Foreign manufacturers eclipse domestics in consumer sales
Historically, U.S. automakers have held both the majority of fleet and consumer sales stateside. According to new research provided by R.L. Polk and Co. the "Big Two and a Half" only holds one of those distinctions for the first time in U.S. history.
Foreign car manufacturers now account for 53% of consumer car sales through May of this year and that figure only stands to increase as the year progresses. Honda, Nissan, Hyundai and, of course, Toyota held a slim margin under U.S. manufacturers this time last year with 49% of the retail market, but most analysts have predicted this day would come sooner, rather than later.
Industry observers maintain that GM, Ford, and Chrysler's slipping numbers are due in large part to high gas prices, forcing consumers to seek out smaller, more fuel efficient vehicles traditionally offered by Japanese manufacturers. Others note that many foreign automakers have a better grasp on what U.S. consumers desire in a vehicle, with safety features, interior amenities and resale value topping the most wanted list.
Some dire soul searching is in order if the domestics stand a chance at regaining their previously held title. Especially considering that fleet sales are likely the next to go to their competitors in the east.
[Source: Detroit News]
Reader Comments (Page 1 of 2)
Lithous 9:02AM (7/25/2006)
First of all this must of already happened since DCX has been foreign for, what, 8 to 10 years now. Second you are talking about 2 (well, these dumbasses for some reason 3) car companies against, what, 10 foreign car companies that sell here.
But thank you American companies for not makeing a SINGLE DVD player, stereo (I don't know that Bose *assembles* their foreign parts here anymore, maybe B&K Components still does but it would cost $8000 for a nav system from them) or just about any other consumer electronics product so GM and Ford could contract to have you build their nav systems, etc. that these critics are saying is at least one reason GM and Ford is slipping. Gee, Japan took over the consumer electronics industry do you really not get why Ford and GM don't have the gadgets?
Anyway, my guess is that the day Daimler bought Chrysler this (foreign out numbering domestic sales in U.S.) actually happened. But some people are too dumb to realize it.
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James 9:15AM (7/25/2006)
Bear in mind the effect fleet sales have to prop up these numbers. I don't think I've ever rented a non-American brand vehicle in the USA or Canada. Mazda, Honda, Toyota et al have built their reputation on quality, not quantity. Nothing shouts 'HIRE CAR' louder to me than a Chevrolet Impala or Cobalt, and that's my take on a small part of the problem with their image and reputation.
*j*
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AR 10:12AM (7/25/2006)
So installing an RCA or Zenith DVD player in their vehicles is the solution to GM and Ford's problems Lithous? What a f***ing joke! GM and Ford could easily buy stereos and DVD players elsewhere and install them in their vehicles. Having American companies build such gadgets doesn't matter if the domestics aren't building the vehicles that consumers want. Like I'm sure consumers say, "Hmmm, if only the Uplander had an American-made DVD player or stereo I would definitely choose it over the Sienna or Odyssey.".
"Second you are talking about 2 (well, these dumbasses for some reason 3) car companies against, what, 10 foreign car companies that sell here."
Toyota by itself has more money than the domestics combined and is worth more to boot. You don't even have to take those other "foreign" companies into consideration!
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Jeff the Baptist 10:20AM (7/25/2006)
The American car companies' deficiency is not gadgets. The American car companies' deficiency is product. Gas prices are going up yet Ford hasn't updated their compact car or compact truck lines in years. They've done the work on both of these, but they don't sell the product in the US as a Ford make.
Admittedly GM has done some updates, like the Cobalt, but they suck. Or they updated wrong by growing their compact trucks into midsize trucks.
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Lithous 10:45AM (7/25/2006)
"So installing an RCA or Zenith DVD player in their vehicles is the solution to GM and Ford's problems Lithous?"
First, RCA and Zenith haven't been American companies for over 10 years. Second, I never stated that solves the overall problem. I stated that it solves one of the "problems" these critics are stating. I.E. why the nav system on an Escape sucks.
"GM and Ford could easily buy stereos and DVD players elsewhere and install them in their vehicles."
And they do. GM gets nav systems now from Denso which Toyota has an interest in. This puts GM at a dissadvantage. Name an American "partner" (because that is how things are looked upon in Japan Keiratsu (sp?)) GM and Ford could use to always stay ahead in the gadget department? And please don't name two more non-U.S. companies again.
" "Hmmm, if only the Uplander had an American-made DVD player or stereo I would definitely choose it over the Sienna or Odyssey.". "
OK, so my tangent about how American companies don't assemble things here anymore unless it is very expensive through you off. Sorry. I meant the whole partnership thing isn't here with world class consumer electronics makers. About the only hit U.S. (company owned) electronic is the ipod and the xbox. The ipod is marketing and itunes (software) that made it sell and the xbox is what software is available as well. So those are not typical of American consumer electronics.
"Toyota by itself has more money than the domestics combined and is worth more to boot. You don't even have to take those other "foreign" companies into consideration!"
But good reading comprehension on your part. The article is about sales numbers.
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Jeff 10:46AM (7/25/2006)
"Industry observers maintain that GM, Ford, and Chrysler's slipping numbers are due in large part to high gas prices, forcing consumers to seek out smaller, more fuel efficient vehicles traditionally offered by Japanese manufacturers."
Really ? GM and Ford don't have any vehicles that offer good gas mileage? Last time I checked GM had 30+/- vehicles that got 30mpg. I'm sure Ford is probably right around that. This is a poor excuse. Industry observers are morons if they actually think that.
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Matt 10:46AM (7/25/2006)
More doom and gloom.. I have to stop reading these stories about the protracted death of the US auto industry. It's too painful.
I understand what's happening and see the reasons for it, but I wish I could see hope for the US companies. The future looks pretty bleak right now. The product just isn't strong enough to win back buyers or get enough people to jump brands.
Even if you have no personal connection to the US auto industry, this is still something that should make all Americans sad.
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AR 10:57AM (7/25/2006)
"But good reading comprehension on your part. The article is about sales numbers."
Really? I didn't bring up the shmuck about the electronics industry, you did. Try reading into the bigger picture boy genius. Sales numbers mean nothing if you aren't making profits on the vehicles you sell. Any idiot knows that. Except of course you.
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Rastus 10:58AM (7/25/2006)
Let's give it up to the "Foreign" companies for a JOB WELL DONE!!!
This is the last hurdle before Toyota overtakes GM for the title.
This is WONDERFUL NEWS, people. Adam Smith predicted this 100+ years ago. Always, ALWAYS, have faith in the marketplace.
It's called Capitalism...and is what our country (the good 'ole USA) is founded upon.
YES!!! :)
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Michael Karesh 11:02AM (7/25/2006)
I've rented Mazdas, Hyundais, and Kias before. And I've seen Toyotas in rental fleets. But I don't think I've seen Hondas.
It's not a matter of the number of companies. A much larger of European companies used to sell cars in the U.S., but the sales of most never amounted to much.
There also used to be far more American companies. The term "The Big Three" was not coined to separate the American companies from the foreign ones, but GM, Ford, and Chrysler, all based in or near Detroit, from smaller American companies like Nash, Hudson, Kaiser-Frasier, Packard, etc., most of which were based somewhere other than Detroit. In this sense it remains a valid term.
GM and especially Ford have neglected their entry level vehicles. The Cobalt isn't as bad as most people seem to think--it has some definite strengths. But the Colorado/Canyon was certainly shortchanged during development, the Ranger hasn't been redesigned in a very long time, and the mose recent revision of the Focus actually went in the wrong direction by greatly cheapening the interior.
On top of it all, Toyota has become increasingly aggressive with price cuts and incentives. They have enough money to buy however much market share they desire, and have no qualms about spending it.
EPA highway numbers, the root of the "models that get over 30 MPG" are often meaningless. Or not: my father-in-law's Impala gets 33-35 on the highway. Yeah, I was shocked, but he showed me the math. Which he teaches at the college level.
At any rate, I'm about to launch a fuel economy survey, to get some real numbers.
http://www.truedelta.com
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ron 11:24AM (7/25/2006)
The domestics gave away the small car market to the Asians decades ago because they could make enough profit on them. The Asians developed a loyal customer base of small car buyers, and when these customers wanted to move up to a large vehicle, the Asians were there to accomodate them. It's called long-term planning and we've been hearing for decades how the Asians do it, but we've never learned!! Many of the domestic vehicles continue to miss the mark, and of those that have a fighting chance against the imports, our manufactures fail to promote them! Look at the ads that are currently running on TV and you'll see trucks and SUVs! Ever see an ad for a Focus or Vibe? The market is gone and isn't coming back - the domestics are just going to have to be satisfied scraping by on what they have and hope to hold on to.
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AnonymousInsights 11:44AM (7/25/2006)
Interesting picture of the Camry and its 'grinning' grill. That car looks like its going to happily swallow up another car, well, except that it has no teeth. It's probably ready to gum GM to death for the crown of top car company in the world.
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Lithous 11:46AM (7/25/2006)
"Sales numbers mean nothing if you aren't making profits on the vehicles you sell. Any idiot knows that. Except of course you."
I've stated it before. Get rid of the legacy costs and these *more* sales mean a ton. They need to keep their sales numbers up and get rid of legacy costs. Some retired GM employees don't even want to pay a couple hundred A YEAR for healthcare as a compromise. That is just sad and that can change. I'd do that in a heart beat if the company that employed me for years was $300B in debt.
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courtstone 11:49AM (7/25/2006)
First of all, I want to say that its sad that we as American people dont feel more sympathetic to Ford/GM's problem. Im not saying that we should go out and get us a Malibu or Expedition, but I agree with Matt about us being so unapologetic about how we feel out the fall of Ford/GM. Yes, I want them to realize that we as Americans will not just accept their subpar cars and trucks, but I still dont want them to pay that price with going down the tubes. I feel that if they go down it will somehow affect us. I truely want to them to learn from their mistakes.
The bottom line is about product, Ford/GM/Chrysler still cannot build a better vehicle than Honda/Toyota/Nissan. Lets not forget Hyundai, if they can do it, so we can we! Since high gas prices help drive this mess, we look to sedans. What sedans do Ford/GM/Chrysler offer that can compete:
Fusion/Milan, Focus, Malibu, Cobalt, Sebring/Stratus, Caliber, G6, GrandPrix...
None of these cars can equate to the Accord, Civic, Camry, Corolla, Altima, Maxima...
Ford/GM can cut prices and give all the employee discounts they want, but until the Malibu beats the Accord or the Fusion outdoes the Camry, the problem will still exist. They have to do what Hyundai did: They must build a better product and price it just below.
Lastly, Lithous - What are you talking about? How can you say that a CD/DVD will affect sales? A comment that dumb shouldn't even deserve to be addressed.
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Karl 4:49PM (9/18/2006)
This really is no surprise to me. First off, the big three haven't had a quality product (comparitively) in decades. They've put out crap after crap. They bet on the wrong horse: the disposable car.
People may only plan to keep their cars for seven years (I think that's the average) but when it's done, they want the car to have done two things beyond the obvious: maintained some of it's value and not have cost a fortune in upkeep. Every "foreign" car I've owned has needed nothing more than gas, tires and oil for the majority of it's life. The car I have now has nearly a quarter million miles on it. It's a mazda.
The total cost except for insurance and gasoline since I've owned it (112k) is only around $13,000 including the purchase price ($4500 in 2000). details: http://mechlogs.com/maverik
The Ford minivan we own has only 67,000 miles on it and needs more work dispite being newer and being driven at a more reasonable 12,000 miles per year. The most recent thing to break, the door latch doesn't close right so the dome lights stay on constantly. The whole latch needs to be replaced. I temporarily shorted the connection to keep the light off.
Not to mention the overall "domestic" (in quotes, since most are imported now) attitude is fuel economy? Who cares?
I've been talking to my co-workers, my bet is within 10 years, the big two and a half will be the big zero.
Even giving away the cars doesn't seem to work, as they did last summer.
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Lithous 12:26PM (7/25/2006)
"Lastly, Lithous - What are you talking about? How can you say that a CD/DVD will affect sales? A comment that dumb shouldn't even deserve to be addressed."
Please read the article. Ammenities is what the critic IN THE ARTICLE is stating is ONE THING American cars don't always have available.
You don't think people think about which car they are going to buy based on which has the best navigation or ipod capabilities sometimes? People who go through cars every year or two and there are a lot are all about some of this stuff. Why would Toyota waste their time making a commercial (around 2004/2005) demonstrating rain sensing wipers (even though my Envoy had them in 2002)? Heated and cooled seats (OK, so this isn't a consumer electronic product but a gadget). Rear seat entertainment. These are selling points in minivans especially.
Especially with a GM product where you don't want to lose OnStar capabilities by switching an aftermarket system (or pay a bunch to have it work OK) it important for GM to sell great nav systems. It just happens that they have to go to Denso to do it.
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Lithous 12:30PM (7/25/2006)
"This really is no surprise to me. First off, the big three haven't had a quality product (comparitively) in decades. They've put out crap after crap. They bet on the wrong horse: the disposable car."
Give Pat Goss a call on his weekend radio show. He keeps stating that there is virtually no difference in vehicles now-a-days. But you know better than him after your minivan experience.
"Not to mention the overall "domestic" (in quotes, since most are imported now) attitude is fuel economy? Who cares?"
Most are foreign? could you show me the number because that is another import fanboy myth.
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MarkWeb 12:47PM (7/25/2006)
I've purchased about 75% domestic and 25% imported (Japanese) over the past 5 years and quality has been comparable - the Japanese weren't as perfect as expected (and some of the issues were built-in design limitations or oversights, couldn't be fixed) while the domestics weren't nearly as bad as bashers would have you believe - in fact, quality was respectable, and in almost all cases I got more bang for my buck, based on larger car or better engine for the money. My current Cobalt stick shift regularly returns 34 mpg per tank based on my freeway commute (which includes the inevitable city street portion).
Toyota is enjoying the limelight right now because it makes more (and marginally better) cars than the Big Three. When gas stabilizes, people will stop paying premiums to buy Honda Fits, and switch back to SUV's and the Big Three will be rolling in the dough again. What's going on now, is ALL about a spike in gas prices and nothing else. It certainly isn't about long term changes in driving tastes or habits. And the Prius is a "Hollywood status symbol" which barely pencils out even with tax subsidies (and why are we subsidizing Toyota?).
BUT I hope that next time around, the Big Three keeps their eye on the ball with their whole line up - they MUST HAVE good, dependable entry level cars and trucks, to feed sales into their midsized offering and finally their "premium" SUV/truck lines. Chevy kept the Cavalier around way too long, and now Ford is making the same mistake with its Focus. At least DC axed the Neon and has the wildly successful Caliber, and Chevy is refreshing the wildly successful Aveo NOW.
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john 12:49PM (7/25/2006)
I get so sick hearing about how great the foreign cars are and the American cars are junk. The only reason that the foreign car companies dont have as many complaints is that the Americans buying them are ashamed they own them and will not complain about them. I have owned several new American cars in the past 12 yrs and have only taken one of them back in for a service problem. Yet the foreign car I bought inthe middle of this was taken back for reapirs 4 times in the 6 months I owned it. I just traded in a 2003 ponitac bonneville and I was getting 32 mpg without a problem. The new camry with all the recalls it is having is a real lemon and if your are truly open minded it looks like a cheap japanese car from yesterday. Get real people and actually take a look at the American cars out there they are alot better than the anti American group who writes the articles in consumer reports etc.
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john 12:53PM (7/25/2006)
How many gadgets does one want in a car, I have a 5 disk cd player a plugin for the i pod telephone,onstar, bose sound system, xm radio,and digital read out on the car systems and only usea couple of them. So due to the people who want all the toys they actually never use I have to pay for them to have them because some idiot bitches they dont have enough gadgets and buttons. If the car companies just put buttons on the dash for you to push it would probably satisfy your button pushing addictiono.
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