From: gvanmoor@nrao.edu (Gustaaf Van Moorsel,,,)
Subject: Re: Politics of car buying
Reply-To: gvanmoor@nrao.edu
Organization: National Radio Astronomy Observatory
Date: Fri, 22 Jan 93 16:27:56 GMT

In article 25809@kocrsv01.delcoelect.com, c23st@kocrsv01.delcoelect.com (Spiros Triantafyllopoulos) writes:

>I posted the figures for 1990, and the figure was 15.something per cent, not
>20 - 25%.


You are right, I quoted from memory. But my point was the way Japanese outsell the
Americans - under equal conditions as regard to trade barriers, and from your
figures that now appears to by a factor of almost 40, not 10 as I cautiously
estimated.

>
>As for who outsells who, you have to examine things like dealer networks,
>availability of parts, relevant laws which pretty much outlaw big engines
>(as in many other parts of Europe), etc etc.

Right again. But any manufacturer who wants to export has to organize dealer
networks etc. The Japanese did ... And there are no laws outlawing large engines
though the higher cost of gasoline probably is a factor. Anyway, if the US wants to
export it will have to offer the right kind of cars, the kind the people want in the
country they're exporting to.


>Both GM and Ford have European operations selling specifically to
>(say) Germany; they have pretty good market shares (Go Opel!) and
>pretty good models. US Vehicles which sell in Europe would be things
>that are not available there, mostly Minivans, 4 wheel Sport-Utility,
>and high-end sports cars ('vettes, for example).

All of these cars ARE available.
Minivans: the VW bus has been around since 1982 or so, and the Renault Espace,
a real modern minivan brought on the market about the same time as the Voyager,
sells great. I mean this would be tough competition for any US import. The only
US car one sees on the road with any regularity is the Voyager, but only after
the low dollar made it possible. The Voyager has met good reviews, though, so
it seems US manufacturers do stand a chance when they offer the right vehicle.
Also 4-wheel sports utilities abound, but obviously the market in Europe can
never be as big as in the US for that kind of vehicle. But cars like the
Nissan Pathfinder, Mitsibishi Montero, and Isuzu Trooper (sold as an Opel) are quite common. The Ford explorer might do well, and I think it has been introduced since
I left. And Corvettes - well, I do not think this car would meet with much enthousiasm
in Europe.
 
>
>Does Germany have laws penalizing BIG engines (i.e. if I wanted to
>import, say, a Seville STS would I be looking into $80K?  You have to
>consider that as well.

German road tax increases more or less linearly with engine size. But for
$80K in Germany you could have a BMW 750i easily (which also would be taxed for its large engine), and I don't think any Seville would stand much of a chance.

>
>Finally, look at markets where TRADITIONAL US cars compete against
>others; We seem to be doing well in the Middle East, particularily the
>oil countries. Different requirements there of course; but we do build
>for these requirements (I've seen auto press reports of modifications
>required to sell to, say, Saudi Arabia or Kuwait, they're quite
>extensive in order to cope with the weather and driving conditions
>there), and we do make them and we're pretty successful there.

True. But if the US want to become a competitive factor in the major markets
(and the middle east is not one of them) they cannot continue making cars which appeal
to the American buyer and then complain that they sell so poorly outside North America.

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