It's Over. "We" lost.

[Otto Puzzell]

Historic: Americans Buying More Imports Than Domestics

SOUTHFIELD, Mich. — New statistics compiled by R.L. Polk, which counts new-car registrations, show that foreign brands accounted for 53 percent of the retail automotive market in the first five months of 2006, while domestic automakers fell to 47.1 percent.

Domestic brands led foreign makes 51 percent to 49 percent over the same period last year.

The historic announcement signals a new low point for the Motor City. Domestic brands such as Chevrolet, Ford and Dodge still control more than half the U.S. auto market when fleet sales are added to the equation, but more profitable retail sales are considered the gold standard when it comes to figuring out which auto brands are most popular with consumers.

Domestic brands have been hurt by lower quality scores and a heavy dependence on large trucks and SUVs at a time of skyrocketing gas prices.

Flashback, 1955:

General Motors controlled over half of the automotive market in the United States. Was this the result of superior technology and managerial ability? In some cases, yes. It was also largely the result of the conglomeration of Chevrolet, Pontiac, Buick, Oldsmobile, and Cadillac—all formerly independent corporations. Unsatisfied with this hegemony, General Motors "back integrated" some of its most vital suppliers. General Motors also excluded other automaker's vehicles from the dealerships where its automobiles were sold, eliminating on-site competition.

That same year, General Motors was hauled before the U.S. Senate to explain how it had become the largest corporation in both the United States and the world and how its investors were able to enjoy twice the average manufacturing return on investment. The Senate wanted to know: "Wouldn't America be better off if General Motors reduced the price of a Chevrolet substantially to make it more affordable for the workingman?" G.M.'s executives responded that, if they reduced the price of a Chevy as much as they could, they would run their competitors out of business. "What's good for General Motors is good for the rest of America."

Question: if Washington had broken up GM, would the smaller, scrappier companies have been more competitive with Japan, Europe, etc? Or would Ford and Chrysler have driven them out of business, or bought them when they faltered?

[Ultra]

I think the question is, if Washington had stayed off of GM's back with endless regulatory costs, would GM have been more competitive from the '70's on?

[Jagman]

What is a "foriegn" car and what is a "domestic" car these days?

With global engineering and parts sourcing, I think it's getting harder and harder to say any car is domestic to their own country, with some small exceptions in China and India.

It's just the way of the world, and ultimately I think we're all better off for it. No one can say the incursion of imports wasn't good for the domestic industry, with new technologies, design ideas, fuel efficiency and saftey engineering the result of having to compete. I think they've been good for us and we've been good for them.

I don't lament the changes any more than I miss Dusenburg being in business, it's a non-issue, belonging in the past.

[roopull]

So I'm not repeating myself, here's a post that is very applicable to this subject:
Stinky Dinky Linky
It also echos Ultra's brief comment...



Echoing Jagman, we gotta keep in mind that Honda & Toyota are extremely international corporations, bearing little resemblance to a true importer.  Japan's auto industry makes more cars OUTSIDE of Japan than they do at home (a recent occurance.)  Honda is exporting AMERICAN MADE Acuras to China, as well as completely designing cars here.

[Boxer2500]

This is non-news to me. I've often said that Honda has done a lot more positive things for my hometown than the Big 2.5 ever have.

[Tifosi]

I think the question is, if Washington had stayed off of GM's back with endless regulatory costs, would GM have been more competitive from the '70's on?

Roger Smith and his cronies had a lot to do with it, too...



Dan