Are Asian Automakers Feeling the MPG Hurt?
American automakers are reporting strong March sales figures. The numbers for the "big 3" are impressive. General Motors has reported an increase of 6.4%, followed by Ford Motor Company at 5.7%, and Chrysler Group LLC at a close 5%.
As for Asian car companies, the March sales figures are not so strong. While Honda reported an impressive 7% increase, it all goes down hill from there. Hyundai has reported a 2% loss, while sales are down for Kia a reported 14.6%.
With both Kia and Hyundai's plummeting sales figures, one can't help but wonder how closely their recent announcement has played into the minds of the American consuming public. In fact, it was just a few months ago that both Automakers announced that the reported miles per gallon for many of their 2011-2013 models were incorrect. And the adjustments were not minor, some estimates being modified by the automakers as many as 3 miles per gallon below what was represented at the time of sale. In their press release, the automakers claim that the incorrect fuel economy estimates were the result of incorrect testing procedures implemented at their testing plant in Korea. However, the March sales figures coming in could indicate that American consumers are viewing the incorrect fuel economy estimates with an eye of distrust.
Whether or not Kia and Hyundai's MPG "flop" has impacted their March 2013 sales, the outlook is not good for either automaker, as they hold a total of only 8.1% of the March 2013 market share. This figure is abysmal when compared to the towering 44.9% of the March 2013 market share reportedly held by the "big 3". (For detailed sales figures for major automakers worldwide, click here.)
The moral of the story? Be honest with the American public and they will spend.
Beth Wells
Helping Consumers Get Rid of Lemons, 9 Years Running
