Posted on: Tuesday, January 11, 2005
Rivals crowd U.S. truck market
By Bill Vlasick
Detroit News
The Japanese onslaught on the U.S. light-truck market shows no sign of letting up.
While Detroit's Big Three automakers focused on passenger cars at this week's 2005 North American International Auto Show, their Japanese rivals unveiled several new entries in the sport utility and pickup markets.
Last year, Japanese and South Korean manufacturers grabbed 26 percent of the U.S. light-truck market, an all-time high and the ninth consecutive year they have increased share.
And there's more to come, with the Ridgeline pickup from Honda Motor Co. leading the way.
Honda's new midsize pickup, which goes on sale in March, is a prime example of how the Asian automakers are seeking incremental sales gains with niche products in the light-truck market.
"They are coming at the Big Three from all sides, and they're slicing away at these segments again and again to find their own space," said Jim Sanfillipo, an analyst with market research firm Automotive Marketing Consultants Inc.
Honda expects to sell about 50,000 Ridgelines annually, about one-third the sales of Ford Motor Co.'s Ranger, the leader in small pickups.
But Honda also started with modest production of its Honda Odyssey minivan, and now sells more than 150,000 units a year.
The Ridgeline features a dual-action tailgate that swings down or out, and a trunk underneath the bed big enough to hold golf clubs. It will be priced at about $27,000, Honda executives said.
Some of Japan's smaller manufacturers also want to grab a bigger piece of the profitable light-truck market.
Mitsubishi Motors Corp. yesterday showed off its new Raider midsize pickup, which is based partly on the Chrysler Group's Dodge Dakota pickup.
Mitsubishi and DaimlerChrysler AG are jointly developing some vehicles under an agreement made before the German automaker's stake in the Japanese automaker was reduced when ailing Mitsubishi was bailed out financially in 2004.
With the option of a 4.7-liter V-8 engine, the Raider can compete with the most powerful midsize entries from the Big Three. Mitsubishi executives said they expect the truck to draw younger consumers to the brand.
The midsize SUV segment also will get a bit more crowded with the introduction of new models from Suzuki Motor Corp. and Subaru Inc.
Yesterday, Suzuki took the wraps off its Concept-X sport utility, a version of which is slated to go into production in 2006.
An edgy-looking SUV equipped with a 3.6-liter V6 engine, the Concept-X likely will be built at Suzuki's joint venture plant with General Motors Corp. in Ontario, Canada. Suzuki's U.S. sales jumped 26 percent last year, and the Japanese automaker is aiming to triple U.S. sales by 2007 with the introduction of nine new models.
The Subaru subsidiary of Japan's Fuji Heavy Industries Ltd. is also gearing up to expand its product lineup in the United States.
Subaru showed off its new B9 Tribeca yesterday, and its executives said the midsize SUV, which has three rows of seating, has the potential to become the brand's flagship vehicle in the U.S. market.
