Aston Martin recorded a pre-tax loss of £78.8 million in the first half of this year, due to lower-than-expected sales in Europe and expansion costs – but company boss Andy Palmer insists the firm’s ambitious growth plan remains on track. The publication of Aston Martin Lagonda’s latest results came a week after the firm issued a profit warning in which it cut its wholesale forecasts. That caused shares in the company to dive: they are currently worth less than £6 per share, compared to £19 when the firm first floated in October 2018. Aston’s retails sales in the first half of 2019 were up 26% year-on-year, with growth in the USA and China off-setting a steep decline in the UK and Europe. Wholesale volumes – cars being distributed to dealers – were up 6% year-on-year. Aston boss Palmer admitted that “this has been a difficult period and we’ve clearly seen the market reaction”. But he noted that the firm’s sales were up year-on-year, and added: “I’m confident we are taking the right actions and that we can successfully deliver our strategy.” While sales were up, driven largely by demand for the Vantage and DBS Superleggera, Aston’s revenues dipped in part because it sold fewer high-price Special models, reducing the average selling price of its cars. The firm anticipates sales of its Specials will increase later this year, particularly with the ultra-limited run DB4 GT Zagato Continuation due in the fourth quarter. In its profit warning last week, Aston Martin revised planned wholesale volumes for the full year. From 7100 to 7300 units originally forecast when it published its annual results in February, the target has now dropped to 6300 to 6500 units. Palmer said that reduction was a result of the firm being “responsible and disciplined in the approach to our balance sheet”, and was designed to ensure that supply of the firm’s cars did not exceed demand, which could force dealers to offer discounts. He added: “Retails are up, wholesales are up, market share is up – we’re just not as up in wholesale as we’d like. In order to protect the market position of the brand we thought it right and proper to cut the wholesale (numbers) to ensure that we don’t simply make the mistakes of history and have to discount cars to get them away.” Aston’s profits were hit by a one-off £19 million provision for a ‘doubtful debt’ charge, relating to the planned sale of some intellectual property rights in the previous year. The firm has also invested heavily in its ambitious Second Century growth plan, and particularly in developing the DBX SUV, which is due to be launched in December and go on sale early next year. Palmer said that Aston remained “focused completely” on the execution of the plan, and insisted that the wholesale volume revisions and falling share price wouldn’t impact that. “We recognise there are headwinds and continuing uncertainties, and you’d correctly expect us to keep our financing arrangements under review to ensure we have appropriate resources around us,” said Palmer. He noted the first has greater cash reserves than it did this time last year, and would be prepared to secure additional funding “from sources with which we’re familiar” if needed. He added: “Our basic intention is the execution of the (Second Century) plan. We have some short-term headwinds and one would hope we move through this short-term correction and then carry on with what we’re doing. “You always take opportunities to be leaner and fitter, and that we will do. We’ve seen through the development of DBX so far that the efficiency of the development is much greater than it was with DB11, (with) far fewer design changes, far fewer needs to correct things not modelled correctly. “That efficiency and things we learn through development are then cascased into (development of the) Vanquish replacement and eventually the Lagondas. We’ll take the opportunity of those learnings, but the plan remains
Origin: Aston Martin posts £78.8m loss in first half of 2019
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10 curious storylines to watch from 2019’s first half of Canadian auto sales
This weeks hot Unhaggle deal includes the Ford F-150, GMC Sierra and Ram 1500.Handout / Ford / GMC / Ram Canadian auto sales are down. In fact, Canadian auto sales have been in decline since the early spring of last year, failing to match the prior-year totals in 16 consecutive months.The story is becoming all too familiar; the headlines too easy to write. Automobile manufacturers cant seem to quit the passenger car business fast enough and cant open new SUV assembly plants with any more haste. Premium marques, via products such as the Mercedes-Benz A-Class and Lexus UX, are diving downmarket in the hopes of sustaining the last decades conspicuous march into the mainstream. Last years top sellers are this years top sellers. And then theres the unpredictable Tesla, with meaningful volume and a future always in question.Those are the main themes. But in a market thats lost more than 5 percent of its volume through the first half of the year, weve sorted through the numbers to find 10 stories that fill in the blanks. In search of a measure of nuance, these 10 tales are the details well want to look back on in six months time to see how 2019 really turned out.Top Trucks TumbleIn the highly competitive full-size pickup truck arena, the fact that the Ford F-150 hasnt been fully redesigned since the 2015 model year should, theoretically, bode well for freshly redesigned rivals. The Ram 1500, GMC Sierra, and Chevrolet Silverado were all new for the 2019 model year. Yet in a gradually shrinking pickup truck market, Fords full-size pickup truck sales are up 4 percent this year, while the second, third, and fourth-ranked trucks from Ram, GMC, and Chevrolet are sliding. And theyre sliding quite noticeably. The F-Series top challengers are collectively down by more than 7,000 sales so far this year.The Detroit RiverOnce known as The Big Three and now more clearly as The Detroit Three (irrespective of brand origin), General Motors, Ford Motor Company, and Fiat Chrysler Automobiles produced only 41 percent of all auto sales in Canada during 2019s first six months. Thats down from 43 percent at this stage of 2018, its worse than the market share produced by the trio during the last major recession of a decade ago, and its a far cry from the 53 percent share attributed to the Detroit Three as recently as 2007.Car QuintetThe fact that cars traditional passenger cars the likes of which more than half of all buyers opted for a decade ago are struggling is not news. Barely more than one-quarter of all automobile purchases ends up as a car acquisition. But what amplifies the degree to which cars are now so wholly rejected is the decline of Canadas most popular cars. Through the first half of 2019, Canadas five best-selling cars (Honda Civic, Toyota Corolla, Hyundai Elantra, Mazda3, Volkswagen Golf) are all selling less often than they did a year ago. In fact, the quintet has combined to lose nearly 10,000 sales compared with a year ago.Homegrown SUVsBoth of Canadas two best-selling cars are built right here in Canada. The same can be said in the SUV/crossover sector. The difference, however, is the level of success encountered by Canadian-made SUVs; not just the number one Toyota RAV4 and number two Honda CR-V but by other Canadian-assembled utility vehicles, as well. The RAV4, CR-V, and Ford Edge all rank inside the top 10. Together with the Chevrolet Equinox, Lexus RX, Ford Flex, Lincoln Nautilus, and Lincoln MKT, Canadian-made SUVs account for nearly one-fifth of the SUV market.Monotonous Minivan MinimizingShoppers that in times past were automatically destined to drive away from a new car dealer in a minivan are, just like passenger car buyers, increasingly destined to buy a new three-row crossover. This isnt a new phenomenon, but the rate at which Canadas five-strong minivan lineup is collapsing is now solidly in nosedive mode. Minivan volume plunged 19 percent in calendar year 2018; minivans are down 18 percent this year. That takes these monobox people carriers down to just 3.5 percent of the market. Aside from an uptick in sales of the Kia Sedona (which accounts for less than one-tenth of the segment), each nameplate in the segment is in decline. The Chrysler Pacifica, Dodge Grand Caravan, and Honda Odyssey are all down by double-digit percentage losses compared with 2018.Vorsprung Durch OffspringIn Audis showrooms, the student has become the teacher. Audis A4 lineup goes back generations, all the way to the mid-90s B5 generation of which nearly 1.7 million were built. In 2007, the A4 made possible an Audi coupe/convertible range called the A5. As time wore on, it became clear that the two-door market was evolving. Thus, the launch of the second-generation A5 spawned a direct A4 rival called the A5 Sportback, a liftback four-door A5 that, as it turns out, helps to make the A5 far more popular than ever. In fact, the car that Audi spun off from the A4 to incrementally add premium passenger car sales is now
Origin: 10 curious storylines to watch from 2019’s first half of Canadian auto sales
Canada’s 5 best-selling auto brands in the first half of 2019
Canadian auto sales volume remained high by historical standards in the first half of 2019. Yet compared to more recent results, the industry decline that began in March 2018 continued unabated in each of 2019s first six months.Year-over-year, auto sales volume tumbled by nearly 60,000 units in the first half of the year, according to Desrosiers Automotive Reports. That 5-per-cent drop produced a four-year low in combined first and second quarter sales.There are two ways to view the markets 2019 decline. First, passenger cars are, for the most part, the culprit. While SUV/crossover popularity expands, the car sectors loss of market share is staggering; down 3 percentage points to 27 per cent in the span of just the last year, and down by nearly half over the last decade.The second perspective requires, incidentally, a look at the automakers presumed to be least affected by a car decline: Detroits homegrown brands. Combined, the traditional three domestic manufacturers combined for a 9-per-cent drop in first-half sales, a decrease valued at nearly 47,000 sales. The cause? In part, its the pickup trucks that power the Detroit marques. Full-size pickups arent matching the otherworldly pace generated back when the industry exited the last great recession with a boom.Nevertheless, a truck-heavy brand remains Canadas most popular auto brand in 2019, and Japanese brands that dominate whats left of the passenger car market position themselves high in the rankings, as well.These are Canadas 5 best-selling auto brands in the first half of 2019.5. Nissan: 65,959, down 7 per centWith Hyundai hot on Nissans heels thanks to the huge success of the Kona subcompact crossover, its Nissans Kona competitor the Qashqai thats allowing Nissan to maintain its position in the upper echelon. Qashqai volume is up 10 percent in 2019 with 10,294 sales year-to-date, its Nissans No. 2 seller while sales of 14 other Nissan nameplates are in decline. That includes every member of Nissans car lineup, which is collectively down by a third, year-over-year.4. Chevrolet: 74,868, down 18 per centAs the Cruze and Sonic disappear, one would hope that Chevrolets lacklustre car effort would be offset by traditionally strong pickup truck sales and rising utility vehicle volume. Yet compared with the first-half of 2018, Chevrolets pickups even with a new Silverado on the market are down 9 per cent. (Combined, the new Silverado and its corporate GMC Sierra twin have lost more than 5,000 sales already this year.) Meanwhile, Chevrolets SUV/crossover performance has been a let-down this year. The Equinox, Suburban, Traverse, and Trax are all in decline.3. Honda: 87,298, down 4 per centHonda is by no means late to the SUV party, nor does the brand enter the crossover gun fight with a dull knife. The CR-V is hugely popular in fact, its consistently one of Canadas two top-selling utility vehicles. But CR-V sales are slowing of late as a new RAV4 exerts control. Plus the once subcompact-segment-dominating HR-V is now distinctly less popular than rivals from Hyundai and Nissan.Then theres Hondas insistence on a distinctly premium price point for the Passport, which will keep the newest Hondas volume low. These shortcomings become more noticeable when the Civic, Canadas most popular car in 21 consecutive years and Hondas top seller, suffers a 9-per-cent decrease during a period in which the brands utility vehicles cant make up the difference.2. Toyota: 108,047, up 3 per centRare among auto brands in 2019, Toyota volume is on the rise. In fact, Toyotas current pace could result in record calendar year performance for the brand. It helps that Toyotas car sales arent falling, but rather are slightly-better-than-flat so far this year. And it also helps that, while numerous Toyota utilities and both Toyota pickup lines report decreased volume in 2019, an all-new RAV4 is absolutely tearing up the sales charts.After a record sales year in 2018 (which succeeded record years in each of the previous six years) RAV4 volume is up a staggering 20 per cent so far this year. With 31,933 sales already in 2019, its Toyotas top-seller; accounting for three out of every 10 Toyotas sold in Canada.1. Ford: 155,570, down 3 per centLet there be no doubt: with 74,905 sales so far this year, Fords F-Series truck lineup is of paramount importance to the Blue Oval. Virtually half of the buyers who walk into a Ford showroom drive away in an F-150 or Super Duty truck. But the F-Series, on its own, isnt going to instantly cancel out a shrinking car lineup thats down by more than a fifth this year. Nor is the F-Series able to overcome a transitioning SUV/crossover lineup that reported nearly 4,000 fewer sales in the first half of 2019 than in the same period one year
Origin: Canada’s 5 best-selling auto brands in the first half of 2019
Canada’s 5 best-selling vehicles in the first half of 2019
2018 Honda Civic Si SedanHandout / Hyundai Pickups arent selling at the scarcely believable rate of recent years, but 2019s list of best-selling vehicles continues to be dominated by full-size trucks.Through the first half of 2019, pickup trucks are by no means the only category of vehicle failing to match last years pace. After five consecutive years of record auto sales in Canada, 2018 volume dipped, with a total 10 consecutive months of decline.In 2019, the year began the same way, and after six consecutive months of decreased volume, much of the blame lies at the feet or the tires of passenger cars.Rewind to 2009 and passenger cars accounted for slightly more than half of all new vehicle sales in Canada. The sectors market share has collapsed to barely more than a quarter. In fact, compared with the first half of 2018, passenger car market share is down by three percentage points. The traditionally dominant category now produces roughly one in every four new vehicle sales.Canadas most popular passenger car still holds a firm grip on the No.1 position in the category. A safe bet puts the top car, which is Canadas No.3 vehicle overall, on top of the sales charts for a 22nd consecutive year.Streaks are common among the top sellers. Canadas top-selling line of vehicles will almost certainly end 2019 as the No. 1 vehicle for an 11th consecutive year. Canadas top-selling utility vehicle, meanwhile, appears ever more destined to top that category for a fourth consecutive year.The list of Canadas five best-selling vehicles through the first half of 2019 says a lot about the entire market. For one thing, the quintet accounts for so much of the Canadian markets new vehicle demand 22 percent of it. But it also reflects the popularity of Canadian-made products, a distinct appetite for change, and an obvious predilection for that which is most well-known.With figures from the manufacturers, these are Canadas five most popular vehicles.5. Honda CR-V: 27,581, down 2 percentNot since 2009 has Honda Canada reported anything but CR-V sales improvement. But after a sharp June slowdown in which CR-V volume tumbled 19 percent, CR-V sales are actually down, albeit only slightly, through the first half of 2019.With the fifth-generation CR-V in its third model year and its main rival hot off the press, Honda is under pressure to maintain market share with its No. 2 seller. Its evidently not an easy task, particularly with availability a persistent challenge.4. Toyota RAV4: 31,933, up 20 percentGiven the fact the now-departed fourth-generation Toyota RAV4 probably wasnt Toyotas best effort, that it was rather outdated by the date of departure, and that it still sold progressively more often year after year after year, should we be surprised that a new RAV4 fares even better?Thoroughly revamped and wholeheartedly restyled, the Canadian-built Toyota RAV4 is pulling away from the (also Canadian-built) Honda CR-V in the race to end 2019 as Canadas top-selling utility vehicle. Its a title the RAV4 stole from the Ford Escape in 2016.3. Honda Civic: 32,398, down 9 percentOn track for an eight-year Canadian sales low, the Honda Civics control over the car market nevertheless remains as strong as ever. The Canadian-built Civics 32,398 sales in 2019s first half translates to a staggering 12 percent of all car sales in Canada, on par with a year ago, as the Civics rate of decline matches the overall passenger car sectors slide.The Civics first-half output is greater than what all but a couple of cars will manage by years end. It outsells its nearest rival, the Toyota Corolla, by a 32-percent margin.2. Ram P/U: 46,715, down 4 percentIts not an ideal scenario, the decreased volume produced by Fiat Chryslers top-selling product. Thats particularly true when you consider the newness of the fifth-generation Ram. Moreover, 2019s first-half decline follows a 2018 in which Ram truck sales tumbled 14 percent.Fortunately for FCA, the current pace still puts the Ram on track for an easy No. 2 finish and, quite likely, the lineups sixth-best year on record. It could be much worse. A decade ago, only 31,000 Rams were sold in Canada.1. Ford F-Series: 74,905, up 4 percentThough still some ways off Ford Canadas record 2017 pace, the Ford F-Series ever-present ability for drumming up vast quantities of sales across the country, across a vast price spectrum, and across demographics is a sight to behold.A full eight percent of all vehicles sold in Canada are F-Series pickups. Nearly half of the vehicles sold at Canadas top-selling brand are F-Series pickups, too. Full-size pickup truck demand has slowed somewhat, which serves to shine an even brighter light on 2019s rising F-Series
Origin: Canada’s 5 best-selling vehicles in the first half of 2019
Plug-in hybrid sales drop by half in June
Demand for plug-in hybrid cars fell by half in June, the biggest fall yet seen in this sector of the market, according to figures from The Society of Motor Manufacturers and Traders. Plug-in hybrid sales decreased by 50.4% in June, and year-to-date, fell by 29.6%. The SMMT blamed the trend on the Government’s removal of the grant for these vehicles, which was announced in October last year. Supply issues for plug-in hybrids, related to the introduction of WLTP emissions testing last year, is another factor in their decline. While plug-in hybrid sales fell in June, electric vehicle registrations rose by 61.7%, closely in line with demand year-to-date. In the first six months of 2019, EV demand has increased by 60.3%. The overall new car market declined for the fourth consecutive month in June, falling by 4.9% with 223,421 units sold. Year-to-date, UK car registrations dropped by 3.4% to 1.27m units, as “ongoing confusion over low emission zones and diesel, the removal of key ultra low emission vehicle incentives and an overall decline in buyer confidence affected the market,” said the SMMT. However, it added that the figures were in line with expectations. The downward trend for diesel continued in June with a fall of 20.5%. Year-to-date, diesel sales have decreased by 19.4%. Conversely, petrol sales grew by 3% in June and 3.5% year-to-date. Mike Hawes, SMMT chief executive, said, “Another month of decline is worrying but the fact that sales of alternatively fuelled cars are going into reverse is a grave concern. Manufacturers have invested billions to bring these vehicles to market but their efforts are now being undermined by confusing policies and the premature removal of purchase incentives. “If we are to see widespread uptake of these vehicles, which are an essential part of a smooth transition to zero emission transport, we need world-class, long-term incentives and substantial investment in infrastructure. Fleet renewal remains the quickest way to address environmental concerns today and consumers should have the confidence – and support – to choose the new car that best meets their driving needs, whatever the technology, secure in the knowledge that it is safer and cleaner than ever before.” The supermini segment remains the biggest selling segment in the UK, making up 31% of registrations in the first six months. The Ford Fiesta remains Britain’s top-selling car followed by the Vauxhall Corsa and Mini
Origin: Plug-in hybrid sales drop by half in June
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