why are american automakers losing so many sales?

Question

will they ever be back on top?

Answer 1

A mix of all the answers above!

- Many consumers clearly perceive US models to be of lesser quality than Japanese cars (It seems to me that car people agree that is a true perception despite US improvements, especially among used cars).

- The Japanese have simply been better in tune with the US market -- consumer wants and tastes. Despite that they foreign.

- The above factors have fed on themselves, to the point that American brands have become uncool. (Who under the age of 70 would be caught dead in a Buick?)

- US car makers focused too much on the more profitable SUVs/Trucks, and the expense of making good cars (sedans and coupes). With gas prices higher than a few years ago, SUV sales have fallen. If you don't constantly focus on making good cars, you won't.

- I believe that the GM and Ford financing arms were a huge mistake. It may have sounded clever that they'll loan you money to buy their car, and they'll profit from the lending AND the car sale. BUT ... are you a vehicle manufacturer or a bank? You can't be good at both, it takes too much energy and attention, you lose focus.

- Finally, yes indeed both the unions and the executives are utterly guilty of being greedy and shortsighted in a million ways, and they are now very much getting what they have so richly deserve. Workers and CEOs alike, all have a sense of entitlement and think consumers exist only to pad THEIR pockets. They do not understand that businesses exist only to serve consumers -- despite what they may say -- it's not in their DNA to truly get that.

Answer 2

There are lots of reasons. The high end German cars are designed to handle autobahn speeds and have superior performance. On the low end the Japanese, and Korean cars are either cheaper or more reliable.

The U.S. auto industry never recovered from the 70's when they used tariffs to restrict competition by imports. They also caved in to the Unions and now benefits being paid by the auto companies to retired employees is such a large chunk of their cost that there is no level of efficiency that will make them competitive with the foreign companies including the Japanese manufacturers that are building their cars in the U.S.

I've got a Ford truck that I bought because it was the cheapest I could find. It has around 100,000 miles on it and runs good. But it doesn't compare to my wife's BMW X5. Her boss bought a brand new Lincoln Navigator which cost a little more than the BMW but has less horsepower, worse gas mileage, and doesn't have all the features of the BMW.

Lets be fair. You don't by the shoddiest offered but the best you can afford. And the winner is the most efficient producer of the best products. That's not going to be one of the Big three in the U.S. because their labor contracts have them shackled to the 1960's and they are stuck there.

Answer 3

I used Toyota vehicles for almost 20 yrs besides the undeniable fact that the present remembers shatter my believe with the automaker. there have been a number of defective elements with the Toyota fashions that I owned in the previous yet they were none deadly. The agent refused to admit the defects and that i had to make solid of the problem myself. Now Toyota is dealing with some important defects of their fashions that had brought about a number of harmless lives. they don't have any decision yet to admit its legal duty using gigantic stress push down through the precious US authority. Why take in the problem in trouble-free terms at the same time as cornered? Why can not personal up the problem at the same time as the shoppers or interest communities lodged a authentic grievance? It appears like the automaker is giving priority to learn over the protection and welfare of the shoppers. The automaker would produce most economical vehicles besides the undeniable fact that it compromises the protection of the consumers. i'm fortunate to submit this remark yet will I be nonetheless so fortunate next time if I proceed to pledge my undivided help to Toyota ???

Answer 4

Good question and not sufficiently addressed in the Press.

They never seriously responded to the competition from Japan (and now other countries from the Far East). Instead they sought financial aid from Congress, lobbied against the fuel economy legislation of the 1970s (which Congress overturned for them) concentrated on building big expensive cars which had a higher profit margin including the environmentally disastrous SUV. It took Detroit decades to come close to the reliability that Japan was producing years ago (as surveyed by Consumers Reports) and now their poor reputation hinders them with buyers.

I think they had their sense of how things should be done, kept on doing them that way, and never seriously tried to understand what needed changing. I do not believe they will "get back on top." (Ford has seen the writing on the wall and is selling off plants now, while the going is still good.)

Answer 5

They have not been doing a good job of keeping up with the market. Of course, what constitutes an American automaker is becoming something of a question, as many "foreign" makes are now constructed in the US.

Answer 6

American car companies produce cars that are of poor quality. They suck. They break down so easily it's not even funny. For instance, Ford has recalls on their cars every few months or so, because they are made of such shitty quality.

On the other hand, you can buy a nice European or Japanese car for a slightly higher price but it will last you for about 250,000 miles and give you very few problems.

So, as long as American car companies produce cars of poor quality, their sales will continue to fall, and the companies will continue to do worse and lay off more workers. Which is unfortunate, because this country has enough unemployment as it is.

Answer 7

They might get back on top. They are losing money because too many Americans are buying expensive foreign made cars.

Answer 8

Because their products are perceived to be low quality and highly priced. Ironically, the people who would buy their products can't afford them. They have priced themselves out of the mainstream market.

Answer 9

no i dont think they will.Competiors have done a better job of what the public wants and many times at a cheaper price for their vechiles which also hold up better with less problems.sorry its what i see.

Answer 10

unions, they make sure everyone has high wages and pensions, so american componies just cannot keep up with other forign componies who do not have such a weight over their heads