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Detroit 3 gain

Posted in Posts, and Syllabus Schedule

For the first time since 1993 the Detroit 3 have all gained market share in the U.S. In the first quarter of 2013 Ford, GM and Chrysler gained 0.7, 0.5 and 0.2 percentage points of market share and the total percentage of U.S. market share that the three possess  is 45.6%. The companies are succeeding because of company restructuring and an increase in vehicle quality which is improving the perception of the automakers in the eyes of the baby boomer generation. The success in the U.S. coincides with higher automobile demand and a forecast that has sales of vehicles rising by 1.1 million this year.

Market Share 2008-Apr 2013
One worry for the Detroit 3 will be the weakening of the yen which is continued to be pushed by Prime Minister Abe. The weakened yen is allowing Japanese companies to lower prices and stay competitive. Nissan in particular has done well the first quarter and increased sales by nearly 30%. Is this first quarter success a sign of things to come or a temporary hiccup in foreign automaker dominance?
[2nd graph added by the prof]


  1. I added a market share graph. Note the share drop of the Japanese share after the 3/11 Tohoku earthquake. Japanese producers have yet to regain their previous market share. Coincidence?

    May 2, 2013
  2. gjeong

    I briefly talked about how change in currency rate can significantly affect the sales in the Hyundai post. Hyundai is facing a situation that stronger won (Korean currency) against U.S. dollar makes them less price competitive whereas the weakened yen, as mentioned in the 2nd paragraph,helps Japanese manufacturers to become more competitive.
    For the market share graph, I know that right after the earthquake, yen appreciated significantly against U.S. dollar causing the Japanese car makers to become less competitive. So their sales or market share dropped. This is one of the reasons why Prime Minister Abe has been trying to weaken yen.

    May 2, 2013

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