I think:
1- There are plenty of competitors on the market, especially the Japanese cars, that are sold in the USA, that are good cars (Think Honda, Mazda, Toyota, Nissan).
Not all are fun cars, but they're reliable, and get you from point A to B.
Ford is giving up their share in the market, because very few people think of Ford, when buying a small car.
2- People in the market for small cars, are usually in the market for cheap cars.
That means, they don't care much if a car has been driven for 10-25k miles, if they can get a $6-12k discount on a fairly 'new' car.
Yes, there are those who prefer leasing a brand new car, and get rid of their maintenance fears; and there are those who buy up those offlease cars, because they're cheap, and still are good for at least 75k trouble free miles. And even after that, with some good maintenance, some people have been able to use them for another 100-150k miles (one guy actually bought an Elantra with 100k miles on for $8k, and put another 125k trouble free miles on it; talk about a good buy!)...
So Offlease is getting a lot of the purchases as well.
3- Second hand market. Craigslist, or even Maroones (Autonation), Carvana,... They all get the bulk of the share of 'budget conscious' (between Apostrophes, because Autonation is a ripoff if you're buying anything else but fairly new) buyers.
4- Change in Technology.
Can't deny that passenger cars have evolved so much in the last years,
There was a time when every new model was just a change of body color,
But the past 10 years, cars have seen improvements in:
- Engine efficiencies and performances: (fuel injection, plethora of sensor arrays, Turbos, Atkinson engines),
- Emissions: (even more sensors, MPG increases, engine fine tuning...)
- Design: (improve looks, both inside and out, add design elements, use newer materials),
- Safety: (airbags, crumple zones)
- Technologies 1: (radio, online capabilities, touch screens).
- Technologies 2
batteries, electric cars, hybrids, E85; are a whole different type of animal than the regular 4 stroke gasoline engine car). And Ford supposedly did horrible in their implementation of these (electric/hybrid Fusions cars).
All this research going into cars that make less profit than trucks that do without a lot of this research.
If you ask me, Ford is applying the right strategies to stay above water. They're at least for now, just taking a break. They might be back someday, with passenger cars, when there is a better chance to compete in the market.
If you ask me, the current difference between USA and Japan in car markets, is that Japan is making commuter vehicles, while USA is making performance vehicles.
And commuter vehicles is what most people need, performance vehicles is what most people want.
USA would win, if they would combine the two, and combine performance with economy.
However, even as we speak, Japan is gaining on that momentum, and making some excellent high performing vehicles, that are also fuel efficient (run comfortably for longer drives; and can be used as a daily commuter). Eg: see Hyundai Genesis, Honda Civic type R, Even Toyota is investing in upgrading and creating higher performing cars (86, Avalon); though their reliability is still with the older, dull performing cars...
So my 2ct is that, unless US car manufacturers will tip the scales in creating cars that are:
1- High performers
2- Comfortable and luxurious interior
3- Great on gas
4- Fun to drive
and
5- Affordable to buy,
We will see more and more foreign cars on our roads; and US car manufacturers would not be able to keep up with the competition.
![[dunno]](/images/smilies/icon_smile_dunno.gif "Dunno [dunno]"){kind=icon}
