Topic: Big 3 sales share at all-time low

[articsteve]

Apr 02, 2008

The Big Three North American-based automakers slipped to their lowest share of the market in Canadian history last month.

Sales of General Motors, Ford and Chrysler vehicles dropped to 47.7 per cent during March while business for offshore-based producers including Japanese giants Toyota and Honda climbed to 52.3 per cent, manufacturers revealed yesterday.

March's low point for the Big Three shows their difficulty in reversing a downtrend over the past generation, despite their improvements in quality and design.

Analyst Dennis DesRosiers said he is surprised the trend has not changed, but he added the offshore companies are now countering the Big Three's better quality with lower prices.

In the first three months of this year, the Big Three's market share fell to 50.6 per cent from almost 53 per cent in the same 2007 period, while the offshore companies increased their level to 49.4 per cent from 47.1 per cent.

Meanwhile, over-all sales and leases of new cars and light trucks remained almost flat in March from the corresponding 2007 period. Business dipped less than 800 vehicles or 0.5 per cent to 150,023 which is still the second best March on record.

Despite the flat month, sales for the first quarter climbed 7.3 per cent to 363,805 vehicles because of an extremely strong January and a record February.

The Big Three experienced their lowest level in market share primarily because of a poor month at GM, the industry leader, and a strong performance by Toyota. GM sales plunged 16.4 per cent or almost 6,000 vehicles to 30,208 in March.

Marc Comeau, GM's vice-president of sales, said his company is "holding its own," with an overall increase in the first quarter.

Chrysler Canada posted its 20th consecutive month of gains from the same period a year earlier as March sales improved 2.8 per cent to 21,602.

Toyota Canada said its sales, including the Lexus luxury brand, shot up to a March record after it became the first major automaker to reduce suggested retail prices on many models because of the higher value of the Canadian dollar.

Fuelled by business for the new Corolla compact and Matrix crossover vehicles, Toyota's sales jumped 13.1 per cent to 20,649 in March. It also sold more cars in Canada than GM.
Ford Motor Co. of Canada Ltd. said its sales dipped 1.3 per cent to 20,083 primarily because of decline in car volumes.

Sales at Honda Canada Inc., including the Acura luxury brand, climbed 7.4 per cent to 16,285.

Among other players, Mazda, Nissan and Hyundai reported increases in March.

In the U.S., where Canada exports most of its auto production, sales tumbled 12 per cent to 1.36 million vehicles in March. Chrysler's sales plunged almost 20 per cent; GM's volumes dropped 18.7 per cent; Ford's business fell 14.1 per cent and Toyota's deliveries slid 10.3 per cent.

The US market is about $1.00 per gallon behind us.  When Americans get to our current price position me thinks the situation for the big 3 will mirror what's occurring here as Americans will final accept their fates; smallish 4 cylinder vehicles that last beyond warranty.

As for the domestics, baring some technological miracle .... put a fork into them, they're done.

Flame shield activated. 

[mwqa]

Suzuki in the States is also having problems. I hear that their CEO, Rick Suzuki has resigned, to take responsibility for bad sales and earnings.

So it isn't just the big three.

[articsteve]

Perhaps it's because Suzuki has the highest warranty claim rate of all asian imports.

[mwqa]

Perhaps it's because Suzuki has the highest warranty claim rate of all asian imports.

Maybe ... but they also have the longest warantee (in the US):

A fully transferable, zero-dollar deductible 100,000-mile/7-year powertrain limited warranty on all new vehicles sold after August 1, 2002.

Versus Toyota US, for example:

Basic 36 months/36,000 miles (all components other than normal wear and maintenance items). 
Powertrain 60 months/60,000 miles (engine, transmission/transaxle, front-wheel drive, rear-wheel drive, seatbelts and airbags).

[carcrazy]

Perhaps it's because Suzuki has the highest warranty claim rate of all asian imports.

Maybe ... but they also have the longest warantee (in the US):

A fully transferable, zero-dollar deductible 100,000-mile/7-year powertrain limited warranty on all new vehicles sold after August 1, 2002.

Versus Toyota US, for example:

Basic 36 months/36,000 miles (all components other than normal wear and maintenance items). 
Powertrain 60 months/60,000 miles (engine, transmission/transaxle, front-wheel drive, rear-wheel drive, seatbelts and airbags).

Not really. Mitsubishi has 5 years bumper-to-bumper and 10 years for the powertrain.

[sailor723]

Hyundai in the US has 5yr/60,000 mile new car warranty and 10/100 powertrain

[drederick]

The US market is about $1.00 per gallon behind us.  When Americans get to our current price position me thinks the situation for the big 3 will mirror what's occurring here as Americans will final accept their fates; smallish 4 cylinder vehicles that last beyond warranty.

As for the domestics, baring some technological miracle .... put a fork into them, they're done.

Flame shield activated. 

So just how are Toyota domestic market sales, anyway? oh thats right - they suck:
http://ap.google.com/article/ALeqM5io7YhK5on4LOfRGiSOvC3gHX82pwD8VKB51G0
"Toyota, which controls nearly half of the Japanese market, is seeing its domestic sales fall, selling 2.26 million vehicles in Japan last year, down 4 percent from the previous year."

ha ha ha interesting

What is REALLY funny is how GM is right there for #1 world wide sales yet it doesn't even really sell cars in what was the 2nd largest car market in the world (japan because you have proven time and time again you don't know anything).

All GM needs to do is to get more efficient and the profits will be there.

Same with Ford and Chrysler.

None of them are going anywhere.

How are YOUR Toyota sales, anyway? ha ha ha

[Leviathan]

As for the domestics, baring some technological miracle .... put a fork into them, they're done.

 

[initial_D]

GM is doing good in China. Some people in China just won't buy Japanese and Korean brand cars.

[articsteve]

How are YOUR Toyota sales, anyway? ha ha ha

Fantastic 

The Big Three experienced their lowest level in market share primarily because of a poor month at GM, the industry leader, and a strong performance by Toyota. GM sales plunged 16.4 per cent or almost 6,000 vehicles to 30,208 in March.

[EV Dan]

They will be screwed even more and very soon. If the 1.40 gas price prediction comes true it will be VERY difficult to convince anybody most of us to buy a HEMI no matter how cool it may be. People will read through Consumer reports and find there civics, corollas and yarises (yarii?) taking top fuel efficiency ranks. For those driving 20k+ a year consumption will be the make or brake the deal factor. The rest who cannot pay 15k for a corolla will get a 10k kia/hyundai.
It was predicted years ago but all the big 3 did was making big patriotic truck commercials hoping for the Arctic to melt soon and get more oil. Harsh, but serves them right.

[Mitlov]

They will be screwed even more and very soon. If the 1.40 gas price prediction comes true it will be VERY difficult to convince anybody most of us to buy a TUNDRA or IS-F no matter how cool it may be.

Fixed.  Gas prices are making ALL companies scramble.  Nobody selling cars in North America was really prepared for the spike in gas prices we've seen over the last few years.

People will read through Consumer reports and find there civics, corollas and yarises (yarii?) taking top fuel efficiency ranks. For those driving 20k+ a year consumption will be the make or brake the deal factor. The rest who cannot pay 15k for a corolla will get a 10k kia/hyundai.

The new Ford Focus sedan only got 1 mpg worse than the Scion xD (a Toyota-made subcompact here in the States) in a recent Car & Driver shootout.  The Saturn Astra only got 2 mpg worse than the xD subcompact.  And according to EPA ratings, the Astra only gets 1.5 mpg worse than the Matrix.  Pretty inconsequential difference.

Interesting how the "your compacts get crappy fuel economy" attacks are rarely aimed at the real guzzlers in the compact non-luxury segment: VW, Subaru, and Mitsubishi.  When people attack the middle-of-the-pack (at worst) Astra and Focus for their fuel economy, while ignoring the Rabbit and the Lancer, it makes me question the motive of the attack.

[EV Dan]

Nothing "accelerates social life" down the pipes as quick as Focus  It only gets almost as good mileage as xD because the latter is as square as a shoe box can be.

[Wolfe]

As for the domestics, baring some technological miracle .... put a fork into them, they're done.

Even if they can deliver on the technological miracle that doesn't mean they'll be able to make money from it.

But even the plug-ins Lutz is championing could face resistance in the marketplace because of price. GM's Chevy Volt, first unveiled as a concept in January, 2007, can go 40 to 50 miles on a single charge of a lithium ion battery, and then a gas motor kicks in to move the car and recharge the battery at once. The company once targeted $30,000 as the price for a Chevy Volt. But the cost of developing the technology is making that an unreachable dream. Lutz now figures a more realistic price for the Volt would be about $48,000.

http://www.msnbc.msn.com/id/23793222/


GM needs to build cars and sell them for more than they cost to build. They've revised the projected costs of the Volt upwards several times now and the car is still years away from production. Even if the cost doesn't continue to escalate beyond $48K each, does anyone seriously think that GM will be able to sell a less spacious Chevy Cobalt based car for over $50 000?

All GM needs to do is to get more efficient and the profits will be there.

Same with Ford and Chrysler.

None of them are going anywhere.

I agree with your last statement, however, my meaning is rather different from yours.


I'm no manufacturer fanboy I've simply read through GM's financial statements from the last few years. The numbers are sobering. GM was in bad financial shape before the subprime financial crisis hit and car sales started to slow. Their new CFO recently reiterated that GM projects new car sales for 2008 in North America to be over 16million. Ford projects just over 15million and JD Power have lowered their projections to 14.8million. Everyone except GM is expecting the market for new cars to shrink this year and most are revising their expectations downwards.

They will be screwed even more and very soon. If the 1.40 gas price prediction comes true it will be VERY difficult to convince anybody most of us to buy a TUNDRA or IS-F no matter how cool it may be.

Fixed.  Gas prices are making ALL companies scramble.  Nobody selling cars in North America was really prepared for the spike in gas prices we've seen over the last few years.

high fuel prices and other tough market conditions are the same for all auto-manufacturers. Tough times hurt the weakest companies the most.

[EV Dan]

I'm not sure if it is a coincidence but I dont notice as much traffic on 401 lately. Maybe people started to car pool to work.

[Cord]

It only gets almost as good mileage as xD because the latter is as square as a shoe box can be.

You sure you're not thinking of an xB?

[Mitlov]

It only gets almost as good mileage as xD because the latter is as square as a shoe box can be.

You sure you're not thinking of an xB?

Yeah, the xB is the box.  The xD, formerly known as the xA, is Toyota's answer to the Honda Fit down here (we don't have a Yaris five-door).

xB:



xD:

[Wetson]

Speaking of fuel efficiency.  My accountant did my taxes and I only spent $1800 on fuel in 2007.  I'm loving the economy of the 4 banger in my Accord sedan.  Hopefully when the time is right and I get the TL I won't notice too much of a difference in fuel economy.

I think the Big 3 will be around for some time.  (Well maybe not all of Ford).   That's a biased statement since I think most Ford vehicles are butt ugly. (Excluding trucks and Mustang).  One of the things that is killing the domestics are the financial drain that unions are puting on the companies .... oh..... and we can't forget about stigma from poorer quality in previous years.  This thread isn't about unions though... they do have their place and purpose.

[drederick]

I agree with your last statement, however, my meaning is rather different from yours.


I'm no manufacturer fanboy I've simply read through GM's financial statements from the last few years. The numbers are sobering. GM was in bad financial shape before the subprime financial crisis hit and car sales started to slow. Their new CFO recently reiterated that GM projects new car sales for 2008 in North America to be over 16million. Ford projects just over 15million and JD Power have lowered their projections to 14.8million. Everyone except GM is expecting the market for new cars to shrink this year and most are revising their expectations downwards.

Last few years? GM has been in trouble for at least the last 10 years. The one thing that could have sank the ship was a long lasting UAW strike.

Didn't happen.

They got the deal that was as good as they could get and no strike. The no strike is the most important thing that came out of this.

GM isn't going anywhere. Same with Ford and Chrysler - no matter what their 'predictions' are!

[drederick]

They will be screwed even more and very soon. If the 1.40 gas price prediction comes true it will be VERY difficult to convince anybody most of us to buy a HEMI no matter how cool it may be. People will read through Consumer reports and find there civics, corollas and yarises (yarii?) taking top fuel efficiency ranks. For those driving 20k+ a year consumption will be the make or brake the deal factor. The rest who cannot pay 15k for a corolla will get a 10k kia/hyundai.
It was predicted years ago but all the big 3 did was making big patriotic truck commercials hoping for the Arctic to melt soon and get more oil. Harsh, but serves them right.

Screwed even more soon? your refering to GM,Ford and Chrysler, right? But not Toyota?

Toyota makes lots of 'large' fuel sucking vehicles as well, remember. Of course their sales will not be affected by higher gas prices.... right. Just reread the Highlander 'hybrid' LOL review from this web site

Everyone is getting better at fuel economy.

Just remember there are alot of people out there who don't care about gas prices and will always drive whatever they so choose.