US Auto Company Failures 4-18-25

US Auto Makers failed to factor in predictable trends after 1945, when they returned to auto production. The US economy boomed while Europe was rebuilding from 1945 through the 1950s. Gasoline was cheap and the Auto Companies didn’t anticipate any changes. They didn’t anticipate that gasoline prices would rise. They concentrated on building large, heavy cars with big engines.  

In the 1960s, US Auto Makers, GM, Ford and Chrysler held most of the market share in the US. These cars were affordable, but only lasted for 10 years and got 10 miles per gallon. In 1960, gasoline costs were low at 20 cents per gallon.

By 1970, the average cost of regular gasoline in the United States was around 36 cents per gallon. 

By 1980 the average cost of regular gasoline in the United States had risen to $1.19 per gallon. 

In the 1970s, The US Auto Makers had Poor Quality. Japanese Companies like Toyota and Honda were designing better quality cars that got better mileage and lasted longer. In 1974, the price of new US cars doubled from $4000 to $8000..

In 1980, Japanese automakers held a 21% market share in the U.S.

In 1990, Japanese automakers held approximately 32% of the U.S. automobile market share. 

In 2000, Toyota introduced the Prius Hybrid. In 2005, the Toyota Prius Hybrid had been redesigned to get 60mpg.

In 2005 the average price of regular gasoline in the U.S. in was $2.30 per gallon. 

In 2010 the average price of regular gasoline in the U.S. was $2.79 per gallon. 

In 2014, Chrysler was sold to Fiat.

In 2023, Ford's total market share was 12.8%.

In 2025, GM’s US Market Share is 16.8%.

Now in 2025, all new car prices are unaffordable. To survive, GM and Ford need to design a new car that sells for less tha $20,000 to expand their market share. 

In 2023, approximately 32.3% of US households had a household income below $50,000 per year. 

In 2023, approximately 41.5% of US households had a household income below $60,000, meaning around 53.8 million households. 

In 2025, it's estimated that at least half of US households have a household income below $70,000 per year, based on data indicating that 49.8% of Americans made $75,000 or more in 2022. 

US families with household incomes below $50,000 in the bottom 50% will not be buying new cars.

Norb Leahy, Dunwoody GA Tea Party Leader