Volvo, Mitsubishi, Road & Track among brands predicted to disappear from US next year
24/7 Wall St., a financial news and opinion website, has identified 10 big brands that it believes will disappear from the US market within the next 18 months. The list “reflects how industry trends can accelerate the demise of certain brands,” says the publication, noting the “brutally competitive nature of certain industries and the importance of not falling behind in efficiency, innovation or financing.” Failure of a brand may happen for a variety of reasons, but the website points out that declining sales, rising costs, losing market share and a loss of customers are nails in an impending coffin.
According to the report, automotive brands with market shares under half a percent cannot remain competitive against giants like Volkswagen Group, Toyota, General Motors and Daimler AG. Citing the loss of Suzuki when it filed for bankruptcy last year, the website is predicting that Volvo and Mitsubishi will follow, exiting the US by the end of 2014. Mitsubishi’s sales were down 15.51 percent in April – making it the weakest performing automaker on our monthly By the Numbers roundup.
Another tough business sector is print advertising, as digital and online media avoid the legacy costs of materials, printing and distribution by truck and mail. 24/7 Wall St. called out Martha Stuart Living and Road & Track as two American brands living on borrowed time. It also predicts that Road & Track, celebrated as the oldest automobile magazine in the country (founded in 1947), will likely roll up with Car and Driver, as both brands are based in Ann Arbor, Michigan, and owned by the Hearst Corporation. However, R&T’s editorial staff recently underwent a major turnover as the magazine relocated to the Mitten State from California, and Hearst backed a top-to-bottom revamp of the publication’s print and online properties, suggesting that the media company believes there’s life in the old girl yet.