Market Research News

US Car Production and the Japanese Syndrome

  • August 21, 2017
  • By Pete Nisbet
  • 0

US car production is gradually slowing down. Ford SUV sales in July 2017 have increased by 2.2% over July 2016. However, overall auto sales were down 7.4% for the same July. How is this, and what can be done to ensure non-SUV sales maintain a high position in the market?

 

The so-called ‘Japanese syndrome’ is largely responsible for this reduction in US car production: not just for Ford but for General Motors and other auto manufacturers. There is a general feeling among Americans that Japanese sedans are better designed and better equipped than American sedans. Most people looking for a pickup truck will go American – because they believe they are the best.

 

US Car Production

US Car Production: Too Much Focus on SUV Manufacture

The same people are likely to go Toyota or Honda when seeking a sedan – for the same reason. Why is this?

Have US car manufacturers been focusing too much on SUVs? As we noted earlier, Ford SUV sales increased by 2.2% this July over July 2016. Nothing wrong there! But what about that 7.4% drop in overall auto sales? We ask again – has Ford been focusing too much on SUVs?

 

Let’s have a look at the car market in general, and what technological advances have recently been made. Issues with emissions and restrictions on the emission of greenhouse gases have had an effect on car sales. Not necessarily on total sales figures, but certainly on how sales of environmentally friendly vehicles have rocketed.

Tesla Model 3 Leading the Field for Electric Cars

Electric and hybrid vehicles are becoming more popular. The Tesla Model 3 received 300,000 advance orders (with $1,000 deposits made for each) when it was opened to pre-orders over a year ago. Tesla is not saying how many they have now, but it must be a lot. The car may not be available to meet these orders until the end of next year. Tesla is an American company, so where are the competitors?

 

Mainly China, Japan, Germany and France. The Chinese BYD e6 will be a genuine competitor to California-based Tesla, as may Nissan with its improved LEAF, the Hyundai iOniq and the BMW i3.

 

Tesla is currently the only truly popular electric car manufacturer with a good product that has significant advance orders. How is that that a US company is so far ahead of its competition, yet US car production is falling?

About Pete Nisbet

Pete has been working in the field of website design and content for many years. He has a great interest in technology and current affairs, particularly business affairs. Pete's interests are technology, writing and world affairs and he is widely traveled. Pete also holds an Honors BSc from the University of Edinburgh.