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Handwriting Is On Wall In Detroit, With Foreign Cars Vastly Preferred
IBD Editorials ^ | July 29, 2008 | CONSTANTINE KAMBANIS, RAGHAVAN MAYUR AND BERT HOLLAND

Posted on 07/29/2008 7:14:54 PM PDT by Kaslin

Auto-industry insiders over the years have often blamed Detroit's mounting problems on mediocre management, poor technological leadership and a lack of vision for the future.

While the successful foreign firms relied on technological innovation, a thorough study of the market, clever marketing and high quality, Detroit's Big Three automakers relied on massive economies of scale, price discounting, zero-percent financing, rebates and volume fleet sales, all of which led to erosion of vehicle resale values.

What were customers to do? Buy highly rated "foreign" cars with high resale values or steeply discounted American vehicles with lower resale values?

The answer is in the numbers. From 1992 to 2007, the number of imported passenger vehicles more than doubled, and Toyota Motor Co. is now the world's largest automaker. According to a new joint study by TechnoMetrica Market Intelligence and Auto Futures Group, the No. 1 brand Americans will consider buying is Toyota.

Our study also shows that when it comes to brand power among customers, Toyota and Honda owners are — on average — four times more likely to promote their brands to friends than Ford owners are, and three times more likely to promote their brands than GM or Chrysler owners.

This does not bode well for Detroit, where the Big Three are at crossroads. Already bleeding from declining sales, increasing incentives and heavy lease losses, they must at the same time find the resources to retool their lineups, remake their images and shore up their market values.

(Excerpt) Read more at ibdeditorials.com ...


TOPICS: Business/Economy; Editorial
KEYWORDS: transportation
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To: DManA
The next VW will not be built in Mexico but right here in the good ol' US of A!

"Show me just what Mohammed brought that was new, and there you will find things only evil and inhuman, such as his command to spread by the sword the faith he preached." - Manuel II Palelologus

21 posted on 07/29/2008 7:39:49 PM PDT by goldstategop (In Memory Of A Dearly Beloved Friend Who Lives In My Heart Forever)
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To: Greenpees

There are very few imports anymore. Nissan, Toyota and Honda are stateside and Volkswagon soon will be.


22 posted on 07/29/2008 7:40:01 PM PDT by eyedigress
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To: Greenpees
All the rest is hype. and it’s hype that you’ll pay an extra 10K for.

Not in my experience. My 2005 Toyota Camry was priced lower than a "comparable" Chevy Malibu. And it will hold its value, unlike most domestic cars.

23 posted on 07/29/2008 7:40:08 PM PDT by buccaneer81 (Bob Taft has soiled the family name for the next century.)
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To: buccaneer81; Jim Noble
My Mazda was built in Michigan and my Toyota was built in Kentucky. Gonna tax those too?

Don't clog up a good emotional reaction with facts!

24 posted on 07/29/2008 7:40:13 PM PDT by Grizzled Bear ("Does not play well with others.")
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To: Greenpees
Who the heck cares who owns the company? They're good jobs for American workers.

or ones that are made in the US out of convenience

25 posted on 07/29/2008 7:41:12 PM PDT by DManA
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To: Grizzled Bear

Ain’t choice wonderful?


26 posted on 07/29/2008 7:42:33 PM PDT by DManA
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To: wally_bert
I had an 1988 240sx, never gave me issues, sold it after 7 years it had 88K kilometers...i did have to replace the muffler though...but you have to understand, we have a rough winter here in Canada with all that salt and crap...it was tough driving in winter with rear wheel drive, but over all it was a great car...I loved it
27 posted on 07/29/2008 7:42:48 PM PDT by forYourChildrenVote4Bush (Today, July 16th I no longer donate money for Israel)
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To: Jim Noble
I would put a $20 000 tax on all imported cars, tomorrow.

Marx, is that you?

Most "imports" are manufactured in America anyway.

28 posted on 07/29/2008 7:43:32 PM PDT by Extremely Extreme Extremist (BARACK OBAMA WILL SAVE US! HE HAS RISEN!!)
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To: DManA

Yup.


29 posted on 07/29/2008 7:44:48 PM PDT by Grizzled Bear ("Does not play well with others.")
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To: forYourChildrenVote4Bush
had 88K kilometers.

Heck, that's only 55,000 miles. It wasn't even broken in!

30 posted on 07/29/2008 7:45:27 PM PDT by buccaneer81 (Bob Taft has soiled the family name for the next century.)
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To: Grizzled Bear
They say that Dodge has the best engineers...every thing breaks down after the warranty has ended...so I've been told...
31 posted on 07/29/2008 7:47:08 PM PDT by forYourChildrenVote4Bush (Today, July 16th I no longer donate money for Israel)
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To: Greenpees
Have a Ford Freestar bought new. In May, with 70,000 miles, the transmission went out.
The same month my Taurus with 60,000 miles, had the exhaust system fall off and the electric window opener failed in the drivers window. I also had them fix the stereo speaker that went bad at 40,000 miles and the air temperature sensor that went bad at the same time.

These items that I had to fix are simple quality issues; a lack of attention to minor details.

I have bought Ford since 1978 specifically to support an American based company.
The above is how I was rewarded for that loyalty.

32 posted on 07/29/2008 7:47:30 PM PDT by HereInTheHeartland ("We have to drain the swamp" George Bush, September 2001)
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To: Grizzled Bear

It’s one of the important things you were fighting for. And I thank you sincerely for that.


33 posted on 07/29/2008 7:47:57 PM PDT by DManA
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To: Jim Noble
I would put a $20 000 tax on all imported cars, tomorrow.

Your idea is brilliant: increase the price of private transportation in a slow economy. The price of all cars will rise because of this tax. Sales of autos will fall causing even more layoffs.

Foreign manufacturers have invested heavily in domestic production. The definition of an imported car is a political question, not an objective issue. The Big 3 are heavily union dominated. Your tax would make the unions even more intransigent.

I avoid buying from union dominated companies whenever possible. I will continue to reject any auto made by the Big 3 as long as the union goons dominate these companies.

34 posted on 07/29/2008 7:48:33 PM PDT by businessprofessor
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To: buccaneer81
I know, had to give it up, I got married, and she couldn't get the hang of a manual car...damn
35 posted on 07/29/2008 7:49:35 PM PDT by forYourChildrenVote4Bush (Today, July 16th I no longer donate money for Israel)
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To: Alberta's Child

I agree. I’ve also heard that Consumer Reports has an anti-American bias. A local garage owner made mention of this on his radio show. He basically made the point that most American autos are just as good as foreigns cars. He also stated that repairs to imports can really get ridiculous. He mentioned Volvo and Lexus in particular. I must admit however, that I’ve given thought to making a Subaru or Toyota my next car.


36 posted on 07/29/2008 7:49:55 PM PDT by donaldo
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To: Jim Noble

Why?


37 posted on 07/29/2008 7:50:01 PM PDT by Cousin Eddie
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To: DManA

Thanks!


38 posted on 07/29/2008 7:54:54 PM PDT by Grizzled Bear ("Does not play well with others.")
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To: forYourChildrenVote4Bush
On the Neon...

The brakes squeaked. I complained to the dealer. I later learned it wasn't “dangerous” but they fixed the problem if you complained.

At about two years out; while changing oil, the plug spun free. AAFES said I voided the warranty by “performing maintenance” (aka, changing the damn oil). I argued with AAFES that, the manual explained how to change the oil so the manufacturer expected the owner to do it. The salesman got on the phone with AAFES HQ and argued with them.

I gave up and bought a new oil pan. Later, the new area manager contacted me with a reimbursement.

At eight years out I was PCSing. It still ran like a champ but had a slight leak at the head gasket. I gave it to a young Airman (an AF Vehicle Mechanic) who had just gotten married.

I'd buy another Dodge.

39 posted on 07/29/2008 7:55:40 PM PDT by Grizzled Bear ("Does not play well with others.")
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To: Kaslin

btt


40 posted on 07/29/2008 7:56:05 PM PDT by Cacique (quos Deus vult perdere, prius dementat ( Islamia Delenda Est ))
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