Tuesday, May 5, 2009

American Car Buyers Changing Habits to Mirror Europe

In the last decade U.S. automobile buyers have changed the way they go about buying their cars. We can just assume the most common sense answers to this statemen in that the economy and fuel costs play the major role, as well as the "Go Green" phenomenon.

Tighter credit, depleted retirement savings and environmental concerns are among the forces reshaping the U.S. auto market into something that looks more like Europe and the rest of the world -- where people buy smaller, more efficient cars and hold on to them longer rather than getting a colon cleanse every few years like they did in the past.

The U.S. automakers have not kept up with the trend and it is seen in the bankruptcy of Chrysler last Thursday, and General Motors, which is on the road to taxpayer ownership, have been sideswiped hardest by careening change.

No one is expecting Americans to turn into a nation of fuel-sipping frugal pragmatists. But most analysts see little chance that the market will bounce back to its recent heights.

"Our entire business plan is constructed around the idea of being a profitable enterprise at a lower industry sales volume and a change in the mix of what's sold," said George Pipas, Ford's sales analyst.

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