Discover the Financial Principles of the Bible

Americans Are Flocking To Cheaper Foreign Cars

July auto sales were released yesterday and one clear theme that comes across is that Americans are now looking to buy cheaper foreign cars. Auto sales for Hyundai, Kia and Subaru soared in July while the only other manufacturer to post a growth in sales was Ford (which managed only a 3% increase). 

Subaru sales jumped 34% from last year’s level as the company sold nearly 22,000 vehicles up from less than 17,000 in July 2008. 

Hyundai Motors sales were up 12% as the company’s value proposition is resonating with auto buyers during this economic recession. 

Kia Motors also saw their monthly sales increase nearly 5% on strong car sales. Meanwhile, General Motors sales declined over 19% as the free-fall continues for the former largest auto manufacturer. 

Hyundai and Kia were the first manufacturers to offer their customers the cash-for-clunkers rebate and it paid off. Their combined market shared has increased from 6.6% in July 2008 to 7.5% in July 2009. American consumers took advantage of governments CARS or cash-for-clunkers rebate and used the opportunity to buy low priced, but fuel-efficient foreign cars.

Filed in: Economics

Comments are closed.