Japan's Newer Cars

Will Newer Japanese Models mean Trouble for US Makers?

GM and Ford seriously need increased market share. They both tout new models that they say are going to generate it. The problem is that the new models will be spending most of their tenure competing not with current Japanese models, but instead, with their successors.

For example, Chevrolet's top selling sedan, the Impala, just received a significant refreshening for 2006. Later this year, it will be facing a brand new Camry. In approxiimately two years, a new Honda Accord will be online. In about a year, Nissan is due to introduce a new Altima, a car that already slightly outsells the Impala. Even DaimlerChrysler may cut into Impala market share. The replacement for the Stratus and Sebring will compete for fleet buyers. And Hyundai? No doubt the big Korean maker will be looking for outlets as it ramps up capacity in its large Alabama plant.

How about trucks? A new Toyota Tundra will compete with redesigned GM pick-ups. Cross-over SUVs? Everbody and their brother-in-law will be fighting for the crossover market.

Bottom line: Nobody's going to roll over to help GM get on its feet.