US Cars Superior to Foreign Cars?

In a recent AP-GFK Poll, American consumer sentiment seems to be favoring domestic automobiles over foreign car makers.  In the poll, 38% of those surveyed said that American automakers produced the best quality cars.  Mean while, 33% of those polled said that foreign automakers produced the best quality cars.  This is a huge shift from the same poll done in 2006.  In December 2006, consumers heavily favored foreign automobiles (49%) over domestic (29%).

The poll suggests those numbers are largely fueled by a plunge in Toyota's reputation and an upsurge in Ford's. The poll was conducted in March, as Toyota was being hit hard by negative publicity over its recall of more than 8 million vehicles around the globe and allegations that it responded sluggishly to safety concerns.

Though the U.S. automakers advantage is slim, it marks a significant boost in consumer confidence for American automakers beaten badly by the recession but more so by their poor business practices and the stiff competition from foreign manufacturers. 

However, when those polled were asked specifically "which automaker makes the best quality cars"... the answer was 47% saying Asian companies such as Toyota, Honda and BMW.  Only 38% said domestic companies such as Ford and General Motors. 

So are US automobiles really on the rise or is this rise simply based on the way the poll questions were asked?  The only way to really know the truth is to take a look at some real numbers.

General Motors posted a 6.4% gain in U.S. April sales as of yesterday.  GM sold 183,997 vehicles in April, up from 173,007 vehicles the same month a year ago when U.S. auto sales were near the bottom of a punishing slump and the automaker was sliding toward bankruptcy.  Sales for GM's four remaining brands -- Chevrolet, Buick, GMC and Cadillac -- rose 20% from a year earlier to 183,091 vehicles.  Sales of the brands GM has dropped through its U.S. government-funded restructuring -- Hummer, Pontiac, Saab and Saturn -- plunged by 96% to just 906 vehicles as dealers sold off remaining inventory.

Chrysler Group said as of yesterday that U.S. April sales rose 25% to 95,703 vehicles from 76,682 a year ago. Chrysler brand sales for the month rose 61% to 22,386 vehicles, Jeep sales were flat at 19,645 vehicles, and Dodge sales rose 24% to 53,672 vehicles. Total car sales rose 96% and total truck sales increased 7% in April, Chrysler said.

The story was similar at Ford, which reported sales rose 25% on the strength of new models. Ford said it sold 162,996 vehicles last month thanks largely to beefed up demand for its Ford Fusion, Escape, Flex and Transit Connect vehicles. Ford sold fewer than 130,000 cars in April 2009.  Ford, which has been battling Toyota for the No. 2 U.S. sales spot, said it has gained market share in 18 of the last 19 months.

Toyota said as of yesterday that U.S. April sales rose 24.4% to 157,439 vehicles from 126,540 a year ago. Passenger car sales rose 20% to 93,407 while light truck sales increased 31.5% to 64,032 and sports utility vehicle sales climbed 40.4% to 28,530. Toyota division sales rose 23.8% to 139,080 and Lexus division sales were 29.3% higher at 18,359.

According to April's numbers, GM has an edge of 26,558 vehicles sold for the month of April in the U.S.  According to the Wall Street Journal, GM holds a slight advantage of market share at 19.1 percent in 2009, while Toyota held 16.1 percent, Ford percent held 14.6 and Chrysler held 10.7 percent.

In all, can we draw a conclusion that US cars are superior to Asian cars?  I think it's a bit too early to make that proclamation.  Even with all of Toyota's bad press from the recalls, consumers were jumping on the deals and incentives that were given in March and April.

GM is still leading in the U.S., with Toyota in second and Ford making some headway in third.  However, in the global landscape, Toyota still leads the way with GM in second and Volkswagen in third.

So can we come to a conclusion that US cars are superior to Asian cars?  Not really, it's like asking who is the best basketball player in the NBA?  Kobe Bryant or LeBron James?  Who makes a better Cheesesteak sub?  Geno's or Pat's?  It's just one of those things that will always debated... unless some automakers go out of business... then we'll know the truth.

I'll leave you with this last little tidbit... when those polled were asked "what would be your dream car", foreign automakers got the nod 38% to 31%.  So when it seem that money is no object, foreign cars are superior.