Sales of vehicles from Detroit's Big Three have been weak and getting weaker lately. But the bad news is even worse when you look at just basic passenger cars. According to a piece in BusinessWeek (appropriately titled "Car Sick"), American products accounted for less than a third of all car sales in July, a new low for the industry.In July, imports grabbed 68% of passenger car sales in the U.S., leaving General Motors (NYSE: GM), Ford (NYSE: F) and Chrysler with only 32%. And some of that meager number include fleet sales to rental agencies, which produce very slim profits. Factoring those out, BusinessWeek estimates that Detroit's share of the American passenger car market is about 25%.
One stunning illustration of just how bad things are: in July, GM's entire Buick division sold just 6,000 cars. Compare that to just one Toyota model, the Camry, which sold over 42,000 units in the same period. And there are roughly 2,700 Buick dealers, about twice the Toyota figure, which means that on average each Buick dealer sold 2.2 cars during the month. You have to wonder how they manage to stay open.
It's no secret how this situation came about. The Big Three bet their collective house on trucks and SUVs in the 1990s, not cars, and now they are paying the price of that unwise gamble. Despite the arrival of decent (though hardly stellar) cars like the Chevy Malibu and the Ford Focus, American passenger cars have a long way to go before they can once again sustain the American auto industry.



Reader Comments (Page 1 of 1)
9-25-2008 @ 12:57AM
winslow said...
The US government needs to enact a huge tax incentive for purchasing a new, high mpg auto, while increasing taxes on any auto getting less than 20-25 mpg. The US auto companies need to gear up to the future and produce autos capable of 40-45 mpg. This is one cycle that is not repeating itself infinatum. Both the US as a society and as a business does not have the fortitude for such a drastic change.
9-02-2008 @ 6:59PM
Steve said...
I think it is a shame that Americans continue to be less and less loyal to our country and one another. When times get tough we (Americans), need to hunker down and support our workers and our American companies. I get sick when I see a foreign car on the road. I will only buy Ford or Chevy no matter the price or the gas mileage.
9-02-2008 @ 8:48PM
PandaBear said...
Nonsense. How come these type of "support the country" and US government incentive talk only show up in auto industry related blog posts anywhere around? I am sick of these paid UAW posts that pretend to be regular readers.
9-02-2008 @ 11:10PM
scott said...
It's too bad the big three didn't see the signs comming. Industralizing 3rd world nations sell more cars because more people have bigger incomes. Living in Thailand now seven years, I've seen the shift from motocycles to cars.
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9-03-2008 @ 1:43AM
alex said...
why should any body buy an american car..they are all garbage especially
Fords fix or repair daily after 3 years. FORD is garbage just like george garbage bush
9-03-2008 @ 2:36AM
Joe said...
Well who knows if you buy american GM might sue you in a few years to get back their employee discount, thats america for you. Yes I know they are only doing it to employees that took advantage of it, I'm just saying its always a possibility they might do it.
9-04-2008 @ 1:49PM
CR said...
Regarding:
"The US government needs to enact a huge tax incentive for purchasing a new, high mpg auto"
Just tax gasoline. Just as you've seen demand shift to small cars in the aftermath of the recent oil price spikes, you'll see demand stay with small cars if the federal gas tax is increased. You don't need a NEW tax to induce this behavior. Europe has used gas taxes for decades now to induce people to purchase small cars. It works and it's simple.
9-07-2008 @ 12:19PM
MANNY D said...
Seeing those toyota sales #'s show the misperceptions today by the us consumer??Using the BUICK example, as in your comments, illustrate the problems facing us carmakers today!!More MYTH, thanTRUTH,the toyota CAMRY is not a better automobile than the current BUICK models!!THE us consumer, SUFFERS FROM A SERIOUS CASE OF TUNNEL-VISION, when they buy the japanese product withgiving abuick, OR OTHER AMERICAN PRODUCTS, A FAIR SHOT AT EARNING THEIR LOYALTY??Today the domestic auto makers, need to educate the us car buying public!!truth is, there is very little difference in todays cars, be they domestic or asian $$ for $$ model for model!!us carmakers continue to suffer from sins of the past, which has no relevance to todays products!!! MANNY D BAY SHORE NY
10-17-2008 @ 1:42PM
just me said...
This are all good comments. However we must look at the big picture, we all know well at least most of us know that gas prices are going up, just part of inflation. The American car manufactures were stubborn yes they fail to foresee the on your face future, the average Joe cannot afford to drive a gas hog any longer + as some claim the American car manufacturers have made big improvements but still lag far behind imports any and all imports the finish of the American cars leaves a lot to be desired also safety and reliability are big factors, companies like JD power have given the American car manufactures thumps up, but those are only surveys, cars are big ticket items that should last many years, when I think of reliability of a car I think of engine, transmission, alternators, fuel injections body parts, paint job,interior and other major components and as they say they just fall apart. In other words the domestic car buying public been given the shaft. But the joke was on the American car manufactures.