Much of the concern about the futures of General Motors Co. (NYSE: GM) and Ford Motor Co. (NYSE: F) is based on troubles in Europe. Their fortunes in the home market may be much worse as their market shares drop sharply and smaller competitors swarm to take sales.
As the U.S. market has risen by 5.5% this year to 12,431,305 cars and light trucks through September, and heads toward one of the best years in history, Ford’s market share has fallen from 16% for the period last year to 15.1 %. GM’s numbers were slightly better. Its market share dropped to 17.8% from 18.0% last year. GM’s sales have risen 4.3% over the period to 2,207,888. Ford’s have fallen 0.5% to 1,877,715.
Chrysler has set the pace for growth among large manufacturers, and likely has taken business from its larger rivals. Its market share for the first nine months of the year rose from 11.5% last year to 12.2%. Its sales rose 14.7% to 1,556,059. At its current rate of growth, it could challenge Ford’s sales next year.
Toyota Motor Corp. (NYSE: TM), which has been a traditional threat to the total sales of Ford and GM, lost ground last year due to the Japanese earthquake and the recall of millions of cars. It has regained some of that momentum, but it is not growing better than the U.S. market as a whole. Its market share is flat for the first nine months at 14.4%, compared to the same period a year ago. Sales rose 5.7% to 1,794,788.
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The Japanese company that has had the most success assaulting the market and taking share from larger rivals is Nissan. Its market share in the first nine months rose from 8.0% last year to 8.6%. Sales bumped higher by 13% for the period to 1,063,272.
One of the best ways to evaluate individual company performance is through the sales of its most popular models. The market leader, the Ford F-Series pickup, has posted a sales decline of 0.4% to 59,863. In second place among pickups based on sales, the Chevy Silverado’s sales have risen only 5.9% to 50,176. In contrast, sales of Chrysler’s Ram pickup are higher by 21.7% to 36,612.
Another sign of Ford’s weakness is that most of its best-selling cars have done poorly. Sales of the Escape and Focus have underperformed the market. Fusion sales growth has barely outpaced the market.
GM has similar problems among its best-selling cars. Sales of the Chevrolet Equinox are down for the first nine months, as are sales of the Chevrolet Malibu, when compared to the same period in 2013.
Both Ford and GM cannot hope to perform as well as the market if their top-selling vehicles do so poorly.
For the time being, there is nothing to indicate Ford and GM can gain back market share next year. The problems of each of the companies may not be overseas as much as they are in America.
ALSO READ: Cars With the Oldest Buyers
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