Jump to content
Create New...
  • William Maley
    William Maley

    Why Automakers Want To Break Into the U.S.

      America is a difficult place to break in for automakers. So why do a number still want to try?

    America. The land of opportunity. Various automakers around the world want to get in on this very lucrative marketplace. But as Automotive News notes, trying to break into the U.S. marketplace is close to mission impossible.

    Automakers who don't compete in the U.S. see numbers like "16-million-plus sales volume of new cars and trucks" and "average transaction price of $30,665, according to J.D. Power" and want a piece of this. But the U.S. is an unforgiving place.

    "People around the world look at the sales volumes going on here, and they look at the fortunes being made here, and they look at what the outlook is in other parts of the world -- and they want to be here," said Charlie Hughes, owner of the brand-consulting firm Brand Rules.

    "But the plain truth is that unless you're coming in with something truly unique, it is just not plausible that you're going to get anywhere in this market."

    (Author's note: Also, having a bit of luck isn't a bad thing to have either. -WM)

    Hughes isn't wrong. Automotive News says there are 42 automotive brands that sell 283 nameplates in various models and configurations. Trying to get the attention of a consumer, let alone a large number is a difficult task. Just ask Alfa Romeo and Fiat who are currently struggling in the U.S.

    One only needs to look at the list of automakers that have packed up left in the past 20 years - Daewoo, Isuzu, and Suzuki. Others haven't even made it to the shore - China's Chery and India's Mahindra.

    But that isn't deterring a large number of automakers to give it a shot. Here is the current list of automakers that are currently planning entry to the U.S.

    • PSA Group - parent company of Citroën, DS, and Peugeot - has announced plans for a U.S. launch. But it will be a slow rollout beginning with ride sharing service. The company will also conduct a research project to see if it is viable for them to make a launch.
    • Skoda - a brand under the Volkswagen Group umbrella - is reportedly going to make a decision on whether to come in the U.S. next year.
    • Ssangyong Motor Co., a South Korean builder of crossovers has announced that it will enter the U.S. in 2020
    • Geely Automobile is planning to launch a new brand known as Lynk & Co with the possibility of entering the U.S. No word on a possible date.
    • Alkane Truck Co., a company based in South Carolina plans on building the Dominator, a truck using the chassis of a Brazilian army truck and various components from the U.S. CEO Bob Smith believes this vehicle will fill a niche left by the Hummer H1.

    "If all you're going to do is enter this market offering the same thing everyone else is already offering, you might as well save your money. The U.S. auto industry is a very expensive place to do business," said Hughes.

    Source: Automotive News (Subscription Required)

    Edited by William Maley

    User Feedback

    Recommended Comments



    Join the conversation

    You can post now and register later. If you have an account, sign in now to post with your account.
    Note: Your post will require moderator approval before it will be visible.

    Guest
    Add a comment...

    ×   Pasted as rich text.   Paste as plain text instead

      Only 75 emoji are allowed.

    ×   Your link has been automatically embedded.   Display as a link instead

    ×   Your previous content has been restored.   Clear editor

    ×   You cannot paste images directly. Upload or insert images from URL.


  • google-news-icon.png



  • google-news-icon.png

  • Subscribe to Cheers & Gears

    Cheers and Gears Logo

    Since 2001 we've brought you real content and honest opinions, not AI-generated stuff with no feeling or opinions influenced by the manufacturers.

    Please consider subscribing. Subscriptions can be as little as $1.75 a month, and a paid subscription drops most ads.*
     

    You can view subscription options here.

    *a very limited number of ads contain special coupon deals for our members and will show

  • Similar Content

  • Posts

    • Argh.  This is a question I almost want to avoid. The A380 is incredible.  Yes, I had a roundtrip through AA on British.  They have a small economy section at the back, upstairs.  Then I flew a one way from Italy to New York-JFK on an Emirates "fifth freedom" flight segment.  They have economy taking the entire main level, with none upstairs. Economy seats are a little wider on the A380 ... definitely on Emirates, at least.  It was an outstanding flight because of that.  On British, I paid for an economy seat upstairs and the curvature of the exterior translates into windows that are too sloped and with an odd and bigger void in between the cabin and the exterior.  I will be sitting downstairs if there is a future flight on one. The 747-8 isn't as comfortable in economy because the seats are traditional economy width.  I feel more comfortable in one because I know it.  It's also much more photogenic all the way around.  You feel good when it pulls up to the gate and you see that beautiful and proportioned machine through the big glass windows. The humidification is good on both planes. It's really sad that no more passenger quadjets are being produced.  It's easier to get onto an A380 if Europe bound (British, Lufthansa, Emirates, and others via connections, with Air France holding back).  For a 747-8, Lufthansa is the only choice and I am grateful to them for that.
    • My car has a supposed 525 mile highway crusing range on a full tank (19.5 gallons).   I haven't fully tested that since I tend to fill up at 1/2 tank when on road trips..but I have recorded averages of 29.5 and 30 mpg on road trips, which is pretty good for a comfortable 4200lb AWD sedan..
    • @trinacriabob in your flying in recent years, have you had a trip on an A380?    If so, how does it compare to the larger Boeings? 
    • Right.  It's not the aircraft themselves, but the haste and sloppiness.  ("Haste makes waste.")  This 777 X is ambitious and the folding wingtips are novel.  They will be very late with delivering this plane.  I now like some Boeing and some Airbus.  It's a mix.  In the recent past, I took a ride on a Boeing 787 Dreamliner and I definitely like it more than the Airbus 350 (even though the Airbus 350 has that photogenic curved winglets).  The cabin fatigue from flying is much reduced on the Dreamliner. Yesterday, I was on two domestic Boeing 737 Max 8 segments back to back on Southwest.  I like its newer features - ambient lighting, larger bins, a little quieter.  So, if it's working, it's a very nice rendition of the 737.  It's too bad that their newest version of this storied workhorse had to be tainted.  I get on and sigh.  If it keeps a clean track record going forward, people may be less weirded out as the statistics may become better. It is.  However, I'm not a fan of the leg design, which is also now popular on sofas.  The biggest turnoff for me in sofas - when I bought a sleeper for another room with the last stimulus money - was the amount of product that had nailheads all over the place.
  • Who's Online (See full list)

    • There are no registered users currently online
  • My Clubs

×
×
  • Create New...

Hey there, we noticed you're using an ad-blocker. We're a small site that is supported by ads or subscriptions. We rely on these to pay for server costs and vehicle reviews.  Please consider whitelisting us in your ad-blocker, or if you really like what you see, you can pick up one of our subscriptions for just $1.75 a month or $15 a year. It may not seem like a lot, but it goes a long way to help support real, honest content, that isn't generated by an AI bot.

See you out there.

Drew
Editor-in-Chief

Write what you are looking for and press enter or click the search icon to begin your search