Autoblog http://www.autoblog.com Autoblog http://www.blogsmithmedia.com/www.autoblog.com/media/feedlogo.gif Autoblog http://www.autoblog.com en-us Copyright 2009 Weblogs, Inc. The contents of this feed are available for non-commercial use only. Blogsmith http://www.blogsmith.com/<![CDATA[REPORT: Analyst urges Mitsubishi, Suzuki to exit U.S. market]]>http://www.autoblog.com/2009/07/10/report-analysts-urge-mitsubishi-suzuki-to-exit-u-s-market/http://www.autoblog.com/2009/07/10/report-analysts-urge-mitsubishi-suzuki-to-exit-u-s-market/http://www.autoblog.com/2009/07/10/report-analysts-urge-mitsubishi-suzuki-to-exit-u-s-market/#commentsFiled under: ,


Click either image for a high-res gallery

Two U.S. domestic automakers have now entered and emerged from Chapter 11 bankruptcy. Other automakers that were doing well before the economic implosion are now scrambling to cut costs and get people into showrooms with creative incentives. And then there's Suzuki and Mitsubishi. While each brand offers a model or two that's genuinely competitive, neither has been able to fend off the huge sales decline that's hit the U.S. auto industry.

Suzuki sales in the U.S. were down a remarkable 78% last month, while Mitsubishi fared just a bit better with a 42% decline. These types of numbers have at least one analyst from Fukoku Capital Management, Inc. advising each Japanese brand to withdraw from the U.S. market altogether.

For its part, Mitsubishi says no way. Bloomberg quotes the company's president saying bluntly, "We will never give up the U.S. market." He went on to say that Mitsubishi won't seek alliances with other automakers or use its assembly plant in Illinois to build vehicles for other brands. In the meantime, Mitsubishi has shuttered its U.S. design studio and canceled the Raider pickup supplied by Chrysler.

Suzuki, meanwhile, has the Kizashi mid-size sedan on the way. Sales me be down now, but don't expect the automaker to pull out when it's got a potential game changer on deck.

While the analyst's advice is not surprising considering the numbers, the numbers aren't surprising when you consider the lineups on offer in Mitsubishi and Suzuki showrooms. Sure, Mitsubishi has the Lancer EVO and Suzuki's SX4 is not a bad little car, but the rest struggle to even compete and are backed by little-to-no creative marketing.

What we may be seeing are this market's two smallest Japanese import brands going into hibernation until the U.S. economy recovers. Other markets around the world are still profitable for each and Suzuki still makes some of the best motorcycles on earth (an association still far underutilized by its autos division). The question remains: Will either brand have anything worth buying when Americans open up their wallets again? Hat tip to Wave54!


Gallery: 2009 Mitsubishi Model Line Up


Gallery: 2009 Suzuki Model Line Up


[Source: Bloomberg]

REPORT: Analyst urges Mitsubishi, Suzuki to exit U.S. market originally appeared on Autoblog on Fri, 10 Jul 2009 19:30:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>economymitsubishisuzukiu.s. marketU.s.MarketFri, 10 Jul 2009 19:30:00 EST<![CDATA[I think I'm turning Japanese, I really think so: Majority of Californians buy Japanese cars in 2006]]>http://www.autoblog.com/2006/12/28/i-think-im-turning-japanese-i-really-think-so-majority-of-cal/http://www.autoblog.com/2006/12/28/i-think-im-turning-japanese-i-really-think-so-majority-of-cal/http://www.autoblog.com/2006/12/28/i-think-im-turning-japanese-i-really-think-so-majority-of-cal/#commentsFiled under:

California auto dealers are reporting that by year's end the state's residents will have bought 938,839 Japanese vehicles and 859,206 domestic vehicles, the latter of which also includes those sold by The Chrysler Group despite the location of its parent company's headquarters in Germany. This is big news as Californians have never before let down the Big Three in sales. The cause is most likely the decision by each domestic automaker to reign in their respective fleet sales, which account for a significant percentage of their sales nationwide, let alone in California. The Big Three will end the year with 41 percent of the California new car buyer market, which is a drop of 9.2 percent compared to 2005. The Japanese brands, meanwhile, will rise 2.7 percent to 44.8 percent.

Being the largest new car market in the U.S., California can also forecast trends in the industry before they occur on a national level. At the moment, however, it doesn't seem likely that Japanese brands will outsell their domestic competitors on a national level anytime soon, with the latter still enjoying a 53.9 percent share of their homecourt and Japanese brands commanding only 34.8 percent of the U.S. market.

Thanks for the tip, Steve!

I think I'm turning Japanese, I really think so: Majority of Californians buy Japanese cars in 2006 originally appeared on Autoblog on Thu, 28 Dec 2006 20:05:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>californianationwidesalesu.s. marketU.s.MarketThu, 28 Dec 2006 20:05:00 EST