Why do car manufacturing companies make different cars for different countries?

[ACMAir]

Hey. I'm aware that there are different rules and regulations in every country, and its not only to the hand of the car manufacturer, but I believe if Ford would bring some of its Australian models to the US, they would sell great. Can't ford keep the same body design with the rest of the car, chasis, w.e complying to US regs?

Ford Mondeo

http://www.businessweek.com/autos/au...d-mondeo-1.jpg

http://cache.jalopnik.com/cars/asset...o-Sedan-05.jpg

Ford G Series

http://www.webwombat.com.au/motoring...urbo-4-big.jpg

Each look better than their American counterparts.

What do you think? Why can't they bring these cars to US, and do you think they would sell if they brought them to US?

[cybergift]

I believe it's because the car manufacturing companies have done their research before entering any market. They have to follow the rules as well as obeying the laws if they want to succeed.

[Fanatik]

Other than that, I think they would sell well. They certainly do their research, but still seem to amaze me at their decisions. Case in point is the Nissan Skyline. Why in the living hell would you not introduce that to the US market? People here die for that car. I owned a Skyline when I lived in Japan and it was by far the best car I've ever owned, bar-none (comparing this to my Audi TT and 350z). Now they're introducing the GTR in the US market, but only the GTR model; not the regular Skyline (GTS, etc). Their decisions are way off the mark sometimes.

J

[1entrepreneur]

I've asked this question myself.

I think it's because for a global car company, the design teams in each country are autonomous, meaning they can make whatever they want. So if you have multiple design teams around the world, you'd get multiple designs. And each team in each country would try to build a cutural/home-grown design that the country can identify with. Also, cars are major investments, therefore it make sense to have as many designs as possible to please as many customers as possible.

The car industry is different to, say, the mp3 player industry. An Ipod has only one design team, and will look exactly the same no matter where it is sold in the world.

[ACMAir]

I've asked this question myself.

I think it's because for a global car company, the design teams in each country are autonomous, meaning they can make whatever they want. So if you have multiple design teams around the world, you'd get multiple designs. And each team in each country would try to build a cutural/home-grown design that the country can identify with. Also, cars are major investments, therefore it make sense to have as many designs as possible to please as many customers as possible.

The car industry is different to, say, the mp3 player industry. An Ipod has only one design team, and will look exactly the same no matter where it is sold in the world.

That seems to make sense, but wouldn't it be more economical to have one design team, less expenses, and to streamline the car designs, because that would mean less parts in the factories dedicated to the manufacture of a certina particular vehicle, and all the added expenses, whatever they may be, of having more than one design?

I completely understand the idea of having a different identity in each country, but doesn't that just cause confusion?

[byzantium]

Ford is trying to homogenize its car design process, with the Fiesta (sold in Europe and Latin America) being geared up for a release in the US in 2010 or 2011. A big problem is currency exchange rates. For example, Ford makes an amazingly fuel efficient clean diesel engine, but it's made in the UK, and one pound is worth 50 US cents. Therefore, if the car that's sold in Europe were to come to the US as is, it would cost more than a Prius. The market isn't big enough to build an assembly plant for it in a friendlier country. So we don't get it.

There are other problems too. The US is the only country in the world still not using metric. Therefore, you just can't grab a car selling in Europe and ship it over here. Converting odometers and such takes money. Also, Japan uses right hand steering wheels, while the US is on the left. I know that Australia gets tons of slightly used Japanese cars, but they drive on the same side of the road. You can't have half the people driving left hand cars and the other half driving right hand cars.

I wish the US got the Toyota Land Cruiser 70 long wheelbase pickup, the same truck that you see on news footage stuffed full of third world guerrillas. Those things are indestructible. As a consolation prize, we get a lengthened FJ series jeep with a beefier body to make it look like a Hummer, called an FJ Cruiser. They're selling like hotcakes in the US right now, while luxury SUVs get taken off the market. I hope we can get that FJ pickup, too. We DO get the Hilux pickup, made in California and dubbed Tacoma.

Another car I'd like to see are the "jeepney" vehicles popular in southeast Asia. I saw a guy driving a right hand Honda jeepney recently that he'd brought over himself. The excuse there is that the jeepney isn't up to US safety standards, and in many cases, like the Daihatsu model, it isn't. A case of bad timing is when the Korean car maker Daewoo tried pitching their subcompact cars during the SUV era. They were poorly made, and gas was cheap, so nobody bothered. Daewoo spent zillions on a dealer network only to see it go up in smoke.

The French have gradually pulled their cars out of the US, because they sold poorly. Citroen balked at gas crisis safety standards and left in the mid 70s. Renault threw in its lot with AMC, only to get screwed badly when AMC went under. Peugeot never caught on with Americans, even though Peugeot tried. The cars were just too French. The Italians tried selling econoboxes such as those little Fiats in the 70s, but flopped-people wanted Italian sportscars, not economy cars. Opel (GM Germany) tried selling the Kadett in the early 70s only to see the deutsche mark gain against the dollar and wipe out their profits.

For decades the US car market was closed to everybody else via huge tariffs that kept everybody else out, except VW who apparently knew who in Washington to pay off. Cars had to be designed and manufactured in the US. Other countries had similar laws, which is why car design is so fractured. Integrating all that without a global currency is impossible. Americans are generally opposed to a single global currency, and the problems with the euro indicate that making it work would be difficult.

[1entrepreneur]

That seems to make sense, but wouldn't it be more economical to have one design team, less expenses, and to streamline the car designs, because that would mean less parts in the factories dedicated to the manufacture of a certina particular vehicle, and all the added expenses, whatever they may be, of having more than one design?

I completely understand the idea of having a different identity in each country, but doesn't that just cause confusion?

I agree. One design team selling the same models worldwide would save the companies billions. But the danger is that if only model(s) from one company sells well around the world, where does that leave the other models from other companies?

Look at the Ipod, it's virtually dominated the MP3 player market. The car companies spread their bets by producing a wide range of models, and by building a brand specific for the location(country), they have a better chance of getting customer loyalty.

I assume that's their reasoning. They wouldn't throw away billions of dollars for nothing.

[ACMAir]

I agree. One design team selling the same models worldwide would save the companies billions. But the danger is that if only model(s) from one company sells well around the world, where does that leave the other models from other companies?

Look at the Ipod, it's virtually dominated the MP3 player market. The car companies spread their bets by producing a wide range of models, and by building a brand specific for the location(country), they have a better chance of getting customer loyalty.

I assume that's their reasoning. They wouldn't throw away billions of dollars for nothing.

I'm assuming there is some truth to it, but if it were up to you, would you purchase the Ford G-series (image in thread start) or the Fusion?

Well, correct me if i'm wrong, but if the car is not 100% completed, and shipped to US don't many of the tarriffs and such get waived?

[anonymousadguy]

The carmakers are very aware of differing cultural trends. In recent years, the cars Americans go for (big, gas-sucking SUVs) would never sell well in countries with higher gas prices, and the culture leans towards conservation. Also, countries in different stages of development need different types of cars. So what sells well in Europe will sell poorly in Europe, and vice versa.

[1entrepreneur]

So what sells well in Europe will sell poorly in Europe, and vice versa.

This makes perfect sense.

[anonymousadguy]

Oops! Meant to say what sells well in Europe will sell poorly in places like Africa or Southeast Asia.