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Sunday, October 10, 2004

The 'Made in the U.S.A.' ploy


Automakers, foreign and domestic, tout their American-made vehicles

By Brett Clanton
The Detroit News

DETROIT - If record discounts on new cars and trucks aren't enough to lure buyers into dealer showrooms, maybe Old Glory will provide the extra nudge.

Several automakers, both domestic and foreign, are draping themselves in red, white and blue advertising campaigns and corporate messages that trumpet their commitment to building vehicles in America and hiring U.S. workers.

Foreign companies are clearly targeting customers who might consider their cars and trucks, but feel an obligation to buy American. Traditional domestic automakers are firing back to make sure foreign manufacturers don't get all the credit for building vehicles in the United States.

"A lot of foreign competitors are coming into the country and touting their investments and the things they've done, but they pale in comparison in terms of what we do every single day," GM spokesman Gary Grates said.

Japan-based Toyota Motor Corp. and Honda Motor Co. recently launched marketing campaigns to tell U.S. consumers that many of their models are built in a growing number of U.S. factories popping up throughout the South.

Now, DaimlerChrysler AG's Chrysler Group, eager to show its American side despite its 1998 takeover by Germany's Daimler-Benz, is touting its commitment to the United States. In an August report called "Invested in America," Chrysler catalogs its U.S. presence, including its 76,000 U.S. employees and $2.4 billion investment in U.S. factories last year.

"We may not be American pie anymore," said Jason Vines, Chrysler's vice president of communications. "We're part pie and part strudel. But we are proud of our deep roots in America and our investment in America."

Analysts say the made-in-America campaigns might not pay off in a flurry of sales, but could improve brand image over time.

DaimlerChrysler, Ford and GM still build 75 percent of the cars and trucks made in America, and employ almost 90 percent of all American auto workers, according to the Chrysler report.

But Big Three market share and employment are declining while Japanese automakers are increasing U.S. sales and payroll.

This summer, Toyota launched a national advertising campaign to spotlight its U.S. investments, which include eight U.S. factories and $12 billion in spending since 1957.

The idea of the $10 million campaign was to remind U.S. consumers that while Toyota is headquartered in Japan, many of its most popular models, including the Camry and Sienna, are built in the United States, said Dennis Cuneo, senior vice president of Toyota's North American arm.

Honda is celebrating its 25th year of manufacturing in the United States with regional ads praising its homegrown workforce and reminding the media and government officials of the automaker's rapid growth here.

"We're not trying to hit anybody over the head with any message," said Ed Miller, a Honda spokesman. "We're just trying to put the numbers out there."

But Detroit auto officials have charged that some foreign automakers are simply draping themselves in the American flag to get into the good graces of U.S. car buyers.

"What (foreign automakers are) doing in terms of trying to become more American is interesting," GM's Grates said. "But quite frankly, that's more of a marketing slogan than the reality."




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