It is astounding how weak the three Detroit carmakers are in the traditional passenger-car business. The media commonly states that the three US manufacturers now hold less than half the total market--only 43% in July. If you look at cars only and exclude light trucks, such as sport utility vehicles, the numbers are even worse.
In July, for example, General Motors, Ford Motor and Chrysler accounted for only 32% of passenger car sales; foreign car brands grabbed 68%. True, July was an unusually bad month, but even in the first seven months of this year, Detroit took only 36% of the car sales and the foreign nameplates took 64%.
These figures include fleet sales, such as to rental car agencies. Detroit's fleet sales have been large, about 30%, but the industry is trying to cut back on this business because it sells these cars at steep discounts. I would estimate that if we were counting only retail customers, Detroit's share of car sales would be somewhere between 25% and 30%.
How bad is the situation?
Read Article