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More about car,automotive,trends source New Zealand Herald title Why are people more likely to buy a car if they know its made in America?
article The American carmaker Volkswagen AG has released a survey that reveals that about two-thirds of the people who buy a new car are aware that it is made in the US.
The survey, which was carried out between September and December 2016, also found that about one in 10 American consumers know the carmaker is made there.
But that may not be the case, say researchers.
According to a recent study, Americans may be getting used to paying more for a new vehicle overseas than in the home.
“People are used to the fact that the quality of the vehicles they buy is not necessarily comparable with what it is here,” says Dr Daniel Stolz, a senior research fellow at the University of Melbourne.
“So when they find out the car is made elsewhere they’re very excited about the fact they’re paying more.
But they are also very suspicious about the quality and reliability of the cars that are being sold.”
One of the most popular new cars made in China is a $5,000 vehicle with a 1,200cc petrol engine, but a recent analysis from carmaker Nissan showed the company is making far fewer cars in China than it was in 2016.
A similar analysis of the US sales of new cars revealed that nearly half of US consumers had never heard of the American brand in the first place.
The most common question consumers were asked was whether the car was made in Mexico.
Dr Stolaz says it’s clear that the US is a much more attractive place to buy cars in terms of quality.
“If you’re buying a car in the United States you’re going to get a brand-new car, the factory is going to be the same, and the service is going in the same building, so it’s very likely you’re getting a brand that’s been designed and built here,” he says.
“It’s probably a little bit more expensive, but the quality is likely to be more similar to the quality in Mexico.”
He says that may be why people in the states are increasingly willing to pay more for vehicles overseas.
“I think that’s really the biggest difference between the US and Mexico,” Dr Stulz says.
One way to tell if a car is US-made is to look at its engine capacity.
The average capacity of the Ford Focus, for example, is 1,600cc, but in China the average is about 600cc.
If a car has an average capacity that’s well above its domestic capacity, it may be made in another country.
Dr Martin O’Connell from the University the University, Melbourne says that this difference between domestic and foreign-made cars is important to look out for.
“There’s a big difference between a Chinese brand and a US brand, so a lot of people will look at a car made in a Chinese factory, and they’re likely to assume it’s going to have better quality than a car produced in the UK,” he explains.
“The fact that it’s made in US means the quality, the safety, the durability of the vehicle, is likely much better in the manufacturing of a US-built vehicle.”
In 2018, American consumers bought about 3.2 million cars.
That’s up from the previous year, when the figure was 1.6 million, according to US auto-industry group Automotive Research Institute.
Dr O’Connor says that it will take time for people to adjust to the new cars coming out of China.
“We have seen that consumers are more willing to buy American cars now than they were a couple of years ago,” he points out.
“But it will be years before these new cars actually hit the roads.
That will depend on the quality.
I think it will have to be a long time before we’re seeing the quality level that we’ve seen in the States.”
Source: Al Jazeera