Jump to content
Sign in to follow this  
William Maley

Industry News: Why Automakers Want To Break Into the U.S.

Recommended Posts

America. The land of opportunity. Various automakers around the world want to get in on this very lucrative marketplace. But as Automotive News notes, trying to break into the U.S. marketplace is close to mission impossible.

Automakers who don't compete in the U.S. see numbers like "16-million-plus sales volume of new cars and trucks" and "average transaction price of $30,665, according to J.D. Power" and want a piece of this. But the U.S. is an unforgiving place.

"People around the world look at the sales volumes going on here, and they look at the fortunes being made here, and they look at what the outlook is in other parts of the world -- and they want to be here," said Charlie Hughes, owner of the brand-consulting firm Brand Rules.

"But the plain truth is that unless you're coming in with something truly unique, it is just not plausible that you're going to get anywhere in this market."

(Author's note: Also, having a bit of luck isn't a bad thing to have either. -WM)

Hughes isn't wrong. Automotive News says there are 42 automotive brands that sell 283 nameplates in various models and configurations. Trying to get the attention of a consumer, let alone a large number is a difficult task. Just ask Alfa Romeo and Fiat who are currently struggling in the U.S.

One only needs to look at the list of automakers that have packed up left in the past 20 years - Daewoo, Isuzu, and Suzuki. Others haven't even made it to the shore - China's Chery and India's Mahindra.

But that isn't deterring a large number of automakers to give it a shot. Here is the current list of automakers that are currently planning entry to the U.S.

  • PSA Group - parent company of Citroën, DS, and Peugeot - has announced plans for a U.S. launch. But it will be a slow rollout beginning with ride sharing service. The company will also conduct a research project to see if it is viable for them to make a launch.
  • Skoda - a brand under the Volkswagen Group umbrella - is reportedly going to make a decision on whether to come in the U.S. next year.
  • Ssangyong Motor Co., a South Korean builder of crossovers has announced that it will enter the U.S. in 2020
  • Geely Automobile is planning to launch a new brand known as Lynk & Co with the possibility of entering the U.S. No word on a possible date.
  • Alkane Truck Co., a company based in South Carolina plans on building the Dominator, a truck using the chassis of a Brazilian army truck and various components from the U.S. CEO Bob Smith believes this vehicle will fill a niche left by the Hummer H1.

"If all you're going to do is enter this market offering the same thing everyone else is already offering, you might as well save your money. The U.S. auto industry is a very expensive place to do business," said Hughes.

Source: Automotive News (Subscription Required)


View full article

Share this post


Link to post
Share on other sites

Your content will need to be approved by a moderator

Guest
You are commenting as a guest. If you have an account, please sign in.
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoticons maximum are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Sign in to follow this  



  • Today's Birthdays

    No users celebrating today.
  • Similar Content

    • By William Maley
      Tesla's production hell seems to be only getting worse than better. Various issues at their Freemont plant has caused the automaker to push back their goal of producing 5,000 Model 3s from late last year to June of this year. This, in turn, has caused some holders of Model 3 reservations to have their order pushed back to 2019.
      “As we work hard to meet demand, we wanted to let you know that your estimated delivery timing has been adjusted to a slightly later window,” Tesla said in an email to customers.
      According to Bloomberg, the new date depends on when the reservation was placed and what model was chosen. Tesla is trying to get the more expensive long-range battery model out first before starting production of the cheaper standard battery model. This has buyers of the latter model worried as they might not get the full $7,500 tax credit. The credit begins to phase out once an automaker has built 200,000, something Tesla expects to hit sometime this year.
      The move has caused some reservation holders to take to various forums and Twitter to complain. Others are deciding to jump ship and buy a Chevrolet Bolt. Reuters reports that Chevrolet dealers in California are seeing a noticeable increase of Tesla shoppers interested in the Bolt.
      “We’re getting the Tesla people who wanted their Model 3. We ask them, ‘What other cars are you interested in?’ They’re mostly Tesla. But they want the car now. They don’t want to wait,” said Yev Kaplinskiy of Stewart Chevrolet.
      Kaplinskiy said they sold 15 Bolts last weekend.
      Chevrolet is taking advantage of the delay by emailing some prospective buyers this week with the message of, “Bolt EV: Now available.”
      Source: Bloomberg, Reuters

      View full article
    • By William Maley
      Tesla's production hell seems to be only getting worse than better. Various issues at their Freemont plant has caused the automaker to push back their goal of producing 5,000 Model 3s from late last year to June of this year. This, in turn, has caused some holders of Model 3 reservations to have their order pushed back to 2019.
      “As we work hard to meet demand, we wanted to let you know that your estimated delivery timing has been adjusted to a slightly later window,” Tesla said in an email to customers.
      According to Bloomberg, the new date depends on when the reservation was placed and what model was chosen. Tesla is trying to get the more expensive long-range battery model out first before starting production of the cheaper standard battery model. This has buyers of the latter model worried as they might not get the full $7,500 tax credit. The credit begins to phase out once an automaker has built 200,000, something Tesla expects to hit sometime this year.
      The move has caused some reservation holders to take to various forums and Twitter to complain. Others are deciding to jump ship and buy a Chevrolet Bolt. Reuters reports that Chevrolet dealers in California are seeing a noticeable increase of Tesla shoppers interested in the Bolt.
      “We’re getting the Tesla people who wanted their Model 3. We ask them, ‘What other cars are you interested in?’ They’re mostly Tesla. But they want the car now. They don’t want to wait,” said Yev Kaplinskiy of Stewart Chevrolet.
      Kaplinskiy said they sold 15 Bolts last weekend.
      Chevrolet is taking advantage of the delay by emailing some prospective buyers this week with the message of, “Bolt EV: Now available.”
      Source: Bloomberg, Reuters
    • By William Maley
      If you have been following auto sales for the past few years, then you know that SUVs and trucks currently dominate the sales charts partly due to the low gas prices. This is especially true when it comes to the luxury segment, where utility models are eating sedans. But a new report from The New York Times reveals that American automakers are eating the lunches of luxury car manufacturers. 
      According to data from Edmunds, the likes of Ford, Chevrolet, and GMC have seen their share of domestic sales of models with an average price of $60,000 steadily climbing, while luxury brands like Mercedes-Benz, Porsche, and Lexus have been declining. GMC, in particular, has shown the largest growth, accounting 11.3 percent of domestic sales of $60,000-plus models in 2017. Five years ago, the brand only made up 0.1 percent of those sales. A lot of this credit can be laid at the feet of GMC's Denali brands. At a recent investor conference, GM showed data that the Denali line had an average sale price of $56,000 - more than the average price of an Audi, BMW, or Mercedes-Benz.
      “This thing is a money machine,” said GM's president Dan Ammann about Denali.
      Over at Ford, more than half of F-150 sales are made up by the Lariat, King Ranch, Raptor models. Only a few years ago, those models made up a third.
      Why are American automakers seeing a massive increase in expensive SUVs and trucks? Part of it comes down to price, but there is also the image.
      “We’ve been taking in Lexuses on trade-ins, BMWs," said Gary Gilchrist, owner of a GMC dealer in Tacoma, Washington.
      “People used to want German cars for the image factor. Now, if you have a Denali, you get that. People turn their heads to look.”
      Source: New York Times

      View full article
    • By William Maley
      If you have been following auto sales for the past few years, then you know that SUVs and trucks currently dominate the sales charts partly due to the low gas prices. This is especially true when it comes to the luxury segment, where utility models are eating sedans. But a new report from The New York Times reveals that American automakers are eating the lunches of luxury car manufacturers. 
      According to data from Edmunds, the likes of Ford, Chevrolet, and GMC have seen their share of domestic sales of models with an average price of $60,000 steadily climbing, while luxury brands like Mercedes-Benz, Porsche, and Lexus have been declining. GMC, in particular, has shown the largest growth, accounting 11.3 percent of domestic sales of $60,000-plus models in 2017. Five years ago, the brand only made up 0.1 percent of those sales. A lot of this credit can be laid at the feet of GMC's Denali brands. At a recent investor conference, GM showed data that the Denali line had an average sale price of $56,000 - more than the average price of an Audi, BMW, or Mercedes-Benz.
      “This thing is a money machine,” said GM's president Dan Ammann about Denali.
      Over at Ford, more than half of F-150 sales are made up by the Lariat, King Ranch, Raptor models. Only a few years ago, those models made up a third.
      Why are American automakers seeing a massive increase in expensive SUVs and trucks? Part of it comes down to price, but there is also the image.
      “We’ve been taking in Lexuses on trade-ins, BMWs," said Gary Gilchrist, owner of a GMC dealer in Tacoma, Washington.
      “People used to want German cars for the image factor. Now, if you have a Denali, you get that. People turn their heads to look.”
      Source: New York Times
    • By William Maley
      Mercedes-Benz has finally revealed that it is not planning to sell any more diesel-powered vehicles in the U.S. Speaking with The Detroit Bureau, Mercedes' head of R&D Ola Kallenius said there isn't enough demand for diesels with the three-pointed star - citing they only made up three percent of total sales in their best year. A lot of the decrease can be laid at the Volkswagen diesel emission scandal.
      “The diesel doesn’t fit into our portfolio in the U.S.,” said Kallenius.
      There will be one group of Mercedes-Benz models that will be keeping diesel engines, the Sprinter vans. Sales of these models are continuing to rise.
      Source: The Detroit Bureau

      View full article
  • My Clubs

  • Who's Online (See full list)

About us

CheersandGears.com - Founded 2001

We  Cars

Get in touch

Follow us

Recent tweets

facebook

×