Fuel For Thought

Last decade electric powertrains looked poised to make a comeback. But the internal combustion engine (ICE) has made improvements of its own. Smaller engines with direct injection and turbochargers under the hood have given the ICE engine new life. Approximately 85% of vehicles produced by 2030 in the US will feature an ICE including some electric vehicles.

Average age of light vehicles set a new record in 2019 at 11.8 years. Better technology and overall quality improvements are key drivers of rising average vehicle age. Light vehicles in operation have also reached a record level with more than 278 million vehicles on the road. Both trends are very good for the automotive aftermarket.

US light vehicle sales volumes from June 2019.

The importance of China transcends its position as the largest global market. The regulatory structure promoting increased electrification as well as a number of startup OEMs in the BEV space underscore the longer-term Sino ambitions. Key global OEMs need to have China's propulsion considerations as a central hub of future propulsion strategies – thus impacting economies of scale for the globe. Suppliers must have China's impact on volume, technology and scale as a key focus for future strategy.

Sports cars have been in decline for more than a decade in the United States. Yet automakers demonstrate and refine performance technology through sports cars.

Automotive suppliers are grappling with short and long term issues such as trade disruptions, rising commodity costs, increased competition, finding new talent, and longer-term structural factors like electrified propulsion, driver assist systems and connectivity.

Aurora – the self-driving technology company – partners with FCA for commercial vehicles. Hyundia and Kia plan to include have a goal of launching Aurora autonomous capabilities on passenger vehicles in 2021.

8% of all pickups sold in the US in 2026 will have a full hybrid powertrains.

The vehicle buyer journey is a rapidly changing landscape as technology, consumer expectations and lifestyle factors evolve including the interaction and relationship with the brand and the dealership. There are key factors that contribute to a customer's loyalty or defection when they consider purchasing a vehicle – and critical loyalty drivers can vary by brand. As consumers demand an enhanced overall retail experience, customer convenience will likely emerge as a leading retention factor. Join Kristen Balasia and Melanie Erff as they discuss new vehicle buying trends.

May automotive sales in the US jumped back to a 17.3/17.4 million SAAR rate. IHS Markit anticipates full year sales volume of 16.8 million units in 2019, down from last year.