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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: Flavius
"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."

This person is 25 - very sad. He needs to stop worry about the battles fought 60 years ago and worry about the ones being fought now. His "American" cars may very well be built in Mexico or Canada.

101 posted on 01/08/2007 8:57:13 AM PST by relictele
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To: Dixie Yooper

I believe that NAPCO built a few "factory" chebby Apaches in 4wd for GM in 1957-60. I'm not positive, mind you.

Every GM but one that I've owned has been a POS. Chevs, buicks, Pontiacs, one caddy, and a couple of Oldsmobiles.

The ONLY one I would buy again is the 1964 LeSabre. 355HP aluminum v-8 YAHOOOOOO!

Not much luck with Japanese, either. For commuting, I'd jump all over another Nissan Sunny (not sold in USA, called the Micra in Canada), though. Hondas have NO personality or style, and Toyota is overrrated and overpriced. Subaru is quirky, and Mitsu is Japan's Chrysler.

I've been quite pleased with my Fords. Then again, I don't go for the econoboxes or sportscars. My current ride is a crown victoria, and my next will most likely be from the same mfr. unless something really interesting comes out by then.


102 posted on 01/08/2007 9:00:09 AM PST by Don W (Stoneage man survived thousands of years of bitter-cold ice. Modern man WILLsurvive global warming.)
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To: Gorzaloon
--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.

What a curious way to phrase that. So, there is only a 5% difference in satisfaction level, hence the story is not really that important.

Phrased a more meaningful way, American car owners were 33% more likely to not be satisfied. That's significant to me.

103 posted on 01/08/2007 9:05:07 AM PST by CGTRWK
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To: relictele
I don't see how the big three are ever going to dig their way out of the hole they have put themselves into. Even if they solve the union problems, they still have to design a vehicle from the ground up with parts that are of quality,not made like the junk they currently use throughout their products. My first two BMW's, an 82 320i and an 89 325i had cloth, then vinyl seats. Both held up extremely well vs. the cloth and vinyl seats I had in my Chevys from the 70's. Even the knobs on the heater felt much better and lasted. By the time I finally got rid of my 78 El Camino, everything was falling apart. The headliner was coming down, the crushed velour seats were wore through, and the windows leaked. There were also numerous electronic problems and the engine. I sold to a guy I worked with for $300.
104 posted on 01/08/2007 9:06:21 AM PST by Dixie Yooper (Ephesians 6:11)
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To: Dixie Yooper
I don't see how the big three are ever going to dig their way out of the hole they have put themselves into.

I think it can be done. But will it? GM and Ford (especially) need to move away from this "our cars are just as good as" **** and toward "our cars are better by any measure."

Make the consumer buy your products. Step it up.

105 posted on 01/08/2007 9:09:32 AM PST by 1rudeboy
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To: Eric in the Ozarks

Nope. That's an AM General/Kaiser-Jeep M-35A1 2.5-ton truck, better known as the Deuce-and-a-half.


106 posted on 01/08/2007 9:14:36 AM PST by Little Pig (Is it time for "Cowboys and Muslims" yet?)
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To: EEDUDE

"Having worked as an engineer in the industry"

You to, then you also know the truth as do I.


107 posted on 01/08/2007 9:14:46 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: jalisco555
I think the early Taurus/Sable models had a design-problem with regard to heat-dissipation. At the same time you had your "problem," I rented a Taurus and was returning it to Hertz O'Hare. I cut it too close in terms of time, unfortunately, and in my desire to avoid being charged for another full day, I ran it flat-out on the Northwest Tollway for maybe 15-20 minutes to get to the airport. (Let's just say somewhere in the 95mph range).

As I was leaving the Hertz lot (in my friend's car), I glanced over and saw a Hertz employee running toward my recently-returned rental with a fire extinguisher.

108 posted on 01/08/2007 9:16:09 AM PST by 1rudeboy
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To: Flavius

"The problem started in the late 1960s and early 1970s."


EVERY problem started in the late '60s!

(I'm not kidding!)


109 posted on 01/08/2007 9:18:31 AM PST by the OlLine Rebel (Common sense is an uncommon virtue.)
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To: Hemingway's Ghost

As if Jap and Euro cars weren't ugly.

They are the definition. Never mind just looking wimpy.


110 posted on 01/08/2007 9:21:13 AM PST by the OlLine Rebel (Common sense is an uncommon virtue.)
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To: 68 grunt

Yes, it's COMMIE selfish-driven UNIONS, but it's also the garbage from the commie mindset:

-taxes
-enviroMENTAL regulations
-safety BS

and on and on, I'm sure.

Note all this started happening in the grand ol' period of the late '60s.


111 posted on 01/08/2007 9:24:58 AM PST by the OlLine Rebel (Common sense is an uncommon virtue.)
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To: Little Pig

Dodge and several other makers made Duce & a half military trucks in the 1940s and 50s. One of these was brought to Japan in the early 1950s by an agency of the US government to be copied and produced by Isuzu. These "Japanese Dodges" were used in VN and the PI for decades...


112 posted on 01/08/2007 9:25:36 AM PST by Eric in the Ozarks (BTUs are my Beat.)
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To: relictele

That would be FORD, then.

Plus, you just can't get serious SIZE or POWER with non-American cars/trucks (I am dead serious about that). Power is important in a truck! These people don't understand BIG. That could be seen right away in the 1st "serious" Jap truck, T100. Couldn't bear to build a full-size cab to match the rest.


113 posted on 01/08/2007 9:28:55 AM PST by the OlLine Rebel (Common sense is an uncommon virtue.)
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To: Eric in the Ozarks

Ah, now I see. The Deuce I prefer is the mid-to-late '60s onward version with the wider, unsloped nose and in-grille headlights, made by Reo, Kaiser-Jeep, or AM General.


114 posted on 01/08/2007 9:30:35 AM PST by Little Pig (Is it time for "Cowboys and Muslims" yet?)
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To: BW2221; Dixie Yooper

That's because Wal-Mart does more for the poor in this country thatn any gubmint program ever has! And the "Big Three" have screwed the US consumer for so long with such inferior products that they diserve all the condemnation they get. Easy enough to understand?


115 posted on 01/08/2007 9:31:36 AM PST by go-dubya-04
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To: Gorzaloon
the Ford 3.8 V6 with self-dissolving head gaskets

I'll never forget -- plus the obnoxiousness of Ford in "taking care" of the problem.

No more Detroit iron!

116 posted on 01/08/2007 9:32:41 AM PST by Bernard Marx
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To: advertising guy

What's the "Chevy walk around" Thanks in advance for the info.


117 posted on 01/08/2007 9:33:42 AM PST by go-dubya-04
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To: go-dubya-04

dealer to dealer coached walk around of the product's features and benefits. Once won locally, then there is regional ( 5ish states winners) the the finals( all that's left)......I won the national last year and 2nd this year


118 posted on 01/08/2007 9:39:53 AM PST by advertising guy (If computer skills named us, I'd be back-space delete.)
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To: the OlLine Rebel
Plus, you just can't get serious SIZE or POWER with non-American cars/trucks (I am dead serious about that). Power is important in a truck! These people don't understand BIG. That could be seen right away in the 1st "serious" Jap truck, T100. Couldn't bear to build a full-size cab to match the rest

You probably say "super size me" every time you get fast food as well, whether you need it or not. Power is important in some trucks, but not all trucks. It all depends on what you intend to do with it. If your only going to use all that power a few times over the time you own it, your better off renting a commercial truck when you need it. Toyota took their time learning about how Americans use their trucks. The last model of the Tundra was for the truck owners that do haul stuff, but also drive their trucks to get where they are going. Having all that power to go back and forth to work everyday is a waste of money pumped into the gas tank. Also, what good is the extra power when the truck it's attached to becomes a rattle trap after 2 years? In another month or so, Toyota is coming out with the new Tundra. It's bigger and more powerful than the last, but don't worry, you will still be able to go to Ford, Chevy and Dodge and say "super size me", and get something that's bigger, just not as good.

119 posted on 01/08/2007 10:09:51 AM PST by Dixie Yooper (Ephesians 6:11)
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To: Gorzaloon
That 5% difference is we old goats who remember the exploding Pintos and Fieros,the Corvair (Yes, I had one), the Ford 3.8 V6 with self-dissolving head gaskets, GM V-8's that had pressed-in rocker studs, and other tributes to cost-driven "engineering".

Now, now...........Let's spread the credit around: Remember the Audi and its infamous "unintended acceleration"? I had an Audi(VW Fox) and it was the biggest POS I ever owned. Still would never buy one of those things.

120 posted on 01/08/2007 10:58:00 AM PST by doorgunner69
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