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U.S. Car Business in Major Shift Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]04 Jan 2011: n/a.

ProQuest document link ABSTRACT If the Korean auto maker crosses that threshold as expected this year, the U.S. market will have seven

manufacturers--GM, Ford, Toyota Motor Corp., Honda Motor Co., Chrysler, Nissan Motor Co. and Hyundai--with

market share of 5% or more. FULL TEXT Author: Sharon Terlep; John Kell

U.S. auto sales rose 11% in December, capping a year that suggests the industry is on the verge of one of the most

dramatic shifts in its history.

For most of the past century, the U.S. car industry was dominated by General Motors Co., Ford Motor Co. and

Chrysler Group LLC. Now, as a result of both long-term trends and the upheaval of the last two years, the Big Three

are about to be replaced by a Gang of Seven as the industry's driving force.

In 2010, Hyundai Motor Co. saw its U.S. market share climb to just short of 5%. If the Korean auto maker crosses

that threshold as expected this year, the U.S. market will have seven manufacturers--GM, Ford, Toyota Motor Corp.,

Honda Motor Co., Chrysler, Nissan Motor Co. and Hyundai--with market share of 5% or more. That's a dramatic

shift from the days when the three Detroit companies dominated the market and dictated the industry's direction.

"I think it's fair to say we are entering a new era," said Jim Press, a former Toyota and Chrysler executive now

working as a consultant to several vehicle makers. "You have a completely different situation when you have six or

seven companies that are all established, with a significant customer base. It's not like the old days when it was

the Big Three and then all these little guys."

The emergence of seven major car makers means companies can no longer focus on besting a single rival, as they

did years ago when GM was on top, or in recent years when Toyota set the bar for quality and reputation.

"There's much less margin for error now," said Michael J. Jackson, chief executive of AutoNation Inc., a large chain

of auto dealerships based in Fort Lauderdale, Fla. "If you don't give the customer exactly what he wants, he's got a

wide range of other places to go."

Underpinning the change in the competitive landscape are two extraordinary shifts in 2010: a stronger-than-

expected resurgence by the three Detroit makers, and a reversal of fortune for Toyota, which just a year ago

appeared ready to pass GM as the country's top-selling car maker.

In 2008 and 2009, the Detroit Three were beaten down by massive losses and, later, bankruptcy. But in 2010, Ford

and Chrysler both gained market share. GM, while its share slipped less than a percentage point, is on its way to

reporting billions of dollars in profit for 2010 as its sales rise.

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At the same time, Toyota, which for nearly 30 years reported an almost unbroken string of U.S. market-share gains,

suffered a significant setback, losing 1.8 points of share in 2010, to 15.2% from 17%, according to Autodata Corp.

As a result, Toyota fell behind Ford in share for the first time since 2006.

Toyota has struggled to keep its sales rising since a recall and sudden-acceleration crisis engulfed the company a

year ago. Toyota's sales fell 5.5% in December and were flat for the year, while almost every other major maker

reported increases.

GM's sales rose 8.5% in December and 7.2% for the full year. Ford's increased 6.8% in December and almost 20%

for the full year. Chrysler saw increases of 16.4% last month and 16.5 for 2010. Chrylser sold 1.1 million vehicles

last year, hitting the target set a year ago by Chief Executive Sergio Marchionne.

Meanwhile, Hyundai, which a decade ago was laughed off as a maker of cheap, small cars, said its December sales

climbed 33% to 44,802. For the full year, its sales totaled 538,228, up 24%. It was the first year Hyundai's U.S. sales

exceeded 500,000 vehicles.

Write to John Kell at [email protected]

Credit: By Sharon Terlep And John Kell

DETAILS

Subject: Automobile industry; Automobile sales; Market shares

Location: United States--US

Company / organization: Name: General Motors Corp; NAICS: 333415, 336111, 336399

Product name: Chevrolet Equinox

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2011

Publication date: Jan 4, 2011

Section: Business

Publisher: Dow Jones &Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

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Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 822338075

Document URL: http://nec.gmilcs.org/login?url=https://search.proquest.com/docview/822338075?a

ccountid=42685

Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11 -17

Database: ProQuest Central

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