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Mar/27 - Ford's health plan: Slim down inventory Ford's health plan: Slim down inventory
Ford CFO Bob Shanks warned analysts and investors, "don't be surprised" if Ford cuts production or temporarily idles assembly lines across North America in the coming months. The strategy, meant to avoid bloated inventory, will also eat into revenue. AutoPacific's Dave Sullivan says it's a dangerous plan. "Closing a plant down for a week or reducing a shift reduces the amount of vehicles made and therefore reduces revenue....That's what makes it dangerous; when you know your revenue is what you push out the door. If there is no demand, you can continue to push, and that's when bad things happen."

Mar/19 - Rollbacks unlikely on fuel standards Rollbacks unlikely on fuel standards
Is President Trump's pledge to review U.S. fuel economy standards the first step in returning to unregulated, high-pollution gas guzzlers? Industry experts say no. While there may be some recalibration, most automakers compete globally, meaning they face strict emissions standards in other markets. There’s also California, whose statewide standards are stronger than the rules in the United States. Carmakers have made significant progress in making more-efficient vehicles. AutoPacific's Ed Kim says, "These technologies have appreciably made new vehicles better. I don’t think people are going to want to go backwards.”

Feb/08 - AutoPacific Forecasts 17.4 Million U.S. Light Vehicle Sales in 2017 AutoPacific Forecasts 17.4 Million U.S. Light Vehicle Sales in 2017
AutoPacific today officially announced its forecast for 2017 U.S. light vehicle sales. Down approximately 200,000 units from 2016 sales, AutoPacific forecasts 2017 will see 17.4 million units sold. “We are simply seeing a plateau of demand following years of recovery after the recession,” explains Ed Kim, AutoPacific Vice President of Industry Analysis.

Jan/26 - Trump's Big Border Tax: Answers for Car Shoppers Trump's Big Border Tax: Answers for Car Shoppers
President Trump has threatened escalations in tariffs on foreign-made goods if U.S. manufacturers, including automakers, don't bring more manufacturing stateside. About 60% percent of U.S. light-vehicle sales in 2016 came from cars and trucks built in the U.S. AutoPacific's Dave Sullivan says "[a] 35% tariff on anything — [even a] 10% tariff on an $11,990 car, takes away from a car, from having a new car that people can afford."

Jan/25 - Hefty Truck, SUV Profits Fuel U.S. Auto Industry Investment, Jobs Hefty Truck, SUV Profits Fuel U.S. Auto Industry Investment, Jobs
Automakers are pushing new investment in U.S. production of trucks, crossover and SUVs to tap into the higher profit margins they yield. The reason: they make automakers a lot of money. AutoPacific's Dave Sullivan says automakers spend about the same amount to make a vehicle, whether it’s a crossover or truck or sedan. Additionally, says Sullivan, “We haven’t really hit the theoretical ceiling for what consumers are willing to pay for pickup trucks. So the margins just keep growing.”