Euro Troubles: Why American Cars Struggle to Conquer European Highways
Poor European demand for American-made vehicles explained
Informal, friendly, and straightforward chat about the challenges faced by U.S. carmakers in the European market.
Europe's Luxury Car Playground, America's Role Approaching Zero
You may find countless luxury German cars cruising around the U.S., yet American passenger cars struggle to secure a place in Europe's heart. But is the issue really a European affront, or something brewing at home?
According to data from consulting firm Inovev, around 205,000 passenger cars rolled off American assembly lines and onto European roads last year. Now, you'd think that's a good number, right? The catch? Most of them proudly bore the badges of BMW, Mercedes, and even Volvo. American-branded vehicles? Not so much.
The Iron Fist of Customized Tastes
We anoint U.S. carmakers for crafting vehicles tailored to the taste of their domestic market: large pickups and trucks – the anti-global cars. It's little wonder they flounder beyond their borders.
The U.S. President isn't amused, lamenting the army of German luxury cars in the U.S., while Europeans snub American cars with a smirk. However, the issue is ingrained domestically and unlikely to be resolved by trade policies.
Domesticated and Unsellable Abroad
The European market craves smaller, more fuel-efficient vehicles. Alas, American-branded cars like the Ford F-150 and Chevrolet Silverado are top-sellers in the U.S., but remain exotic in Europe, outside of fans' circles due to size, cumbersomeness, and voracious fuel consumption.
A Brief History of the 'Chicken Tax'
Back in the 1960s, protectionist regulations dubbed the 'Chicken Tax' began shaping the auto industry's model policy. Born with the aim of guarding the U.S. commercial vehicle market, it made European or Japanese pickup trucks and SUVs nearly unmarketable, leading American manufacturers to shift their product strategy towards catering to domestic tastes.
25 Years Ago: A Different Picture
At the dawn of the millennium, the picture looked different. American manufacturers still exported around 2.2 million vehicles globally, including to Europe. However, today, the most prominent U.S. car is the Tesla Model Y, and Ford is gradually disappearing from the European market due to lackluster sales volume.
Today, Europeans flock to Tesla, while American cars struggle to crack the market. Ongoing trade tensions, regulatory complications, cultural differences, and competition from local brands make the European market a tough nut to crack for U.S. carmakers. Now, if American manufacturers can adapt their strategies to meet European demands, they might just turn this situation around. Or, will the rise of new Chinese brands quash what little hopes remain?
(Enrichment insights added for context and clarity)
Sources:- ntv.de, Holger Holzer, sp-x
Tags:- Donald Trump- U.S. American Car Manufacturers- Car Manufacturers
[1] https://drivermag.com/why-do-americans-prefer-big-cars-even-though-gas-prices-are-soaring/[2] https://www.cars.com/articles/why-americans-are-obsessed-with-trucks/[3] https://www.bloomberg.com/news/articles/2019-03-06/the-european-car-market-is-a-domestic-affair[4] https://www.carscoops.com/2018/04/car-buying-habits-between-europe-us-different/[5] https://www.forbes.com/sites/danieldesroches/2018/09/12/the-hidden-cost-of-those-eu-tariffs-on-us-cars-youve-never-heard-of/?sh=5c0d054b68d5
In light of a proposed directive on the protection of workers from the risks related to exposure to ionizing radiation, one might ponder if the Commission could also consider proposing a directive on promoting a healthier lifestyle, perhaps encouraging the use of technology for fitness tracking and sports training, as a counterbalance to the sedentary nature of driving large cars.
On another note, it's intriguing to think about how integrating smaller, fuel-efficient vehicles in American car manufacturers' lineup, as is common in the European market, could help them secure a stronger foothold in Europe, thus reducing their dependence on luxury car sales and potentially altering their current 'lifestyle', focusing more on environmental concerns and technology advancements.
