Abstract This paper offers a new framework for analyzing the aggregate sales of new light vehicles that incorporates cars and light duty trucks. Because this approach requires only a minimal set of assumptions about demographic trends, the state of the economy, consumer preferences, new vehicle prices and repair costs, and vehicle retirements, household income, it is shown to be especially useful as a forecasting tool as well get more insight on the buying behavior of consumers as well as understand why sales of light duty truck is more than that of the cars. This is NADA data that shows the total new light vehicle sales rose by certain percent in 2013. This is a statistical abstract of the United States that has been designed to serve as a guide to understand the motor vehicle sales from 2004 to 2013. Executive Summary This report summarizes the statistical modeling and analysis results associated with the light vehicles sales in United State of America for over ten years. The purpose of this report is to document the data collection and all the corresponding data modeling and inference technique used during the subsequent statistical analyses. The data used was drawn from NADA and the paper gives a concise overview of sales in the cars and light duty trucks. The reports indicate that the total new light vehicle sales rose by seven and a half percent in twenty – thirteen. This paper also develops a forecast if the sales for cars and light duty trucks
New-Car Dealers account for an estimated 30% of all units sold in a given
This paper will dicuss the rising prices on fuel over the past few years. It will involve the trucking industry and explain how the rising of gas prices has effected trucking company. Crude Oil prices have passing over one hundred dollars a barrel. This has effected many independent owners-operators. This article will dicuss why some independent owners have decided that it is no longer profitable to drive a truck. Some owners have taking a different approach with the rise of crude oil. The article will discuss how some owners have reduced horsepower in the engines of their trucks in order to increase profit and have also choice to run day routes in smaller trucks.
The U.S. electric passenger car industry in 2011 was described as being in its infancy, because it is still a new concept to buyers. However there are signs of growth from 2011-2015. Buyers do not consider the car because of price, travel range and vehicle size, along with other secondary concerns.
The fourth part of this report will investigate the claim that “smaller cars provide better values than larger cars,” given the provided data. The claim does not make clear what measurement for determining “values” is to be used, but we will proceed with the assumption that Consumer Report’s Value Score is an accurate representation of real-world value. Because we determined that the Size category and the two related ‘dummy’ variables did not have a significant relationship with the Value Score (which caused their subsequent deletion from the equation), and also because Size is largely represented by Cost/Mile—the choice was made to analyze the coefficient for Cost/Mile to help come to a conclusion. We are going to use the following estimated regression equation (which we constructed in Part III) for our analysis:
The automobile industry is a capital intensive industry, the players in the industry need high capital expenditure in order to maintain their market position, but the expected returns in the future is quite high. The industry analysis can be carried out under the following heads:
This paper is an analysis of Road King Trucks’ new project which is introducing a new product into its product line. I will decide whether run the project or not. Six issues will be discussed as follows 1) importance of energy cost; 2) project’s cash flows; 3) cost of capital; 4) choose an engine 5) evaluation 6) accept or reject.
For the better part of nearly 2 decades leading up to 2007 the automotive market was dominated by light trucks and suv’s. US auto makers were able to make very high profit margins off of these vehicles due to their price point while they could hardly break even on compact cars so the industry put very high focus on making them, causing them to become cheaper and sales to skyrocket. The general public ate it right up with low asking prices, loads of room, and perceived safety. Sales were at an all time high for entering the new millennium, surpassing minivan sales by 1994. It seemed like nothing could stop SUV’s from selling like hot cakes, that was until 2008.
The situational analysis is done to analyze the different environmental forces that can affect the sales and acceptability of the new product. In the later sections, the marketing objectives, the target segment for the new car, action programs, and marketing mix (product, price, promotion, and place) have been discussed in a view to set a roadmap for the company on how it can better market and sell its product to the most potential segment of the consumers. The marketing budget has been presented to give an estimate of the expenditures and expected revenues for the year. Finally, the ethical considerations for the marketing plan have been discussed which are also
Used car market was a huge market with attractive growth opportunities during 1980s. It was estimated worth $ 375 billion market. Competition was so deeply fragmented that no single dealership could claim more than a few percentage points share of the used car market in any locale. New car dealerships were the largest sellers of used cars. 65 % of late model, used vehicles were sold by 21,800 new car dealers through out United States. However most of these new car dealers considered used cars a secondary business. The remaining 35 % was a mix of independent used car dealers and private sales. Between 1985 and 2001, the year over year change in used units sold averaged less than two percent up or down.
In fact, the average fuel efficiency of new passenger vehicles steadily declined from the 1980’s until 2004. This was due to the loopholes which car manufacturers found in the CAFE standards. CAFE treated “light trucks” much more leniently than cars, and allowed them to have considerably less fuel efficiency than cars. This caught the attention of car manufacturers, who then looked at how CAFE defined a light truck. They
Several factors have affected how the American auto industry now positions itself on the world market, and big changes have been made to reflect this new direction. The introduction of new technologies in vehicles, the growing market for cars in new developing markets, the impact of the industry on the environment, legislative responses and demands, as well as the increased expectations from consumers, are some of the factors. More international cars are being designed, manufactured and bought by American consumers and exported to foreign markets today than those exclusively manufactured by American companies, redefining the American auto industry, while having a positive impact on its economy. International brands accounted for 45% of total sales in the U.S. in 2013 and have now risen to 59% of the market, and continue to grow. While the amount of American cars has decreased in the local U.S. market share to international ones, the increase of foreign car production on U.S. soil has had the effect of creating new jobs for Americans both in the auto industry as well as in related new industries. The industry has seen huge growth numbers in the last few years with more growth expected.
The automobile industry has brought the United States economic growth due to the impact that automobiles have made on society. There has been a plethora of jobs associated with the auto industry, including manufacturing, auto repairs, insurance, and the development of roads, sales, and auto parts to enhance vehicles. Cars, trucks, and SUVs’ have become a way of life for people and have made an additional economic impact by becoming the primary means of transportation for consumers to commute to and from work, vacations, and travel between destinations. Most family households live on a budget and they must make the decision of how much of their budget they can allocate to transportation costs.
The demand for cars is subject to strong fluctuations. During the year, sales tend to increase in spring and droop in winter. Most importantly,
Most are sold through franchised dealerships, although up to 5% of deliveries go to institutional buyers (mostly rental companies)
This is a real life problem and as you research the vehicle you may discover that success is not a certainty. Apply marketing theory for grades!