Well, the car of the year awards are now beginning to come in. Motor Trend just announced that the new 2006 Honda Civic won their award from a field of 28 new models for the 2006 model year. The Motor Trend Car of the Year article can be found at this link http://www.motortrend.com/features/112_news051112_car_of_the_year/index.html
The 2006 Motor Trend Car of the Year competition included the following models: Audi A3, BMW 3 Series, Buick Lucerne, Cadillac DTS, Chevrolet Cobalt, Chevrolet HHR, Chevrolet Impala, Dodge Charger, Ford Fusion, Honda Civic, Hyundai Accent, Hyundai Azera, Hyundai Sonata, Infiniti M35/M45, Kia Rio, Lexus GS, Lexus IS, Lincoln Zephyr, Mazda 5, Mazda MX-5, Mercedes-Benz CLS, Mercedes-Benz R-Class, Mercury Milan, Mitsubishi Eclipse GT, Pontiac Solstice, Toyota Avalon, Volkswagen Jetta, and Volkswagen Passat.
Out of this list, our subjective COTY might have been one of the new Hyundai entries – Sonata or Azera. Both are very significant because of what they represent… Hyundai’s rebirth on the American auto scene.
The editorial staff of Motor Trend conducted tests on these 28 new models, “searching for the automobile that best represents exceptional value, superiority in its class, and the most significant development on the new-car scene for 2006.”
Unlike AutoPacific’s (http://www.autopacific.com) annual Vehicle Satisfaction Awards, the Motor Trend Car of the Year Award winner is selected by editors. AutoPacific’s awards are generated based on responses from owners of new cars and light trucks to a national mail survey.
By the middle of 2007, Chrysler-Jeep showrooms will be populated by a befuddling number of quite traditional and Post-Modern SUVs (The Scribe refuses to use that vile “crosso___” term). While currently Chrysler-Jeep dealers have only the Wrangler, Liberty, Grand Cherokee and recently added Commander to worry about, their portfolio of SUVs will nearly double over the next eighteen months or so.
An article in the Saturday, November 19, 2005 Wall Street Journal projects that Toyota may overtake General Motors as the highest selling carmaker in 2006.
While Toyota (Toyota, Lexus, Scion) may not sell more than GM (Chevrolet, Pontiac, GMC, Buick, Cadillac, Hummer, Saturn, Saab) in the United States, it may sell more worldwide. Toyota is concentrating much of its sales expansion in North America where it is pulling sales from General Motors and Ford. GM is bolstering production capacity in China and South America where it sees room for growth where Toyota is not yet strong.
The Wall Street Journal article is one of many recent media reports confirming the results of VehicleVoice research and forecasts by AutoPacific. VehicleVoice research shows a continuing deterioration in General Motors’ (and Ford and Chrysler traditional brands) market share in the United States under the concentrated onslaught of the Japanese Big Three. AutoPacific’s forecast of United States sales shows Toyota, Honda and Nissan increasing market share by adding new assembly capacity and models.
General Motors is getting ready to launch its new GMT900 SUVs. This lineup includes the Chevrolet Tahoe, Chevrolet Suburban, GMC Yukon, GMC Yukon XL, Cadillac Escalade and Cadillac Escalade ESV. The shorter versions will be launched in the 1st Quarter 2006 as 2007 model year vehicles. The long wheelbase Suburban, et. al. will be launched in March or April.
Early reviews of the GMT900 provided in Burbank, California (GM’s California Design Studio) and Warren, Michigan (GM’s Design HQ) prove that the GMT900s are an excellent piece of work. While they do not look too much different from their predecessors, they have wider front and rear track and larger tires and wheels. This gives the GM SUVs a very purposeful stance avoiding the undertired appearance some past GM vehicles have had. At the same time, the more prominent tires and wheels actually make the vehicles look slightly smaller even though they aren’t.
Lack of Fold Flat 3rd Row a Major Omission
To keep these comments focused on what we want to observe, lets change the order a bit.
The most glaring omission in the GMT900 SUVs is the lack of a 3rd row seat that folds flat into the floor like the Ford Expedition and Lincoln Navigator and now the Ford Explorer and Mercury Mountaineer. The key to the Ford system is the use of an independent rear suspension that allows the rear floor to be dropped several inches providing space for the seat to fold flat. GM’s GMT900 management said they “couldn’t break Ford’s code” and it appeared that they were thinking Ford adopted IRS more for ride and handling than for interior package. WRONG. The key all along was the rear seat package.
The resulting seating package is very similar to the GMT800 SUVs. The seats, when folded, rest on top of the floor obstructing the load area of the vehicle.
GM also claimed their research showed that SUV buyers wanted a power folding 2nd row seat more than they wanted a flat folding, power operated 3rd row seat. According to ex-GM researchers who shall remain anonymous, GM’s research actually showed a strong preference for “a seat like in the Expedition in a body like the Suburban”. The real reason, of course, is investment. The expenditures for the combination of IRS and fold flat 3rd row seat has variously been quoted as $165 million or $300 million. Either number would cause a product planner to pause and clearly these very important features were pipped – not easily.
Fusion Hot Out of the Blocks
Fusion is Ford’s new mid-size sedan and is a very respectable piece of work. It has distinctive styling, a good sized interior and a large trunk. This combination puts Fusion in the hunt to attract buyers of mid-size cars that have been unable to consider a Ford since the demise of the easily forgotten Ford Contour (and who can’t forget its predecessor – the Tempo). For the first time in years, Ford has a competitive mid-size entry worthy of consideration. The first full month of sales for the Ford Fusion was October, 2005. Fusion, right out of the blocks, looks like a surprise winner with slightly over 4,000 units sold.
In a departure from conventional mid-size car marketing, Ford says they are not going after buyers who would consider the high volume Japanese entries like Toyota Camry, Honda Accord and Nissan Altima. Instead, they think they can have a pretty healthy business selling to Mustang owners who are moving into a mid-size sedan after their fling with the most popular sporty coupe on the planet.
Azera Tackles The Best from Japanese Mainstream Brands at a Surprising Value
When Hyundai launches its new Azera (http://www.hyundaiazera.com) entry luxury sedan in Fall 2005 it could have a real winner on its hands. The Azera replaces the XG350 with a much more distinctively styled and believable car. Unlike its blandmobile predecessor, the Azera is distinctive. Maybe it’s not head-turning, but it is an excellent piece of work from a company that is now beginning to reach its stride.
Base priced at about $25,000 you can load an Azera up to about $30,000. That is well below cars that may be considered to be competitors (Hyundai thinks it will compete with the Toyota Avalon and the Nissan Maxima). Azera is fully equipped and features safety equipment usually optional on competitive models. Azera has eight airbags, ABS, active head restraints and electronic stability control standard.
Sales Volume Objective Ambitious
“OK, we have given you this very nice car at a very attractive price,” says Hyundai Motor Company management. “Now, Hyundai Motor America, you can sell twice as many.” This means that HMA is expected to sell well over 30,000 units of the Azera and HMC would not be disappointed if they hit 40,000 units. The value proposition is there, the car is pretty darn nice. They just may make 40,000 units.
Riding with the spousette the other day, we were cruising in the blindspot of a Chrysler Pacifica. Even though the Pacifica has been on the road for a few years now, and AutoPacific has had a Pacifica in several research projects, it had never really registered with her.
She asked, “What’s that?” I said, “Well, that’s a Chrysler Pacifica.” “Poor thing,” she responded, “It doesn’t know what it wants to be. It looks like a station wagon, a minivan and maybe a little like an SUV.” “Well, Chrysler used to call it a Sports Tourer
, but now they are trying to call it an SUV,” I observed. Showing her ability to cut to the chase, “Nice try, but it doesn’t appear to be anything special.”
These observations are not too much different from reactions to the Pacifica in research clinics, focus groups and individual interviews with consumers. Even Pacifica owners seem confused about what it is. That Chrysler has been able to sell a respectable number of them (many at a deep discount from its initial pricing) is a testament to Chrysler’s marketing and incentive programs.
Over the years, we have found that American consumers really want a product that they can quickly put into a category. Either it is a minivan or not. Either it is an SUV or not. Begs the question of what folks will think the Mercedes-Benz R-Class Grand Sports Tourer
Hyundai Launches New Alabama Assembly Plant
May 19, 2005, Montgomery, Alabama: AutoPacific attended the opening celebrations for the new Hyundai assembly plant in Montgomery, Alabama on May 19, 2005. This was a great, gala event, complete with a chartered Boeing 747 full of Hyundai executives, Korean press and government officials and featured remarks by no less than George H. W. “Big” Bush, 41st president of the United States! (And yes, the place was swarming with Secret Service, a SWAT Team and even a sniper team on the roof with a Barrett 50-caliber sniper rifle).
It is estimated that no less than 4,000 people were in attendance, including Hyundai and supplier employees. The 98-degree, 100-percent humidity day only dampened the event slightly.
The star of the show wasn’t the party, but rather the assembly plant itself and the commitment it represents.
Lexus Wins AutoPacific 2005 Vehicle Satisfaction Award for Top Brand – Nissan Has Most Wins Overall
“Lexus’ win comes from an especially strong showing by its LS430 Premium Luxury Car and RX330 Luxury Sport Utility. Strong vehicle scores combined with real luxury-level customer handling at Lexus dealerships edges Lexus ahead of other luxury brands like Cadillac, Jaguar, Lincoln, BMW and Mercedes.”
While Lexus won the statistical battle, Nissan won the battle for the most entries winning Vehicle Satisfaction Awards
. In an unprecedented performance, seven Nissan vehicles won VSAs. Often criticized in pure quality surveys where things like fit and finish, wind noise and squeaks and rattles are measured, Nissan products certainly satisfy their owners.
Nissan North America has seven winners this year, tops among the various corporations. Nissan sweeps the pickup categories with wins in both segments. The Nissan Titan takes the Full Size Pickup category and is the top-rated vehicle overall. Completing the pickup sweep is a win by the Frontier in the Compact Pickup category. Nissan Maxima is at the top of the Entry Luxury Car category and also the top-rated car, the Nissan Armada takes the Large SUV category for the second year in a row, Nissan Altima is the winner of the Premium Mid-Size Car category (tied with the new Buick LaCrosse), the Nissan Murano wins the Premium Mid-Size SUV category. The Nissan Quest is in a 3-way tie as the most satisfying Minivan.
Japanese Minivans Win AutoPacific 2005 Minivan Vehicle Satisfaction Award
“In the first ever 3-way tie in AutoPacific Vehicle Satisfaction Award research, the three Japanese brand Minivans are in a dead heat. Owners of Honda Odyssey, Nissan Quest and Toyota Sienna
rate the three Minivans so equally it is difficult to tell them apart. The differences in ratings between the three are usually too close to call. Toyota and Honda owners rate their Minivans ahead on brand reputation, the Nissan is rated more fun to drive and easier to get into and out of. Nissan’s distinctive interior styling rates more strongly among its owners than the more conventional interiors of the Sienna and Odyssey.”
“It’s remarkable that these three Minivans are so close in their owner ratings. They have become similar to Premium Mid-Size Cars where many people feel they have to look at the Toyota Camry, Honda Accord and Nissan Altima when shopping for a Mid-Size Car. In minivans, many people think they have to at least look at the three Japanese-brand Minivans before making a decision. These are vehicles you don’t have to explain to your neighbors when they show up in your driveway.”
“For 2005, at least, American brands are not in the hunt for a Minivan category win.”