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January 2009

Import vs. Domestic—Who cares?

August 8, 2007 - By John LeBlanc

Last month in July, for the first time on record, more import-branded cars and trucks were sold in the American car market than those from the domestic Detroit Three—Chrysler, Ford and General Motors.

Surprised? Shocked? Seemingly in worst denial than the automakers themselves, some American media outlets sure were.

The official numbers for July rang in at 51.9 per cent for The Rest of the World, 48.1 per cent for The Detroit Three. The American automotive press likened the news as a "watershed" or "milestone." Automotive News even hailed July as "the darkest month in the 102-year history of the automobile business in the United States."

Except for creating fodder for automotive columnists, its like hearing that smoking cigarettes is bad for your health. The Import versus Domestic Battle is simply not news anymore.

With the globally incestuous development of the automotive industry over the past twenty years, the definition of what constitutes a vehicle as "domestic" versus "import has never been fuzzier.

Toyota builds Tundra pickups in Texas.

Chevrolet builds subcompact Aveos in Korea.

To most consumers, the former is an import and the latter is a domestic. And when it comes to quality, fuel efficiency, safety and reliability, the difference between an import and domestic branded vehicle has never been closer.

So if the domestically branded product is competitive with the so-called imports, why are less and less new car buyers interested in buying cars and trucks from The Detroit Three?

For many car buyers, building a great product simply isnt the whole equation.

The overall ownership experiencehow theyre treated at the dealership, how much residual value their car will hold over their term of ownership, areas the import brands have traditionally held a lead over The Detroit Three, are just part of the decision making process.

But theres another huge factor that gets overlooked during the new car decision process: status.

In a culture dragged down by the "we are what we buy" syndrome, Leaf fans aside, everyone wants to be associated with a winner. During the new car selection process, it can be a domestic deal killer.

Announcing you just bought your fourth-in-a-row Honda Accord means no one will grill you at the Monday morning water cooler session.

With a sterling reputation for reliability and value built up over decades of continuous improvement, it would be hard to find a coworker (even if they dont read Wheels.ca), who doesnt have the perception that the Accord is the proverbial "good car."

But what if you walked into the same group and proclaimed you just popped for a new Ford Fusion?

The first question will be, "Why did you buy a shaver for your family?"

Once youve dealt with the office comic, inevitably, the next question will be, "Why did you buy a car from Detroit?"

Youll explain that the Fusion is actually an amalgamation of the best bits from Fords global parts bin stolen form the European Mondeo and Mazda6. Its way more fun to drive than the boring ol Accord. You got a great deal on the price and financing. Fords quality has really improved from that Taurus Bill in accounting had that had him on a first name basis with the local Ford regional service manager. And despite what the business headlines are reporting on a daily basis, Fords going to still be in business by the time everyone gets their Christmas bonuses…Ö

Your coworkers will still wonder why you didnt buy the Accord.

"Its an import right?"

"Yup, built in Ohio."


- John LeBlanc, Publisher



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