Thursday, December 01, 2005

Who's running these American auto companies?

There are plenty of reasons why Americans are choosing foreign imports over domestic automobiles, in all classes. Let's assume for the moment, however, that two sedans are just about equal in every way, including price. What sways a buyer one way or the other? I'll bet that not many people would consider the name noteworthy. Sure there are famous gaffes of American models in other countries (the Chevy Nova comes to mind), but as long as it's not called the Ford Turdsteamer, what does the name matter? Ah, but it's my contention that it does matter, perhaps more than American auto manufacturers realize, especially for luxury vehicles.

Presenting the Homer!

The following is a list of several American car and SUV models: Avalanche, Aveo, Aviator, Cobalt, Durango, Equinox, Escape, Expedition, Explorer, Focus, Freestyle, Fusion, Impala, LS, Magnum, Malibu, Malibu Maxx, Navigator, Neon, Stratus, Trailblazer, and Zephyr. They aren't all bad, and some seem to really capture the attitude of their respective vehicles. But names like Aveo, Freestyle, Fusion, Malibu (don't forget the Maxx!!), Neon, and Zephyr? Are you kidding me?

What about the popular Japanese and German imports? 3 series, 5 series, C class, M class, G35, FX45, M, TL, RL, MDX, RS, RX, etc. Granted, these are all considered luxury-class cars, but my point should be obvious - no dumb names! I really like Lincoln's new Zephyr, but nobody wants to say, "Hey, I drive a Zephyr!" (Well, okay, I can think of a couple people who might want to say that. :) ) But seriously, especially for that market, what sounds more impressive and prestigious - the Zephyr, or the 335i? The Malibu or the TL? The Durango or the RX 330?

Perception is Everything

It isn't all about bragging, either. Does the Malibu sound like a solid, well-constructed automobile with many of the latest advancements in comfort and engine and transmission technology? Do you get the feeling that the best and brightest worked tirelessly to bring you the Focus? I sure don't. On the other hand, my mental picture and impression is completely the opposite when I think of the G35, or FX45. Two cars could be practically identical, but I would just feel better driving a TL than I would a Malibu Maxx.

I don't mean to imply that a name change alone will revitalize the American auto industry. I do think it would certainly help. And I have to wonder - if the powers that be in American auto companies think names like Malibu (Maxx!!), Fusion, Freestyle, Focus, Neon, Magnum (the rubber jokes alone should have been a glaring red flag), and Zephyr are good ideas, then what other "good ideas" are getting the thumbs up?

5 comments:

Chris said...

Interesting thoughts here. I've never really thought about this from a purely naming perspective. Naming, and branding in general is certainly part of the problem. It can't be the whole problem though. In general, the US automakers just can't seem to match, or even come close to, the level of innovation in either the design or the manufacturing process. Over time, this seems to lead to vehicles that no one wants to drive (either because it's called Zephyr, SS Monte Carlo, etc, or because it's just a tired design, or they just can't produce sweet cars profitably outside of niches [read: Corvette]).

Europe seems to produce cars that are innovative and well engineered and have a sexier brand identity. People within, and outside of Europe want to drive them. Asia is innovative as well, but more on the manufacturing and supply chain efficiency side allowing them to achieve a more favorable cost/quality ratio. With players like this out there, US automakers aren't able export many cars which is part of the game these days if you want to keep up with the Joneses (or the Hondas, Toyotas, etc).

Why can't US keep up then? Is it higher costs? Unions and such? Europe has high people costs, so they deal with that. Is it a slow slippage of innovative ideas over time? If so, what causes that? Arrogance? Is it just poor management? possibly. Is it lame-o names for the vehicles as you posit? most definitely.

Sorry for the stream of consciousness - no time to construct a real theory or argument.

I hope this sends my shares of Teutonic Titwillow skyrocketing!!

Chris said...

I keep blabbering. You ask about if all things are equal between two sedans. I assume you mean all things equal physically about the vehicle.

I think it's impossible to do this just physically. Brands are a very powerful thing. They encompass entire histories and years of perception rolled up into one. Current brand identities for the US big boys sadly aren't too strong right now, and they have a lot of baggage to shed.

Perhaps if you were given two vehicles that were not branded and were not recognizable as their brands, and said one is named the Blaster Master Turd-wrangler, and the other is named the M3, I'd probably go with the latter on name alone, yes.

Wacky Neighbor said...

Naming and perception are important in marketing, cars no different. Interesting to note the names of American trucks that are popular (Ram, Dakota, F150, F250, F350, Canyonero) seem a bit better and American trucks still retain a lot of market share.

Aside from naming, though, the 3 things I think make a difference:

1. Quality, or perception thereof - the best Asian manufacturers are still ahead of American and European manufactureres ... however, European manufacturers have had fairly low reliability ratings over the last several years. Is it a matter of time before it starts impacting their sales?

2. Design - there aren't that many interesting American cars left, really. Sure, there's the Corvette and Viper, maybe the Pontiac Solstice will do something. But by and large, the more interesting new designs have been overseas. At least in the car market. The truck and SUV markets still tend to be run by American makes, but we'll see where that goes.

3. The blending of companies - you have American cars made out of the country, Japanese cars made in the US, multinational corporations owning several brands ... it all runs together in the end. So the problem might not be as essentially "American" as it is with those particular companies. It's not like Kia has some built in naming advantage because it's foreign ... as the Rio, the Sorento (the Paul Sorrento) and the Optima prove.

Josh said...

Yes, the auto industry is one giant incestual orgy as far as ownership and manufacturing go, but that still doesn't really affect the design process of what traditionally are US cars (Chevy, Ford, Dodge, Buick, Lincoln). I just wonder if US companies in general lack the creative juices that the Euros and Asians have. Almost a case in point is the revitalization of Dodge in the mid-90's after Chrysler finally dug in. The whole cab-forward design that was prominent in all their sedans and proved very popular with the American public was, I'm pretty sure, a German idea.

I guess if I had to put a point on it, the affluent, stylish, classy lifestyle of Europe and Japan is very different than it is in America, and I think the styles of luxury automobiles of each country reflect that.

Jaime said...

Actually, you have a point now that I think on it. I actually like the look of the Buick Lacrosse, but I *hate* the name. I'd never thought of it past that but now that you mention it...