Showing posts with label opinion. Show all posts
Showing posts with label opinion. Show all posts

Wednesday, October 07, 2009

Gas prices have some who switched to small cars experiencing buyer's remorse, wanting more from econo boxes?

So, I've been reading posts at AutoBlog (linked in title) and The Auto Prophet about American Buyers who switched from traditional large vehicles to smaller vehicles when gas prices spiked who are now experiencing buyer's remorse, wanting more power and space and features.

Now that gas prices are "low" they aren't happy with their Honda Fit, or Toyota Yaris.
Economy cars in the North American market traditionally don't come well equipped, unlike Europe. I know this from shopping around back in 2006 when I bought my Mazda 3.
Also in 2005 when we were getting a coupe for my honey.

So, maybe FoMoCo is going to be in a good position with new Euro offerings coming over the next 18 months? Ford already offers a good amount of technology, with their SYNC system available on Focus and everything above that. And unlike some other economy offerings, Ford offers factory leather, moonroof and other "luxury" options across the line, although good luck finding economy models optioned that way on dealer lots. But that's not really Ford's fault, it's American consumers who dictate what's on the lot. And most Americans don't want to pay over $17k for an "economy car." Not when you can get a nicely equipped mid-size sedan for a little more coin.

Product mix on dealers lots over the next 18 months is going to be interesting to say the least. Now that gas is "cheaper" again will Americans slide back into their old habits? Will SUV and larger vehicle sales start to pick up? And what happens if fuel prices spike again?

I'm not your typical American consumer, I like smaller vehicles, but I want the features you'd find on larger vehicles as well. After owning my Mazda 3 these last couple of years, I wouldn't consider a new vehicle without heated leather seats, a premium sound system and moonroof. And I'm not adverse to paying near the $20k pricepoint for that combination. But will Americans follow that course? And can manufacturers meet the new expectations ?

The new Fiesta and Focus from Europe are capable, well equipped, relatively frugal cars but in Europe consumers expect to pay for that combination. Can American consumers make the leap?

Sunday, July 19, 2009

Back from vacation, getting back to MyFordDreams

I've been on vacation and didn't have Internet access while out on Cape Cod. Sure I could have trudged up to one of many locations with free WiFi, but it was a vacation to get away from everything. But I'm home, and going to be getting back to blogging. I've got some observations and comments based on my vacation and interaction with a lot of very interesting folks.

I don't usually mention what I do in social situations, the Auto Blogging or my day job. But this year there were a lot of situations where friends and aquaintences started talking about cars and the auto industry and I couldn't resist adding my perspective, especially on several important subjects like the "Quality gap perception" and marketing towards the LGBT community.

I like to keep MyFordDreams about the cars and avoid "social issues", god knows I've got flack over the years when I've touched on certain issues. But this years trip opened my eyes and the eyes of those I talked to.

I go to Provincetown at the tip of Cape Cod a couple of times a year with a big group of friends and most of these folks are LGBT folks. And you'd be surprised how many of them are real car enthusiasts. Some of my friends are real gear heads, restoring classic cars and modifying and personalizing their newer cars. Many have brand loyalties based on perceptions of quality and on real life performance. Some LGBT folks buy vehicles based on how community friendly they percieve the company to be.

Some of my friends never knew I write about the industry or of my passion for FoMoCo, but when they found out they wanted to know my opinion on the perception of quality of the "Big 3" versus the competition. I was encouraged that MANY of them knew and appreciated the fact that Ford was the only domestic auto maker that did not take Bailout Money or declare Bankruptcy.

I was talking to one fellow who was a native of Dublin Ireland, now working in Germany, and vacationing on Cape Cod. Our conversation was enlightening, because it was one of those rate moments when I was able to get a European perspective on Ford. His insight on how well Ford does in Europe confirmed what I've known for years, that Ford truly is a global company that can compete market by market with a completely comparable lineup, that in many segments is class leading. His comments on the European view of Ford in the US unfortunately were not as favorable and all too familiar to comments to folks I've known that own Honda/Acura, Volkswagen and other foreign competitors.

Over the next week, I'll try and post some pieces that will flesh out these conversations and hopefully dispell myths on all fronts. Myths like Ford quality is so much worse than that of foreign competition. Myths like Ford is a company that is not LGBT friendly. Myths like all LGBT folks drive Miatas and Mini Coopers.

So, while I've been silent these last 2 weeks, I'm hoping that you'll come back for these and more opinion pieces.

Wednesday, June 17, 2009

Trying to "follow" the Fiesta Movement, but it's sooooo stupid sometimes

Ford's "Fiesta Movement" campaign, is it working? The idea was to get 100 Euro-Spec Fiestas in the hands of "Agents" who will get the car free for six months and help promote the car ahead of the US intro next year. Young "Tech Savy" hip kids who'll jump through hoops and Tweet the hell out of it.

Tweet, FB, YouTube, what ever their choice, they'll use the "Social Networking" sites to generate buzz about the car. And in an effort to "follow" I myself have joined FaceBook, Twitter, YouTube and even LinkedIn to see how they're doing. I "follow" a couple of "agents" on several sites and of course Scott Monty FoMoCo's guru of Social Media on Twitter. But I'm not learning much about the Fiesta at all. I'm seeing cute/funny kids making stupid videos of themselves, sometimes with friends sitting in the cars and giggling. I'm reading reports about "stolen" Fiestas, that weren't really stolen, just impounded because it was parked illegally.
Ocassionally there'll be some video of the kids playing with the SYNC system, but it's never informative in any real substansial way. These "agents" are promoting themselves more than the car. Several are comedians, actors, or just Idiots as in the case of the Brooklyn New York agent.
I tried to have an open mind about the entire thing, I really did, but how many cars are going to be sold because of the "Movement"? Will the 100 agents buy them? Some of these folks didn't even know how to drive a stick shift until they were handed the keys.
Now, to be fair, there are an additional 40 or so press cars that are being assigned to journalists and "Mommie Bloggers" so that they can write about their impressions. Ford is also aparently doing this with the new Hybrid Escape and Fusion, the Mommie Blogger thing anyway.
Does this generate any real buzz? I know I'm a little light headed from watching stupid YouTube videos and reading stupid tweets and blogs, but dizzy doesn't equal buzz.
Well, that's not fair or true, I do know that several Agents have appeared on local TV stations, on morning shows or local news, so I guess there is some buzz to it, but what about the Internet?
I'm not making any friends by writing this and crushing any hopes that Ford would ever let me drive a new car. But let's face it, they weren't going to before this anyway. I'm a man in my 40's who's not interested in putting my mug on YouTube or being someone's dancing bear.

Sunday, June 14, 2009

Does FoMoCo really need to be concerned about the new "leaner" domestic competition?

Pundits and analysts have been saying that Ford Motor Company could be facing tough competition from domestic competitors GM & Chrysler, after they've both done restructuring after bankruptcies and in the case of Chrysler the "alliance" with Fiat. Just my view, but I think they're overstating the case and ignoring the advantages Ford has.
Chrysler isn't merging with or forming an "alliance" with Fiat, the italians are buying the company for next to nothing. And neither company has a reputation for high quality products.
Chrysler's model lineup is growing stale and isn't known as fuel efficient. The Caliber/Patriot/Compass triplets are the most fuel efficient models and are already built as part of an allience with GEM ( partnership of Mitsubishi, Hyundai/Kia, Chrysler and Mercedes ) where engines are cooperatively designed and built. The Caliber triplets are also built on a Mitsubishi Lancer/Outlander platform. When you come to think of it, not many of Chrysler's lineup has been a clean sheet design for quite a while, with the exception of mini-vans trucks and SUVs. The 300/Charger/Chalenger & defunct Magnum are/were all built on a chassis from Merecedes' last generation E-Class. The Sebring/Avenger were built on Mitsubishi platforms (Galant? or Eclipse) The big Sprinter was a Mercedes/Freightliner sourced unit. Wow, other than the above mentioned trucks, SUVs (including Jeep) and Minivans what else did they designe? The Journey? Isn't that based on the Caravan? So, their hopes are pinned on new Fiat platforms?

The earliest any Fiat, more than likely the 500, will get here is 18 months? And then what? New Sebring/Avenger models built on a Fiat platform at least 2 years away? And how will these be better than the Mitsu sourced crap they already have? And what about Hybrids? Other than the electric vans they're building for the Post Office, what does Chrysler have? Fiat doesn't have Hybrid technology, in Europe they rely on small Diesels. And let's not forget Fix It Again Tony.
As I read and commented on the other day, european consumers rank Chrysler and Fiat at the bottom of the scale in quality. So I guess I don't see the "New" Chrysler as being any threat to Ford. Hell, I don't see it being a threat to Kia.


Now, General Motors is another story. They are slashing and burning like a madman with a machette. Selling Hummer, Saab and Saturn, selling huge portions of Opel, killing Pontiac and it's not clear what's to become of Vauxhall. Holden, their Australian subsidiary, seems safe for now and I haven't heard anything about Daewoo either. They've just entered bankruptcy and there's no Fiat waiting in the wings for them. But luckily GM isn't Chrysler. They've got technology and products already in development. We've all heard of the Volt, and they've got Gasoline Direct Fuel Injection engines already in select models and there's talk of smaller Turbo GDI engines in upcoming small cars like the Chevy Cruze. But GM isn't through bankruptcy yet and despite the government's claims that it will be quick and painless GM is much larger.



And despite the big "Hybrid" decals running down the sides of some of their trucks/suvs/cars they don't have a credible Hybrid in place. The "mild" hybrid system that they're canceling in the Malibu is a poor man's substitute for the true Hybrids from Toyota, Ford and Honda.
It's basically a roll start assist system that uses the alternator to get the car moving from a stop and incorporating a start/stop system. "Mild Hybrid" my ass.
General Motors won't take 2 years to get some fresh product out, they will experience delays though. Many products have been put on hold, like the Chevy Cruze, but you can bet that as soon as bunkruptcy is settled they'll be getting programs in gear. But didn't I read at AutoEnthusiasts.net last week that Bob Lutz has said that the Volt is a money loser?
Ford is still losing money, but less each day. Ford is also bringing out fresh models and technologies and that combined with public perception will make the difference.
Yes GM and Ford will always be competing and GM may once again be the top domestic manufacturer. But Ford can settle into second place comfortably and in my opinion it could be less than a decade before Chrysler is either in deep shit or dead.