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Join Date: Feb 2001
Location: The Hills of North Georgia,USA
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Chevy gears up to outsell Ford
Thursday, February 13, 2003
By Mark Truby and Ed Garsten / The Detroit News
CHICAGO -- The auto industry's most intense rivalry got a little hotter Wednesday as Chevrolet officials boldly predicted the brand is poised to unseat Ford as America's best-selling vehicle nameplate.
Kurt Ritter, head of General Motors Corp.'s Chevrolet division, said an unprecedented flurry of new cars and trucks over the next few years will propel Chevy back "to its position as America's favorite brand."
"That's our goal," Ritter said at the Chicago Auto Show. "That's our vision. And we'll work very hard to get there."
Those are fighting words in Detroit, where car companies are engaged in a constant battle for bragging rights. And Ford and Chevy are the industry's version of the Hatfields and the McCoys. For almost as long as cars have been built, its been Ford vs. Chevy -- the blue oval against the bow tie.
"Chevy has a chance -- but the guys at Ford aren't asleep," said Jim Sanfilippo, vice president at AMCI, an automotive marketing firm with offices in Detroit. "I'm not sure pointing at the fence is such a good idea for Chevy."
The last time Chevy outsold Ford was in 1986 with sales of 2.9 million vehicles, compared to Ford's 2.7 million unit sales, according with Autodata Corp.
Ford wrested the sales crown from Chevrolet in 1987 on the strength of its popular Taurus sedan and maintained that superiority when the Explorer joined Ford's lineup in 1990. The blue oval has hung on ever since.
Ritter wouldn't predict when Chevy would regain the lead, but pointed out that Ford's sales lead has narrowed in the past five years.
"You don't put a date on it," Ritter said. "You just work at it. We have made significant progress."
Ford sold 2,990,472 cars and lights trucks last year, compared with 2,636,050 for Chevy. In December, though, the GM brand outsold Ford 265,112 to 250,449.
Ford executives are dismissing Chevrolet's latest gauntlet toss as misguided bravado.
"We have been the market leader and we are going to remain the market leader," said Jim O'Connor, Ford group vice president in charge of North American sales and marketing. "We are bringing out fresh products and we have the best dealers in the industry, bar none. I don't mind playing for the best team."
Added Steve Lyons, president of Ford Division: "There's a bulls-eye on our back because we are No.1 -- and that's OK. Come give us your best shot."
Ford launches Freestar
O'Connor is expected to unveil the latest salvo in Ford's arsenal today at the Chicago Auto Show, the new Freestar minivan. A replacement for the aging Windstar, Ford is counting on the Freestar to challenge the Honda Odyssey and Dodge Caravan in the increasingly crowded minivan market.
For its part, Chevy is preparing to launch a number of products that could well help it chip away at Ford's overall sales lead.
Ritter said the new Malibu sedan, Colorado pickup and Equinox baby SUV, plus SS versions of the Impala and Monte Carlo and the Aveo small car introduced Wednesday in Chicago, will push Chevy sales toward the 3 million unit mark it covets.
"When you look at all the new products, we think that's within the realm of possibility," said Chevrolet spokesman Tom Wilkinson.
Chevy plans to use Aveo to not only give it a presence in the entry-level segment, but to lure customers to consider more expensive vehicles. The Aveo (pronounced AH-vey-oh) is essentially a rebadged Daewoo compact car gussied up and equipped with new safety features for the U.S. market, the first U.S. product sold from GM Daewoo Auto & Technology Co.
With a base price of about $10,000, it will be less expensive than the aging Cavalier and will compete directly with the likes of the Hyundai Accent, Kia Rio and Toyota Echo, according to John Smith, GM vice president of vehicle sales, service and marketing.
Chevy hopes to sell 70,000 Aveo models a year in the United States.
Chevy's strategy
While Chevy wants to make a run at the entry-level market, the Aveo also represents the loss-leader strategy common in retail.
Aveo won't bring in much cash for GM by itself, but could prove to be an effective traffic-builder leading to sales of more expensive Chevrolet models, says Smith.
"We're pretty sure some of those folks, instead of buying Aveo, will buy a Cavalier, Equinox or Colorado," Smith said.
Industry analyst Jim Hall said Chevy's goal of surpassing Ford "is within the realm of plausibility" if Chevy perfectly executes its new products and Ford stumbles a little bit.
"It's a historic competition, so of course they want to pass Ford," said Hall of Southfield-based AutoPacific, an automotive marketing consulting firm. "But (increasing sales) also keeps the wolf at the door -- Toyota."
Chevy acknowledged Wednesday that Toyota, which has already passed Dodge to become the nation's third best-selling automotive brand, has become a formidable foe that can't be ignored.
"We're closely watching Toyota," Wilkinson said. "Although Ford is the volume leader right now, long-term, Toyota is our most important competitor."
(Photo)The all-new 2004 Ford Freestar, the replacement for the Windstar, is the latest salvo in Ford's arsenal as Chevy sets its sights on overtaking Ford in vehicle sales.
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Stacy94PGT
My first car was a 67 Mustang Coupe, 2nd one was a 67 Cougar XR-7, 3rd one was a 66 Mustang Coupe. Why did I get rid of these cars for ? I know why, because I'm stupid, stupid, stupid. 
My next Ford.....
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