What Have Auto Manufacturers Learned?
Sales are up. Gas prices are down. Demand for new vehicles continues to stay strong and interest rates remain low. News reports like this one continue to tell us everything is rosy with the auto market as the Chicago Auto Show kicks off this weekend. But amid all the good news, I am curious what the auto manufacturers have learned in recent years.
According to the Wall Street Journal there are not really any new trends in the sales figures. Gas prices drop and the popularity of the SUV market goes sky high. So retailers are still tied tightly to the fuel prices. Hmmm...nothing new.
Leasing is back in popularity, with no money down and "Ultra Low Mileage Plans" available for the consumer that wants to have that dream vehicle but may fall a little short in the pocketbook. Sounds familiar, right?
Recent research on Autotrader.com showed a Cadillac ATS with MSRP of ~$40,000 selling for $29,000 with deep discounts applied from manufacturer and dealer alike. Apparently hitting the projections in the luxury segment still requires some stiff price cuts at the showroom. Equally apparent is the fact that this is less painful than cutting production. Another case of deja vu.
Recent admissions from Honda that they covered up issues with their vehicles for years bear a strong resemblance to decades of GM mismanaging their own mechanical and safety challenges. Only this time it was one of the media darlings from overseas that took the hit.
While technology, safety, and horsepower are at all time highs, it seems to me like the business end of the automobile industry is largely the same as it was prior to bankruptcies, bailouts, and boondoggles we all experienced a few years ago. It is business as usual in the auto industry.
Can someone tell me what have the auto manufacturers learned?
According to the Wall Street Journal there are not really any new trends in the sales figures. Gas prices drop and the popularity of the SUV market goes sky high. So retailers are still tied tightly to the fuel prices. Hmmm...nothing new.
Leasing is back in popularity, with no money down and "Ultra Low Mileage Plans" available for the consumer that wants to have that dream vehicle but may fall a little short in the pocketbook. Sounds familiar, right?
Recent research on Autotrader.com showed a Cadillac ATS with MSRP of ~$40,000 selling for $29,000 with deep discounts applied from manufacturer and dealer alike. Apparently hitting the projections in the luxury segment still requires some stiff price cuts at the showroom. Equally apparent is the fact that this is less painful than cutting production. Another case of deja vu.
Recent admissions from Honda that they covered up issues with their vehicles for years bear a strong resemblance to decades of GM mismanaging their own mechanical and safety challenges. Only this time it was one of the media darlings from overseas that took the hit.
While technology, safety, and horsepower are at all time highs, it seems to me like the business end of the automobile industry is largely the same as it was prior to bankruptcies, bailouts, and boondoggles we all experienced a few years ago. It is business as usual in the auto industry.
Can someone tell me what have the auto manufacturers learned?
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