Ford will lead the industry in introducing new or refreshed vehicles in the US at the fastest rate for model years 2013 to the end of 2016, according to a Bank of America Merrill Lynch report.
The automaker will replace 26% of its lineup by then. According to the report, the replacement rates will be 25% for General Motors, 24% for Toyota and 23% for Nissan.
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Analyst John Murphy said automakers that revamp their vehicle lines faster tend to increase market share.
“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.
Chrysler and Honda will follow the industry average with replacement rates of 20%, the report added.
Ford’s US market share will rise to more than 16% from 15.3% so far in 2012, driven by new products such as the C-Max and Escape crossovers and Lincoln MKZ and Ford Fusion sedans in the 2013 model year..
Ford will replace vehicles representing 46% of its volume in model year 2015 with the redesigned Ford Edge and Lincoln MKX crossovers, F-series pickups and Mustang sportscar.
According to estimates, General Motor’s US market share may rebound to the “low 18% range” with 2013 model year vehicles including the Cadillac ATS and XTS sedans and Chevrolet Malibu and Spark cars. GM will update vehicles accounting for 52% of its volume in the 2014 model year with new vehicles including the Chevrolet Silverado and GMC Sierra pickups and Cadillac CTS and Chevrolet Impala sedans.
