http://www.detnews.com/2004/autosins...tos-120247.htm

European car sales hit skids in USA
By Earle Eldridge / USA TODAY

U.S. sales of European cars are tanking as buyers switch to Japanese or Detroit brands.

Sales of European brands fell 6.9% in the first quarter, while Asian brands were up 9.5% and domestic sales grew 2.2%, according to Autodata.

Meanwhile, almost 40% of Volkswagen owners who bought a new car in the first quarter switched to an Asian brand, according to Power Information Network, an affiliate of J.D. Power and Associates. More than 22% of Mercedes-Benz owners switched to an Asian brand during that time.

"Owners of every European brand are moving away from the brand," says Tom Libby, director of industry analysis for the Power Information Network.

Quality might be an issue. While the quality of all brands has improved since 1998, Europeans have made the least gains, according to J.D. Power's initial quality survey.

The survey asks new vehicle buyers to identify problems in the first 90 days of ownership.

European brands went from ranking No. 1 in the 1998 survey to tying for second place with domestics behind Japanese brands in 2003.

Europeans particularly have problems in the survey with features such as electronic accessories, turn signals, power windows, sunroofs, trip computers and navigation systems, says Brian Walters, senior director of vehicle research for J.D. Power.

This year, for the first time in 24 years, the average domestic car was rated more reliable than the average European car in Consumer Reports magazine's annual survey of owners.

"It comes down to reliability," says David Champion, head of the magazine's auto test center. "Reliability of European brands has taken a toll on sales."

Volkswagen has set up a 50-person team to attack quality and reliability issues.

"Our goal is to find the root cause of any quality issue and get it resolved within eight weeks or less," says VW spokesman Tony Fouladpour.

But Fouladpour says VW's sales drop, 25% in the first quarter from a year ago, has more to do with the fact that VW models carry less rebate money than rivals.

Mercedes says its sales were down about 5% in the first quarter because of a changeover to new models. The brand has 10 new products coming for the 2005 model year.

Keith May, vice president of sales for Mercedes-Benz USA, predicts those new models "will take us to another record year this year, and our biggest product offensive in history (is) coming in 2005 and 2006, which will take us forward from there."

 

Lexus Announces Price Increase on Several '04 Models

TORRANCE, Calif., April 9 /PRNewswire/ -- Lexus announced a price increase today for six of its 2004 models.

The manufacturer's suggested retail price (MSRP) for Lexus' full-capability luxury SUV, the LX 470, will increase 0.5 percent, or $300, to $64,475. The GX 470 mid-size luxury SUV, will increase 0.2 percent, or $100, to $45,375. The MSRP for the all-new second-generation RX 330 mid-size luxury SUV will increase $100, a 0.3 percent change, to $35,275 and $36,675 for the front-drive and all-wheel drive models, respectively.

The Lexus LS 430 flagship sedan will increase 0.5 percent, or $250, to an MSRP of $55,375. The MSRP for the GS 300 performance sedan will increase 0.4 percent, or $150, to $38,875, while the GS 430 will increase 0.3 percent, or $150, to $47,975. And, the SC 430 will increase 0.5 percent, or $300, to an MSRP of $62,875.

The price changes are effective as of April 1, 2004.

 

https://www.clublexus.com/forums/sho...hreadid=116387

 

No, Lexus is not greedy....all of these announced increases are well under 1%....which doesn't even keep up with the general inflation rate in the economy. And no increase at all on the ES and IS? Line up, guys..........


Not all of the sales figures for European brands are bad. Saab continues to improve....the few Saab traditionalists that the company may have lost by dropping hatchbacks has been more than made up by the Saab newcomers that have never considered the brand before. And Saab reliability has been reasonably good though not up to Lexus / Infiniti standards.
.......Now it they would just get rid of that idiotic console-mounted ignition switch............

 

"It comes down to reliability," says David Champion, head of the magazine's auto test center. "Reliability of European brands has taken a toll on sales.

Well...seems people are really starting to wake up and realize that just because you own a benz or BMW (which I notice are CONSTANTLY being described as staus symbols and symbols of success) doesn't mean it's an M3 or S600. If you buy a C230 hatch thingy, its obviously gonna be less impressive as the other higher models. I understand how the trickle effect works, but it's not a direct translation like some people think. Lexus/Infiniti are both excellent in reliability and both make some very impressive cars. I think its just taking a lot of people time to adjust from the old thinking of gas saving compacts to serious, well built, luxury cars.

James

 

Is this guy deluded or what? Even after an independent study saying quality is an issue and JD Powers ranking VW near the bottom, he thinks it's about the rebate money. What a tool.

 

Great find. The "Day of Reckoning" is upon us.

 

You mention JD Power ranking VW "near the bottom". The problem with JD Power rankings is that they don't list results by RANK for anything that scores BELOW the "average" mark. They list results by rank for all the above-average products, but only list ALPHABETICALLY for below-average ones. So you know just where the better makes stand but you don't know precisely where the lower-ranked brands stand. I deal with JD Power frequently...I am one of the people they come to regularly for auto quality opinions....and I've complained to them several times that this should be modified to show EVERYTHING by RANK like Consumer reports does, but JD Power refuses to do this. They say they don't want to "disparage" certain manufacturers in public. So.....VW appears at the bottom of the JD Power below-average list simply by alphabet ( V ), not necessarily rankings. Now...at Consumer Reports...it is in FACT near the bottom.

Rebate money does, in fact , help keep poor-quality manufacturers in buisness...we have seen this with Ford, Chrysler, and GM all three. Their sales figures often go up and down with rebates.

 

Interesting info mmarshall. Thank you.

 

Even this is giving the Europeans too much credit, as the BMW M cars and Benz high-end models (S and CL) are slipping. Still, to maintain their reputations for quality (which are now SERIOUSLY tarnished), you SHOULD be able to buy a C230 and have it be just as rock-solid as a Maybach. I may be wrong, but I would suspect that the ES is just as reliable a car as the LS--Lexus GETS it.

 

I agree with you, but when I said impressive I meant performance, head turning capability, and overall luxury. Kinda like the guys who bought the E36 318i's, and badged it an M3...

I am with you as where you say the reliability/build quality should be up to par as the Maybachs, and 760's, but I see like this; the Germans expect their reputation to be defined by their HIGHEST luxury mark, where in the real world it is the opposite. A company is only as good as their weakest car, and in cases of BMW and MB, that is very very sad.

James