Japan’s automotive powerhouses, Honda and Toyota, are in a strong position to pick up U.S. marketshare in the next three to four years, according to the new edition of the “Car Wars,” report from Merrill Lynch.
Product replacement rate and showroom age drive marketshare shifts, noted Merrill Lynch analyst John Murphy during a presentation to the Automotive Press Association in Detroit. The longer product life cycles of Detroit’s three automakers were one of the key reasons that the domestic carmakers lost marketshare over the years.
However, the industry is changing and product life cycles are converging. While Toyota and Honda will have a narrow edge in the next half decade, Ford and Fiat Chrysler also have aggressive schedules for introducing new products that will help them protect their current share of the U.S. market. (more…)