Hudson's Blog

Jan 14, 2008 - The Downside of Putting the World on Wheels

As countries develop, they all seem to go through similar stages. These stages may take progress quicker or slower, depending on the country and/or culture, but they all tend to follow a similar pattern. And part of this development encompasses their automotive industry.

Car companies are a sign of an economy's arrival. The US, France, Germany, and the UK all developed their automotive industries beginning in the late 1800s and other regional countries followed. As each economy develops around these car-related businesses, specific automotive needs are found and met. Trucks and buses and luxury cars are among the first. Later comes the car for the masses.

The US developed their first "people's car" as the 1901 Olds but it was the 1908 Ford Model T that really set the global standard for such a vehicle. It was simple and rugged and could carry a family (or livestock) as needed. And it was inexpensive..a key component for a "people's car."

France had their Citroen. England had the Austin Seven. Italy had the Fiat Topolino. Germany had the Volkswagen. Each developing nation brought their idea of the basic car to the market.

In the early 1980s, India started to bloom and basic transportation was needed there. Suzuki of Japan came to India and worked with the local firm Maruti Udyog to produce a knock-off of the Japanese market small car. Maruti's little car was wildly successful in India and 20 years later, about 7 out of 1,000 people in India had a car. While 0.7% of over a billion people is still a large number, a large untapped market still remained.

The global conglomerate made up of Renault and Nissan developed a little car through their Romanian subsidiary just a few years ago. The Dacia Logan introduced basic, reliable, and modern transportation to Eastern Europe in the early part of the 21st century. So well suited to the modern developing world was the Logan that it became an overnight success wherever it was introduced, including India. But the Logan was still priced high for the poorest of markets since the car was designed to be the €5,000 car; quite a bit of money in the Indian economy. 

Indian truck market Tata entered the car field in the 1990s with a compact car called the Indica. It was a luxury car compared to the basic Logan, but Tata had other plans. And after years of planning, Tata finally showed the fruits of their labors last week when the Tata Nano was shown to the public. And throngs of reporters rushed the stage at the car's introduction.

Why would such an extremely basic car with average looks engender such a reaction? Mainly because the Nano was designed to break the Rs 1,000,000 barrier...the equivalent of $2,500!

Nobody expects this little car to take over the world with its 33hp two-cylinder engine and lack of nearly every feature expected in the West. But it is the right car to take over the streets of India. For good and bad.

Global oil supplies are being tapped by all of these emerging automotive markets. China is experiencing amazing growth in car production and sales. India's growth may be slower, but it's still growing at an alarming rate. And adding a basic car, albeit one that gets 50mpg, will put added pressure on the global supply of oil.

It doesn't help that Americans are taxing the world's oil supply with (relatively) gas guzzling six- and eight-cylinder engines while much of the rest of the world is using four-cylinder gas and diesel engines as its primary source of power. It doesn't help when the American people see affordable gas prices as their RIGHT no matter how much they use. And it doesn't help that nobody is really doing anything to stop this demand for oil.

Sure, the next generation of the automotive industry will bring about alternative fuels, but we've been waiting for that to be "right around the corner" since the early 1970s. Car companies have been working on fuel cell vehicles since the 1960s and electric vehicles since before 1900, but we're not going to see these (or any other alternative fueled vehicles) anytime soon. Between necessary infrastructure change for fueling these vehicles that nobody's funding to a significant lack of desire by car and oil companies and government agencies to push these new technologies, we'll be lucky to see any of these new vehicles hitting mass market prices before oil prices reach $200 a barrel...or more.

I want to remove myself from the problem, but I can't afford to. My best move reduce my intake of oil as radically as possible. I hope to have my 100mpg moped available for my daily commute by spring time. On bad weather days and when the seasons change, I'll be back to my 25mpg sedan.

Part of me wants the people of India to enjoy the thrill of driving their own car. Part of me wants Tata to drop the whole Nano project right now to limit the number of potential drivers further eating away at the finite petroleum resources available. I'm torn.

But there are thousands of Indians, right now, anxious to get their hands on their first new car. Many of them ready to bring cash to a Tata dealer for a car that won't be availble until the fall. I'm happy for them...but sad for every car owner (and potential car owner) around the world.

6:00 am | Categories: automotive industry, oldsmobile, ford, model t, citroen, austin, fiat, seven, topolino, volkswagen, suzuki, maruti, tata, renault, nissan, dacia, logan, nano, oil, india Comments (0) | Permalink | Alert Administrator

Add to:

Aug 13, 2007 - The Reports of the Minivan's Death are Greatly Exaggerated

When I was a kid, most families had a station wagon. It was the symbol of family-mindedness. In the days before widespread use (and laws to enforce it) of child safety seats, having a station wagon told people that you had children.

Most wagons held four or five, but the real station wagons held eight or nine. One or two seats in the cargo area of bigger station wagons allowed two or three kids to sit in the “way back.” Some seats faced each other but the way to go was for those seats to face backwards allowing the kids to make faces and hand gestures (like the international symbol for truck drivers to blow their horn) at the rest of the traffic.

Chrysler’s last big wagon ended production in 1978 when their full-sized cars were downsized and offered only as sedans. GM and Ford kept the large wagon after their downsizing efforts in 1976 and 1978, respectively.

Both GM and Ford offered three sizes of wagons in those days. For young families just starting out, GM had the Chevrolet Vega and Pontiac Astre/Sunbird wagons while Ford had the infamous Pinto and Mercury Bobcat. Mid-sized wagons were large enough in those days to offer rear seats as options. But at the top of the heap were the Chevrolet Caprice, Oldsmobile Custom Cruiser, Pontiac Bonneville Safari, Buick LeSabre Estate, Ford LTD, and Mercury Marquis…the big nine-passenger people haulers.

And then the world changed in 1983.

The ailing Chrysler Corporation introduced the “maximum space passenger car.” Advertising called it the “Magic Wagon” and corporate engineering called it the T-115, but everyone knows it as the minivan.

Introduced as the Dodge Caravan and Plymouth Voyager, the minivan turned the marketplace on its ear. It was styled like the full-sized Dodge and Plymouth vans but on a 3/5 scale. Like its larger brethren, the minivans had removable seats in the second and third row for better cargo capacity and a sliding door on the passenger’s side for better access in tight quarters. Like the station wagons it would come to replace, it was based on a car powertrain for better gas mileage, it had relatively compact dimensions so it would fit in a garage, and a low center of gravity for better handling.

Chrysler had an immediate success. The four-cylinder minivans got better gas mileage than the full-sized wagons from GM and Ford while still carrying up to seven passengers. GM and Ford were behind the times.

GM introduced the Chevrolet Astro and GMC Safari while Ford brought out the Ford Aerostar. Instead of being “maximum space passenger cars,” the Big 2 came out with small vans. They were trucks, not cars.

Sales were good for GM and Ford, but not the overwhelming success that the minivans were for Chrysler. Traditionally an “also ran,” Chrysler held more than half of the marketplace for this new type of vehicle even after Toyota, Nissan, Mazda, and Mitsubishi joined the fray.

It took a few years before the other manufacturers actually understood what a minivan was. GM introduced the “dustbuster” minivans in 1989. Nissan and Mercury teamed up to sell the Quest and Villager starting in 1992. Ford followed with the Windstar in 1994. Chrysler had the corner on this market for over ten years before Toyota and Honda actually introduced similar minivans, and still Chrysler held the lead.

Aside from the Toyota Sienna and Honda Odyssey, Chrysler has had no serious competition in this market for nearly a quarter century. This segment sells about a million vehicles a year in North America and three manufacturers make up nearly all of it. Sure GM still makes minivans and Hyundai and Kia have tossed their hats into the ring, but the Dodge Caravan and Chrysler Town & Country remain the best-selling and third best-selling nameplates in this field.

And everyone is proclaiming the death of the minivan.

Minivans have acquired a bad reputation. It’s not because of anything they do poorly, more to the point that they do something well…haul lots of kids. Everyone knows the “soccer mom” label that has been given to the drivers of minivans, and this has gained a negative connotation.

SUVs and, more so, “crossover utility vehicles” have been replacing minivans as the vehicle of choice for parents. These vehicles look more rugged (read: “outdoorsy”) and can have up to three rows of seats. They just fail to have the interior space or handling qualities of minivans. But the neighbors are typically more impressed by an SUV or CUV than a minivan, so utility loses out to prestige.

When people ask about vehicles to recommend, I refuse to name SUVs. Unless you’re going off-road or hauling something, these (typically) truck-based vehicles offer nothing to the average driver aside from bad gas mileage and a higher propensity for bad handling. CUVs only improve the gas mileage and handling slightly. But minivans usually top my list, especially if the person has multiple kids and/or large pets.

If someone takes my recommendation, I’ve done something to convince them of the utility benefits over the “soccer mom” branding. So far, everyone has been more than satisfied with their choices. And when the handymen of the group realize that a full sheet of plywood or drywall will fit inside of many minivans (something that most SUVs or CUVs cannot claim), they’re even happier with their choice.

Concepts by Ford (rejected) and Chrysler (delayed and then approved) became the 1984 Dodge Caravan and Plymouth Voyager. Today, their descendants are still the primary vehicle choice for families.

You can keep your Ford Edge and Chevrolet Equinox and Toyota Highlander and Honda Pilot. I’ll keep my Chrysler Town & Country. And whether I’m hauling kids or adults or plywood or a mattress, I’m sure I’ll be doing it easier and more comfortably than anyone in those newfangled CUVs.

The minivan is NOT dead yet.

11:42 am | Categories: automobiles, automotive industry, buick, buick lesabre, cars, chevrolet, chevrolet astro, chevrolet caprice, chevrolet equinox, chevrolet vega, chrysler corporation, chrysler town, minivans, ford ltd, mercury marquis, toyota sienna, honda odyssey, dodge caravan, plymouth voyager, ford aerostar, chevrolet astro, gmc safari, mitsubishi, mazda Comments (6) | Permalink | Alert Administrator

Add to:

Aug 6, 2007 - Should They Stay or Should They Go?

On one automotive forum that I frequent, there is a discussion of which car brands should be the next to leave the US market. Poster after poster lists their choices and the reasons why they believe each should no longer sell their wares in the US. Most of the opinions are based on biases formed from personal experiences with these brands…some of which are quite out-dated. But it’s an interesting discussion.

My opinion, as a car fanatic, is that more is better than less. I’m an American and proud of it. I wish American manufacturers were not losing market share to the imports, but it’s not, in my opinion, completely undeserved. But I would not want any brands to go away to simply save a domestic brand name (domestic jobs, however, are another topic for another time).

With the Chinese brands knocking at the door, this discussion takes on added fervor. Many of the people involved in this discussion believe that the Chinese are the next wave of automotive competition to beat up the American companies, and I have to agree. Where the Japanese were laughed at just 40 years ago, today they’re among the most admired automotive manufacturers in the world. The Korean brands were in the same boat just 25 years ago and today Hyundai and Kia are respectable names in many parts of the world.

Along with a few Indian companies, Chinese companies are looking to the US for market expansion.

Many people have heard of Chery since they have been in the news for the past few years while they prepare to enter the US market. Today, Chrysler is working with Chery to produce an entry-level Dodge product for the US market. And Chery will take what they learn from Chrysler to become a global brand on their own.

There’s also Nanjing and Shanghai and Great Wall and Geely and a dozen others that are looking across the Pacific. Nanjing owns the MG brand and will, most likely, use that name in its global expansion. Shanghai has been working with Volkswagen and General Motors for a number of years to increase their hold on the Chinese market, but exports aren’t too far away especially since they bought out the Rover side of the former MG Rover company, but need to establish their own brand name (they’re currently using Roewe, almost pronounced “wrong way”) since the Rover name did not come with the package. Great Wall has light trucks and Geely has economy cars and both have eyes on the US market. Brilliance and Wuling and Landwind could be in the next wave as well.

But, from what I’ve seen, none of these companies are ready for the US market quite yet. The Japanese entered the US market with cars too small for American tastes but quickly tailored their products with US buyers in mind…and raised their quality to class-leading levels. The Koreans learned from the mistakes made by the Japanese and brought true entry-level product to the US. Although they made their own mistakes along the way, they were competitive players in just over 25 years from producing their first car (the Japanese took about 40 years. The Chinese seem like they’re on the 20 year plan, which would bring them to a competitive nature in just a few more years.

Once in a while, one of my cars impresses someone. It doesn’t happen very often, but it’s a nice feeling that someone likes your choice of car. The only person who really matters about my choice of car is me. And that’s how it should be with everyone’s choice. The fact that I don’t care for a single guy buying a Ford SuperDuty just to commute to his office doesn’t matter as long as the owner of that big pickup likes his choice. This laissez faire attitude should extend to brand names as well. If Isuzu finds enough buyers for their products, more power to them…it’s a capitalist marketplace. Not too many would be sad to see Isuzu (or Mitsubishi or Suzuki or Buick or Mercury or…) go, but the reduction in choice would be a sad thing.

So here’s hoping that we see a return of Alfa Romeo (discussed for a year or two from now), Citroen and Peugeot (oft-rumored), Fiat, and MG. Perhaps then the Americans can bring back Duesenberg and Packard and Stutz and AMC and Edsel and…

Okay, maybe I've gone a bit too far.

7:50 am | Categories: cars, automobiles, mg, automotive industry, car brands, alfa romeo, nanjing, shanghai, saic, duesenberg, packard, stutz, amc, edsel, suzuki, mitsubishi, buick, mercury, isuzu, great wall, brilliance, peugeot, citroen, fiat, skoda, seat, geely, chery, chrysler, ford Comments (7) | Permalink | Alert Administrator

Add to:

Jul 31, 2007 - Oh, the People You Will Meet!

The September issue of Car and Driver arrived the other day and one particular road test gave me a flashback.

I’ve been working in and around the automotive industry for a number of years and it always amazes me that there is such a wide variety of abilities in the people who are supposed to be the face to the public and the media. There are people who you will go out of your way to see at every event and there are people you will avoid as if your life (and more importantly, your sanity) depended on it. I remember a woman who worked at Honda that everyone spoke of in only the most glowing terms and there were similar people Subaru and Ford. But unfortunately, it’s the people on the other end of the spectrum who you tend to remember the most.

This particular issue of Car and Driver features a test of a Slovakian kit car that looks quite exotic. So exotic, in fact, that I went out of my way to catch a look at one a snap a picture or two.

I was walking around a car show where the K1 Attack was shown. As I walked over, I noticed that someone was being interviewed just in front of the car. The videographer was setting up so I quickly snapped a picture before they were ready for the camera to roll.

As I walked away, the interviewer tried to impress his interviewee by making some disparaging remark about any shmo with a camera, obviously trying to put himself on a plane higher than me. He was obviously younger than me so I was to assume that, unless he had being interviewing people since he was in diapers, I had more experience than him. But because I didn’t have an entourage or a broadcast-quality video camera, I must be one of the unwashed masses. I felt secure enough that I didn’t have to flash the media credentials in my pocket just to make myself feel important.

And because I’m a nice person, I didn’t embarrass this cub reporter in front of his “big interview.”

Now, as I’m reading what I’ve written, I feel like you, the reader, are going to get the wrong idea of me. I love working in this industry. Aside from that rare person, I’ve enjoyed the company of most automotive people (media, PR, and others) that I’ve met along the way. I do not, in any way, want you to think that I think highly of myself, because I don’t.

But when others put me down, I will get a bit defensive.

There’s a pecking order in this industry, and you’re made aware of it quite often. There are precious few people you must bow down to, but you also know that your experience and stature places you on a certain rung of the ladder. Just because you have a cameraman with you doesn’t put you near the top and just because you carry a lowly digital camera doesn’t mean you’re on the ground floor.

If I were to run into you at a car show, I would treat you just as you would treat me. If you’re taking a picture, I will step back and help prevent others from stepping into your frame. But I would hope to have you treat me just the same. When someone acts as if they’re more important than anyone else around them, they’re not going to get any special treatment from me.

I’ve been surprised by the people who are nice to me and sometimes equally surprised by the people who weren’t.

There was a gentleman from a Washington DC TV station. You wouldn’t know him to see him, but if you lived in the area, you would know his voice. We ran into each other a few times and each time he would re-introduce himself as having “an old car and a young wife,” and then proceed to show me a picture of his ’59 Rolls-Royce.

Another car show, another DC personality. I was fighting through a crowd at the New York Auto Show, looking down and trying my best not to step on anyone’s feet, when I caught a glimpse of a name tag. I read “John Harter” and I immediately remembered that I watched his on-air road tests on WJLA. I told him that I watched him every week and he replied by joking that he thought only his mother watched.

I was reporting on an awards ceremony where a rather famous and prolific automotive writer was honored. After I took his picture, I told him that he had authored the first automotive book I was ever given. He is quite the writer so he started to name off some of his most important works, but I just answered no. When I named the book, he laughed and said, “the funny thing is, I don’t remember writing that one.” Apparently, the book had been culled together from various pieces he wrote so he never specifically sat down to write that book, but we had a laugh about it.

These are the people you want to meet. These are the people who make the automotive industry so dynamic and interesting. From the most experienced CEO to most-knowledgeable historian to the private car collector to the budding enthusiast, there’s nothing quite like the automotive world.

I wish I could introduce you to some of the people I’ve met along the way. Some are funny (intentionally or not), some are scholarly, many are respectful, and all add some color to the world. And you can meet some of them on your own; just visit a local car show or cruise night. You’re bound to find some colorful people there. And then you’ll have a few stories of your own to share. I’d love to hear them!

5:54 pm | Categories: cars, car people, people, automobiles, car show, auto show, automotive industry, media, public relations, ford, k1 attack, new york auto show, nyias, john harter, wjla, honda, car and driver, rolls-royce Comments (2) | Permalink | Alert Administrator

Add to:

Jul 16, 2007 - Alone in the Car World

Growing up, I was always into cars. When I was not quite three years old, I could name cars from their headlights or taillights as they passed my parents car at night. I was dragging my parents to the car dealerships every September and October until I was old enough to drive there myself. I've "designed" cars and trucks since I was six even submitting a design to Ford before I was eight.

But it was always just me. My folks thought of cars at merely transportation. Some of my friends liked cars, but none were nearly as fanatical as I was.

I was so starved for automotive companionship that I would talk anyone's ear off if given the chance. I couldn't hold a conversation without it somehow leading to cars. It was the one topic I knew. It was a curse, atleast that's how my parents saw it.

When I was twelve or so, my father sat me down once and told me that I had to find more interests. I liked music although I couldn't play an instrument or hold a note. I liked art but I was far from gifted. Cars were my world.

After my father's brief talking-to, I left his room dejected. He left the room shortly afterward to find me looking into the toilet bowl. "These toilets are very interesting," I told him. He never brought the subject up again.

I met my first automotive professional when I was about thirteen. He was an editor of a car magazine and a friend of my uncle. I knew car salemen but they were salemen, not car people. This was a real, honest-to-gawd car person. And I'm sure he couldn't wait for me to leave that evening. I talked cars for as long as he sat still.

Years passed and I went off to college and graduated. With my degree in hand, I went looking for a job. I sold cars. I worked on cars. I wrote about cars. I worked with many, many people but still couldn't find car people like me. I even joined the Antique Automobile Club of America and found them not to be interested enough in cars for me.

One evening I was watching a show on the A&E network. It ranked the top 10 cars of all time and had the usual suspects such as the Model T and the Beetle. As the show counted off each car, people discussed why this car was so important. Of all the people interviewed, one woman changed my life.

Her name was Beverly Rae Kimes. The caption below her name read "President, Society of Automotive Historians."

What kind of group is the "Society of Automotive Historians," I asked myself. I immediately went on a search to find this group. In the age before widespread use of the internet, I tapped into a friend who was a historian, albeit architectural. She quickly returned with a contact name and address.

At the first meeting, I felt right at home. It didn't matter that I was almost half the age of the next youngest attendee. There was a bond right away. These were my people...REAL car people. After years of searching, I was home.

Whether you're into tuner cars or old American hot rods or diesel trucks, finding people who speak your language is important. Having an outlet where you can explore things you know and things you'd like to know is a must in order to keep growing and keep your interests fresh. That group exists. If you haven't found them yet, keep looking. If you have found them, enjoy every minute.

And if you're lucky, you might fall into a crowd that speaks your language and lives your lifestyle...and earns a living talking and doing just that. I have been so lucky. And I hope you have the same sort of luck!

Keep Motoring!

10:55 am | Categories: car industry, cars, car people, people, auto industry, automobiles, automotive industry Comments (3) | Permalink | Alert Administrator

Add to: