By: Anal_yst
What you, dear reader(s) will notice, is that the Auto sector is one that is very near and dear to my heart, and as so happens, one that is currently in the midst of what we in the industry call a "cyclical downturn" (or, "a boat-load of pain", technically speaking).
So, earlier today, I made my annual journey over to the New York International Auto Show to see what information, if any, I could glean. Lets get a few things out of the way: Obviously Mercedes Benz, BMW, Porsche and other similar Unobtanium (at least for most attendees) were as popular as ever. Our friends from Maranello apparently decided this year that letting the plebes oogle Bella Machina wasn't a very cost effective marketing campaign, and were basically absent (although quasi-rival Lamborghini made an impressive effort...of causing gridlock in the middle of the exhibition floor). Also absent was another maker of beauteous creations, Maserati, was much bemoaned by yours truly, as the Grand Turisimo S is my object of lust (for the moment). Besides such automotive pornography, I tried to focus on the attention and sentiment garnered by vehicles which the average consumer may actually someday purchase, instead of simply dream of. That being said, heres my run-down of The Good, The Bad, and The Ugly.
The Good: Nissan/Infinity
Up front on the main floor, we encountered a large crowd at the Nissan/Infinity display. I figured this was caused mostly by the new GT-R, or the sexy G-37 but upon further investigation it became apparent that the real crowd-pleaser was the new 2009 Maxima. Any casual observer of the Auto world knows that over the past model cycle, Nissan has made tremendous inroads with updated, modern designs across the entire product portfolio, however, with this new update, Nissan seems to have hit the proverbial nail on the head. Great interior, on par, at least, with the Infinity brand with sleek, modern styling, and all the amenities usually reserved for cars costing multiple thousands more. Estimated pricing starting around $28,000 puts it within the reach of most families. My only concern is that the higher trim-level models may cannibalize sales from the low-end of the Infinity G, but with upgrades there as well, I think they have likely mitigated that risk, although results of course remain to be seen.
Bottom line: Nissan, and its luxury brand Infinity are serious and ready to play. From what I saw today, the Domestic "big" 3 can't keep up, and increasingly luxury buyers are considering the Infinity G and M models, although they're still not on the same level as BMW's revered 3-series.
The Bad: Ford
The 1st area we walked through upon entering was Ford's sprawling exhibit, starting out with the "Marque" brand and moving back away from the entrance through Volvo, Jaguar, and Rover, the last two of which now find themselves under different ownership (thank god). Land Rover, Jag all looked good - not spectacular (not even the new Jag XF, but thats a far longer commentary) - just good. Volvo continues with aesthetically pleasing design, under-powered engines, and ridiculously Swedish safety features, so, in that niche (better than Saab at least!), they're doing ok.
Now, for the Ford-Fords.
In an exhibition center holding probably well over 10,000 people, roughly 14 were perusing the Ford exhibit. I might be rounding down there, but compared to some other manufacturer's displays, most of the ford setup was empty. To their credit, they caused quite a stir with some live-shows which seem to draw an audience, but as soon as they ended and the ruckus died down, it was back to crickets. But it wasn't just the lack of people; it was an over-all feeling of emptiness, a lack of satisfaction that I hadn't felt since god knows when. I'd really like to acknowledge that Ford has made some progress with their styling (both interior and exterior), improved some quality of material issues, and refreshed the product portfolio - and they have - its just that even with all the improvement, the vast majority of their cars fail to elicit any sort of visceral response. A bit of a disclaimer, as someone who grew up in a house full of Mac/Apple computers, I'm not exactly partial to additional Microsoft involvement in my life beyond windows and Excel, but the thought of Microsofty running part of my car - even if its only entertainment systems - scares the living hell out of me.
Bottom line: Jag and Rover are going to TATA (of India), Aston Martin is already (mostly) on its own with Prodive support. Hopefully now that Ford has (almost totally) shed any remnants of its Premier Auto Group (PAG) aspirations, they can get back to basics and focus on their core competencies (and other fancy consultant-speak). I give them 3-5 years to turn it around, otherwise, the Ford Motor Company will, mark my words, cease to exist as an independent entity.
The Ugly: Chrysler
Bob Nardelli and Jim Press have their work cut out for them. From a product standpoint, the Chrysler brand was arguably the dullest and least exciting of the show. They introduced zero new cars for this year, with the most recent addition being the fantastically mediocre Aspen SUV from 2+ years ago. Jeep and Dodge didn't look terrible, although there is plenty of room for improvement at each.
I, like many others, have kept up with the rhetoric spat out by Nardelli, Press, etc, that as a private company Chrysler, LLC will be more nimble than its public competitors, that they're a "differen't kind" of automotive company. While that's all well and good, these plans and improvements have clearly yet to reach fruition. Yes, eliminating the number of different models offered was a good start. Now, how about, oh, I dunno, offering some vehicles that people might actually get excited about, the way the 300C demanded a ton of attention when it debuted?
Bottom Line: Actions speak louder than words, even expertly-crafted, MBA words. Nardelli and crew don't have alot of time to figure it out, especially in a cyclical downturn.
Disclosure: Anal_yst does not own shares in any of the companies mentioned. Anal_yst, nor 1-2 Knockout or its representatives do not recommend investing in any particular company or any investment strategy.
