GM aims to double sales in Japan by 2011

[Intrepidation]

If you think things have been tough for General Motors in America, you should see how bad it's going for them in Japan. Forget pulling out of the Tokyo Motor Show, we're talking a steady sales decline over the past decade that has brought volume to just 2,000 units a year from a high of 50,000 in 1996. That really sucks, so GM wants to try and change things ASAP. They have announced a modest goal of doubling sales in Japan over the next three years.

Part of the problem with Japanese sales is image, but product selection and a shrinking dealer network are also to blame. Rick Brown, president of GM Japan, says they plan to address those issues by adding a couple of dealerships a year, and by shaking up the product mix. They plan to start selling the Chevy Aveo, the new 2010 Camaro, and despite the struggling economy, some new luxury cars and SUVs like the Cadillac CTS Sport Wagon, Saab 9-3X, 9-4X and 9-5.

Even though those products might help, it might be a case of too little too late. Japanese buyers might be even more hesitant than usual to buy cars from the Detroit 3 because of bankruptcy fears. It's not like Ford and Chrysler are doing any better in Japan either, with similar sales declines over the pact ten years. Heck, they aren't even buying as many domestic cars these days.

Source: Autoblog

[FUTURE_OF_GM]

We can't evfen compete there, yet they now OWN our market.

God bless america!

[fightingbee]

IIRC, wasn't the only thing they would really buy there were Astro vans? I know they sold <5K Saturns and few "Toyota" Cavaliers. Course, the fact that they tariff the **** out of our cars over there probably had somthing to do w/ it.

[regfootball]

2x2=4

[ShadowDog]

2x2=4

Or in GMs bean-counter case: 2X2=+/-4(moreplastic)

[smk4565]

2,000 to 4,000 isn't anything to brag about. Toyota sells over 1,000 Camrys per day here. GM need smaller, more fuel efficient, higher quality product if they want to compete overseas. Small cars with 45-50 mpg, not 35, CTS build quality in Aveo to Cobalt sized cars, Malibu LTZ or better interior in a compact, etc.

[PurdueGuy]

Small cars with 45-50 mpg, not 35,

Toyota Corolla: highway mpg: 35.

[Satty]

The Corolla may be a compact, but its not that small. Then again, the Yaris only gets 1mpg better.

[Daryl Z71]

The Corolla may be a compact, but its not that small. Then again, the Yaris only gets 1mpg better.

So why does eveyone think they get so much better mileage than our cars?

[smk4565]

Toyota Corolla: highway mpg: 35.

VW Polo gets 60, BMW 116d gets 52, Prius 46, new Prius 50, Insight probably 50 mpg. It goes beyond Japan, but Europe also. Consumers in those countries expect 35 mpg out of a midsize, and 45-50 in small cars. The cars GM sells here are guzzlers compared to what is sold there, and GM doesn't have a car like the Ford Fiesta yet. GM does big cars and suvs well, but not small stuff, and the 2nd and 3rd world countries are driven by small cars, that is why VW is going to be the #1 automaker in the world by 2015.

[Daryl Z71]

VW Polo gets 60, BMW 116d gets 52, Prius 46, new Prius 50, Insight probably 50 mpg. It goes beyond Japan, but Europe also. Consumers in those countries expect 35 mpg out of a midsize, and 45-50 in small cars. The cars GM sells here are guzzlers compared to what is sold there, and GM doesn't have a car like the Ford Fiesta yet. GM does big cars and suvs well, but not small stuff, and the 2nd and 3rd world countries are driven by small cars, that is why VW is going to be the #1 automaker in the world by 2015.

Yea I have to agree GM does do the Trucks and SUV'S really well.

[smk4565]

Yea I have to agree GM does do the Trucks and SUV'S really well.

And Silverados, Tahoes, Acadais aren't going to sell in Europe or Japan, so they need to do more than one thing well, or they'll keep facing shrinking sales here, and struggle abroad.

[siegen]

The car market in Japan is saturated and shrinking. GM should pull out now.

.

[Chazman]

Well..........................

I guess it's good to have a goal.

[Oracle of Delphi]

From one to two?

[Satty]

So why does eveyone think they get so much better mileage than our cars?

Well the Aveo gets 34 on the highway, lower than the Yaris and Cobalt. Subcompacts are an area of weakness for GM, the Aveo is a cheap Korean &#036;h&#33;box with a boat anchor under the hood. Thats not going to sell in Japan.

[Intrepidation]

Well the Aveo gets 34 on the highway, lower than the Yaris and Cobalt. Subcompacts are an area of weakness for GM, the Aveo is a cheap Korean &#036;h&#33;box with a boat anchor under the hood. Thats not going to sell in Japan.

[Daryl Z71]

Well the Aveo gets 34 on the highway, lower than the Yaris and Cobalt. Subcompacts are an area of weakness for GM, the Aveo is a cheap Korean &#036;h&#33;box with a boat anchor under the hood. Thats not going to sell in Japan.

Yea thats true I guess. They could refine the car and make it alot better than what it is now or even get a new model out, but whos to say the public still doesn't want to buy it then there in even more trouble. Im glad im not making the decisions at GM these days lol!

[2QuickZ's]

VW Polo gets 60, BMW 116d gets 52, Prius 46, new Prius 50, Insight probably 50 mpg. It goes beyond Japan, but Europe also. Consumers in those countries expect 35 mpg out of a midsize, and 45-50 in small cars. The cars GM sells here are guzzlers compared to what is sold there, and GM doesn't have a car like the Ford Fiesta yet. GM does big cars and suvs well, but not small stuff, and the 2nd and 3rd world countries are driven by small cars, that is why VW is going to be the #1 automaker in the world by 2015.

I see you have bought into VW's prediction. I highly doubt they will achieve that goal without a significant market share grab in the U.S. and that just isn't going to happen with the premium pricing model they are using now.

As for the gas mileage figures, the reason you don't see that here is three fold:

1) Americans aren't willing to pay premium prices for a small car unless its something trendy like the Mini

2) Americans aren't willing to put up with 10+ second 0-60 times.

3) Americans will not be into A & B segment cars (and to some degree C segment) with gas under $3/gallon, maybe even under $4/gallon.

That is why CAFE sucks. It doesn't create demand for that type of car but simply artificially inflates supply. If the government wants to push fuel efficient cars, do it with a gas tax, not a CAFE mandate. Of course, a gas tax would be extremely unpopular so it's easier to just do it through CAFE. Its so much easier to make the car companies the scapegoats as opposed to the American car buying public.

[daves87rs]

The car market in Japan is saturated and shrinking. GM should pull out now.

.

Yep.

And we are going to see that trend around the world....

[ZL-1]

So now GM aims to sell 2 cars per year in Japan?

[regfootball]

VW Polo gets 60, BMW 116d gets 52, Prius 46, new Prius 50, Insight probably 50 mpg. It goes beyond Japan, but Europe also. Consumers in those countries expect 35 mpg out of a midsize, and 45-50 in small cars. The cars GM sells here are guzzlers compared to what is sold there, and GM doesn't have a car like the Ford Fiesta yet. GM does big cars and suvs well, but not small stuff, and the 2nd and 3rd world countries are driven by small cars, that is why VW is going to be the #1 automaker in the world by 2015.

even though their quality sucks ass

[regfootball]

From one to two?

he's alive! he's alive! any news to report on that buick astra?

[regfootball]

Well the Aveo gets 34 on the highway, lower than the Yaris and Cobalt. Subcompacts are an area of weakness for GM, the Aveo is a cheap Korean &#036;h&#33;box with a boat anchor under the hood. Thats not going to sell in Japan.

but they buy &#036;h&#33;boxes like the nissan cube. go figure.

[regfootball]

I see you have bought into VW's prediction. I highly doubt they will achieve that goal without a significant market share grab in the U.S. and that just isn't going to happen with the premium pricing model they are using now.

As for the gas mileage figures, the reason you don't see that here is three fold:

1) Americans aren't willing to pay premium prices for a small car unless its something trendy like the Mini

2) Americans aren't willing to put up with 10+ second 0-60 times.

3) Americans will not be into A & B segment cars (and to some degree C segment) with gas under $3/gallon, maybe even under $4/gallon.

That is why CAFE sucks. It doesn't create demand for that type of car but simply artificially inflates supply. If the government wants to push fuel efficient cars, do it with a gas tax, not a CAFE mandate. Of course, a gas tax would be extremely unpopular so it's easier to just do it through CAFE. Its so much easier to make the car companies the scapegoats as opposed to the American car buying public.

the only reason Americans in general will buy small cars is because of cheap operating costs. otherwise they avoid them. very few people want one for the heck of it, unless as you say, item 1 above.

[Oracle of Delphi]

he's alive! he's alive! any news to report on that buick astra?

Was there ever any doubt reg? I'm very busy these days, doing more with less. :AH-HA_wink: Now you know I never kiss and tell, don't you?