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


1 Comment

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