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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: Eric in the Ozarks
Chrysler guy told me that the main thing that attracted M-B to Chrysler was the Jeep brand

Now BMW is the #1 German car company, even after making a mistake of their own by buying British Leland.

41 posted on 01/08/2007 7:03:57 AM PST by Dixie Yooper (Ephesians 6:11)
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To: pnh102
"Amen to that... My next car will probably be another Honda made in Ohio, Toyota made in Kentucky, or a Hyundai made in Alabama :)"

Got it right guy...ask where GM and Ford have all their pieces parts made. China and everywhere else slave labor could be had.

Had a 98 Blazer that was in the shop for a serious malady every 90 days like clock work. Complained to Chevy about it and told them my 88 SR5 pick-up with 180,000 was a more reliable vehicle and the told me "SHOULD OF BOUGHT A TOYOTA THEN"! This is no lie!

Buy GM, ya right!
42 posted on 01/08/2007 7:03:59 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: gunnyg

Buy American!

43 posted on 01/08/2007 7:04:36 AM PST by 1rudeboy
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To: Flavius

So, if you need a cheap, disposable vehicle that you won't mind becoming riddled with bullets, buy a Nissan/Toyota.



It's not reliability, it's cost that drives the usage of these small trucks by "Technical" units. They can't afford the fuel for real trucks, and their shoestring budgets can buy more of these than they could real trucks, plus they aren't out as much when one of these throws an axle or blows a Birfield.


44 posted on 01/08/2007 7:07:15 AM PST by Little Pig (Is it time for "Cowboys and Muslims" yet?)
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To: Gorzaloon

***other tributes to cost-driven "engineering"***

Having worked as an engineer in the industry, I think that one sentence says it all.


45 posted on 01/08/2007 7:09:05 AM PST by EEDUDE
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To: Dixie Yooper
My German colleague who just came from Germany a few months ago went and bought a brand new Ford Focus. He keeps asking me why the parts in the interior of the car are so 'loose" and shabbily built? When I asked him to pop the hood to take a look at his new car's engine, it got stuck and he had to fiddle with it to open it. This was the second day he bought it.
46 posted on 01/08/2007 7:09:57 AM PST by FreeManWhoCan (**An American in Miami**)
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To: Flavius
I prefer my Deuces to have doors:

47 posted on 01/08/2007 7:10:23 AM PST by Little Pig (Is it time for "Cowboys and Muslims" yet?)
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To: Flavius

I love those old trucks too. Some of 'em were Dodges, I think. I have a friend who owns a couple of the smaller ones for a hobby, shown in the last photograph. And Dad had one of those old Willys Jeeps back in the day. My brothers and I learned to drive in it. Thanks for the pictures.


48 posted on 01/08/2007 7:13:03 AM PST by Sam Cree (absolute reality)
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To: Citizen Tom Paine
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

My first vehicle was a 1973 Chevy C10 which was trouble from day one. Being young and full of pride in America and everything made in America nonsense, three years later I bought/ordered a new 1978 Chevy El Camino with a 200 V6 to save gas. After one year I realized I still have 3 years to go on a car loan for a pile a junk that I had to keep running no matter how much it cost. I kept it going by carrying a case of oil in spark plugs with me at all times until 1986. I bought a used 82 BMW and have never regretted buying foreign cars and trucks since.

49 posted on 01/08/2007 7:13:10 AM PST by Dixie Yooper (Ephesians 6:11)
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To: M. Dodge Thomas

76 Mustang II
80 Ford Courier
79 Chevy Silverado
94 Explorer Sport

04 Escape - I guess this was supposed to be the replacement for the Explorer Sport, but it really isn't that good. I would go back to Chevy, but since they hired John Mellencamp to air those ignorant commericals, I'm done with them as well.

I think I'm turning Japanese. I really think so.


50 posted on 01/08/2007 7:13:48 AM PST by RabidBartender
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To: Dixie Yooper
You left out the GM 200 V6 from 1978. The engine that enlightened me to no ever buy an American car or truck again.

!!! Slapping forehead. My sister's Pontiac!!

I am sure I missed a few more beauts!

51 posted on 01/08/2007 7:14:35 AM PST by Gorzaloon (Global Warming: A New Kind Of Scientology for the Rest Of Us.)
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To: Sam Cree
I love those old trucks too. Some of 'em were Dodges

The most beautiful pickup truck ever made was the late 50's Dodge Power-wagon. Too bad the top speed was only 40 mph.

52 posted on 01/08/2007 7:17:17 AM PST by Dixie Yooper (Ephesians 6:11)
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To: Flavius
Ah, FReepers. They love Big Oil and Wal-Mart and hate the "Detroit Three."
53 posted on 01/08/2007 7:17:39 AM PST by BW2221
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To: BW2221
Ah, FReepers. They love Big Oil and Wal-Mart and hate the "Detroit Three

Some call it freedom of thought

54 posted on 01/08/2007 7:21:58 AM PST by Dixie Yooper (Ephesians 6:11)
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To: Flavius
OK - I'm confused, from everything I read so called "US / American" autos are actually made / assembled in either Canada or Mexico...
55 posted on 01/08/2007 7:22:07 AM PST by VRWCTexan (History has a long memory - but still repeats itself)
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To: Dixie Yooper
Is this one of them?


56 posted on 01/08/2007 7:22:43 AM PST by Sam Cree (absolute reality)
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To: Little Pig

Is that a Japanese Dodge ?


57 posted on 01/08/2007 7:24:01 AM PST by Eric in the Ozarks (BTUs are my Beat.)
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To: BW2221
Detroit Three

The Other Axis of Evil!

58 posted on 01/08/2007 7:24:07 AM PST by Dixie Yooper (Ephesians 6:11)
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To: Flavius

As a high schooler with a date, riding in a NYC subway train circa early 60's, we were accosted by a drunken passenger who, in his tirade, repeatedly called us: "God dam*** electricians". Apparently electricians were on his mind since there had recently been a strike in the city.

The irrationality of some Freepers reminds me of that fellow.




59 posted on 01/08/2007 7:26:30 AM PST by gas0linealley
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To: VRWCTexan
OK - I'm confused, from everything I read so called "US / American" autos are actually made / assembled in either Canada or Mexico...

Don't be confused, Americans still make the best cars and trucks, they just work for Toyota and Honda.

60 posted on 01/08/2007 7:26:41 AM PST by Dixie Yooper (Ephesians 6:11)
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