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March 16, 2012, Edmunds.com:
Evidence there’s at least a semi-seismic shift underway in the U.S. auto market: a source at General Motors Co. told us the the company’s engine-production data indicate GM built a half-million fewer V8 engines in 2011 than it did just five year earlier in 2006.
Last year, GM built approximately 1.15 million V8s in North America. That compares with the roughly 1.7 million V8s GM manufactured in 2006. The drop can be attributed to a number of factors, but it all adds up to one undeniable conclusion: our market is changing.
The number of fewer GM V8s is significant, but does have to be judged in the context of how far total sales dropped off in the past five years. In 2006, when GM made 1.7 million V8s, slightly more than 17 million new vehicles were sold. America’s new-vehicle sales plunged to 10.6 million in 2009 and “recovered” to slightly more than 13 million in 2011 – so GM’s production decline of a half-million V8s came amidst an overall market decline about about 4 million units. In 2006, GM’s market share was 23.9 percent, compared with 19.2 percent in 2011; you do the math on that one.
Beyond that, a portion of the dropoff in GM’s V8 production can be attributed to the broad decline in fullsize pickup and SUV sales brought on by the recession that started in late 2008. But since the recession, another significant trend has been underway: engine downsizing. It’s happening everywhere and isn’t likely to stop unless a crude-oil volcano arises from the Badlands to bring gasoline prices back to $2 a gallon. Ford’s major engine-downsizing initiative – mass fitment of EcoBoost engines – is kicking into high gear; the company said earlier this year it aims to triple production of EcoBoost 4-cylinders and V6s, offering EcoBoost engines in 11 models in 2012 compared with seven models last year.
The German luxury-sport brands no longer are shy about hawking 4-cylinder engines in this market – BMW’s new turbocharged 2-liter already is a staff favorite – and nearly every automaker is working the downsizing equation in some fashion. Heck, the world’s largest purveyor of V12s, Bentley, even is bending to the times and axing cylinders with the addition of V8-powered Continental GT and GTC convertibles – even if its new 4-liter twin-turbo V8 does make 500 horsepower.
In fact, V8 installations for vehicles built in North America hit an all-time low in 2010, according to industry data source extraordinaire Wardsauto.com. Just 20.8 percent of vehicles built in North America in 2010 were fitted with V8s, Ward’s said, although the ratio did rise to 22.5 percent for the ’11 model year. In 2001, 26.5 percent of vehicles built in North America were fitted with V8s.
– Bill Visnic, senior editor, Edmunds.com
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