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U.S.carsales
The‘BigThree’Detroitautomakers–-GM,FordandChrysler-–lostconsumerconfidencein2009aftertheywereseverelyhitbytheglobaleconomiccrisis.ThecrisisalsoexposedtheinherentproblemwiththeBigThree’sproductportfolio,whichlackedup-to-dateengineeringandextensiveresearchanddevelopment.
Further,themajorityoftheirsalescomprisedpickuptrucksandSUVsratherthanfuel-efficientvehiclessuchasthesmallcarsthattheconsumershavestartedtoprefer.Thisskewedportfoliowasfurtheraggravatedbythegovernment’spushforfuel-efficientandenvironment-friendlycars.Fordralliedbetterthanitshometownrivals,withanearlyresponsetotheshiftinconsumerpreferencetowardssmallcars.
However,theDetroitautomakers,especiallyFordandGM,bouncedbackwitharecoveryintheglobalmarketandrestructuringoftheproductportfolioattheendof2009.In2010,Ford’ssaleswentup19%to1.94millionvehicles,whilesalesofGMandChryslergrew7%to2.22millionvehiclesand17%to1.09millionvehiclesduringtheyear,respectively.
FordfocusesonitsFord,LincolnandMercurybrandedcars,sheddingtheVolvocars,whileGMconcentratesonfourcorebrands-–Chevrolet,Buick,GMCandCadillac-–withdrawingSaturn,Hummer,PontiacandSaab.
Further,FordhasdecidedtoexpanditsluxuryLincolnline-upatthecostofitsMercuryline-up,whichhasbeenphasedoutattheendof2010.Thecompanyplanstolaunchasmanyas7newLincolnvehiclesinthenext4years,includingasmallcar.
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