No more “buy American”

What with Ford planning to lay off a few people over the next few years, there's going to be a lot of navel-gazing this week about the state of the U.S. auto sector. Rick Popely and Deborah Horan have a story in today's Chicago Tribune that points out one big problem GM and Ford have -- the "Buy American" campaign doesn't work at crunch time anymore: When domestic automakers had their backs to the wall 25 years ago, they could count on a "Buy American" sentiment to keep some customers from defecting to fuel-efficient foreign cars. Today, many loyal domestic vehicle owners say they would be comfortable buying an import.... For one thing, it isn't even clear anymore what "Buy American" means when it comes to cars and trucks. Many of those new models from Toyota and others are built in places like Kentucky, Indiana and Alabama, while the Chevrolet Aveo is imported from South Korea. Meanwhile, some Dodge Ram pick-ups are built in Mexico. Dodge, of course, is a domestic brand, but it's owned by Germany-based DaimlerChrysler. This blurring of vehicle origin means that Ford or GM can't rely on a "Buy American" marketing campaign. Art Spinella, president of CNW Marketing Research, says the confusion over national origin means consumers are less likely to try to help fellow Americans by buying a domestic vehicle. "Basically, they throw their hands in the air and just buy what they like," Spinella said. The lack of stigma attached to buying a foreign product goes beyond the auto industry. Compared to the early 1980s, consumers face shelves stocked with foreign-made products--from televisions to running shoes. Often they don't notice the origin of what they purchase. When CNW surveyed shoppers coming out of Wal-Mart stores, 75 percent said they preferred to buy American, yet an inspection of their purchases found that 90 percent were made in China. "They don't even look to see where the stuff is made anymore. It's the price that matters," Spinella said.It's not only price that matters, though, as the story points out later: Though domestic brands get on the shopping lists of two-thirds of car buyers, Spinella said 20 percent of those people wind up buying an import because of better styling, a lower price or a unique feature. For example, when Honda got into the pick-up market last year with the Ridgeline, the truck came with a novel lockable trunk in the cargo floor that holds a 72-quart cooler or three sets of golf clubs. "Ford has been building pick-up trucks for a hundred years, yet no one thought to do that," Spinella said. The only way Ford and GM can combat their Asian rivals is with innovative features like that, or with exciting models like the Chrysler 300, which looks like a Bentley luxury sedan. "They just need to build some products people want to buy, something that people are excited about," Spinella said.... Ford has such a hit with the Fusion, a new midsize sedan that attracts one-third of its buyers from Asian and European brands, according to CNW, and GM's Pontiac division is attracting attention with the stylish Solstice, a two-seat sports car. Ford and GM have steadily closed the quality gap with the leading Japanese brands in owner surveys like J.D. Power and Associates' initial-quality study, yet consumers are still leery. "You can generate interest and excitement with styling and new products, but when it comes time to purchase, people demand a higher level of confidence and security," said Alexander Edwards, chief executive of Strategic Vision, a San Diego consulting firm. That is one reason the Toyota Camry is America's favorite car, despite frequent criticism that it is bland. Consumers have confidence in the car and "trust in the brand," Edwards said, while domestic brands have failed to build similar trust.