U.S.car sales
The ‘Big Three’ Detroit automakers –- GM,Ford and Chrysler -– lost consumer confidence in 2009 after they were severely hit by the global economic crisis.The crisis also exposed the inherent problem with the Big Three’s product portfolio,which lacked up-to-date engineering and extensive research and development.
Further,the majority of their sales comprised pickup trucks and SUVs rather than fuel-efficient vehicles such as the small cars that the consumers have started to prefer.This skewed portfolio was further aggravated by the government’s push for fuel-efficient and environment-friendly cars.Ford rallied better than its hometown rivals,with an early response to the shift in consumer preference towards small cars.
However,the Detroit automakers,especially Ford and GM,bounced back with a recovery in the global market and restructuring of the product portfolio at the end of 2009.In 2010,Ford’s sales went up 19% to 1.94 million vehicles,while sales of GM and Chrysler grew 7% to 2.22 million vehicles and 17% to 1.09 million vehicles during the year,respectively.
Ford focuses on its Ford,Lincoln and Mercury branded cars,shedding the Volvo cars,while GM concentrates on four core brands -– Chevrolet,Buick,GMC and Cadillac -– withdrawing Saturn,Hummer,Pontiac and Saab.
Further,Ford has decided to expand its luxury Lincoln line-up at the cost of its Mercury line-up,which has been phased out at the end of 2010.The company plans to launch as many as 7 new Lincoln vehicles in the next 4 years,including a small car.
