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2012 HISPANIC IMPACT ON CHEVROLET VEHICLE SALES December 1, 2012 Prepared by John A. Lopez Dir. New Business Development Encore Automotive Media 310 877-5689 Encore Media 10736 Jefferson Blvd., Ste 936 Culver City, CA 90232 Mobile [310] 877-5689

2012 hispanic impact on chevrolet vehicle sales

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This Power-Point presentation highlights the impact of Hispanics on 2012 new car purchases on the Chevrolet brand. Data compiled by John Lopez through established nationwide sources.

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Page 1: 2012 hispanic impact on chevrolet vehicle sales

2012 HISPANIC IMPACT ON CHEVROLET

VEHICLE SALES

December 1, 2012

Prepared by John A. Lopez Dir. New Business DevelopmentEncore Automotive Media310 877-5689

Encore Media 10736 Jefferson Blvd., Ste 936 Culver City, CA 90232 Mobile [310] 877-5689

Page 2: 2012 hispanic impact on chevrolet vehicle sales

Hispanic consumers are as likely to buy Japanese midsize sedans as they are to purchase small, fuel-efficient American cars, according to Polk, and are as attracted to Ford F-series pickups as they are to Chevrolet Silverado’s and Ram trucks.

The Hispanic contribution to New Vehicle sales from January to June 2012 was $13.8 billion; this figure represents approximately $28 billion on an estimated projected annual basis.

Toyota, Nissan, Honda, Chevrolet and Ford were the top five brands preferred by Hispanic consumers during that time period.

Marc Bland: Polk Research

HISPANICS PURCHASED $13.8 BILLION IN NEW VEHICLES THE FIRST 6 MONTHS OF

2012

Page 3: 2012 hispanic impact on chevrolet vehicle sales

Median resident age:   33.1 yearsCalifornia median age:   33.3 years

Males: 769,384   (49.8%)

Females: 776,003   (50.2%)

Races in Riverside County, California:•Hispanic or Latino (43.2%)•White Non-Hispanic Alone (42.5%)•Black Non-Hispanic Alone (5.9%)•Asian alone (5.1%)•Two or more races (1.9%)•Some other race alone (0.7%)•American Indian and Alaska Native alone (0.5%)              

Riverside County is

43.2%Latino

Average HH Income: $75,266 per year

Page 4: 2012 hispanic impact on chevrolet vehicle sales

Since U.S. Hispanics represent the fastest-growing segment of the U.S. consumer market, it stands to reason they are in the driver’s seat of the present and future automobile boom in the U.S.

Lets see why Hispanics are such an important Part of the Automotive Sales

Segment.

Page 5: 2012 hispanic impact on chevrolet vehicle sales

4,779,11832.8%

1,157,6228.0%

1,274,9678.8%

7,230,15949.8%

Hispanic Hispanic

Black

Asian White White Asian

1,238,722 7.0%

Black*

7,451,192 43.1%

+10.3 increase

1,981,751

11.2%

6,440,053 36.5%

Multi-Race 346,284

1.5%

Other 115,673

.7%

Other89,663

.6%

Source: Ethnic/Racial Composition of Los AngelesU.S. Census Bureau includes counties of L.A., Orange,

Ventura, Riverside and San Bernardino

Hispanics in Los Angeles now Outnumber White Non-Hispanics

Population Facts

2010 Census1990 Census

Page 6: 2012 hispanic impact on chevrolet vehicle sales

MEDIA: TELEVISION

Research shows that Hispanic families are larger and in fact watch TV together. Meaning your message can reach multiple demographics at the same time.

Telemundo FAM Study 2012

Page 7: 2012 hispanic impact on chevrolet vehicle sales

Hispanic Contributionto Auto Industry fromJune 2011 - June 2012Comparison.

A 26% boost in sales

Page 8: 2012 hispanic impact on chevrolet vehicle sales

Hispanic Regional Share Market.

Los Angeles is by far the #1 market for “New Vehicle” Purchases by Hispanics at 16%

Page 9: 2012 hispanic impact on chevrolet vehicle sales

BiggestHispanic Car Segments

The biggest segments for Hispanics are pickups compacts, midsize cars, compact crossovers. These segments are setting the stage for the redesigned Malibu, as well as a brand-new platform for Chevrolet Silverado and the Cruze. Chevrolet’s focus on space, miles per gallon, styling and technology are key features that resonate strongly with Hispanic consumer.

Tia Hardeman, Marketing Manager GM.

Chevy is the # 1 Selling Domestic

Brand Among Latinos

Page 10: 2012 hispanic impact on chevrolet vehicle sales

Top 10 National Brands Hispanic Car Buyers

CHEVROLET IS AMERICA’S #1 DOMESTIC BRANDWITH HISPANICS

56,352,461 UNITSBY VOLUME HSYTD 2012

Page 11: 2012 hispanic impact on chevrolet vehicle sales

GM Company Sales U.S. Light Vehicle

0

50,000

100,000

150,000

200,000

250,000

Company Sales Oct 2011 vs. Oct 2012

GM

Ford

Chrysler

Toyota

Honda

U.S. Light Vehicle Sales Source: WardsAuto ©2012

Page 12: 2012 hispanic impact on chevrolet vehicle sales

National Hispanic Population Profile by origin

2010 Pew Hispanic Research

Page 13: 2012 hispanic impact on chevrolet vehicle sales

Hispanics by U.S. County

In Los Angeles County Mexicans make up 11% of the overall total. However, it’s important to note that in some Los Angeles zip codes Hispanic density is 99-100%

The Hispanic population in the United States grew by 43% in the last decade, surpassing 50 million and accounting for about 1 out of 6 Americans, according to the U.S. Census Bureau.Overall, Hispanics accounted for more than half of the 27.3 million U.S. population increase since 2000

Page 14: 2012 hispanic impact on chevrolet vehicle sales

Ranking of Top 10 U.S. Light Trucks and CarsBy Vehicle 2012

U.S. Top 10 Cars October 2012 (YTD)

    YTD Sales

CAMRY Toyota 344,714

ACCORD Honda 276,196

ALTIMA Nissan 258,663

CIVIC Honda 254,716

COROLLA/MATRIX Toyota 243,652

FUSION Ford 206,855

FOCUS Ford 205,006

CRUZE Chevrolet 199,721

SONATA Hyundai 192,119

MALIBU Chevrolet 189,094

Source: WardsAuto InfoBank

U.S. Top 10 Light Trucks October 2012 (YTD)

    YTD Sales

F SERIES Ford 489,806

SILVERADO Chevrolet 336,939

CR-V Honda 233,586

RAM PICKUP Ram 230,241

ESCAPE Ford 219,907

EQUINOX Chevrolet 182,249

RAV4 Toyota 145,103

EXPLORER Ford 132,023

SIERRA GMC 126,749

GRAND CHEROKEE Jeep 123,994

Page 15: 2012 hispanic impact on chevrolet vehicle sales

Hispanics represent a significant and important part of the Riverside automotive market.

Increase your leads, sales and profits by embracing this market in 2013.

Findings/Conclusions

Page 16: 2012 hispanic impact on chevrolet vehicle sales

OUR CONCLUSIONS FOR SINGH CHEVROLET

•Hispanic customers are the largest ethnic segment of the Chevrolet buyer profile•43.2% of Riverside’s population is Hispanic•Los Angeles is the nations largest population center of Hispanics •Los Angeles is the #1 DMA market for national Chevrolet sales to Hispanics•Chevrolet has an ongoing relationship with the Hispanic car buyer•Hispanics purchased $13.8 Billion in new vehicles in the first 6 months of 2012

Based on city research, demographics and buying characteristics, Encore Media can safely conclude that with Riverside’s large Hispanic population, there is significant Hispanic buying clout in the county and the surrounding zip codes to the dealership. We therefore recommend that a regular and sustainable Hispanic branding program be launched to reach Spanish speaking car buyers to invite them to the dealership. By doing so, Singh Chevrolet will receive a significant boost in leads, sales, community support and long-term future profits.