Patriotism doesn't sell cars today
By Rick Popely and Deborah Horan
Tribune staff reporters
Published January 24, 2006
When domestic automakers had their backs to the wall 25 years ago, they could count on a "Buy American" sentiment to keep some customers from defecting to fuel-efficient foreign cars.
Today, many loyal domestic vehicle owners say they would be comfortable buying an import.
Chuck Sonne, a Country Club Hills electrician, drives a 1997 Chevrolet pick-up and has owned two Fords in the past, but asked if he would only buy an American vehicle in the future, Sonne said, "No, whatever runs better and is cheaper."
As Ford, which announced a massive restructuring Monday, tries along with struggling GM to regain market share in the U.S., it faces an uphill climb. Asian rivals, such as Honda, Toyota and Hyundai are luring buyers with a relentless supply of new and compelling models.
But while the competition has intensified, the comforting old idea for Ford and GM that Americans will make patriotic purchases carries less and less weight.
For one thing, it isn't even clear anymore what "Buy American" means when it comes to cars and trucks. Many of those new models from Toyota and others are built in places like Kentucky, Indiana and Alabama, while the Chevrolet Aveo is imported from South Korea. Meanwhile, some Dodge Ram pick-ups are built in Mexico. Dodge, of course, is a domestic brand, but it's owned by Germany-based DaimlerChrysler.
This blurring of vehicle origin means that Ford or GM can't rely on a "Buy American" marketing campaign.
Art Spinella, president of CNW Marketing Research, says the confusion over national origin means consumers are less likely to try to help fellow Americans by buying a domestic vehicle.
"Basically, they throw their hands in the air and just buy what they like," Spinella said.
Different world
The lack of stigma attached to buying a foreign product goes beyond the auto industry.
Compared to the early 1980s, consumers face shelves stocked with foreign-made products--from televisions to running shoes. Often they don't notice the origin of what they purchase.
When CNW surveyed shoppers coming out of Wal-Mart stores, 75 percent said they preferred to buy American, yet an inspection of their purchases found that 90 percent were made in China.
"They don't even look to see where the stuff is made anymore. It's the price that matters," Spinella said.
For about one-third of car shoppers, where a vehicle is built may be moot because they don't include domestic brands on their shopping lists, according to CNW's research.
That's undoubtedly due in part to lingering perceptions about quality problems as well as styling issues.
"There's no real American product I want, except maybe the Chrysler 300C," said Chicagoan Curtis Patterson while browsing new models Monday at an Orland Park Acura dealership.
Patterson said Ford doesn't offer anything that excites him.
"They're not as aggressive in product design for people my age," the 36-year-old security officer said. "It's not contemporary to me. Even GM has a little more style."
Dan Gierlowski, a 19-year-old student at Moraine Valley Community College, is more blunt, dismissing Ford's products as "garbage" while eyeing an Acura RSX, made by Japan-based Honda. "I like sporty compact cars. If you drive one of these you will want one," Gierlowski said. "They're fun little toys, small and fast."
What about a sporty car like the Mustang, one of Ford's hottest sellers last year?
"I don't want to be associated with any of them," he said of Ford. "I don't like the retro style. The new Mustangs have the old look."
Innovation is the key
Though domestic brands get on the shopping lists of two-thirds of car buyers, Spinella said 20 percent of those people wind up buying an import because of better styling, a lower price or a unique feature.
For example, when Honda got into the pick-up market last year with the Ridgeline, the truck came with a novel lockable trunk in the cargo floor that holds a 72-quart cooler or three sets of golf clubs.
"Ford has been building pick-up trucks for a hundred years, yet no one thought to do that," Spinella said.
The only way Ford and GM can combat their Asian rivals is with innovative features like that, or with exciting models like the Chrysler 300, which looks like a Bentley luxury sedan.
"They just need to build some products people want to buy, something that people are excited about," Spinella said.
Ford has such a hit with the Fusion, a new midsize sedan that attracts one-third of its buyers from Asian and European brands, according to CNW, and GM's Pontiac division is attracting attention with the stylish Solstice, a two-seat sports car.
Ford and GM have steadily closed the quality gap with the leading Japanese brands in owner surveys like J.D. Power and Associates' initial-quality study, yet consumers are still leery.
"You can generate interest and excitement with styling and new products, but when it comes time to purchase, people demand a higher level of confidence and security," said Alexander Edwards, chief executive of Strategic Vision, a San Diego consulting firm.
That is one reason the Toyota Camry is America's favorite car, despite frequent criticism that it is bland. Consumers have confidence in the car and "trust in the brand," Edwards said, while domestic brands have failed to build similar trust.
Ford may have improved its quality in recent years, but it won't be enough to win back the business of Mary Jane Quinn. Her last Ford was a 1989 Taurus that frequently died at toll plazas and wouldn't restart.
"I have a total dislike for Ford. It's kind of like, you get burned once you're not going to do it again," said Quinn, 57, of Oak Forest, who now drives a Subaru Forester.
But Donald Wayne, a Chicago engineer shopping at a Home Depot in Orland Park, said he tries to help other American workers keep their jobs. Wayne owns a Ford pick-up and Chevrolet Blazer.
"I try to buy American first," said Wayne, 48. "I live in America, so why not."
Wayne was laid off from Wisconsin Steel in 1980 and sympathizes with autoworkers who are losing their jobs.
"I can feel for them," he said. "We've got to work."