Monday, February 12, 2007

Domestic vs. Foreign Auto Makers


A Subaru Crankshaft


I regularly watch a weekly TV show called Autoline Detroit.

It's a show about the Automotive Industry from a Detroit Perspective. They usually have guests representing the Detroit Auto Makers or Journalists, pundits on the Industry.

A frequently occurring theme of the show is this assumption:

The general public feels that products made by GM, Ford and Chrysler/Daimler are in some way or other inferior to Japanese and German Products.

The obvious questions are: How did this happen and what can be done about it?

I've owned several Domestic and Foreign Cars over the years. Currently I own a 1994 Mustang GT and a 2006 Saturn Vue (albeit with a Honda drive train), both Domestic.

Speaking for myself, when I look for a car I want something that is Unique to that car.

Something that makes that car different from all the others.

And I don't mean Cosmetically different. It could mean the presence of a Turbocharger, all wheel drive, a DOHC engine, 4 Variable Valves per cylinder, a convertible, or just extra power.

As you can see most of these features represent an engineering or technological feat that maybe the majority of other cars didn't have.

In the Fifties and Sixties, when Detroit Cars were Kings of the Hill (because there was virtually no competition) the emphasis was on style and exterior design.

I remember as a kid in the Sixties waiting with eager anticipation for the September unraveling of the latest Chevrolet Impala, Pontiac Parisienne or Chrysler Imperial. It was big deal then, unlike now.

When the Japanese vehicles arrived they weren't very good.

I know because I owned a 1969 Toyota Corolla and let me tell you, it was a piece of junk.

For those that can remember that far back, I think you'll agree that the early Japanese or even European Cars weren't going to win any design awards, at least not in North America.

The Detroit Manufacturers were not threatened and failed to develop their vehicles. The result was two decades, the Seventies and Eighties, of very forgettable, throw away vehicles.

While the Big Three were fashioning the latest chrome bumpers and superficial accents to the exterior/interior of their cars the Japanese were concentrating their efforts on improving the engineering prowess of their vehicles.

I think the Big Three vastly underestimated the importance of developing and then selling the technology and engineering of their products, while over-emphasising the appearance and unnecessary styling cues.

And in the last 10 years or so I believe that Foreign vehicles, for the most part, are now styled sharper than Domestics. They just look like a cleaner design all around.

When I was shopping for a vehicle in 2003 I was very impressed with Subaru's approach to presenting their vehicles. I think one of their slogan's was "Driven By What's Inside".

In other words they built their cars from the inside out, concentrating on leading edge technology and engineering, not on how pretty their cars looked. They even had a section of their web site describing how they made their Crankshafts! You have to love a company that drools over their own Crankshafts!

I really believe that now the quality of a North American car is equal to that of any car built.

There is no doubt that Ford and GM and Chrysler have the capability to produce an excellent product, after all GM does make the Corvette.

What's killing sales now for "the Big Three" is the perception that the quality is not there and very low trade-in/resale value.

So, how does GM, Chrysler and Ford turn it around? Concentrate on the technology and not on the fashion. Maybe they should talk about their Crankshafts!

Sell the substance, not the style.

But first and foremost, acquire the substance to sell.