Thursday, March 1, 2012

Just The Facts: February 2012 Car Sales


B Segment
Kia Soul: 10,876
Nissa Versa: 10,190
Chevrolet Sonic: 7,900
Hyundai Accent: 5,806
Ford Fiesta: 5,518
Honda Fit: 4,227
Toyota Yaris: 3,611
Kia Rio: 3,598
Fiat 500: 3,227
Scion xB: 1,606
Scion iQ: 864
Scion xD: 818
Chevrolet Aveo: 17

Continued after the jump

Monday, February 20, 2012

Flex Future in Flux?


I really, really like the Ford Flex. It's daring styling, cavernous, stylish and comfortable interior, and available EcoBoost engine are all true difference makers in the sea-of-beige segment in which it competes. Despite being a thoroughly wonderful crossover, sales never quite lived up to the very lofty (and unrealistic, I might add) expectations. With the Flex's platform-mate Explorer now a home run success, is there room for the funky Flex to stick around?

Full-year sales for 2009 totaled a very respectable 38,717, followed by 34,227 in 2010 and slipping to 27,428 in 2011. Carrying an average transaction price around $40,000, Flex's smaller sales numbers could easily be offset by a more generous profit margin. Ford also has claimed a Flex victory in attracting a very high conquest rates and coastal sales; a perennial trouble spot for the blue oval brand.  

A restyled version of the Flex goes into production next week at Ford's Oakville, Ontario assembly plant alongside the smaller Edge crossover, as well as Lincoln's MKX and MKT. This refreshed Flex should carry through the 2015 model year, but what about after that?

Insiders have been tightlipped about the big wagon's next iteration, but there have been rumors of Flex moving to the same extended wheelbase version of the CD4 platform (2013 Fusion/MKZ and upcoming Edge and MKX will ride on the standard length CD4). This alignment would allow an easier differentiation between Flex and Explorer, allowing Explorer to either continue as part of the D4 program or move onto a different crossover or SUV architecture.

Whatever the case, I would expect Flex sales to rebound this summer once supply of the stylish 2013 model has built up. A proper advertising campaign for Flex could do wonders as well; the current model hasn't seen much spotlight since the vehicle's launch. 

Explorer might be the mainstream, popular choice, but I have a sneaking suspicion that Ford will have no problem selling a high-profit Flex to customers who wouldn't otherwise touch a Ford.

Monday, February 13, 2012

Lost in Translation

We've all seen it: A stunning concept hits the auto show circuit to critical acclaim, only to look awkward and sometimes worse when the production model debuts. Or worse, a sexy production model comes out to show off a brand's new stylistic language, only to have its design elements oddly shoehorned into other existing vehicles. 

A classic example of this is the look pioneered by the 2003 Ford 427 concept. It was an absolute jawdropper when it hit the auto show display stand, and its design was successfully, for the most part, grafted onto the planned-to-be-pedestrian Ford Fusion which launched in 2006. 

The same design was featured on the Edge and Flex, which both worked rather well, but the 2008 Five Hundred, nay, Taurus (it was the 2008 Five Hundred for a few weeks before relaunching as the 2008 Taurus, but you know that story) came off looking downright doofy. 

Great: 2003 Ford 427 Concept

Good: 2006 Ford Fusion

 Not so Good: 2008 Ford Five Hundred / Taurus

Ford suffered a similar fate with the already faltering Lincoln brand after the drool-inducing 2007 MKR concept. The sporty Lincoln was always a blue-sky exercise, but when the buying public showed interest in the dang thing, the monsterous "split wing" look of the concept was hastily spread across the lineup with little success. This is a foible that they are just finally getting around to correcting; using a similar yet more graceful design on new Lincolns going forward. 

 Great: 2007 MKR Concept
Ghastly: Lincoln MKT

You see, just like some women look great with strong facial features and some look like trannys, it all comes down to proportions and execution. Forcing a horizontal, chrome Gillette grille onto the mostly vertically-oriented Five Hundred Taurus didn't work. Grafting the front end treatment of a sporty sedan onto a giant crossover didn't work. 

Plenty of people say "design is subjective", but those people are wrong. Sure, different designs appeal to different people, but there are certain proportions and concepts which appeal to the broadest range of people. Very few designers set out to craft a design that will be favored by 2% of customers. But hey, the Aztek made it to market.


Fast forward to today, and Lexus seems to be stuck in the same spot as Ford a few years back. The Lexus LF-A introduced a much needed shot of adrenaline into the luxobeige lineup, but now one of the "L" supercar's most ungainly design elements is spreading across the range like an STD. 


The LF-A manages to be attractive despite the awkward pinch-like sculpting to the front end. Since it lacks an upper intake the effect is minimized. However, applying the same style to other Lexus models has resulted in what looks like a sci fi movie monster. 

As Lincoln did with their split-wing grille by the time it filtered onto the MKX, Lexus has quickly refined their Predator-esque mug for use on the updated RX crossover. It manages to look more elegant and fitting that the disasterous executions found on the GS and LX, but that isn't saying much. 

It's time to see the end of carbon copy front clips. Lazy designers have simply been scaling up or scaling down the corporate front end for far too long. Luxury makes seem to be the worst offenders, surely some marketing wizard's concept of how to "improve" brand recognition in focus groups. BMW, Lincoln, and now Lexus: You're officially on notice. Let's try to get the creative juices flowing again. 

Thursday, February 9, 2012

Why I Believe in Lincoln



As Lincoln sits at the beginning of the latest in a string of reinvention plans, it's easy to be skeptical. We've seen designs, marketing plans, and executives all change in hopes of invigorating Ford's top-shelf brand. Despite all the previous efforts, the brand has slipped from market leader to also ran. With the announcement of Mercury's execution in 2009, Ford committed to a reimagined, revitalized Lincoln. As the fruits of that commitment are just starting to trickle into the spotlight, plenty of armchair CEO's are quick to pronounce any new Lincoln DOA. 


I like to fancy myself a realist, with perhaps ever-so-slight optimistic pretensions, but I see some solid reasons why this turnaround plan has the juice to succeed where the others didn't. 


Why I Believe in Lincoln:


The Outsiders. 
For the first time perhaps ever, talent has been poached from across the luxury arena to "fix" Lincoln. Every other turnaround was conceived by those already in the Ford system; typically already sucked into the fiefdoms that contaminated the corporate culture and nearly sent Ford into bankruptcy. These aren't "yes" men, these are the people who will keep the brand's plans and expectations planted firmly in the bedrock of reality. 






The Product.
How long has it been since Lincoln had an absolute standout product? The latest crop of Lincolns, while good, haven't gone far enough to distance themselves from their blue oval brethren. Their two high-volume segment entries, the MKZ and MKX, are great products in a vacuum, but share far too much with the Fusion and Edge respectively. Going forward, however, we have affirmations from Ford brass that Lincolns will share little more than platforms with the lesser Fords. As evidenced by the stunning, though not for everyone, MKZ Concept shown last month at the North American International Auto Show, they're serious. After the new MKZ launches with a slew of exclusive features later this year (including a fully retractable glass roof, touchpanel gear selector, and a computerized drive control), we expect a sports-oriented compact crossover and traditional mid-sized utility vehicle. Too many utilities? No. While plenty of luxury segments are fully catered to, these buyers can't seem to get enough crossovers. The trick to building a successful range isn't to look where other makes are strong, it's to look where other makes are weak. BMW has built their empire almost solely on the 3-Series, and rightfully so. It's a great product. What other luxury brand has been able to match BMW's success by imitating their products? The 3-Series is already joined by the C-Class, IS, G, and new ATS in an incredibly crowded segment. The best opportunity for growth in the luxury arena right now exists with crossovers. They're extremely popular, they tend to carry much higher prices than similarly-equipped sedans, and the market isn't saturated yet. MKEscape, Aviator, MKX, Navigator and MKT, paired with the new MKZ, and an MKS-replacing full sized sedan would make for a solid lineup. More solid, in fact, than the range has been in decades. 






The X Factor.
Selling luxury cars, or luxury anything for that matter, is about far more than simply building a great product. Every aspect of shopping for, buying, and maintaining a luxury car must remind the customer that they're getting something special. Lincoln has imposed tough new dealer standards, and having had the chance to experience the new building mandate first hand at Bob Boyd Lincoln of Columbus, I can assure you that this is one aspect they've nailed. The new look is sleek and expressive without being pretentious or stuffy. Lincoln has also spent the last year or so creating exclusive customer "touch points", resulting in the creation of "Lincoln Financial" (instead of lowly Ford Credit) for financing, and separate phone numbers and representatives for customer service issues. Luxury goods find success in the details, and Lincoln finally gets that. 


It isn't a sure bet. Like we saw with Plymouth, Oldsmobile, Mercury, Saturn, Hummer, and Pontiac, sometimes the most sensible thing to do is euthanize a damaged brand. We know now that the idea of killing Lincoln along with Mercury was considered, but Mulally and company decided it was worth fixing. While we've seen other turnarounds before, we've never seen them dedicate the talent and resources they way they are now. The future for Lincoln looks bright, and that's why I believe in Lincoln. 

Wednesday, February 8, 2012

Saturn's Outlook Rides Again

 
It didn't take long after GMC accidentally revealed their refreshed 2013 Acadia crossover late Tuesday night that the internet was abuzz with GM's dirty little secret: The new GMC Acadia is, in effect, the old Saturn Outlook. 

Sure, a Terrain-, or even Granite-esque front end has been grafted on and the interior has improved dramatically, but from every angle other than head on the cost-cutting move is obvious. It looks like the Outlook. Now, you can't blame GM for wanting to get some more use out of the expensive tooling which only was used to make Outlooks for two and a half years. 


2013 GMC Acadia, top, and defunct Saturn Outlook, bottom

The finished product looks alright; but I'm not sure the switch to the Outlook's stampings was even necessary. The new front end carries the new GMC DNA respectably, and the new interior looks much better than the one it replaces (although it still looks dated compared to the rest of the segment). Unfortunately, engine performance and fuel economy carry on unchanged, leaving the big crossover vulnerable to less thirsty competitors. 

Had this update debuted for the 2010 or 2011 model year, it would have likely been much more well received. After 6 full years on the market, though, I can't help but think that more needed to be done to keep this one fresh. We'll see when the 2013 Acadia hits lots later this year.

Tuesday, February 7, 2012

Is Buick Overreaching?


For a brief while, Buick seemed to be the post-Bankruptcy success story of "new" GM. Growing amidst the success of the Enclave crossover and re-envisioned LaCrosse sedan, GM's trishield brand was undoubtedly on the upswing.

The excellent Regal sedan, a lightly reworked Opel Insignia, launched to good reviews yet hasn't gained much traction in the entry-lux segment. The Verano, a Cruze-based compact sedan, is just trickling onto dealer lots but hasn't cracked 800 sales in any of the last few months.


In early 2012, Buick debuted the new Encore subcompact crossover which will also be sold in other markets as the Opel Mokka. Encore is stubby at 168.5" long and 69.9" wide, and the few Buick design cues present (namely the headlights, grille, and ventiports) look vastly out of proportion. The only available drivetrain, a 1.4L turbocharged 4 cylinder mated to a 6 speed automatic transmission, should be good for 140 horsepower. Encore shares its Gamma II architecture with Chevy's diminutive Sonic subcompact.

As GM's self-described "Lexus fighter", Buick definitely has large shoes to fill. Is there demand for a Buick the size of a Cruze, or Sonic? Is the Regal's less-than-stellar sales report a conviction of the car, or the concept of a Buick in this segment? Would the money spent developing Verano have been better spent improving the already good Cruze? 


Buick is still nailing what Buick has always nailed: Big, comfortable, conservatively handsome vehicles. The LaCrosse is superb, and the Enclave, though dated, is still quite good. Regal's few shortcomings are mostly rectified by recently announced 2013 model upgrades; adding eAssist mild hybrid technology to the base engine and adding an automatic transmission to the performance-oriented GS trim level. Verano, while virtuous, still doesn't strike me as something which fits with the brand, while creating too much infighting within the Buick showroom. Encore strikes me as misguided at best; a highly compromised product which would fare much better wearing a bowtie. 

I can see some logic behind GM's two-pronged luxury strategy with Buick and Cadillac. What I can't understand is the lack of a cohesive image and mission for each brand. With Verano, and especially Encore, they seem to be throwing whatever they can at the proverbial wall and seeing what sticks. Going forward, Buick and Opel will be developing largely identical products together for use in both lineups. For GM's sake, I hope the future is much more LaCrosse and much less Encore.

Sunday, February 5, 2012

Just The Facts: January 2012 Car Sales

 
B-Segment
Nissa Versa: 9,418
Kia Soul: 8,091
Chevrolet Sonic: 5,712
Hyundai Accent: 4,341
Honda Fit: 3,839
Ford Fiesta: 3,502
Toyota Yaris: 3,010
Kia Rio: 2,596
Fiat 500: 1,911
Scion xB: 1,200
Scion xD: 652
Chevrolet Aveo: 16

C-Segment

Honda Civic: 21,883
Toyota Corolla: 17,988
Chevrolet Cruze: 15,049
Ford Focus: 14,400
VW Jetta: 10,962
Hyundai Elantra: 10,900
Nissan Sentra: 7,066
Kia Forte: 4,417
Scion tC: 1,309
Dodge Caliber: 1,149
Buick Verano: 795

C/D-Segment:
Toyota Camry: 28,295
Nissan Altima: 22,357
Chevrolet Malibu: 14,676
Hyundai Sonata: 14,489
Honda Accord: 13,659
Ford Fusion: 13,614
Kia Optima: 8,814
Chrysler 200: 7,007
VW Passat: 6,318
Dodge Avenger: 5,697
Buick Regal: 1,855
VW CC: 1,415

D-Segmnet
Chevrolet Impala: 16,009
Dodge Charger: 5,537
Chrysler 300: 4,960
Buick LaCrosse: 4,013
Nissan Maxima: 4,001
Ford Taurus: 3,447
Toyota Avalon: 3,219
Hyundai Genesis: 2,291
Hyundai Azera: 18