"You're Not in Detroit Anymore, Dorothy" - A Further Look at the U.S. Auto Mix

Tuesday, July 13, 2010 by Lonnie Miller
Yesterday, my colleague, Tom Libby, wrote about his personal shock of seeing very few domestic branded vehicles after moving to the New York metro area. For someone moving from Detroit to that market, he has reason to be amazed, much like Dorothy was after she landed in Oz from Kansas. 

Look at the adjacent chart. While these brand group market shares represent only part of 2010, they are very typical of the annual sales mix for Asian, Domestic and European brands selling in the U.S. The shares are pretty stark as you move westward from NY to LA. And if I showed you Washington D.C. and many other "coastal" metro markets, the import brands typically have dominant shares.

From a macro view, let's look at sales trends in my friend Tom’s former local market this way:
  • In Detroit, for every retail unit sold by an Asian automaker, we get just over 5 Domestic sales
  • And for every retail unit sold by a European automaker, we get nearly 20 Domestic sales
Sobering "fun facts" if you are selling against the "D3" in the Motor City. But life changes for GM, Ford and Chrysler when they leave their home field. And the folks in Detroit know that. Over the last decade we've seen impressive changes in sales for BMW, Toyota, Hyundai and Honda, just to name a few. Why do you think this has been the case? What's your take on this dynamic battle? Can Buick embolden itself to appeal to someone in San Francisco, California? And can Hyundai capture the hearts and minds of those in Flint, Michigan? I'm pessimistic on both accounts. Regional preferences for auto brands are deep and slow to change. The fight will continue. 

Posted by Lonnie Miller, Vice President, Marketing & Industry Analysis, Polk (07.13.2010)

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