Detroit's Real Challenge
10-29-2003, 06:33 AM
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Related article on boosting sales of the Big 3:
Detroit's Real Challenge? Selling The Idea of an American Car.
by Peter M. DeLorenzo
Detroit. Following up on GM's Bob Lutz's broadside at the American Magazine Conference in Rancho Mirage, California, a little over one week ago, when he took on the media over their apparent biased coverage against the Detroit automakers - as opposed to the glowing coverage given the Japanese and European automakers - it begs the question, what can Detroit do to convince the American consumer (and the media) that its cars are worth owning again?
We're not talking about something that can be easily overcome or "fixed" with a slick marketing campaign. Detroit is fighting a mindnumbingly depressing formula, one that literally has them by the throat - and it goes roughly like this:
Imports = Good, Detroit = Bad.
And this formula has been ingrained in the American consumer, and subsequently the media, over the last 30 years - much of it deserved.
The enduring belief in this formula is due in large measure to "Detroit" launching an endless series of mediocre products into the market while seemingly ignoring what was taking place in the automotive world around them. While the import manufacturers kept building better and better cars and growing the integrity of their brands, the American car companies were spinning their wheels by generating one largely forgettable car after another, interrupting this constant din of market mediocrity with an occasional hit that would generate staggering profits (the minivan phenomenon, the light truck/SUV explosion, etc.). But every time Detroit stopped to revel in those profits and celebrate their success, a different corner of the market that they took their eye off of would fall under the spell of the imported brands - and then Detroit would find themselves knocked right back on their tails again.
So, it's no wonder that Detroit has to deal with overwhelmingly negative perceptions "out there" in the real world. Every time Detroit has either invented a segment or redefined a segment, an import manufacturer has eventually come along and done it better - and delivered almost bulletproof quality to boot in the process.
And now, Detroit, which has finally seen the light (for the most part) and is preparing to launch a string of all-new vehicles into the market in virtually every possible segment you can think of - is running up against a fog of negative perceptions that seems to hang over every product launch and every media conference that Ford, DaimlerChrysler and General Motors conducts.
So what can Detroit do? And how can they make American cars cool again?
The most obvious thing is to build outstanding products. We've said it many times before, and it should be forever etched in stone by now: It's all about the product, it always has been about the product, and it always will be about the product.
Quality and reliability used to be the basic price of admission for a properly reputable entry into the car business. But that's no longer good enough in this, the most competitive market in automotive history. Now the market demands great product to even get noticed - let alone be successful.
Look at Nissan's Infiniti luxury division. For all intents and purposes it was dead in the water a little over 18 months ago. It was a brand with no direction, no buzz and a sleepy dealer body that had become used to - how shall we say - a "quiet" existence. Now look at them - they not only have new products, they have great new products - featuring bold designs with real attitude and genuine street swagger. They still have their problems (when will they ever figure out what to do with the "Q"?) - but they have literally transformed their image overnight, and their sales are up by double-digit numbers.
So building great, "gotta have" products is all Detroit needs - and then the problem is solved, right?
That seems simple enough, but in Detroit's case, the answer is no.
And therein lies the crux of the problem. After 30 years of mediocrity and after losing generations of buyers to the imported brands - buyers who have never even driven a Detroit car or truck in their lives - Detroit won't be able to snap their fingers and say "Forget the past, we're better now" to an entire country of skeptics and naysayers.
In fact, there is a large group of consumers in the U.S. who now consider Detroit-made cars to be, in a manner of speaking, import brands - in that they're such a foreign concept to so many buyers that they're actually becoming a rarity in certain parts of the country.
Detroit will have to take their fight to the trenches and return to a time-honored cliché in this business - and that is to go after each new customer, one person at a time. It won't be good enough to have "gotta have" cars and trucks - because Detroit is saddled with an additional burden of proof and a legacy of negative perceptions that will require it to dig deeper and sway a disbelieving bunch of consumers who have "show me" written all over them. And that means getting butts in seats - there's no other way of getting around it. Do you wonder why so many manufacturers are staging consumer "ride-and-drives" all over the country? It's because they have found that the best way to generate positive word-of-mouth about their products (still the best form of advertising) is to get people to drive them by providing meaningful seat time. And in this era of constant media clutter bombarding us 24 hours a day - word-of-mouth advertising has become even more crucial.
Detroit will have to fight tooth and nail to convince people to even put them on their shopping lists - let alone get them into the showrooms. So-so reviews in the car magazines, or in newspapers, or on television or the internet won't cut it. If an American car is up against its import competition in a test, it either has to win outright or finish in second by a subjective eyelash.
Detroit not only has to meet or beat its competition in straight, head-to-head shootouts, it needs to take chances by going their own way too. The shift to rear-wheel-drive in some of their volume cars is a perfect example of Detroit not waiting for a market to come to them - but rather striking out in a direction they can call their own.
Detroit can also do well by reestablishing the American-ness in its products - with distinctive designs that boast real attitude and genuine passion - and it needs to do so unapologetically and proudly.
Detroit either has to come out with guns blazing and with class-leading products, or they need to walk away from the particular segment they're coming up short in entirely. There's absolutely no room or tolerance for just being in the game in this market - and no one will make a dime by just showing up.
Despite all of the overwhelmingly negative bleatings that seem to be in vogue in the media these days about Detroit's chances, however - Detroit has more than a shot. As a matter of fact, it has a strong shot to get right back in the thick of the fight.
But it won't be easy.
For Detroit to make its cars become cool again, they will have to build outstanding products that bristle with passion - cars and trucks that exude grittiness, attitude and real presence.
But even more important, consumers "out there" in the real world will have to become enamored with the idea of an American car again.
That's the real challenge facing Detroit, and it's a lot more difficult than coming up with a "gotta have" produ
Detroit's Real Challenge? Selling The Idea of an American Car.
by Peter M. DeLorenzo
Detroit. Following up on GM's Bob Lutz's broadside at the American Magazine Conference in Rancho Mirage, California, a little over one week ago, when he took on the media over their apparent biased coverage against the Detroit automakers - as opposed to the glowing coverage given the Japanese and European automakers - it begs the question, what can Detroit do to convince the American consumer (and the media) that its cars are worth owning again?
We're not talking about something that can be easily overcome or "fixed" with a slick marketing campaign. Detroit is fighting a mindnumbingly depressing formula, one that literally has them by the throat - and it goes roughly like this:
Imports = Good, Detroit = Bad.
And this formula has been ingrained in the American consumer, and subsequently the media, over the last 30 years - much of it deserved.
The enduring belief in this formula is due in large measure to "Detroit" launching an endless series of mediocre products into the market while seemingly ignoring what was taking place in the automotive world around them. While the import manufacturers kept building better and better cars and growing the integrity of their brands, the American car companies were spinning their wheels by generating one largely forgettable car after another, interrupting this constant din of market mediocrity with an occasional hit that would generate staggering profits (the minivan phenomenon, the light truck/SUV explosion, etc.). But every time Detroit stopped to revel in those profits and celebrate their success, a different corner of the market that they took their eye off of would fall under the spell of the imported brands - and then Detroit would find themselves knocked right back on their tails again.
So, it's no wonder that Detroit has to deal with overwhelmingly negative perceptions "out there" in the real world. Every time Detroit has either invented a segment or redefined a segment, an import manufacturer has eventually come along and done it better - and delivered almost bulletproof quality to boot in the process.
And now, Detroit, which has finally seen the light (for the most part) and is preparing to launch a string of all-new vehicles into the market in virtually every possible segment you can think of - is running up against a fog of negative perceptions that seems to hang over every product launch and every media conference that Ford, DaimlerChrysler and General Motors conducts.
So what can Detroit do? And how can they make American cars cool again?
The most obvious thing is to build outstanding products. We've said it many times before, and it should be forever etched in stone by now: It's all about the product, it always has been about the product, and it always will be about the product.
Quality and reliability used to be the basic price of admission for a properly reputable entry into the car business. But that's no longer good enough in this, the most competitive market in automotive history. Now the market demands great product to even get noticed - let alone be successful.
Look at Nissan's Infiniti luxury division. For all intents and purposes it was dead in the water a little over 18 months ago. It was a brand with no direction, no buzz and a sleepy dealer body that had become used to - how shall we say - a "quiet" existence. Now look at them - they not only have new products, they have great new products - featuring bold designs with real attitude and genuine street swagger. They still have their problems (when will they ever figure out what to do with the "Q"?) - but they have literally transformed their image overnight, and their sales are up by double-digit numbers.
So building great, "gotta have" products is all Detroit needs - and then the problem is solved, right?
That seems simple enough, but in Detroit's case, the answer is no.
And therein lies the crux of the problem. After 30 years of mediocrity and after losing generations of buyers to the imported brands - buyers who have never even driven a Detroit car or truck in their lives - Detroit won't be able to snap their fingers and say "Forget the past, we're better now" to an entire country of skeptics and naysayers.
In fact, there is a large group of consumers in the U.S. who now consider Detroit-made cars to be, in a manner of speaking, import brands - in that they're such a foreign concept to so many buyers that they're actually becoming a rarity in certain parts of the country.
Detroit will have to take their fight to the trenches and return to a time-honored cliché in this business - and that is to go after each new customer, one person at a time. It won't be good enough to have "gotta have" cars and trucks - because Detroit is saddled with an additional burden of proof and a legacy of negative perceptions that will require it to dig deeper and sway a disbelieving bunch of consumers who have "show me" written all over them. And that means getting butts in seats - there's no other way of getting around it. Do you wonder why so many manufacturers are staging consumer "ride-and-drives" all over the country? It's because they have found that the best way to generate positive word-of-mouth about their products (still the best form of advertising) is to get people to drive them by providing meaningful seat time. And in this era of constant media clutter bombarding us 24 hours a day - word-of-mouth advertising has become even more crucial.
Detroit will have to fight tooth and nail to convince people to even put them on their shopping lists - let alone get them into the showrooms. So-so reviews in the car magazines, or in newspapers, or on television or the internet won't cut it. If an American car is up against its import competition in a test, it either has to win outright or finish in second by a subjective eyelash.
Detroit not only has to meet or beat its competition in straight, head-to-head shootouts, it needs to take chances by going their own way too. The shift to rear-wheel-drive in some of their volume cars is a perfect example of Detroit not waiting for a market to come to them - but rather striking out in a direction they can call their own.
Detroit can also do well by reestablishing the American-ness in its products - with distinctive designs that boast real attitude and genuine passion - and it needs to do so unapologetically and proudly.
Detroit either has to come out with guns blazing and with class-leading products, or they need to walk away from the particular segment they're coming up short in entirely. There's absolutely no room or tolerance for just being in the game in this market - and no one will make a dime by just showing up.
Despite all of the overwhelmingly negative bleatings that seem to be in vogue in the media these days about Detroit's chances, however - Detroit has more than a shot. As a matter of fact, it has a strong shot to get right back in the thick of the fight.
But it won't be easy.
For Detroit to make its cars become cool again, they will have to build outstanding products that bristle with passion - cars and trucks that exude grittiness, attitude and real presence.
But even more important, consumers "out there" in the real world will have to become enamored with the idea of an American car again.
That's the real challenge facing Detroit, and it's a lot more difficult than coming up with a "gotta have" produ
10-29-2003, 08:00 AM
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"So what can Detroit do? And how can they make American cars cool again?
The most obvious thing is to build outstanding products. We've said it many times before, and it should be forever etched in stone by now: It's all about the product, it always has been about the product, and it always will be about the product."
-------------------
Exactly!
The most obvious thing is to build outstanding products. We've said it many times before, and it should be forever etched in stone by now: It's all about the product, it always has been about the product, and it always will be about the product."
-------------------
Exactly!
10-29-2003, 09:47 AM
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Sure Gavriil, I'd appreciate it if you canmake it a new thread. 
The autoextremist.com site is a great site for a very frank look at the automobile industry. The problem is that now you need a paid subscription to see all the archives articles
The autoextremist.com site is a great site for a very frank look at the automobile industry. The problem is that now you need a paid subscription to see all the archives articles
10-29-2003, 10:26 AM
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Originally posted by kansaiwalker1
Sure Gavriil, I'd appreciate it if you canmake it a new thread.
The autoextremist.com site is a great site for a very frank look at the automobile industry. The problem is that now you need a paid subscription to see all the archives articles
Sure Gavriil, I'd appreciate it if you canmake it a new thread.
The autoextremist.com site is a great site for a very frank look at the automobile industry. The problem is that now you need a paid subscription to see all the archives articles
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