Even though both Honda and Toyota are pulling out all the stops, North American consumers are choosing to buy their vehicles from national companies. Ironically, the automotive companies that benefitted from the US government bailout in 2008 and 2009 are getting money from their consumers two-fold. After taxes were allocated to prevent companies such as Chrysler and GM from going under, the very same tax-payers are passing by European and Japanese automotive companies in favor of bailout recipients. Of course, some level of patriotism is to be expected, but the foreign automotive companies never expected it to go this far. Currently, Honda is experiencing about a 25% sales loss when compared to past sales, while Toyota reports that it sold 34% less cars between 2009 and 2010. Part of the reason that Honda and Toyota expected lower sales stems from the US government sponsored ‘cash for clunkers’ program. Both Honda and Toyota have announced recalls of some of their best selling cars, a fact which has only added to lower sales.

To combat this, Chicago Honda dealerships have announced end of the year clearance for pre-owned and new Honda buyers. It will be a lot harder for Honda dealerships to sell older model vehicles, but they are certain that their wide selection of 2010 model cars will be big sellers. In a similar move, certified Toyota dealerships are picking up their advertising efforts and announcing huge mark downs to clear out their lots for 2011 models. While pre-owned Toyotas are still some of the company’s big ticket items, their 2009 acceleration recall has made potential buyers weary. Toyota sales professionals have been making every effort to ensure consumers that the affected vehicles have been completely repaired, but it is still an uphill battle. With the economy going the way it is, many consumers are not looking to buy the newest cars equipped with state of the art features when they can purchase a recently owned car for at least 1/3 less.