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Originally Posted by jthomas1600 I guess part of what prompted this post was I've heard several times during the bailout/bankruptcy talks people suggesting that there be stipulation that American auto makers must make more economy cars like the people want. Because the cars you mentioned are selling well we can assume that people want them. But does the public want more? If there were really a vacuum in the market place why wouldn't GM market these cars here. It seems to me that that particular segment of the market is being taken care of. |
It's a good point. I would imagine all segments (perhaps until recently not hybrids, as they was more demand than availability) are being taken care of.
So you are right in thinking that "small cars" is a segment that isn't unfulfilled and that would require actually taking customers away from the people fulfilling it in order to sell.
But that's what the market is all about.
Now it's certainly possible for a company to specialize more than that. Honda doesn't have a line of big trucks after all. And companies like Mack and International don't make cars at all. Lotus, Ferrari, Porsche (though they now make an SUV) are also specialized. Even my beloved BMW (no pickups for example).
But that doesn't seem to be what they've actually done. Instead they have (way too many) models and cars that aren't selling.
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Is it also possible that some people take pride in owning, say a Honda, because it says something about them and they wouldn't buy a Detroit auto no matter how much it suited there needs? I mean the same can be said about the "buy American" segment of our population. Maybe there are just not as many "buy American" people out there right now.
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My Toyota Corolla was made in Kentucky. My last Buick was made in Mexico.
As a person who hasn't owned an American brand in 20 years (and I have looked at American brands every time I've gone shopping for a new car) I can guarantee you that where it was built and the logo on the car had almost nothing to do with it (I admit that with the car before the BMW, my corolla, reliability was *very* important in my buying decision, which put Toyota and Honda ahead for their demonstrated record there)