Fresh Models Should Spell Market Share Gains for Ford, Honda

Jun 10 2014, 11:20am CDT | by

A strong pipeline of new vehicles will boost the U.S. market share of Ford Motor Co. and Honda Motor Co. by a half-point apiece by 2017, according to the latest annual “Car Wars” report from Bank of America Merrill Lynch.

Ford and Honda every year will renew models that account for more than one-quarter of their sales volume, enabling them to capture market shares of 16.2% and 10.3%, respectively, B of A auto analyst John Murphy told the Automotive Press Assn. in Detroit on Monday.

Those gains will come at the expense of Nissan Motor Co. and European carmakers, which will each surrender 0.3 points of share (to 7.8% and 8.3%), Murphy predicts.

The rest of the industry will tread water, experiencing only temporary gains and losses tied to fluctuations in new-model introductions, the report forecasts. General Motors Co. and Toyota Motor Corp. will hold steady at 17.9% and 14.4% of the U.S. market, respectively.

Murphy said Fiat-Chrysler’s goal of a four-point jump in market share by 2018 is “pie in the sky, to put it politely.” He expects the alliance to maintain its current 11.5% share.

Market share was far more volatile over the past 10 years, with swings as dramatic as GM’s 10.1-point loss and Hyundai-Kia’s 4.3% gain since 2003. Murphy said the new stability will result from a steady flow of well-designed new models from automakers across the board.

Carmakers plan 192 vehicle launches for model years 2015-2018—an average of 48 models annually compared with an average of 38 models per year over the past two decades, according to the report. Some of the growth comes from expansion into new vehicle segments, such as hybrid, electric and crossover vehicles.

The other major factor is Detroit’s comeback, Murphy said. Domestic carmakers have finally caught up with Japanese rivals and are now revamping their models every four to five years, nearly twice as often as they did historically.

Murphy predicts that American auto sales will reach a record 18 million vehicles by 2018, surpassing the peak of 17.8 million units in 2000. Carmakers sold 15.4 million vehicles last year.

 
 

Don't miss ...

 

<a href="/latest_stories/all/all/30" rel="author">Forbes</a>
Forbes is among the most trusted resources for the world's business and investment leaders, providing them the uncompromising commentary, concise analysis, relevant tools and real-time reporting they need to succeed at work, profit from investing and have fun with the rewards of winning.

 

blog comments powered by Disqus

Latest stories

Your Parent Or Kid Moved In: Are You Covered?
A record 57 million Americans now live in multigenerational family households — double the number in 1980, according to a new Pew Research Center study. And I bet many of them have the wrong homeowner’s or renters...
 
 
Pandora Looks to Challenge Terrestrial Radio's Dominance in Cars
Pandora Media is one of the largest Internet radio providers in the U.S. with more than 75 million active users. While the company’s active user count has increased at a robust pace historically, it is likely to slow...
 
 
Are General Manager Salaries About To Skyrocket? Will There Be A Front Office Salary Cap?
Are General Manager Salaries About To Skyrocket? Will There Be A Front Office Salary Cap?
It’s January 2026. New York Yankees owner Hal Steinbrenner gets out of his driverless car and triumphantly marches before the gathered press to introduce his prized new free agent. It’s a record-breaking contract—over...
 
 
Volkswagen AG New Coverage: Trefis Price Estimate at $51
Volkswagen AG is the second largest automaker in the world behind Toyota and slightly ahead of GM, selling 9.72 million vehicles globally in 2013. Established in 1937, Volkswagen AG, along with its 340 subsidiary...
 
 
 

Latest from the Network

Only 3,200 tigers left in the wild
Geneva, July 30 (IANS/EFE) Of the 100,000 tigers that once roamed in the wild a century ago, only 3,200 are left behind, the World Wide Fund (WWF) for Nature has revealed in a report. WWF has also offered to assist...
Read more on Politics Balla
 
US sees 'steady' progress in Iran n-talks
Washington, July 30 (IANS) The chief US negotiator in Iran nuclear talks Tuesday cited "significant and steady" progress over the past six months, but would not say whether the negotiations would be further extended...
Read more on Politics Balla
 
Bradley Cooper learning to flip burgers
London, July 30 (IANS) Actor Bradley Cooper, who will be seen as a chef in his next film, tried to learn how to flip burgers at a fast food chain in preparation for the role. The "Hangover" star decided to practice...
Read more on Celebrity Balla
 
US announces new sanctions on Russia over Ukraine
Washington, July 30 (IANS) Washington has imposed new sanctions on Russia's energy, arms and financial sectors over the Ukraine crisis, US President Barack Obama said Tuesday. Building on measures unveiled two weeks...
Read more on Politics Balla
 
Jamie Foxx to play Mike Tyson in biopic
Los Angeles, July 30 (IANS) Actor Jamie Foxx will reportedly be transformed into Mike Tyson for a new biopic. Foxx, 46, would be transformed by the CGI technology that changed Brad Pitt from an old man to a baby in "...
Read more on Celebrity Balla
 
'Israeli overnight strikes kill 13 in Gaza'
Gaza, July 30 (IANS) Israeli strikes carried out overnight Tuesday killed 13 more Palestinians following the artillery shelling on Jabalia town in northern Gaza Strip, medics said. The Palestinians, including a...
Read more on Politics Balla
 
Obama writes to Putin over missile treaty violation
Washington, July 30 (IANS) US President Barack Obama has written to his Russian counterpart Vladimir Putin over Moscow's breach of a 1987 missile treaty, the White House said Tuesday. The treaty bans ground-launched...
Read more on Politics Balla
 
Katy Perry parties with Diplo
Katy Perry partied with Diplo in Las Vegas on Monday night (07.28.14). The 'Dark Horse' hitmaker, who reportedly rekindled her romance with the DJ, real name Thomas Pentz, last month, was spotted enjoying a cosy dinner...
Read more on Celebrity Balla
 
Adrienne Bailon regrets appearing on 'KUWTK'
Adrienne Bailon claims dating Rob Kardashian hurt her career. The 30-year-old singer, who split from the reality TV star in 2009 after two years of dating and later underwent laser treatment to get a tattoo of his name...
Read more on Celebrity Balla
 
Chloe Grace Moretz doesn't want a boyfriend
Chloë Grace Moretz thinks she's too young to have a serious boyfriend. The 'Equalizer' star admits she usually takes her mother, Teri, or brother Trevor to red carpet events, as she doesn't want to ''waste away'' her...
Read more on Celebrity Balla