THE NEW NORMAL IN AMERICAN CARS

The U.S. vehicle market is solidly rebounding, with sales up 12.7% in March and 13.3% for the quarter -- an especially impressive development given the recent spike in retail gasoline prices to an average of roughly $4 a gallon for unleaded regular.Though some buyers no doubt are trading for smaller, more fuel-efficient models, others are deciding to shoulder the expense of a new vehicle at a time when their pocketbooks are taking a hit at the gas pump. Sales of cars were up 16% for the month over March of last year, while heavier vans, pickups and sport-utilities were up only 9%.

Better cars are helping, too. "Consumers are responding to significantly better vehicles out there, in terms of features and performance -- and, especially, fuel efficiency," says Ivan Drury, senior analyst for Edmunds.com, an automotive website based in Santa Monica, California. "The manufacturers have been able to downsize engines and improve efficiency without much loss of power."

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For the month, vehicles sold at a seasonally adjusted annual rate of 14.4 million units, consistent with widespread forecasts of 2012 sales in the neighborhood of 14.5 million. If that pace continues and the forecasts pan out, this year's total could jump almost 2 million more than the 12.6 million vehicles sold at retail last year.Drury says the relatively strong vehicle sales reflect improving economic performance that has already taken place, as opposed to that which might be on the way. "You need that job or a raise before you go ahead and buy a new car," he said.That's the good news. The badly bruised global automotive industry is finally returning to normalcy. But it is facing a new normal, as the recovery cements major shifts, long in the making. Since the last recession, the competitive breakdown among manufacturers has continued its remarkable shift from the days when the Big Three Detroit-based automakers dominated.

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Today, General Motors (GM), which once owned about half the market, has maintained its historic hold on the top position -- but not by much. GM won a 17.5% share in the first quarter, two percentage points ahead of Ford Motor Co. (F). Chrysler had an 11% share. (Though based in Auburn Hills, Michigan, Chrysler since 2009 has been controlled by Fiat SpA of Turin, Italy.) Thus, the so-called Detroit Three currently control 44.3% of the U.S. market, down from 44.9% in the first quarter of last year.

Toyota (TM) captured 14.1% of the U.S. market in the quarter, followed by 9.2% for Honda (HMC) and 9.3% for Nissan (NSANY). South Korea's Hyundai/Kia group accounted for 8.7% of the market. In other words, about 85% of the U.S. market is controlled by seven manufacturers -- none overwhelmingly dominant -- a mirror of the competitive breakdown in Europe where half a dozen or so automakers share the market.

Nissan, among the manufacturers showing strong sales momentum and share growth, said it set an all-time sales record in March. The company's Infiniti luxury-vehicle franchise posted lower sales for the month, as the franchise introduces its JX seven-passenger crossover at the New York Auto Show this week.

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General Motors, which earlier in the month said it was temporarily suspending production of its Chevrolet Volt gas-electric hybrid to reduce inventories, sold 2,289 units in March, double the month before and the best monthly total ever.

And sales of Toyota's Prius gas-electric hybrid models totaled 28,711 for the month, up 54% from a year ago. By a small margin all Prius versions outsold Toyota's popular Corolla compact for the month.

Good times have returned to automaking, even if they look quite different that just a few years ago.

NISSAN CEO: ELECTRIC CARS WILL BE 10% OF SALES BY 2020

Electric cars, barely a ripple in the car business now despite heavy publicity, will make up 10% of the markets where electrics are sold by 2020, says Carlos Ghosn, CEO of Nissan and Renault.

"Am I still bullish on electric vehicles? Yes," Ghosn said at a conference sponsored by consultant IHS and the National Automobile Dealers Association, in connection with the New York auto show. Automakers begin showing new models to the media tomorrow and the show opens to the public Friday.

Nissan makes the Leaf electric, and Ghosn said the company has sold 25,000 worldwide.

He also said that he has halved the number of electrics, to 500,000, the number at which Nissan won't need government incentives to maintain strong sales. Some U.S. electric buyers can get $7,500 credits on their federal taxes.

Nissan is ramping up production of electrics and batteries faster than expected so the cost of pricey batteries and other electric components is falling fast, he said.

NISSAN CEO PUSHING TOWARDS 10% MARKET SHARE IN U.S., GLOBAL MARKETS

NEW YORK – Nissan Chairman and CEO Carlos Ghosn wasted no time on reiterating the company’s goal is to boost its U.S. market share to 10% on Tuesday when he spoke in New York.

Ghosn, who also is CEO of Renault, said new cars that Nissan is introducing over the next 15 months in high volume segments will play a key role as the company works to increase its market share from the 8.2% mark it hit for 2011.

In March, Nissan sold 136,317 cars and trucks, a 12.5% increase from the same month a year ago. While the industry is still tallying results for March, Ghosn said he expects Nissan’s market share will be about 9% for the month, putting the company within reach of its 10% goal.

On Wednesday, Nissan will unveil its redesigned Nissan Altima midsize sedan at the 2012 New York International Auto Show. That will be followed later this year by a redesigned Nissan Pathfinder SUV and a redesigned Nissan Sentra.

“If the all-new Sentra is your first Nissan, it will not be your last,” Ghosn promised when he spoke at industry conference.

The company’s long-term goal, Ghosn said, is to operate with 10% of industry sales in every major region where it sells cars and trucks.

Ghosn also said the Nissan Leaf, the company’s all electric car, remains a centerpiece of the company’s strategy despite slower than expected industry sales of electric vehicles.

So far, Nissan has sold 11,000 Leafs in the U.S. and 27,000 worldwide – enough for Ghosn to declare that the Leaf is the most successful all-electric in history.

Leaf buyers also represent a very attractive set of buyers. On average, they earn more than $125,000 per year and 48% have post-undergraduate degrees.

 “I still believe they will be 10% of the market by 2020 in all the regions where electric vehicles are available,” Ghosn said. “I have zero doubt that zero emission is here to stay.”

What’s more, 91% of Nissan Leaf buyers previously owned a car made by a competitor.

Ghosn also believes that a majority of U.S. buyers would like to buy an electric car if they could. For that reason, Ghosn said Nissan will launch a new marketing campaign for the Leaf with actual buyers that represent “

This summer, Nissan will launch a new marketing campaign that represents the “practical majority.”

Ghosn knows that many question Nissan’s ability to gain market share and his electric vehicle outlook.

“Frankly, I am used to skeptics,” Ghosn said. “Thirteen years ago skeptics said the Renault-Nissan alliance would fail.”

This year, Ghosn said, Renault-Nissan should end the year with 6.8% of global sales. And despite an economic crisis in Europe and disadvantages caused by the strength of the Yen in Japan.

Ghosn said Renault-Nissan is dealing with the challenges posed by the economy in Europe and the Yen by increasing sales and production in other parts of the world.