The news is awful for Ford, GM and Chrysler...all U.S. car makers.
The news is good for Toyota and Honda...all foreign car makers.
Why?
My reasoning is simple: Toyota (NYSE: TM) and Honda (NYSE: HMC)have a reputation for quality, longevity, and reliability. It's as simple as that. Ford, GM and Chrysler's designs are largely uninspiring, have questionable reliability and seem to break down around the 80,000 mile mark (I'm sweating it out in my Ford Expedition with 71,000 miles on it!). I know I'm generalizing, but that's partly my point: Toyota, Honda and Nissan have all secured the customer base's feelings of brand security and stability. And that's HUGE when it comes to selling cars.
It's hard to put your finger on exactly what those brands did from an advertising standpoint to work that viewpoint into our minds, but they've done it. Don't get me wrong, I really like my Ford...but I would kill to trade it in for a brand new Nissan Titan or Armada (fuel mileage?...what fuel mileage??).
If American auto makers want to regain their footing in today's market, they really, really, really need to follow the lead of their competition. Emulate their production methods, their design trends, their engineering...
It's time for a complete overhaul of the U.S. car maker brand image, before it's too late.
Comment Preview