What is Ahead for the U.S. Auto Industry in 2016


by Chuck Parker, Publisher, Automotive Digest

1. Dealer Marketing:
The existing vehicle retailing business model utilized by manufactures and their dealerships is about to be disrupted by changing consumer needs, attitudes, and applications. Vehicle transportation use will be viewed as more of a utility and ownership of vehicles will decline by as 10% in next two yeers.

2. Fuel Pricing:
Fluctuating gas prices and oversupply will case gas prices to decline to as low as $2 per gallon.

3. Self-driving Vehicles:
More OEM’s investing and developing autonomous vehicles. OEM s will merge, be acquired, or partner with Google, Apple, and other technology companies

4. Vehicle Recall Applications:
Software updates and OTA (Over the Air) interaction with the vehicle will replace traditional recall practices, processes, and methodology.

5. Diesel Pollution Fallout:
VW will overcome market issues and other manufactures will also become involved in the inaccurate measurement and reporting of carbon gases including several thousand tuners in California and throughout the country

6. Online Car Sales:
Actual sales of new and used vehicle will occur in 2016. One or two OEMs will lead and support dealers who actually sell and deliver new and pre-owned vehicles online and without going to the dealership.

7. Vehicle Leasing:
More than one third or over 30% of consumers will increasingly “acquire the “use” of their vehicles with lease funding in 2o16 and beyond

8. Vehicle Cost or Transaction Prices:
New Car incentives will decline in 2016 and will be replaced in some cases by actual cost reductions or OEM discounted sales. Transaction prices of new vehicles will also decline as car shopper migrate to used vehicles coming off lease in a high volume.

9. Electric and Hydrogen Vehicle Sales:
The volume of EV and alternatively powered vehicles will increase a faster rate than gas & diesel powered vehicles. Estimated growth will be in excess of 20%.

10. Pre-Owned Vehicle Marketing:
The volume of off lease and rental cars coming into the used car market and dealer inventory is going to cause dealers, finance companies, and even OEMs to offer lease funding and balloon financing of certified used vehicles in this category


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