The third problem...Passion!

That's passion! Need I say more? The bean counters and account hacks should leave the passion and designing to the experts who do it. Instead of money-managing a design, ask the creative questions on how to make a certain design element more affordable. This cost-cutting mentality and bean-counter driven product development is killing off the American automotive industry. Don't get me wrong, you've got to face the cost development issues, but let the designers work within the boundaries...unbridled. I'm amazed at how many uber-cool cars roll out onto the world stage at International Auto Shows each year, only to see some slashed-up, dumbed-down, mutant of a version when it hits production.

Let's take a look at Apple's iPod. Hey, it's more expensive than the rest...but it's super cool and has a designer element that screams contemporary, modern, sleek, gotta have it! Apple is selling boatloads of them and the consumers are not balking at the higher prices. In fact, Apple sells basic models by the loads too. (Kind of like a sporty car without all the frills...it's the same car, it just doesn't have every option known to man on the purchase order.)

Wait a minute! BAM! It's 1964 again and Ford, er, Lee Iacocca is about to release THE future American icon...Mustang. Everyone who ponied up to the snack stand at the Big Three ball park, got a great deal. Sure, some folks got more cheese and jalapenos on their nachos...but they ALL got nachos. Why? Because of its simple and emotionally charged design. It had PASSION!!

If you have to ask...you can't afford it!

Last post, we discussed the lack of a quality sales experience. Let's take a look at the next one.

2) Lack of affordability

The articles below discuss some of the contributing factors toward the financial woes of the Big Three. After reading these articles, you'll see what I mean about "lack of affordability". It's not about a big rebate at the dealership. No, I'm talking about inherent costs - manufacturing, health care, labor (unions), advertising, etc. The Big Three MUST reduce the costs of building its products - increase affordability. When they start making cars affordable, they will start to thrive in the marketplace.

Check out these articles on some of the financial problems infesting the Big Three. Perhaps it is time for a new solution? This just in...the current approach is NOT working!

Ford

GM

Chrysler

The Big Three...

...reasons why the American automotive industry is in dire straits - meaning lousy sales. We will analyze these over the next several weeks.

Here are my Big Three reasons:

1) Lack of passion
2) Lack of affordability
3) Lack of a quality sales experience

First, let's look at lack of a quality sales experience. Why number three first? In my opinion, it's the easiest to fix.

Just drive into a car dealership and you are liable to find the following sales person. Description: loud/obnoxious, thinks they are funny, doesn't listen, over-eager to sell you, lack of product knowledge, over-eager to sell you, doesn't listen.

Problem: It's not the 70s or 80s anymore. The American automotive industry must stop using old sales models for a modern and entirely different "car-scape".

Solution Premise: What consumers want is straight-forward, to-the-point, don't-waste-my-time experiences. They want sales people who are educated on products - not just focused on sales goals!

Support Experience: Living in Abilene, we recently visited the local Saturn dealership. The young sales person who "wanted to help me" ended up needing way more help...particularly in product knowledge. He told us the new Saturn Sky was like a baby-corvette. Notice, he didn't ask what we thought...he just told us. Next, he said the new four-door - yes, he said four-door - Corvette would hold more people than the Sky, but would be way more expensive. I almost laughed out loud. I walked away feeling cognitively assaulted having heard this man speak. As we drove off in the Sky (review coming soon) my son remarked, "Wow, that guy is selling cars? He doesn't know much about them!"

Solution: The American automotive industry needs to take a good hard look at WHO is selling their cars. You can build a great product, invest in snazzy advertising, but it really comes down to the person-to-person transaction...who's representing the product. That person blows it and you've lost the sale. Wretchedly greedy dealerships and slack sales people with a culture of fattening the profit margins with incredulous "dealer" profit tactics are killing off some great products coming out of Detroit.

Summary: Detroit, revitalize your sales force and dealership experience! There are plenty of talented, educated, and motivated people out there looking for work that is meaningful in nature. Go find them! Hire QUALITY people who want to be a part of the American car renaissance.

Then can all those washed up, worked at 9 dealerships in the last 8 months, unscrupulous sales people or manager hacks! Yep, you heard right - can 'em! (Surely some cut rate furniture store peddling lead-infested garbage from China has openings!)

Welcome to American Car!

I'm a certified car nut...no seriously, certified. The list of cars I've owned over the years reads like an IHOC (International House of Cars) menu. Fiat? Yep. Mazda? Sure. GM? Try Saturn, Chevy, and Pontiac. How about Chrysler and Dodge? You bet. Toss in Audi, Toyota, Jeep, VW and a token Ford and you've got it. That's just the modern vehicles. Let's talk classics - '65, '66, '70 Mustangs, a '72 240Z, a '79 Trans-Am (no mullet) and a '74 Charger. I watch Formula 1, NHRA Drag Racing, Indy cars, American Le Mans, and almost any type of four-wheeled competition. Oh, I can't forget about the salt flats of Bonneville and hot rodding.

I've been out to California and blasted up the Pacific Coast Highway in a Shelby Cobra replica - the Superformance 427 big block variety. I've cruised on Route 66 in New Mexico and downed a juicy green chile cheeseburger and a chocolate shake from the renowned 66 Diner in Albuquerque. I've corner carved in the rolling hills outside of St. Louis, MO, chasing my friend in his Porsche 914. I've sat with my son in 100+ degree heat in Denver, CO watching monstrous 8,000 hp Top Fuel cars blast down the quarter mile. I've been to countless car shows and met some seriously cool car nuts who call themselves the Donut Derelicts - again, California.

If you point to most any car, I can tell you what it is. Actually, I could probably bore you with technical information and perhaps a few other bits of that car's place in automotive history. My specialty area is American Muscle cars from the '60s and '70s. My last resto project was a super sweet '66 Mustang.

So when I say I'm a certified car nut, I truly mean it. And that's why I started this blog...my love for cars. But I'm not just another car guy killing time and taking up internet space with his passion. No, this is something entirely different.

The "Big 3" automakers are in trouble...and I mean big trouble. You don't have to venture far off the automotive journalism path to see it. Slumping sales, massive discounting, the ever-increasing import market share, and multiple-failed sales schemes are poised to drive the big rusty fork in the sinking chest of the American automotive industry - Spartan-style.

Bean counter driven marketing and cost-cutting measures have failed to solve the problem. Outsourcing, rightsizing and almost every other global economic "-sizing" buzzword have failed. So the obvious question is why? Why are we here and how did we get here? It's time for change and I hope this blog will be a positive part of that change - the return, no, the renaissance of the American Car!

- Rich