2013 Audi A3

Detroit 3 likely to slip below 50% of market

 
1 2,041 views Jul 9, 2007

Detroit 3 likely to slip below 50% of market

Detroit 3 likely to slip below 50% of market

Enlarge Photo
The Detroit 3 carmakers, GM, Chrysler and Ford are teetering on the edge of 50% market share and could slip below the milestone mark by as early as this month. For the end of June, the trio commanded just 50.2% of the US domestic market, down from 56% the year before and a new all time low for the struggling carmakers.

Most of the competition is coming from Japanese brands, which have moved up to a 37.5% share last month and show no sings of slowing with heavy discounting continuing on even the popular models, reports Automotive News.

Now the question is whether or not the Detroit 3 should increase incentives on its own models to help turnaround flagging sales. Unfortunately, most experts agree this will have no effect except to slow it down, in fact, "the chances of it happening next month are better than 70%," says Art Spinella, head of CNW Marketing Research.

In recent months Ford and GM have been reducing incentives and cutting back on fleet sales to improve profit levels but execs didn’t anticipate the weak housing market and unfavourable exchange rates which has since seen sales plummet.



Posted in:
 
Contribute
Send us a tip Comment Contact the editor
Follow Us

 

Have an opinion?Join the conversation!

  • Posting indicates you have read this site's Privacy Policy and Terms of Use
  • Notify me when there are more comments
Comment (1)

  1. By HECTOR Posted: 7/9/2007 7:33am PDT

    I remember reading somewhere that the Puff Daddy edition of the Navigator earned Ford a profit of over $30K on each vehicle. Ah... those were the good times. Then Ford lost over $12B last year and things weren't so funny anymore. What goes around...

    Deep discounting won't do it. Most buyers see Ford changing the name of the Five Hundred to Taurus, Chrysler making the Aspen and GM and their poorly put together vehicles and they know these companies are run by bean counters and marketing whiz kids looking for a quick buck on the next *hot product* and that's it.

    If these companies want to be around in the next hundred years they better make a reasessment of what they stand for.
     
    Post Reply
    Vote
    Bad stuff?

 

Have an opinion?Join the conversation!

Connect with Facebook

Motor Authority. Now with your friends.

Discover stories your friends read.
Share stories more easily.
You control what you share.
Learn more

Research New Cars

Go!


More from High Gear Media

 
 
MotorAuthority
  • Follow Us
  • Twiiter
  • Facebook
 
 
© 2011 MotorAuthority. All Rights Reserved. MotorAuthority is published by High Gear Media. Stock photography by Homestar, LLC. Send us feedback.