Mazda5: 44% fleet sales in US

:)

WhiteStar III said:
Considering what you wrote on post #9

Mazda isn't "dumping" 5's they are using rental car companies to get people to buy them. Mazda knows a test drive isn't enough to push someone, they have to be behind the wheel for an extended period of time to really appreciate the attributes of a particular car. Part of what pushed me to buy a 3 was the experience I had driving a rental. Although I test drove a 3 three times, it was the two days I spent with the rental that pushed me over the edge.

Mazda's approach is smart and resell has nothign to do with whether a car is in a rental fleet or not.


You sure seemed to have knowledge of Mazdas marketing plan for the 5. And a lot of hating on Toyota success.

I posted this in another thread a while ago, but the info is still relevant and shows that the Mazda5 fleet numbers have increased dramatically since then.

Market Collapse
Detroit 3 count on fleet sales to move minivans


By RICK KRANZ | AUTOMOTIVE NEWS

AutoWeek | Published 01/02/07, 11:31 am et

SLUMP
Consumers are bailing out of minivans. Here are annual retail registrations.
2001: 969,342
2002: 906,036
2003: 807,059
2004: 836,868
2005: 818,823
2006: 611,191*
* First 10 months
Source: R.L. Polk

DETROIT -- Simply put, Detroit 3 minivan sales are even worse than you thought.

The Detroit 3 are relying on fleet customers -- both corporate customers and daily rental companies, such as Hertz -- to prevent a minivan sales debacle.

In the first 10 months of 2006, fleet sales accounted for about 65 percent of Ford Freestar sales, about 62 percent of Chevrolet Uplander sales and about 42 percent of Dodge Caravan and Grand Caravan sales.

By comparison, fleets accounted for 1 percent of Honda Odyssey sales in the same period. Overall, fleets accounted for about 27 percent of all minivan sales.

The estimates were generated by the Automotive News Data Center, which compared its own overall sales data to retail vehicle registrations provided by R.L. Polk. Fleet sales involve the purchase of 10 or more vehicles.

The data explain why Ford Motor Co. and General Motors are bailing out of traditional minivans. The Chrysler group, on the other hand, is defending its turf. The company has restyled and re-engineered the 2008 Dodge Caravan and Grand Caravan and Chrysler Town & County, which will debut at the Detroit auto show next week.

Meanwhile, the import brands generally have avoided a meltdown. Retail sales of the Odyssey and Toyota Sienna remain steady, although the Nissan Quest continues to struggle.

Among the imports, only the Mazda5 and Kia Sedona generate significant fleet sales. Through October, fleet customers purchased 28 percent of all Mazda5s and 17 percent of all Sedonas.

OK isn't good enough

The minivan segment is getting tougher because many retail customers are switching to crossovers to haul families and their gear. Through October, retail buyers purchased 621,594 minivans, down 12.7 percent compared with the year-ago period.

As retail demand declines, overall minivan sales could fail to top 1 million units in 2006, their worst result in 13 years.

"We are basically looking at roughly 700,000 in retail registrations this year," says Ford sales analyst George Pipas. "As the sales volume trails off, the first thing that happens is that the domestics turn to the daily rental business."

The Ford Freestar and Aerostar were "OK" vehicles, Pipas says, despite a significant Freestar re-engineering for the 2004 model year.

GM did not invest heavily to upgrade its minivans, and sales suffered.

"You just can't be OK when you are competing against Honda and Toyota," Pipas says. "The segment is getting too small to try to be an Odyssey wannabe. It will take you years to get a reputation to get up to that level. That accounted for our kind of just taking a whole different tack on this people-mover category."

Chrysler thinks the sales slide is temporary. Ann Fandozzi, director of global product markets for the Chrysler group, blames the tightening economy and the spike in gasoline price in 2006 for the minivan sales slide.

Chrysler sees overall minivan sales increasing "and stabilizing at about the 1.2 million-unit mark," she said at a press event in December.

No mommymobiles

The Detroit 3 are at an interesting crossroads for the segment.

Chrysler invested heavily in the 2008 Dodge Caravan and Grand Caravan and Chrysler Town & Country, with a conventional exterior and an innovative interior.

But sources say General Motors will phase out its traditional minivans -- the Chevrolet Uplander, Buick Terraza and Saturn Relay -- by 2010 and replace them with mid-sized crossovers. The first of these crossovers are the 2007 Saturn Outlook and GMC Acadia.

Meanwhile, Ford is producing an eight-passenger crossover for the 2009 model year. The vehicle, inspired by a recent concept called the Fairlane, will try to provide the minivan's family-hauling functions in a more stylish package. It lacks, for instance, the traditional minivan's sliding doors.

The Fairlane-inspired vehicle will be pitched to post-baby boom adults, generations X and Y, who likely spent a good portion of their childhoods scooting around in minivans and now don't want a mommymobile.

These younger adults simply aren't buying traditional minivans, says Jim Hall, vice president of AutoPacific, a consulting firm in Southfield, Mich.

He adds: "The minivan market is collapsing."


http://www.autoweek.com/apps/pbcs.dl...024/LATESTNEWS

Still want to argue the point?

OK, I'll admit that I may have sounded a bit too "absolute" about Mazda's plans, but I get annoyed with people automatically choosing the worst case scenerio and stating that Mazda is going to kill the 5's resale. I prefer to give them the benefit of the doubt. :) I also don't believe Mazda is trying to build a Honda Odessey wanna-be.

I also don't hate Toyota. I owned an MR2 and loved it. In fact one of the reasons I love my Mazda's is becasue they remind me of how fun the MR2 was. I don't begrudge Toyota for building boring cars. I just begrudge American's for constantly choosing the boring, vanilla cars over the exciting, fun to drive choices.

Maybe the difference between our opinions is simply that I don't care about resale. If I did I would have bought a Camry and a Highlander and wouldn't be on my 6th (soon to be 7th) Mazda.

People who own Mazdas know that they will never have as good a resale as Toyota or Honda. And I'm OK with that. I also think Mazda is OK with that. I don't think they are consciously going after Honda and Toyota (like Volkswagen). I think Mazda is perfectly happy selling exciting cars to a niche' segment and if they take out a few Corollas and Camry's in the process so be it.
 
WhiteStar III said:
Among the imports, only the Mazda5 and Kia Sedona generate significant fleet sales. Through October, fleet customers purchased 28 percent of all Mazda5s and 17 percent of all Sedonas.

So do you have any proof that Mazda is "dumping" the Mazda5 into fleet sales?

Because last years numbers make it appear that fleet sales was part of their marketing strategy from the very start.

http://www.fleet-central.com/af/stats2006/cars_web.pdf

If I were to guess, which is what we are all doing, then I'd guess that Mazda knew there was going to be a small niche for the Mazda5 and that fleet sales would make the volume high enough to justify the costs of bringing the car to the US.
 
Looks like the 3-row cross-over (Pilot/Highlander/Acadia/CX-9) market is set to flat-out explode in the next 5 years as people run from minivans and Expeditions/Tahoes to 22-26 mpg cross-overs.

I think the 5 would have raised some eyebrows had it produced EPA 32+mpg. At 26ish it doesn't seem to be enough to get anyone other than the value shopper (me) pulled away from the extra cargo space and towing capacity of trad. minivans/cross-overs.
 
i don't give a rats ass about resale value. i'm this sucker for the long haul. and even so - for me anyways - a GT with nav, saddle brown leather, sirius satellite radio, remote start and 6 disc can't have that bad of a resale value ;)

my neighbor walked over after we both pulled into our driveways. she just bought a Chrysler Town and Country Limited with all the trimmings and wanted to know how i liked my "new van". i told her alot and she was very impressed when i let her peek around the inside. when she asked me what i paid for it and i replied, i think she choked. yeah, she's got stow and go seats and a mighty mopar 3.8 and probably cushier seats for wide american butts, but i'll not be in for half the warranty work that thing will be.
 
AIMWO4 said:
... nobody else buys a Mazda5. I like having something unique. In fact... I hope they stop selling them in the US altogether!(nana)

I like the idea that nobody around has one as well :D. I also keep my cars for several years before "dumping" them so as long as I can get a box of Cheerios when is time to trade in I'm happy ;)

Yet, I wouldn't like to go to AIMWO4's extreme as my concern is finding spare parts later on at a reasonable price (i.e. 5-10 years down the road). With my old Honda I can get to i.e. Monroe and they'll get any part cheaply in no time (i.e. exhaust, windshield). The less Mazda sells in the US, the more difficult could be to get spare parts (unless you go to the Mazda dealer).

And FWIW, The Mazda5 is not a Minivan so if you have 4 kids and want to fit crap like in a Sienna or Caravan, good luck! (yes, yes, the sliding door does not help making my case :D). IMO the problem is that in NA there is nothing else to compare to (except now the shoebox on wheels Rondo) hence the weird numbers.
 
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mazda5 = mazda3 with a dose of growth hormone. engine, tranny, suspension is all the same shiz. there is no chance of not having spare parts available for this car, or even after market parts. i'll be putting on a set of H&R springs, a Fujita intake and a couple other goodies this week.

if people wanted to haul four kids in four car seats with equal number of strollers and groceries they should go buy an Astro van.
 
Captain KRM P5 said:
if people wanted to haul four kids in four car seats with equal number of strollers and groceries they should go buy an Astro van.
That fellow's wife is now expecting a 5th child, so he's trading in his 7-seater Sienna for an 8-seater. I believe his Sienna was getting serviced the day he had the rental 5.

We bought a 5 because it could handle 3 car seats without problems on the test drive. Our Sienna LE-8 is the car we all go out in together, the 5 is its backup and served well earlier this week:
DSC02402.jpg
BTW, rear visibility is not great when you do this. We also really could have used those 2nd row AC ducts coming next MY.
 
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Captain KRM P5 said:
mazda5 = mazda3 with a dose of growth hormone. engine, tranny, suspension is all the same shiz. there is no chance of not having spare parts available for this car, or even after market parts. i'll be putting on a set of H&R springs, a Fujita intake and a couple other goodies this week.

Hmmm, engine, tranny, suspension yes, but for other parts I wouldn't be so sure. Exhaust is different, windshield, liftgate struts, taillights, headlights, blah, blah...

starlightmica said:
That fellow's wife is now expecting a 5th child, so he's trading in his 7-seater Sienna for an 8-seater. I believe his Sienna was getting serviced the day he had the rental 5.

We bought a 5 because it could handle 3 car seats without problems on the test drive. Our Sienna LE-8 is the car we all go out in together, the 5 is its backup and served well earlier this week:
View attachment 110977
BTW, rear visibility is not great when you do this. We also really could have used those 2nd row AC ducts coming next MY.


Whoaaa! :D. And I thought I've seen it all for the MZ5 versatility. Good job starlightmica! I just show the pic to wife 2.0 and she just had one word for it: awesome!

I agree with you, the MZ5 as a backup car for that need is a great concept. My comment was for those who would buy it to do this as a primary car (e.g. to do this 95% of the time). As a primary car I agree with Captain KRM P5 or you, you need something big (Sienna) so at least you can also fit some groceries (wink)
 
coolmazda5 said:
Hmmm, engine, tranny, suspension yes, but for other parts I wouldn't be so sure. Exhaust is different, windshield, liftgate struts, taillights, headlights, blah, blah...

the exhaust is stainless steel and should never rust out honestly. if it does. any muffler shop will be able to fab up a better than stock exhaust with aftermarket cats that flows and cleans as good or better than stock. liftgate struts can be matched up to any number from McMaster-Carr's inventory and if i can get a windshield for my slow selling 1993 tercel 14 years later a mazda5 shouldn't be that hard to come by 14 years from now.

headlights and taillights - well, some of these cars - heaven forbid - will be in junkyards by then i'd think.

besides the fact that i can still order parts for my 1985 carbureted rx-7. if mazda stocks parts for that thing 22 years later, i'm not worried about them doing so on the 5.
 
Captain KRM P5 said:
the exhaust is stainless steel and should never rust out honestly. if it does. any muffler shop will be able to fab up a better than stock exhaust with aftermarket cats that flows and cleans as good or better than stock. liftgate struts can be matched up to any number from McMaster-Carr's inventory and if i can get a windshield for my slow selling 1993 tercel 14 years later a mazda5 shouldn't be that hard to come by 14 years from now.

headlights and taillights - well, some of these cars - heaven forbid - will be in junkyards by then i'd think.

besides the fact that i can still order parts for my 1985 carbureted rx-7. if mazda stocks parts for that thing 22 years later, i'm not worried about them doing so on the 5.

22 years later? I hope not to be driving my MZ5 in 2028 but, hey, I think it is just my paranoia (boom04) . 7-10yrs suffices so we should be fine then :D. Thanks for the examples (Man, that RX-7 example is good).
 
starlightmica said:
Here's pushing it: a fellow on the Sienna forum recently had a 5 as a rental, and tried to go shopping with his wife and 4 kids + 4 car seats and 2 strollers. Needless to say, it wasn't the most positive review.


Well part of the problem is it gets labelled a mini-van... when its not. Its more of a Sport Van by my terms, then the guy would've realized he was renting a vehicle smaller than a mini-van. Its his own fault for not researching the vehicle to match his needs.
 
raspykart said:
Its his own fault for not researching the vehicle to match his needs.

Sheesh, give the poor guy a break! (not to mention the 5th kid on the way...)

He wanted to try it out for the day as his Sienna was was at the dealer, liked driving in it by himself, but found out it didn't suit his needs.
 
I compare it to...

I compare it to a Volvo or Saab wagon. I think it actually falls into that category on a website I saw. The Saab wagon doesn't have a 3rd row option, and the Volvo seat faces rearward. And the price is just a wee bit different... no turbo either. But, I use my Mazda5 just like my Saab. But now I can flip up a seat in the rear, and put a kid back there. He doesn't mind a few groceries piled up next to him either. (crazy) If we know we're going to stock up, we take the T&C. The Mazda5 gets a lot better gas mileage... also about the same as my Saab wagon.

coolmazda5 said:
I like the idea that nobody around has one as well :D. I also keep my cars for several years before "dumping" them so as long as I can get a box of Cheerios when is time to trade in I'm happy ;)

Yet, I wouldn't like to go to AIMWO4's extreme as my concern is finding spare parts later on at a reasonable price (i.e. 5-10 years down the road). With my old Honda I can get to i.e. Monroe and they'll get any part cheaply in no time (i.e. exhaust, windshield). The less Mazda sells in the US, the more difficult could be to get spare parts (unless you go to the Mazda dealer).

And FWIW, The Mazda5 is not a Minivan so if you have 4 kids and want to fit crap like in a Sienna or Caravan, good luck! (yes, yes, the sliding door does not help making my case :D). IMO the problem is that in NA there is nothing else to compare to (except now the shoebox on wheels Rondo) hence the weird numbers.
 
HotRodSaint said:
So do you have any proof that Mazda is "dumping" the Mazda5 into fleet sales?

Because last years numbers make it appear that fleet sales was part of their marketing strategy from the very start.

Do you have any proof that fleet sales was part of the marketing strategy from the very start?

Per my article, in the first 10 months of 2006, fleet sales accounted for about 28 percent of all Mazda5s. Your data increases that to 32.1% by years end, and for the first half of this year it increased again to 43.8%, according to the data provided by the thread starter.

So going by your logic, roughly 18+ months after launch, the marketing plan has failed, as the ratio of retail to fleet has increased not decreased. And even with all those moved to fleet use the Mazda5 year to date sales are still off by 8.8% (as of April 07)

http://media.ford.com/newsroom/release_display.cfm?release=25949

and at a discount versus retail so profitability is reduced. Add to the fact that the 5 was expected to sell a relatively small 20K units; Why is anyone still arguing the point?

HotRodSaint said:
If I were to guess, which is what we are all doing, then I'd guess that Mazda knew there was going to be a small niche for the Mazda5 and that fleet sales would make the volume high enough to justify the costs of bringing the car to the US.

My educated guess is that the Mz5 is a victim of bad timing, bad press, low sticker fuel economy and for most Americans its just not the right vehicle.

First, its a tweener, not a full size minivan but not a small compact either (& as a compact its a hatchback which historically has never found much appeal to Americans).

Second, just as the model was released minivan sales/registrations started to tumble, and for Mazda its replacing the larger and arguably more functional MPV. So there goes your loyal repeat customers in a shrinking sales base.

Third, the well publicized heat shield recall right after launch (one of my coworkers commented on that right after I bought and showed off mine).

Fourth, EPA fuel economy ratings arent much better than a traditional minivan and worse than subcompacts. Real world (in my use & to my pleasant surprise) it is much better and in line with subcompacts, but when your doing your research, heresay goes out the window, and you tend to rely on the systematic method of the EPA.

Now Im not going to say that the Mz5 is the greatest thing on four wheels but none of the above (including resale) bothered me because the vehicle was purchased to fill a need not a want. I was ready to live with some significant compromises as it was the best fit for those needs that I could find. However, I am pleased with what you get for the price (functionality of a minivan without the size & cost, good handling with communicative steering, better hp, torque & interior volume vrs subcompacts) and happy that a lot of those compromises I though I had made, have not come to fruition (thanks to the good highway mileage and range & overall fit & finish).
 
WhiteStar III said:
My educated guess is that the Mz5 is a victim of bad timing, bad press, low sticker fuel economy and for most Americans its just not the right vehicle.

No press is more like it. The small amount of press that the 5 did receive seemed to be overwhelmingly positive. Low sales expectations, no advertising in NA, the sales figures shouldn't be a surprise to anyone. It's clear this vehicle wasn't designed for the NA market in mind. We in NA should consider ourselves fortunate that the vehicle exists at all.
 
WhiteStar III said:
Do you have any proof that fleet sales was part of the marketing strategy from the very start?

No, but I have data that leads me to come to that conclusion.

Do you think this data proves that Mazda is "dumping" the 5 into fleet sales?

By definition, dumping means that Mazda expected to sell 6700 MY2006 Mazda5's retail, but had to 'dump' 2178 into fleet sales because they fell short of their retail goals.

If this explains MY2006, then for MY2007 this would mean that Mazda learned nothing from MY2006 and continued blindly into 2007 thinking they could increase their retail sales.

Do you really think this is true?

WhiteStar III said:
Per my article, in the first 10 months of 2006, fleet sales accounted for about 28 percent of all Mazda5s. Your data increases that to 32.1% by years end, and for the first half of this year it increased again to 43.8%, according to the data provided by the thread starter.

And this proves dumping? Or does it show a shift in marketing strategy?

WhiteStar III said:
So going by your logic, roughly 18+ months after launch, the marketing plan has failed, as the ratio of retail to fleet has increased not decreased. And even with all those moved to fleet use the Mazda5 year to date sales are still off by 8.8% (as of April 07)

Go figure. An auto maker changed it's marketing strategy after 18 months and it's second model year sales are down from it's first model year sales. How often does that happen?

Oh wait, that's pretty much normal for an industry that see's the Ford Five Hundred become the new Ford Taurus in the blink of an eye.
 
Lol

We get a laugh out of the Mazda commercials advertising every Mazda, except the 5.(headshake

doctorz said:
No press is more like it. The small amount of press that the 5 did receive seemed to be overwhelmingly positive. Low sales expectations, no advertising in NA, the sales figures shouldn't be a surprise to anyone. It's clear this vehicle wasn't designed for the NA market in mind. We in NA should consider ourselves fortunate that the vehicle exists at all.
 
HotRodSaint said:
No, but I have data that leads me to come to that conclusion.

... <snip>
Post a poll and ask how many of the Mazda5 owners here were pulled into a purchase by your assumed "marketing plan".
 
The 5 is a niche vehicle if there ever was one. It is a tweener. It fills a very specific need. That said, anyone who tried to cram 4 kids, two car seats, two strollers and a spouse into this thing is either insane or just plain stupid. Mazda has done zero advertising, while KIA is advertising the hell out of the Rondo, and I see a new one of those with 30 day tags every other day. I plain pure and simple do not understand Mazda's marketing plan, or lack thereof, for the 5. I love my 5, there aren't many other vehicles I would even begin to consider trading it for. Yes the resale is being hurt by the fleet sales, but trust me on this, Mazda doesn't care one bit, the 5 is an experiment for them, their bread and butter, the 3 and the 6 are still safe. Don't know how well the CX-7 or CX-9 are selling, but that seems to be where their long term focus is anyways. I honestly believe Mazda tried to see if they could toss the 5 into the American market and get some buzz going and move some vehicles on the cheap. The fact is, it works if you are Mini with a history of niche vehicles, it doesn't work as well if you are a main line auto producer, and you don't let people even know that the vehcile is out there. People are not going to seek it out just based upon its' looks, they need to know about the whole package, and Mazda isn't saying anything.
 
WhiteStar III said:
Post a poll and ask how many of the Mazda5 owners here were pulled into a purchase by your assumed "marketing plan".

What part of 'marketing plan' means that it must solely involve retail sales? Can't a 'marketing plan' also include fleet sales as part of the overall plan?
 
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