Brand loyalty, once a common element of the American automotive industry, is now a thing of the past, as this year only 20% of car shoppers stayed loyal when purchasing a new car, according to the New York Times.
Just half a decade ago, Chevrolet and Ford held the top positions, with Chrysler, Dodge, and Jeep all present in the top 10. Today, Toyota sits on top with a 14 percent market share followed by Ford, Chevy, Honda, and Nissan. Chrysler and Pontiac have both fallen out of favor as Kia and Hyundai have replaced them int he top 10.
According to FoMoCo’s head of marketing James Farley, “Brand loyalty has shrunk because of widespread improvements in the products,”. He also said that “The “˜trust factor” is more or less the same for most cars.” According to the New York Times, “Hyundai has carved out a 4 percent share of the American market because its vehicles are less expensive than Toyota”s but are perceived as just as reliable, said Mr. Spinella of CNW Marketing Research.
The company differentiated itself further this year when it offered to take back cars if the owners lost their jobs and could not afford to make payments.”
“I can”t tell you how many car clubs I have been to where they own old Mustangs and vintage T-Birds, but they drive Camrys,” Mr. Farley told the times, indicating that nostalgia is of no value to today’s consumer.
– By: Stephen Calogera
Source: NY Times