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Minivan sales up, but not Detroit's
New models don't help automakers beat Asian brands
June 22, 2004
BY SARAH A. WEBSTER AND JEFF BENNETT
FREE PRESS BUSINESS WRITERS
There's been a big boost in minivan sales this year, as the stigma associated with the loved-and-hated "Mommy-mobile" seems to be fading. But Detroit's automakers, even with four new minivans, aren't cashing in -- at least not yet.
Minivan sales are up 7.2 percent this year through May, compared with the same period a year ago -- double the increase of the overall new car and truck market. But minivan sales are down 12.6 percent for General Motors Corp., 6.7 percent for Ford Motor Co. and 5.8 percent for DaimlerChrysler AG. And with new minivans from Ford, Mercury, Dodge and Chrysler, some analysts are wondering why.
Richard Perna, 30, of Kentwood has test driven a Nissan Quest, which he and his wife liked. But they were disappointed with the fit, finish and handling of Ford Motor Co.'s new Freestar. He said he won't even consider Chrysler's new minivans -- despite the new Stow 'n Go seats in the second and third rows that fold into the floor and offer more storage. That's because his friends have had so many problems with the company's vehicles in the past, he said. The couple plan to test-drive the Toyota Sienna as soon as their local dealership has one available, as well as GM's new minivans when they come out later this year. But Perna said he's already leaning away from GM's newly dubbed crossover sports vans because they won't have the {Ed. - specific} side curtain air bags that he wants for protection.
Perna has already decided against an SUV -- a staple for Detroit's automakers -- because he views them as inefficient and potentially dangerous, and he doesn't like their truck-like handling. So even though his family has its roots in the Detroit auto industry, he's leaning toward minivans made by Asian automakers.
"My father-in-law works for the UAW, so we like to buy domestic vehicles whenever possible," Perna said. "But . . . what can you do? I don't want to waste my money."
With some consumers thinking and feeling this way about Detroit's minivans, it may not be surprising that some local automakers are posting year-to-date declines in minivan sales.
In GM's case, the reason for the decline is obvious. GM's new and improved SUV-like minivans -- the Chevrolet Uplander, Buick Terraza, Pontiac Montana and Saturn Relay -- aren't slated to hit the market until the fourth quarter of the year, so the company's existing lineup is old and on the way out, with the help of incentives topping $3,500, according to the consumer automotive Web site Edmunds.com. GM's current minivan lineup includes the Chevrolet Astro, Chevrolet Venture, GMC Safari, Pontiac Montana and Oldsmobile Silhouette. But Ford's new Freestar and Mercury Monterey have been on the market since last fall, and DaimlerChrysler's new Town & Country and Dodge Caravan were released in March.
The old Chrysler Corp. founded the minivan segment in 1984 and still holds a 34-percent share of the minivan market, according to the Power Information Network, an affiliate of J.D. Power & Associates of Westlake Village, Calif.
Meanwhile, sales of minivans by the other automakers are up a combined 44.5 percent in the January-May period compared with the same time a year ago. The boost is being driven by the Toyota Sienna, which is over a year old and up 119.6 percent, and the Kia Sedona, which is up 28 percent.
The completely redesigned Nissan Quest is up 705.8 percent, but the company was phasing out its old minivans last year and only started production of its new model in May 2003.
A notable exception to the gains by Asian automakers is the Honda Odyssey, with sales down 5.5 percent. A freshened version is due out in the fall.
In a newsletter on the auto industry, Art Spinella of CNW Marketing Research Inc. in Bandon, Ore., questioned why "Detroit minivans are suffering," despite new models from the Detroit brands. "Detroit minivans are given secondary, not primary, consideration among key minivan intenders."
Full Article Here
Nissan Quest:
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Montana/Venture:
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Dodge Caravan:
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New models don't help automakers beat Asian brands
June 22, 2004
BY SARAH A. WEBSTER AND JEFF BENNETT
FREE PRESS BUSINESS WRITERS
There's been a big boost in minivan sales this year, as the stigma associated with the loved-and-hated "Mommy-mobile" seems to be fading. But Detroit's automakers, even with four new minivans, aren't cashing in -- at least not yet.
Minivan sales are up 7.2 percent this year through May, compared with the same period a year ago -- double the increase of the overall new car and truck market. But minivan sales are down 12.6 percent for General Motors Corp., 6.7 percent for Ford Motor Co. and 5.8 percent for DaimlerChrysler AG. And with new minivans from Ford, Mercury, Dodge and Chrysler, some analysts are wondering why.
Richard Perna, 30, of Kentwood has test driven a Nissan Quest, which he and his wife liked. But they were disappointed with the fit, finish and handling of Ford Motor Co.'s new Freestar. He said he won't even consider Chrysler's new minivans -- despite the new Stow 'n Go seats in the second and third rows that fold into the floor and offer more storage. That's because his friends have had so many problems with the company's vehicles in the past, he said. The couple plan to test-drive the Toyota Sienna as soon as their local dealership has one available, as well as GM's new minivans when they come out later this year. But Perna said he's already leaning away from GM's newly dubbed crossover sports vans because they won't have the {Ed. - specific} side curtain air bags that he wants for protection.
Perna has already decided against an SUV -- a staple for Detroit's automakers -- because he views them as inefficient and potentially dangerous, and he doesn't like their truck-like handling. So even though his family has its roots in the Detroit auto industry, he's leaning toward minivans made by Asian automakers.
"My father-in-law works for the UAW, so we like to buy domestic vehicles whenever possible," Perna said. "But . . . what can you do? I don't want to waste my money."
With some consumers thinking and feeling this way about Detroit's minivans, it may not be surprising that some local automakers are posting year-to-date declines in minivan sales.
In GM's case, the reason for the decline is obvious. GM's new and improved SUV-like minivans -- the Chevrolet Uplander, Buick Terraza, Pontiac Montana and Saturn Relay -- aren't slated to hit the market until the fourth quarter of the year, so the company's existing lineup is old and on the way out, with the help of incentives topping $3,500, according to the consumer automotive Web site Edmunds.com. GM's current minivan lineup includes the Chevrolet Astro, Chevrolet Venture, GMC Safari, Pontiac Montana and Oldsmobile Silhouette. But Ford's new Freestar and Mercury Monterey have been on the market since last fall, and DaimlerChrysler's new Town & Country and Dodge Caravan were released in March.
The old Chrysler Corp. founded the minivan segment in 1984 and still holds a 34-percent share of the minivan market, according to the Power Information Network, an affiliate of J.D. Power & Associates of Westlake Village, Calif.
Meanwhile, sales of minivans by the other automakers are up a combined 44.5 percent in the January-May period compared with the same time a year ago. The boost is being driven by the Toyota Sienna, which is over a year old and up 119.6 percent, and the Kia Sedona, which is up 28 percent.
The completely redesigned Nissan Quest is up 705.8 percent, but the company was phasing out its old minivans last year and only started production of its new model in May 2003.
A notable exception to the gains by Asian automakers is the Honda Odyssey, with sales down 5.5 percent. A freshened version is due out in the fall.
In a newsletter on the auto industry, Art Spinella of CNW Marketing Research Inc. in Bandon, Ore., questioned why "Detroit minivans are suffering," despite new models from the Detroit brands. "Detroit minivans are given secondary, not primary, consideration among key minivan intenders."
Full Article Here
Nissan Quest:
Montana/Venture:
Dodge Caravan:
