Filed under: Earnings/Financials
First time in 102 years: Big 3 lose majority market share to imports
by John Neff on Aug 1st 2007 at 5:37PM 
As we reported in our By the Numbers post earlier today, last month nearly every automaker, import and domestics alike, had a tough time selling cars. The domestics, including General Motors, Ford Motor Co. and the Chrysler Group., had it tougher, however, and for the first time in the automotive industry's 102-year history, the Big 3's market share fell below that of the imported brands combined. The official tally according to Automotive News was 629,569 units sold by the Big 3 and 679,523 units sold by the imports. That works out to a 48.6% market share for the domestics and a 51.4% share for the imports. Shall we all cry in our travel mugs that our beloved automakers from downtown Detroit, Dearborn and Auburn Hills have lost their leading role in the U.S. market? Hardly, we say. All three domestic heavyweights have realized that bouncing back from their financial doldrums requires ditching their excess and paring down to the essentials. With fleet sales drastically reduced and resources diverted to programs that will bear fruit a few years out, we all know their sales are going to fall, in some cases drastically. Nevertheless, their loss in size and sales will allow each to focus on product more in an environment where what's on the sales floor is all that matters.
And don't fret, the Big 3 still retain majority market share in the U.S. year-to-date. This was just one bad month of sales. One really bad month.
[Source: Automotive News]
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Reader Comments (Page 1 of 3)
Petey 5:44PM (8/01/2007)
How did they define import and domestic? Is the Fusion an import? What about those GMs made in Canada or the Toyota Tundra?
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Lithous 7:47PM (8/01/2007)
Petey, I see what you are trying to do with making people feel obligated to buy more foreign since the domestic car companies offer some NAFTA cars (but so do the Japanese) and the Japanese offer some U.S. assembled cars.
But here is the point. Name one single class of vehicle that the American car companies (combined) do not offer at least one U.S. assembled choice? And no, the Aveo/Fit/Yaris segment doesn't count since NO ONE makes one of those here.
Compact sedan/coupe: Cobalt/Cobalt (OH/OH)
Mid-size sedan/coupe: Aura&Malibu/G6 (KS/KS/MI)
Larger sedan: Lucerne (MI)
Convertable: G6&Corvette&XLR&Sky&Solstice (MI/KY/KY/DE)
Small SUV: Escape (Missouri)
Mid SUV/Minivan: Acadia (Michigan)
Large SUV: Tahoe (Wisconsin)
Small Pickup: Colorado (Louisiana)
Large Pickup: Silverado (Indiana)
Luxury mid: CTS
Luxury large: STS
That is with just including one Ford product and counting Chrysler as foreign until the buyout is officially finished. Then it really isn't a competition (as if it is with GM alone) as far as U.S. built vehicles.
Nice try but the vehicles (U.S. owned and assembled) are available if the public really cares.
500 8:22PM (8/01/2007)
Lithous, I'll answer that for you, since you seem to think that the American companies offer anything that anyone could possibly want. Besides some of the obvious other segments you ignore, where are the luxury coupes? Virtually every import brand offers them (Mercedes, BMW, Audi, Porsche, Jaguar, Maserati, Infiniti, Lexus if you count the SC...), or is getting into the segment. Heck, even Hyundai is working on an upscale, possibly V8-powered RWD coupe!)
I REALLY, REALLY want to buy American, but until the big 3 get their heads out of their a$$es and start building what I want, I'll stick with my Jaguars and Mercedes.
Lithous 8:55PM (8/01/2007)
OK, there is one example but for 99% of car buyers there is something. Since that is so much your passion (a luxury coupe) why not build one yourself? Tesla guys had a passion for something that didn't exist and attempted it. Why not you? Did God ordain who makes cars and who shall not and then leave it at that? I don't think so.
What I was really trying to show is that what they do make isn't all foreign. In response to all the "Big 3 equals foreign made, Asian companies equals American made" crap.
Big Rocket 9:48PM (8/01/2007)
Lithous @ Aug 1st 2007 8:55PM wrote:
"... why not build one [a competitive American luxury coupe] yourself? Tesla guys had a passion for something that didn't exist and attempted it. Why not you? Did God ordain who makes cars and who shall not and then leave it at that? I don't think so."
By the same token, one can ask: Why not you, Lithous? God did not endow everyone with an equal level of technical expertise, business acumen, financial support, etc. needed to develop a successful product. To suggest anyone can do it, just because he or she is passionate, is laughable.
"What I was really trying to show is that what they [the Big 3] do make isn't all foreign. In response to all the 'Big 3 equals foreign made, Asian companies equals American made' crap."
Import fanbois who try to claim Japanese automakers are more American than the Big 3, are full of crap. That said, domestic fanboys who try to obscure the Mexican content and labor of the Fusion, are also full of crap.
Lithous 10:44AM (8/02/2007)
"By the same token, one can ask: Why not you, Lithous?"
Gee, Little D, I'm the one who is completely happy with what the American car companies make. I'm not complaining that there isn't an American car I like. Do you see the difference?
"Import fanbois who try to claim Japanese automakers are more American than the Big 3, are full of crap. That said, domestic fanboys who try to obscure the Mexican content and labor of the Fusion, are also full of crap."
You aren't talking about me there. I don't want a Fusion. I see the Aura, Malibu (especially 2008), G6 and even a CTS (though a little more could be had at a decent price with a deal on a pre-2008), all as fine vehicles. No need for me to obscure or praise the Fusion.
Big Rocket 12:51PM (8/02/2007)
Lithous @ Aug 2nd 2007 10:44AM wrote:
"Gee, Little D, I'm the one who is completely happy with what the American car companies make. I'm not complaining that there isn't an American car I like. Do you see the difference?"
In other words, those who complain about mediocre products would suddenly gain the ability to develop good products? Again, your attitude is laughable.
"You aren't talking about me there. I don't want a Fusion. I see [various GM vehicles], all as fine vehicles. No need for me to obscure or praise the Fusion."
So, you wouldn't mind if someone pointed out that the non-hybrid Toyota Camry is more American than any sedan made by GM, Ford, or Chrysler? Good for you.
Source:
http://www.cars.com/go/advice/Story.jsp?section=top&subject=ami&story=amMade1206
Lithous 11:45PM (11/24/2007)
"So, you wouldn't mind if someone pointed out that the non-hybrid Toyota Camry is more American than any sedan made by GM, Ford, or Chrysler? Good for you."
Yeah sure. They rank they Camry so high because of its sales numbers. GM, Ford and Chrysler can't help it if so many Americans are brain-washed. Anyways, the number of Silverado and Sierras sold more than make up for the number of Camry and Tundras and Corollas sold and then some. So, Chevy is still more American and so buying a Malibu, G6 or Aura still is more American than a Camry. Especially when most Americans are brainwashed to believe that the engineering and design jobs are so important (compared to assembly jobs), your link shows that GM has more higher paying jobs in the U.S. than Toyota. Good try, through (not).
Big Rocket 8:22PM (11/26/2007)
Lithous, first of all, thank you for your timely reply, which came only 114 days after my post on August 2nd. Feel free to take your time, and reply to this post another 114 days later.
Second, I'm still waiting to learn from you how someone who is passionate, or someone who is dissatisfied with the status quo, can magically gain the ability to develop good products. Help me understand how passion and dissatisfaction could replace technical expertise, business acumen, and financial backing.
Third, according to Cars.com, the Camry was ranked the most American-made sedan as of early 2007. The ranking's criteria "include sales, where the car's parts are made and whether the car is assembled in the U.S." I happen to like the use of sales numbers in the ranking system, because I don't want to pay attention to some no-name mom-and-pop shop producing one vehicle a year, with 100% domestic content. If you feel like counting every little specialty shop from here to Nantucket, why don't you come up with your own ranking? I know why: because your passion and your dissatisfaction is no substitute for statistical expertise and research in the real world.
Finally, you think Americans are brainwashed? The Malibu, G6, and Aura, which merited your special mention, were all in response to brainwashed American consumers who have collectively said "no" to lackluster domestic sedans. In essence, you can thank "brainwashed" Americans, who forced the Big 3 to come up with better cars.
Frank 5:46PM (8/01/2007)
Actually GM's number of Retail sales to actual customers, not fleets and compannies are up significantly. Perhaps a silver lining. Who thought Toyota would put $ 3000 on the hood of the new Tundra. They used to accuse GM of ruining profits by placing incentives on vehicles.
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alex 6:21PM (8/01/2007)
retail sales are up from last month, not last july though
Dave 5:53PM (8/01/2007)
Mr. Neff your numbers and article are accurate however I like to point out three things:
The United States of America has never in its history built as many automobiles on its soil as it did last month. Of the 15.8 million vehicles sold about 9.1 million were built in USA alone plus another 2.2 million in Canada and Mexico for USA
The state of the US auto manufacturing is healthy not the healthiest ever but in good condition and unless you are an exclusive supplier to the big 3 you are doing just fine making parts for everyone
And lastly my neighbours son bought a Mazda RX8 yesterday. He went on saying how this was a patriotic purchase over his other choice (bmw z4) because Ford owns Mazda and the profits come to Detroit. He was not happy after I corrected him:
Ford Owns 34% of Mazda. He paid 30,000 for his RX8 and of the 30 grand 27,000 immediately left our country to Japan to make this thing and ship it here. The other 3,000 is divided up by 34% Ford and 66% Mazda. There for 900 bucks comes to Detroit and 29,100 goes to Japan.
His Z4 would have been manufactured in South carolina using US steel, carpet, plastics, wood, labour, electricity and even transmission and so on. The Engine comes from Germany. Of the 35,000 price, 10 grand would go to Germany as profit and for engine and other parts and 25 grand would stay in US GDP.
So to wrap it up, It is simply a sad day that US makers are less than 50% but not as doom and gloom for the whole economy as it would seem
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Jayson 6:08PM (8/01/2007)
Ive always said buy what you want. If you must buy what helps your economy then buy whats made in your economy. Buying a domestic brand that is made somewhere else but shipped here does more harm then buying an import brand that openned up a plant here and used our resources.
But then again, as I said just buy whatever the hell you want. We live on one planet. Its a global economy. Lets move on.
Amber 7:08PM (8/01/2007)
Dave, I know where you got your figures and they are from Reuters for end of year 2006. 15.8 million were not sold in July alone. These are 2006 numbers which are basically representative of right now as well. So a slight typo there.
Lithous 7:27PM (8/01/2007)
Dave,
First off, what is with "neighbours" and "labour"? That is very British/Canadian of you.
Anyway, all that you state is in a vacuum. Nothing reality. From an RX-8, $900 goes to Detroit? Never. From a Z4 $25K goes into the U.S. economy? Hardly. As if the engine supposedly costing $10K is the only thing not American made in the Z4.
It is this vacuum in which you create to describe things that is causing you to not understand many things. You imply that all is not so good with American car companies but all is well in the industry therefore no worries but this is NOT the case. Toyota put out a memo about the high cost to produce a vehicle in the U.S. because labor is so high because of the GOING rate. The U.S. car companies set the GOING rate. If the U.S. car companies are gone, then assembling cars will either go to China or to those who want to make a dollar or more than 7-11 pays.
Also, you start a paragraph about "last month" and then you go into a story about 15.8 million vehicles. Was that last year? Or from last year this time to now? I need a link to your numbers, please.
Sorry, I don't live in a vacuum.
Lithous 7:31PM (8/01/2007)
Amber answered part of my question as I was typing. :)
Dave 7:37PM (8/01/2007)
I am Canadian. I have retired and live in Phoenix now. Sorry my spelling always reverts back to Canadian when I am not concentrating.
ATL 6:41PM (8/01/2007)
Just think of poor Canada 100% imports!! No biggie whole US economy based on imports.
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EnviroBob 6:50PM (8/01/2007)
Do Impalas and 300's and Chargers and Caravans count as imports in Canada since they are built in Ontario?
wally 7:19PM (8/01/2007)
I would guess their imports, because we call all cars made in Mexico as domestic.