Japan's automakers stumbled badly on their first steps into the big U.S. truck and sport-utility vehicle market and Detroit profited. Toyota Motor Corp.'s new Highlander sport-ute, unveiled last week in New York, is aimed squarely at buyers of Ford Explorers and Jeep Cherokees. There is too much money on the table to ignore. With sales growth still surging in the United States and Europe, the world's automakers are pouring new products into market segments traditionally dominated by players other than themselves. The Japanese see big bucks in trucks and, especially, sport-utes.
More entries are likely.
Detroit should be more than a little concerned. To fight back, Detroit's auto bosses are doing two things at the same time. We'll see how well they work. First, Detroit is fielding new products designed to exploit its strengths in profitable truck segments without substantially increasing manufacturing costs. Look at General Motors Corp.'s Chevrolet Avalanche, Ford Motor Co.'s coming Lincoln Blackwood and DaimlerChrysler AG's PT Cruiser.