According to the annual Car Wars report, the largest US automaker is expected to renew 88 percent of its model lines by 2020.
The Bank of America Merrill Lynch’s annual Car Wars study is predicting General Motors will have significant market share improvements across the US market thanks to its 88 percent refresh of the lineup by the turn of the decade. If the forecast pans out, it will not only be higher than the predicted 81 percent industry average replacement rate but it will also top all other rivals on the market. Ford is following closely at 86 percent product replacement during the next four years, followed by Honda at 85 percent, and Fiat Chrysler Automobiles at 84 percent. The report is also putting a focus on the importance of the frequency of product replacements by automakers. The study contends the faster they get new vehicles out the more times customers come in to check the fresh products – the companies increase their market share and this brings heftier profits.
The study also predicts a plethora of crossover introductions, as well as light trucks hitting dealerships more often these four years. By 2020, 58 percent of the industry’s product launches are expected to be part of the two segments – surging from 42 percent in the period between 2007 and 2016. GM is again at the top of the roster with 86 percent of launches being crossovers or light trucks. The study is also predicting the American auto industry is approaching another peak, with 20 million units sold in 2018 and then decaying to 14 million autos by 2026.