gunnut

I actually agree with him for once.

The big 3 invested heavily into SUVs because they were profitable. However, in doing so, they neglected the small car segment. It was a lack for foresight on their part. We all know oil wouldn't stay at $25/barrel forever. People will change their driving habits when gasoline gets expensive, no matter how inelastic the demand seemed to be.

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lastdingo

It's a general problem. Many North American companies are tempted to trust in the size of their home market and ignore the customer demand of other markets.

The result is that they are beaten by better economies of scale and more diversified product portfolios of foreign competitors who consider the North American market as one of several markets.

This happened to many businesses, but at least not to aviation and computer technology and software. The world-wide demand is qualitatively homogeneous for these products.

It's sad that GM has the same problem although it had strong ties to Europe via Opel since the 20's (Opel barely survived American management influence in the 90's and is now a mediocre brand without competitive upper lass cars anymore).

gunnut

The Big 3 has plenty of ties in other parts of the world. GM partially owns(ed) SAAB, Subaru (to Toyota now), Daewoo (I think, or one of the other Korean brands), and a bunch of other companies. Ford partially owns Mazda, and has operations all over the world. Chrysler was part of Daimler of Germany.

I think their mistake was not having a continuous stream of small cars to build up customer loyalty. GM's Saturn got bigger and bigger. Chrysler's Neon was pretty popular for its first few years but then the line was not continued. Ford got rid of the Escort but introduced the highly popular Focus.

All their small cars suffer from inattention to details and quality. A similar Japanese car has way better build quality and is being continuously improved with better powertrain and creature comforts. A small car doesn't need to be luxurious, but it does need to be solid and well fitted. I think American small cars can't match Japanese small cars in this regard.

Ryan Bailey

I'm a big fan of the new Ford & GM sedan lines which really cannot be beat for value or style.

Also I pray the agents don't drive the Senator as fast as he apparently did himself in the Granada, 80 + mph, way too fast.

Friends, obey posted speed limits for your own good.

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Ironduke

If you want to buy American, buy a Honda or Toyota. Unlike most Ford and GM vehicles, they're actually made in the USA.

In essence, American carmarkers haven't been neglecting the small/mid-size car segment at all. The Canadian/Mexican automakers have.

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dark-alias

I agree.

But foreign automakers especially the japanese, saw a profit in big, SUV's and trucks as well. Look at how many 4runners, pilots, pathfinders, xterras, and so on are out of the road. Detroit is not the only one that saw potential.

gunnut

That's true. But Japanese carmakers didn't neglect their bread and butter small cars. Corolla and Civic are in their 9 billionth season. At the same time, Toyota replaced Tercel with Echo, then Yaris, and even added a whole new brand of small cars (Scion). Honda came out with the Fit, tiny on the outside, huge on the inside. Nissan's Sentra grew bigger, so there's the new Versa to take its place.

Then there's the Prius. No government regulations demanded the hybrid. Toyota had the foresight to develop it 10 years ago and started to market it in the states 6 years ago. The electric car (EV1) failed miserably. Prius now has over 50% of the hybrid market by itself. Everyone else is playing catch up.

No amount of government regulations can change consumer behavior.

Nothing can stop the right product at the right time.

The Big 3 have been passive for the last 20 years in exploring new trends. That's why they're behind.

Gun Grape

In addition to what Gunnut said, Toyota didn't have as many "Big SUVs as you think.

The 4Runners came standard with a 4 cylinder engine. Same with their small truck, the Tacoma. And their "Big" truck, the Tundra is comparable to the Ford F-150 in size and hauling capacity. The F-150 is an entry level/light duty full size truck. It can also be bought with a 6 cylinder motor.

You may see a lot of 4Runners but how many Sequoias or Land Cruisers do you see? Those are the Full size SUVs.

ANd the XTerras are in the same class. Both built on small truck frames.

chakos

I wouldnt consider a Landcruiser an SUV. An SUV is quite a modern concept, the Landcruiser is a 4 Wheel Drive, pure and simple, designed for practical purposes for people living on the land. They have only recently become popular with city dwellers after the 80 series of 1994 (of wich my family owns one and wouldnt replace it EVER). There are many stories i have heard about Landcruisers having their odometer going around 2 or 3 times. Thats 2 or 3 MILLION Km. There is no car in the world built anything like them.

dark-alias

all true, i did not list their bigger models, no excuses there, but i am glad they kept to their bread and butter, because i want to drive the best thing i can for what i can afford