Bookmarking Auto on Info pagesSupporting Auto on InfoHome or Site Layout or Site Map or Site Index or Quick Jumps or Search Engine Directory or The MartAuto News, Analysis and Editorial On Earth in the First Quarter of 2008, Consumers Surge toward Quality and Out of Big Three Vehicles; Separately, J.D. Power States that U.S. Retail Sales in the First Quarter of 2008 Showed a Dramatic Shift toward Reliable Two Vehicles

 

 

AutoOnInfo.net  April 2008

On Earth in the First Quarter of 2008, Consumers Surge toward Quality and Out of Big Three Vehicles; Separately, J.D. Power States that U.S. Retail Sales in the First Quarter of 2008 Showed a Dramatic Shift toward Reliable Two Vehicles

By James B. Bleeker

The Detroit News reports that in the January-through-March Quarter of 2008, global sales by Toyota Motor Corporation increased 3% to 2.41 million vehicles as global sales by General Motors Corporation fell .6% to 2.25 million vehicles. This contrasts with all of 2007, when GM's global sales rose each quarter (4.8% in the final quarter) and a global shift by consumers to quality was hard to ascertain, if not nonexistent.

Also, the Associated Press reports that in the first quarter of 2008 Toyota's global production rose 7%, the global production of Honda Motor Company rose 4.5%, and the global production of Nissan Motor Company rose 9.4% - all suggestive of an anticipated global shift toward quality of a more mentionable dimension.

Separately, the Detroit Free Press reports that J.D. Power and Associates states, based on transaction data from about 7,000 dealerships, that Toyota Motor Corporation and Honda Motor Company increased their U.S. retail market share of cars and light trucks by 2.3 percentage points. Retail sales are dealership sales to individuals and small companies and do not include the low-to-no-profit fleet sales to large companies, governmental units and rental agencies that have buoyed the Big Three's sagging U.S. market share, but have displeased security analysts.

The one problem with J.D. Power numbers is that they seem to fluctuate quite wildly. With regard to the results of its "dependability" studies, site manager uses a rule of intersection to glean value. See "Gleaning Value from J.D. Power Studies: An Index of Total Cluelessness?" AutoOnInfo.net, August 2007, and "The J.D. Power Surveys: Gleaning Values from Things That May Be Worth, Individually, Something Close to Nothing: GM in the Dumps Again," AutoOnInfo.net, August 2007.

Nonetheless, if J.D. Power's stated increase in the Reliable Two's first-quarter U.S. retail market share is cut in half, to 1.15 percentage points from 2.3 percentage points, the U.S. consumer shift to quality and out of Big Three vehicles remains quite respectable.

The following charts help depict the historical shift to quality in the U.S.

 

Source for first-quarter global sales: "Toyota Tops GM Global Sales," Sharon Terlep, the Detroit News, April 24, 2008, available at detnews.com

Source for first-quarter global production: "Toyota Takes 1Q World Sales Lead from General Motors," Tom Krisher, the Associated Press, April 23, 2008, available at Yahoo! News

Source for J.D. Power U.S. retail market share changes: "GM Hangs on to Its Share of Market, But Chrysler and Ford See First-Quarter Retail Sales Fall," Sarah A. Webster, the Detroit Free Press, April 18, 2008, at freep.com

 

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May 2007: Does GM Mean Junk and Ford Too? Toyota and Honda Shine Again.
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