It's no secret that U.S. automakers are facing one of their worst sales years in history. J.D. Power & Associates estimates that vehicle sales here will drop to 14.9 million units this year from 16.1 last year.
So, what do the companies have in their arsenals going for the rest of the year to draw consumers into showrooms? Unfortunately, not what consumers want at the moment. Small, fuel-efficient cars are selling like hot cakes. But Detroit is coming out with muscle cars, more sport utilities, and a few crossovers.
Why no cars? Vehicle development cycles take three to four years. So, the products hitting dealerships now started on drawing boards back in 2004 and 2005 when gasoline will still about $2 a gallon.
Another reason is brand identity. As Marl LaNeve, VP of General Motors North America, puts it "We were good in trucks for so long...we don't have the market position and the brand image that we need to...capitalize on this market that we would like to."
Hopefully, that is changing. GM is expected to unveil an improved version of its Chevy Cobalt next year and Ford is expected to bring the Fiesta to market. Chrysler may also be close to inking a deal with China's Chery Motors.
There are also some bright spots in this year's lineup. Chrysler is rolling out its first hybrids. Both are sport utilities. I questioned the wisdom of that, but experts say it makes a lot of sense because SUVs consume more gas than cars. So, hybrid sport utilities save more gallons of gas than hybrid cars.
More crossovers are coming to market as well. Crossovers have the roominess of SUVs, but are built on car platforms instead of trucks. For that reason, they get better gas mileage than sport utilities.
The question is will all of this be too little, too late for the U.S. auto industry? What do you think?
Comments
Unfortunately the dumb, greedy bastards who ineptly run the American auto companies will not suffer when their companies go under. What were they doing with no alternative models? Did they really believe that we would NEVER run out of oil? They deserve to fail and the sooner the better. CEO's need to be princes with knowledge of the entire world not myopic managers whining about making the next quarter's figures to please empty suit financial analysts who wouldn't know a doughnut tire from a Dunkin' Donut.
Vehicle development cycles may take three to four years, but even back in 2004 and 2005 when gasoline will still about $2 a gallon, it was no secret that the environment was in trouble and energy resources are finite and under pressure of world-wide growing demand. This should certainly point out that automakers are not and have never been interested in anything except making a profit. How sad is it that while we complain about global warming, pollution, traffic congestion, and the high price of oil, we are still being sold huge SUVs by the use of an advertising campaign that implies that these things can “turn you on” (sexually?) As long as the competitive marketing of automobiles depends on selling vehicles as status symbols, or things for excitement, fun, and pleasure, the long term energy and pollution problems will continue to get worse.
Just want to say that you did an excellent job on the story about electric and hybrid cars that are being tested. Keep it up. Many of us are waiting for a good alternative to the internal combustion engine.