SETBACKS FOR THE JAPANESE INVADERS

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The May 2009 sales reports show that Ford Motor Company suffered less sales erosion by percentage than any other major auto company in the U.S. market. Although Ford’s sales were off by a reported 24.2 percent compared to May 2008, it actually gained market share.

Meanwhile the leading Japanese invaders cratered. The “Evil Empire” (Toyota) was down a whopping 40.7 percent and was in third place behind GM and Ford in the U.S. market. Honda also tanked, losing a massive 41.5 percent of sales as compared to last May. Nissan was also down by 33.1 percent.

Are Americans starting to figure out that buying Japanese instead of a Detroit 3 product creates huge net losses for our economy?

Are more buyers realizing that it’s simply bad form to turn their backs on American industry at time of grave economic crisis?

Are Americans starting to fight back in a small way against globalization?

Is the message starting to sink in that buying a Detroit 3 product supports more quality OEM jobs than purchasing a foreign vehicle that's merely assembled (often mostly by robots) in a low-wage “invader” plant?

Are Americans finally starting to rally to defend our auto industry from the predatory Japanese takeover?

Are Americans finally starting to discover that Ford quality is competitive with Japan’s government-protected and subsidized automakers?

Or is it something else at work, such as inferior demographics. Most certainly, the credit crisis has damaged the ability of young, sub-prime borrowers to finance new vehicles. Undoubtedly, the customer mix of the Japanese invaders has always trended younger and is most likely less creditworthy. Thus, it seems possible that the Japanese invaders would suffer disproportionately more in a broad market sales downturn.

Or could it be that the Korean attack at the margins is starting to slash the Japanese invaders in entry-level and youth market segments?

It’s hard to get too excited about one month’s sales data. Moreover, FoMoCo is still shrinking, albeit not as fast as everyone else.

Most certainly, Team Japan will engage in brutal “kamikaze” marketing incentives and smashmouth tactics to fight any erosion in their market share. And millions upon millions of short-sighted Americans still fail to realize the danger of Japan’s predatory automotive policies and the unsustainability of our trade deficits. They selfishly ingest the “appliance motorist” myths about Asian imports and cling to dated stereotypes about American vehicles. They give no concern about the greater effects that their vehicle purchases have on sustaining the American economy.

Still, the May 2009 sales figures inspire some hope for supporters of real American vehicles in general and Ford in particular.