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Comeback

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Doomed no. But, a comeback is still going to be a hard push for Detroit. American cars ran America for years, but in today's economic environment where money is tight and gas is sky high we aren't fairing well in the market. There are signs of life though. GM gained ground in the market last quarter while Toyota fell. GM and Ford both came out with smaller more efficient vehicles in 2007. But, what are we missing?

Efficiency. Our foreign owned competitor's are still beating us all the way across the board on this one. And no, I don't just mean fuel efficiency. Japanese cars can go longer, harder, and faster than Detroit's cars all on 30 plus MPG. Europe's cars are virtual homes on wheels allowing the driver to multitask and relax simultaneously from the captain's chair. American buyers know that if they buy a Japanese car they will spend less time at the shop and the pump.

What happens when something does go wrong? Warranty! Daimler-Chrysler has finally figured this one out, but a little too late to prevent their recent buyout. Toyota, Hyundai, and Kia are the first three names that come to my mind when I think of warranties. These companies have been slapping warranties on their cars until the wheels fall off. And, they've been doing it for years now. A good sign of the times Chrysler is offering the first lifetime warranty bringing back some face to American automotives.

So what about image? Foreign car companies have been blasting our TVs, radios and billboards with ads for years now and with positive customer feed back it has paid off for them. Americans think of affordable quality when they hear names like Honda and Nissan. What do you think of when you hear Ford? Found On Road Dead. Fix Or Repair Daily. Of course their campaigns never would have worked if the cars weren't good and Detroit's will never work if they don't improve.

Last but not least size of the market. Toyota. Nissan. Honda. These giants are all thriving because their cars and trucks can be sold anywhere in the world to anyone. Detroit's can only be sold in North America. Why? Because every other developed nation in the world has stiffer emissions regulations than ours. Our cars are outlawed for environmental nations. Maybe America wouldn't be the largest consumer of fuel per capita in the world if we could figure this one out. But more realistically, maybe we could sell more cars if we could export them to other nations. Not only would that bring in more sales but stable sales since growth wouldn't be dependent on one economies well being.

So is Detroit doomed? No, absolutely not. But, a comeback is still a long shot as I've already said. We need to improve our image and product simultaneously then wait out the change in perception. All together it will be very costly to an already strained market.

Learn more about this author, Erica Fields.
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