Asian Automakers Expand Market; Chrysler Grabs G.M. And Ford Share

[MNdudeswitz]

Asian Automakers Expand Market; Chrysler Grabs G.M. And Ford Share
By Rozzi, Al.
Published: February 14, 2006

(Dearborn, MI) BlueOvalNews.com - Auto analysts site Asian automakers as the sole beneficiary of General Motors and Ford Motor Company’s market share attrition in recent years and while focusing only on market share standings, it is possible to misinterpret some of the market changes that have taken place. However, consideration must be given to a couple additional and significant structural transformations over the past 15 years, each of which may serve to give a fresh interpretation of cause and effect regarding changes.

Share swings among automakers have been the focal point of attention, yet perhaps a more realistic assessment of the U.S. market requires looking at both volume growth as well as the success of the Chrysler side of DaimlerChrysler, relative to the bigger U.S. rivals over the past 15 years.

The valid winner in the grab for lost sales at G.M. and Ford is in fact the Chrysler side of DaimlerChrysler. While combined sales of the three have remained steady over the 15 year period, Chrysler has grown by 606,917 units at the same time as G.M. and Ford have slipped a mutual 643,238, which could be interpreted as a shift to the Chrysler group.

Furthermore, when comparing the share of collective G.M., Ford and Chrysler sales, Chrysler has taken over 6 percentage points of share from its two rivals. For example, in 1990 G.M. had 49.6% of the combined sales among the three, while in 2005 its share was 4.6% lower at 45.0%. Chrysler, conversely, has grown from 17.1% in 1990 to 23.2% today when comparing only the three automakers’ sales.


http://www.blueovalnews.com/index.ph...icleid=161&s=&

P.S. There are a lot of tables which are interesting to look at

[runningshoes]

interesting way to look at the numbers. i'm not sure that i agree with the conclusion tho... i mean, i agree that one could derive that conclusion from teh numbers. i just don't necessarily think that it is what the numbers mean.

the conclusion presented makes the following claims almost necessary:

1) there are domestic buyers and import buyers. domestic buyers comprise the domestic market share and import buyers comprise the import buyers share.

2) domestic buyers were neither created nor destroyed. they went on to buy other domestic cars, perhaps from a different maker, but not from a different country.

3) import buyers were created. the increase of import car sales is a result of new import buyers, not from former domestic buyers being converted to import buyers.

i don't think that 2) and 3) are correct in the least.

the correct conclusions, in my mind are:

a) the overall market grew.
b) more domestic buyers were converted to import buyers than the other way around.
c) new buyers bought both domestic and import, but more new buyers bought domestic
d) the net result is that a greater percentage of sales went to import brands than domestics, and the reason the same number of overall sales were made is that the replacement rate for domestic buyers was about the same as the rate at which domestic buyers were lost.
e) that the replacement rate matched the loss rate of domestic buyers is likely a statistical oddity - an interesting sidenote that has no real relevance.

[member12]

I think there are a lot of GM people with Toyotas in the driveway next to an F150 or Impala or something.

GM and ford need to take a look at Chrysler. Their products are for the most part not that good (magnum and charger excluded), but they are appealing, and look good on paper.

[Chevy Ryan]

You can't fairly compare Chrysler's 2005 sales to 1990. 1990 was basically their lowest point in company history (or early 80's, depending who you ask). What did they have to sell in 1990? 18-year old pickups, 6-year old minivans, K-cars and AMC-designed Jeeps. No LH cars, no Grand Cherokee, no Viper, no new Ram. However, if you compare 1999 sales to 2005, where the lineups are more comparable, they've lost over 300,000 sales. Also, they only show Ford as losing 163,000 since 1990. But that doesn't tell the whole story. Ford has lost more than 1,000,000 since 2000. That's far bleaker than GM, especially considering Ford is smaller to begin with.

[kenman923]

The 300s are a runaway hit, so I can see how Ford and GM can lose market share with Ford's stodgy Crown Vic and GM's rental fleet cars.

[Geotpf]

What has happened overall (not just from the period 1990-2005, but from, say, 1950-2005) is:

1. The market has grown significantly, and continues to do so.
2. The two biggest companies (namely, GM and Ford) have dropped steadily in market share, and, at least lately, in units sold.
3. The third largest company (Chrysler) has been more or less stable. They have had good times followed by bad times followed by good times follow by bad times, but it's a cycle, not a trend heading in either direction, in terms of market share (in terms of units sold, it's heading upwards as the market has). Check older market share stats from the 1980's, 1970's, 1960's, 1950's, maybe earlier. Chrysler has had between 10% and 15% of the market since FOREVER.
4. The foreign companies, lead by the Asian brands, which in turn are lead by Toyota, Honda, and recently, Hyundai, have been growing very fast. I think the growth in non-Asian (European) brands has stopped or reversed recently, though.

[SUPERBADD75]

there is no clear-cut conclusion to be made just by looking at numbers. there may have been people that fled Ford products for Toyotas, and at the same time there could be people that traded their Hondas in on a new 300. just judging something by a bunch of numbers is impossible. numbers can't tell the whole story.

[56 Starchief]

seems to be a fair assessment

[CobaltSScrazy]

there is too many assumptions for this to be legit. Although it does point us TOWARDS the right direction of where to look to make an assessment.

[Ming]

Chrysler often understands my needs better than GM North America, so I'm not surprised to see this market share change. The Caliber, Magnum, and the Hornet concept all appeal to my fondess for modern powertrains like CVT and all aluminum DOHC engines and wagon/hatch utility, while GM prepares to cancel one of its few wagons, the Maxx, and its HHR has a 4-speed and not so impressive fuel economy.

They also understand Import intenders taste for sharp edged "techy" (but not Azteky) styling (think Opel Astra), which in GM's brands is only abundant in Cadillac and Saturn models for the most part, with Chevy and others more prone towards roundish 90's styled cars like the Cobalt and LaCrosse. Keep in mind I'm talking GM in America - in Europe and even now Korea they seem to get it.

[lilredcrvtt]

As I suspected, the market has grown, and the domestics have not gained in this growth. Good article!

[pagemaster]

A lot of the increase in sales by Chrysler has come from the redesign of the Ram. It was selling nearly as well back in the 90's as it is today.

[Whirling_Dervish]

Originally Posted by Ming

Chrysler often understands my needs better than GM North America, so I'm not surprised to see this market share change. The Caliber, Magnum, and the Hornet concept all appeal to my fondess for modern powertrains like CVT and all aluminum DOHC engines and wagon/hatch utility, while GM prepares to cancel one of its few wagons, the Maxx, and its HHR has a 4-speed and not so impressive fuel economy.

They also understand Import intenders taste for sharp edged "techy" (but not Azteky) styling (think Opel Astra), which in GM's brands is only abundant in Cadillac and Saturn models for the most part, with Chevy and others more prone towards roundish 90's styled cars like the Cobalt and LaCrosse. Keep in mind I'm talking GM in America - in Europe and even now Korea they seem to get it.

The hot companies tend to be the ones giving the people what they want, and not dictating to the people what they want. GM will learn this one day.

[asim]

Wow...Chrysler is doing better than what I thought...

[Bravada]

Originally Posted by Ming

Keep in mind I'm talking GM in America - in (...) Korea they seem to get it.

What exact GM DAT product do you mean? Is there any "sharp" GM DAT in Korea not available in the US? The list of GM DAT products not available in the US comprises of 1) Matiz (yeah, sharp...) 2) Tacuma/Rezzo (even more sharp) and 3) Captiva (not actually out yet, but it's pregnant, so it's surely rounded).