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The market shares of Hyundai, Kia, and VW have received a boost as the Detroit carmakers struggle. Kia and Hyundai have moved their market share from 5 in 2008 to 7.3% today, up by 2.3%. Hyundai had difficulty getting brand name recognition for quality and performance in prior years, but it has persevered. KIa and yundai spend more on incentives, $3200 in 2009 compared to $2000 in 2008 to attract first time buyers. To take into account the economc conditions Hyundai was the first to come up with the Hyundai Assurance Plan, which allows buywers who finance their purchase to return the cars if they lose their jobs. Once these buyers try the Korea cars the ope is that they will see that the quality is on par with the Americans and the Japannese for a lower price, or even exceeds them. The Korean carmakers have worked hard on improving quality. In 2009 Hyundai won the North American Car of the Year award at the Detroit Auto Show for the Genesis luxury car. VW is also gaining market share this year. VW's market share is up to 2% from 1.5% in 2008. Aggressive marketing of the Jetta has moved its sales by 8.3% in May. Some of this market share is coming from Japanese carmakers....

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Most of the sales increases in the U.S. market in the 2012 fourth quarter are seen as going to Toyota and Honda. The arrival of new models for the Accord and Camry and the new Civic are likely to boost the Japanese automakers.

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The shrinking of battleground states under the electoral college system creates serious problems for giving a say to all regions of the U.S. In a functioning democracy all regions would get a say in who will govern the country for the next 4 years. Yet today only a few states in the midwest and in the east determine the outcome of an election. Effectively disenfranchising the rest of the country, the south, the western and eastern coastal regions.

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Steep discounts continue to hurt profits at GM by eroding margins. Profits were $300 million lower because of discounts. With special gains GM's profit was $3,687 per vehicle in North America, without the gains it was $1,653 per vehicle. Ford made $2,806 per vehicle. Emerging markets showed adrop with the car market in China cooling off. One of GM's joint ventures with SAIC Motor in China saw a decline in sales of 32% in the 1st quarter. Chairman Akerson said the challenge facing GM was to reduce incentive costs, and cost cutting to counter rising commodity costs that pushes up the cost of finished parts. On car buying patterns, Akerson says its not all about smaller cars as the smaller fuel efficient SUV's are also attracting buyers, and the smaller cars are better equipped and have higher prices.

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Because most of the increase in U.S. oil production is in landlocked states in the U.S. midwest without easy access to markets in coastal cities, the lower prices of West Texas Intermediate (WTI) crude benefit refiners in the midwest but do little to lower pries of gasoline at the pump.

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U.S. gasoline prices were below $2.06, adjusted for inflation, during 1986-2003, dropping to a low of $1.51 in 1998. U.S. gasoline prices at the pump dropped below $2.00 in Jan. 2015. Buyer behaviour responded quickly to the change for automobiles, with sport utility (SUV) sales rising to 34% market share in the U.S. in mid-Nov. 2014, according to Edmunds.com.

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GM shares have fallen to $32 by April 2011, having dropped by 13.5%. Ford Motor shares have dropped by 9%. All automobile manufacturers have been affected by rising oil prices. And the government's plans to sell all of its GM shares this summer at a loss create additional uncertainty about the value of GM stock. A sense that the IPO roadshow for GM last summer may have oversold GM and created expectations that may not be fulfilled.

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Cars rated high for quality made by U.S. automakers include the Dodge Dart, Chevy Traverse, Buick Enclave and Ford Fusion, Dodge Durango, GMC Yukon, according to the 2013 Quality Index of Strategic Vision consulting firm. Foreign carmakers had Kia Soul, Honda Accord Crosstour, Volkswagen CC, Hyundai Genesis, Audi A4 sedan, Lexus LS, VW Tiguan. Strategic Vision uses 442 variable in its study and ties the customer response to emotional atributes such as "I Love it," a new approach which combines the conventional counting of reported problems with how people feel about the vehicle. This Total Quality Index is based on responses of 17,658 people who purchased 2013 models from September to November 2012.

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A major change is taking place. Automakers around the world are shifting to smaller engines. Hyundai's Sonata for 2011 and the Tucson crossover for 2010 are going to have only 4 cylinder engines. Many V-6's offered by Detroit carmakers are being replaced with 4 cylinder engines and V-8 with V-6 engines. Ford is using the EcoBoost a turbocharged V-6 to offer new options for its Taurus, Lincoln MKT and other cars.

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Cyclicality and capital intensity in the auto industry keep Ford's share price down.

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Cultural issues for management ranks at Hyundai and Kia Motors and the revolving door for American managers at these Korean companies. There is a cultural gap between American managers and the Korean management because Hyunda and Kia are run in a very regimented militaristic way which may be acceptable in Korea but which makes some American manager uncomfortable, especially the presence of coordinators from Korea who act in a supervisory role with the Americans. Some experts say this has worked for the 2 companies. However they have not been able to penetrate the US market as well as they would like to.