Why the Big 3 are losing share

[rockman19762001]

Consumer Reports just did a study about car brand perceptions, so we thought we'd compare the top 10 most highly perceived brands to their list of the most reliable car brands.

The reliability information is based on data CR collected about 1.4 million vehicles. Their owners reported any serious problems with their cars and CR used the data to predict the model's reliability.

The perceptions are based on a survey that asked people to rate car brands based on safety, quality, value, performance, environmental friendliness, design, and technological innovation. It's perception vs repair bills. Here we go!

Brand Perception — Top 10
1. Toyota
2. Honda
3. Ford
4. Cadillac
5. Mercedes-Benz
6. GMC
7. Lexus
8. BMW
9. Chevrolet
10. Volvo

Brand Reliability — Top 10
1. Scion
2. Acura
3. Honda
4. Toyota
5. Lexus
6. Infinity
7. Subaru
8. Hyundai
9. Mitsubishi
10. Kia

No list is perfect, of course, but it seems like Kia and Hyundai's marketing department have some work to do in order to help consumer perception. Cadillac seems to be doing fine — it ranked 31st out of 34 brands when it came to reliability, but is still perceived quite well.

If you're interested in more detailed information about car reliability, CR has an absurd abundance of it, including which models are the most and least reliable for each brand.

[rocky]

I wouldn't trust a CR survey or opinion.

[mikey159]

Originally posted by rockman19762001
Consumer Reports just did a study about car brand perceptions, so we thought we'd compare the top 10 most highly perceived brands to their list of the most reliable car brands.

The reliability information is based on data CR collected about 1.4 million vehicles. Their owners reported any serious problems with their cars and CR used the data to predict the model's reliability.

The perceptions are based on a survey that asked people to rate car brands based on safety, quality, value, performance, environmental friendliness, design, and technological innovation. It's perception vs repair bills. Here we go!

Brand Perception — Top 10
1. Toyota
2. Honda
3. Ford
4. Cadillac
5. Mercedes-Benz
6. GMC
7. Lexus
8. BMW
9. Chevrolet
10. Volvo

Brand Reliability — Top 10
1. Scion
2. Acura
3. Honda
4. Toyota
5. Lexus
6. Infinity
7. Subaru
8. Hyundai
9. Mitsubishi
10. Kia

No list is perfect, of course, but it seems like Kia and Hyundai's marketing department have some work to do in order to help consumer perception. Cadillac seems to be doing fine — it ranked 31st out of 34 brands when it came to reliability, but is still perceived quite well.

If you're interested in more detailed information about car reliability, CR has an absurd abundance of it, including which models are the most and least reliable for each brand.

I believe the Big 3's problems are all self inflicted and they should be allowed to die/merge/whatever. When I was a kid they built cars that people liked and had confidence in. My dad and I even went to a Chevy plant and watched his car being built in the 60's!!! Nowadays they give the consumer a small range of vehicles and seem to be more interested in making a ton of money and making everyone rich in the process. A standard US autoworker costs the average US car 45% of the price for his salary and benefits. A Toyota/Nissan/Honda auto worker costs his car about 30%. That is a LOT of wiggle room for the automaker to negotiate price, build in better quality etc and still come up with a similar price for a similar model.
In Europe when a Company gets bailout money the CEO must go and the Gov't gets a seat on the Board. The US should be doing the same thing and make these Companies lean and mean or out of business! GM/Ford/Chrysler have some great land, great buildings and some assets worth lots of money to another auto maker. Can you imagine KIA or the Chinese buying GM? Dump all the existing workers and rehire those that will work under the new Company. Heck even the robots and other machines can be reused, in some cases.
And please do not mention 3 million people out of work, AT&T just laid off 13,000 for the 3rd year in a row. Other Companies are hurting for money too. Heck even Larry Flynt now wants a bail out of the porn industry!!!! 30 BILLION dollars divided between 3 million workers is a LOT of homes and lives saved!!!! Stop saving Companies that are not worth it. Competition is healthy and businesses closing in a normal thing. Just my opinion.

[sski01]

Notice all the domestics in the top 10 perception survey that are not in the actual reliability survey...uneducated brainwashed people.

Talking to a guy I know (GM worker), drives a GM pickup. It has 172,000 km on it...he says, "it's been a good truck"...wtf...it's had a tranny and rear end replaced?!?!? My Nissan has 362,000 kms (original motor, tranny, rear end etc).

When we bought the Pilot, I was commenting it was similar to the Envoy...he says..."its the same vehicle". I think he was a little pissed I dropped 40K on a Japanese product when I could have got the "same" product from GM...whatever.

[hondacuraplanet]

If GM is smart, they will use whatever bailouts that come in turning the Volt into the Model T for the 21st century. Make it very easy to service, cheap to repair, and then you'll have something that no other car company's got......a vision for the future.

[andyschneider]

I'm willing to bet that if you look at the reliability list over the next few years, Ford will be creeping up. My 2 recent Ford products were as flaw-free and reliable as any of my recent Honda products have been - and in some ways moreso. They're about the only domestic manufactuer I would consider these days....

andy

[sski01]

Geee...didn't GM have an electric vehicle called the EV-1...oh ya, they shortsightly sold that to an oil company who buried it...idiots...

On the Ford thing...I heard Ford and Magna are working on a joint plug-in electric. I guess Frank figures he'll get in bed with Ford, which makes sence they seem to be in the best shape...Don't you always want to get into bed with the suitor in the best shape...ha ha.

[Michal]

Originally posted by rockman19762001


No list is perfect, of course, but it seems like Kia and Hyundai's marketing department have some work to do in order to help consumer perception. Cadillac seems to be doing fine — it ranked 31st out of 34 brands when it came to reliability, but is still perceived quite well.

Tradition plays very important role in perception. I was surprised myself when I learned that Hyundai is more reliable than most others.

M

[iivtecracerii]

Originally posted by hondacuraworld
If GM is smart, they will use whatever bailouts that come in turning the Volt into the Model T for the 21st century. Make it very easy to service, cheap to repair, and then you'll have something that no other car company's got......a vision for the future.

i think they should focus all their resources on the rest of the lineup first and foremost in order to make competitive cars that people actually want to buy. from their latest concepts and new models shown at Detroit, it seems they are heading down the right path.

IMO it would be very unwise to divest all their funds towards the Volt and allow other models to languish. the Volt is ultimately a niche vehicle rumored to cost in the vicinity of $40k...in other words way out of the reach of most of its buyers.

they need to turn a profit. and fast.

[hondacuraplanet]

Originally posted by iivtecracerii

i think they should focus all their resources on the rest of the lineup first and foremost in order to make competitive cars that people actually want to buy. from their latest concepts and new models shown at Detroit, it seems they are heading down the right path.

IMO it would be very unwise to divest all their funds towards the Volt and allow other models to languish. the Volt is ultimately a niche vehicle rumored to cost in the vicinity of $40k...in other words way out of the reach of most of its buyers.

they need to turn a profit. and fast.

Hybrids are viewed as being as disposable as an iPod. Ten years and out. I don't think that anyone sincerely believes that any hybrid car will last a long long time, even a Honda. If Chevy can't change a public perception with the Volt, or make it extremely affordable, they won't succeed with it.

I guarantee, though, if they don't, a Chinese manufacturer will.

[robrecht]

Originally posted by hondacuraworld
I guarantee, though, if they don't, a Chinese manufacturer will.

It's already happening, and Warren Buffett bought 9.9 percent of the company. With oil futures (temporarily) below $40/barrel, subsidized gas prices in China, and US automakers looking for life-support from taxpayers, Buffett shows us how to invest in the future.

http://wheels.blogs.nytimes.com/2008...sale-in-china/

[rocky]

Cerberus is reportedly according to Reuters talking to Renault about selling Jeep to them and the rest of Chrysler to Magna, who usually just assembles cars for other companies.

Magna builts Chrysler minivans for the European market, they build the current BMW X3 (the next gen is going to be built in South Carolina).

[hondacuraplanet]

And, since it's electric, it'll bypass any emissions standards. Make it pass crash tests, and it's here.

At a price of $22,000 though, I think it'll be perceived as an expensive disposable cell phone, unless a really strong warranty is introduced.

Combine this electric offering with a stripped down econobox, and a small utilitarian pickup, and you've got something formidable.

Imagine if you will, as another example, one simple small 4 door platform with a small 4 cylinder that could be offered in station wagon and small pickup forms, got 40 plus MPG, and could be sold for around $10K. Another example of a possible 21st century Model T.

[robrecht]

Tim, I really like your idea of the Volt as a modern day Model T, or Model V perhaps.

[krygny]

As I understand, the Volt is expected to cost ~$40,000 and go 40 miles on a charge. That's a "boutique" vehicle. How many people will spend that on a car they can only drive 20 miles from home?