OC-based carmakers had a banner year in 1999, with all six major companies reporting sales gains of 1.3% to more than 80%.
The OC firms’ performance comes against a national backdrop of record sales in 1999 of 16.9 million vehicles, up from 15.5 million in 1998.
“The overall industry is going gangbusters,” said George Peterson, president of AutoPacific Inc., Tustin, a car-sales forecasting group. “Brands headquartered here participated in that. … Hyundai is starting its way back. Mitsubishi, with some incentive programs, boomed. Lincoln-Mercury moved ahead with the introduction of the (Lincoln) LS.”
Peterson said the outlook for 2000 also is good.
“This year will be a strong year, but will be a bit short of 1999,” he said. “It’s tough to follow a record year with another record.”
Irvine-based Kia Motors America hit the high road on sales growth last year, selling 134, 594 vehicles in 1999, a 62% increase from 1998 when the Korean auto maker sold 82,893 vehicles.
“We accomplished every goal we set for ourselves this year,” said Dick Macedo, Kia’s executive vice president of marketing and sales.
Since its first year in 1994, when it sold 12,163 units, Kia has averaged 63% growth per year in car sales. Kia just introduced its fourth model, the four-door hatchback Spectra, last month.
Sales at Cypress-based Mitsubishi Motor Sales of America grew 37.1% in 1999 with 261,254 cars sold, up from 190,515 cars in 1998. Mitsubishi finished off the year with December sales up 79.7% from the previous December and is continuing the growth in the new year with January sales up 9.1% year-to-year.
Sales of its Galant model jumped more than 40% in January and the 2000 Eclipse had a 36.2% increase year-to-year.
Mitsubishi attributed the sales growth to three things: increased brand awareness, the highest satisfaction levels in six years according to an independent source, and an “order to delivery” system that was introduced last year, reducing port stock by 45,000 units.
“Our biggest challenge for 2000 will be to continue the momentum in a very competitive market,” said Pierre Gagnon, Mitsubishi’s executive vice president and chief operating officer.
Mitsubishi unveiled three products at the Detroit North American International Automobile Show last month: the redesigned 2001 Montero, a luxury sport vehicle; the 2001 Eclipse Spyder; and the SSS concept vehicle, a sedan capable of transporting two standing mountain bikes inside the car. The company also has plans to redesign its Mondeo model.
Lincoln-Mercury, Irvine, saw sales rise overall, but it had mixed performance for its brands.
Lincoln sold 176,493 vehicles in 1999, a 6% drop from 1998. The decline, according to the company, was a result of lower production necessitated by the mid-year launch of the Lincoln LS and limited availability of Lincoln Navigator’s 32-valve, 300 horsepower engine.
But Mercury’s numbers jumped up 7% to 438,000 units sold in 1999, despite discontinuing the Mercury Tracer. Mercury’s sport utility model, the Mountaineer, had record sales at 49,281, and the Cougar had a jump in sales due to full availability. The Grand Marquis also posted its best year since 1986.
Led by the compact Proteg & #233; and the luxury Millenia models, Mazda North America Operations, Irvine, posted a 1.3% growth in total car sales at 243,708 units sold.
Last year was Mazda’s second year of growth after a three-year sales decline and a 15-year sales low in 1997. Mazda implemented some cost-cutting measures and redesigned a few of its models, including the MPV, which did not have a 1999 edition. Mazda trucks, both 4x2s and 4x4s, also took a hit, losing 4.5% and 15.8% in sales, respectively. And Miata sales dropped 10.6% last year.
But Proteg & #233; sales rose 11.8% in 1999 and the high-end Millenia posted a 14.8% sales gain for the year.
Mazda re-entered the SUV market this year with its unveiling of the four-door Tribute on Jan. 3 at the LA Auto Show. The company also is bringing back the rotary engine in its RX Evolv model, which was unveiled at a car show in Tokyo last year, “but it is still in the works,” said president and CEO of Mazda North American Operations, Richard Beattie. “Mazda is still a year away,” Peterson said.
Fountain Valley based-Hyundai finished off 1999 with 164,190 cars sold, an 82% increase from 1998. The company attributes the growth to an improved warranty, increased product quality, and better brand awareness.
“Public perception has caught up with the improvements,” said Donna Kane, Hyundai’s PR manager.
The company is also attracting a better demographic, said Kane. “Higher income levels and better credit,” she said.
Hyundai is also coming out with some new models. The Santa Fe is the company’s first venture into the SUV market, but it is also developing a hybrid of an SUV, station wagon and minivan, the Crosstour. It is a lower, sportier vehicle designed to attract drivers who do not want a bulky SUV, but want something bigger than a car.
It is also developing another vehicle, code-named the XG sedan, which will be a step up from the company’s Sonata model.
Hyundai has set a goal of selling 200,000 cars in 2000. “We’re on target,” Kane said, “We had an incredible January.”
American Suzuki Motor Corp., Brea, reported 49,888 vehicles sold in 1999, a 33% growth from 1998. Most of the sales growth came from the Grand Vitara model, a smaller SUV that went from 5,910 units sold in 1998, to 27,450 last year. The company’s biggest drop in sales came from the Sport model, which dropped from 9,277 units sold in 1998 to just 606 last year. Suzuki is venturing further into the SUV market with its XL6 model, a four-door SUV that is larger than the Vitara. n
