Mag Says California Auto Sales a Model For The Future?

Washington DC August 21, 2006; The AIADA newsletter reported that an article in today's Automotive News suggests that recent auto sales trends in the nation's Golden State are key indicators of the future role of International brand vehicles in the U.S. auto industry.

Citing data from R.L. Polk, the paper says, "The Detroit 3 may be nearing the point of no return in California."

Over the first six months of this year, Detroit automaker's accounted for just 31.4 percent of the state's retail registrations – a decline of 3.7 percent over the same period last year.

A key indicator, the paper says: "Toyota's brands now generate more retail sales in California than the North American brands of GM and Ford combined."

Over the same six month period, Toyota brands accounted for 26.7 percent of retail registrations in the state, up 2.6 percent from last year. Honda was also up; meanwhile, GM, Ford and Chrysler were all down.

Prominent dealers are paying attention to the trend: large domestic dealers are picking up International points and dealer groups are aligning product to consumer interests. "The onslaught of product (from the imports) is overwhelming," said Earl Hesterberg, president of Group 1 Automotive. "The volume is going to the small cars (while) the baby boomers are buying BMW, Mercedes and Lexus."

Of Group 1's 12 stores in California, only one is domestic.