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Mike Wilkinson

The Detroit News

Category: Cash for Clunkers

Posted by Mike Wilkinson (The Detroit News) on Fri, Nov 13, 2009 at 3:18 PM

Loyalty fades for domestic brands

A deeper look at the detailed data from the "cash for clunkers" program shows that GM did the best job in retaining owner loyalty, followed closely by Ford. Chrysler was a dismal third.

We compared the make of the cars traded in to the make of the cars sold. The data comes from a database of the nearly 700,000 "clunker" sales that took place in which buyers could get up to $4,500 for trading in low-mileage vehicles for newer, more fuel-efficient models.

All three domestic brands did far better in Michigan than they did in the rest of the country. GM kept over 61 percent of its Michigan customers; Ford retained 52.1 percent. Chrysler was way behind, at just one-in-five.

Nationwide, excluding Michigan, GM trade-ins produced a GM sale just under 30 percent of the time. Though low, it represents the best of Detroit's Big Three; Ford had 23 percent outside Michigan; Chrylser just 10.8 percent.

Chrysler owners were even more likely to buy a GM product in both Michigan and across the country.

A look at the numbers

Of the GM products traded in, here's the breakdown of the new vehicle purchases:
Make bought In Michigan In the rest of the country
GM 61.7 29.8
Chrysler 7.5 5.9
Ford 14.2 10
Foreign 16.6 54.4
Of the Chrysler products traded in, here's the breakdown of the new vehicle purchases:
Make bought In Michigan In the rest of the country
GM 31.2 13
Chrysler 20.5 10.8
Ford 22.7 9.7
Foreign 25.6 66.4
Of the Ford products traded in, here's the breakdown of the new vehicle purchases:
Make bought In Michigan In the rest of the country
GM 23.3 13.4
Chrysler 7.5 5.3
Ford 52.1 23
Foreign 17.1 58.3

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