According to a Bank of America Merrill Lynch report released today, Ford will lead the industry average on introducing new or refreshed models in the United states – at the fastest rate for model years 2013 through 2016.
Analyst John Murphy said that Ford replace 26 percent of its lineup during the three-year period, while competitors like Nissan, Toyota and GM will have a replacement rate between 23 to 25 percent (matching the industry average). Chrysler and Honda will trail the industry average with a replacement rate of 20 percent.
Murphy said that automakers that revamp their models faster tend to increase their marketshare.
“As automakers emerge from the trough in the cycle, more are aiming to spur demand by launching fresh product rather than discounting stale models at the expense of margins,” Murphy said.
– By: Omar Rana