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

IPad Air Giveaway 2014 is Online
IPad Air Giveaway 2014 is Online
Our sister site I4U News is giving away a brand new iPad Air or if you can wait an iPad Air 2. This is an $499 value.
 
 
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...
 
 
 

Latest from the Network

Hamilton admits hardly sleeping the night before
Abu Dhabi, Nov 24 (IANS/CMC) Newly crowned Formula 1 World champion Lewis Hamilton has revealed he hardly slept the night before the season-ending Abu Dhabi Grand Prix which he eventually won to clinch his second...
Read more on Sport Balla
 
Real Madrid to play in Australian tournament
Melbourne, Nov 24 (IANS) Real Madrid, which boasts the most expensive squad in world football, have been announced as one of three teams to compete in the International Champions Cup in Melbourne in July. The...
Read more on Sport Balla
 
Cruzeiro win Brazil Serie A title
Belo Horizonte (Brazil), Nov 24 (IANS) Cruzeiro have clinched their second consecutive Brazilian Serie A title with a 2-1 victory over Goias. Everton Ribeiro struck the winner at the Mineirao stadium Sunday after...
Read more on Sport Balla
 
Honours shared in Milan derby
Rome, Nov 24 (IANS) Inter Milan have played out a 1-1 draw against crosstown rivals AC Milan in a sellout Serie A game. Jeremy Menez gave AC Milan a lead at halftime but Joel Obi equalised for Inter shortly after the...
Read more on Sport Balla
 
IOC chief condemns Afghan bombing
Lausanne, Nov 24 (IANS) International Olympic Committee President Thomas Bach condemned the suicide bombing at a volleyball tournament in Afghanistan. The lone bomber detonated explosives Sunday during a local...
Read more on Sport Balla
 
Marseille tops French league
Paris, Nov 24 (IANS) Marseille have climbed to the top of the French league after rallying to beat Bordeaux 3-1. With the victory, they now enjoy a one-point lead over Paris Saint-Germain. Bordeaux striker Thomas...
Read more on Sport Balla
 
New crew aboard Russian spaceship reach ISS
Washington, Nov 24 (IANS) Three new crew members from the US, Russia and Italy arrived Monday at the International Space Station (ISS) on board a Russian spaceship. Terry Virts of NASA, Soyuz Commander Anton...
Read more on Business Balla
 
Sears plans for big Black Friday 2014
Sears is looking foward to cashing in big time for the upcoming Black Friday 2014 shopping holiday on Novermber 28th. Members of Sears have seen their Black Friday specials start one week early and the company has...
Read more on Black Friday Countdown
 
Apple gears up for Black Friday
Black Friday is fast approaching and one company that plans on seeing a sales increase is Apple. Apple has announced that they will have discounted prices for the upcoming buying holiday and one product they plan on...
Read more on Black Friday Countdown
 
Thousands protest in Chile in favour of new constitution
Santiago, Nov 24 (IANS/EFE) Several thousand people took to the streets of Santiago and other Chilean cities to demand a Constitutional Assembly as a means to provide the country with a new constitution, as was...
Read more on Politics Balla