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Old Jan 11, 2007 | 07:15 PM
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Jeremiah 29:11
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Default American Carmakers Look for Loyalty

In todays global economy, you have to earn loyalty. American companies have to make good products that want to be bought
and not expect Americans to buy it because they are loyal.

The Challenger beckons to be bought.



American Carmakers Look for Loyalty


By Marv Balousek
The Wisconsin State Journal
01/11/07 4:00 AM PT

Support for buying American cars increases with age, but six in 10 of those 30 or younger said they were open to buying foreign cars or American cars. That suggests they may be receptive to efforts of American automakers to win them over. Eighty-five percent of foreign-car owners said they were very satisfied with their cars, while eight in 10 owners of American cars were very satisfied.


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Americans have a bias against cars made by U.S. automakers, but a national poll also found flickers of loyalty that could offer hope for the struggling industry.

Those questioned in the survey, conducted by AP-AOL Autos, said they have more faith in Japanese-made cars than in vehicles produced by Detroit's Big Three: General Motors (NYSE: GM) , Ford Motor (NYSE: F) and the Chrysler Group.


Perception Problem
The problem for Detroit is changing perceptions that often don't match reality.

"There is certainly a terrible perception problem among the majority of consumers," said Pat Baxter, president of Kayser Ford in Madison, Wis. "They do blindly believe that import cars are of higher quality. The gap is so small it's insignificant."

Baxter said the Madison market probably tilts more toward import cars than elsewhere. "The [domestic] manufacturers have been reluctant to take on imports head-to-head in advertising," he said. "I think they're going to be taking the gloves off soon."

What else is the American auto industry doing to reclaim support? The industry is returning to the types of autos that gave it a sense of "swagger and attitude in the 1960s," said John Wolkonowicz, an auto industry analyst. Many of those cars will be on display in Detroit over the next two weeks during the North American International Auto Show.

With some Hondas now made in the United States and domestic cars manufactured in Canada or Mexico, the difference between imported and domestic cars has gotten fuzzy, said Dave Kreuser, general sales manager at Zimbrick of Madison, which sells both import and domestic models.

Media Bias
"Domestics are attacking [the market perception] more and more," he said. "GM has more vehicles that average more than 30 miles per gallon than any manufacturer. It's just a matter of what you produce and how you advertise and market it."

Baxter said he believes media bias plays a role in public perception about American cars. While problems faced by domestic automakers are reported in detail, he said, little coverage was given to a class action lawsuit settled recently by Toyota over engine oil sludge problems that affected millions of customers.

Popularity of domestic or import cars is cyclical, suggested Tom Thorstad of Thorstad Chevrolet of Madison.

"We're starting to see a change again," he said. "The import reliability is slipping."

In the poll, 44 percent said Japan makes the best autos, 29 percent said the United States and 15 percent said Germany. Asked what car manufacturer makes the best autos, 25 percent said Toyota, 21 percent said General Motors and 17 percent said Honda.

At the same time, several poll findings could offer encouragement for U.S. automakers.

Only 17 percent of current or potential car owners in the poll say they prefer to buy foreign cars. Also, 39 percent said they prefer to buy American cars and 44 percent s
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