America might be in a recession, but the auto industry is in a depression.
Car sales so far this year are down 35
percent compared with 2008, and that was a bad year, too, on account of $1.50
a litre gas
and the start of the Great Recession. Auto sales peaked at nearly 17 million in 2006,
and automakers used to consider
14 million in annual sales a bad year. In 2009, automakers will be lucky
to sell 10 million vehicles.
Some of the victims, like recovering
bankrupts General Motors and Chrysler, are well known.
But stalwart Toyota is struggling, too. Niche brands like Saab and Volvo have lost traction.
Nissan's Infiniti luxury division is down.
Other brands, however, have gained
ground at the expense of their tire-spinning rivals. With the market so depressed,
no major automaker has registered a year-over-year sales increase. But several
automakers have gained market share,
usually thanks to thrifty cars with good quality that buyers consider a great
value during tough times.
Companies gaining share during
a downturn often become consumer favorites and position themselves to thrive
when the
economy returns. So automakers inching up the food chain now could become
market leaders in a better economy.
Here are the brands that have gained the most market share so far this year, compared with 2008:
Hyundai
(4.3 percent market share, up 1.1 points). The South Korean automaker has
been aggressively expanding its presence in
North America, with a strategy that seems tailored to a sharp recession:
Offer lots of features at lower prices than the competition,
while boosting quality. The Genesis sedan, named North American Car of the
Year, gave Hyundai its first entry in the luxury
market last year. Other vehicles like the Santa Fe and Veracruz crossovers,
the Sonata and Accent sedans, and the Entourage
minivan have all picked up market share at a time when customers are stingy
with a buck.
The test will be whether buyers stick with Hyundai once the economy recovers,
and they're feeling a bit more flush.
Kia
(3.1 percent market share, up 0.9 points). This South Korean nameplate employs
the same value formula as its sister division,
Hyundai, with more of an emphasis on funky cars for 20-somethings. The new
Soul, for instance, is a boxy hatchback with a
sporty ride and flashy options like pulsing lights that match the cadence
from the speakers. The new Forte is a cheaper
alternative to compacts like the Toyota Corolla and Honda Civic. Other models
like the Sorento and Borrego crossovers
are borrowed from the Hyundai lineup.
Subaru
(1.9 percent market share, up 0.7 points). This Japanese automaker offers
just four basic models, but its streamlined
approach and focus on pragmatic, all-wheel-drive vehicles have worked well
among consumers fed up with marketing hype.
The new Forester crossover has earned high marks for comfort, practicality,
and value and earned twice the market share
of a year ago. And since it has no huge SUVs, Subaru hasn't been forced
to do damage control as buyers shift to smaller vehicles.
Ford
(13.6 percent market share, up 0.5 points). This domestic automaker has been
losing billions of dollars and urgently
restructuring, but unlike GM and Chrysler, it has avoided bankruptcy and
a federal bailout. That makes Ford a chief
beneficiary of its rivals' woes. Buyers who want to back the home team but
are turned off by the bailouts have been
flocking to Ford, boosting share for high-volume vehicles like the Escape
SUV and the Fusion sedan.
Lincoln and Mercury, could be the top-selling brands in the United States
within a couple of years.
Volkswagen
(2 percent market share, up 0.5 points). The big German automaker has dabbled
in SUVs and minivans, but its core vehicles
—fun compact cars—have been its strength. Sales of the Jetta sedan are up
this year, and new models like the Tiguan
crossover and CC sedan command premium prices even though they're on the
small side for their class.
Honda
(10 percent market share, up 0.3 points). Critics once blasted Honda
for failing to build a big pickup or SUV, or offering
a V-8 engine. Turns out to have been a smart strategy. The worst-performing
vehicle in Honda's lineup is the Ridgeline,
a low-volume, medium-sized pickup. Five other vehicles have gained market
share, including the Fit compact,
the CR-V crossover, and the new Insight hybrid.
Nissan
(6.4 percent market share, up 0.2 points). There's no dragon slayer in Nissan's
lineup, but the Rogue crossover and
Versa hatchback have notched decent market share gains, while the edgy new
Cube is drawing young buyers looking
to make a statement. Oversize vehicles like the Titan pickup and Pathfinder
SUV are losing share, but feisty performance
cars like the 370Z and superfast GT-R have helped pick up some slack. Big
may be out, but speed, apparently, is timeless.