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Hurricane Sandy Heightens Sales Divide Between Detroit & Foreign Automakers


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http://www.thecarconnection.com/news/1080930_hurricane-sandy-heightens-sales-divide-between-detroit-foreign-automakers?fbfanpage

 

Ford, for example, estimates that Sandy will generate an additional 20,000 to 30,000 new vehicle sales. Undoubtedly, Ford feels a great deal of compassion for the storm's victims, which is why the automaker -- along with many others -- has contributed so much to the recovery efforts. But the jump in sales is a silver lining, no?

Well, yes and no. While the sales undoubtedly help Ford dealers, they also exacerbate a growing problem: Detroit's declining market share, particularly in the northeast. Last year, Ford held 16.7% of the U.S. market, but as of November 30, that figure had dropped to 15.5%.

 

Interesting.,...

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Most of the gains from the Tsunami "opportunity" are now being wiped out, which is part of the problem right now. Ford has regained an image problem with the recent quality woes, which is now a well known quantity at this point and will continue to worsen going forward before they get better.

 

What is the truck marketshare doing, is it growing, stagnant, or shrinking? There seems to be a trend away from trucks as daily drivers, a luxury that no longer interests as many people as expenses rise. This is where Ford stands to suffer the most which is a scary thought.

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Most of the gains from the Tsunami "opportunity" are now being wiped out, which is part of the problem right now. Ford has regained an image problem with the recent quality woes, which is now a well known quantity at this point and will continue to worsen going forward before they get better.

 

What is the truck marketshare doing, is it growing, stagnant, or shrinking? There seems to be a trend away from trucks as daily drivers, a luxury that no longer interests as many people as expenses rise. This is where Ford stands to suffer the most which is a scary thought.

 

After all the dust has settled last couple years, looks to me like Asians and Germans are continuing to gobble up market share at domestic expense. I look for Ford, GM, and Chrysler to continue to lose market share in 2013 and beyond. Certainly Ford's latest problems will not help. Domestics have stronger car lineup, but they still lose market share. And they still have higher incentives than Asians and most German vehicles. All I can do is continue to buy domestic, but the future doesn't look particularly bright for domestics.

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After all the dust has settled last couple years, looks to me like Asians and Germans are continuing to gobble up market share at domestic expense. I look for Ford, GM, and Chrysler to continue to lose market share in 2013 and beyond. Certainly Ford's latest problems will not help. Domestics have stronger car lineup, but they still lose market share. And they still have higher incentives than Asians and most German vehicles. All I can do is continue to buy domestic, but the future doesn't look particularly bright for domestics.

 

GM and Ford had much higher market share in 2007 yet they were losing BILLIONS. Now they're MAKING billions despite lower market share.

 

You still don't understand this profit thing, do you?

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