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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: doorgunner69

Audi's "unintended acceleration" problem was the result of a number of things. A small FI glitch that could raise idle levels, a set of pedals located slightly more to the left than on other cars, and idiot drivers who put cars in gear without their foot on the brake pedal, and then pushed the gas pedal as hard as they could to stop the car. Then "60 Minutes" hired a guy to rig up an Audi auto transmission so that internal hydraulic pressure could feed back through the throttle linkage, not something that could ever happen by accident, and passed it off as proof of the problem. More honest reporting from the MSM.

Having said that, I'm not disagreeing that Audis of that time (and maybe even still) were big POS. I remember helping a friend install a car stereo in an Audi 5000 - the freaking battery was under the rear seat. Real handy, huh?


121 posted on 01/08/2007 11:18:22 AM PST by -YYZ-
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To: Bernard Marx

**No more Detroit iron!**

My last (and I do mean last) purchase of an American car was a 1988 Ford Taurus.

Replaced TWO transmissions and a short block before 65K miles.

Now own 2 Toyotas. 1 4WD pickup, and 1 Corolla.

Couldn't be happier.


122 posted on 01/08/2007 11:19:33 AM PST by EEDUDE
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To: Dixie Yooper

Oh please!

Like I said, big Americans can't fit right in those cars. The T100 was wedged far inward so the roof itself was narrower than the hip line. Never mind the head room stinks.

As for this so-called reliability, you'll see plenty 20 and 30-yo Fords and Chevies around doing REAL work on farms and stuff, never mind other heavy-duty work.

Working in auto parts for 6 years, it became apparent to me that the main reason Jap cars lasted was because the owners were babying the cars with the "always change the oil" routine (which, BTW, in newer cars should NOT be lower than the old 7500 mi standard). As the old man who worked there used to say "the key to reliability is changing the oil". We as a family didn't with our American cars (I still don't do it every 3000 mi, but every year). But babying these allegedly modern high-tech cars with new oil ever 3000 mi surely puts them in a good situation.

Some cars last despite getting virtually no oil, or no anti-freeze change, or anything. Didn't seem typical of the tiny-car owners.


123 posted on 01/08/2007 11:36:20 AM PST by the OlLine Rebel (Common sense is an uncommon virtue.)
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To: Eric in the Ozarks

They're supposed to be putting a MB turbo-diesel in the Jeep Grand Cherokee within a year. We'll wait and see.


124 posted on 01/08/2007 11:43:03 AM PST by hubbubhubbub
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To: hubbubhubbub
What's wrong with the Cummings ?
125 posted on 01/08/2007 11:50:48 AM PST by Eric in the Ozarks (BTUs are my Beat.)
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To: Flavius

Justin Watson sounds like a reasonable guy.


126 posted on 01/08/2007 11:54:59 AM PST by wastedyears ("By failing to prepare, you are preparing to fail." - Benjamin Franklin)
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To: Dixie Yooper
They lost this war back in the early 80's.

Exactly...perception lags reality. The domestics could be just as good as the imports, and the perception would lag.

Of course, this was a benefit to the Big 3 in the '70's, 80's and '90's, because the perception lagged the reality...and the reality was the Chevy Vega, the cobbled together Detroit Diesel, the Pinto, any given Chrysler product, etc.

127 posted on 01/08/2007 12:01:29 PM PST by gogeo (Irony is not one of Islam's core competencies (thx Pharmboy))
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To: 1rudeboy
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.

LOL. I bet Hertz had that car right back out on the road a few hours later. Something to think about the next time someone suggests buying a used car from a rental company.

128 posted on 01/08/2007 12:04:39 PM PST by jalisco555 ("Dogs look up to us, cats look down on us and pigs treat us as equals" Winston Churchill)
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To: gogeo
any given Chrysler product, etc.

I bet you were trying to remember the Cricket, weren't you!!! It's hard to believe the Pinto was the best of those three, until one dark night on an Indiana highway near Elkhart.

129 posted on 01/08/2007 12:13:50 PM PST by Dixie Yooper (Ephesians 6:11)
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To: Eric in the Ozarks

The Cummins engine weighs around 1000 pounds all by itself. Not the best choice for lightweight off-road vehicles.


130 posted on 01/08/2007 12:43:26 PM PST by Little Pig (Is it time for "Cowboys and Muslims" yet?)
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To: Eric in the Ozarks

Nothing. What's the relevance of your question?


131 posted on 01/09/2007 5:45:00 AM PST by hubbubhubbub
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To: longtermmemmory
This is about keeping the unions alive.

Bingo. We have a winner.

I will never, ever, ever buy a union-made car again.

132 posted on 01/09/2007 5:49:49 AM PST by cicero's_son
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To: longtermmemmory
This is about keeping the unions alive.

Bingo. We have a winner.

I will never, ever, ever buy a union-made car again.

133 posted on 01/09/2007 5:49:50 AM PST by cicero's_son
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To: hubbubhubbub

As opposed to a locally made oil burner.


134 posted on 01/09/2007 6:23:42 AM PST by Eric in the Ozarks (BTUs are my Beat.)
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To: Eric in the Ozarks

You've lost me. Don't know what the hell you're talking about.


135 posted on 01/09/2007 7:14:19 AM PST by hubbubhubbub
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To: PSYCHO-FREEP

I'll never own a diesel with 100K overhaul cycle (and aluminum heads on a iron block).... that's just a waste of money. Seriously, why spend the xtra 6k on a small duty diesel when you can have a medium duty one that doesn't need an overhaul until 300k???

The Allison is not all that. It has it's fare share of documented issues as well.

my advice.. lay off the marketing gimmicks.


136 posted on 01/10/2007 1:13:36 PM PST by fhlh (Liberal (noun): A person so open minded, their brains have fallen out of their head.)
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To: advertising guy

no no ... haven't you seen the posts claiming 20mpg :)


137 posted on 01/10/2007 1:15:15 PM PST by fhlh (Liberal (noun): A person so open minded, their brains have fallen out of their head.)
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To: the OlLine Rebel

the new 08 tundra will have a 370+ HP 5.7l v8 option....

if they ever build a 3/4 to 1-ton tundra with a turbo diesel... I might just go out and get one


138 posted on 01/10/2007 1:17:15 PM PST by fhlh (Liberal (noun): A person so open minded, their brains have fallen out of their head.)
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To: Flavius

I don't care how "good" people say Japanese branded cars are. My personal experience says otherwise. I've owned GM, Ford, and Nissan branded vehicles. I would rate the Nissan lower than the GM in overall satisfaction. That said, I have been driving Ford trucks since the late 80's and am very satisfied. The Jap cars seem to lack something, charm, character, maybe soul.


139 posted on 01/10/2007 1:22:46 PM PST by 38special (I mean come'on.)
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