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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: JZelle

The day a zone rep from Dodge told me that the paint falling off my two year old vehicle in patches the size of my hand was my fault beacuse "you don't wash it enough" was the last day I even considered an American made vehicle.

Before that I "Bought American" - and suffered the consequences with products from ALL THREE major manufactuers.

Since then, I've bought Japanese (assembled in the US when possible) have had almost no problems.

I still ocasionally rent US designed vehicles.

They are still an inferior product.

Sorry to say it, but the US run auto industry as it exists today deserves to die.


21 posted on 01/08/2007 6:43:04 AM PST by M. Dodge Thomas
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To: pnh102

Titan trucks are made in Mississippi. That would be what I would buy, if I didn't only buy used cars.


22 posted on 01/08/2007 6:43:07 AM PST by Sybeck1 (Southaven Mississippi Freeper)
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To: Flavius

On another car thread yesterday, I saw an interesting response where the poster said the automakers could save themselves if they would bring the styles of vehicles they are producing in Australia and Europe over here.


23 posted on 01/08/2007 6:43:44 AM PST by T-Bird45
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To: mewzilla
And a citation for the $1500 figure...

Rising benefits burden

24 posted on 01/08/2007 6:43:58 AM PST by mewzilla (Property must be secured or liberty cannot exist. John Adams)
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To: longtermmemmory

"There are too many left wing politically correct brain deficient suits in the corporate tower for them to ever get out of the stupid box."

Right on!


25 posted on 01/08/2007 6:44:17 AM PST by mr_hammer (Pro-life, Pro-gun, Pro-military, Pro-borders, Limited Govn't will win in 08!)
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To: mewzilla
Of course, stuff like this doesn't help, either...

12,000 paid not to work (UAW Union Alert)

I'm not enabling that.

26 posted on 01/08/2007 6:46:32 AM PST by mewzilla (Property must be secured or liberty cannot exist. John Adams)
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To: advertising guy
I'll own a new 07 Chevy m900 pickem up in a week. Best pick up ever made

Brain-washed by advertising or just plain old stubborn "I only buy American Trucks" intellect. Let me guess, you have never driven a Tundra have you?

27 posted on 01/08/2007 6:46:44 AM PST by Dixie Yooper (Ephesians 6:11)
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To: Hemingway's Ghost
There are two generations of car buyers that the big three have alienated with their crappy cars, my generation and my kids. When my 1975 Ford had 55,000 miles on it, it needed a new transmission & head gasket. Two years later it needed another transmission. The engine blew on my husbands 1978 Buick with only 82,000 miles on it. Since 1984 we have owned Honda's and never looked back.
28 posted on 01/08/2007 6:47:01 AM PST by alice_in_bubbaland (New Jersey gets the corrupt government it deserves!)
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To: Flavius

The whole trouble with the American auto industry comes down to one thing: the UAW.


29 posted on 01/08/2007 6:49:21 AM PST by 68 grunt (3/1 India, 3rd, 68-69, 0311)
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To: Dixie Yooper

"Brain-Washed!!!"
You called that one right!
Mass hypnosis--shades of Walter Cronkite--this nation of boobs will believe whatever the lobotomy box tells them--right now we are being told not to buy housing--result? You know.


30 posted on 01/08/2007 6:51:25 AM PST by gunnyg
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To: Dixie Yooper
i know its a bad advertisment but

all third world nations have Toyota's or Nissan's not gm's or fords

they probably dont want to be parked on side of the road waiting for tow truck

you cant buy that advertisement

31 posted on 01/08/2007 6:53:30 AM PST by Flavius (Qui desiderat pacem, praeparet bellum)
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To: Flavius

I rented an Impala a year or so ago for a few days. It felt light weight, unstable and tinny, I was glad it wasn't mine. My '96 Dodge diesel pickup is a very good vehicle, though.


32 posted on 01/08/2007 6:55:14 AM PST by Sam Cree (absolute reality)
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To: Hemingway's Ghost
Unfortunately for them, American carmakers are now reaping what they sowed in the 1960s and 1970s

 

I worked in my Dad/'s gas station back then, when you got your windshield cleaned and oil checked and the gas pumped for you. We could count on selling a quart of oil to every other Vega that came in.  American cars are far, far better today than they were then (thanks BTW to competition from Japan), but they still have their legacy to deal with. Good luck to them.

33 posted on 01/08/2007 6:57:16 AM PST by beef (Who Killed Kennewick Man?)
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To: Sam Cree
USA made trucks I LOVE where made at a better time


34 posted on 01/08/2007 6:58:43 AM PST by Flavius (Qui desiderat pacem, praeparet bellum)
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To: muawiyah
I've begun limiting my purchases to cars made in South Korea and Alabama.

And we folks here in Bama appreciate it!!! :) I have several kin-folks that work at the Honda plant in Lincoln, AL. It is a nice plant. Great jobs for those folks there. Making well above the pay scales of any other jobs around here.

35 posted on 01/08/2007 6:58:45 AM PST by RetiredArmy (I don't march to other people's opinion of me or my beliefs. I march to my beliefs and heart.)
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To: pnh102

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.


36 posted on 01/08/2007 6:59:08 AM PST by Eric in the Ozarks (BTUs are my Beat.)
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To: Gorzaloon

You left out the GM 200 V6 from 1978. The engine that enlightened me to no ever buy an American car or truck again.


37 posted on 01/08/2007 6:59:55 AM PST by Dixie Yooper (Ephesians 6:11)
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To: M. Dodge Thomas

I hear you. I've been driving Toyotas since '84.


38 posted on 01/08/2007 6:59:59 AM PST by JZelle
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To: Dixie Yooper
I assert that American cars hit the wall in 1973 when all the air pollution devices were hung on them. V8s typically went from about 300hp down to less that 200 with a commensurate loss in performance and mileage.

It took Detroit about 20+ years to learn how to build new cars with performance and low defects. The Japanese learned very quickly, and here we are.

Detroit also had some problems with styling. I am not sure what happened, but they built some dogs for many years. They also must have thought that no one had families any more when they dropped the station wagons.
39 posted on 01/08/2007 7:01:10 AM PST by Citizen Tom Paine (An old sailor sends we need a 800 ship Navy.)
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To: 100-Fold_Return
"Our new TITAN is getting @ 20mph, go figger??"

Yes, go figger! That is extremely slow. They should put a larger engine in it ;-)

40 posted on 01/08/2007 7:03:16 AM PST by LZ_Bayonet
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