Jane Liu Quotations

New models are being introduced at higher price points, but the competitiveness of the market is dramatically pushing down net prices.

While the domestics are still spending far more proportionally, the numbers are not as far off as they had been. Our January sales forecast predicted that domestic automakers earned approximately 54 percent market share of new vehicle sales, and that Japanese, European and Korean automakers would earn 35 percent, 6 percent and 5 percent, respectively.

Although we have yet to see a flood of consumers trading in their large SUVs or trucks for smaller, more fuel-efficient cars, our analysis of 16 different vehicle segments clearly displays a relative weakening of demand for larger, less fuel-efficient vehicles.

Consumers are driving hard bargains on SUVs, forcing manufacturers to offer a record amount of incentives on vehicles and pushing down net price even further through assertive shopping.