Friday, October 23, 2009
Once upon a time Americans knew exactly where they wanted to go to buy a new car—to the same dealer that sold them their last automobile. But the storied days of brand loyalty have disappeared, thanks to the implosion of the Big Three in Detroit and growing discrimination among consumers that has even weakened the branding power of foreign manufacturers like Toyota.
Two decades ago four out of five Americans were repeat buyers of the same car brand, continuing a long tradition of “Ford families” or “Chevy families.” Now, only about 20% of car buyers in 2009 have stayed with the same brand.
“The days when people bought a Toyota car or a General Motors product for 25 years are over,” Art Spinella, president of CNW Marketing Research, told The New York Times. “There really isn’t any brand loyalty any more.”
Chevrolet and Ford were the top two sellers in the U.S. market in 2004, each with more than a 16% share. Three Chrysler brands—Chrysler, Dodge and Jeep—were in the top 10 as well.
In 2009, Toyota is No. 1, with 14% of the market, followed by Ford, Chevrolet, Honda and Nissan. Hyundai has managed to carve out a 4% share by luring away Toyota owners, now that the Korean manufacturer has a reputation for reliability and being less expensive than its Japanese rival.
-Noel Brinkerhoff
For Car Buyers, the Brand Romance Is Gone (by Bill Vlasic, New York Times)
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