Imports, Domestics Have Billions at Stake

Buyers' Loyalties Loosen

Owners of Japanese-brand vehicles buy Japanese-brand vehicles. Owners of domestic-brand vehicles buy domestics. So says auto industry wisdom.

But lately, that wisdom isn't such a sure bet.

Consumers have shown a recent willingness to cross-shop outside their traditional habits, according to market monitors. Prodded and lured in one direction by such factors as inventory shortages at import leaders Toyota and Honda, and shooed in the opposite direction by disappearing brands such as Pontiac, Saturn and Mercury, some consumers find themselves unanchored.

The billion-dollar question: Are they changing shopping patterns out of temporary inconvenience, or is a new attitude emerging in the consumer standoff between import and domestic brands?

Compete Inc., an automotive market research firm in Boston, finds that the tendency of Japanese import-brand shoppers to cross-shop Chevrolet, Ford and Dodge has trended steadily upward since the first quarter of 2010.

Similarly, J.D. Power and Associates reports that the percentage of auto shoppers who traded in an Asian import-brand vehicle and bought another one has declined slightly. Asian-brand loyalty dropped from a consistent 80 percent at the beginning of 2010 to 76 percent in third quarter 2011.

These may be modest changes, but they leave the industry uncertain.

'New Sense of Patriotism'

"Something is happening right now; it's just a little hard to say what it is  "There is clearly a new sense of patriotism out there, "We can hear it when we talk to customers."

Patriotism alone won't sell cars: "It's not necessarily causing people to buy Fords; it's causing them to shop Ford. What's causing people to buy Ford is good products."

The past three years of upheaval -- recession, bankruptcies, bailouts, lending crises, fuel-price spikes, Japanese product-quality glitches, disappearing brands and the catastrophic March 11 earthquake in Japan -- has shaken up some consumer habits. Japanese-brand dealers were hit hard this summer by inventory shortages. Nissan rebounded fastest, and its U.S. market share is increasing. Market shares for Toyota and Honda are down from a year ago. At the same time, market shares for Chevrolet, Ford and Dodge are up.

Better Domestics

A big coincidence?   "What's happening, is that the domestic manufacturers are delivering better-quality products right now, with better styling and fuel efficiency. Customers want to come see it.   

Lincoln Merrihew, managing director for transportation at market researcher Compete, believes the domestic brands are partially benefiting from picking up "the leftovers" of domestic brands that were killed -- Saturn, Pontiac, Hummer and Mercury.

But he cites Compete shopper data to say that there is also organic growth. Combined Detroit 3 market share is up more than 2 points for the first nine months of this year, while Japanese-brand share is down nearly 4 points.

Compete tracks online car shoppers from auto site to auto site to see what other vehicles they are considering.

Merrihew says import shoppers were warming to domestic model considerations before the earthquake.

Compete data show that in July the ranking of Chevrolet, Ford or Dodge vehicles for Toyota shoppers was 4.5, meaning typically their fourth or fifth choice. By comparison, in fourth quarter 2009, the Detroit 3 vehicles were a more distant 5.5 choice.

Honda Loyalty Stands Out

Honda shoppers appear to be the most import-loyal of the Japanese market leaders. Compete reports that in December 2009, a Chevrolet, Ford or Dodge vehicle was a seventh-place choice for Honda shoppers. By July, those choices had risen, but only to fifth.

Nissan intenders ventured to a Chevrolet, Ford or Dodge vehicle as their sixth choice in late 2009, according to Compete. By this summer, those choices had risen to about 3.5.

Al Castignetti, vice president of Nissan sales at Nissan North America, says model segment offerings will determine where customers will shop. Because few brands offer minivans, for example, Chrysler minivan shoppers also will consider Nissan's recently reintroduced Quest.  "We look at cross-shop data, and it is different for every segment," he adds. 

Ford's decision to leave the compact pickup business will mean that those owners likely will consider a Nissan Frontier.  Nissan's recently introduced compact sporty crossover, the Juke, "is a white-space product. Therefore, it is drawing shoppers from both sides of the import-domestic aisle.

PUT A SMILE ON A CHILD'S FACE THIS HOLIDAY

Osceola Garage and

Toys for Tots Foundation

Delivering Happiness to Children

This Holiday Season
    

Please help them by donating an unwrapped toy stop down starting November 25th at Osceola Garage and drop off your kind donation. 

U.S. Marine Corps Reserve

Toys for Tots Program
 

MISSION:

 

The mission of the U. S. Marine Corps Reserve Toys for Tots Program is to collect new, unwrapped toys during October, November and December each year, and distribute those toys as Christmas gifts to needy children in the community in which the campaign is conducted.

GOAL:

The primary goal of Toys for Tots is to deliver, through a new toy at Christmas, a message of hope to less fortunate youngsters that will assist them in becoming responsible, productive, patriotic citizens.

OBJECTIVE:

The objectives of Toys for Tots are to help less fortunate children throughout the United States experience the joy of Christmas; to play an active role in the development of one of our nation’s most valuable resources – our children; to unite all members of local communities in a common cause for three months each year during the annual toy collection and distribution campaign; and to contribute to better communities in the future.

ACTIVITIES:

The principal Toys for Tots activity which takes place each year is the collection and distribution of toys in the communities in which a Marine Corps Reserve Unit is located.  In communities without a Reserve Unit, the campaign can be conducted by a Marine Corps League Detachment or group of men and women, generally veteran Marines, authorized by Marine Toys for Tots Foundation to conduct a local Toys for Tots campaign.  Local Toys for Tots Campaign Coordinators conduct an array of activities throughout the year, which include golf tournaments, foot races, bicycle races and other voluntary events designed to increase interest in Toys for Tots, and concurrently generate toys and monetary donations.

Donate Your Vehicle Today!

Cars for Tots will take any vehicle, anywhere in America, running or not. This is an alternative to the hassle of selling or trading-in yourself, and you get a tax deduction and a big thanks from us.   

To donate:  call 877-999-8322 or for details Go to Toys for Tots Vehicle Donation Program.