Asian brands beat Big 3 sales in May
Just less than a year ago, the Big 3 domestic automakers' combined market share dropped to less than 50-percent of the overall automobile market. That sobering statistic was made factual when the combined sales of vehicles from both Asian countries, such as Japan and Korea, were combined with sales from European companies, like Volkswagen, BMW and Mercedes-Benz. It seems that this sad state of affairs did little to stop the bleeding coming from Detroit, as last month marks the first time in history that Asian automakers alone, with a combined share of 47.8-percent, sold more vehicles in the United States than companies actually based there. Ouch.Large pickup trucks and SUV's have long been the last stronghold for Detroit's struggling automakers. While the Big 3 still have a commanding lead in sales of these large vehicles, it's the smaller, more fuel efficient vehicles which are taking the largest bite from the overall market share pie. Record-high fuel prices have put such a damper on truck sales that a shocking five vehicles outsold the F-150 last month, all of them highly practical sedans. It seems easy to see, then, where Detroit should be spending what engineering dollars it has left.
[Source: The Detroit News]
Reader Comments (Page 1 of 3)
FrankTheCrank 9:02AM (6/05/2008)
The past is prologue.
We've seen this before. And we still haven't learned our lesson.
Ford, GM, Chrysler....you deserve what you get.
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Vintage 9:30AM (6/05/2008)
Agreed. They made their sh*t houses constructed of 'instant profits' (by throwing some leather in a truck and selling it for 60 grand) and completely ignored the future (small cars, efficient cars, fun to drive cars), and now they can sit in it.
BAD GM! BAD FORD ! BAD CHRYSLER!
No treats for you. BAD!
Don 9:43AM (6/05/2008)
Amen. Now, let's turn things around!
Dan 1:47PM (6/05/2008)
Right, how dare those companies pursue instant profits.
What they should have been done through the past 20 years of cheap gas was make efficient, compact clown cars that nobody really wanted .. and let those high profit large vehicle sales go to someone else.
Toyota would have been happy to take them.
PJ 3:53PM (6/05/2008)
Of course they should pursue high-profit segments, just like every other automaker does.
But operating with a lopsided product portfolio makes no sense. If half the cars you build are uncompetitive, eventually, that crap-car reputation is going to rub off on your high-profit models, too.
Hence consumers jumping headlong into Pilots and Highlanders. If their Cavalier treated them like dirt, and their Accord didn't, who are they going to turn to when the time comes for a high-profit family SUV? And when the economy takes a downturn, who are they going to return to for another compact?
Jack 9:05AM (6/05/2008)
Clearly, the "Big 3" got caught flat footed again. Although Chrysler products are not all that fuel efficient, Fords and GM products are. I drive by a Chevy dealership all the time and notice that there are only 1 or 2 Malibu's on the lot at any one time, a smattering of Cobalts and hardly any Aveos'. All three are very popular, but I wonder how much the strikes and labor unrest have to do with the lack of inventory. Why is it that Toyota dealerships have loads of Camry's and Corrolla's, but Chevy dealerships have hardly any Malibu's? How much of the decline at GM is for lack of inventory?
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jonathan 9:17AM (6/05/2008)
Wagoner, the CEO of GM has stated that cars in the US will get smaller and they are closing down 3 Truck/SUV plants. To compete in this new world they have developed the Camaro (gas guzzler) and Chrysler the Charger.
Unless they are able to come up with smaller more fuel efficient cars that are also RELIABLE the future of the domestic auto industry looks very bleak.
Putting all the eggs in one basked (THE VOLT) may not be the smartest idea
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Soccer Mom 9:50AM (6/05/2008)
How did you determine that Camaro will be a gas guzzler?
the law 10:48AM (6/05/2008)
I'm sure GM isn't going to produce the volt i'm sure Saab and others will get similar.plus, you have the 1.4l coming,along with the triples: Beat,Trax and Groove.
shethj 1:13PM (6/05/2008)
you're an idiot. The camaro wont even be a gas guzzler with a V6 engine. GM has already said the majority of sales will be V6 cars and there will be two available. The base model will likely get 27 or 28mpg on the highway.
The Challenger is a limited production model and it will offer a V6 for those who want better economy.
Yeah, GM doesnt care about gas mileage and thats why the Vue two mode is coming out this year, the Aura gets a standard 6 speed for 2009 and better mileage than the camry I-4 and why a new Aveo and Cobalt will be out in 2010. Not to mention Volt. Oh and thats why there will be hybrid versions of the Escalade and Silverado this fall.
jonathan 8:15AM (6/06/2008)
I have no interest in arguing with people who call others idiots and believe that the Camaro will give 27 mpg.
Rather than call others names you proved who you are.
jonathan 6:43PM (6/05/2008)
Shetj:
This is supposed to be a blog where people behave in a civilized manner. From your comments on how many miles the camaro will give I can understand that you are a GENIUS.
The Other Bob 12:57PM (6/05/2008)
So how many non Asian cars were sold in Japan and Korea? - a pitance.
Of course Asian companies can be ready with smaller cars, they have the Asian market to sell them in at all times. American car companies don't have access to this market and therefore have no reason to invest in smaller cars that, until recently, didn't sell well.
There is always more to the story than just the stupidity of Americans.
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shethj 1:31PM (6/05/2008)
Bob,
you are right on target but your logic is too complex for simply minded bandwagon jumpers. Small cars have always been a speciality of Japanese brands because thats what sells in Japan. Space is tight and gas is high over there. The large vehicle/SUV culture is unique to the US. In the past it was barely logical for US automakers to invest a lot in cheap small cars due to lack of demand and high labor costs. Now things are changing because people are putting more emphasis on mileage and new labor agreements will bring production costs down. Its taken the americans a while to get small cars right but they are getting it. None of these critics on there will tell me why its taken the Japanese so long to get pickups right and even when they did they wont sell. It took a long time because people in Japan dont buy pickups and its strictly a US product.
jsjs 2:35PM (6/05/2008)
Actually, until the recent run-up in the price of gas, the Koreans actually preferred mid-sized sedans (like the Sonata) and mid-sized SUVs (like the Santa Fe).
Even in China (for those who are upper-middle class and can afford it) - people like mid-sized sedans (one reason why Buick does well) and SUVs as well.
tanooki2003 9:20AM (6/05/2008)
With this kind of news I am actually not at all surprised. Actually I was expecting this kind of news for quite awhile. It has taken 2007 for some of the domestic companies to learn their lessons and actually start producing the vehicles that people want vs what they think people need or hanging onto their dying cash cows.
Also the lack of a good selection of economy cars that are built with quality instead of making it look and feel cheap inside and out does not help them either. Ford is finally starting to learn this and hopefully we can expect them to be on par with Euro Ford, which ranks amazingly high in customer satisfaction.
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FrankTheCrank 9:26AM (6/05/2008)
Good point.
If the domestic automakers take the time to craft a decently equipped small vehicle that has the fit and finish of an import ala Honda/VW.....they could have a real hit on their hands.
Problem is, they concentrate on the big money makers instead, the bloated SUV's, trucks, Cadillac's...HUMMER's...the guzzlers.
And they never have a plan B for when the market trends shift.....this is why Toyota is so successful.
Gstill 9:32AM (6/05/2008)
To have FIVE autos beat the F-150 all of the sudden shows that this is a fast and dramatic change, with gas prices not getting cheap.
The domestic companies need to get some of these small cars out quicker. New compacts for 2010 or 2011 ain't going to cut it. The Fiesta, the Dodge small cars with the Chinese and Nissan, and the new Chevy Cobalt and small car need to be out quicker if they are going to make it. Honda, Toyota, Mazda are going to have sold millions of small cars while we wait for the domestics to get in the game.
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Ian B. 10:32AM (6/05/2008)
I still don't get it, the part about putting leather in a truck and selling it for $60. They took raw, work vehicles, the previously preferred vehicles of farmer, ranchers and construction industry people. They then dressed them up in leather, a dozen cup holders, navigation systems, DVD entertainment systems, etc. Then the marketing departments advertised the hell out of them and somehow convinced Americans over a 15 year time period 'these' were the vehicles to own! Did I miss anything?
tanooki2003 9:33AM (6/05/2008)
They also say that history repeats itself. Gee anyone remember the gas crisis of the early 70's? Too bad Detroit has not learned from that period of history.
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