American cars in foreign countries.

[waxman]

In America, people buy a lot of foreign designed or brand name vehicles. Overseas though, it seems other countries do not purchase American styled vehicles. What gives? Gas costs? Cost of ownership? I do not think you will see many Ford Explorer's overseas or Dodge Neons driving around. What don't European, Asian, or Middle Eastern countries like about American styled cars?

[Ron Ketcham]

More than you think go over, plus Chyrsler has a Mini Van plant for Europe.

The problem in most European countries is the size of the vehicle or more important, the size of our engines.

The size of the motors (liters) is limited without paying a surcharge every year. Depends on the country, but a 5 liter is more than double a 1.8 liter motor.

Japan gets a couple thousand Explorers, Taurus' a few other each year. They are converted in Bencia and shipped over.

The same for Europe with some vehicles, only they go out of Baltimore.

In the mid 90's all the car guys in Europe wanted T-Birds, Monte Carlo's etc, but they could only be brought in through the grey market. Ford and GM did not want them there, due to the effect they could have on their regular models sold over there.

Cadillac took the Seville with the NorthStar to Europe in limited numbers starting in 93.

This sort of thing goes on all the time.

But,keep in mind that all of the companies have plants and models in these markets, vehicles that meet the actual demands of the majority of the market. So why screw up the market with ******* child type cars.

Mazda, builds in Flat Rock, Mi the 626, used in North America. The one that say, Singapore gets looks like it but until a few months ago was only available with a 4 cyl, not the V6 we get.

Once again, the tax on liters issue.

The new MP3 they brought out, the new MP5 wagon, have been over there for over a year.

We just got them, etc, etc, .

35,000,000 vehicles were built world wide in 2000.

North American production of that were around 15, 000,000 give or take a few.

That is one hell of a lot of vehicles. The shipping, the regulations of each country, makes it hard to do a single model for the world.

Ford's Focus is a world platform, the Lincoln LS/Jag S are world platforms, the Camary, the Honda Accord, the Hyundai Excel, XG-300, Santa Fe, etc etc are for the world.

But go to Manila or even Trinidad and take a close look at a Focus. Lots of little differences. These are needed for the market.

Same all over.

My trip later this month is to Manila, Singapore, Kula Lupur and Bankok.

A good part of the time will be spent with Ford and Mazda operations in those areas. Addressing common concerns, some the same as we see here.

But, they have given me a list of concerns that are not normal in North America. Climate, drivers expectations, dealers prep, etc are different.



Ketch

[waxman]

Yeah, I knew they had many vehicles in those countries styled for those countries, just not the American style. Never thought about American styled sports vehicles affecting sales of the foriegn styled vehicles over there but figured energy consumption was an issue. Thanks for the info.

[bigboyhf]

The price of gas in Europe and most other countries besides Saudi Arabia and other oil producing countries, is roughly double what we pay here. I also noticed much more use of Diesel fuel due to lower cost. Very few American cars are set up with diesel engines...

H

[Deckard]

Originally posted by Ron Ketcham


The problem in most European countries is the size of the vehicle or more important, the size of our engines.

The size of the motors (liters) is limited without paying a surcharge every year. Depends on the country, but a 5 liter is more than double a 1.8 liter motor.

Very true. In addition to Ron's points insurance costs are also increasing by the size of the motor.

But I think another reason why American cars are not selling good, for example in Germany (where I'm from) is the weak marketing. One can hardly see any TV ad's on American cars here. It kinda surprises me that US car manufacturers are not using TV as a marketing tool.

Most of you would laugh when I say one of my favorite cars is Chevrolet Caprice Classic. You could get one here for the price of a VW Golf with full options. But second hand prices, gas prices, gas consumption, maintainance, spare parts issues are playing a big role on purchase decisions.

Deckard

[Belicoso]

Cost is another concern...
Many Mid-Sized Vehicles are considered Luxury in 3rd world countries...
Not that they are much more expensive than in the US (this depends on the country) but the income is much lower, and interest rates are WAY higher.

That is why US and even European manufacturer's come up with lower cost cars for these markets

[Meguiar]

As you said, it depends on the country income, people income, purchasing power and maintenance cost.

Gulf countries differ in their abilities to buy cars. Take Kuwait, Qatar and UAE for example, they have fewer people than their neighbours, high oil income and high salaries. As a result, they like Eurepian cars especially MB, BMW. They have the ability to buy them and maintain them in good condition due to the low cost of maintanance.

Saudi Arabia on the other hand, the maintenance cost for such cars are relatively very very very high, especially the newer MB and BMW, and do not forget the breakdown problems. I also to mention lower income per capita, high number of people, high taxes on imports ( which is the most important reason).

The most popular cars in Saudi Arabia are Japanese, American and European in priority order. Young people buy Japanese cars, when young people become older and have a family ( big family), they purchase American cars.

By the way, the most popular Amercian cars are GMC and Chevrolet due to lower cost of maintenance, relaibility, comfort, more space than Japanese, and.......so on.

One Lebanese man once talked about why Saudi people do not buy BMW cars, the most cars widely used are USA and Japanese made. Another Guy answered him ( it is the vehicle cost, maintenance cost, breakdown problems, unskilled labor, bad agents and... so on..). The Lebanese man replied that they in Lebanon, every man and kid is able to maintain BMW cars because they are cheaper in everything like Chevrolet caprice in Saudi Arabia is widely popular because every one know how to fix it. BMW can only be fixed by the dealer who has the skilled labor and so on...

This is a long issue, and more to say but leave it to the future.

Jameel.

[PrinzII]

I have seen a Z28 in Germany but too bad it was only in the Vauxhall showroom.