Sad reality
The sad reality in the auto industry these days is that people aren’t brand loyal anymore, according to Bill Vlasic of the New York Times News Service. Back in the 1980s, dealers didn’t have to do much at all to get customers to trade in their Ford for a Ford or their Toyota for a Toyota. About 4 out of every 5 Americans were repeat buyers in the 1980s. And furthermore, the “allegiance often continued through generations of families.” Well, not anymore. Partly because the consumers have become more fickle in their tastes and also because of everything that has gone on in Detroit, there is no brand loyalty anymore. Sad but true. Only about 20% of consumers this year have stayed with the same brand when they purchased new vehicles, according to a study done by the Oregon-based firm CNW Marketing Research.
Just five years ago, Chevrolet and Ford were the top 2 brands in the U.S. market each with more than 16% of the market share. Chrysler had 3 brands, Dodge, Chrysler, and Jeep, in the top 10. Not anymore. Toyota sits atop these days with 14% of the market share. Then Ford, Chevrolet, Honda, and Nissan. Chrysler is no longer in the top 10 and has been replaced by Hyundai and Kia.
The reality is that people trust many brands and improvements in the vehicles have made people willing to give up their brands to try something new and exciting for now…until the next vehicle comes out with new technology and exciting features to try out. Oh well, maybe someday we will be more loyal again. In the meantime on the flip side, it keep the automotive companies thinking and trying to be more innovative in their new models. Right?