Intersection: Everything That Moves is my Substack sequel to my 2003 book, The End of Detroit: How The Big Three Lost Their Grip On The American Car Market. Paid subscribers receive each chapter, plus breaking news updates and other features.
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Looking Back, The Signs Were There
In 2003, Detroit’s three carmakers collectively dominated the American auto industry, with 63.1 percent of the market (figures provided by AutoPacific).
By 2008, the carmakers had dropped to 50.2 percent, essentially placing them even with international brands. In the fall, as the historic financial crisis hit Wall Street, the automakers went to Congress and the White House begging for federal aid.
In those five years, G.M. and Ford together lost more than 10 percent; Chrysler’s loss was smaller, about one and a half points, but from a much smaller percentage.
How did they lose so much share, so fast?
In an industry where every tenth of a point of share is vigorously fought over, the decline was breathtakingly constant, and to those used to Detroit’s dominance, shocking.