THE AUTOEXTREMIST

August 26, 2009

After “Cash for Clunkers,” it’s time to get down to business.

By Peter M. De Lorenzo

(Posted 8/25, 6:00pm) Detroit. Okay, we’ve all had our fun with the “Cash for Clunkers” event (or debacle, depending on which side of the fence you ended up on). Yes, it jump-started sales that weren’t there before, it generated a tremendous amount of buzz, and a lot of eager consumers stepped-up and drove away with new vehicles. That’s all good. Unfortunately, the program didn’t generate the rebate checks back to the dealers who hung their collective asses out in the breeze to make this government-fueled program work, and who are now on the hook for millions, thanks to the gross ineptitude of our remarkably incompetent Washington bureaucrats.

Ladies and gentlemen, your checks are in the mail - hopefully - although as I write this the clunker computer system has crashed yet again, so it’s anyone’s guess at this point as to when these dealers will actually get paid.

But here we are again saddled with a massive hangover after yet another big auto industry sale push/gimmick has come to a close, and the lingering question hovering over everything is where, exactly, will this industry go next?

The short and simple answer for that is that it’s time for this industry to get down to the business of the business. Meaning that sales gimmicks will never be the salvation of this industry over the long term, but designing, engineering and building outstanding products that excel in every measurable way will be.

What? You mean there still is an actual auto business lurking out there somewhere despite the countless distractions, like allowing the creeping (and creepy) “touch-feely” embrace of the social media cess- I mean brain- pool in to help design cars, etc.? Yes, as a matter of fact there is. And just in case some in this business may have forgotten what they’re supposed to be doing, I thought I’d delineate the four primary areas that a car company will have to focus on in order to succeed. (And for the record it’s not Twitter, believe it or not.)

1. Design: The Ultimate Initial Product Differentiator. How a vehicle looks always has been and always will be the Ultimate Initial Product Differentiator. Consumers will prattle on about safety, affordability and fuel efficiency in clinics and focus groups, but they’re not going to go near an unappealing car or truck, no matter how many items on their particular checklists the vehicle might have. And in this burgeoning Green Age, great design is going to become even more important. GM Design demonstrated the importance of appealing design – and convincingly so, too – at last January’s Detroit auto show when they created the sexy Cadillac Converj Concept (dumb name, cool car) on the Chevrolet Volt architecture. And from that very moment the importance of outstanding design in these fuel-efficient times was crystallized for all to see. Intriguing, compelling design – the kind that you can see, feel and touch inside and out – will draw consumers in and differentiate winning products from the also-rans every time, especially with equal technologies under the skin.

(Photos courtesy of GM) The Cadillac Converj Concept.

2. Focused consistency. Along with great design, winners in this business have to be able to employ equal amounts of technical vision and fundamental engineering integrity into their vehicle architectures that result in not only excellent driving machines, but vehicles that will emotionally connect with consumers as well. This requires a fundamental vehicle philosophy on the part of the company, which translates into a very specific way as to how they go about the business of building cars and trucks, and it demands a focused consistency across all disciplines so that the vehicles that emerge from the company not only bristle with imagination and creativity - they exude a confidence and polish in their execution that simply cannot be ignored.

3. Smart marketing. Oh boy, now there’s a mouthful. Marketing is so easy to pontificate about and yet so insanely difficult to do well – at least well enough to move the needle - that it’s no wonder it’s one of the most challenging aspects of this business. And when I refer to marketing I’m talking about advertising and public relations, too, as they’re closely intertwined disciplines that are crucial in honing a company’s image, and to pretend otherwise is just plain foolish. If a company sucks at marketing or at the very least does poorly with it, it can demean or sell short excellent products that deserve much, much better. Usually, however, it turns out to be much worse than that, more akin to watching a slow-motion train wreck between rampant mediocrity and abject stupidity that results in the company’s products getting lost in a swirling maelstrom of negativity that no consumer wants to get within 100 yards of. Or, as we like to say around here: The quintessential definition of Not Good. The short story of automobile marketing is that if it’s smart, a company at least has a chance. If it isn’t? Not. So. Much.

4. Deliver a memorable driving experience. Even though there are hordes of anti-car crusaders out there who firmly believe that the sooner we remove the driver – and the act of driving – from this nation’s transportation equation the better off we’ll be, the driving personality of cars and trucks will remain a crucial component of success in this business for a long, long time to come. It will do an automobile company no good at all if it excels at design and execution yet can’t deliver a pleasing driving experience in the end. Even on the verge of the so-called “Green Revolution,” the physical act of driving and the enduring lure of personal mobility will have to be quenched in the cars and trucks of the future if a manufacturer wants to succeed.

I could also go ahead and list state-of-the-art safety equipment, overall operating efficiency, a seamless dealer experience and being responsive to customers as part of what a manufacturer has to focus on, but I won’t because these items are simply the basic price of admission in order for a manufacturer to compete in today’s automobile business, and if a company isn’t up to speed on them, it’s not even in the game.

After almost a year of hand-wringing, political grandstanding, the bankruptcies (and bailouts) and now, the end of “Cash for Clunkers,” this industry needs to get down to the business of the business.

It can’t simply be about “the deal” if these car companies - especially our domestic manufacturers - want to survive, let alone thrive.

Instead it must be about delivering emotionally compelling designs built on engineering excellence, while executing them with a focused consistency resulting in extraordinary cars and trucks that bristle with vision, creativity and undeniable appeal.

The car companies that get it right will give consumers compelling reasons to consider their vehicles.

And the car companies that get it really right will give consumers compelling reasons to actually buy.

Thanks for listening.

See another live episode of "Autoline After Hours" hosted by Autoline Detroit's John McElroy, with Peter De Lorenzo and friends this Thursday evening, August 27, at 7:00PM EDT at www.autolinedetroit.tv.

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