This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

An Early Look at Car Showrooms in 2012

California and 16 other states seem close to being allowed to hold automakers to tougher emissions standards than the federal government has in mind.

If these states move ahead with their plans, they'll generate enough of a critical mass to largely determine what the rest of the country is driving. So it made me wonder what dealer showrooms will look like beyond 2011, when the first of the latest round of emissions standards go into effect.

For some answers, I talked with Paul Ballew, who spent several years as a sales and markets analyst for General Motors (GM - Get Report) and is now senior vice president of customer insights and analytics for Nationwide Mutual Insurance.

It can be tricky to tell what the future holds, even for someone who does it for a living. At the very least, Ballew was able to tell me pretty confidently what he doesn't expect to see in showrooms -- lots of heavy, gas-guzzling trucks and SUVs. "The probability of a comeback for this segment is low," he says. "You need a strong economy and $1.20 gas prices, so I can't see a scenario where that will be a magic bullet for Detroit."

Those who haul soccer teams or 2-by-4s around on the weekend needn't despair. Just plan on seeing more crossover vehicles that put truck or SUV tops on car bases that can handle smaller, more fuel-efficient engines. The Toyota (TM - Get Report) Highlander and the Buick Enclave are examples.

A wider variety of alt-fuel vehicles are also likely to make their way into showrooms. "The great hope is that the cost for these vehicles will decline as you hit scale," Ballew says. In addition, "competition should bring out different products at different price points." As an example, he points to the Honda (HMC - Get Report) Insight, a small hybrid that will hit showrooms this year with a starting price below $20,000.

1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG
NSANY $21.40 -0.19%
F $15.77 0.06%
GM $35.59 -0.92%
HMC $36.36 0.72%
TM $141.21 0.13%

Markets

DOW 18,080.14 +21.45 0.12%
S&P 500 2,117.69 +4.76 0.23%
NASDAQ 5,092.0850 +36.0220 0.71%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs