According to a new study at AT Kearney, over 200,000 customers in the US who are planning to purchase a vehicle this year are undecided on the manufacturer they are planning to purchase from.

While Nissan had a 19% global sales rise last year, selling 4.2 million vehicles, the shortage of car parts stemming from the devastating earthquake in Japan earlier this ear are forecasted to hamper the sales of foreign vehicles. However, Japan is working hard to prove them wrong, all the way to having their workers in full production on the weekends, traditionally the days off for workers in many parts of the world.

The Japan Automobile Manufactures Association have announced that they have changed their hours of operation, being open on the weekends and closing on Thursdays and Fridays in an effort to increase production. Japan has placed restrictions on power consumption as a result of the earthquake. During the summer months, with air conditioners pumping continually, the manufacturers are limited, and with Japan asking for a 15% reduction from all companies in their energy consumption, it’s a heavy burden.

Even with Japan’s efforts to increase their production in the aftermath of the quake, the US and South Korean auto makers are expected to benefit this year by increased sales. However, many parts for all manufacturers are made in Japan, which makes the quake’s production disruption an issue for most everyone involved in the car market.

One major issue for Japan’s auto industry is the consumers view of their stability. GM and Chrysler felt the burden of being scorned in the consumers eyes during the season of the bailout when both manufacturers were financially rescued by the US government. Only recently have their sales seen an increase. Japan may be feeling the same scorn, if the consumer feels that if their car breaks down they’ll have to walk because parts will not be available, they may be more likely to go with an American company, even though many of those parts are made out of the country too.

This may lead Japan’s manufacturers to offer dealer incentives and great deals for their customers to try and get more of their vehicles on the road. Japan has typically been the low priced-high quality vehicle that many customers in the sub prime market flock to because of the incredible value their vehicles offer. This may lead Japan’s automakers to offer incredible finance options to get auto loans for people with bad credit to their brand. Japan will also have to show their current customers that they will be there, through thick and thin, an ocean away, regardless of any tragedy that befalls them. So far, in my opinion, they have done a stand up job in that aspect.

American manufacturers are now better financially equipped to try and match whatever incentives Japan may try to use to entice customers. Since GM filed for bankruptcy and took the $52 billion bailout from the US government they now have $36 billion in cash reserves. This year is going to be a great year for the auto shopper. It’s going to be an interesting battle to watch and to see who comes out on top in total vehicle sales, and total profits.

Author Bio: Anne Thurgar is a staff writer for CyberLead, inc http://cyberleadinc.com specializing in auto sales leads http://www.carcredit.com delivering quality car loans for ten years http://www.carapproval.com The webs best Bad Credit Auto Loans

Category: Automotive
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