AutoPacific Sees U.S. Carmakers Under Unrelenting Pressure

    TUSTIN, Calif., October 31, 2002; The United States' domestic
vehicle producers; General Motors Corporation, Ford Motor Company and Chrysler
Group continue to lose buyers to import-branded vehicles according to a new
study by auto industry researcher AutoPacific.  About 88% of the sales of the
traditional three American manufacturers were from people who already owned a
domestic brand car or truck (this is up from 87% in 1997).  Only about 12% of
sales of American brand vehicles came from people who owned Asian or European
brand vehicles previously.  And most of those people were buying American
brand trucks ... not cars.
    Asian brands continue to conquest owners of American nameplate cars and
trucks.  About 43% of sales of Asian brand vehicles came from buyers who
previously owned an American car or truck.  About 5% of sales of Asian brands
came from people previously owning a European brand vehicle.  About 52% of
buyers of Asian brand vehicles previously had an Asian brand vehicle.
    The European nameplate vehicles draw buyers equally from Asian (33%),
American (32%) and European (35%) brands.
    These basic car buyer dynamics forecast continuing pressure on domestic
manufacturers struggling for sales in the face of unrelenting pressure from
Asian and European manufacturers.  The environment for new car and truck sales
in the United States is projected to remain viciously competitive over the
next five years.  According to George Peterson, President of AutoPacific, the
old truism is apparently continuing to hold, "Once a customer has been lost by
an American manufacturer to an Asian brand it is very difficult to get them
back.  Once a customer buys a European brand, it is very difficult for an
American or Asian brand to get them back."
    AutoPacific, Inc is an automotive specialist market research and product
consulting company headquartered in Tustin, California.