Nissan outsells Ford worldwide
Tue Nov 11, 7:07 AM ET Add Business - USATODAY.com
By David Kiley, USA TODAY
Nissan (TM) outsold Ford Motor (F) worldwide in the last six months for the first time, and import automakers likely will grab a record of more than 25% of U.S. truck sales this year, both signs of the continuing challenge domestic automakers face from abroad.
Among the worries for Detroit is the image that the surge by foreign automakers creates. Consumers might not consciously buy brands based on sales trends, but marketing and auto industry analysts agree that bragging rights matter.
"The imports have tremendous momentum, and that is expanding the image gap between Detroit and companies like Nissan and Toyota," says Jeff Schuster of research firm J.D. Power and Associates.
"Sales leadership matters to dealers, employees and ultimately the customers in how they think about the company selling them a car," says Joe Phillippi of AutoTrends Consulting. "Consumers like brands that win."
General Motors (GM), Ford and Chrysler Group (DCX) , struggling to make any profit this year from auto sales, are hoping for an image rebound with an onslaught of new products in 2004 and 2005. Ford and Chrysler are each launching 10 products in 2004. GM has 29 products hitting the market in 2004 and 2005.
But even if the cars and trucks are successful, the slide in image won't reverse overnight.
"Moving our brand image only happens with new product, and it won't happen from one month to another," acknowledges Chrysler CEO Dieter Zetsche. "It will take many years."
Passing Ford globally — or Chrysler in U.S. sales, as it did in August — is a symbolic milestone for Nissan. But for the U.S. automakers, losing truck share to rivals is a harsher financial reality, because what scant profits U.S. automakers earn today from auto sales come entirely from pickups and sport-utility vehicles.
From 1990 to 1998, domestic brands had at least 83% of the truck market. In October, that share reached a low of 73%. Nissan, for one, has added SUV models faster than GM's Chevy division or the Ford brand, despite having a smaller market share.
"About five years ago, we lost momentum and our focus, and put energy into a lot of other stuff that hasn't put enough new product in the showroom. Lesson learned," says Ford sales analyst George Pipas.
It's not that there is no good news for Detroit. Consumer Reports recently added a flock of GM and Ford models to its recommended list. Several GM models beat Nissan and Toyota (HMC) models on Power's survey of problems in the first 90 days of ownership. Chevy sells more vehicles priced above $30,000 than any other car company because of the popularity of its top-priced pickups and SUVs.
But in every category except pickups and large SUVs, U.S. automakers are playing catch-up in image with smaller rivals.
"Imports crossing the 25% mark in trucks has to be a wake-up call for Detroit," says J.D. Power's Schuster.
I think they have their stock symbols mixed up. HMC is Honda, and they used it as Toyota.
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"I swear Boris, if you didnt have bad luck you sure as hell wouldnt have any at all"-Nostrodomas, story of my life
Lewis Black quote of the Week:
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Originally posted by Exalta Too bad, I thought Nissan was on its way to recovery.....Thanks a lot to Renault
ummm....Nissan is doing a HELL of a lot better now then it was in the dark ages (late '90s) thanks to Carlos Ghosn and Renault.
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