MotorAlley

Neglected to mention...I chose the Porsche Cayenne S...needed the extra room and AWD for the winter (see garage photo)...and it was the best choice given those requirements. Heard a couple of comments that the Cayenne isn't up to Porsche quality...based on my research, quality was not an issue starting with the 2006 MY forward. Plus...I won't own it past the factory warranty.



It was easily the best handling SUV out there...although it was definitely not, "the best deal/value for the money." The dealership did give me a "great deal." I've had a month in the car now and enjoy it immensely...nothing but good things so far. Still working on getting my I-Phone/I-Pod integration though...Porsche's factory PCM system does not make it easy.

I did look closely at a number of pre-owned (that means "used" in the luxury market) Cayenne but opted for a new vehicle lease.

Enter the Taurus X Limited...I'd read some good reviews of this vehicle so I decided (against the recommendations of others) to try it out.

Submitted a "price quote request" after seeing a "Best Deal" on our trusted Motoralley site and AolAutos.com and after a week of back and forth (without getting a price; complex reasons, makes my brain hurt) decided to just go to the store and drive the car. I did drive it...my recommendation...never drive a 2006 Audi S4 right before you drive the Taurus X. Mind you, the Taurus is a nice ride...leather "trimmed" seats and all wheel drive with a nice 260+ hp engine...but a completely different ride...

It's not fair to compare the two, but I shall anyway. This isn't a fair column. The Taurus is far superior in things I desire but don't have in the 2006 Audi S4...more room, primarily...and gas mileage. Steering is softer, heavier and the seats just don't compare either. Again...don't forget, the S4 cost almost double...so this makes sense. If only I could find the S4 with more room...shoehorn the Audi 4.2l V8 in the Taurus X, tighten the steering, replace seats, etc. Voila. Unfortunately...Audi doesn't build this car.

Mind you, it doesn't mean I don't like the Taurus X...I do...I just don't like it enough...yet. Need to go drive the Cayenne...(does this sound insane...but this is how I shop). Need to decide, definitively whether I want to spend the extra $ to justify better ride/handling. Of course I will go check out a few others as well...

So, the 2006 Audi S4 lease is due (actually way past due). Have been busy with work, life etc. and have started thinking about the next vehicle...



I thought it might be helpful to others to see how an industry insider figures out what car/truck to buy.

My needs? Perhaps a little more space, and a place to put the road and/or mountain bike. My kids are now teenagers...and too large for the backseats of the S4. The next generation S4 will have larger backseats...but I don't want to wait for that vehicle. So, the choices are...a larger Sedan (e.g. Audi A6 or S6, BMW 530 or 550, Mercedes C class, Lexus GS430 etc.) or an SUV (e.g. Ford Explorer, Jeep Grand Cherokee, Audi Q7, Acura MDX, BMW X5, Saturn Outlook).

Where to start? Well...first there's budget. I spoke to Audi and they made a nice offer at low interest rate to get me to "keep" the S4. Audi is trying to avoid a glut of A4/S4 at the auction...they are launching the new A4 and the theory is...too many of the old bodystyle at auction drives down residual values and that equals big losses. More later...

Ever since Bob Nardelli took over, the auto world has been wondering how he will "fix" Chrysler. The two most visible moves? Hiring Toyota sales and marketing executives seems to be the answer.

Let me be the first to say, I'm not sure that this fully addresses Chrysler's need. I know both Jim Press (new co-President) and Deborah Wahl-Meyer (new CMO) are very talented sales and marketing executives. But is that really Chrysler's problem? My $.02 says Chrysler's biggest issues are in engineering and product planning, not sales and marketing. Here's the situation as I see it:

• Dodge/Chrysler need to freshen key products in the line up and launch them successfully (Minivans, trucks, Durango) and improve its powertrains/transmissions.
  
• Chrysler brand needs to move up market (to avoid on-going collisions with Dodge) and lacks the product/powertrains to be an entry level luxury/luxury brand that can compete with Lexus, Infiniti, Acura, BMW, Mercedes, and even Audi; not to mention the dealer service and quality issues
  
• Quality reality and image lag behind the leaders (we used to say it takes 3-5 years for quality improvements to be "accepted" by the market)
  
• Dealer sales and service satisfaction lag behind leaders (note that Toyota does not have good sales satisfaction scores)
  
• Jeep's attempt to re-brand itself beyond an "off road capable" vehicle -- jury still out...personally, I don't like it. Jeep says off-road/4x4 capability, but then, I didn't spend millions on focus groups to prove that this would work. I like it about as much as a Porsche Cayenne SUV...which is...not at all (in all candor...the Cayenne has sold well...for now)
  

Given those challenges, it seems that Chrysler should want to hire some Toyota product planners, engineers and manufacturing people to help the sales/marketing execs. I suspect it's a bit harder to lure them away...the NUMMI people (manufacturing JV with Toyota to make Corollas and Geos...remember Geo???) at GM didn't fare well even though they demonstrated that a Big 3 plan could rival Japanese quality/productivity.

The challenges at Chrysler will be much different than at Toyota/Lexus during the go-go 90s. The Lexus product and launch was practically flawless from a product standpoint. Fantastic V8 and fit/finish with industry standard dealer support...the chance to get it all right the first time...with a management team in Japan that said, "do whatever it takes to become the leader." The Toyota Camry is the gold standard for Sedans...and it's not because of its styling or advertising. It runs like a refrigerator. If you can get the product right...everything gets so much easier. Jim Press was quoted as saying he thinks he can strengthen the dealer group...I don't know...but my guess is that Toyota's dealers are strong because they sell more new units/store than any other franchise in the US...and that's because of products like the Camry, Corolla, Tercel, Prius and Sienna. To me at least, Toyota is an engineering and manufacturing company first and a sales/marketing company second. That explains their success.

As a friend of mine from J. Walter Thompson used to say...there's no amount of advertising/marketing creative and media that will save the Ford Tempo.

Labels: Bob Nardelli, Chrysler, Deborah Wahl-Meyer, Ford Tempo, Jim Press, Porsche Cayenne, Toyota, Toyota Camry, Toyota Sienna, Toyota Tercel

What with GM digging out of a hole and Ford still in the hole, it seemed only a matter of time before DCX felt the brisk winter wind whistling around its financial ankles. Like Ford and GM, Chrysler Group has launched hot new cars and crossovers like the Chrysler 300 and Dodge Caliber but many of its Cars, Trucks and SUVs are not moving as well as originally "programmed." Blame the economy, gas prices or the favorite reason for market share losses, Toyota. It doesn't matter, $1.5 billion in losses in the most recent quarter get your attention. "Domestic" products, especially SUVs and Trucks have gone from cash cows to financial boat anchors. New Sales chief, Steve Landry has his work cut out for him and further production cuts are underway. The problems are deep enough that aggressive discounting is once again front and center.

The cutbacks are underway...from production cuts to supplier cuts and a new aggressive leasing program that carries with it the usual residual risks. When you fly into Detroit Metro airport, you may see large parking lots of new cars...likely, those are Chrysler products, waiting to be shipped to dealers who have cut back on their order banks. Unlike Ford and GM, however, Chrysler group's parent in Germany has already whispered the word, "spin-off."

We're not sure how DCX would spin-off Chrysler Group should the sales/profit story worsen. It would likely require a suitor...perhaps Nissan? Plus...how do you unravel the cross product plans? One thing for sure about the current car business...it's not boring!

GM and Nissan/Renault announced today that they will be disappointing its largest shareholder, Mr. Kerkorian by not linking up. I don't consider this to be surprising. Nobody at GM wanted to deal with a gigantic merger and the potential loss of control.

GM apparently wanted additional compensation because Nissan/Renault would reap greater benefits in a link up. I recall, in an earlier life (Electric Vehicles) that GM wanted us (Ford) to pay a premium to form a JV on electric vehicles. Why? Because the EV1 was such a great hit. Our feeling at the time was that the Ecostar Electric Van had just as much promise for sales because it fit the duty cycle of many fleets. In the end, the alliance faltered...just as this one with Nissan/Renault.

Interestingly, the end of these alliance talks might signal the beginning of alliance talks with another faltering domestic car company. Ford has just hired a new CEO and continues to lose market share and profits. Chrysler Group is also beginning to struggle and has no volume presence in Europe and has never done well in Europe in the mainstream passenger vehicle business without a partner. Although Mercedes offers more entry level vehicles, it is still predominantly an upper end brand.

Anyone remember Renaults in America? Yes...in the 80s...as part of an alliance between AMC/Jeep. That alliance died in 1987, when Renault sold AMC to...Chrysler! That's how Chrysler acquired the rights to the Jeep brand. Renault left the US market, the largest in the world, in 1989.

In 2004, BMW demonstrated its version of a clean, sustainable energy future with its hydrogen powered vehicle. Now it has announced that it will build and lease the BMW Hydrogen 7, the first hydrogen driven luxury performance car.

BMW has done extensive research in Hydrogen and has cleverly taken advantage of its ICE (internal combustion engine) technology so a new powertrain is not necessary (unlike hybrids and electrics). Some great side benefits of hydrogen:

• Much lower emissions, basically water vapor
  
• Infinite supply (H2O)!
• Good performance...albeit not as good as the gasoline powered ICE, it still has 260 HP in Hydrogen mode (the BMW 760 is a 12 cylinder)
• Great mobility with 400 miles range...unlike pure electrics who are limited to 100 miles with advanced batteries

Of course this technology is still very, very expensive but in volume...manufacturers will be able to drive the cost down. Very exciting stuff for those of us who worry about the environment and the safety of our energy supply.

The major challenges are the investment to drive down cost of this technology and switching our fuel supply infrastructure to hydrogen. Don't underestimate the time and cost to create the infrastructure. It's taken us 100 years to build infrastructure for oil (exploration, pumping, delivery, refineries, retail gas stations, etc.) and switching will not happen in a few years. Still...I believe that hydrogen is much closer to the ideal future than hybrids and electrics.

Oh yes...for those of you linguistically challenged, Wasserstoff = Hydrogen in German (see sign at fuel station)