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Last Published 5/18/2024 3:25:15 PM By Tridion Admin
BLOGJul 20, 2011
Can the domestic OEMs maintain the momentum?
Automotive Expert
After seeing the domestic share of the retail light vehicle market continue to lose ground to Asian brands over the past five years, we are beginning to see an uptick in 2011. The bankruptcies of GM and Chrysler coupled with the collapse of the automotive market exacerbated the decline for the domestic OEMs in 2009 and 2010. Ford was the only domestic to buck the trend and increase its share in 2009 and 2010, but not enough to offset the loss in share of GM and Chrysler. Overall domestic share of the retail market fell below 40% in 2010.
However, some changes are afoot in 2011. After being in decline since 2007, Chrysler's share is beginning to move northward. They have some good new products and have been re-energized and had their image burnished by the successful "Imported from Detroit" advertising. GM began its climb back from its low point in 2010 and is continuing to improve its share of retail registrations.
Part of this improvement for the domestics can be attributed to the earthquake and tsunami disasters in Japan. This is a temporary setback for the Japanese OEMs that they will overcome. The real question is, "Have the domestics successfully repositioned themselves to reclaim share and a place in more American garages?" One could argue fairly convincingly that adversity has made the Detroit Three into stronger companies. The questions now are, "Can the Detroit Three regain some of their lost share even after the Japanese companies rebound from the effects of the disasters in Japan? Will Americans who have been soured on D3 products give them another chance and will they stay with them?"
The fate of the domestic OEMs is at a turning point - something we that live and work in the Detroit area are watching with interest. Stay tuned for more.