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Molly Brookshire

As Sonata turns cautious, Camry flees good-but-frumpy image - 0 views

  • With an ambitious, sporty restyling just three years into the current cycle, Toyota sought to change the Camry's image as a bland appliance. Hyundai, meanwhile, positioned its 2015 Sonata to cast a wider net by offering shoppers a more upscale driving experience and a design less flamboyant than that of the swoopy, value-priced version that burst into the segment five years ago.
  • The twin unveilings spotlighted two competitors -- one a perennial but aging champion, the other a small but feisty challenger -- that still have something to prove in a mature market.
  • As an attention-hungry challenger, "We had to do something fairly dramatic five years ago," Dave Zuchowski, Hyundai Motor America CEO, said in an interview, referring to the outgoing Sonata's polarizing shape.
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  • But with nearly 900,000 more Sonata owners on the road since the outgoing model's debut, and a chance to build a broader, more sustainable following, "We have to be more careful," Zuchowski said.
  • But Hyundai says the car's suspension and steering have been redesigned for better ride and handling. The interior also is new, with greater use of soft-touch materials and more countermeasures against road noise. Also, high-tech features and advanced safety equipment -- plus a starting price that Zuchowski says won't stray far from the outgoing model's sticker of just over $22,000, with shipping -- will help the Sonata retain the value image that has been a key purchase reason for the sedan, Hyundai says.
  • With 6.6 million Camrys on the road, Toyota understands well the delicate balance Hyundai is seeking. The Camry's large, loyal following has allowed it -- compelled it -- to stick with safe, modest designs and driving characteristics, generation after generation.
  • But when the current generation was launched in late 2011, mostly to yawns from auto critics, the sportier SE model became the best- selling trim package. Toyota took the hint.
  • Every piece of sheet metal except the roof has been changed, as have more than 2,000 part numbers. For some automakers, that constitutes a redesign.
  • Both products will land in a mid-sized market that has been roiled by intense competition, not only within the segment but also from fast-growing crossovers. At 2.6 million units in 2013, sales in the segment grew just 1 percent from the previous year,
  • No one feels this more than Toyota, which is fighting to continue the Camry's 12-year streak as America's best-selling car against a strong challenge from the Nissan Altima. Toyota has spent more on Camry incentives, yet had a lower mean transaction price, than its top four competitors -- the Altima, Honda Accord, Ford Fusion and the Sonata -- every month since November 2012, according to TrueCar.
  • Carter hopes the investment in the new-look Camry will allow Toyota to dial back on incentive spending. "One way to lower incentives is to increase demand, and that's what this car is about," Carter said. But if competitors should raise their incentives, Toyota won't sit still. Said Carter: "This is a competitive market. And we're going to compete."
Molly Brookshire

VW preps reworked diesel engine for '15 - 0 views

  • diesel
  • went into about 22 percent of the cars that VW sold in the United States in 2013.
  • It will also be more efficient, VW says, though the company has not released estimates for city and highway
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  • VW has started launching TDI “value editions” of select models to better position diesel as a money-saving option on par with hybrids
  • The value Jetta starts at $22,115, including shipping, with a TDI engine and a manual transmission -- a $2,300 price cut that has bolstered its position as the least expensive diesel car on the U.S. market. That puts it squarely between the base Toyota Prius C ($19,890, including shipping) and the base Toyota Prius ($25,010, including shipping).
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    VW to leverage its diesel engine to grow sales in States and compete with hybrids like Prius in price and fuel economy. VW dominates diesel sales in the US, which accounted for 22% of their sales in 2013.
Molly Brookshire

Hyundai promises a more refined, upscale Sonata during unveiling - 0 views

  • Hyundai says it spent
  • over the past three years developing the 2015 Sonata.
  • roughly $416.3 million
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  • For its seventh generation, Hyundai says the Sonata has “evolved into a more refined premium vehicle” that “provides a luxury feel of a car from the segment above.”
  • The Sonata became Hyundai’s top-selling car, with sales topping 200,000 units in 2011, 2012 and 2013. But sales have slowed since fresher competing models such as the Honda Accord, Ford Fusion, Nissan Altima and Toyota Camry hit the market, with sales dipping by 12 percent last year and off another 28 percent through the first two months of 2014.
Molly Brookshire

Toyota's major midcycle revamp aims to keep Camry on top - 0 views

  • The midcycle revamp is an apparent response to consumers' indifferent reaction to the bland 2012 redesign and Toyota's subsequent need to crank up incentives. Camry sales were flat in 2013, just keeping pace with the overall segment, and the car's 2014 sales through February fell 17 percent, compared with an 11 percent drop for the segment.
  • Since the redesigned Camry was launched in October 2011, the car's incentives have risen above the average for the mid-sized sedan segment -- this from an automaker that has prided itself on having some of the lowest incentives in the industry. But the Camry incentives didn't help lackluster sales.
  • Through February, the Nissan Altima was the top seller, although one large multibrand dealer said that was the result of big sales to daily rental fleets, which will subside as the year progresses.
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  • Another worrying trend for Toyota could be slipping owner loyalty.
  • Camry owners who bought another Camry stayed level, at 30 percent,
Molly Brookshire

Toyota's North America chief seeks fuel cell sedan supply boost - 0 views

  • Toyota Motor Corp.’s North American chief, preparing to sell Camry-sized hydrogen sedans next year
  • wants more U.S. supply of the Japan-built cars.
  • Toyota, the world’s largest seller of hybrid-electric autos, is to sell the as-yet unnamed four-door model in California in 2015, as well as in Japan and Europe
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  • Battery models carry electricity in their lithium-ion battery packs while fuel cell vehicles make electricity on board in a chemical reaction between hydrogen and oxygen, with only water vapor as a byproduct. While hydrogen vehicles have a range comparable to gasoline vehicles and need only a few minutes to refuel -- compared with hours for most battery autos -- there are few hydrogen pumps currently open to the public.
  • California has said it will provide as much as $200 million over the next decade to help open stations across the most populous U.S. state.
  • Fuel cell autos will need three to five years to build a market presence in California, and at least a decade to get to U.S. sales of half a million or more annually, Lentz said. Still, advances in the technology and an industrywide push, with Daimler AG, General Motors Co. and Nissan also planning to sell fuel cell models, may help the vehicles get a market foothold faster than hybrids, according to Lentz.
Molly Brookshire

'15 Genesis is worthy of premium label - 0 views

  • the Genesis will help Hyundai continue its so-called intercept strategy.
  • If you think about Lexus in 1989, most of their customers came out of nonluxury products," O'Brien explains. "They were customers that were on their way to a German manufacturer, but they were intercepted with a better value and a better product. We're basically in that mode now."
  • Hyundai considers the Genesis' main competitors to be the Lexus GS, Cadillac CTS and Mercedes E class.
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  • Mid-sized luxury sedans from Mercedes, BMW and Audi still have the edge, but the 2015 Genesis takes a big whack at their advantage.
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