It looks like Ford, GM and Chrysler aren’t the only domestic automakers losing market share. According to a story in my August issue of “Automotive Engineering International†the Russian automakers have dropped from 95% combined market share to 49% market share from 2000 to 2006. The funny thing is that they are losing market share to Ford and GM among others. The manufacturer with the largest market share in Russia is Ford. The Ford Focus alone accounts for 7.6% of the Russian market. As part of the recent growth in market share, foreign manufactures are building large assembly facilities in Russia, mostly around St. Petersburg. (Sound familar?) Renault is adding 80,000 units per year to its production capacity in Moscow. Nissan is adding a 50,000 unit per year facility in St. Petersburg. Ford is adding 75,000 units per year to its production capacity in St. Petersburg. GM and Suzuki have also announced new facilities or expansions of existing facilities in St. Petersburg. Russia requires 50% local-content so there is also lots of investment among parts suppliers. Of course if this continues it could be devastating for the Russian automakers and their supplier and dealer network. Maybe Malorn can get together in a chat room with some Russian car dealers and complain about how unfair the global market is. :lol: Russian Sales of Cars and Light Commercial Vehicles (Thousands) -----------2000----2001---2002----2003---2004---2005---2006 Russian---859-----929-----900-----950----1029---1001---924 Foreign----46------79------109-----196-----354----562----960
<div class='quotetop'>QUOTE(jhinton @ Oct 2 2007, 01:00 PM) [snapback]520411[/snapback]</div> There is only one major market in the world where GM does not outsell Toyota: Of course that is Toyota's home field which is very well-protected.
Why no lamenting for the poor Russian automobile workers who are displaced by all this foreign competition? In the end, I'm sure it's the fault of the Russian populous for not insisting on buying only Russian made automobiles. I'm sure that somewhere in Russia, there is a car forum where one raving proud Russian car owner is insulting the owners of imports for ruining their country and increasing their trade deficit.
<div class='quotetop'>QUOTE(TonyPSchaefer @ Oct 2 2007, 03:37 PM) [snapback]520495[/snapback]</div> I guess you must be correct, you are the moderator. I will take it easy, I 'm on double-secret probation. :lol:
Russia is probably the only country in the world whose domestic cars are worse than GM's. Unless the countries that used to be Yugoslavia still make any cars.
<div class='quotetop'>QUOTE(daniel @ Oct 3 2007, 08:01 AM) [snapback]520524[/snapback]</div> Those are the same cars. I've been to the Czech Republic many times and have also traveled to Croatia (Former Yugoslavian Republic) You see body panels mixed and matched between the various brands of Russian cars and Yugos. They are from the same tooling. To the Russians credit they are not still making the same model that we had imported as the Yugo today.
<div class='quotetop'>QUOTE(daniel @ Oct 3 2007, 07:01 AM) [snapback]520524[/snapback]</div> uhh, China. Dont' forget them.
Russia may be losing marketshare, but looking at the numbers, one might think that Russia just can't keep up with their increased demand... I mean, their sales over the past few years is pretty consistent around 1 million units per year. Maybe because of 'democracy' and freer trade/choice, demand has risen and the Russian manufacturers can't keep up. Certainly, their decline in the last two years may indicate a true loss of interest of their product, and GM has stepped in willingly and filled the gap.
Russian automakers are in deep trouble just like the rest of eastern European car makers used to be. Sure, their cars aren't as modern as western cars but in their country a good rugged simple to maintain vehicle is generally better to own. I mean .. have you seen their roads, their wages. Of course most of them fall for the mirage of second-hand western cars, that's the reason they don't buy new. I have a few words about these cars on my site, please visit: classicmotoring.co.cc
Most automakers are in a cash crunch, nobody was ready for the market to almost stop. By the way for the record GM outsells Toyota in 9 out of the top 10 markets in the world. Of course the lone exception is the closed home market of Japan. Would someone like to explain "free trade" to me?
So let me get this straight... GM has higher sales than their competitors in 9/10 of the top markets, yet they need a bailout? Seems to me that something must be horribly wrong at GM if they can't turn a profit while having the highest sales...
Gm's problems are all in the US. They have fixed costs which were put into place when they had 50% of the US market. Now @22% of the US market they can't generate enough cash to cover the fixed costs. They have spent $104 billion the last 5 years funding their retirees pension. Many of these costs become far less beginning in 2010. GM insures more than 1,000,000 people in the United States.
It sounds to me like GM behaved like the federal government did... use money from retirement funds (pension and social security) to pay for stuff today, because you'll always have plenty of money coming in to pay for that stuff later when you need it...
i am sure that is partially correct, but very few pensions are fully funded. If GM would have known in 1980 that in 2008 they would have 22% of the market and that insurance costs would be what thye are today, i am sure the negotiotations with the union woud have gone differently. Remember at that point in time the US govt was talking about breaking up GM.
I see. It is the my fault as a taxpayer that GM did not have a crystal ball in the 1980's. No doubt it was my fault that GM kept paying out dividends for the past decade as their market share collapsed and auto operations profit evaporated. Or that they decided to ignore small, fuel efficient auto development. Or make multi-billion dollar expansion mistakes. Or keep feeding their fat and fatter dealer network. I could go on ... NOT
Actually, what the Russian middle class really need is a vehicle that can drive in poor winter conditions and still have a nice, Western-quality interior. Can you say Honda CR-V, Nissan Qashqai, Toyota RAV4 and various Subaru models, all with four-wheel drive? I think the CR-V and RAV4 with 4WD would be hot sellers in Russia, given how bad driving conditions can be in Russia during their long, cold winters. And both are certainly a major step up with most Russian-made vehicles.
