Automotive News - March 11, 2024 - 44

44 * March 11, 2024
KIA
continued from Page 8
percent from December 2022.
Compared with the $2,064 average
incentive spend across the industry
last year, Kia's average was well below
at $1,172, according to Motor Intelligence
data.
Committed to EVs
The Telluride crossover put Kia on
the map for well-packaged design,
performance and technology when
it launched in 2019.
Demand for that model continues
to grow. Last December, Kia turned
up production of the Telluride at its
plant in West Point, Ga.,
than 120,000 vehicles per year.
Wager
said Telluride
shoppers
have always inquired about a hybrid
version. Kia offers hybrids in its
Sportage and Sorento, but for the
large crossover segment, the automaker
opted to go all-electric with
the EV9.
Wager said the move demonstrates
Kia's commitment to the electrified
" The brand has grown
up, matured and in car
buyers' minds, is now
on par with more
premium brands. "
Russell Wager, vice president of
marketing, Kia America
space. The electric three-row model
is a bold move for any brand, but especially
for a brand known in the
past for inexpensive products.
" It's not a $30,000 car, it's not a twoseat
sedan. This is a real car, " he said.
" And while everyone else is talking
about slowing down, pausing,
changing, we're not. "
Super Bowl success
Kia invested millions to advertise
the EV9 in a 60-second spot during
what became the most-watched Super
Bowl of all time last month. According
to Nielsen, Super Bowl LVIII
racked up 123.7 million viewers.
" The reason to do the Super Bowl
spot was not just to gain awareness of
EV9. Most people thinking about an
electric vehicle start with Tesla, " Wager
said. " We want to be the next [option]
on their list. "
Wager said the high-profile placement
enticed shoppers to research
Kia's other vehicles.
The week after the big game, Wager
said Kia had the largest increase in
shopping traffic of all auto brands
across online marketplace Edmunds
NISSAN
continued from Page 8
Going forward, Nissan said it will improve
compliance, supervision and training to make
sure contracts are honored.
" To properly carry out transactions with suppliers
going forward, Nissan will strengthen its
compliance system by reinforcing the periodical
inspections system on compliance of the
Subcontract Act, providing thorough and periodic
training to executives and employees involved
in subcontracting transactions, and taking
other measures to prevent recurrence, " Nissan
said.
Japanese media had earlier reported that
Nissan's shortfall was the biggest in such contract
payments since 1956, when Japan's subcontractor
law was implemented.
Under that law, it became illegal to unilaterto
more
as well as Cox Automotive's Kelley
Blue Book and Autotrader.
" It did exactly what we were looking
for it to do - get more interest in
the overall Kia brand and our other
models in addition to EV9, " Wager
said.
Priciest vehicle
Wager said in addition to
cross-shopping with Tesla, the EV9 is
going head-to-head with Rivian and
Mercedes-Benz, which also offer
family-size EVs, but at much higher
price points.
Now Kia's priciest vehicle, the EV9
commands close to $80,000 with
shipping for the top-end GT Line
trim with the second-row captain's
chair package. It has a dual-motor
setup and carries a 99.8 kilowatt-hour
battery for 379 hp and 270
miles of range.
The most affordable configuration
is the entry Light trim with rearwheel
drive and a smaller 76.1 kWh
battery that delivers 230 miles of
range. It costs $56,395 with shipping.
" The income level for this area is
over $200,000. If somebody is comparing
between a Telluride and EV9,
there's definitely a difference in the
lease and financing price, " Wager
said. But he added, " There are customers
out there that are looking for
this that have the means. "
Shrinking pool of buyers
Ed Kim, president and chief analyst
at AutoPacific, said the EV9 fills
an untapped space in the market for
millennials, which are the most likely
generation to want an EV and are
in the family raising years, he said.
" But the growth in the EV market is
not going to come at the high end of
the market, " he said.
" EV9 is an important product because
if you're raising a family, you
might really need a three-row vehicle,
and there have been very few
three-row choices in the marketplace. "
But
from a market standpoint, this
demographic is a finite population.
" The market is oversaturated with
high-end EVs that are all targeting
the same buyer, " Kim said.
" Even mainstream brands are selling
EVs at luxury price points. EV9
easily gets near $80,000, which is an
expensive car by any measure. "
" A lot of automakers are boasting
about how they're appealing to a far
richer consumer, which might be
fine short term, but the next real
growth area is the mainstream middle-class
buyer, " Kim said.
" There's just not a whole lot out
there for that consumer. "
ARIYA
continued from Page 8
redemption after the EV pioneer lost its
early lead to Tesla and others. But the
Ariya has had muted success since going
on sale in 2022, with just 13,450 delivered
last year. There are reportedly about
4,500 2023 models idling on lots - inventory
that could linger into the summer.
Wheeler
said Nissan has adjusted
the 2023 model pricing with incentives
to " pretty much " match the 2024 model.
The new supply won't ramp up until
April, she said.
ally withhold payment to subcontractors after
amounts are agreed to, unless there are justifiable
grounds such as defective work or breach
of contract.
The commission noted in its public recommendation
issuance that similar violations
have occurred elsewhere in the auto industry
in recent years, without giving details.
An uneasy relationship
Nissan, known among suppliers for its often
assertive approach to negotiations, has been
especially focused on cost control in recent
years since the arrest and ouster of former
Chairman Carlos Ghosn threw the automaker
into a tailspin.
But Nissan's tradition of belt-tightening
stretches back as far as 1999, when Ghosn first
landed at Nissan, then on the brink of bankruptcy,
and began blowing up its bloated supThe
Ariya suffered a nearly yearlong
launch delay, followed by supply
shortages. A change in the federal EV
tax incentive program to favor North
American-made vehicles hurt the imported
model's competitiveness.
As it grappled with tight Ariya supply
early in 2023, Nissan held off on cutting
prices. Meanwhile, the popular
all-wheel-drive variant didn't launch
in the U.S. until the spring.
Nissan worked to improve the Ariya's
affordability in other ways. It passed
along to customers the $7,500 U.S.
commercial clean vehicle tax credit
through leasing.
ply chain.
Subcontractors affected by the underpayments
included tire and wheel makers, Japanese
media said. They were afraid to complain
for fear of losing Nissan's business, the reports
said.
One supplier was shortchanged $6.7 million,
according to the Jiji Press.
Over the past decade, Nissan has consistently
ranked near the bottom of the U.S. industry in
its business relations with suppliers, according
to the Supplier Working Relations Index published
annually by Plante Moran.
Nissan's score has increased annually since
2020, and in 2023, it overtook Ford for the first
time since 2014. But it still trailed Toyota, Honda
and General Motors and ranked in the
" poor-very poor " category.
Naoto Okamura contributed to this report.
But that hasn't sufficiently moved
the sales needle. Edmunds data shows
Nissan dealers took an average of 129
days to sell their Ariya inventory in
February, nearly double the 66 days it
took Hyundai dealers to move the Ioniq
5 crossover. Industrywide, retailers
took 71 days to sell an EV last month.
Slade said cutting the Ariya's sticker
price instead of lowering the effective
price with incentives will maximize customer
attention and move the product.
" When there are limited shoppers,
and they are shopping vehicles at the
high end of the funnel, they look at
MSRP, not at the final price, " he said.
Inventory - U.S. car and light-truck, on March 1
Table reflects U.S. inventory for those manufacturers that report monthly
Days' Days'
supply supply
Inventory Mar. 1 Feb. 1
units 2024 2024
Mustang .......................... 16,800 102 101
16,800 102 101
23,500
28,500
11,300
22,800
25,100
13,700
49,000
Bronco Sport ...................
E-series van .....................
Edge ................................
Escape .............................
Expedition .......................
Explorer ...........................
F series ............................ 139,900
19,800
Maverick ..........................
Mustang Mach-E .............
Transit .............................
Transit Connect (I) ...........
72
67
80
43
47
41
62
67
37
69
65
79
75
97
77
65
69
62
87
38
20,100 172 413
36,900
5,200
Ford trk. (D) ............... 390,600 62
Ford trk. (I) ................
5,200
5,200
65
Total Ford trk. ............. 395,800 62
Ford (D) ..................... 407,400 63
Ford (I) ......................
65
Total Ford ................... 412,600 63
Aviator .............................
Corsair/MKC ....................
Nautilus/MKX ..................
Navigator .........................
Total Lincoln trk. ..........
Ford Motor Co. car ........
11,900
4,400
33,000
5,200
65
93
76
93
76
76
93
77
8,700 113 106
8,000 101 109
88 147
92 123
97 122
Ford Motor Co. trk. (D) ... 423,600 63
Ford Motor Co. trk. (I) ....
65
Ford Motor Co. trk. ........ 428,800 63
FORD MOTOR CO. ......... 445,600 64
6,000
1,800
7,800
Integra .............................
TLX ..................................
Total Acura car ............
MDX ................................
RDX .................................
Total Acura trk. ............
Total Acura .................
Accord .............................
Civic (D) .........................
Civic (I) ...........................
Total Civic ........................
Honda car (D) .............
Honda car (I) ..............
Total Honda car ...........
CR-V ................................
HR-V ...............................
Odyssey ..........................
Passport .........................
Pilot .................................
Ridgeline .........................
10,700
9,200
19,900
27,700
25,100
33,900
58,100
900
59,000
39,200
26,800
10,300
5,700
18,900
6,700
72
53
67
73
72
72
71
44
42
51
4
43
31
55
46
54
49
42
Total Honda trk. ........... 107,600 41
16,800 102 101
78
93
78
79
94
62
84
76
72
74
77
47
33,000 57 48
900
4 66
49
48
66
48
32
46
44
55
43
47
39
Total Ford car ..............
Bronco ............................
Days' Days'
supply supply
Inventory Mar. 1 Feb. 1
units 2024 2024
Honda (D)................... 165,700 44
Honda (I)....................
900
65,900
900
4,000
Am. Honda car .............
66,800
10,500
14,500
26,700
72,700
99,400
4
Total Honda ................ 166,600 41
Am. Honda car (D) ........
Am. Honda car (I) .........
52
4
45
Am. Honda trk. ............ 127,500 44
AMERICAN HONDA ........ 194,300 44
Genesis car (I) ............
Genesis trk. (I) ............
Total Genesis (I)†* ........
Hyundai car (D/I)..........
Hyundai trk. (D/I) .........
Total Hyundai (D/I)†.......
88
76
79
49
39
41
Total Hyundai Motors (D/I)† 113,900 44
Kia car (I) ..................
Kia trk. (D/I) ...............
Total Kia America (D/I)* ..
Hyundai-Kia car (D/I) .....
15,000
60,000
75,000
45,700
Mazda car (D/I) ............
Mazda trk. (I)...............
MAZDA N.A.† ...............
Subaru car (D).............
Subaru car (I)..............
Subaru car (D/I)............
Subaru trk. (D) ............
Subaru trk. (I) .............
Subaru trk. (D/I) ...........
SUBARU OF AMERICA† ...
Lexus car (I) ...............
Lexus trk. (D/I) ............
Total Lexus (D/I) ...........
Toyota car (D/I) ............
55,000
62,700
3,100
8,500
28,200
35,100
63,300
71,800
14,400
32,900
47,300
55,600
2,300
300
21
37
32
35
Hyundai-Kia trk. (D/I) ..... 143,200 39
HYUNDAI-KIA ............... 188,900 38
7,700
55
47
48
5,400 107
20
41
34
41
38
38
78
40
47
26
Toyota trk. (D/I) ........... 127,000 30
Total Toyota (D/I) .......... 182,600 29
TOYOTA MOTOR N.A.† .... 229,900 31
60 series (I) .....................
90 series (I) .....................
Total Volvo car (I) .........
C40 (I) .............................
XC40 (I) ...........................
XC60 (I) ...........................
XC90 (I) ...........................
Total Volvo trk. (I) .........
VOLVO CAR USA†* ........
2,600
3,400
3,900
6,900
14,600
17,200
†Dealer stock and in-transits
Note: Numbers may not add due to rounding; (D) = produced in North America; (I) = imported to U.S.
Days' supply: Number of days needed to sell all vehicles in inventory, based on the previous month's daily selling rate
Inventory: Unit count of vehicles on hand at dealerships, factory lots, ports of entry and in transit on a specific date
54
52
53
400 105
52
38
70
54
54
*Estimate
Source: Automotive News Research & Data Center
42
66
42
51
66
51
42
45
52
84
73
52
41
44
46
23
38
33
35
41
40
62
47
49
75
18
35
29
40
34
34
86
48
54
27
32
30
34
61
41
58
88
59
52
69
61
60
Inventory
back up to
2.8 million
after a slip
Larry P. Vellequette
lvellequette@crain.com
New-vehicle inventory in the U.S. rebounded
in February, reversing a decline
the previous month and returning
to the upward trend it's been on
much of the last two years, according
to Cox Automotive.
Cox said vehicle inventory stood at
2.8 million in its latest estimate, a 78day
supply, up from 2.6 million the
previous month, which Cox put at a
75-day supply. A year earlier, new-vehicle
inventory had stood at 1.8 million
vehicles, Cox said.
As has been the case for much of the
past two years, days' supply was tightest
among vehicles below $40,000, Cox
said, though even vehicles in those
lower-priced brackets had more than a
two-month supply. Vehicles in the
$60,000 to $80,000 range had more
than 100 days' supply, Cox noted.
A stronger selling rate meant all but
one of the seven automakers reporting
monthly sales and inventory saw their
days' supply figures shrink from the
previous month, the Automotive News
Research & Data Center said.
Subaru was the only automaker to
report an increased days' supply from
the previous month, but it was tied
with Hyundai-Kia for the second-lowest
days' supply, behind Toyota. Ford
was the only automaker with more
than two months of supply. The Research
& Data Center said the seven
automakers collectively had a 38 days'
supply of cars and a 46 days' supply of
light trucks in inventory, both down
slightly from the previous month.
HANS GREIMEL
Nissan, known among automotive suppliers for its often
assertive negotiations, has made cost-cutting
measures a priority since the arrest and ouster of
former Chairman Carlos Ghosn.

Automotive News - March 11, 2024

Table of Contents for the Digital Edition of Automotive News - March 11, 2024