Competitive to a point
tokyogai
9/19/2011 8:56:28 AM
I agree with the assessment that the auto market has become more competitive, but I wonder how long things can remain as they are. The domestic makers are still lacking in the high fuel economy segment, although they are getting better. the SUV revival has helped them, but I wonder how long that will cpntinue. The UAW seems to have gotten a few dollars an hour out of GM for starting employees and it seems that Ford and Chrysler will have to follow. This will eventually impact prices and may take away some of the progress achieved in market share. The only way to hang on to the gains is to stay competitive.
Re: Competitive to a point
TelecomFreq
9/19/2011 10:56:10 AM
The market is definatly more competitive and the American auto makers seem to be moving in the right direction. But if the UAW is not carefull it could put a hault to all of that. I understand that their job is the represent the workers, but if they starting pushing for too much then there will be no jobs left to protect because all the american auto workers will be stocking shelves at walmart.
This is the first time in a long time I am excited about american made cars and am considering getting one.
Re: Competitive to a point
Phoenix
9/19/2011 10:59:09 AM
The domestic brands should never underestimate the competition from the Japanese car makers. They may have lost market share but Japan is known for it's resilience. The economic conditions don't seem to be improving so people will continue to want more fuel efficient smaller vehicles as mentioned. The domestic makers will have to cater more to this market.
Re: Competitive to a point
TelecomFreq
9/19/2011 11:07:18 AM
I also dont think the American auto companies should count out the Korean car makers. Both Kia and Hyundai have nice line ups that offer some good fuel economy.
Re: Competitive to a point
Phoenix
9/19/2011 11:26:32 AM
I agree. The Korean makers are doing really well. I'm amazed at how well they have gained market share from more established makers over the years.
Re: Competitive to a point
TelecomFreq
9/19/2011 11:38:59 AM
It really has been surprising, I can remember back in college no one really though much of Korean cars, but last year when we were looking for a new mini-van and were shopping around we were really surprised by the quality and price of the Kia.
Re: Competitive to a point
Sherri Cruz
9/19/2011 12:14:27 PM
Hyundai and Kia's North American headquarters are in my backyard, so I've been able to observe them. They really went all out in the thick of the recession as far as marketing "value," plus auto industry experts say they have a quality product to back it up. Should be fun to watch going forward, now that domestics seem to be making headway in the small car market.
Re: Competitive to a point
mInvestor
9/19/2011 12:21:19 PM
You guys are right on the point. Korean cars were considered low-end alternatives 10 years ago. And now they are doing very well. More and more people think they can even compete with Japenese cars even on fuel effeciency and reliablity. Interestingly, similar things happened in consumer electronics field. If you go to Best-buy or any major stores, you can find plenty of good TVs, smart phones etc made by Samsung or LG. I'd say Korea made a big progress in certain fields in the past 10 years.
Re: Competitive to a point
TelecomFreq
9/19/2011 1:32:51 PM
Very good point, the CE market is full of top of the line Korean products.
I think it will be interesting to see the impact that companies from China have on the auto market once they start opening dealerships in the US.
Maybe Americans should be more focussed on saving???
back2basicz
9/19/2011 1:35:03 PM
Guys,
I know this sounds like an alien concept to most,but maybe Americans should be focussed(entirely in my opinion) on reducing rather than further increasing their personal debt burdens.
If they have perfectly good quality(and which work well) cars in the lot;exchanging them for another just should'nt be high on the agenda right now;
I know this flies in the face of Obama's big plan to boost growth but that's just the way I see it.
You need to be able to either pay off or write down the Debt to see Debt piles reduce and ensure our Current financial system has some meaning today.
Regards
Ashish.
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