Dismal Milestone: Detroit Automakers Outsold by Foreign Brands in the U.S.
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Dismal Milestone: Detroit Automakers Outsold by Foreign Brands in the U.S.
Chrysler and other U.S. makers captured only 48.1 percent of U.S. sales in July. Pictured: 2007 Aspen.
Ford Expedition is an example of a big SUV that has seen sales decline as gas prices have risen.
Honda CR-V is an example of a small, more fuel-efficient vehicle that has helped Japan's automakers increase sales steadily.
SANTA MONICA, Calif. — Just 30 years ago, Detroit automakers controlled 84 percent of the U.S. market. But foreign auto companies surged past the domestics for the first time ever in July, commanding 51.9 percent of the market, according to Edmunds' Auto Observer.
Detroit brands, including Ford, the Chrysler Group and General Motors, captured only 48.1 percent of the American light vehicle market last month. A year ago, Detroit companies held 52 percent of the U.S. market.
Several factors are conspiring to erode Detroit's share. Rising gas prices have hampered sales of Detroit's big pickups and SUVs. At the same time, Japanese producers have been quick to market smaller, more fuel-efficient crossover vehicles. Detroit automakers have also voluntarily cut back on unprofitable sales to rental-car agencies and have cut back on sales incentives.
What this means to you: Consumers should expect incentives to be higher in the second half of 2007, as Detroit struggles to regain its balance against the foreign manufacturers
Detroit brands, including Ford, the Chrysler Group and General Motors, captured only 48.1 percent of the American light vehicle market last month. A year ago, Detroit companies held 52 percent of the U.S. market.
Several factors are conspiring to erode Detroit's share. Rising gas prices have hampered sales of Detroit's big pickups and SUVs. At the same time, Japanese producers have been quick to market smaller, more fuel-efficient crossover vehicles. Detroit automakers have also voluntarily cut back on unprofitable sales to rental-car agencies and have cut back on sales incentives.
What this means to you: Consumers should expect incentives to be higher in the second half of 2007, as Detroit struggles to regain its balance against the foreign manufacturers
#2
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Several factors are conspiring to erode Detroit's share. Rising gas prices have hampered sales of Detroit's big pickups and SUVs. At the same time, Japanese producers have been quick to market smaller, more fuel-efficient crossover vehicles. Detroit automakers have also voluntarily cut back on unprofitable sales to rental-car agencies and have cut back on sales incentives
Ford, GM, and Chrysler have not lost ground to foreign nameplates because of gas prices...or even because of big SUV's. Those gas prices go up and down with the wind...you cannot really depend on them from one month to the next, although most of us agree that the long-term trend will be up as world demand for oil continues to increase and refinery capacity remains questionable.
No....though there are some exceptions of course, when you examine the average American-designed car today with the average Japanese or Korean-designed vehicle (comparisons with European vehicles vary) it is easy to see why the Asian cars, particularly the Koreans, are gaining so much. It is not a matter of gas mileage. It is simply the way the vehicles are built.....overall quality, hardware, paint, fit-and-finish, etc.....
The Hyundai Sonata, for example, simply blows the average mid-sized Big 3 sedan right out of the water, quality-wise...for a comparable or even lower price. Same with the larger Azera....it trumps the Buick Lucerne in the quality of its materials.
But that does not mean that everything about Asian vehicles beats their American competitors either. I have not been impressed with the interiors on some recent Toyota and Nissan products.
Last edited by mmarshall; 08-03-07 at 03:39 AM.
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