William Maley

While car sales are down, the number of people opting for loan lengths from 73 to 84 months is going up. Karl Kruppa, senior automotive solutions consultant for Experian said at a conference last week that the share of 73 to 84 months car loans has been rising over the past eight years. Through February of this year, 33.8 percent of loans were for terms longer than 73 months. Other numbers to take into consideration, In the fourth quarter of 2010, three-fourths of new-car loans were between 73 to 75 months. Only 17.1 percent of loans were 84 months. Fast forward to the fourth quarter of 2016 and 28.7 percent of new car loans reached 84 months. Why the sudden increase? It might be due to buyers seeing the small payments on an expensive vehicle, without taking into consideration fully about the length of the loan. More worrying however is the growing popularity of long-term loans on used vehicles. Most of these loans are being used on late-model vehicles - about 30 percent of 2016 model year vehicles are being financed with 73 to 84-month terms. But long-term loans are being used on vehicles that are five years or older. "You know what's kind of startling? There's actually 10 percent of [2010 model-year] used vehicles being financed at a term between 73 and 84 months. Longer terms are here, and more and more lenders are willing to do that," said Kruppa. Source: Automotive News (Subscription Required) View full article

The echo of a sad trombone could be heard when Honda announced that the new Civic Si would only produce 205 horsepower from a turbocharged 1.5L four-cylinder. Fans were hoping for a bit more power and Honda's engineers say there is more power on tap. But there are two key reasons as to why the Japanese automaker did this. The engineers said "you can tune more power into it, but all of that takes away from the durability of the engine," said Rob Keough, senior product planner on the Civic to Automotive News. "Honda likes to build their engines to last hundreds of thousands of miles, so they're working toward that target." The other reason comes down to price. Honda wanted to keep the Si affordable while adding some impressive performance parts such as a limited-slip differential and adaptive suspension. "The Si has always been in the [price] range that it's in. We wanted it to be attainable and affordable, so our target for Si was really to come in at this price point with this performance level," said Keough. For example, if Honda was to use a detuned version of the turbo 2.0L found in the Civic Type R, that would push the price to nearly $30,000. Keough didn't rule out the possibility of there being a variant between the Si and Type R that would offer a bit more power. He also didn't rule out using a detuned Type R motor for this model. "There's maybe other configurations and things that they can do with this motor," said Keough. We have a possible name for this possible model, Civic SiR. Source: Automotive News (Subscription Required) View full article

The diesel emission scandal has once again flared up as Audi stands accused of using illegal software on certain A7 and A8 TDI models. Yesterday, German Transport Minister Alexander Dobrindt announced that Audi employed illegal software to cheat emission tests on certain A7 and A8 models built between 2009 to 2013. The affected models are said to emit twice the legal limit of nitrogen oxides when the steering wheel is turned more than 15 degrees - a condition that would happen in the real world and not in the lab. German tabloid Bild reported that Volkswagen Group CEO Matthias Mueller was summoned to the transport ministry. A ministry spokesman confirmed Muller's visit to Reuters. The ministry has requested the company to issue a recall on the two models - 24,000 in total with 14,000 of those registered in Germany - and set a deadline for June 12 for a plan to retrofit the vehicles with legal software. Audi did issue the recall last night and said it has a fix coming in July. According to a source, the issue deals with the interaction between transmission and engine control units and that a fix has been submitted to Germany's transportation watchdog, the KBA. Source: Deutsche Welle, Reuters View full article

Later this summer, Hyundai will be revealing a new subcompact crossover called the Kona. To prepare us, the company has released some teasers. But thanks to some magic from Photoshop, we have a good idea of what it will look like. The front end comes with Hyundai's new grille that made its debut on the Sonata and a similar headlight arrangement like the Jeep Cherokee. There is also a little slit above the grille. Other design details on the Kona include black body cladding, significant sculpting on the doors, and a partly blacked-out rear pillar. We don't any mechanical details, but we're assuming it will be based on the redesigned Accent. Source: Hyundai Press Release is on Page 2 KONA by Hyundai: a true SUV with a progressive character The All-New KONA features a progressive appearance and latest technologies A Hyundai first is the new head-up display with class-leading luminance, supporting safe driving by projecting information directly into the driver’s line of sight The KONA is an important milestone in Hyundai Motor’s journey to become the leading Asian automotive brand in Europe by 2021 30 May 2017 - Ahead of the official unveiling, Hyundai Motor has launched a new video showing further design details of the All-New KONA, the youngest SUV in Hyundai’s European range. The KONA continues Hyundai’s new design identity, and offers a progressive character and latest technologies to create a unique proposition in the sub-compact SUV segment. The All-New KONA’s silhouette emphasises the voluminous, aggressive body styling featuring sleek and sharp shapes. Its strong and confident visual presence is characterised by its wide stance and the twin headlamp design. The KONA also features the Cascading Grille, Hyundai’s new family identity. Besides its progressive design, the All-New KONA offers the latest technology, making premium features more accessible for a convenient and safe driving experience. A new feature - and a Hyundai first - is the head-up display which projects key driving information directly into the driver’s line of sight. The eight-inch projected image with a class-leading luminance of 10,000 candela per square metre guarantees daytime visibility and supports safe driving. Further information about the All-New Hyundai KONA will be released in the near future, with the official unveiling scheduled for the summer of 2017. View full article

You might think the vehicle caught by a spy photographer is a Volkswagen Tiguan mule. But you would be incorrect. What you're looking at is the next-generation Volkswagen Touareg. While Volkswagen has been clever with applying camouflage strategic points, the longer length and taller body give away its true identity. Is it expected that the Touareg will be similar in design to the Tiguan. Car and Driver reports the next Touareg will transition to the MLB Evo platform that currently underpins the Audi Q7. Unlike the Q7, the Touareg will cut a few inches out of the wheelbase as it will only come with two rows of seating. V6 power is expected, though it is unclear whether it will be the 3.6L VR6 found in the Atlas or Audi's 3.0L supercharged V6. An eight-speed automatic and all-wheel drive will come standard. Expect a plug-in hybrid down the road. Expect to see the Touareg to debut sometime later this year in Europe, followed by the U.S. next year. Source: Car and Driver View full article

Volvo Announces May Sales ROCKLEIGH, N.J. (June 1, 2017) - Volvo Car USA, LLC, (VCUSA) reported U.S. sales of 6,202 vehicles for the month of May, a 12 percent increase versus May 2016. The top seller for the month was the XC90 with 2,363 vehicles sold, followed by the XC60 with 1,595 vehicles sold, an 18.6 percent increase versus May 2016. “The availability on XC90 is improving with each month in the US,” said Lex Kerssemakers, President and CEO, Volvo Car USA. “We also continue to see strong sales across our 60-series carlines with XC60 and S60 up double digits year to date.” United States - Retail Sales By Car Model - May 2017 Models May 2017 May 2016 % Year To Date 2017 Year To Date 2016 % S60 1,055 873 20.8 % 4,945 4,220 17.2 % S60 CC 25 42 -40.5 % 85 251 -66.1 % S80 0 51 - 5 244 -98.0 % S90 473 0 100.0 % 1,998 0 100.0 % V60 207 199 4.0 % 1,169 1,139 2.6 % V60 CC 332 144 130.6 % 1,118 691 61.8 % V90 1 0 100.0 % 1 0 100.0 % V90 CC 146 0 100.0 % 759 0 100.0 % XC60 1,595 1,345 18.6 % 7,377 6,447 14.4 % XC70 5 415 -98.8 % 65 1,751 -96.3 % All-New XC90 2,363 2,467 -4.2 % 9,280 13,323 -30.3 % Total 6,202 5,536 12.0 % 26,802 28,066 -4.5 % * I, II, III etc shows which generation the car model belongs to.

BMW Group U.S. Reports May 2017 Sales BMW brand sales decrease 11.0 percent MINI brand sales decrease 11.6 percent Woodcliff Lake, NJ – June 1, 2017… Sales of BMW brand vehicles decreased 11.0 percent in May for a total of 25,818 compared to 29,017 vehicles sold in May 2016. Year-to-date, the BMW brand is down 3.6 percent in the U.S. on sales of 120,124 vehicles compared to 124,581 sold in the first five months of 2016. Notable vehicle sales in May include the BMW 5 Series which increased 12.7 percent to 3,677 cars, the BMW X1 which increased 12.6 percent to 2,489 vehicles, and the BMW X3 which increased 21.7 percent to 4,011 vehicles. “Our all-new BMW 5 Series is now showing its strength as availability increases and production begins to match demand,” said Bernhard Kuhnt, President and CEO, BMW of North America. “At the same time, demand for BMW Sports Activity Vehicles remains solid with the X1 and the X3 delivering the standout numbers for May” BMW Group Sales In total, the BMW Group in the U.S. (BMW and MINI combined) reported May sales of 29,878 vehicles, a decrease of 11.1 percent from the 33,612 vehicles sold in the same month a year ago. Year-to-date, BMW Group sales are down 4.8 percent on sales of 137,916 vehicles in the first five months of 2017 compared to 144,811 in the same period in 2016. MINI Brand Sales For May, MINI USA reported 4,060 automobiles sold, a decrease of 11.6 percent from the 4,595 sold in the same month a year ago. Year-to-date, MINI USA reported a total of 17,792 automobiles sold, a decrease of 12.1 percent from 20,230 automobiles sold in the first five months of 2016.

MITSUBISHI MOTORS REPORTS 4.5 PERCENT SALES INCREASE Outlander leads the way with May sales up 15.2 percent Mirage Family sales up 11.6 percent over last May Calendar year-to-date sales are 46,951; up 6.9 percent Mitsubishi Motors North America, Inc. (MMNA) reported May 2017 sales of 9,429 an increase of 4.5 percent over May 2016. The brand's sales leader is once again the popular three-row CUV Outlander with sales of 3,382, an increase of 15.2 percent over last May. The spirited Mirage and Mirage G4 sales were up 11.6 percent with total sales of 2,342. The brand continues its momentum by reporting monthly sales increases. Total 2017 calendar-year sales are up 6.9 percent compared to last year at this time with 46,951 units sold. May YTD 2017 2016 2017 2016 i‐MiEV 0 2 6 16 Mirage 2342 2098 11948 11632 Lancer 896 929 6949 7406 Outlander Sport 2809 3060 12361 13372 Outlander 3382 2936 15687 11485 Total 9429 9025 46951 43911

JAGUAR LAND ROVER REPORTS US SALES FOR MAY 2017 Second Best ever Jaguar Land Rover U.S. May sales month Best May retail month since 2004 for Jaguar Jaguar F-PACE, winner of two 2017 World Car of the Year Awards, continues to be the brand’s volume leader for the month Second Best ever Land Rover U.S. May sales month Best ever May sales month for Range Rover Sport and Discovery Sport (MAHWAH, NJ) – June 1, 2017 -- Jaguar Land Rover North America, LLC today reported May 2017 U.S. sales: Jaguar sales were 3,113 units, a 44 percent increase from 2,164 units in May 2016; Land Rover sales increased slightly to 4,993 units; Jaguar Land Rover May U.S. sales for both brands hit 8,106 units, a 14 percent increase from 7,114 units in May 2016. Year to date, Jaguar Land Rover is up 22 percent in the United States. “We are very pleased to see the continued sales growth for both the Jaguar and Land Rover brands, said Joe Eberhardt, President and CEO, Jaguar Land Rover North America, LLC. “The Jaguar brand continues its sales momentum driven by the strong performances of the XE and F-PACE and the Land Rover brand with the Range Rover Sport, Discovery Sport and the arrival of the new Discovery, which is in showrooms now.” U.S. BRAND HIGHLIGHTS Land Rover For the month of May, Land Rover sales hit 4,993 units, the second best May retail month for the brand (May 2015 holds the record for best May sales month ever). The Discovery Sport had its best ever May sales month with 904 units sold and the new Discovery SUV with optional seven passenger seating just arrived in showrooms. For the month of May, the Range Rover Sport also had its best ever May sales month and was the volume leader hitting 1,813 units sold. Range Rover hit 1,272 sales, up 22 percent. The Range Rover Evoque hit 858 sales, up 6 percent. The all-new Range Rover Velar, which was introduced in the U.S. at the New York Auto Show, goes on sale later this summer. Jaguar For the month of May, Jaguar sales were 3,113 units, a 44 percent increase from 2,164 units in May 2016; making it the best May Jaguar sales month since 2004. The Jaguar F-PACE hit 1,440 units sold, making it the brand’s volume leader for the month. The Jaguar F-PACE recently won two titles at the 2017 World Car Awards – World Car of the Year and World Car Design of the Year. The XE hit 764 units sold. The Jaguar F-TYPE had its second best May sales month with 409 units sold. To mark the introduction of the new 18 MY F-TYPE range, at this year’s New York Auto Show Jaguar debuted an exclusive 400 SPORT special edition model.

Subaru Of America, Inc. Reports Record May Sales Record May - monthly sales increase 12.1 percent over May 2016 66 consecutive months of yearly month-over-month growth Best May ever for Forester, Outback and Impreza 39 consecutive months of more than 10,000 Outbacks sold 46 consecutive months of more than 10,000 Foresters sold Cherry Hill, N.J. - Subaru of America, Inc. today reported 56,135 vehicle sales for May 2017, a 12.1 percent increase over May 2016, and the best May in the history of the company. The automaker also reported year-to-date sales of 252,753 vehicles, an 8.5 percent gain over the same period in 2016. May marked the 39th consecutive month of 40,000+ vehicle sales for the company. Forester, Outback and Impreza sales were notably strong as each model achieved its best May ever. Impreza sales for May 2017 increased 44.2 percent over the same month in 2016 and marked the best month ever for the carline. “Subaru is proud to be setting another monthly, year-over-year sale increase, our 66th consecutive month of doing so,” said Thomas J. Doll, president and chief operating officer, Subaru of America, Inc. “Our record May sales are a direct result of our retailers providing customers with the best purchase and ownership experience possible.” “Demand for the all-new Impreza has been incredibly strong,” said Jeff Walters, senior vice president of sales. “We are looking forward to the all-new Crosstrek, as well as the updated WRX, Legacy and Outback models arriving at our retailers this summer to further boost consumer interest in Subaru.” Carline May-17 May-16 % Chg May-17 May-16 % Chg MTD MTD MTD YTD YTD YTD Forester 16,280 15,309 6.3% 72,517 68,226 6.3% Impreza 8,546 5,928 44.2% 35,168 24,771 42.0% WRX/STI 2,801 2,327 20.4% 13,530 12,876 5.1% Legacy 4,628 5,265 -12.1% 21,730 25,334 -14.2% Outback 15,193 12,404 22.5% 72,234 63,969 12.9% BRZ 437 383 14.1% 1,868 2,060 -9.3% Crosstrek 8,250 8,467 -2.6% 35,706 35,624 0.2% TOTAL 56,135 50,083 12.08% 252,753 232,860 8.5%

Porsche Reports May 2017 Sales U.S. Porsche Dealers sell 4,805 vehicles ATLANTA, June 1, 2017 /PRNewswire/ -- Porsche Cars North America, Inc. (PCNA), importer and distributor of Porsche 911, 718 Boxster and Cayman, Panamera, Cayenne, and Macan model lines in the United States, today announced 4,805 vehicle sales in May 2017. Year-to-date sales stand at 23,052, up 3.7 percent over last year. May sales were boosted by demand for the Macan and Panamera model lines. Macan deliveries continued to soar with 1,730 units, a 21.3 percent increase over May 2016. Year-to-date, Macan sales are up 26.9 percent and stand at 8,767 vehicles. Panamera outpaced last year's May result by 114.5 percent with 768 cars sold. Year-to-date Panamera sales are 2,483 vehicles, a 46.7 percent increase over last year. Porsche Approved Certified Pre-Owned (CPO) vehicle sales in the U.S. were 1,568. Year-to-date CPO sales stand at 7,490, an 8.8 percent increase over the same period last year. Model May Sales Year-to-Date 2017 2016 2017 2016 ALL 911 751 993 3,709 4,175 ALL BOXSTER/CAYMAN 403 508 2,043 2,675 ALL PANAMERA 768 358 2,483 1,692 ALL CAYENNE 1,153 1,293 6,050 6,776 ALL MACAN 1,730 1,426 8,767 6,907 GRAND TOTALS 4,805 4,578 23,052 22,226 *918 Spyder sales are reflected in 2016 grand total figures.

Kia Motors America Announces May Sales Forte Nameplate Sets New Monthly Sales Record for Second Straight Month IRVINE, Calif., June 1, 2017 /PRNewswire/ -- Kia Motors America (KMA) today announced May sales of 58,507 vehicles, led by the popular Forte family of compact cars with an all-time monthly high of 11,801 units, up 19-percent over May 2016. MONTH OF MAY YEAR-TO-DATE Model 2017 2016 2017 2016 Rio 1,187 2,241 5,722 10,130 Forte 11,801 9,910 47,359 43,572 Optima 10,789 10,895 48,465 51,887 Cadenza 528 468 2,153 2,553 K900 46 54 193 377 Niro 2,660 N/A 10,488 N/A Sportage 7,001 8,568 28,087 33,680 Sorento 10,413 11,914 40,505 46,960 Sedona 3,561 5,170 12,998 18,297 Soul 10,521 13,706 43,623 58,299 Total 58,507 62,926 239,593 265,755

Hyundai Motor America Reports May Sales And Best Tucson Month Of All Time Retail Sales up 10 Percent Year-Over-Year Fleet Mix Under 10 Percent in May Ioniq up 39 Percent Compared with April Genesis G80 and G90 Sales Up 25 Percent Compared with April FOUNTAIN VALLEY, Calif., June 1, 2017 /PRNewswire/ -- Hyundai Motor America today reported May sales of Hyundai and Genesis branded vehicles of 60,011 units, a decline of 15 percent compared with May 2016. Retail sales for the month were strong with the overall decline attributed to a temporary reduction in fleet deliveries compared with May of last year. SALES BY BRAND May-17 May-16 2017 YTD 2016 YTD Hyundai 58,259 71,006 283,547 306,549 Genesis 1,752 0 8,306 0 TOTAL 60,011 71,006 291,853 306,549 HYUNDAI BRAND HIGHLIGHTS "In May, we continued our positive retail sales momentum on the core products in our lineup—Sonata, Elantra, Tucson and Santa Fe—which all saw increases compared to last year," said Derrick Hatami, vice president of national sales, Hyundai Motor America. All-time Tucson monthly sales mark, eclipsing the record from just last month Tucson sales up 44 percent, totaling 10,600 sold Positive consumer demand for Ioniq which sold 1,827 vehicles, up 39 percent over April as production and supply ramps up Accent sales up 6 percent year-over-year with 5,773 sold HYUNDAI MODELS Vehicle May-17 May-16 2017 YTD 2016 YTD Accent 5,773 5,432 27,487 36,191 Azera 326 368 1,551 2,233 Elantra 16,407 22,168 86,955 73,892 Equus 1 123 17 904 Genesis 76 2,970 890 14,989 Santa Fe 9,844 14,732 47,426 39,099 Sonata 12,605 15,879 66,768 92,547 Tucson 10,600 7,369 41,707 35,471 Veloster 800 1,965 7,271 11,223 Ioniq 1,827 0 3,475 0 GENESIS BRAND HIGHLIGHTS "Genesis had a strong month in May, with sales of both G80 and G90 up 25 percent compared with last month," said Erwin Raphael, general manager of Genesis in the U.S. market. "G80 Sport is entering dealerships now. We just launched it last week to an enthusiastic media response and we expect its enhanced performance and driving dynamics to resonate with luxury car buyers. Overall, G80 continues to perform strongly in one of the most competitive segments in the entire industry." GENESIS MODELS Vehicle May-17 May-16 2017 YTD 2016 YTD G80 1,355 0 6,390 0 G90 397 0 1,916 0

Nissan Group reports May 2017 U.S. sales NASHVILLE, Tenn. – Nissan Group today announced total U.S. sales for May 2017 of 137,471 units, an increase of 3 percent over the prior year. Nissan highlights: Nissan Division finished May with 124,957 sales, up 2 percent. Overall sales of Nissan crossovers, trucks and SUVs set a May record, up 22 percent. Sales of the Rogue crossover set a May record with sales 32,533, up 19 percent. Nissan Titan sales increased 436 percent to 4,937. Nissan Armada sales climbed to 2,487, up 213 percent. Nissan’s commercial van models, NV and NV200, each set May records. NISSAN DIVISION MAY MAY Monthly CYTD CYTD CYTD 2017 2016 % chg 2017 2016 % chg Nissan Division Total 124,957 122,668 1.9 609,488 603,641 1.0 Versa 9,006 12,114 -25.7 48,403 57,778 -16.2 Sentra 18,371 20,204 -9.1 90,040 102,293 -12.0 Cube 0 1 -100.0 0 15 -100.0 Altima 23,994 28,404 -15.5 118,242 142,220 -16.9 Maxima 5,948 5,032 18.2 27,109 25,830 5.0 LEAF 1,392 979 42.2 5,742 4,697 22.2 Juke 1,278 2,271 -43.7 6,352 10,032 -36.7 370Z 447 554 -19.3 2,084 2,387 -12.7 GT-R 65 63 3.2 311 271 14.8 Total Car 60,501 69,622 -13.1 298,283 345,523 -13.7 Frontier 7,756 7,941 -2.3 29,669 36,845 -19.5 Titan 4,937 922 435.5 20,265 5,203 289.5 Xterra 0 4 -100.0 1 34 -97.1 Pathfinder 6,457 5,981 8.0 38,889 34,022 14.3 Armada 2,487 794 213.2 11,785 4,497 162.1 Rogue 32,533 27,428 18.6 161,340 119,637 34.9 Murano 6,409 5,978 7.2 29,162 33,828 -13.8 Quest 384 1,122 -65.8 4,419 7,971 -44.6 NV 1,769 1,465 20.8 7,759 7,578 2.4 NV200 1,724 1,411 22.2 7,916 8,503 -7 Total Truck 64,456 53,046 21.5 311,205 258,118 20.6 INFINITI MAY MAY Monthly CYTD CYTD CYTD 2017 2016 % chg 2017 2016 % chg Infiniti Total 12,514 10,828 15.6 66,872 53,920 24.0 Infiniti Q40 0 2 -100.0 0 54 -100.0 Infiniti Q50 3,370 2,367 42.4 16,379 17,905 -8.5 Infiniti Q60 972 103 843.7 5,087 606 739.4 Infiniti Q70 459 515 -10.9 2,864 2,625 9.1 Infiniti QX30 927 0 0.0 8,667 0 0.0 Infiniti QX50 1,230 1,632 -24.6 6,745 6,935 -2.7 Infiniti QX60 3,449 4,274 -19.3 14,921 16,592 -10.1 Infiniti QX70 683 511 33.7 4,094 2,684 52.5 Infiniti QX80 1,424 1,424 0.0 8,115 6,519 24.5 Total Car 4,801 2,987 60.7 24,330 21,190 14.8 Total Truck 7,713 7,841 -1.6 42,542 32,730 30.0 NISSAN GROUP MAY MAY Monthly CYTD CYTD CYTD 2017 2016 % chg 2017 2016 % chg TOTAL VEHICLE 137,471 133,496 3.0 676,360 657,561 2.9 Total Car 65,302 72,609 -10.1 322,613 366,713 -12.0 Total Truck 72,169 60,887 18.5 353,747 290,848 21.6 Selling days 25 24 126 126 # # #