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Shortages of Japan-built cars open the door for U.S. automakers

Mon, 23 May 2011

U.S. carmakers sense that they have a chance to win back customers this summer with the launch of several redesigned models, while their Japanese competitors struggle with supply shortages.

About 197,000 car buyers who typically would favor a Japanese brand are in play this summer, according to market research firm A.T. Kearney.

If car production from Japanese factories hobbled by the earthquake and tsunami in March is slow to restart, that pool of buyers could grow to 328,000 by this fall, Kearney says.

Japanese carmakers have been warning their dealers about expected shortages of popular cars and trucks since the disaster hit. Dealers have faced limits on ordering cars built in Japan.

Many Toyota dealers say they are running out of the popular Prius hybrid. Toyota says supplies should be back to 70 percent of normal in June.

But supplies of Japan-built cars are expected to remain short throughout the summer. And that is driving car shoppers into the arms of U.S. brands, which have been able to maintain production levels.

General Motors said 53 percent of April buyers of the Chevrolet Cruze traded in a non-U.S. vehicle.

Ford Motor Co. and Chrysler Group dealers are also encouraged by having a supply of recently redesigned models, such as the Ford Focus and the Chrysler 200, available for car shoppers.

As stockpiles of Japan-built cars shrink, dealers are shifting their advertising plans, according to industry trade paper and AutoWeek sister publication Automotive News. Dealers are canceling campaigns and shifting resources to deal with fewer cars on the lots.

Dealership chain AutoNation Inc., the largest auto retailer in the country, is changing some radio spots that were promoting Japanese brands to advertise Ford or Chevrolet dealerships.

Allen Foster, general manager of Smart Toyota in Madison, Wis., told Automotive News that the dealership would shift its marketing to focus on models that are in adequate supply. The dealership is out of the Prius and has a low supply of Corollas.

“What we need to do in the meantime is make the best deal with the inventory we have,” Foster said. “The shelves aren’t totally bare.”




By Michelle Koueiter