Posts tagged ‘GM’


GM’s Holden to abandon C and D car segments, delivering them on a silver platter to competitors

23.01.2020


Stuart Cowley for Lucire

I haven’t spoken to Holden New Zealand to see if we’re following suit, but as far as Australia’s concerned, 2020 will be the final year for the Astra and Commodore, as Holden transitions to selling only trucks (utes) and SUVs.
   Here we are, with its most competitive C- and D-segment models for a long time, and Holden decides to abandon them.
   New Zealand did briefly chart its own course recently with the Holden Spark, which it secured supply for even after its cancellation in Australia, but it’s unlikely to depart from what’s happening in Australia.
   Beyond the obvious question of ‘What will the cops drive now?’ it’s a sad development for a brand that’s been part of the Australasian motoring landscape for decades, even before 1948 if you count the Holden coachbuilt bodies before the war.
   Holden points to the rise in truck and SUV sales and the decline in passenger car ones, and, unlike Ford, it can’t blame a lack of marketing for them—over here, it’s been fairly consistent in promoting each one of its lines.
   Over in Australia, Holden sales collapsed when domestic production ended, but in New Zealand, where we have no such allegiance to ‘Buy Australian’, I saw some reasonable sales’ figures for the Opel Insignia B-based Commodore. And it is a good car.
   The chief reason, I imagine, is that after GM sold Opel to PSA, which seeks now to merge with FCA, it didn’t really want to buy cars off a competitor. And PSA really didn’t want to be paying royalties off each car it sold back to GM. Basically, the supply chain ain’t what it used to be.
   By 2021, PSA will launch a new Astra based on a platform to be shared with the third-generation Peugeot 308, and Insignia B’s days are numbered, too, as it transitions that to a PSA platform (if PSA doesn’t just cancel it altogether). GM would earn nothing from this 2021 model, so there would be no point going forth with it.
   GM has also killed off the Cruze in Korea, the US and México, leaving Argentina the only country that still makes it, so it wasn’t as though it had anything else in the C-segment that it could bring in to Australasia. Many of its Chinese-market models are on the GEM platform, regarded as too basic for our needs, and there seemed to be little point to getting them complied with our standards or having them engineered for right-hand drive. Basically, there isn’t an alternative.
   This frankly strikes me as all a bit defeatist, not unlike Ford’s decision to kill off all passenger car lines (bar Mustang) in the US a few years ago.
   Toyota will have you know that the C- (Corolla) and D- (Camry) segments are doing quite well for them, and they are quite happy to pick up some conquest sales from the Americans.
   I’m not sure if ‘We’re not doing that well there. Oh well, let’s give up,’ is much of an attitude to adopt when certain segments could reignite as consumer tastes shift. And if one really wanted to compete—if there was a will—then one could.
   What I fear is that GM isn’t Mystic Meg and even though my previous post was in jest, there is a serious point to it: people might wake up to the big frontal areas and poor aerodynamics and high centres of gravity and general irrelevance and inefficiency of the SUV for everyday use. I mean, I still can’t reconcile people complaining that petrol prices are too high while sitting in a stationary SUV with the engine on awaiting someone, anyone, to leave a spot so they can park right outside the shop they wish to go to. While claiming they are concerned about the planet. I have a C-segment car because I do think petrol is expensive. And even if you had an electric-powered SUV, you’re still affected by the laws of physics and your charge won’t go as far if the aerodynamics are poor. I thought we got all these lessons in the 1970s and 1980s.
   Just as I warned that killing Plymouth was a mistake for DaimlerChrysler—because recessions can come and people want budget brands—I question whether becoming the vendor of ‘Australia’s own truck’ is a smart tactic. There are some segments that have a base level of demand, or so I thought.

Of course, this leaves PSA to do the inevitable: launch Opel as a brand in this part of the world.
   Opel CEO Michael Lohscheller said as much when PSA bought the firm, and while his eyes were probably on China, they could apply equally here.
   I realize Opel flopped in Australia when an attempt was made a few years ago, but unlike Australia, Opel has a reasonable history here, with its Kadett GSis and a full line of Vectra As sold in the 1980s and 1990s. Kiwis know that the Opel Vectra and Holden Vectra are part of the same lineage. And I have to wonder if the brand, with its German heritage, would do well here.
   Imagine the scenario where Opel launches here in 2022 with not just Astra and Insignia (because Kiwis love their D-segment wagons, unlike the UK), but with the Crossland X and Grandland X as well.
   They’d have the goodwill of the Astra name (just as GM predicted), and there may be enough Kiwis who have positive impressions of their Vectra As. Even our family one sold recently to a South Islander after my friend, who bought it off me, decided to part ways with it. Mechanics still think highly of the Family II units those cars had.
   And somehow, I think being independent of GM is a good thing in this case—no conflict of interest, no wondering whether Mokka might cannibalize Trax, resulting in stunted marketing.
   The new design language is looking sharp and I think it would find favour among New Zealanders who are currently buying Volkswagens and Škodas. They’d also be a darn sight more reliable, too.
   If you’re thinking the market is too crowded, remember VW didn’t think so when it determined SEAT could have another crack in the late 2010s.
   I can’t be alone in thinking this—certainly Australian media were speculating if Inchcape could bring Opel in to their country this time last year. Who’ll take it on?

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Replacing Po.st with Addtoany, outside of Wordpress

17.01.2020

Some of you will have noticed that Po.st went out of business, so all the Po.st sharing links disappeared from our websites.
   The replacement: addtoany.com offers a similar service without the hassle of header codes. Just customize at their website, grab the code, and insert it where you want it. It’s now on the main Lucire website, Autocade (at least on the desktop version), and this blog (desktop as well). Strangely, the plug-in for Wordpress didn’t work for us, and the HTML code with Javascript is far more practical.
   There are fewer customization options but it’s a remarkably quick and handy way to replace the old code.

Despite providing a sharing gadget, I wonder how much I’ll use one. It’s been seven days since I last Instagrammed and I don’t miss it. Granted, something major happened in my life but organic sharing had been dwindling through 2019, and if their algorithms aren’t providing you with the dopamine hit that you seek, and you’re unlikely to pay for it like a junkie (which is what Facebook wants you to do), then you have to wonder what the point is. It might, like Facebook, just become one of those things one uses for work—and that’s not something I could have predicted even a year ago.
   I see Twitter is introducing features where responses can be limited by the user. The logical outcome of this is Tweets that are directed at limited audience members only, maybe even one-to-one. That looks remarkably like email. And these days I seem to be more productive there than I am on any social network.

With a fresh browser to kick off the year, I surfed to the popular page listing at Autocade. Unsurprisingly, there is some grandfathering going on: the first pages added in 2008 have had more views than the latest pages. That much is logical.
   But if there’s a model line page in the top 10 that wasn’t first authored in 2008, that would be, at least to me, interesting. That honour goes to the 2010-authored page on the Opel Astra J, at over 21,000 views.
   Once upon a time, the Nissan Bluebird (910) page was top among the individual model lines, thanks to a link from Wikipedia. It’s since slipped to third, after the Ford Fiesta Mk VII and Nissan Sunny (B14). The Toyota Corolla (E100) page, once in second place, is now fourth, followed by the E120. The Ford Taunus TC, Taunus 80 and Cortina Mk III are sixth, seventh and ninth respectively—all 2008 pages. The Opel Astra J, coming in at eighth, is an anomaly among the top 10. (The Renault Mégane II finishes the top 10.)
   Something’s driving interest in this model, and I’m very happy it is.

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It took a while: Autocade hits 4,000 models

08.01.2020

The Chinese-market Buick Enclave became Autocade’s 4,000th model today. It wasn’t planned: in fact, I had readied a photograph of the Hyundai Tiburon (RD), expecting that would be the 4,000th. But, as happens with this site, you spot something, and you want that clarified. I haven’t been methodical about Autocade, ever—it has always been about what took my fancy and whether my reference books on the topic were around. (After the move, a few still aren’t, so fans of smog-era US cars may have some waiting before they see those increase in numbers again.)
   Just as I do with each millionth page view, I thought I’d see how the entry numbers had progressed:

December 2009: 1,000 models (21 months to first 1,000)
December 2012: 2,000 models (three years to second 1,000)
December 2014: 3,000 models (two years to third 1,000)
January 2020: 4,000 models (six years and one month to fourth 1,000)

   In other words, these last 1,000 took ages, and I suspect it’s a mixture of busy-ness on other ventures and the fact that a lot of modern cars that get entered aren’t that inspiring.
   When many entries of new models into Autocade are of SUVs, especially Chinese ones that have little to distinguish themselves, then it’s not as fun as adding those models that you’ve had some connection with from your youth. The first 1,000 were easy: I remembered many of the details (cubic capacities and prices, for instance—I am that much of an anorak when it came to stuff from my childhood) and while I still checked with books, they didn’t take that long to write. But how many of us care about the difference between the Honda Pilot and Passport, or the links between the Beijing X3, Changhe Q35, BAIC X35 and Senova Zhixing anyway?
   I imagine that there’s more editing that goes on today, too. When a current model gets entered, you just put the start of production and ‘to date’. But there’s no guarantee we’ll revisit that page when the car ends production; and often there’s no announcement of the cessation anyway. Naturally with more pages on the database, the more time you’ll spend editing and correcting existing content than creating brand-new stuff. China’s massive boom in the late 2000s and most of the 2010s meant a plethora of models got entered, and with the market the way it is there, cannibalization of your own model lines hasn’t struck some car makers as an issue yet.
   There’s also the issue of translation: you want to go to a Chinese resource when writing about Chinese cars, and my literacy hasn’t really kept up with my age.
   A middle-aged man uses, in part, nostalgia to make sense of the car world—I buy Octane and Classic and Sportscar more than Autocar and Car these days—and while it’s easy to understand Kas, Fiestas, Focuses and Mondeos, it’s not as second-nature to utter EcoSport, Puma, Escape and Mustang Mach-E. It is no surprise to see Mercedes-Benz stick with its A, B, C, E and S pecking order, even for its SUVs (prepend GL). The next generation of motorhead will have no such issue: they’re used to these big line-ups and where everything sits.
   I’ll keep building, and there is plenty of exotica that hasn’t been entered. Perhaps between those and the Chinese crossovers, it can remain interesting.

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Posted in cars, China, interests, internet, media, New Zealand, publishing, Wellington | No Comments »


Baojun doesn’t scream ‘premium’ and ‘next-gen tech’ to me

10.10.2019

I have to agree with Yang Jian, managing editor of Automotive News China, that Baojun’s new models ‘obviously’ failed to reverse the brand’s sales’ decline.
   It is obvious given that the vehicles are priced considerably above the previous ones, and despite its next-gen tech, there’s no real alignment with what Baojun stands for.
   There might be a new logo (débuted January 2019) but GM expects that this, the new premium products, and (I would expect) other retail updates would undo nearly nine years of brand equity.
   The associations of Baojun as an entry-level brand run deeply, and the new models are like, if you’ll pardon the analogy and the use of another car group, taking the next Audis and sticking a Škoda badge on them. Except even stylistically, the new Baojuns bear little resemblance to the old ones—they’re that radical a departure.
   I wonder if it would be wiser to keep Baojun exactly where it was, and let it decline, while launching the new models under a more upscale GM brand, even one perceived as ‘foreign’ or ‘joint venture’ by Chinese consumers.
   DaimlerChrysler made the mistake of killing Plymouth when it was surplus to requirements, then found itself without a budget brand when the late 2000s’ recession hit. Chrysler, once the upper-middle marque, had to fill the void.
   There’s a reason companies like GM and Volkswagen have brands spanning the market: they feed buyers into the corporation, and there’s something for everyone.
   And while it’s possible to move brands upscale, creating four lines where the base model prices exceed the highest price you have ever charged for your other base models is just too sudden a shift.

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Another milestone: 16 million page views for Autocade

02.06.2019

Looks like the viewing rate has picked up again for Autocade despite a relative lack of updates over the last six months (in no small part due to our move). Tomorrow it’ll exceed 16 million page views.
   Some of the last few entries have been about filling in gaps: the Renault Clio V is out, yet only entered into the database on May 29; the Singaporean Holden Calais (and corresponding Malaysian Opel Calais) the day after, with Autocade possibly the only website which corrects another well propagated error by Wikipedia on this car; the fifth-generation Toyota RAV4, which made its motor show appearance over a year ago; and the Nissan 180SX of 1989.
   Autocade doesn’t profess to be a complete encyclopædia, since it’s an ongoing, developing work, though it does surprise me where the gaps are sometimes. I often have the photos filed away, but wait till the mood hits. Or, in the present case, waiting till some of my reference books re-emerge as I’m still, three weeks later, living out of boxes.
   As with each million before, here’s a summary of how the traffic has developed:

March 2008: launch
April 2011: 1,000,000 (three years for first million)
March 2012: 2,000,000 (11 months for second million)
May 2013: 3,000,000 (14 months for third million)
January 2014: 4,000,000 (eight months for fourth million)
September 2014: 5,000,000 (eight months for fifth million)
May 2015: 6,000,000 (eight months for sixth million)
October 2015: 7,000,000 (five months for seventh million)
March 2016: 8,000,000 (five months for eighth million)
August 2016: 9,000,000 (five months for ninth million)
February 2017: 10,000,000 (six months for tenth million)
June 2017: 11,000,000 (four months for eleventh million)
January 2018: 12,000,000 (seven months for twelfth million)
May 2018: 13,000,000 (four months for thirteenth million)
September 2018: 14,000,000 (four months for fourteenth million)
February 2019: 15,000,000 (five months for fifteenth million)
June 2019: 16,000,000 (four months for sixteenth million)

   It’s interesting to note that Autocade has had five million more page views since June 2017; yet it took six years (three times as long) to get the site’s first five million. At the time of writing, the database has 3,813 models, an increase of just 32 since the site gained its 15 millionth page view.

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Ford to stop selling passenger cars in the US and Canada, save for Mustang and Focus Active

26.04.2018


The Ford Focus Active: by the turn of the decade, this will be the only four-door passenger car Ford will sell in the US and Canada

In a surprise move, Ford has announced that it will cease selling passenger cars in the US and Canada by the early 2020s, excepting the Mustang and the Focus Active.
   The announcement was actually for ‘North America’ but as Ford of México does a reasonable trade on Figos and Fiestas, it’s hard to see the policy be uniform right across the continent.
   It’s a cost-cutting exercise, designed to save $25,500 million in five years, and trucks and SUVs simply make more money for them. Small cars mean small profits. In fact, car sales lag those of the F-series, Escape and Explorer in the US. Shares have risen on the news.
   That means Americans and Canadians will say goodbye to the Fiesta, Fusion (the four-door sedan counterpart to the Mondeo) and Taurus, the last of which is already superseded in China. If you liked the cooking RS and STs, then too bad. Lincolns are losing money for Ford, too, so maybe the Continental will vanish—given the Fusion is history, the MKZ will follow. That doesn’t leave much in the Lincoln line-up.
   My initial reaction was that the economies of scale would worsen: if you’re not developing for a global market, will development costs be successfully amortized in the same period? We have, however, seen the Japanese do reasonably well with products strictly for the North American market, e.g. certain Acuras and Hondas that are sold only in their neck of the woods. We also know most of the costs of the car are in the platform and architecture, and Ford has shown decent adaptability, particularly with the C519 Focus (the recently released Mk IV).
   Ford says the cuts will come from sales and marketing, engineering and product development, as well as material costs, manufacturing and IT, in that order, according to Automotive News.
   The fact that product development and engineering rank so highly there is worrying to me.
   They’re bandying the word efficiency about a lot, and that always has me worried. That’s the word you used to hear from corporate raiders like Slater Walker. Things can look efficient while they’re being weakened.
   CEO Jim Hackett says he’s feeding the healthy parts of the business, ‘and deal decisively with the parts that destroy value.’
   While it’s true that the crossover, SUV and truck markets are strong, as they are in many parts of the world, I can’t help but think that Ford isn’t preparing itself for tougher future scenarios.
   Energy crises can come unpredictably, for one. Ford was late to the downsizing game in the 1970s because it saw the dollar signs with big cars. By 1977, GM had stolen a real march on Ford. By the turn of the decade, Chrysler was back from the brink with fuel-efficient cars while Ford sailed into the red.
   Chrysler found itself too truck- and SUV-heavy with the recession of the late 2000s, and its entry-level nameplate Plymouth had already vanished, thanks to mismanagement by Daimler earlier in the century.
   While there’s not always a need for a full line—AMC taught us that extending yourself too far isn’t always wise—I wonder if Ford is leaving itself vulnerable.
   Crossovers like the Escape, which might outsell the Fusion, are being beaten in the market-place by the likes of the Toyota RAV4, so it’s not as though Ford is that strong in all the markets it wishes to remain in.
   GM, having pulled out of Europe and Russia, might be in better shape because of its position in China. Ford trails GM when it comes to its Chinese footprint, although it will remain in Europe.
   Ford’s Jim Farley says the company is looking at new types of vehicles that are spacious, versatile and economical, which hopefully will fill the gap should economic surprises surface. Because you need something cheap to hook buyers and get them to the brand. That’s not going to happen if Focus Active is the smallest car in the line-up.
   Ford is likely to have these on global platforms. But that signals to me a real need to remain strong in R&D. Failing that, Ford is looking to partner up with someone, and it may already have an idea who that is.
   I am speculating here, since I don’t have any figures outlining what proportion of revenue is devoted to that area.
   Nevertheless, this sounds like an appeasement of Wall Street.
   That leaves one concern over nameplates. Ford has successfully introduced nameplates over the years because the product was right: Cortina, Mustang, Escort, Capri, Fiesta and Focus among them. But it has also failed by killing nameplates and replacing them with ones that had no real goodwill, such as Five Hundred and Freestyle.
   Whatever Ford has in mind, I hope for their sake that the new product is compelling, as much as the Mustang and Fiesta were when they appeared on the market. Both emerged in the wake of economic recessions, with Ford innovating because it had to.
   In this century, Alan Mulally’s time at Ford had a measured, sensible approach, where you could understand the future. There are question marks over what Hackett has planned, and usually we have some clue what these new products will be four years out. All I know of is that the Ranger will make it to the US again, boosting truck sales, but that’s hardly an innovation. That’s just filling a market niche with familiar product.
   Will Ford do Brasil come up with something that can be sold in both North and South America? Perhaps the next-generation Ecosport?
   There are lessons in history that shouldn’t be ignored, and Ford has one of the most interesting pasts of any car maker. There is, however, a feeling from the announcement that this heralds a time of retrenchment, as its profits fall globally, and net income in the US rising for the first quarter in part due to a lower tax rate.
   Remember, Isuzu also once thought it was a good idea to stop selling passenger cars and focus on SUVs and trucks. And they’re no longer around in North America.

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Posted in business, cars, China, globalization, marketing, USA | 3 Comments »


Fun for car anoraks—till you get to the factual errors

08.07.2017

I bought Steven Parissien’s The Life of the Automobile: a New History of the Motor Car, which started off as a good history. I’m 300-odd pages in now and the mistakes are really worrying. There’s also a shocking lack of editing (one part repeated, albeit in different language, and spelling and grammatical mistakes) in the parts I’ve got to now; it’s as though the editor got tired after the first 10 chapters and stopped caring. But the biggest errors are factual.
   I am astonished to learn, for instance, that Harley Earl was responsible for the concept of the Ford Thunderbird (p. 255), that Triumph TR7 production was transferred to Speke in 1982 (p. 293, though Parissien later contradicts himself with the correct fact), and that John Z. de Lorean was a protégé of Lee Iacocca (p. 309). I really have no idea how, but as far as I know, de Lorean was never at Ford, and he had a Chrysler stint long before Iacocca got there. I also never knew that ‘In 1968 the Toyota Corolla became the first Japanese car to be manufactured in the US’ (p. 314; that was the year it went on sale there, and from memory the Corolla didn’t get built there till the NUMMI deal in the 1980s) or that the Opel Ascona C was also sold as the Opel Vectra (p. 337). The Italian Job was released in 1969, not 1967 (p. 224).
   I am frustrated with this book—and now it makes me wonder if the stuff earlier on, which I know less about, was accurate.
   I can understand an editor not grasping the subject as well as the author but there is less excuse in professional publishing for the other problems. Maybe there are few professional proofreaders left, now that spellchecks have been around for a generation or more. I was prepared to recommend this book even a week ago and tolerated the spelling and grammar, but these factual mistakes are worse than what can be found in Wikipedia, and I often label parts of that site as fiction.

PS. (September 17): How much worse can it get, as I continued through? A lot.
   On p. 320, we get an admission that Parissien was wrong on p. 314: the Honda Accord was the first Japanese-branded car to be made Stateside. At least an earlier error was corrected. But they begin again on p. 321: Parissien claims the V30 Toyota Camry dominated the US mid-size car market (it was never sold outside Japan; he’s thinking of the XV10, or the Japanese-market Scepter, which was badged Camry). Correcting his error on p. 322, the Camry was not specifically targeted at the US; it was Toyota’s attempt to create an efficient car from the ground up, and it was not done in 1980, but 1982 (the 1980 Celica Camry was not sold outside Japan). The Paykan deal was cemented long before George Turnbull got to Iran (p. 324), though local content rose in the 1970s for it to be truly Iranian-made and Parissien might mean the shifting of the engine tooling there, if I’m being generous. There is only one world, not multiple ones (also p. 324), unless Parissien knows something about parallel universes that the rest of us don’t. Surely Chrysler managed to launch its T-115 minivan (Dodge Caravan, Plymouth Voyager) before Renault launched the Espace (p. 330), and the Triumph Acclaim was never called the ‘Ronda’ (p. 334), though its successor was.
   On p. 360, in a single paragraph, Parissien makes several errors. The MG 6 launched as a five-door car, not his claimed four. There is no such thing as the Roewe 150, in China or elsewhere. The MG 3 has five doors and is not a three-door counterpart to the 6. The five-door MG 6 launched not in 2011, but in 2010, and the Magnette name was only used in the UK for the four-door. The founder of Chrysler was Walter Chrysler, not Walther (p. 364). The Lancia Delta only became a Chrysler in the UK and Éire, as far as I know (p. 365), and remained a Lancia in most countries. The Belgian designer is Dirk van Braeckel, not van Braeckl (p. 368); Mercedes-Benz never bought an 18·53 per cent stake in Volkswagen (p. 369); and Citroën’s BX was not the last car in that range to have ‘pneumatic suspension’ (p. 372). The Malibu was not a Saturn, but a Chevrolet (p. 375), and Buick was never sold off (p. 376). The Ford Mondeo did not replace the Telstar in all Asian markets (p. 377), and it shared far more than the ‘windscreen, front doors and rear’ with the Contour and Mystique (in fact, the rear was not shared, though there were common engines, platform, and plenty more). It’s not entirely certain that the US market judged the Contour to be too small (p. 378), but there was a lack of marketing (which would have made an even better story than the one Parissien writes about). Ford subsequently filled the Contour’s niche with the smaller Focus Stateside. The CD338 Fusion was never sold in Australia (also p. 378). Ford never resurrected the Taunus in Germany under Alan Mulally (p. 381)—this invention is incredible. VAZ did follow up the 2101 with something similar after it ended production in 1983 (not 1984, p. 382), viz. the 2105, which was about as similar as one could get to the 2101.
   On p. 384, Parissien claims Acura’s Legend sales were ‘disappointing’, after saying they were ‘beginning to sell rather well’ 50 pp. before. The Hindustan Ambassador was not based on the 1954 Morris Oxford (p. 389): that car was actually the Hindusthan Landmaster. The Ambassador was based on the 1957 Morris Oxford III, and was in production from 1959, not 1958. The Red Flag (or Hongqi) marque was not reborn on an Audi A6 (p. 391), but the marque had been used on a version of the Audi 100 C3 from 1988, and no Hongqi bore an Audi–Chrysler–Hongqi brand name. The Chinese company is Dongfeng, not Dongfen (p. 391), and Parissien’s claim that the Everus was sold in the west (p. 392) is news to me, as I am sure it is to its own management. I’ll stop there for now.

P.PS. (September 18): Some bedtime reading, or should I say error-finding, last night. On p. 394, Toyota and Aston Martin did not jointly develop the Cygnet: Toyota developed the IQ in 2008, and Aston Martin converted that car to become its Cygnet, and ‘hot hatch’ is a very optimistic description for a city car. Toyota did not launch the Cygnet in 2008 as Parissien claims, nor did it have a say in what customers were expected to purchase the Cygnet: it was aimed specifically at existing Aston Martin owners, not ‘Toyota and Aston expected initial demand to be limited to those who already owned an Aston Martin sports car.’ It was certainly no ‘eccentric experiment’ of Toyota, but of Aston Martin. Volvo never made a model called the A40 (p. 395), and I bet Nissan is surprised to find that the original Qashqai was designed ‘at the firm’s Milan design centre’ (p. 397) when it was designed in London. Maserati never launched a Jeep-based SUV called the Kubang (p. 397), but it did have a concept of that name, and the Levante appeared in 2016 after the book was published. There is no such car as the Porsche Cajun, and if Parissien refers to the smaller Porsche crossover, then that is called the Macan, and it has five doors, not the claimed three (p. 397). The Volkswagen New Beetle was not on a Polo platform (p. 399), but a Golf one, as was its successor (though a newer Golf); and Ford would dispute that its Mustang is a sedan (p. 401). If J Mays’s first name is J (as footnoted), then there is no need to refer to him as ‘J. Mays’ (p. 401). The Ford Ka’s name is not derived from StreetKa (p. 402): that was a model spun off from the Ka in 2002; and some would regard the Mk II model was being superior to the Fiat 500 on which it is based (especially as Fiat adopted some of the changes for its own model). I have yet to see a Smart with a Mercedes-Benz three-pointed star or marque anywhere, unlike Parissien who seems to think they are badged Mercedes (p. 403), and a Smart SUV does not exist unless Parissien is reporting again from his parallel universe (p. 403). There is also no such car as the Kia Exclusive (p. 410).

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Posted in cars, design, interests, publishing, UK, USA | 1 Comment »


Selling Opel: what’s good for China is good for General Motors

15.02.2017


Above: The Opel Astra K: on the roster.

I’m not so sure that GM going into talks to sell Opel and Vauxhall to PSA (Peugeot–Citroën) is that big a surprise.
   We obviously hold a lot of nostalgia for these brands, and it’s only right that we perceive GM as selling its family jewels. Opel has made some great cars over the years, and Buick in China and the US, Vauxhall in the UK, and Holden in Australia rely on this division to provide it with product.
   But it wasn’t long ago that I said I foresaw the next Holden Commodore being a four-door booted model based on a Chinese Buick Regal that’s on the same platform. While I’ve been proved wrong with scoop photos and inside information from journalists in the immediate term, longer-term this doesn’t look so far-fetched, in a future where Peugeot owns Opel–Vauxhall and GM has no choice but to consider Chinese sourcing seriously.
   Therefore, GM isn’t thinking that it’s selling off the family jewels, at least the GM where Chinese partner SAIC is overwhelmingly calling the shots.
   What they are thinking is this: ‘We should be able to develop the whole lot in China.’ They weren’t nostalgic over Holden, and they won’t be thrilled with the losses at Opel. It’s willing to sacrifice it to make its own position stronger. We’ve already seen that SAIC has called it quits when it comes to British assembly at Longbridge—that’s now all done back in China.
   There’s been such a massive technology transfer from the US to China over the last few years that Europe is seen as surplus by the folks in Shanghai. They have all the platforms on which they can make products globally. They may even, rightly or wrongly, think that the remaining brands can get them into Europe, even if GM had pulled its Korean-made Chevrolets out of there.
   Holden can be used to westernize the product and the Australians have shown they can do it well.
   I’m not saying I agree with this, as a long-time Opel fan. I was looking forward to the new Commodores coming out of Rüsselsheim. The car looks the business, it’s roughly the size of the recently deleted Ford Falcon (therefore, I’m not sure why people are so upset about its size), and the majority of buyers don’t even know which set of wheels the power’s going to. I’ve got an Astra K coming in a few months at Lucire.
   What you’re going to see is GM basically being a Shanghai-run firm with China supplying global markets and the US operations kept going for their brand cachet.
   In the meantime, a hypothetical PSA-run Opel will continue with the existing plans till the end of these models’ life cycles, then China will become the manufacturing hub for numerous markets.
   SAIC already makes a load of Cadillacs, Buicks and Chevrolets for the domestic market, and they’ll want to pump them out more widely.
   They’ve also shown that they can take new GM platforms and turn them into Roewes—or old GM platforms and turn them into Baojuns.
   PSA, meanwhile, with 14 per cent controlled by Chinese firm Dongfeng, will pursue a strategy of streamlining platforms and be focused more on Europe. It could pay off as cross-town rival Renault has done well with Nissan, Mitsubishi, Samsung, Dacia and AvtoVAZ, but it won’t nearly be as secure. The two French groups have been obsessed with one another for as long as I can remember, for years spending more time rivalling each other than actually coming up with what customers wanted.
   Dongfeng may have to cough up more lolly and it could become a larger shareholder than the Peugeot family or the French government. But will it have the sort of geographical coverage that Renault has?
   That’ll be what PSA will be asking itself, knowing that it’s reasonably strong in China—but also realizing that it hasn’t been clever at creating models that can be sold globally (the current Citroën C6, DS 5LS and the DS 6 among them, sold exclusively in China). Nevertheless, there are savings to be had, though the most obvious fear is that Opel and Vauxhall will go the way of Panhard and Talbot, brands that fell into either Peugeot or Citroën’s hands over the years and become defunct at the expense of the parent companies’. Is there a desire to extend the group’s brand portfolio beyond Peugeot, Citroën, DS, the various Dongfeng lines, and the ex-Hindustan Ambassador?
   The official statement is non-committal enough and gives nothing away: ‘PSA Group and General Motors confirm they are exploring numerous strategic initiatives aiming at improving profitability and operational efficiency, including a potential acquisition of Opel Vauxhall by PSA.
   ‘There can be no assurance that an agreement will be reached.’
   In any case, we always said that SAIC was playing a long game. MG was a toe in the water. GM is the real deal.
   Controlling GM means they can do as they please, and what’s good for China is good for General Motors.

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Why the next Holden Commodore will have a traditional boot

01.12.2016


Above: The Holden Commodore SS-V, facing its last year of manufacture.

The current wisdom appears to be that when the Holden Commodore VF leaves production in 2017, it’ll be replaced by the liftback version of the Opel Insignia B. After all, the only big sedan Ford Australia’s offering in place of the now-defunct Falcon is the liftback version of the Mondeo, a car that’s wider, taller, and with a longer wheelbase than the supposedly larger Falcon. I think the crystal ball-gazers are wrong.
   I could say that the Australian and New Zealand big car buyer is very traditional and would balk at the idea of the big Holden being a hatch. But that’s not the only reason. There’s a bigger one: China.


Above: GM currently makes the Opel Insignia A-based Buick Regal in China, after initially beginning with German production.

   At the moment, China makes a version of the Opel Insignia A locally, and it’s a four-door sedan with a traditional boot. They badge it as a Buick Regal, a nameplate that’s arguably got stronger goodwill in the Middle Kingdom than in the US, even if it’s been running Stateside since Kojak drove it on the streets of Manhattan. And the Chinese like their traditional sedans: it’s a market where liftbacks aren’t kosher.
   While Holden says the next Commodore will be sourced from Germany, and the media speculate that the Germans won’t get a four-door sedan, it’s not to say that one hasn’t been developed. And we’re not exactly missing precedent for a country to tool up for a body style that isn’t offered domestically. We need look no further than GM itself, which was selling the Opel Antara into Europe, exporting it from Korea, years before the same model was available domestically as a Daewoo.
   While Australia and New Zealand will account for quite tiny numbers, you have to think about where else a Stufenheck Opel Insignia B might sell. How about the Middle East, where it could complement the Chevrolet Malibu and Impala as a sportier counterpart? Or South Africa, which would also welcome right-hand drive? Could China take some as Regals in advance of SAIC–GM tooling up for its own version? It’s all conceivable.
   There’s also a possibility that Holden will start off sourcing the next Commodore from Germany, and switch to Chinese production when the Buick Regal is ready. SAIC owns the majority of its venture with GM these days, and calls the shots. What’s good for General Motors is good for China, as the saying goes. And it could well determine that one of its plants, either in China or in Thailand, where plenty of Australasian-market cars are sourced from, could be the production site of the 2019 or 2020 model. (Korea has been ruled out already, according to The Wall Street Journal.)
   GM has switched sources mid-run before, and happily used the goodwill of German engineering when introducing a vehicle made with cheaper labour. Forty years ago, after selling German Opels for years, it began selling the Opel Isuzu from Japan: it was the Isuzu Gemini, the Japanese counterpart to the Opel Kadett C world car. The following year, 1977, the Opel Isuzu became the Buick/Opel. The Japanese origins were eventually hidden. The 2008 Regal, meanwhile, was originally sourced from Germany until SAIC was ready with its locally made version.
   In this day and age, when global-market Renaults and Fords come from Turkey, Nissans and Suzukis from India, and Fiats and Volkswagens from México, no such name changes will be needed. If the quality is good enough, ‘made in China’ won’t be that strange a concept. No one seems to have much of an opinion, or a stereotype, over ‘made in Thailand’—yet we buy plenty of product from them.
   GM isn’t likely to sleepwalk into this transition as it did pre-GFC. Then, the company was ill-prepared, prepared to splash money around on different platforms. The leaner 2010s GM will want to grab every sale it can, and I don’t think Aussie or Kiwi buyers are going to flock to the showrooms for a Commodore hatch, even if it looks like a Porsche Panamera.
   They won’t necessarily care that the new model is a better handler, with powerful engines, better economy, a lighter weight, and a decent interior. They could notice that shoulder room has gone down a fraction. There’s a certain conservatism to this market, and the idea of a hatchback just might be too foreign for this group.
   And if they can supply it, with the Chinese Buick Regal waiting in the wings, then why not maximize sales?
   When the four-door Commodore débuts in Australia next year, after its début in Genève as the Opel Insignia, the General will again have one over arch-rival Ford when it comes to big cars.

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How can we help those fooled into believing what their local brands are?

06.01.2016

How interesting to see a silly Tweet of mine make the Murdoch Press and lead an opinion column—I’m told it even hit the news.com.au home page.
   It’s a very old joke that I’ve told since 2002, when I walked along Bay Road in Kilbirnie and saw a locksmith sign in Futura. Back then, Dick Smith Electronics had its logotype set in ITC Avant Garde Gothic. I really thought it was a Dick Smith sign at a first, fleeting glance, seeing CKSMITH. The joke was born.
   Most in my social media streams got it except a couple of Australians who had likely come across it via Murdochs a day late, one calling me ignorant (not sure how you can get that from one Tweet), and another ‘ahole’ (is this a misspelling of aloha?). As the funniest guy in their media is John Clarke, who was born in New Zealand, maybe humour doesn’t reach a couple of households there if it has to be imported. And the number of times John’s taken the piss about us, to my thorough enjoyment, means that some of us can take a joke. Perhaps we just have a sense of humour. We have to: it was the only way we could deal with our PM appearing on The Late Show with David Letterman. It is, to quote the man, ‘a bit of banter. No drama.’
   The false indignation “on behalf of others” is always a comical one, because it’s usually founded on a misplaced and unjustified sense of superiority. During a political campaign, they’re the ones I find the most humorous and least authoritative. Thick skin came with that territory.
   Neither deserves a response beyond what I said on Twitter, but the second one (with a fresh new account to troll from, always a good sign of someone who won’t stand by their words) highlights a point that I have made on this blog before.
   “Ruby Pond” notes, ‘The guy is pure Oz and started when you were in nappies and tried! Stick to your foreign companies, they really help Oz.’ I’m not sure what I was tried about, not having been to court while I was in nappies, but maybe she’s depending on the fact that not everyone remembers back to their infancy.
   Well done. She got this from an American-owned newspaper website (remember, Rupert’s no longer an Australian, nor is the HQ in Australia and hasn’t been for a long, long time), and, for the record, I’m not as old as the business that Dick founded. There’s also a suggestion that I must be Australian, because, after all, everyone on the planet must be. No other countries exist. I didn’t want to get into trans-Tasman rivalry in such a situation, nor was it appropriate to give a list of Australian corporate misdeeds in New Zealand. The term off-topic springs to mind.
   I told her, ‘Stick to your foreign media, they really help Oz.’
   Hers is that simplistic thinking that gets people supporting foreign-owned businesses when they believe they are supporting local ones.
   Dick’s been one of my personal heroes since his solo helicopter flight and I’ve been a customer of the chain he founded since I was old enough to buy my own tech gear. Entrepreneurs like him are the ones I’ve always encouraged, through mentoring and through my policies. However, the sad story of the company, no longer owned by Dick, is one of corporate greed—which the founder himself has been critical of. We haven’t learned the lessons of so many economic crises: Gordon Gecko’s mantra of ‘greed is good’ continues to drive the corporate world.
   The reason so many multinationals buy local brands is to fool the public into thinking they’re supporting their own. We’re guilty of it ourselves, and I recall using the examples of Just Juice and most of our local newspapers on this blog. People closed accounts at the National Bank when it became ANZ here, because of a suspicion of, dislike of, or rivalry with Australia, perceiving National to be a local bank. The problem there: ANZ had owned the National Bank for years before the rebranding of its own subsidiary, and prior to that it was part of Lloyds TSB in the UK. A lot of Australians think Ford and Holden are domestic players (though, oddly, not Toyota, which probably builds as many, if not more, cars there), just as many Britons still think they are buying British when they shop at Ford and Vauxhall.
   The situation with news.com.au differs slightly in that that business was started in Australia by Rupert Murdoch’s Dad, and it has grown from there—but the fact remains that its HQ is overseas and that’s where it pays its tax. Help to Australians: not a lot. The Murdoch Press’s globalization agenda won’t be one that the “buy Australian” crowd would support for the most part.
   But this is how brands work, because they encourage us to make mental shortcuts for the products and services we consume. I’ve devoted a good deal of my professional life to it. Some should encourage scrutiny because of the power they have (Wally Olins noted, many years ago, how some brands need to adopt notions that were once reserved for states), and it was hoped that, post-No Logo, we would be more inquisitive about the backgrounds to the organizations we support.
   Even though it’s our money and time, the sad thing is that this level of inquiry remains the province of the few, those people who are willing to scrutinize their own behaviour and practise what they preach. Social media have helped spread news of corporate misbehaviours (Volkswagen will attest to that) and more people are aware; but to counter that we get more information than we ever used to, and unless something resonates, will we just forget it?
   Therefore, it can only be something where people who have done the proper investigation get to have a say. And like all human endeavours, it can be scammed, so safeguards have to be built in.
   One of the reasons the Medinge Group awarded its Brands with a Conscience accolades for close to a decade was to champion the organizations that were getting it right, inviting transparency and scrutiny, championing good corporate citizenship, and engaging in socially responsible programmes. Among them were companies devoted to doing things right by the communities they were present in, whether it was Dilmah Tea, Tata Steel or Hennes & Mauritz.
   By our championing them, selected by a think-tank of leading brand professionals, we would be able to highlight shining examples of branding, as well as give them the sort of boost they deserved. If positive companies could increase their custom, and if positive non-profits could increase their influence, then we can do some good in the world.
   As people rightly want shortcuts in their busy daily lives, then the work at Medinge, if seen as an endorsement, would help them make a decision about whether to deal with that organization or not.
   It’s nice to be in that bubble, which makes me ever-grateful to get reminders that we still have a lot of work to do. If you’re genuinely desirous of helping your own, then we need to help create more ways of reminding people which organizations do just that. The Brands with a Conscience programme was definitely a very good way of doing it. What shall we do, in the post-peak-Facebook world of the second part of this decade, to get word out? Is it through video, thanks to greater bandwidth, that allows us to experience and understand more? Is this the coming of age of some form of virtual reality? Or, as we did when we first started exploring bulletin boards and email, time again for us to reach out to people in communities very foreign and different to ours through video chats—something like Google Hangouts but actually with people? (Yes, I know, Google fans, I was taking the piss.) Is Skype the service on which this can be built?
   I would have said that technology is the great democratizer, and maybe more of us should be giving out awards to truly deserving organizations, voted on by more of the public. But we come across the issue of quality versus quantity again: the Reputation Institute surveyed 60,000 people in 15 countries and still wound up with Nestlé among the most reputable firms in the world. Nestlé may do very good things in some quarters, but it hasn’t been able to avoid a lawsuit by environmental and public interests groups in California over its water-bottling operation there, or accusations by activists who believe the company wants to privatize water at the expense of public health. Volkswagen was there in the 2014 survey. We decide on image, and that image is the very thing that gets us making bad choices.
   The next innovators are already on to it, and we don’t even know that we seek it. But, in order to self-actualize, maybe organizing us—individuals, not corporations—into global communities is the next stage. We have seen Kiva work so positively, so how about making it more interactive? Naturally we will tend to choose to help those in our own countries first—crowdfunding campaigns show us that—but allowing us to understand another human being’s situation could be the challenge in a time when governments pursue their austerity agenda. Somehow, we can restore, at least to some degree, the optimism we had when we in the first world accessed the World Wide Web for the first time.

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