6 myths about the
Detroit 3
(copied from the Nov 17, 2008 Detroit
Free Press)
The debate over aid
to the Detroit-based automakers is awash with half-truths and misrepresentations
that are endlessly repeated by everyone from members of Congress to journalists.
Here are six myths about the companies and their vehicles, and the reality in
each case.
Myth No. 1
Nobody buys
their vehicles.
Reality
General Motors
Corp., Ford Motor Co. and Chrysler LLC sold 8.5 million vehicles in the United
States last year and millions more around the world. GM outsold Toyota by about
1.2 million vehicles in the United States last year and holds a U.S. lead over
Toyota of about 560,000 so far this year. Globally, GM in 2007 remained the
world's largest automaker, selling 9,369,524 vehicles worldwide -- about 3,000
more than Toyota.
Ford outsold Honda
by about 850,000 and Nissan by more than 1.3 million vehicles in the United
States last year.
Chrysler sold more
vehicles here than Nissan and Hyundai combined in 2007 and so far this
year.
Myth No. 2
They build
unreliable junk.
Reality
The creaky, leaky
vehicles of the 1980s and '90s are long gone. Consumer Reports recently found
that "Ford's reliability is now on par with good Japanese automakers." The
independent J.D. Power Initial Quality Study scored Buick, Cadillac, Chevrolet,
Ford, GMC, Mercury, Pontiac and Lincoln brands' overall quality as high or
higher than that of Acura, Audi, BMW, Honda, Nissan, Scion, Volkswagen and
Volvo.
Power rated the
Chevrolet Malibu the highest-quality midsize sedan. Both the Malibu and Ford
Fusion scored better than the Honda Accord and Toyota
Camry.
Myth No. 3
They build
gas-guzzlers.
Reality
All of the Detroit
Three build midsize sedans the Environmental Protection Agency rates at 29-33
miles per gallon on the highway. The most fuel-efficient Chevrolet Malibu gets
33 m.p.g. on the highway, 2 m.p.g. better than the best Honda Accord. The most
fuel-efficient Ford Focus has the same highway fuel economy ratings as the most
efficient Toyota Corolla. The most fuel-efficient Chevrolet Cobalt has the same
city fuel economy and better highway fuel economy than the most efficient
non-hybrid Honda Civic. A recent study by Edmunds.com found that the Chevrolet
Aveo subcompact is the least expensive car to buy and
operate.
Myth No. 4
They already got
a $25-billion bailout.
Reality
None of that money
has been lent out and may not be for more than a year. In addition, it can, by
law, be used only to invest in future vehicles and technology, so it has no
effect on the shortage of operating cash the companies face because of the
economic slowdown that's killing them now.
Myth No. 5
GM, Ford and
Chrysler are idiots for investing in pickups and SUVs.
Reality
The domestic
companies' lineup has been truck-heavy, but Toyota, Nissan, Mercedes-Benz and
BMW have all spent billions of dollars on pickups and SUVs because trucks are a
large and historically profitable part of the auto industry. The most
fuel-efficient full-size pickups from GM, Ford and Chrysler all have higher EPA
fuel economy ratings than Toyota and Nissan's full-size
pickups.
Myth No. 6
They don't build
hybrids.
Reality
The Detroit Three
got into the hybrid business late, but Ford and GM each now offers more hybrid
models than Honda or Nissan, with several more due to hit the road in early
2009.
TurtleAl
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