Why Can't American Automobile Manufacturers Compete With Their Foreign Counterparts? (companies, party)
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Aside from the history of japanese cars being more reliable (at least until recently), or the previous obsession with SUVs, it has to do with branding and style. Detroit has made some of the ugliest cars known to man and no one knows why.
That's probably the single largest issue. None of the German, Japanese, or Korean automakers have to pay for health care for workers or, especially, retirees. Those costs are picked up by the state and they're much more affordable on a per person basis since the insurance pool is spread out over the entire population of the country. The wider the insurance pool, the lower the per person costs.
That said, the US has two of the top four automakers in the world (and a large third which is in the top 10) so we're still competing.
American automobiles also tend to have mile-long lists of options and too many colors; if you've ever seen the base model of the Cruze next to a fully-loaded and substantially larger Hyundai Elantra, there's little doubt that, as recent reviews have pointed out, not only is having five different trim models for the Cruze indefensibly asinine and horrible for overhead, but it's horrendously overpriced, brisk sales notwithstanding.
How can an Elantra be "substantially larger" than a Chevy Cruze when it is, in fact, shorter in overall length?
Aside from the history of japanese cars being more reliable (at least until recently), or the previous obsession with SUVs, it has to do with branding and style. Detroit has made some of the ugliest cars known to man and no one knows why.
Come on... tops in ugly are non-American cars. Ever take a good look at a Nissan Cube, a Honda Fit or a SmartForTwo?
The Taurus was the best-selling car for five straight years (1992-96), but the fact that over 60% of those sales were to rental car companies such as Hertz wound up destroying the car's resale value, something that no midsize Japanese sedan such as the Accord or Camry has ever endured, since the Japanese have never flooded rental car lots with their product lest they cheapen the brand, and still refuse to do so to this day, and especially Honda.
US automakers continue to be hamstrung by outsized UAW contracts compared to the competition, which is why none of the overwhelming majority of new car plants opened by foreign automakers in this country (save a Honda Civic plant in southeastern Indiana) over the past several years are in heavily unionized states, or within several hundred miles of Detroit.
I expect the contract negotiations later this year between the Detroit 3 and the UAW to be extremely nasty, and I wouldn't be suprised if the UAW strikes GM, given their multi-decade long practice of being insatiable when ravaging US automakers for unsustainable benefits.
In most quality surveys American cars are consistently on par with foreign car manufacturers.
So in what way are American car manufacturers not competitive?
I think they lost a lot of their market share back in the 1980's when many foreign cars were introduced into the American market. American automobile manufacturers were getting lax with their quality.
I owned a 1983 Chevette and it was the worst car I ever had. Prior to that I owned one of the original Honda Civics and *never* had any trouble with it. Needless to say I traded the Chevy in on another Honda.
Subsequently, I gave American auto manufacturers another chance and was happy with my choice, but many other people who had the same type of experience 20 years ago never did. SO they are still driving Toyotas, and Hondas and other foreign makes.
Aside from the history of japanese cars being more reliable (at least until recently), or the previous obsession with SUVs, it has to do with branding and style. Detroit has made some of the ugliest cars known to man and no one knows why.
That is correct, but some will blame unions for that as well.
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