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U.S. Automakers Battle Public Bias
http://biz.yahoo.com/ap/070108/autos_ap_poll.html?.v=2 ^ | 1/8/07 | Will Lester

Posted on 01/08/2007 6:15:51 AM PST by Flavius

WASHINGTON (AP) -- Americans have a bias against cars made by U.S. automakers, but an AP-AOL Autos poll found flickers of loyalty that could offer hope for an industry struggling to survive.

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

hose questioned in the survey said they have more faith in Japanese-made cars than in vehicles produced by Detroit's Big Three. But General Motors Corp., Ford Motor Co. and the Chrysler Group are going back to the future in their uphill effort to again inspire consumer loyalty and regain market share.

What is the American auto industry doing to reclaim its evaporating 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.

And the mood of U.S. auto industry leaders?

"They're tearing their hair out," said Wolkonowicz, who works at Global Insight, an economic research and consulting company. "It's more of a problem of perception than reality. The problem started in the late 1960s and early 1970s."

Back then, a teenager's first set of wheels probably was something like a 10-year-old American-made car, with all the attendant problems. The replacement might have been a new Japanese compact, a more reliable performer with better gas mileage.

As the Japanese began offering luxury models, that brand loyalty grew stronger. Also, European-made cars became more popular as consumers looked to drive something distinct from their parents' vehicles.

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.

"The best cars are made in Japan or maybe a BMW from Germany," said Pat Goeglein, 51, who lives near Los Angeles and works in real estate. "Those cars last forever. I have to get economy out of my cars."

While the public perceives that Japan makes the best cars, 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 said it makes no difference.

--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.

Auto industry analysts say many people have the perception that cars made overseas are built better than American cars. But the performance of American-made cars is now actually very close to those made in Japan and higher than many cars made in Europe, they said. Foreign cars do have an advantage in resale value, however.

The domestic industry is trying to bring consumers into showrooms to look for something other than trucks, offering traditional cars like the Ford Mustang and introducing muscular new models of the Chevy Malibu and a concept car that could serve as a replacement for the popular Chrysler 300.

For the past decade or so, American automakers have tried to win back car buyers who purchase gas-efficient imports, industry analysts said, but that effort has met with limited success.

American models are getting more gas-efficient, analysts say, and prices for regular gas have dipped from their average $3-per-gallon price last summer.

But the biggest audience for American-made cars and trucks may be the blue-collar population, analysts said.

The poll found that 51 percent of those with a high school education or less preferred American-made motor vehicles, while 31 percent with a college degree felt that way. Younger people and those with less education were also most interested in more traditional or "retro" cars.

The share of autos sold in the U.S. by the Big Three has dropped sharply in recent years. General Motors and Ford have cut their labor force and related costs to be more competitive, and the Chrysler Group of Daimler Chrysler is likely to make similar moves.

George Maglione, an auto industry analyst, said the Big Three's share of the market has dropped from seven in 10 sold in 1998 to just over half sold in 2006.

That dropping share has accelerated as older people, the generation most loyal to American cars, have aged and left the buying market.

That has made it critical that American automakers win over young adults, who are just starting to build their loyalties.

Leticia Bowlin, a 29-year-old mother from Sanford, Fla., said she makes her choice on what car to make based on its ratings and safety features.

"I don't have a preference based on the country," she said.

Features such as side air bags and antilock braking systems were the options people most wanted, while onboard navigation systems interested them the most, according to the telephone poll of 1,004 adults conducted Dec. 19-21. The margin of sampling error was plus or minus 3 percentage points.

Both American and foreign automakers offer such features, so they may not be the key factors in a purchase decision. And there are some willing to buy American just to be patriotic.

Justin Watson, a 25-year old laborer and student from Beaumont, Texas, says he is fiercely loyal to American cars.

"My great-grandfather, grandfather and father fought against these people," he said of countries that are leading competitors of American automakers. "We're killing ourselves by buying their cars. I drive a Dodge truck, and always buy American."

AP Manager of News Surveys Trevor Tompson, AP News Survey Specialist Dennis Junius and business writer Tom Krisher contributed to this report.

Ipsos: http://www.ap-ipsosresults.com


TOPICS: News/Current Events
KEYWORDS: americans; ceo; management; patriots; unions; usmc; veterans
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To: Gorzaloon
the Ford 3.8 V6 with self-dissolving head gaskets

'90 Taurus 3.8. Not only the gasket disaster, but the motor mounts weren't strong enough for the engine torque. Broke three mounts, plus collateral damage of two a/c manifolds while I owned it.

A 40,000 mile car at best. Nissan and Hyundai ever since for our family.

61 posted on 01/08/2007 7:27:47 AM PST by Doghouse Riley (No war unless it's total war for total victory.)
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To: Sam Cree
Wow, that's exactly what I'm talking about!
The late 50's Chevy Apache ran a close second place to the Power-wagon.
62 posted on 01/08/2007 7:28:33 AM PST by Dixie Yooper (Ephesians 6:11)
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To: Flavius

The problem with cars, is you get 1 chance to make a first impression....

Ford has been very good to me over the years.

Chrysler ... eh.

VW .... Supurb

Mazda .... eh

GM .... crap on a stick

Toyota ... good.

The only thing I say for certain about my next car purchase, it is very very very unlikely it will be a GM, I don't think all the marketing in the world will get me past a POS GM I bought... left me stranded at 2am in the middle of nowhere with an 11 day old son when its transmission dropped at 60k, after being in and out of the shop nearly weekly for 6 months... And yes this was a model that was supposed to be reliable according to the reviews.

I prefer to buy an american vehicle if I can, but due to that costly experience, about the only way I'd ever drive a GM is if they gave it to me, literally. If it proves reliable, I might buy another one in the future, but to date, I've learned my lesson on that one.


63 posted on 01/08/2007 7:28:39 AM PST by HamiltonJay
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To: jiggyboy

Call NAPA.
this is what the aftermarket takes care of...
All companies do this...


64 posted on 01/08/2007 7:30:01 AM PST by fhlh (Liberal (noun): A person so open minded, their brains have fallen out of their head.)
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To: pnh102

blanket statements...

I've owned many Mopar products over the past 10 years, all have treated me well.


65 posted on 01/08/2007 7:32:16 AM PST by fhlh (Liberal (noun): A person so open minded, their brains have fallen out of their head.)
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To: HamiltonJay
The problem with cars, is you get 1 chance to make a first impression....

The problem with "anything that costs over $10,000" is you get 1 chance to make a first impression.

66 posted on 01/08/2007 7:33:32 AM PST by Dixie Yooper (Ephesians 6:11)
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To: Citizen Tom Paine

Detroit took its customer base for granted...

While many blame the unions, it was management who agreed to their demands.

Mismanagement and attempts at quick fixes have caused horrible long term damage to Detroit and her brands.

Personally I think Detroits biggest problem has been mismanagement, across the board. Only at a place like GM could you be accused of sexual harrassment 8 times and still have a job in the same company.

It does seem that finally they are starting a turn around, GM rediscovered styling, at least partially... etc etc etc.

Time will tell.


67 posted on 01/08/2007 7:34:47 AM PST by HamiltonJay
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To: M. Dodge Thomas

You can thank the EPA for your paint falling off.

It took the the paint companies and the automakers years to get the 'enviro friendly' formulas right.


68 posted on 01/08/2007 7:35:30 AM PST by fhlh (Liberal (noun): A person so open minded, their brains have fallen out of their head.)
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To: Eric in the Ozarks

My wife just got me a Jeep branded LED lantern. I think I've seen JEEP bicycles.

Maybe they took it of the shelf?


69 posted on 01/08/2007 7:36:42 AM PST by listenhillary (You can lead a man to reason, but you can't make him think)
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To: fhlh
I've owned many Mopar products over the past 10 years

You make it sound like you never kept any of them around long enough for them to treat you poorly. One good car will last a good driver 10 years or many more.

70 posted on 01/08/2007 7:37:00 AM PST by Dixie Yooper (Ephesians 6:11)
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To: advertising guy

You said: I'll own a new 07 Chevy m900 pickem up in a week.
Best pick up ever made
***

You may be right, but how can you know, if you don't have it yet?


71 posted on 01/08/2007 7:37:32 AM PST by NCLaw441
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To: 1rudeboy

real pickup don't sport dana44 rear end's...

The titan is a joke of a pickup.


72 posted on 01/08/2007 7:38:18 AM PST by fhlh (Liberal (noun): A person so open minded, their brains have fallen out of their head.)
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To: Eric in the Ozarks
Years ago, a Chrysler guy told me that the main thing that attracted M-B to Chrysler was the Jeep brand. Mercedes had all sorts of plans for the brand, including Jeep resorts, Jeep tours, putting the Jeep name on all sorts of non-automotive products. For some reason, the concept was put on the shelf.

Maybe "Doctor Z" sobered up?

73 posted on 01/08/2007 7:42:06 AM PST by Sicon
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To: FreeManWhoCan

He bought a Ford Focus. What the heck did he expect? I dunno, maybe Ford Europe vehicles are built to a better standard, but here the Focus is nothing but a loss-leader that helps lower CAFE ratings, and as such Ford builds them as cheaply as humanly possible. Same for most other small cars sold by the Big 3.


74 posted on 01/08/2007 7:42:15 AM PST by -YYZ-
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To: listenhillary

I think you could get a co-branding deal with just about any manufacturer these days. What M-B had planned was really big.


75 posted on 01/08/2007 7:45:58 AM PST by Eric in the Ozarks (BTUs are my Beat.)
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To: Dixie Yooper

or I have more than one or two...

I've got 3 in the stable now... a 97 Cummins Ram (look at that... 10 years and 246K on the clock), an 03 Hemi Ram and a 05 GT Cruiser... all have and continue to be good vehicles for me. Not perfect, (find me a vehicle that is and I'l buy it) mind you. but nothing about my 3 mopars will keep me from my 4th in 2009, the SRT-8 Challenger :)


76 posted on 01/08/2007 7:47:32 AM PST by fhlh (Liberal (noun): A person so open minded, their brains have fallen out of their head.)
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To: HamiltonJay
Chevy Duramax, HD2500........

Simply AWESOME! I have two, they get 20mpg, pull heavy loads w/5th wheel trailer, the '02 has 650,000 & the '05 has 270,000. They both run like the day they were new, and all I've done to them is change oil, filters and tires.

They ride like stretched limos, and I use the '02 to make personal trips (Crew cab) because it is so comfy, looks good too!
77 posted on 01/08/2007 7:47:46 AM PST by PSYCHO-FREEP (MAYNARD BLAZEJEWSKI For President '08 (The "true" conservative choice))
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To: Dixie Yooper
I think I like the old Power Wagon better than the old Apache, shown here, but both are very nice.


78 posted on 01/08/2007 7:48:10 AM PST by Sam Cree (absolute reality)
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To: Doghouse Riley

Ah, but it's unfair to judge Ford based on a car they built 17 years ago. Hmmm, OK, let's try just 10 years ago. '97? No, most of them were still crap then (certainly the Taureses and Windstars were, anyway, although a friend's Explorer did OK). 5 years ago? No, they were still building Windstars with dodgy head gaskets. The annoying thing about Ford is that they seem absolutely incapable, or unwilling, to identify and fix design errors, instead continuing to produce the same failure-prone crap for years after they become aware of the problem. That's no way to keep customers. GM, while not as bad, is still prone to having decent designs crippled by poor quality parts specified by the bean counters. Chrysler? Let's not even go there.


79 posted on 01/08/2007 7:49:52 AM PST by -YYZ-
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To: Flavius

"Auto industry analysts say many people have the perception that cars made overseas are built better than American cars. But the performance of American-made cars is now actually very close to those made in Japan and higher than many cars made in Europe, they said. Foreign cars do have an advantage in resale value, however."

Misleading. Most "foreign" cars are actually made in the US. OTOH, some "American" cars are manufactured abroad.


80 posted on 01/08/2007 7:51:17 AM PST by UpAllNight
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