Detroit's Automakers Shift Focus Back to Cars Amid Growing Competition

Strategic Insights -

The Big Three US automakers, General Motors Corp., Ford Motor Co., and DaimlerChrysler AG's Chrysler Group, are making a concerted effort to regain market share in the US passenger car market, which they've been losing to Asian and European competitors. After a decade of favoring trucks and SUVs, Detroit's automakers are showcasing a slew of new and redesigned car models at the 2004 North American International Auto Show. The goal is to combat their declining market share, which has dropped from 75% to 45% in the past 20 years.

Key Takeaways:

  • General Motors unveiled a production version of the Pontiac Solstice, a two-seat roadster, which will debut late in 2005 as a 2006 model at prices starting around $20,000.
  • The Solstice will use a new vehicle architecture, "Kappa," which could be used for other GM brands, significantly improving the vehicle development process at GM.
  • GM introduced the sixth generation of its Chevrolet Corvette, with a new 6-liter V-8 delivering 400 horsepower and 400 pounds-feet of torque.
  • Ford is showcasing three new cars: the Five Hundred sedan, Freestyle wagon, and an updated Mustang, with the Five Hundred billed as its new flagship sedan.
  • Chrysler unveiled several concept vehicles, including its Dodge Sling Shot sports car and a supercar dubbed the ME Four-Twelve, which goes from zero to 60 miles per hour in 2.9 seconds.
  • Japanese automakers, including Honda and Toyota, are targeting the US truck market with new models.
  • Detroit's automakers plan to produce more than 40 new or redesigned vehicles in 2004, one of the biggest product blitzes in industry history.

Statistics:

  • 75%: the percentage of the US passenger car market controlled by the Big Three in 1980
  • 45%: the percentage of the US passenger car market controlled by the Big Three in 2004
  • 20 years: the time it has taken for the Big Three's market share to decline from 75% to 45%
  • 4: the number of new and redesigned car models General Motors will introduce in 2004
  • 3: the number of new cars Ford is showcasing at the 2004 North American International Auto Show
  • 60: the seconds it takes for the Chrysler ME Four-Twelve to go from zero to 60 miles per hour
  • 248: the top speed of the Chrysler ME Four-Twelve
  • 40: the number of new models Detroit's automakers plan to produce in 2004

Sources:

  • Dayton Daily News, Ohio, (c) 2004
  • Knight Ridder/Tribune Business News
  • Active Dayton (http://www.activedayton.com)