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Michigan ponders its automotive future in the connected age

Few people take cars more seriously than Michiganders. I've been to the home of BMW in Germany. I've been to Kia's HQ in Korea. I've seen Honda's goods in Japan. No one, from the factory worker to the executive in her pinstriped suit, is more obsessed with cars than Michigan Inc. That's why it was interesting this week to see the state have a moment of introspection four hours north of the Motor City on a scenic island called Mackinac. Ironically, cars are not allowed here. Normally a tourist trap, it played placed host to the Mackinac Public Policy conference this week. While politics took center stage ( I may be the only person here not considering a run for governor) the evolution of the industry through connectivity and data was a theme of the conference. If you're reading this in New York, Silicon Valley, or one of the automotive heartlands listed above, you do care about this. If Michigan rethinks its approach to the car business – and makes moves to become more competitive – that affects you the consumer and enthusiast. It's jobs. It's technology, and it's a competition to see who's going to be the leader. More than a century after Henry Ford made mass production a thing, more than 70 years after Detroit's Arsenal of Democracy helped win World War II, and nearly a decade after the historic bankruptcies of General Motors and Chrysler, the car business is on solid footing again and looking to the future. What's next? Michigan is still home to thousands of auto workers, tech centers (including gleaming facilities built by Toyota and Hyundai), and the headquarters of the three American carmakers. Just because the economy is good doesn't mean it's a given connected cars and mobility advancements are going to come from this state. A lot of it's not. Tesla, Uber, Lyft, Faraday Future, and other transportation mediums have spouted up other places. Michigan leaders and Detroit's carmakers understand this reality. Reflecting on the past means admitting the future is not a given, a key undertone this week in Mackinac. It's about using existing resources, like skilled labor, to move forward. "We do have the number of technicians and technical expertise here in this state," says Stephen Polk," conference chair and former CEO of auto data firm R.L. Polk & Co. To that end, Ford is placing increased emphasis on a division called Smart Mobility, which is an in-house unit focusing on autonomy, connectivity, and forward-looking ideas.

Here's how Detroit is selling more luxury vehicles than Germany and Japan

Now there's an attention-grabbing headline, eh? Although the answer to the riddle - pickup trucks and SUVs - might be somehow deflating, the numbers involved deserve a going over. According to TrueCar's figures (click on the table to enlarge), six of the year's ten best-selling vehicles in the US that sell for a transaction price above $50,000 are body-on-frame, and the Mercedes-Benz E-Class is the only foreigner to crack the top five. Every enthusiast knows that pickup trucks are 'Murica's most popular vehicle by a colossal margin, and there have been plenty of reports about the popularity of luxuriously appointed trucks and SUVs, but compare these figures from TrueCar: 70 percent of Chevrolet Tahoe sales have a transaction price above $50K, and The Bowtie is expected to make $3.9 billion in revenue on 66,945 predicted high-dollar sales; 95.1 percent of E-Class sales break $50K, so the German company will make $4.0 billion on 67,006 predicted sales in that pricing sphere. It's about the only time you'll see the Tahoe ranked right next to Mercedes' bread-and-butter sedan. Ram is ahead of those two with $4.2B coming from $50K-plus sales. The Ford F-Series does almost as much revenue as the next three combined, with an expected $10.8 billion coming from sales of trucks over $50K - more than a quarter of the model's total sales, when a base F-150 can be had for about $26,000. Yes, the Germans make a lot more money on fewer sales, but considering the comparison, the bottom line isn't too troubled by such facts. Weighing like-for-like, the full-size Ford walks it in every category; elsewhere, the Chevrolet Silverado outsells the Ram, but the Ram outsells the Chevy by 6.7 percent above $50K. And for all the flak GMC takes over swapping out grilles, the Sierra also outsells the Chevy in the well-appointed segment, 16.1 percent of sales versus 11 percent – the Professional Grade brand is a huge profit center for The General. You'll find more info in the TrueCar press release below. TrueCar finds pickup trucks far outsell premium brands among top 10 vehicles over $50,000 Ford F-Series pickup sales over $50,000 surpass combined BMW 3, 5, 7 Series luxury car sales SANTA MONICA, Calif. (December 10, 2014) - TrueCar, Inc., the negotiation-free car buying and selling platform, finds mainstream pickup trucks and sport-utility vehicles dominate U.S.

China's auto sales continue to drop

The days of unending growth of carmakers in China look to be over, and some analysts are even forecasting a net drop in volume this year, The Detroit News reports. After falling numbers in June and July, the China Association of Automobile Manufacturers tallied total sales, including trucks and buses, in August to 1.7 million, down 3 percent from 2014. There were some tiny specs of good news in China, but there's no turnaround in sight. Total vehicle sales from January to August are actually still up but only 2.6 percent. Like the rest of the world, SUVs are booming with numbers up 45.6 percent from the previous year. Honda managed a very impressive 50.7 percent gain on the strength of the CR-V and Vezel (the HR-V here), according to The Detroit News. Also, the country's domestic automakers, which generally offer less expensive products, posted a 2.5 percent growth in sales. The news continues to look bad for Detroit's automakers, though. Volume from General Motors dropped 4.8 percent in August, and Ford fell 3 percent in August. Both of them have invested significant amounts there in the past years. The vehicle industry in China grew last year, but there was burgeoning evidence of weakness. At the end of 2014, dealers there pushed back against huge inventories pushed by automakers. Even before the big drops began in June, GM saw the writing on the wall and started cutting prices. BMW responded to the slump by cutting back production to deal with the changing demand. News Source: The Detroit NewsImage Credit: Mark Schiefelbein / AP Photo BMW Ford GM Honda Car Buying