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- Path: sparky!uunet!srvr1.engin.umich.edu!rphroy!kocrsv01!c23st
- From: c23st@kocrsv01.delcoelect.com (Spiros Triantafyllopoulos)
- Newsgroups: rec.autos
- Subject: Re: Politics of car buying
- Message-ID: <1993Jan21.163213.25809@kocrsv01.delcoelect.com>
- Date: 21 Jan 93 16:32:13 GMT
- References: <1993Jan20.180843.2074@kocrsv01.delcoelect.com> <1993Jan21.152619.29534@zia.aoc.nrao.edu>
- Sender: news@kocrsv01.delcoelect.com (Usenet News Account)
- Organization: Delco Electronics Corp.
- Lines: 49
-
- In article <1993Jan21.152619.29534@zia.aoc.nrao.edu> gvanmoor@nrao.edu writes:
- >Well, I lived in Germany for seven years and I assure you, it is certainly much more
- >than the low teens; the lates figure I have is around 20-25%. But this is beside
- >the point anyway, my point was that in a market like Germany the Japanese outsell
- >the American made cars by at least a factor 10 (I deliberately give a low estimate), where none of the two receives any preferential treatment.
-
- I posted the figures for 1990, and the figure was 15.something per cent, not
- 20 - 25%.
-
- As for who outsells who, you have to examine things like dealer networks,
- availability of parts, relevant laws which pretty much outlaw big engines
- (as in many other parts of Europe), etc etc.
-
- The two are related; if a company has a decent market share then it is
- worth for them to go to the trouble of setting up a decent dealer
- network and vice versa. A classic example of that was last year when I
- visited Greece, and had a few GM brochures with me (annual report
- etc). I was discussing with some friends who all drive 2 liter
- Japanese trucks (nothing else is available) and they all commented on
- how desirable BIG trucks would be for them (construction businesses,
- agriculture, livestock, load hauling, towing, etc). Since they'd be
- for professional use they wouldn't have to pay steep taxes even for
- big cars. Yet US truck makers don't sell there; the volume is too low.
- Is it worth setting up a dealer network for such low volumes?
-
- Both GM and Ford have European operations selling specifically to
- (say) Germany; they have pretty good market shares (Go Opel!) and
- pretty good models. US Vehicles which sell in Europe would be things
- that are not available there, mostly Minivans, 4 wheel Sport-Utility,
- and high-end sports cars ('vettes, for example).
-
- Does Germany have laws penalizing BIG engines (i.e. if I wanted to
- import, say, a Seville STS would I be looking into $80K? You have to
- consider that as well.
-
- Finally, look at markets where TRADITIONAL US cars compete against
- others; We seem to be doing well in the Middle East, particularily the
- oil countries. Different requirements there of course; but we do build
- for these requirements (I've seen auto press reports of modifications
- required to sell to, say, Saudi Arabia or Kuwait, they're quite
- extensive in order to cope with the weather and driving conditions
- there), and we do make them and we're pretty successful there.
-
-
- Spiros
- --
- Spiros Triantafyllopoulos c23st@kocrsv01.delcoelect.com
- Software Technology, Delco Electronics (317) 451-0815
- GM Hughes Electronics, Kokomo, IN 46904 [A Different Kind of Disclaimer]
-