Over the past five years there has been a shift in brand loyalty with new-car purchases and African American consumers. Since the early 1900s, this group has a history with the American automakers: GM, Ford and Chrysler.
In fact, Ford was one of the first domestic automotive companies to recruit African Americans from low-paying jobs in the South to work up North in factories, earning the same wages as their white counterparts. This was the beginning of the Great Migration from the South to the North for the automotive community.
Automotive manufacturing jobs exploded again in the late 60s for African Americans, at the height of the Civil Rights Movement, creating a secure and comfortable middle class lifestyle for close to three generations, until the recent erosion of automotive manufacturing jobs in America. We can see the effects of this in Detroit and other areas in the Midwest that were heavily dependent upon the automotive industry.
Also a number of domestic automakers allotted new-vehicle dealerships to African Americans in the 70s and 80s, helping to create a new-class of African American millionaires.
Now while these major events were occurring, the foreign makes were slowing chipping at the heals of African American consumers over the past decades, wooing African Americans consumers by building smaller, fuel-efficient reliable vehicles, while the American companies were focused on profit making trucks and SUVs. The foreign makes just like the domestic makes began to build automotive plants in America too, hiring African Americans while at they same time making baby steps to allot dealerships to this group too.
Ironically, over the past five years, with domestic manufacturing jobs eroding, so has African American new-car purchases. Prior to the federal government invention in saving both GM and Chrysler, Chevy was the number one make with African American consumers.
However, over the past five years Toyota has basically swapped market share with Chevy, gaining by 2.1 percent to almost 15 percent, while Chevy's market share slid by 2.2 percent. Toyota over the past few years has invested heavily in going after the African American market, securing a dedicated minority-owned advertising agency to help woo this group, while at the same time building reliable vehicles. Toyota is also launching the next-generation Camry later this year. This will definitely help the automaker to maintain and/or possibly improve their market share. And across the way, Chevy is hoping to regain their loss market share with African American consumers with the release of the 2013 upscale, globally redesigned Malibu next year.
Now unlike their American neighbors - GM and Chrysler - Ford has been able to avoid running off the road over the past five years, which is an amazing feat, considering their counterparts were almost in the ditch. Maybe Ford has survived because they were the only American automotive company that stayed afloat during the recession without intervention from the federal government. Added to that, they've also improved the style and quality too of their vehicles. These are two attributes that have caused many African American to shift toward foreign brands.
And Dodge's market share has virtually shifted to Hyundai, which has both improved its quality and designs too, making this a respected brand with African American consumers.. Hyundai, like the domestic makes, is also using the talents of an African American to help infuse soul into the designs of its vehicles, as we see with the current-generation Sonata and Elantra.
Like Toyota, Honda, Nissan and VW have made inroads with African American consumers too over the past five years. Honda has made the largest market share gains of any automaker with African American consumers over the past five years. And the Asian brand hopes to continue chipping away with the redesigned Civic which will hit the streets later this month. We've even heard from some Honda insiders that the current-generation Ford Focus could make this a tough battle for the Civic. Just think: when was the last time a foreign car company threatened by an American company? This is definitely a sign of the times.
With this big shift toward foreign cars, don't expect the American makes to go down without a fight. While the federal government forced GM to eliminate the Saturn and Pontiac brands in order to focus on its four core brands, Ford decided to follow suit last year, eliminating the lackluster Mercury brand from its portfolio. Dodge and Chrysler are back in the game again too. Both brands have just launched an improved Chrysler 300 and Dodge Charger.
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Yes, the automotive competition is heating up now that the recession is behind us and the economy is improving. Even Kia, which is a sister brand to Hyundai, is capturing the hearts and souls of African Americans with its redesigned, Audi-influenced Kia Optima. We suspect Kia will make the list next time we analyze the car-buying habits of African American consumers.
To access the latest data on the brands which were the most popular for blacks in 2010, click here.
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