- Jan 7, 2002
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At Southfield Chrysler Jeep, car dealer Dan Frost knew he had a winner when customers started turning in Toyota and Lexus vehicles to drive off in a Chrysler 300 sedan. "We very seldom ever see those trade-ins," he said.
But Chrysler counts two Japanese brands among the 10 most common trade-ins for the boldly styled, rear-wheel-drive 300.
As U.S. automakers struggle to fend off foreign rivals and boost earnings, they're striving to duplicate the success of the 300 to win back import drivers and reverse some ominous trends.
Detroit's carmakers are not only losing sales to Asian rivals, they are also losing choice customers as U.S. consumers increasingly separate into two camps: import buyers and loyalists to domestic brands.
Overall, buyers of domestic-brand vehicles tend to be older, less educated and less wealthy than owners of import brands. Over the past 10 years, the gap in income and education has widened, with the most desirable customers flocking to foreign brands.
"The income is a worrying sign," said David Ensing, director of automotive research at St. Louis-based Maritz Inc. "If you're not keeping up with other manufacturers, it probably means some of your more profitable customers are going away."
Most of those customers never look back, according to data showing that import buyers may switch brands but rarely return to domestic nameplates.
"A lot of people have gone to the Japanese, and it'll be tough for the domestics to get them back," said George Peterson, president of consulting firm Auto Pacific.
"Consumers were burned in the late 1970s and 1980s, and this is still hurting domestic manufacturers," he said. "They deserve to get (people) back, but it'll be tough."
This year, General Motors Corp. and Ford Motor Co. are rolling out new models designed to win back customers from foreign brands, which now hold 40 percent of the market. With the launch this month of the Pontiac Solstice, starting at $19,995, GM scored a conquest with its first sale, to Shelly and Clark Brinton.
The Meridian, Idaho, couple also own a Honda Accord, a Mazda Protege and a GMC Yukon Denali truck. "I've always wanted a little roadster. We looked at the (Nissan) 350Z, but when I saw the Solstice, I fell in love with it. The look, the price -- everything about it," said Shelly Brinton.
With the new Ford Fusion, a small car scheduled to hit showrooms in mid-September, Ford wants to hang on to owners of the Ford Focus compact as they move up to the midsize car segment. The top sellers in that category are the Toyota Camry and Honda Accord.
Ford is touting the Fusion's sharp driving dynamics and snappy styling, including two-toned stitching on the leather seats, to appeal to car buyers tempted by import brands. "We understand we're losing some customers today," said Dan Geist, marketing manager for the Fusion.
Buying American
The Chrysler 300 sedan, one of Detroit's biggest hits in years, helped DaimlerChrysler AG's Chrysler Group expand its customer base and market share by attracting import buyers. Some 16 percent of the trade-ins for the 300 are foreign nameplates, about double the average for Detroit manufacturers, the company says.
But generally, said Chrysler's brand marketing chief George Murphy, "I don't see a big shift in cross-shopping between traditional domestic producers and imports. That's one of the challenges we have -- to appeal more to the import buyer."
http://www.detnews.com/2005/autosinsider/0508/15/A01-280996.htm
But Chrysler counts two Japanese brands among the 10 most common trade-ins for the boldly styled, rear-wheel-drive 300.
As U.S. automakers struggle to fend off foreign rivals and boost earnings, they're striving to duplicate the success of the 300 to win back import drivers and reverse some ominous trends.
Detroit's carmakers are not only losing sales to Asian rivals, they are also losing choice customers as U.S. consumers increasingly separate into two camps: import buyers and loyalists to domestic brands.
Overall, buyers of domestic-brand vehicles tend to be older, less educated and less wealthy than owners of import brands. Over the past 10 years, the gap in income and education has widened, with the most desirable customers flocking to foreign brands.
"The income is a worrying sign," said David Ensing, director of automotive research at St. Louis-based Maritz Inc. "If you're not keeping up with other manufacturers, it probably means some of your more profitable customers are going away."
Most of those customers never look back, according to data showing that import buyers may switch brands but rarely return to domestic nameplates.
"A lot of people have gone to the Japanese, and it'll be tough for the domestics to get them back," said George Peterson, president of consulting firm Auto Pacific.
"Consumers were burned in the late 1970s and 1980s, and this is still hurting domestic manufacturers," he said. "They deserve to get (people) back, but it'll be tough."
This year, General Motors Corp. and Ford Motor Co. are rolling out new models designed to win back customers from foreign brands, which now hold 40 percent of the market. With the launch this month of the Pontiac Solstice, starting at $19,995, GM scored a conquest with its first sale, to Shelly and Clark Brinton.
The Meridian, Idaho, couple also own a Honda Accord, a Mazda Protege and a GMC Yukon Denali truck. "I've always wanted a little roadster. We looked at the (Nissan) 350Z, but when I saw the Solstice, I fell in love with it. The look, the price -- everything about it," said Shelly Brinton.
With the new Ford Fusion, a small car scheduled to hit showrooms in mid-September, Ford wants to hang on to owners of the Ford Focus compact as they move up to the midsize car segment. The top sellers in that category are the Toyota Camry and Honda Accord.
Ford is touting the Fusion's sharp driving dynamics and snappy styling, including two-toned stitching on the leather seats, to appeal to car buyers tempted by import brands. "We understand we're losing some customers today," said Dan Geist, marketing manager for the Fusion.
Buying American
The Chrysler 300 sedan, one of Detroit's biggest hits in years, helped DaimlerChrysler AG's Chrysler Group expand its customer base and market share by attracting import buyers. Some 16 percent of the trade-ins for the 300 are foreign nameplates, about double the average for Detroit manufacturers, the company says.
But generally, said Chrysler's brand marketing chief George Murphy, "I don't see a big shift in cross-shopping between traditional domestic producers and imports. That's one of the challenges we have -- to appeal more to the import buyer."
http://www.detnews.com/2005/autosinsider/0508/15/A01-280996.htm
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