2007 Chicago Auto Show
America once held the car industry in the palm of its hands. Vehicles rolling out from more than 100 independent car companies nationwide became the benchmark of progress and affluence that set the world standard. But that was the 1900s.
Today, that status is a part of automotive history.
Detroit's Big Three automakers finally "get it." That is, what used to be brand loyalty to a particular nameplate across family generations has turned a different direction.
American auto manufacturers now find themselves struggling for the market share that was once as solid as the steel fender behemoths built at their Michigan assembly plants.
Historically, the decade that started consumers' brand defection was the 1970s.
In October 1973, Americans awoke to an economic nightmare that would affect their driving habits and automobile choices for generations -- the Mideast oil embargo.
Domestic turmoil
For the first half of last century, the United States relied on oil largely supplied by domestic sources. And mostly at bargain prices.
However during the 1970s, American oil companies, which by then had oil fields in the U.S. and overseas, suddenly found themselves in a slippery mess.
The sheiks of the Mideast oil producing export countries (OPEC) demanded more money for their oil. The world's oil-dependent nations balked. But in October 1973, OPEC enforced an embargo that brought the supply of foreign oil in the U.S. to a trickle.
By 1974, the price of at the pump was an unprecedented $0.55 a gallon -- nearly double that at the start of the decade.
The Big Three automakers set out on a crash course to build smaller, more fuel-efficient cars. The Chevrolet Vega, Ford Pinto and Plymouth Cricket were products of their effort.
Japanese automakers -- which until then hadn't had a strong foot-hold in the American car market -- became the hottest ticket in town as they landed on American shores with small runabouts that sipped a tank of gasoline far longer than any domestic brand. With that, sales of Japanese cars soared in popularity, capturing 27-percent of the U.S. auto market by 1980.
In the meantime, Detroit continued to downsize its own cars, frantically trying to figure out how to make a small-engine, front-wheel drive car that was fuel-efficient, reliable and comfortable to drive.
Foreign market share
During the past 30 years, foreign automakers have chipped away at American consumers to win their confidence and brand loyalty.
Today, the Japanese-brand Toyota Camry is the best-selling passenger car in America -- a title taken away from the Ford Taurus in the mid-1990s.
Collectively, Japan's Honda and Toyota automakers have dominated U.S. automobile sales since the turn of the new century, making a hard erase mark on American automakers that rested on their pioneer laurels and "Built in America" legacy.
Some critics cited the domestic brand defection on cars built with "poor build-quality" or "high operating costs."
Others simply liked the direction foreign automakers were taking to bring cutting-edge styling and innovation to American roadways.
Either way, home-spun auto manufacturers had to reckon with the fact that most American consumers were moving their hard-earned dollars and allegiance to foreign automotive brands.
Detroit aims at import buyers
American automakers hope history repeats itself as their efforts turn to win back American consumer confidence with an overwhelming array of new products that are the best-built and most creative since the company founders first fixed their nameplate to a fender.
According to Bryan Zvibleman, senior manager at Dodge brand communications, Chrysler Group introduced 10 vehicles in 2006, with eight new vehicles hitting the road this year -- Dodge Nitro, Dodge Caliber and Chrysler Aspen SUV among them. The all-new Jeep Compass and Patriot round the brand's four-wheel drive camp to seven products.
In 2006, Ford launched seven new or refreshed vehicles, with 12 more scheduled for release this model year -- some already slated as 2008 models.
The world's largest auto manufacturer, General Motors Corp., says 40 percent of its sales in 2007 will be based on launch vehicles.
Last year, GM premiered 10 redesigned SUVs, four full-size trucks, two crossovers and several passenger cars like Saturn's Aveo sedan, Sky roadster and Vue GL crossover vehicle. The Pontiac G5, high-output Solstice GXP and Chevy HHR Panel models also joined the parade.
Another key ingredient to the Big Three's turnaround is styling. More so than foreign brands, domestic automakers are bringing concept car designs to production. Today, what consumers see on display at area auto shows is likely what they'll buy in showrooms in coming years. The ultra-popular Chrysler 300 and redesigned Ford Mustang are recent examples.
Turn-around time is also part of Detroit's comeback equation.
Manufacturers are bringing vehicles to market quicker than ever before -- 18-months is typical from concept to production.
"It is amazing to see how many new or redesigned vehicles are coming out of Detroit nowadays," said former Midwest Automotive Media Association President Robert Kocher. "Chrysler Group, Ford and GM are dedicated to bringing quality-built vehicles back to the American road with exciting styling, value and economy consumers can get their hands on in a short amount of time."
Fuel for thought
American automakers are first to market to help reduce America's dependence on foreign oil with the introduction of flexfuel models that can run on E85 ethanol fuel or gasoline. Foreign brands have yet to embrace that technology.
However, Japanese automakers Honda and Toyota took the auto industry by storm when they introduced gasoline-electric hybrid vehicles to the American marketplace earlier this decade. As many as seven vehicles are available across their collective ranks for 2007 with more in development.
Domestic brands were slow to respond and have had to play "catch-up" in order to cultivate hybrid vehicles over recent years. Ford and GM currently have a few models in their fleet that offer gasoline-electric hybrid technology.
GM takes a new approach to future propulsion with the Chevrolet Volt Concept Car seen at this year's Chicago Auto Show.
Volt Concept is a plug-in rechargeable electric powered passenger car that can travel up to 40 miles on a single charge. GM hasn't put a time frame on the Volt other than to say the battery technology could be ready as soon as 2010.
Development of hydrogen fuel cell vehicles is a top priority for domestic automakers as the flame of buyer loyalty is rekindled to help carry their brands into the future for next-generation drivers.
Posted in Local on Friday, February 9, 2007 12:00 am Updated: 10:14 pm.
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