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For The Transit Fans: Industry Perspectives: US Market Re-Entry


Stalliongrad

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The United States has some of the strictest laws on the books governing the manufacture and sale of new vehicles. This is one reason many automakers have avoided attempting to either return to the United States or break into the market for the first time.

 


Overview: To understand the likelihood that a manufacturer will spend large amounts of money to enter the US market a set a factors must be assessed first. Demand, Profit, Ease of Entrance. US Regulations began to increase around the end of the 1980s and that is when many foreign automakers left the US.

 


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Peugeot: A French manufacturer which left the United States toward the end of the 1980s has been long rumored to be planning a return to the United States. However Peugeot has only sent demonstrators to the United States to attend Auto Shows. The only modern Peugeot vehicles in the United States are owned by French Diplomats.

 

Demand: Peugeot left the United States with abysmal sales due to the dominance of newly arrived Japanese car manufacturers whose cars were far more reliable and well built. Peugeot has produced cars since its US departure that have had demand in the United States such as its 206 which was seen as a cheaper alternative to the Volkswagen Golf.

 

Profit: If Peugeot re-entered the US market it would not make as much money as projected because the majority of its vehicle range is not suited toward American customers. Peugeot manufactures small, manual transmission vehicles which run on diesel fuel. Three factors which are not popular in the United States at the current time. Americans prefer Larger Crossover vehicles and automatic transmissions.

 

Ease of Entrance: Peugeot would have to spend millions if not more re-configuring some of its cars to US Specifications and it would need to find engines which would be able to be Emissions compliant in the US. The only viable way for Peugeot to re-enter the United States would be with the help of its International Partner Mitsubishi. The cost of setting up a distribution network of car dealers is also expensive. Mitsubishi and Peugeot have agreements to badge engineer each others vehicles. If Peugeot re-entered the US market they would be badge engineered Mitsubishi vehicles available at Mitsubishi dealers. Peugeot currently manufacturers cars in Mexico for the South American Market.

 

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The Peugeot 4007 is actually a Mitsubishi Outlander

 

 

 

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Skoda: Although never having a presence in the US, Skoda is a popular brand with American car enthusiasts into the Euro Tuner scene. Volkswagen Group, which owns Skoda has pondered bringing the Czech Republic brand to the United States a few times.

 

Demand: Demand is relatively low for this brand as most are completely unfamiliar with Skoda vehicles and unfamiliar brands do not sell very well. Volkswagen currently owns several luxury vehicle brands which are already selling well in the United States (Audi, Porsche, Lamborghini etc), only hardcore Volkswagen fans would be familiar with the brand in the United States.

 

Profit: Volkswagen, already owning profitable brands in the United States wouldn't stand to make much money bringing Skoda to the United States because of the established dominance of the Volkswagen Brand in the US.

 

Ease of Entrance: Because most current Skoda vehicles share a platform with existing Volkswagen cars it would actually be relatively cheap to bring Skoda to the United States as the vehicles would simply be badge engineered.

 

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The Skoda Octavia shares much of its build with the Volkswagen Passat but comes in sportier trim levels.

 

 

 

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Fiat, Alfa Romeo and Lancia: All left the US in the lat 80's as well, 2 of the brands have made a return to the US thanks to the economic crash of 2009. Fiat Group which owns Ferrari and several other brands purchased Chrysler Group in 2010 saving it from collapse and giving Fiat control of Chrysler, Jeep and Dodge brands. What this also allowed is Fiat to reenter the US market using Chrysler's dealership network and manufacturing plants.

 

Demand: Alfa Romeo vehicles in the US from the 1980s are collectors items and becoming more and more rare. Car Enthusiasts already familiar with the brand were consistently being teased with their exposure on the British program Top Gear (Bring Back Clarkson, Hammond and Capt Slow).

 

Profit: Fiat Group spend billions fully returning to the United States but because they have adopted a new strategy they are also on track to make millions in return. Fiat is producing larger crossover vehicles for the us market and using its Alfa Romeo brand as its high end luxury and performance marque.

 

Ease of Entrance: It took Fiat approximately 3 years to prepare to return to the US. Several of its key vehicles were redesigned to meet US specs and be produced in the US alongside Chrysler vehicles.

 

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2016 Alfa Romeo Giulia (US Release)

 


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Holden: The Australian brand extremely popular with Americans, Holden has an off on relationship in the US.

 

Demand: Is very high in the United States for Holden vehicles. The mixture of high performance and practical vehicles and similar tastes between Aussies and Ameircans have kept demand for this brand in the US very high.

 

Profit: General Motors which owns the Holden marque has resisted bringing the nameplate to the US because it would directly compete with the Chevrolet brand already established. This along with the fact that GM is largely still owned by the Federal Government it is unlikely GM will add new brands to line up. Before the Economic crash in 2009 GM consisted of, Chevrolet, Cadillac, GMC, Hummer, Saturn, Pontiac, Saab and Oldsmobile. 4 of those brands were cut to restructure the company.

 

Ease of Entrance: Sharing most of its platforms with Chevrolet models, Holden vehicles did exist in the US as Pontiac badged vehicles however have since vanished with the disappearance of the brand.

 


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The Holden Ute is rumored to come to the US as the new Chevrolet El Camino soon

  • Brohoof 1

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You forgot to mention Buick as a GM brand, and also I saw the Chevy SS (our Holden Commodore) for the first time on the street just a few days ago, about 3 years after its release. Rebadged Holdens in this country would definitely be a niche/enthusiast brand.

 

You should have also put in one for Renault. Although I'd like to see it given their rep in sports car and formula racing, Renault coming back to the US is about as unlikely as Peugeot, for many of the same reasons. Renault is mainly known for the 5 ("Le Car"), which is largely considered a punchline here in the US, and is also partnered with Nissan, with whom many of their models are redundant. If anything, I could see Renault here as a performance/enthusiast/semi-luxury brand like Buick slotted between Nissan and Infiniti.

  • Brohoof 1
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You forgot to mention Buick as a GM brand, and also I saw the Chevy SS (our Holden Commodore) for the first time on the street just a few days ago, about 3 years after its release. Rebadged Holdens in this country would definitely be a niche/enthusiast brand.

 

You should have also put in one for Renault. Although I'd like to see it given their rep in sports car and formula racing, Renault coming back to the US is about as unlikely as Peugeot, for many of the same reasons. Renault is mainly known for the 5 ("Le Car"), which is largely considered a punchline here in the US, and is also partnered with Nissan, with whom many of their models are redundant. If anything, I could see Renault here as a performance/enthusiast/semi-luxury brand like Buick slotted between Nissan and Infiniti.

 

How could i forget Americas oldest brand... and the fact that my neighbor just bought one *facepalm* I will be doing a pt 2 because there were definitely some honorable mentions.

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