Detroit lost control of its own market last month, as domestic market share fell below 50 percent for the first time in history, and they have no one to blame but themselves. According to USA Today, Paul Ballew, executive director of market and industry analysis at General Motors Corporation (NYSE: GM) said: "We are not going to cede market share to the competition." What Ballew failed to admit was the fact that they already have, and it's been going on for years.Foreign automakers have seized the opportunity to take market share during the summer by offering tons of rebates, with Toyota Motor Corporation (NYSE: TM) offering a record number of incentives, according to Edmunds.com. Despite the push, overall auto sales last month were down 12.3 percent compared to July 2006. Excluding Nissan Motor Co., Ltd.(NASDAQ: NSANY), BMW and Kia, every major automaker posted a decline in U.S. sales.
Industry experts cited months of higher-than-average gas prices, as well as the problems in the housing market, for soft sales. "Experts" failed to mention that most foreign cars provide tons of incentives, better miles per gallon and have a better reputation than American cars. With the weakness in the overall industry last month, automakers could start to develop some creative and aggressive marketing ploys, Jesse Toprak, an analyst at Edmunds.com, told USA Today. The real question is will U.S. companies ever realize they need to develop autos that have better mileage, and steer away from building gigantic gas guzzling SUVs? With House Speaker Nancy Pelosi and Massachusetts Rep. Ed Markey abandoning their push (subscription required) for an increase in fuel-economy standards, Detroit lacks any reason to even consider it.
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Reader Comments (Page 5 of 5)
8-09-2007 @ 3:38AM
Chuck said...
My 2000 Camry (V-6) gets just under 32 mpg on the freeway at a crusing speed of 65 mph, and around 24 in town. And no, we were'nt driving down hill, nor was there a tailwind. Mileage improves substantially when you aren't constantly speeding up and slowing down; just select a lane and cruise. Still, I was truly surprised by how good the mileage was on the freeway, especially when my 1989 4 cylinder Camry never got more than 25 on the freeway.
Of course, winter blend gasoline causes my mileage to decrease by as much as 20-25%, which my mechanic warned me about when I first purchased my car; she told me to be patient, and come spring my mileage would increase quite a bit. She was right.
And my math is right; I verified it multiple times, and had capable friends check the figures.
8-09-2007 @ 3:44AM
Chuck said...
My 2000 Camry (V-6) gets just under 32 mpg on the freeway at a crusing speed of 65 mph, and around 24 in town. (And no, we were'nt driving down hill, nor was there a tailwind.) Mileage improves substantially when you aren't constantly speeding up and slowing down; just select a lane and cruise.
Still, I was truly surprised by how good the mileage was on the freeway, especially when my 1989 4 cylinder Camry never got more than 25 on the freeway.
Of course, winter blend gasoline causes my mileage to decrease by as much as 20-25%, which my mechanic warned me about when I first purchased my car; she told me to be patient, and come spring my mileage would increase quite a bit. She was right.
And my math is right; I verified it multiple times, and had capable friends check the figures.
8-09-2007 @ 4:47AM
Jay said...
I own a 1993 GMC, it is my first car, which i got used, and have had for 5 years. During this time it has never failed to start, and has never needed a major repair. I find most people who complain about American cars are the type of people who never change their oil or get routine maintenance, then complain that the car is a piece of junk when it breaks down. Typical import owners will get routine maintenance done and think it is the car. The fact of the matter is that if you keep up with the routine maintenance an American car will last just as long if not longer than an import.
8-09-2007 @ 6:09AM
Mike said...
Ok, I've read most of these comments AND some are valid and some are not. I just wanted to clarify one MAJOR issue here. What is considered "American Made?" Here's your lesson, The NUMMI plant in Fremont, Ca is a joint venture between GM and Toyota, they "assemble" toyota trucks and corollas. Now here is where it gets interesting, 92-98% of the parts "assembled" here in Fremont are MADE by Toyota distribitors in Japan, PURCHASED by NUMMI,SHIPPED by Toyota to NUMMI at NUMMI'S cost. All this means is that except for labor/sales costs ALL of this money LEAVES the U.S. Now I know that GM/Ford/Chrysler all have simular deals with "assemblers" outside of the US but these deals were done just for survival. 1 other thing, all of these American "assembled" cars ARE assembled by the SAME americans who USED to assemble the same american GM/Ford/Chryslers, sometimes in the same plants (NUMMI Plant is Old GM plant) same UAW workers!!Americans need to hurry up and get a clue because the housing market is the next american industry to go foriegn and once that is done say bye bye to the american dream.
8-09-2007 @ 6:33AM
Ray said...
It this wasn't so serious, I'd be laughing so hard at the people that think that when they by Rice Rockets that they are superior. On the contrary! In our neck of the woods there are Japanese Car dealerships that have 24/7 service departments open. I wonder why that is? I can honestly relate to the fact that most of the busiest times for these Japanese dealers are in the evenings and wee part of the morning. They are swamped to no end. If these Jap Cralopa's are so great. Why then do these dealerships have 24 hour service departments? I can truthfully answer one part. People do not want to be seen takeing their Rice Burners during the day because these Crapola's are supposed to be 100% perfect. What does Toyota say in it's ads about Lexus models. "In the persuit of PERFECTION......" HA! My brother in law just went through the Lemon law to have his Lexus replaced. Toyota couldn't keep a Transmission in it. The computers were always malfunctioning. There is your persuit of Perfection. Another thing that Toyota did. Because of all of the lemons that they have had in recent years that you do not hear about. They will not allow owners to use the BBB AOTO LINE like other manufacturers. But to get things taken care of through Toyota is like pulling teeth. From start to finish it took my Brother in Law 7.5 weeks to finally win. All the while he did not have his Lexus he had to use my Sisters Beemer X5. All of you dumb down fools that think that you are getting a good product from these Japanese makers? you are DEAD wrong. What are you going to tell all of the Auto workers that were promised the MOON to come and work with Toyota and now we come to find out that Toyota is closing all of their PLANTS in the US. Sounds like Enron all over again. Toyota's mind set is we have screwed the US enough.....Time to move on. The Japanese Automobile is pure unadulterated GARBAGE. Bring on your Lexus 350, Maxima's, Acord's, Acura's, Camary's ,Any midsize Infiniti, Altima's, Subaru's and put them up against my Buick Lucerene CSX or my Bonniville GXP and I will beat them in all aspects of what a true automobile should be. Bring your crapola Lexus 4 series and the Infinite q series and the Cadillac DTS and The Lincoln Town Cars will tear them a new one. You anti-American car buyers should be ashamed. You are part of the paroblem in this country (economy wise) not the solution. I hope you enjoy your Toyota's and soon to follow the othedr Jap manufacturer's when they all leave and you can't get parts for your Rice Rockets. Enjoy your service bills. Save them for when the next time you DIS America. By the Bye. Before the current cars that I have. I has a 1989 Oldsmobile 98 Regency Brougham. When I traded (for another American car) it was at 400,000 miles with no major service. Imagine that! I know of others in the over 100,000 mile range. Yet I have seen Jap Crapola break down (as my brother in law) did at 26,000. You Jap car lovers have been seeing subliminal messeges and have been BRAIN WASHED!!!!!!!Get a life and then a grip
8-09-2007 @ 3:50PM
Henry A said...
A foreign car is a car that is sold in this country and the profits go to a foreign entity to further strengthen there currency and devalue ours...
8-09-2007 @ 8:11PM
tom owens said...
I say buy foreign everything, and then we will all be out of jobs and homes. I have had only one VW years (22) ago, and ever since then, I have driven GM, Ford, and Chrysler. Now I have 3 GM and would not change. I get 30-33 on the highway with a 04 Pontiac Grand Prix, and 30 also with a 94 Cad. Deville. It depends on your driving skills and habits. Yes, city driving is less, but I only go 7 miles at the most for everything. Buy American
8-09-2007 @ 9:54PM
LRB said...
I've had two LEMON Fords....and they keep recalling hundreds of thousands a year for some really DANGEROUS flaws;
Many, if not most Toyota's are MADE IN AMERICA; Camry, Corolla, Tacoma, Sienna, Tundra, perhaps more.
Many "American" cars are made in Canada, Australia, or Mexico.
Buy Quality...Toyota and Honda. Screw the rest of the heavy maintenance cars. Even Daimler dumped Chrysler due to poor quality control.
8-12-2007 @ 12:40PM
p.robado said...
I ONLY BUY AMERICAN CARS.OWNED FIVE OF THEM.ALL GOT 200K NO PROBLEM.ASIAN CARS WAY OVER RATED.UAW WORKERS DERSERVE THE HIGHEST WAGES.BECAUSE OF THEIR QUALITY.WOULD BUY AMERICAN CARS AT ANY PRICE.ALL AMERICANS SHOULD DO THE SAME. HAVE GREAT PRIDE IN U.S.A. SCREW IMPORTS.UNIONS GO FOR IT ALL MOST MONEY POSSIBLE.
8-24-2007 @ 12:35AM
Chase said...
We can make unparallel comparisons about "how much car you get for the money", but the reality is that a working american doesn't have time for the constant in and out of shop that US cars require. Sure every car, foreign and domestic needs MAINTENENCE, but that's not the same as REPAIR. Even with the difference in price for a comparable US models compared to Japan's, I don't want to be stuck on the side of the road with my baby in the back seat at night and I don't want to go out in the morning on my way to work and find my car won't start. I can be sure they won't care that I was trying to be loyal to detroit auto makers. It's the average day to day experience of reliability in our busy lives that have drove us to abandon the US automaker, the unreliability of their vehicles are the fault of first the automakers, then the unions.
The city of Detroit looks like a third world country and the citizens there still blame their woes on the "big three" automakers and I say that over the last thirty years, everytime their politicians convinced them they WON a union negotiation, they should have short sold US auto stocks like there was no tomorrow (cause there wasn't for them).
8-30-2007 @ 9:42AM
Rick said...
Some American cars have certainly improved markedly in recent years, particularly Chevrolet Impalas and many Buick models. Styling and interior quality (dashboard, etc)are often quite cheesy, however.
I have not purchased an American name-plate for years. My '97 Honda Accord wagon, 2001 CRV, and 99 Miata have been virtually problem free. The Hondas each have about 100m mi, the Miata about 55m. They are stylish in their own way, highly reliable, and just feel like quality products.
Alas, I cannot bring myself to buy American cars. The ones I usually rent feel cheap, the seats are often too soft, and the price differential (lower for American cars often) do not provide the incentive to buy.
Go with Honda, Toyota, Mazda, Nissan--you simply can't go wrong.
8-30-2007 @ 4:04PM
Pam said...
The three big American auto manufacturers deserve what they are getting. Ever heard of Tucker? Ever heard about how the 3 Bigs squelched
this entrepreneur and his innovative car because it would have taken them 11 years to restructure their equipment to compete ... should he and his car succeed?
Ever consider where American cars would be if this had not happened?