09 January 2012

The Big Three: Why Not Us?





With the North American International Auto Show in full swing, Detroit is once again thrown into the world’s spotlight. Only a couple years ago this was an embarrassing display of sub-par vehicles from the “Big Three” and where Detroit’s automakers were repeatedly humiliated on their own turf. We were living in a world where the Chevy Cobalt, an aging Ford Focus and the Dodge Caliber were the best small cars we could muster. Our market was awash with what could only be described as American junk.

Over the past few years the “Big Three” seemed to have enough of this and decided it was about time someone did something to put Detroit back on the map for something other then murders, corrupt mayors and unemployment (or a unemployed, corrupt mayor who murders for that matter). The first glimmer of hope started appearing throughout 2009 into 2010, after your taxpayer dollars propped up the failing industry. This was suddenly the wakeup call the “Big Three” needed, their eyes opened to the fact that if they did not step up their game the government would not bail them out again.

By the time the 2011 model year hit, changes within the “Big Three” were coming quickly with redesigns, refreshes and all new models that were not half bad and proved to stack up well to the competition, along with blazing new trails. They continued their momentum through the 2012 model year as well. This lead to cautious optimism.

Chevy had replaced the god-awful Cobalt with a more civilized and nicer Cruz, as well as paved the way for the first electric-gas hybrid vehicle with the Volt. Buick imported the Opel Insignia and slapped a badge on it, making it the first Buick in a long time that people under the age of 60 liked. Chrysler refreshed the 200 and 300 to actually look halfway decent, and then continued to make them better and better. Ford showed off its European-platform-bound-for-the-US cars like the Fiesta and Focus, as well as introduced an all new Explorer. Jeep redid their entire line and made a Grand Cherokee that could compete with the world market, instead of just having a bunch of off-roader fawn over it. The American auto industry started to rise up from the ashes and really show that they were back and meant business.

The “Big Three” also went ahead and cleared house of brands that were no longer relevant in the market, much to the dismay of a few broken hearted fanboys. It was an excellent way of bolstering their financials and saving the company millions of dollars. Chrysler also became the Italian’s lovechild at the same time as well, which not only gave them a stronger financial backing, but also provided platforms that were not horribly dated.

Granted the “Big Three” got some pretty good breaks along the way with Toyota’s unintended acceleration issues, stale model fleet and having questionable reliability rear its ugly head. Honda had similar issues surface too, especially when Consumer Reports said the Honda Civic was “not recommend”. The German competition falter a bit too, especially with the entirely beige and bland line of Volkswagen. The premium sedans and sports car continued to reign supreme, but the average middle class sedan was heavily being favored towards the Americans for once.
Chrysler’s ad campaign also took the city by storm during the 2011 Super Bowl and causes a sudden burst of Detroit pride, something we have not had in a long time. I was initially critical of the “Imported from Detroit” ad campaign and still have issues with them using the 300C, which is made in Canada. However, they seemed to have nailed and brought a very positive image to the brand, I can’t fault them for that since people wanted to buy their cars.  

Now we come to the 2013 model year, which is going to be a big one for the American and why this auto show is extremely important for Detroit to steal the show. Toyota, Honda and Nissan have all have fought back. Toyota has really started to breakout of their blandness with a rather sporty looking Toyota Camry. Honda was also able to get their grove back and Nissan continued to produce very sporty sedans.

Fuel economy has also really popped back into the limelight as well. Many of the vehicles that were bought between 2001-2007, during the SUV era, are coming to the end of their life span and need to be replaced. A huge majority of these people are now interested in securing a fuel-efficient vehicle to get away from their monster fuel bills of the past. Hybrids have also lost their stigma of being cars for pompous, tree hugging celebrities and are slowly becoming more mainstream.

So why is this year so big? We are finally seeing the Alfa-ized Chrysler products come to market, which makes car enthusiast exited they finally get an Alfa, even if it is wearing a Dodge frock. We are also getting the Mondeo badged as a Ford Fusion, this is a car that journalist, consumers and enthusiasts have been pleading with FoMoCo ever since we lost it with the Contour. Cadilliac is going to attempt to take on the BMW and Audi big boys with its new ATS, which if they succeed will be a huge win for GM.

Chrysler has hedged its bets on the Dart and it needs to be a winner for the company to remain standing in its current condition. They also need to make up ground for the abysmal failure that is the Fiat 500. So far they have managed to hold firm in the luxury market with the upscale model of the 300 and they announced a bombshell in the performance sector with its 560hp Charger Redline which is like the GT500 but for a family.

Ford needs to continue its wave of success with the new Fusion, its bread and butter sedan, and trounce Toyota and Honda at a segment they know how to win. They also have to deliver a knockout punch with the regular and plug-in hybrid versions of the Fusion too. If they can be crowned king of the eco-segment, it would grant Ford some serious advertising power over Toyota and be able to slap the smugness away from them.

GM better hope they made the Cadillac good enough to compete with the BMW 3-series and Audi A4. They are two incredibly difficult opponents to topple, but it can be done if GM skips the corner cutting and shoddy materials. Past that their two concepts were rather lackluster and did not really showcase what they needed too. The Code 130R (what a stupid concept name) is an answer to a question that did not need asking, GM already has a V6 Camaro that would outperform the 130R if it were ever produced (which I doubt it will). Build it for under $20,000 and then they will have a winner with the younger crowd like the Hyundai Genesis had. Or just put the R&D dollars into making the V6 Camaro better.

So has Detroit succeeded? Time will have to tell on that one and we will know by this time next year barring the Mayans haven’t killed us off first. But I think they have a shot. The Dart is the Neon replacement we all wanted, the Fusion is the car we have all dreamed Ford would bring back and the ATS will be competitive in America as a sports sedan even if it struggles in Europe.

Their continues to be that glimmer of hope that not all is lost in Detroit and you can tell the city is itching for another renaissance to fuel up the Motor City. Take the Lions for example, four years ago the Lions went 0-16, much like the American auto industry, but they were able to bounce back and make it to the playoffs. If the Lions can do it, I really do think anything is possible. And to echo the headlines from a few days ago, "why not us?"

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