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Saying people don't buy American cars anymore would be a false statement. Americans still buy American cars just not like we used to. The Big Four manufactures at date are GM :makers of Chevy, Buick, GMC, Saturn, Pontiac, etc., Ford, Toyota, and Honda. But our domestic manufacturers are in trouble. Sales reports released mid February show Toyota very close to taking over GM as the world's biggest vehicle manufacturer. The final blow will probably come with the release of Toyota's fiscal year end figures three months from now.
Back to the main point, why don't people buy American cars anymore? Common cents, I mean sense. First reason is one a personal buyer will make. Companies like Toyota and Honda have mastered the art of making dependable vehicles and dependable vehicles don't depreciate. Chevy cars that are just five years old usually resell around $6,000. A five year old Honda? $8-10,000. With the economy down new car buyers cannot afford the interest paid on new cars plus that kind of depreciation when they go to resell it. And, used car buyers cannot afford to keep repairing a car on it's last leg so they are more willing to shell out cash upfront for a more dependable car with 200,000 miles still left in it. Although American cars have muscle and the brutish spunk that characterizes our nation, we can't afford that kind of look good.
If the payment didn't sway the buyer gas prices often will. The bottom line is American companies aren't making environmental and economical changes like the Japanese are. Ford, decided not to manufacture a sub compact this year like Toyota (Yaris), Honda (Fit), and even Chevy (Aveo.) Whether we make the choice to save money, lower dependency on foreign oil, or help the environment, the domestic manufacturers aren't as serious about change as we are. Not to mention they have closed in their market by doing so. While Toyota can sell all the cars they want to Americans, domestic manufacturers can't sell any of our cars in other developed nations. Every other country has standards requiring new cars get 35 mpg or more and our vehicles don't make the cut.
On a competitive scale the Japanese have learned what Americans want. Even though our conscious leads us to fuel efficiency, truck and SUV sales still hold the biggest chuck of the American market. Years ago if you wanted a good truck you'd think F-150 or Silverado. Now some names that might come to mind are Tundra, Titan, or Ridgeline. These trucks are even more durable from the engine to the bed than Americans are making them.
I wish I could say that Detroit is doing well. But with a total disregard to national, company, and buyer's economics they have dug their own grave. What might cause a turn around? Well, don't get excited it wont create American jobs. They need to create more dependable fuel efficient vehicles. And, most of the resources for more dependable cars would come from overseas. By the way, if you do happen to pride yourself in buying American made, take a look at the manufacturer code on your door or run your VIN. Chances are you're paying a Canadian top dollar to assemble your vehicle.
Learn more about this author, Erica Fields.
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