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

RE: American Carmakers Look for Loyalty
 

Amen to that! They need to make cars the way people want them. That means they need to put equal effort in all models and not just on the biggest models.

RE: American Carmakers Look for Loyalty
 

That kind of loyalty went out the window decades ago.... they need to make what people want, and make them so they last. I'm old enough to remember when 'Made in Japan' meant JUNK.... and watched the whole national mindset change. It isn't going to change back overnight, just like it didn't shift in favor of the imports instantaneously back in the 70's....

RE: American Carmakers Look for Loyalty
 

Well, I wouldn't say that modern domestic cars are less reliable than Japanese cars, but I think the problem is that they need to start matching their competition's offerings. The new Sebring should have the full H.O. version of the 3.5L if not the 4.0L. They need to get rid of all 4-speeds in their cars, they are outdated and make the engines less fuel efficient and feel weaker than their rivals. T

hey need to offer interiors that will blow away the competition and not be satisfied with hard plastics for Chrysler models because Chrysler is supposed to be a luxury division, not Plymouth or Eagle as it has become. They need to be less concerned about offering higher tech engine and offer engines that are just as powerful and relatively just as fuel efficient (ex. ditch the 2.7L for the 3.3L). They need to stop offering all of those incentives, they kill long-term sales.

They need to match their competition in fuel mileage in every category. The Focus and Cobalt should offer at least one model that can reach 40 mpg to be competitive with the Civic and Corolla. Dodge needs a real economy car because the Caliber is a combact, but it isn't an economy car.

They need to be the benchmarkers, not the followers. When they find the strive to be number one, they will be number one.

RE: American Carmakers Look for Loyalty
 

You are exactly right. I worked in the rental car industry in the early 90's and we had Nissan Maxima's and Toyota Camry's up against the Oldsmobile Cutlass and the Buick Century. Mid size cars like the Altima up against a Chevy Corsica. C'mon...hands down they looked better & were more comfortable. We are catching up but momentum takes a long time to recapture in a business where it takes several years to go from concept to production. I won't even mention trade inequities, labor difficulties, etc... I think the quality perception mentioned in the article is a valid perception. Foreign car makers like Toyota & Honda built a reputation of quality because they built quality. While the gap may be more narrow the momentum will remain until U.S. automakers have several years in a row of dominating them in that category. I think they can & will do that.

It will take time but I think DCX is a perfect example of a company that is headed the right direction. I sincerely hope Ford & GM right their ships as well. We will never return to 3-4 car companies though. I think you'll see the market split amongst at least 12-25 majors and then sprinkle in some high-end and specialty logos.

RE: American Carmakers Look for Loyalty
 

GM has come a long way from the Buick Century, Chevy Corsica, and Olds Cutlass Ciera. Believe me, I had a P.O.C. Olds Ciera before my Intrepid (I'm still filled with rage just hearing that car's name 5 years after I got rid of it[sm=icon_flaming.gif]). GM's most recent offerings at least compete against the Japanese. The G6 and Aura are very nice offerings. They are on par in terms of being updated. The interior is a lot better. The engines are both more fuel efficient, higher tech, and more powerful. They finally have something to offer than that awful 4T40-4T45.

Ford is still in trouble. The Fusion should have been made back in 1996 because it isn't competitive in today's world. Ford needs to ditch the Duratech. Why didn't Ford just buy Yamaha, instead of pointless purchases such as Jaguar, Land Rover, Volvo, Aston Martin, etc? They need a competitive V6 that is both powerful and fuel efficient (also reliability couldn't hurt). They also need to readjust the axle ratio for the I4 so then it can get 34 mpg instead of 31. Let Mazda be the division about low-speed axle ratios.

Dodge needs to quite using Gen. George B. McClellan strategies. They have made engines that are best in class, then they don't use them in the appropriate situations. They start to go full force, then for no reason they pull back. The 3.5L would have made the Stratus among the fastest in its class, but they didn't offer it. Then when they finally decide to offer the engine in the appropriate car, they pull back. Now that they are finally going to offer the 3.5L in the mid-sized models, they detune it to 232hp & 235 ft-lbs of tq. They need to be making them more powerful, not weaker. They need to stop using strategies and technology that doesn't work. They won't stop using the 2.7L despite the fact that it is undesireable in everyway (unreliable, inefficient, powerless). They won't use the appropriate transmission with the right engine. They need to stop detuning the minivan engines, they need to instead add VVT to them to catch up.

RE: American Carmakers Look for Loyalty
 

I am not loyal to any company. When it is time for me to buy a car, I consider what I want in a car, then research and then research some more. Then make my final judgement, then go wheel and deal at whatever I decide on. It all comes down to price, looks(which any more is tough because they all seem to copy from one another and look all the same to me.), warranties, and other small things.

RE: American Carmakers Look for Loyalty
 

while i have a great deal of appreciation for other vehicles, i look to dodge-related brands first.

before buying the stratus, looked at quite a few different cars..i looked at used BMWs and mercedes, celica GTS, eclipses...i was pretty much sold on the eclipse, but the salesman was a complete prick, and told me that i "wasnt a mitsubishi person"...so i bought the Stratus.

my list of "our next new car" consisted of:

dodge challenger
pontiac GTO
chrysler 300c srt8
mitsubishi evo

im pretty much hunting for performance...and while id like a stick, its not a must.

amanda doesnt like the evo x concept, and the GTO isnt made anymore...i couldnt forsee us buying a mustang, as ive dealt with fords way too much...i dont care for the new camaro, and the vette is more than id like to spend. also, i have a sales connection with DCX, so we will get a big discount from them, whereas we would pay full price for the vette...but if it came down to an LS2 vette and a challenger, for the same price, the ONLY thing preventing me from getting the vette is the lack of a back seat.

RE: American Carmakers Look for Loyalty
 

I knew which brand I wanted when I bought my Intrepid. The Olds Ciera had too many problems. I was burned out on GM. There was nothing they made that I really wanted besides a 98 or new Grand Prix but those were too expensive and I wanted to get away from GM (I thought for good considering we have had 5 out of 7 GM products were lemons).

The only Ford model I considered was a used Thunderbird, but I decided against it because I needed something that would do good in the snow plus the only model I would consider was the 5.0L model because I don't trust the modular engine and I hate the 3.8L after seeing and hearing about how they didn't last. There was a 1994 Ford Taurus SHO 5-speed for sale in my hometown. I didn't consider it at first until I learned that the owner was someone I knew kept very good care of it. By then, it was sold. If I had known sooner, my title name on DF would also by RLSH700 instead of 97 3.5 Intrepid since I would have that instead. I liked the Mustang but it wasn't comfortable. I'd get a T-Bird before I'd get a Mustang. I hated the Probe.

I didn't consider any Japanese cars since there wasn't anything that caught my eye other than the Eclipse which I would rather just have the Chrysler models since the closest Mitsubishi dealership was 44 miles away. This is what I was considering.

Dodge Avenger 2.0L I4 5-speed
Eagle Talon ESi 2.0L NA 5-speed
Eagle Vision TSi 3.5L V6

At first I really didn't want an Intrepid since I liked the Eagle division better, but they were too hard to find. I wasn't even considering the Intrepid until I found this one and I fell in love with it. I'm happy with my decision. I am loyal to Chrysler Group vehicles because my family has had good luck with their cars. I have some loyality to the Big Three; however, if they don't make a product that I like, I will shop elsewhere. So far, the only company that isn't making one product that I would buy is currently Ford.

RE: American Carmakers Look for Loyalty
 

[quote]ORIGINAL: Jeremiah 29:11

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


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."

American car manufacturers are definitely on the come-back trail. I personally will always recommend a domestic brand over an import. I'm not saying that American cars are superior to the Asian/European brands. I am saying that there are some real gems in the domestic stable.....you just gotta seek them out.

For instance, my wife's 96 Dodge Caravan Sport is nearing the end of its natural life. It has given us 330,000 almost problem free kilometers. Mind you, the transmission was changed, as were the front struts, alternator, and wheel bearings. Otherwise, its been a real joy to own. I attribute this longevity to frequent oil changes (5000 miles) and a regular maintenance schedule.

My wife has been eyeing the Chevrolet Equinox since its inception in 2005. However, I refused to buy it with its weak powerplant. GM has finally fixed all its problems with an interior redo for 2007 and the future powertrain upgrades for 2008. The Equinox Sport is the best itineration of the Equinox lineage. The problem for GM is that it took them 4 model years to correct the deficiencies.

Let's just say I am a very patient man.

I have been a domestic supporter ever since my father let his then 16 year old "hot blood" drive his 67 Buick Wildcat with its 445 c.i. engine. Boy, did that thing just love to lay rubber!!

I've always treated my car with TLC. regular maintenance, proper waxing, and babying when needed. My vehicles have given me lots of respect in return and a long life.

75 Chevrolet Monza 2+2 262 c.i. v8 4-speed manual
84 Pontiac 6000 STE 2.8 v6 4 speed automatic 605,000 km
93 Eagle Vision Tsi 3.5 v6 4 speed automatic 585,000 km
96 Dodge Caravan 3.3 v6 4 speed automatic 330,000 km (wife's car)
04 Pontiac Grand Prix GTP 3.8 SC v6 4 speed auto 173,000 km
05 Ford Mustang Pony 4.0 v6 5 speed automatic 56,000 km (son's car)

08 Dodge Challenger HEMI 5 speed automatic ( my future ride)

[color=#3300CC][size=4]I BLEED LOYALTY!