Who's winning and losing in car sales?

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Key Takeaways

Don’t have much time? Here’s the summary of what we’re talking about:

• Nissan Sentra and Versa sales skyrocket, surprising many.

• Other smaller cars like the Mitsubishi Mirage and Volkswagen Jetta are increasing sales.

• The rise in EV SUV sales reflects changing consumer preferences.

• Fisker is selling off inventory at low prices due to bankruptcy.

• China plans to use other countries as a production base for E.V. parts for the U.S. market, circumventing trade barriers.

• Here's why it's crucial to know if the F.J. Cruiser includes a locking differential.

• The Audi Q7's reliability can sometimes be a dilemma, so we will help you clarify the best years.

KERN’S CORNER

Who's winning and losing in car sales?

This year, the automotive industry keeps surprising us, and Q2 is no different. Not only that, but it might also be a sign of changing times. 

When I saw the data, I was taken aback. Only after reading two or three more times was I finally convinced. 

Nissan Sentra sales grew 55% year-to-year; if Nissan keeps this pace, sales will total 180,000. The Versa, the cheapest new car you can buy in the U.S. market right now, is up 61% in sales in this quarter, 45% year to year. 

The Nissan Sentra is currently one of the best-selling cars in the U.S. When did this happen? 

Just years ago, Nissan had earned a reputation for unreliability and severe mechanical problems. Its problematic CVT transmission was prone to fail, and, to make matters worse, practically all of its cheaper models used it. 

In fact, the 2022 Nissan Sentra has a reliability rating of 26 out of 100 in Consumer Reports. The following year, sales were so low that neither Consumer Reports nor J.D. Power rated the car. 

So, why such a massive leap? 

On one hand, there's no denying that Nissan has worked to improve its products, but on the other, it's a sign of how car owners are changing. These sales results have led many people to conclude that America is downsizing its fleet. 

When we dove into data, we came to a similar conclusion, but there are some caveats. 

Who won and who lost in the sales department?

The second quarter brings some surprises and some expected results. For example, there's no mystery behind the increase in EV SUV sales, as basically, every manufacturer is pushing their E.V. models to the consumer. We'll discuss this later, in depth, because even within this sector, there are some surprises. 

However, that's not what caught my attention the most. Some cars are climbing up the ranks we might have ruled out before, and that's where we'll begin. 

Out of the way, big cars. It's Tiny's time to shine

Here is a list of some of the best-selling cars in the second quarter of 2024:

Really, Mitsubishi? Good for them!

These aren't the only top performers in the market, but they show some of the most significant growth. 

This is big news, especially at a time when the new car market is hitting a slump. 

While the car sales market isn't near a recession, several aspects have impacted sales.

As we mentioned in our previous newsletter, the CDK hacking has devastated dealerships. It couldn't have come at a more critical time. This hacking is still unsolved, and the consequences could last for years. 

CDK Global is also facing serious legal ramifications. Once the dust settles, we'll dive deep into what happened. 

High interest and high prices have also made any possible buyer reluctant. 

Not long ago, the American consumer loved SUVs, and the small car hadn't dominated U.S. sales since the 1980s. Perhaps we're entering a new era, just like we did with minivans and then SUVs. 

Other surprises and not-so-surprising results

So, are small cars the only winners? No, and there's a clear winner: the electric SUV. The U.S. is pushing for electrification, so we shouldn't be surprised. Granted, it's facing considerable resistance and lends itself to good jokes.  

(This one made us laugh)

However, it's no surprise that the electric SUV, one of America's favorite styles, is seeing increased sales. 

What's interesting here is the rise in sales of American-made SUVs. The Mustang Mach-E, with a 47% growth, and the Cadillac Lyriq, with a serious 441% leap. 

Of course, these numbers are massive because the Lyriq is new to the market, but it's not a small feat. 

Other winners include the Chevy Colorado and GMC Canyon. Both came out of the factory punching their way to top medium-truck sales, increasing their performance by 26% from last year. 

Then, there's one final surprise: Mazda.

The CX-50 has taken over the compact crossover segment with solid performance figures. The base model gives you 187 hp, but the turbocharged model punches out 256 hp and 320 lb-ft of torque.

All this is positive, and there's always a negative. So, what about the losers? We still have to talk about them. 

The losers are a bit of a headscratcher

In Q2 2024, one loser stood out above all others: G.M. and its gas-powered SUVs. Last year, models such as the Enclave, Blazer, and Traverse performed well, but they have all lost momentum. 

This is another clear sign that the market is changing, and it's not just the consumer. Ford's CEO has insisted that we overcome our love for these monster vehicles.

It’s true, here it is.

This is ironic because the Ford F-150 is one of the best-selling cars in the U.S. 

Then, there's Stellantis. 

At FWT, we've made Stellantis our whipping boy because it is. The company's overall sales are down by 17%. It's almost palliative care, so one must ask whether Stellantis can bounce back in the U.S.

One big challenge Stellantis faces is that if the consumer migrates to smaller cars, its offering is limited. Although the company has brands like Fiat, these have never caused a blip in the American consumer scale. 

This Q2, Fiat sold 316 units, and the situation at Stellantis is so bad, that's one of the good news. 

IN THE KNOW

Fisker is dumping old inventory

This was once a Tesla-killer

Once, not long ago, the Fisker Karma enamored audiences. It marked many firsts.

It was the first luxury plug-in hybrid to reach the general consumer population. It also looked amazing, but that first iteration failed to take off and declared bankruptcy only seven years after it was founded. 

Nevertheless, Henrik Fisker insisted that this idea would work and relaunched the company in 2016.

Now, eight years later, the company is declaring bankruptcy, and to stave off whatever it can manage, it's selling all of its inventory for a meager price. If everything goes according to plan, you might be a passenger in a Fisker in this hectic city. 

How China plans to use Morocco as a gateway to the U.S.

Here’s how to bend the rules in your favor.

The battle for E.V. dominance in the U.S. has one common opponent: China. The U.S. Government has passed subsidies to boost domestic E.V. production.

This has worked, as we saw the Lyriq and Mach-E grow in sales. It also doubled as a strategy to slow down China's dominance of the E.V. market. 

But the Asian giant is not to be left behind. China has announced the creation of factories that specifically make E.V. parts designed for the U.S. market. They're taking advantage of a loophole that many hadn't considered. 

BEST AND WORST

What are the best and worst years for the Audi Q7?

The Audi Q7 is one of those SUVs that looks great, performs well (especially the S-line), and offers every creature comfort you need. But then it breaks down, and all the romance fades away. 

This SUV can be a money pit or one of the most reliable you can drive. It's a lottery, and we decided to reduce the uncertainty by providing you with the best and worst years for the Audi Q7 in our article.

TIPS AND KNOW-HOW

Does the F.J. Cruiser have a locking differential?

The F.J. Cruiser is one of my favorite SUVs, although it's increasingly harder to find. From the start, its retro looks caught the attention of passers-by, but it also impressed drivers with its off-road performance. 

In a push to increase performance in challenging terrains, many have wondered if the F.J. Cruiser has a locking differential. This tool can be essential in avoiding getting stuck, and we have the answer for you.

NEWSBITES

Every week, we scour the web for the most essential news. Here’s what you need to know this week:

• Tesla is now available as a Chinese government vehicle.

• The most popular E.V.s in Europe are Chinese and German.

• You don't want to buy these SUVs if you don't want to spend money (fixing them)