Successful Automakers Investing in America
By: James Sawers
It has been a tough few years for the domestic auto industry. Sales dropped below the 10 million units mark for the first time in over 20 years, and more incentives offered on average per sale than ever before. There are a few bright spots in the industry: Subaru, Hyundai, and Volkswagen. These companies are succeeding for reasons beyond the car world. They continue to invest in American manufacturing with no UAW affiliations. They employ MORE Americans (combined) than the Big Three do and pay a better wage (Average 24.05/ Hour) and better healthcare benefits, all while being union-free.
SUBARU
The ONLY car company to post a profit in 2008 and increased sales (+1.9%) in FY2008 has continued to post excellent numbers in 2009. Subaru continues to amaze industry analysts with their numbers. The company offers a good product with exceptional quality, competitive prices, and rewarding customer experiences. Subaru posts the highest retention rate among shoppers in the market (64% of buyers return) and continues to give customers reasons to come experience new products. In addition to Subaru’s high quality and reasonable prices, the company has an excellent dealer network. Subaru micromanages their business so that dealers do retain customers: Dealers are required to be low pressure, easy to deal with, and respectful. They MUST be exemplary and if a dealer doesn’t meet the expectations, they are dropped. Subaru knows it takes hard work, superior quality, and a great experience to retain customers. They continue to do it and do it well. Subaru has invested in America, employing nearly 15,000 Americans in Indiana, California, and Vermont. They have invested in the United States and in turn Americans are investing in their products.
HYUNDAI
This South Korean automaker continues to be a force. They have been giving traditional luxury automakers a run for their money and upped the ante on the industry. In 2009 Hyundai released the heavily successful Genesis sedan. This is a 5 Star luxury offering at a 2 Star price. Offered even with a V-8 for a peak price of $42,000 this car is a true value. One common trait with their entire line-up from Genesis on down to the Accent is ever improving quality. Once and automaker known for being tuna cans of wheels, they are now a solid contender, offering 10 year warranties, a vast dealer network, and an improving public image, backed up by it’s solid products. Hyundai is a profitable contender in the American market. Currently Hyundai employs nearly 10,000 American workers at facilities in Alabama, New York, Georgia, and California.
VOLKSWAGEN
A car for the people has been the advertising motto for VW for nearly 10 years now. They are continuing to succeed in their quest to become the biggest automaker in the world by 2015. This has become possible due to the quality and sales problems at Toyota. VW has an array of offerings from the entry level Golf to the top of the line Toureg SUV. The vehicles have excellent European styling, solid German quality, and a perceived value to them due to strong marketing efforts. The spotlight shines in the VW Passat CC, a car taking aim at the Mercedes-Benz CLS. The Passat CC is a four-door coupe that hits a niche, has a high profit margin, and offers stylish luxury at a starting price of $26,500. Leather is standard along with the solid 2.0T engine, and an excellent sound system. Volkswagen continues to invest in the United States as well, with a nearly $3 Billion facility under construction in Tennessee set to open in 2011/2012 and creating nearly 5,000- 10,000 FULL-TIME AMERICAN manufacturing jobs. VW officials say that by 2020 they could operate five to seven manufacturing facilities in the United States employing nearly 90,000 Americans.
All three companies offer the same common values. Subaru, Hyundai, and Volkswagen offer good products, value pricing, excellent quality, good experiences, and a good dollar spent ratio. They have vehicles for the masses, care about our environment, and care about the American worker. They pay better wages, offer better benefits, and more job security than the Big Three. They listen to their customers and make the right business decisions based on the information they receive. They take care of their workers, communities, and products, all resulting in a better bottom line. These three are great examples of success stories in a down time.
