Detroit Shifts Gears Against Japanese

American Automakers Have Lost Ground And Are Doing Everything To Come Back

(CBS)  Richard and Michelle Conetta are shopping for a new car, but they've already made their decision: the chose a Toyota based on its reputation for reliability and safety — barely considering American brands. Richard believes Japanese cars don't break down.

"I think they won over the public in that respect compared to the American car," he told Sunday Morning correspondent Anthony Mason.

For American automakers that attitude has become an image crisis. A recent survey by the Detroit News found that 70 percent of buyers who avoided American cars said the main reason was concerns about quality and reliability.

David Champion, head of automobile testing for Consumer Reports, said the stereotypes about Japanese and American cars are not far from the truth. He takes reporters on white knuckle rides that compare the cars' maneuverability. He first compared the emergency handling of a Chevrolet Equinox against a Honda CRV swerving to avoid an accident. On the rain slicked road, he gave Honda the higher marks.

"That was about 5 miles an hour faster and a lot easier to drive," Champion said.

He conducted a brake test by driving the cars at 60 miles per hour and hitting the breaks at the same time. The Honda CRV scored better than the Saturn VUE.

"We've found that the domestic manufacturers tend to have longer breaking distances than their Japanese competitors," Champion said. "And really when you're looking at safety, breaking is really one of the major aspects of it."

Even looking inside the vehicles, like this Jeep, Champion finds American brands, for all of their improvements, still don't measure up.

"The whole interior is just really sort of cheap and nasty. And you know, one of the engineers said it's a bit like sitting inside an igloo cooler."

At the annual auto show last week Detroit rolled out its new lineup. But all the highly polished chrome couldn't hide the fact that Motown had another horrible year. Ford's sales were down nearly 8 percent; GM's were off even more, and both companies lost billions.

While Toyota was headed in the other direction — its sales soaring nearly 13 percent in the U.S. for the 5th straight year — its Camry was the best selling car here, while its Lexus was the best selling luxury brand for the seventh year in a row. And this year Toyota could become king of the road. If it hits its target of selling nearly 9-and-a-half million vehicles it will overtake General Motors to become the world's largest automaker, a title which GM has held for more than 75 years.

Toyota made its success right here on the assembly line. That has allowed Toyota to identify problems and correct mistakes more quickly. But Norm Bafunno, a vice president of Toyota who is in charge of this plant in Princeton, Ind., insists there won't be any celebration if Toyota becomes number one.

"There won't be any kind of fireworks display at all the plants or at the sales headquarters in California, or at our design studios in Michigan, it won't happen," he said. "That's not our goal. That's not the culture."

Steve Spear, an M.I.T. engineering lecturer who used to work on the assembly line to study the Toyota system, said that a culture of paranoia persists at the company.

"They constantly worry about who's gonna catch up. And if they can't figure out about whom to worry, they worry that they can't worry," he said.

And U.S. automakers are catching up. Toyota has been plagued by a series of recalls in recent years. In quality rankings, American cars are narrowing the gap. J.D. Powers polls buyers about problems with their vehicles during the first 3 years of ownership. In 2003, U.S. automakers trailed the Japanese by 17 percent. By last year, the gap had closed to just 13 percent, in part because Detroit's had a change in attitude.

[ssacamp]

Its no wonder U.S. carmakers can't correct the perception that domestics aren't as good as Toyota---the liberal press and biased analysts like consumer reports don't cover the situations where domestics are better. CBS Sunday Morning had Bob Lutz to speak for the domestics but CBS could have covered those circumstances where the U.S. cars beat the Japanese as opposed to contributing to the perception that the imports are better. Why not celebrate U.S. successes instead of promoting imports.

[wr_johns]

In September I ordered GM's fuel efficient 38 MPG Aveo, I am still awaiting delivery. Having a desired product and not being able to deliver it is also one of GM's many problems your report failed to address.

[StanJasek]

Honda is demonstrating its leadership in the auto market once again by adopting super clean diesel technology into its car line. Diesel engines will become a critical component in the "engine portfolio" of the global car business. Diesel made from coal either by CO2 sequestered Gas-to Liquids (GTL)or Coal-to-liquids (CTL) via the Fischer-Tropsch (FT) process, coupled with the new advanced combustion diesel engines, will be environmentally cleaner than most of today's hybrids.
Not the perfect answer, they will however allow the global automobile manufacturers to produce environmentally clean, consumer affordable, and safe autos and trucks.
US companies could be the leader in the production of both FT clean diesel fuels and clean diesel vehicles. Honda is on the right track with this "transition" technology to the hydrogen economy.
If our American manufacturers want to become leaders again, all they have to do is start making "responsible and customer focused" cars and trucks, that we can buy and drive TODAY!

Dreams don't get us back and forth to work.

Stan Jasek
Muskegon, Michigan

[rikedoid]

If I am to believe all the hype about domestic (check again exactly where the components were assembled - Mexico, China?) quality improvements, then all the issues I have experienced with my relatively new GM must be an isolated case, right? I don't think so. The newest (been driving GM since the 70's) is also by far the worst. Luckily the dealer has been very good about fixing things under warranty. Meanwhile Toyotas and Hondas that friends own seem to just purr along. Research it, they actually all have problems, it's just a matter of finding the ones with the least, and which companies stand behind their product, particularly after the warranty is over. Example: the Toyota engine sludge issue vs the GM intake manifold gasket issue. Like I said, research it, forget the advertising.

[vancouverboo]

Let's face it.
On a level playing field, America loses.

We are what we are, and we can not win on a level playing field.

Check out the balance of payments. A deficit for the last 50 years. That doesn't just happen.

After WWII we were the only intact industrialized country, so of course we were top dog.

That's history.

C'est la vie moderne.

Get used to it. We're just another bankrupt, undeveloped country, exporting raw materials and farm products and importing finished goods. Everything else is just hype.

[nothappyatall]

Domestic cars were always built cheap since the 70's because most people don't keep them longer than about 5 years ANYWAY before trading it in for the latest greatest new STYLE. Detroit has the American public sold on the concept that they have to replace these $25,000 machines about every 4-5 years to keep up with the latest STYLE. They are also built now so high tech that the average Joe can't repair their own cars- it's all electronic computer controlled, metric fasteners requiring metric and special tools, everything is so JAMMED In under the hood you have to remove 5 components just to get AT something like a starter to replace it.
There's even an American car whose design was so poor you couldn't replace the spark plugs at the back of the engine without pulling the engine out- you couldn't get at them.
$300 book labor cost to replace a headlight on one car model because you had to remove the entire fender to get at it.

[nothappyatall]

I own two cars, one is an 82 Honda Civic wagon with 196,000 miles on it, love this car, I can fit a whole sheet of plywood in the back like a mini pickup, it drives nice,I am rebuilding the engine now and mostly restoring it. Honda engines for this car were built TOUGH with 5 main bearings on the crank instead of the typical 4, the engine runs smooth like a sewing machine.

I also have a Chevy Corsica, '89 with 309,000 original miles and it never had engine or trans work done, only the normal wear or age stuff for those miles- ball joints, tires, hoses, belts, starter, alt, batt, muffler twice , headlight switch, repainting.
I bought the car off a co-worker 6 years ago for $100, it had 290,000 on it he drove it to/fro work 60 miles a day commute so it was all highway miles and he changed his oil EVERY 2,000 miles,the above repairs were the ONLY ones I've had to do. SO I vote for the 89 Corsica 4 cyl as the best American car IF maintained by changing the oil frequently.
It starts up immediately in all temps and never let me down, runs well, little rust at all and it gets 35 MPG.
I'll NEVER buy new, $25,000 for four wheels and a seat is insane.

[nothappyatall]

Detroit's answer to economy cars was stripped down boxes like the Yugo, there's another car out that is more reasonably priced but when you add "extras" like the $1200 A/C, power steering, the power brakes, $1200 for the automatic trans etc the cost comes up to almost $20,000

You look at a cool retro car like the Cooper Mini, nice car and looks like it would be cute and fun to drive but it's $25,000 for that little thing- it's a BMW...

[nothappyatall]

By the way, ever notice American car odometers rollback over to zeros at 100,000 miles but cars like my Honda have another digit so it will actually display my 196,000 miles?
That says a lot- American cars- 100,000 miles junk em- planned obsolescense that shows by the odometer design that they didn't intend the car to last beyond that rollover point.

I bought My Honda for $500 when it had 129,000 on it, had Honda work on the engine and not one problem of any kind, but now years and 60,000 miles later I decided to do a total restoration on the car- new paint, clutch needed renewal so I decided to tear the engine and trans down replace all bearings, seals, rings, hone the cyl's etc and the car will be like brand new for about $3000 in parts, heck of a lot cheaper than $25,000 for a new car that if anything goes wrong I'd need a computer technician mechanic to even figure it out.
The '82 Honda CVCC is VERY fixable by the driveway mechanic with a minimum of metric tools, it's one of the nicer cars to work on and even today exceeds MPG and emissions requirements for NEW cars due to the unique engine design HONDA came up with. It was getting 38 MPG

[turbokat1]

I have never owned a vehicle which did not originate in Detroit and don't plan to...ever.
In addition to my unwavering preferance for "American" cars, I've always known that even though many foreign based vehicles are now being assembled here, the final profit from their purchase goes to enrich the economy of their country...not mine.

[turbokat1]

By the way...my Olds Achieva is going strong at 146,000 miles. I drive 32 miles round trip to work every day doing well in excess of 70mph.
My Achieva hasn't seen a mechanic for more than regular maintenance since last spring. Oh..also by the way, I'm a woman.

[olebd]

Years of bending over for inflated union powered wages and benefits have taken monies away from R & D in the American auto industry thus causing quality to tank.

[feelfree1]

Detroit automakers' motto should be "too little, too late". The Japanese have been beating them to the punch for decades.

[tibu987]

I no longer drive, but I notice many of the American cars with rust spots all over them, parts hanging nearly off. I see this to a much lesser degree on the foreign cars.
I am a firm believer in " buy American", but one has also got to get a good buy for thier money. The U.S. maufacturers have taken second place for a long time when it comes to quality control.
And the cost of that policy is now showing up.

[pjkbp]

I'll put my 92 Amerivan Made PONTIAC BONNEVILLE up against anything made by anyone. It has no rust .. it has it's original exhaust .. total repair bill for driving in the worst conditions in the US, the Pgh area 75K miles, is less than $300. I runs like new and has better looking paint than a brand new TOYOTA. I have yet to find a Japanese auto to come close to this reliability.
Did you know GM was sued by Toyota so that GM would not be allowed to advertize that their cars and trucks are built with galvanized metal and stainless steel exhaust. Toyota claims that GM would have a unfair advantage if they advertized advertize that their cars and trucks are built with galvanized metal and stainless steel exhaust.
I feel this is totally wrong.
In Japan they put a $12,000 tax on all US autos.
HOW MANY TOYOTAS WOULD SELL HERE IF THEY COST $12,000 MORE?
DID YOU KNOW THAT THE PLANTS THE JAPANESE BUILD INT HE US ARE PAYING NO US TAXES?
DID YOU KNOW THAT JD POWERS DEPENDABILITY RANKINGS FOR BUICK ARE MUCH BETTER THAN TOYOTA, HONDA , NISSAN AND ALL OTHER JAPANESE AUTOS AND MATCH THE RELIABILITY OF LEXUS A MUCH HIGHER PRICED LINE.
The US auto market is stacked against GM and FORD.
If it's so good for Toyota to build plants in the US .. why don't they let anyone build plants in JAPAN? Imports in Japan .. for all makes .. is approx. 1%.
JAPAN IS A CLOSED MARKET ...
THE US MARKET IS MORE THAN OPEN AND WE ARE STUPID FOR LETTING THEM TAKE ADVANTAGE OF OUR OPEN MARKETS WHILE KEEPING US OUT.

[pjkbp]

I drive the same route to work..21 hilly miles to work .. the same as a cooworker who has a Honda CRV... I get a easy 22 to 24 miles per gallon... he said he has never gotten over 21.
I own a Buick CUV that weighs over 4,000 pounds has a 185hp v6 engine. The CRV is wieghs much less and and has a 4 cyl engine.
The Buick is much safer .. roomy..comfortable.. smoother shifting .. quiet... and after 5 years it only was to the dealer once for a minor leak in a A/C part which was fixed by GM during a routine inspection for free.

The US media refuses to bring up the most obvious topics.. since they are owned by the Japanese.

American auto makers have been kept out of the Japanese market forever.
The US autos are also kept out of the European market... while they more than freely sell in the US.

[mbartles]

The author's misspelling of braking twice in one paragraph is pretty sad.

[guesmanj]

Your story titled "Detroit Shifts Gears Against Japanese" was interesting and on the mark in many areas. I also agree with many of the comments posted by other readers, specifically the point of loyalty to American manufacturers and workers. But, your story failed to mention the most troubling aspect of the American automobile made today. While Asian and European manufacturers alike continue to improve quality and safety features, they offer cars that get far better gas mileage than anything American made. The best illustration of this is a chart Al Gore uses in his documentary titled %u201CAn Inconvenient Truth%u201D. The chart clearly shows not only Japanese leading the way in miles per gallon (MPG), but how European and other Asian nations to include China are catching up. Meanwhile, a lot of people here to include our automakers are still mired with the mentality that bigger is better and 25 MPG is OK. The bottom line is last year I needed a new car and searched my sole for the right thing to do. I asked myself, why should I invest my hard earned money in something lacking in reliability, safety, and MPG? My new Honda Civic Hybrid is averaging 43.7 MPG for over 40,000 miles, is a joy to drive, and I feel very safe no matter the conditions or traffic I%u2019m in. I go to bed a night feeling great knowing that I%u2019m doing my part to lessen the impact on our environment, while keeping money out of the hands of terrorist nations.

[edjohn66]

This article did a good job skipping the conventional notion that the unions are causing all of the problems. Let's face it: the Big Three suffer from engineering problems and poor decisions at the top. If the average worker had a greater say on what happens, the U.S. auto industry would be MUCH better off right now. And the average unionized U.S. autoworker doesn't really make much more or less than your average European or Japanese auto worker.

There is one big difference: health care. Imagine how competitive EVERY American industry would be if we had UNIVERSAL HEALTHCARE?

[kronoo]

American automobiles and trucks are pre-designed for certain parts to fail at at specific milage. Parts like transmissions etc... Tests have been done to design parts to only last for so long so they will have to be replaced in order to maintain service revenue.

[zindo-2009]

American car makers are hooked on replacement part. In my life I have had two Chevys, Ford, Two Dodge cars, Jeep Liberty, Isuzu pickup, Pontiac, Honda and Toyota.

ALL and I do mean ALL the domestic cars were nothing but money pits. My 1995 Isuzu had the o2 sensor replaced at 18k miles. My Honda and Toyota have not seen the dealership since I drove them off the lot two years ago.

DaimlerChrysler is tiring from what I hear, they are buying back 3 year old cars and making the top brass drive them so they can see what's wrong with them. I think they need to get five year old cars since most people finance for that long.

[StanJasek]

Toyota is getting ready to announce a second genration 80 mile per gallon Prius for the 2008 model year!
The European Union and even our Washington politicians are discussing a "carbon tax" or carnon controls to reduce CO2 and factors affecting climate change.
Where is the Detroit Big Three in this conversation?
Do the Big Three executives read? Comprehend? Understand?
As Americans we have enormous oppportunities in the auto industry, and can take leadership in all these areas....where are the leaders?
Stan Jasek
Muskegon, Michigan

[dmorg4]

I dont think any body can say american cars are bad cars these are very good cars quality
the problem is the japanise have an unfair advatage in the market place pure and simple
the america cars are made better than japanise cars you look detriot uses real steel they are not thin as paper like the imports i think they need some tarifs to protect the america industry and if they let in the chinese cars the american industry will be gone for sure

[bildooreilly]

American automakers just build cars to suck you into their other racket "parts and repair."

[mgd1943]

While your coverage was good, I thought Consumer Reports comparison of the Equinox vs the Honda CRV was unfair. This particular Honda may be better in those respects than the Chevy, but to generalize from that one example is absurd. JD Powers listed four American nameplates that beat Toyota and Honda in initial quality and/or 3 year reliability, and GM and Ford both have models competing with Camry and Accord that have reliabilty better than or equal to both. Ben Franklin said that if you have a reputation as an early riser, you can sleep till noon. GM and Ford's problem is more reputation than quality.