First time in 102 years: Big 3 lose majority market share to imports

[1931Chevy]

http://www.autoblog.com/2007/08/01/f...-share-to-imp/

var digg_url = 'http://www.digg.com/offbeat_news/First_time_in_102_YEARS_Ford_GM_and_Chrysler_lose_ majority_market_share'; As we reported in our By the Numbers post earlier today, last month nearly every automaker, import and domestics alike, had a tough time selling cars. The domestics, including General Motors, Ford Motor Co. and the Chrysler Group., had it tougher, however, and for the first time in the automotive industry's 102-year history, the Big 3's market share fell below that of the imported brands combined. The official tally according to Automotive News was 629,569 units sold by the Big 3 and 679,523 units sold by the imports. That works out to a 48.6% market share for the domestics and a 51.4% share for the imports.

Shall we all cry in our travel mugs that our beloved automakers from downtown Detroit, Dearborn and Auburn Hills have lost their leading role in the U.S. market? Hardly, we say. All three domestic heavyweights have realized that bouncing back from their financial doldrums requires ditching their excess and paring down to the essentials. With fleet sales drastically reduced and resources diverted to programs that will bear fruit a few years out, we all know their sales are going to fall, in some cases drastically. Nevertheless, their loss in size and sales will allow each to focus on product more in an environment where what's on the sales floor is all that matters.

And don't fret, the Big 3 still retain majority market share in the U.S. year-to-date. This was just one bad month of sales. One really bad month.

[Perian]

Ok, it's official.

Let's all move on and work to get the needle back where it belongs.

[paul8488]

It may only be one month and one measurable but it's sad to see nonetheless. Profit and overall domestic industry health is the real concern... but there's something sadly symbolic about losing half of the market to foreign nameplates.

[jkennedy293]

It will swing back, it is just going to take some time.

[1487]

there are 7 major import manufacturers and 3 major domestic manufacturers. This should be no surprise. There is no way for the Big 3 to remain dominant in such a competitive market.

[camaro_freak]

Originally Posted by 1487

there are 7 major import manufacturers and 3 major domestic manufacturers. This should be no surprise. There is no way for the Big 3 to remain dominant in such a competitive market.

They could have easily stayed competitive.

Domestics had a golden opportunity to clean house when each import came to town (especially those from Asia markets), but chose to do nothing but sit on their past accomplishments and continue to sell what they were comfortable making: big boat, cushy riding behemoths

[Sinner]

Originally Posted by camaro_freak

They could have easily stayed competitive.

Domestics had a golden opportunity to clean house when each import came to town (especially those from Asia markets), but chose to do nothing but sit on their past accomplishments and continue to sell what they were comfortable making: big boat, cushy riding behemoths

The path you speak of leads to mergers of the big 3 and anti-trust lawsuits.

[boydrive]

GM's turn around plan is to cut fleet and rental sales, reduce incentives, increase resale value, increase quality and must importantly incease retail sales. GUESS WHAT NEGATIVE GM FANS THEY ARE DOING ALL OF THESE, so it looks like to me their plan is working. It is a lot easier to destroy your company, then to bring it back. Hang in there!

[CobaltSScrazy]

hate all this negative news, but hopefully 10 years out the reverse becomes true!

CobaltSScrazy

moving along...

[ponchoman49]

Don't worry, Toyota is making so many mistakes that there fall from the top won't be long lived.

[chevygurl72]

is it just the car sales or the suv and pick-ups too.?

[Butz]

Prepare the tombstones, some managers will be buried, alive!

I can't believe it, how? How were things allowed to get this bad?

[JVal14]

Everyone is making such a big deal about this, but it's amazing that it's taken this long for it to happen. How many foreign brands are sold in the U.S. now? There are only three American autogroups yet I can think of twice as many foreign makers that sell in the U.S. off the top of my head. And more and more imported brands are coming to the states all the time. Everyone wants a piece of the American pie, so it's only logical that everyone's piece will shrink.

Edit:
Toyota
Honda
Volkswagen
Porsche
Nissan
BMW
Daimler-Benz (or whatever they are now)
Hyundai
Fiat (soon)

That's not even counting the low-volume elites like Ferrari, Aston Martin and Lotus. Think of all the individual brands within all those companies. I give U.S. auto credit for holding on for this long.

[Chaz_23]

No surprise. And if you look at retail sales exclusively it would be a bloodbath. Americans are a shameful bunch.

[markusername]

Originally Posted by Chaz_23

No surprise. And if you look at retail sales exclusively it would be a bloodbath. Americans are a shameful bunch.

Exactly - people on this board don't realize that if you only count REAL sales (i.e. to end consumers), then the big 3 lost the battle a long time ago.

The number here include fleets, employee sales, supplier sales, government sales, family sales, etc... The real number that matters is RETAIL sales to end consumers. That number would be really ugly. My guess would be that imports account for 75% of retail sales of cars.

No quick solution here. It took Toyota/Honda decades to establish themselves and build thier reputation. It will take GM/Ford at least a decade of producing superior cars to regain what they had. Only after people have driven the Aura for 7 or 8 years and it performed as well as an Accord will people start giving GM another chance. One year, will not do it. A 90 day initial quality showing will not do it.