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
