Back in the late 90’s VW was, “Getting the Bugs Out“. In more ways than one VW had found that special elixir of popularity and hipness that made it a media darling.
Before the flower vase era of VW there was the “Second Coming of Chrysler“. Cab forward designs and horsepower aplenty gave Chrysler a foundation for high profits and massive market gain. If Y2k had indeed ended the world as we knew it, these two automakers would have been memorialized success stories.
Since these Clinton era prodigies, only a few car manufacturers have really broken the ranking order for car companies in the North American market. Hyundai, Toyota, Subaru and NissanRenault. Hyundai has been the most clearcut beneficiary of modern tastes. However no success story in this business lasts. Just look at VW and Chrysler.
So who do you think will be the next success story of the first half of this decade? Will it be one of the manufacturers already mentioned? Or perhaps some other automaker that has yet to truly flex it’s muscles?
After seeing the price increases of the new Azera and all the Genesis models I wonder if Hyundai is going a little too far to cash in on their success.
I think Chrysler will yet again become the next big success story.
Maybe in a few years we’ll be talking about how Tesla took off…
“After seeing the price increases of the new Azera and all the Genesis models I wonder if Hyundai is going a little too far to cash in on their success.”
For the Azera, possibly. But I’d say the bump in the Genesis Coupe is in line with the improvements being made to it.
I can appreciate the extra power but I think another $2k is a little much. I’m guessing this will put the Veloster turbo in the lower 20’s, which also would make it overpriced IMO.
The Azera and Genesis lines are not mainstream enough to matter, but Hyundai/Kia has been getting assertive with pricing across the line. That has to slow their growth, especially in the areas where they compete as a commodities.
People are going to buy a Genesis Coupe or Mustang or FR-S over emotions, not over a few grand, but a few grand will definitely make the difference between an Elantra or a Forte or a Focus or a Cruze.
It’s supply that’s limiting Hyundai’s growth; if they had more Elantras to sell, they could have easily sold another 20k+ last year.
That’s why Hyundai’s fleet % for the year is 9%, which is about HALF of Toyota’s fleet %.
It matters if they are making room to increase their prices further down the lineup. The policy might have changed but I remember reading that Hyundai isn’t interested in expanding production capacity, but making more money on what they sell. Makes sense as they are coming from the bottom of the market. But this just feels like too much too soon. A base Genesis coupe was high on my future shopping list but it’s just not the value it was anymore. I’m on my second Hyundai and still expect value for my money. If that goes away I think they’ll lose a lot of repeat buyers.
The Genesis coupe was never meant to compete against the pony cars, but the likes of the G37.
The next gen GenCoupe will be going even further upmarket and will be paired with Hyundai’s upcoming RWD compact sedan that will be competing against the G37, 3 Series, etc. – so this is just the natural progression.
The new Azera is priced in line with others in its segment and comes loaded with much more kit; it’s pricing strategy is not any different from that of the Sonata compared to its competition.
As for the GenCoupe, it’s the progression as the GenCoupe goes upscale to compete against the likes of the G37.
The next gen GenCoupe will increase in price even more so, but it will be more luxurious and paired with Hyundai’s upcoming RWD compact sedan.
i have to agree with you. hyundai dropped the ball with pricing the gen coupe and azera. the gen coupe simply wasn’t competitive before, and maybe now it is.
everyone will continue to ignore it.
No SE & GLS smaller engine Azera as Sonata would overlap. So the new one is 32K. 2011 LTD was 30K without standard Nav or a design that anyone wanted.
The Azera came to compete with Avalon and larger Buicks. Smallish market. Avalon cancelled base XL model and now has an MSRP of 33k to start. Azera is priced correctly.
My uncle got a Lacrosse recently. If the Azera was avalible he would have checked that one as well.
Value players want to go upmarket & make more money per copy. Wouldn’t anyone?
Gen coupe 4 cyl. is pricy if compaired to Mustang. 6 Cyl . Gen with 3.8 V6 gives more bang for the buck.
I get that it’s now priced comperably to the Avalon, but how many conservative older shoppers that buy these cars would choose Hyundai over Toyota, all else being equal??
Who is going to comparison shop a G37 and Genesis 3.8 and be willing to pay the same for the Hyundai?
There’s a reason the Japanese launched new brands for their luxury cars. People at the higher end buy on brand as much as anything else. Hyundai is going to get a rude reality check if they price comparably or even too closely to established luxury brands.
Just wishful thinking, but, what is Mazda’s chance ? I am certainly noticing a heck of a lot of Mazda badges on the road in the Boston area.
My brother just bought a Mazda3 after looking at a Hyundai (and being turned off by the lower quality build of the interior, etc)
I would agree if their styling didn’t go off the deep end. The previous generation 3 was a really good looking car and I would still consider buying one if I needed a small car. The new one however, I won’t even consider because of the way it looks and most people I know agree.
Ditto for the 6
I don’t think Mazda will become much of a success unless they change their design philosophy. They are trying to cater somewhat to enthusiasts. Unfortunately, enthusiasts are a small segment of the market.
At the moment things are looking grim for Mazda. They better hope the Skyactiv cars and the new CX-5 are a huge success.
Mazda could be a good guess. Three reasons spring to mind:
1. The styling screw-ups may be over, if the CX-5 is any indication. Good looking car.
2. Mazda seems to have found religion on fuel economy. Not sure if real-world numbers back up the EPA ratings, but Skyactiv seems to be a huge leap on a spec that many shoppers care about these days.
3. Their only hit is the 3, but it’s been very successful given their limited dealer network, and people who buy Mazda3s probably skew young. Young people buying 3s grow up to older, wealthier people buying 6s and crossovers.
On the other hand, Mazda may simply be too small to develop a wave of attention-getting new cars like Hyundai.
I believe you are correct.
The two things that have hurt Mazda over the last several years have been the psycho clown fish looks and comparably poor mpg. I think they’re fixing both issues, and they’ve tagged the 6, 3, Miata, and possibly even the CX-9 for new versions in the next couple years. That’s a tall order, but they can’t allow the schedule to slip. I’ve driven a SkyActiv 3, and I will on record saying the mpg improvements are real.
The CX-5 is poised to be another hit to go with the 3. It’s been getting excellent buzz, so hopefully that spills over to good popular attention. I don’t think it will ever beat the Escape or CR-V in sales, but it doesn’t need to–it just needs to be another dependable seller to go with the 3 and bring (different) people into the dealerships. FWIW, Mazda stocks went up 6% the other day when the CX-5 went on sale in Japan.
Another problem for Mazda is their lack of advertising. People just don’t know about them to consider them. If these new cars hit the button, word of mouth will do wonders for them.
Mazda won’t be profitable this year, and if the yen doesn’t get fixed, they might not be next year, either. If Mazda becomes a break-through success, it won’t be for several years.
I just think that there are not enough dealers for Mazda to compete against other companies. Unless you want to buy a Miata, everyone else has something similar with dealership that is more conveniant, so why bother. (FWIW, my 2000 base Protege is the only car I ever bought new. Still drives great. But the dealership left my area, and others close by have closed also, so if I go new for its replacement, it will not be Mazda).
Mazda won’t even survive much longer if the yen doesn’t depreciate dramatically and soon.
I came here to post the same thing. I don’t know if it will happen, but I sure hope Mazda can pull it out. The Kodo design language should help…
Perhaps it will be a brand that has yet to exist, the Genesis brand.
My best bet right now would be Hyundai’s stablemate, Kia. To move up you can’t be afraid to be different. Hyundai is really more of the same, except cheaper.
All of these manufacturers are trying to be full line OEMs and you lose most of your identity that way. Look at Porsche which now sells more SUVs and sedans than anything else.
Ford seems to have the most compelling designs. They are basically bringing European cars to market with an American brand. Add the ongoing F-series success and you have a winner.
Another vote for Kia. Fast growth because they’re coming from a smaller position, but piggybacking on Hyundai’s distribution network. Hyundai’s continued success depends on how well they do next generation versions of their cars, otherwise they could be the next Clinton era Chrysler.
My vote is for Kia also. I believe they are going to be a major player in a few years.
Peugeot is finally in a position to achieve market dominance.
Peugeot has exactly the the marketshare they deserve in the United States!
I’m guessing Ford. Ford is becoming a serious option for those that value reliability most (see the JD Power post), and their new Fusion just makes the Camry’s styling look sad by comparison. The CMAX looks like it has best chance of being a competitor to the Prius–the Volt and Insight are busts–what else is there?
Chrysler is also interesting, they have a line that many folks buy mostly on emotion, Jeep, and that is an advantage that other manufacturers do not enjoy. The 200s are selling despite the way they have been bashed in the press, so maybe if they get a product that is well reviewed, the company may take off. The dart looks interesting. If they can get qualtiy up and keep it up, they have a chance.
Also, Chrysler has something a little unique. With Charger and 300, they have biggish rear-drive cars that are actually affordable, if you don’t load them up too much.
+1 for yet *another* Chrysler comeback.
They seem to be serious about improving their products, and as noted they have some lines that people buy on emotion.
But even more important is their newly competitive cost structure. Their debt was wiped out in the bankruptcy, and the devaluation of the dollar has reduced their costs significantly.
I’d say VW is the one that could come on strong. They have some good products, and some unique ones with the TDI cars. All they need to do is improve reliability, and improve, and increase the number of dealers.
VW’s dealer network is going to kill their growth potential if they don’t get their reliability and dealer service quality up to par.
What kokomokid said.
Volkswagen without any doubt. (have you seen their jup in the sales charts?)
they have mastered the art of the blase American Sedan with blindingly good sales results, they have top pick hatches, they have that abominable hateful little TDI motor that so many adore, they have brand appeal and rabid fanbase, and they have one thing that no one else has – gobs and gobs and gobs of money they just recently dumped into R&D.
All they need to do is apply their sedan model to an SUV for mass market domination, replace the chryler minivan they sell with the Bulli microbus revival, and they will only continue to sell crappy cars built in mexico by the truckload.
I do predict a few hard years ahead for Audi until they replace/update the 2.0T motor now that it’s been so cleanly obsoleted by the BMW N20 motor.
“That abominable hateful little TDI motor”…. Have you ever dirven a TDI? There’s a reason everybody loves them. The TDI is a great engine.
Even the old 1.9 TDI was great. I had one in a manual transmission Jetta wagon. It drove well, and got great fuel economy. I routinely got tanks of over 50 mpg during a time of year that I drove on rural two lane roads a lot, going 55-60 mph, and the tank was large enough to go 700 miles per fillup at times.
The current, 2.0 TDI is much peppier, but a little thirstier. Still, if you want fuel economy and don’t want a Prius, the VW TDI’s are the best game in town.
I vote for Chrysler.
I drove a 200 rental car last April and a 2012 Town & Country last month. I was impressed with how much they had improved both products in such a short amount of time. Imagine what they could do with a clean slate!
SAAB
oh wait…
Hyundai, Kia, and VW, because they’ve already got the momentum and have a few more cards yet to play.
Chrysler, because the bailouts are fading from memory and recent product improvements suggest “American elegance” in a way that might really resonate with buyers.
I’d like to say Nissan, based on the onslaught of exciting new product that must be getting close. But then I think of the new Versa, and throw up a little bit in my mouth.
I think given the right conditions, I think Cadillac can make a comeback. It has already made huge progress from the 1980s/1990s, but that is not what I mean.
If Cadillac has enough tenacity to put out a 4-door V12 or V16 that competes against Bentley people will buy it, because it is expensive.
Fiat. Definitely.
I’ve been reading down through these, and waiting for a mention of Fiat. I really don’t think that Fiat, per se, is going to do much in the U.S. I believe that Fiat – as Chrysler – is going to make a strong comeback based on what they’ve shown so far. However, I don’t see the Fiat 500 really making an impression on the Japanese, the Koreans, or VW. perhaps the promised $5 a gallon gas will help them but I just think that the 500 is too small to be a serious contender outside the urban commuter group. So far Fiat has avoided any quality horror stories, though, which is vital for them. They have to get past the first 5 years cleanly or Fix-it-again-Tony will come back to haunt them.
I personally have great hopes for Alfa (although the fates of SAAB and Volvo and soon Madza) worry me. The performance luxury niche is never as big as the manufacturers seem to think it is. Who is going to move over to let Alfa in?
Trying to make an educated guess on this, but all I can come up with is reasons why nobody breaks out.. They all just shrink, some slower than others…
Boomers can’t risk their retirement savings a new ride
Huge chunks of all demographics now have crappy credit due to job loss, forecloses, etc…
Recent grads can’t get jobs
Mid life crisis guys either don’t have the credit score or can’t take on the payment
Folks delay/defer due to concern about potential job loss
Millions of parents co-signed for their kids student loans and now have to pay those instead of a car payment
Wow. This sucks…. I need a beer….
I’m torn between the three with the most votes already:
Ford: They look like the new Toyota. Finding their success in small cars and building their way back to relative. The styling is still somewhat conservative but the goofy fusion face is gone and finally the lineup looks like brothers and sisters rather than inbreds. The fact they have remained profitable and didn’t need bailouts helped their image. Overall they look to supplant GM as the make that America rides in.
Kia: As Hyundai repositions themselves as the almost-luxury car Kia is doing their thing by selling everything they got and doing with a good looking grill (I know, berate me at will). Their products are coming on strong and I see a great deal of Kias being sold for being Kias and not as the Hyundai crowd tends to still be buying on price.
VW: They own Audi and they seem to have finally figured that out. When a Passat is pushing with options into base A6 territory there is something wrong. If the next Jetta comes off as good as the last and starts slightly cheaper (13-14K) they may have a runaway success on their hands. They need to develop two follow-up CUVs though on the Jetta/Passat platforms and as stated bring over a mini-bus just for brand appeal and they could easily take the crown.
A couple years ago, I would have said Ford. But I don’t think so anymore.
It seems they’ve shifted their focus from improved quality & mpg to electronics. I expect it will generate a lot of sales at times, but electronic gadgets & their buyers are fickle. I don’t see Ford’s strategy generating sustained success.
Suzuki?