More to the point, is it better to acknowledge that regrets might be common among Chrysler buyers and address the problem with an ad like this one… or does this campaign feed the perception that it’s trying to address?
Category: Ask the Best and Brightest
24/7 Wall Street seems to believe that Hyundai’s junior brand could go away in the next year and a half, as it named Kia to its “Ten Brands That Will Disappear in 2011” list. This despite the fact that Kia’s first-half sales were up 15 percent over the first half of 2009, and Kia’s rolling 12-month sales are over 22 percent higher than its performance in the previous 12 months. So, why does 24/7 Wall Street see Kia disappearing?
Kia Motors Corporation is one of the two car brands of Hyundai of South Korea. It has always been a marginal brand. Its stable mate, Hyundai USA, has a reputation for high quality cars like the Sonata and Genesis. Kia sells “low rent” cars and SUV nameplates like the Sorento and Rio. As GM and Ford have already discovered, it is expensive to maintain multiple brands and storied car names, including Pontiac, Saturn, and Mercury, are disappearing. Most Kia cars sell for $14,000 to $25,000. Hyundai has several cars in the same price range. Hyundai’s Sonata has quickly become one of the best-selling cars in America, and its Genesis flagship model competes with mid-sized BMWs and Mercedes. The parent company will take a page from several other global car companies and dump its weakest brand.
What did the hippie say to the horse? Woooaahh. What the figurative hippie said to the car is an entirely more ambiguous matter…
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In this day and age, it’s nothing short of a minor miracle that giant multinationals still build cars that are as ridiculously potent and expensive as the LF-A. Especially giant multinationals which have made good headway in recent years with a green-friendly, Prius-powered image. The LFA is rare enough that few non-car-nuts know it exist, let alone associate it with their new ES350. It costs $375k a pop and Toyota still loses money on each one built. In fact, thus far, only this video (a promotional shoot by Lexus Europe at the 2010 Goodwood Festival Of Speed) comes close to properly explaining why this car was built (starting at around the 1:10 mark). In fact, I challenge anyone to come up with a more concise argument for the continued existence of hugely expensive, hugely fast cars.
Just yesterday, I noted in my write-up on Mazda’s June sales performance that
with a Nagare-saddled Mazda5 replacement waiting in the wings, Mazda isn’t even well positioned to defend the segment it helped define in the US market, just as GM finally starts taking it seriously
Well, today Mazda announced to Automotive News [sub] that it would be targeting 30k annual sales of the Mazda5’s “Nagare-saddled” replacement. Last year’s 18,488 units was the second-best sales year on record for the 5, as sales fell from 2008’s all-time high of 22,021. In short, Mazda’s compact CUV has always been at least 8k units away from its new Mazda5 sales goal. On the other hand, Mazda never properly marketed the 5, and both GM and Ford are moving into the segment with the GMC Granite and Ford C-Max. Will Detroit’s move into this otherwise-ignored segment (currently contested by only the 5 and the Kia Rondo) bring buyers in, or force already-marginalized players like Mazda out? The fate of the 5 seems to hang on the answer to that one question.
According to BusinessWeek‘s David Welch, GM’s New York market share has slipped below ten percent for the first time, prompting The General to consider a 5th Avenue GM “salon” showcasing the company’s products. Now, the arguments against the idea are too easy: spending government money on some of the world’s most expensive real estate isn’t great PR-wise. Besides, isn’t GM trying to emphasize the individuality of its brands, and break down the monolithic image of GM as the all-seeing, all-rebadging automaker? Wouldn’t a GM “salon” go against the alleged independence of, say, Cadillac? On the other hand, GM does finally have some good products, and can’t afford further erosion in market share in America’s affluent coastal cities. Would it really hurt to showcase them in a prominent setting? It’s a debate that’s surely racking the RenCen at the moment, so why not weigh in before a decision is made. Is this a plain bad idea? Should a variation of the idea move forward, possibly highlighting individual brands in a more targeted manner? Or does GM need a world-class flagship retail outlet in order to manifest itself as a world-class automaker?
Pity the automotive industry. With a minimum three-year lead time for new product development, timing vehicle launches to coincide with appropriate fuel price levels is never easy. Chevy’s Volt, for example, was developed and hyped during the gas price spike of 2008 when it seemed almost anyone would pay a hefty premium to ease some of the pinch at the pump. Now though, with gas prices holding steady at around $3, there’s reason to question whether consumers will flock to unproven, expensive vehicles like the Volt, absent a pressing economic incentive to reduce gas consumption. The Freep takes on this topic today, asking with gas prices so low, will anyone buy a Volt? And this is not mere media hype. Bob Lutz fretted about this possibility last year, when he said
If gasoline stays cheap, then the American public says, “I’m not interested in that; I will keep my Tahoe longer.” It puts us in the industry in a position where we are at war with the customer
This would be a depressingly familiar position for GM to find itself in, especially since it would be a product of The General striving to do something different. Gas prices are slowly beginning to go up again, but there’s no sign that this summer will see the kind of energy price volatility that will have the Volt and Cruze (let alone the Nissan Leaf) flying off dealer lots. Do you see gas prices going up soon? How expensive will gas need to be before Americans see cars like the Volt as a mainstream option? What happens to the Volt if gas prices stay level, or even drop? No only are these intrinsically interesting questions, but there’s also lots of money (including lots of taxpayer money) riding on the outcome. What say you?
It may not be apparent from the cheerful, distracted way in which I load my TTAC contributions with ridiculous jargon, shocking sexual audacity, and repulsive images of the ghetto, but writing an online auto review is actually a rather tightly woven proposition. One has about a thousand words, give or take a few, in which to convey the essence of a vehicle which has cost hundreds of millions of dollars to develop. There is usually so much data in the press materials that a simple Cliffs Notes version of that data would run to double the permitted review length.
That’s not all. Everybody has access to those materials, so one must be careful to save some room with which to convey accurate, personalized driving impressions. Speaking frankly, there are only three differences between the average denim journOrca (just made that up) and your humble author: I can drive a vehicle beyond four-tenths, I fit in most bucket seats, and I rarely sleep alone at press events. Therefore, in a thousand-word review, I have to set aside a few hundred words to be honest about how the car drives.
You get the point. There’s not a lot of room in the “trunk” of a review. This doesn’t stop most of us in the business from putting junk in that trunk. The “junk” in question consists of vague, uneducated ranting on automotive styling. Click the jump to hear some examples and discuss what should be done.
Cars are rarely built for very long. This is, after all, the industry that invented the concept of planned obsolescence, and ever since GM surpassed Ford in the first half of the 20th Century cars have come and cars have gone. Of course there are a few exceptions. South Africa’s Citi Golf was a 25-year run of slowly-evolved Mk1 VW Golfs. And here’s news of another Volkswagen Methuselah: ChinaCarTimes reports that FAW will build the same Mk2 Jetta it’s been pumping out since 1991 until… 2015. If you could (given the hypothetical resources and market necessary for such a foolhardy venture) start with one car and slowly evolve it for 25 years, what would you start with and why? Are there any modern cars you could see being built for a 25 year run? Me, I’d do for the Lotus Elise what several small British companies did for that other great Lotus, the 7. Not because it would necessarily be easy, cheap or popular, but because it’s a vehicle that will likely never be replicated again, especially with Lotus now aiming for the Ferraris of the world. In 25 years, I’d be shocked if it had any real competition. Or if I ever got bored with it. What about you?
Fewer 16-year-olds are registering for driver’s licenses in Illinois, according to Chicago Breaking News… but why?
[In 2006] Illinois lawmakers doubled the number of hours — to 50 from 25 — of adult-supervised driving required before a driver with a learner’s permit could get a license. The next year, the number of 16-year-olds with licenses dropped by nearly 5 percent — to 74,675 from 78,250 — even though the state’s teen population increased.
Then, on Jan. 1, 2008, Illinois imposed a sweeping overhaul of teen driving laws, the heart of which tripled the length of time — to 9 months from 3 months — a teen driver must possess a learner’s permit before acquiring a license. That year, the number of 16-year-olds with licenses dropped again, this time by 17 percent, to 61,862.
The decrease is continuing. The Illinois secretary of state’s office estimates that fewer than 60,000 driver’s licenses were issued to 16-year-olds in 2009.
The usual economy and internet-based explanations are trotted out, but it seems that mandating supervised driving hours keeps kids out of cars. And though that’s good news for Illinois drivers, it’s certainly not a trend that the auto industry wants to see followed. After all, safety is a box on an option list, not something that reduces demand for cars, right? On the other hand, just because kids aren’t registering for driver’s licenses, doesn’t mean they’re not driving. Should we do away with mandatory supervision to drive the market for cars, or should supervised hours or a more thorough form of mandatory training be instituted? Or, should the legal driving age simply be moved up to 18? Better yet, forget the politics: do you let your 16 year-old drive, and if so how do you prepare them?
From Formula One to Nascar, racing series the world over are coming under pressure from automakers to make their action more relevant to the vehicles available on the market. Meanwhile, these same manufacturers are increasingly challenging each other to obvious marketing set-ups posing as races, the latest example of which is the laughable MINI vs Porsche challenge [above]. With cars becoming increasingly homogenized, racing and motorsport are some of the only ways for marketers to restore some of the automobile’s lost romance… but neither modern race series nor corporate challenges seem to resonate much with consumers. What (if anything) can make racing and performance prowess relevant in the post-Prius marketplace?
The comments on yesterday’s review of the Caprice Classic Estate reminded me how fundamentally deep the Ford-vs-Chevy rivalry is among American auto enthusiasts. Even in the modern era, when both iconic brands are on the run from Toyota, Hyundai, and (soon) the Chinese, there’s still time to catch one’s breath and take a swing at the other guy.
So. The “Panther” platform is scheduled for termination within the next year or so. The General Motors B-body departed nearly a decade and a half ago. There will likely never be another American car of the size and proportions of those two. Which was your favorite? My thoughts, and a link to a credible source, after the jump.
To be perfectly honest, I wrote about half a post on GM’s decision to give Detroit Tigers pitcher Armando Galarraga a new Corvette after he was robbed of a perfect game by a bad call, before deciding not to run it. Why? Well, the story is classic Detroit: Galarraga’s victimhood is exactly the image GM would like to associate itself with (remember, everything was going fine before the credit markets collapsed), and The General owed the Tigers anyway because of owner Mike Ilitch’s decision to not charge GM for ad space on the stadium’s fountain when it was in bankruptcy (Ilitch added free Ford and Chrysler ads in the interest of fairness). In short, there was plenty of room for some trademark TTAC cynicism… and yet I couldn’t quite bring myself to twist the knife.

At this risk of stating the supremely obvious, we’re not enjoying a lighter-than-usual workload today in order to remember cars. The sacrifices of America’s warriors are the reason for remembrance today, as we reflect on the wrenching experiences that allow our flawed-but-wonderful experiment in democracy and capitalism to persist. But memory is a funny thing. Once you start looking back at through the jumbled scrapbook of past experience, unexpected artifacts come looming out of the fog.
My earliest memories of America at war, during Operations Desert Shield and Desert Storm, remain strong: the yellow ribbons sprouting up like weeds, the menacing strangeness of terms like “Scud Missile,” the wail of Israeli air raid sirens broadcast into my family’s bastion of suburban privilege. Still a young child at the time, these memories mark a growing awareness of the world around me, and yet the memories that feature most prominently in my mind from that period are the comfortingly familiar ones. The smell of pine trees baking in the hot sun at summer camp. The taste of blackberries. The creak of swing axles, and the bucolic brumm of a straight six as the old yellow Ford pickup made its sedate progress towards the dump. Straddling the Hurst shifter and leaning into the curves, goading Dad to make the poor thing backfire while my sister and I screamed in delight.
To this day, nothing in this world reminds me of that or any other period of my life the way sitting in “Old Yellow” does, inhaling the smells of gas and manure, and absorbing every squeak and grumble. It’s a rolling memory machine, a warp-speed express to a world where war was a foreign presence, an atavism of history intruding on our perfect future. Somewhere in everyone’s past there’s a time and place that we can remember only in innocence. If we’re truly lucky, there’s still a vehicle that can take us there. What’s yours?









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