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Tom Libby  Quotes
Now about 52 percent of the industry is trucks.

—Tom Libby

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Industry
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Ford has had a gap for a long time between its Focus and its Five Hundred. Now … it’s apparently hit the sweet spot. It also helps that the Fusion has gotten extremely positive reviews...

—Tom Libby

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Focus
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Right now the domestic brands do not have the reputation that would allow them to go without incentives. Chrysler tried it three years ago. Then two weeks later they got right back on the incentives...

—Tom Libby

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Reputation
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They are trying to keep inventory turning by lowering the price through incentives. But obviously the vehicle is under pressure already.

—Tom Libby

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Trying
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But I find this a major move because it says they need something besides value pricing.

—Tom Libby

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Value
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Brands want to be in this segment because if the brand can sell a compact car to a young customer, the nameplate can then potentially keep that customer for life.

—Tom Libby

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American Honda is benefiting from positive reviews and word of mouth about its new Civic, as well as continued incremental sales of its Ridgeline midsize pickup. General Motors is also showing signs of life, as...

—Tom Libby

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Toyota tends to have more products in each segment. Honda goes much slower — for example, it’s not in pickups at all. But they watch and when they execute a product, they do it almost...

—Tom Libby

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Example
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It keeps Honda and Toyota sort of looking at Nissan. The fact that Nissan is refreshing their product periodically keeps Honda and Toyota on their toes. It keeps that market very competitive. I think it’s...

—Tom Libby

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While the impact of Hurricane Katrina has been significant in much of the South, we do expect vehicle sales in those areas affected by the hurricane to recover, especially as people begin to replace vehicles...

—Tom Libby

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Sales
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Even with the lower net pricing, the transaction price is creeping up in the broad sense. There is movement (by buyers) from one segment to another. And the brands have added new models, and those...

—Tom Libby

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If they were to switch back to incentives, frankly, it would undermine everything they’ve done.

—Tom Libby

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The deal will fade, but the vehicle will be with you for years. Get something that you’ll enjoy, that holds its value, because you’ll have to live with it down the road.

—Tom Libby

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For there to be a major shift in the industry, prices have to go well above $3 a gallon and remain there consistently. If you do the math it’s still going to take many, many...

—Tom Libby

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Some of the models — the Ford Five Hundred, the Ford Freestyle — were just being launched in October, … The Chevy Cobalt is just hitting showrooms now.

—Tom Libby

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The price premium is eventually going to have to be adjusted. It looks like they’re pushing against a threshold.

—Tom Libby

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It’s somewhat surprising that they would come forward with a big incentive program at this time. Their pricing program seems to be getting some traction, and they’re getting some momentum from their new models.

—Tom Libby

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They don’t seem to be able to make money there.

—Tom Libby

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Money
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We believe that prices have to actually get to $4 per gallon and remain there for one year for there to be a substantial shift.

—Tom Libby

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You’ve got dealers hesitant to order 05’s until they move the 04’s; the 05’s are being squeezed out,

—Tom Libby

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I think incentives are very much an integral part of the industry. It’s a very sophisticated pricing tool. The Asians are clearly much more into the incentives game this year.

—Tom Libby

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Incentives
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They are small, and one might think this is inconsequential but their numbers are creeping up. I don’t think, based on what we know about Toyota, they should be ignored.

—Tom Libby

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The domestic manufacturers have capacity in excess of demand, so they have determined to lower price through incentives to keep them occupied.

—Tom Libby

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Excess
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The ‘net is a major communications and marketing tool, and those who embrace it will be rewarded, while those who resist will eventually be noncompetitive, … Dave Smith Motors was quick to implement this technology,...

—Tom Libby

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Marketing
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So far, the perceived gas price increases have not had any discernible impact on new-vehicle buying patterns, at least with regard to the size of the engine.

—Tom Libby

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It’s still moving faster than the traditional Escape, but it is turning slower than some of the hybrids. The Escape as a hybrid is sort of middling.

—Tom Libby

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Escape
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We believe at $3 a gallon there’s not enough bite in a person’s pocketbook to make a big difference,

—Tom Libby

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Believe
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There’s already a lot of gaming going on, with [carmakers] subsidizing their small cars so they can sell them to offset the impact on fuel economy of their large trucks, … If this new system...

—Tom Libby

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It’s going to be small. New Orleans is not a major metro [area].

—Tom Libby

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Both Toyota and Honda have about the shortest turnaround times between model changes than anyone else in the industry. They replace a model now every five years or so.

—Tom Libby

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There are a couple of schools of thought on this,

—Tom Libby

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There is definitely a movement downward, … Everyone has been talking about the decline in big SUVs, but no one has really talked about this similar movement away from large luxury cars.

—Tom Libby

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Its reputation was based on customer satisfaction. Now they’re adding this new dimension, which is styling. They have a challenge in doing both. I hope they will maintain a focus on customer relations because they’ve...

—Tom Libby

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The Lincoln brand itself is suffering greatly right now, and in order for any car from Lincoln to be a hit or a home run, it’s going to have to be a superstar.

—Tom Libby

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go over $3 and close to $4 and stay at that level for at least a year.

—Tom Libby

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There is definitely a movement downward. Everyone has been talking about the decline in big SUVs, but no one has really talked about this similar movement away from large luxury cars.

—Tom Libby

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The incentive data include 13 different types of incentives and includes lease incentives. It is very comprehensive.

—Tom Libby

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That’s impressive. They need more of this.

—Tom Libby

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It’s going to be small,

—Tom Libby

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It seems like there’s a lot of good initial buzz on this product.

—Tom Libby

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It’s one of the, if not the most competitive segments. You have high-volume brands, and a lot of their entries in that segment are flagship models.

—Tom Libby

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Competitive forces are definitely forcing manufacturers to reduce their product design cycles between changes.

—Tom Libby

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Design
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but the price of gas also has a huge impact on the mix of cars and trucks that are sold.

—Tom Libby

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Cars
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General Motors is showing signs of life.

—Tom Libby

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Life
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Toyota, Honda and BMW continue to do well at the retail level. GM and Ford need to stop their retail share deterioration, and GM hopes their March madness campaign will help do that.

—Tom Libby

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It is definitely a warning signal.

—Tom Libby

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