal have both given high accolades to Chevy's new “luxury vehicle.”
Also, the 2014 Chevy Silverado is now going head to head–or grille to grille in this case–for the title of best truck in America with a fuel-economic V8, improved horsepower and payload capacity.
“The surprise vehicle of 2014 will be the new Diesel Cruze, boasting 46 miles per gallon on the highway with many early customers reporting 53 miles per gallon,” Fennell says. “Our fleet of vehicles is pushing the edge in fuel economy and safety. With the addition of the EV Spark, we are pushing into zero emissions as demand for more fuel efficient and environmentally friendly vehicles grows.”
Brad Hallal, general manager of Griegers Chrysler, Dodge and Jeep in Valparaiso, reports an increase in new car sales this year by more than 20 percent. “All things lead to an even stronger 2014,” he says, noting that the industry is still playing catch-up to the federal government's fuel economy requirements.
In 2012, strict fuel economy and carbon emission mandates were announced, forcing what's considered to be the toughest challenge to the industry since earlier government regulations in the 1970s. The new regulations call for the equivalent of 54.5 miles per gallon by 2025, compared to 29.7 mpg last year.
Although no “major shifts” are expected next year in regard to new regulations, manufacturers are in overdrive to meet these looming gas-mileage criteria.
“Lexus and Toyota are way ahead on this issue already because of our hybrids,” says Watson of Lexus of Mishawaka. “We have the highest number of hybrid vehicles of any luxury brand on the market. For instance, one luxury sedan that gets 40 miles to the gallon.”
Adler, from General Motors, says, “We're working diligently on this. Since coming out of bankruptcy in 2009, GM has invested about $9 billion in manufacturing in the U.S.”
Hallal from Griegers says Chrysler's eight-speed and nine-speed transmission will help his company gain some traction on this pending regulation.
“The eight-speed available in our Chargers, 300s, Grand Cherokees and Ram trucks has increased our fuel economy significantly. The nine-speed is the transmission in our new Cherokee,” Hallal says.
That automaker is heavily advertising the 2014 Jeep Cherokee, which replaces the Liberty model with the latest technology, such as park assist, adaptive cruise control and wireless charging for smart phones. “It's truly a car platform, not a truck platform, as it used to be,” Watson says.
Hallal agrees, noting, “It drives like a luxury car but has the capability of a Jeep. It is possibly going to be our largest-selling nameplate this coming year. It's a real game changer.”
The other highly featured car is the new Dodge Dart, smartly priced starting at $17,995 and already one of the most awarded vehicles in its class. “It's like crossing an American muscle car with an Italian Alpha Romeo,” Hallal says.
GM is in the midst of a “very aggressive product onslaught” across its four U.S. brands, Adler says. In 2013, the automaker launched 18 all new or significantly updated cars, trucks and crossovers.
“Several of these are 2014 model year vehicles and, in the 2014 calendar year, the new products continue with an additional 14 new or updated models,” Adler says. “We're very excited about 2014, and so is the auto industry.”
