Nothing Lasts Forever, Good or Bad…

It seems lately, the Cassandras in the mainstream media have been scouring 24/7 for the latest negative news to come out of Detroit. Whether it’s Chrysler’s (substitute Ford, GM, take your pick) massive quarterly losses, looming layoffs, more manufacturing jobs moving overseas, etc. Now that Ford has become re-engergized with a new CEO and an unconventional marketing approach (Bold Moves), the negative limelight has shifted to its Euro-American compatriot DaimlerChrysler, force-feeding its dealers over-produced inventory, and reconciling its quarterly losses.


It seems lately, the Cassandras in the mainstream media have been scouring 24/7 for the latest negative news to come out of Detroit. Whether it’s Chrysler’s (substitute Ford, GM, take your pick) massive quarterly losses, looming layoffs, more manufacturing jobs moving overseas, etc. Now that Ford has become re-engergized with a new CEO and an unconventional marketing approach (Bold Moves), the negative limelight has shifted to its Euro-American compatriot DaimlerChrysler, force-feeding its dealers over-produced inventory, and reconciling its quarterly losses.

Not that long ago, Chrysler was the “it” kid of Detroit, with the sassy new LX cars, and a confident swagger. Likewise, Ford was all the buzz when the 2005 Mustang rolled into showrooms. Though the timing was somewhat unfortunate in the midst of ballooning fuel prices, the new GM full-size SUVs received positive critical reviews, as well as posting strong sales out of the gate.

The point I’m getting at, is however bleak it seems, bad news never lasts forever. Conversely, winning streaks are not eternal either. Just as soon as automakers kick back in their wing chair, put their loafers on the ottoman and light up that Macanudo, a competitor is inevitably burning the midnight oil in a scheme to un-seat them from their lofty perch.

Geo-commercial politics and patriotism aside, DaimlerChrysler has proven it can leverage its assets effectively at building competitive, desirable cars using the best of American style and ingenuity and European engineering sophistication. They have the Challenger in the pipeline, which may not be the volume-seller they need right now, but will definitely be a “halo” vehicle for the group. Around the same time, the all-new minivans are expected to debut. I don’t think for a second that they’re not fully aware of how much is riding on that vehicle symbolically and materially. They defined the modern minivan segment in the 80s and have been the dominant player since. Think they’re going to let the Koreans and Japanese eat their lunch in this segment? Not likely.

As far as Ford goes, it’s no secret they’ve got some cool stuff in the pipeline. However, they are being somewhat guarded about exactly what, beyond the Edge, and the Fairlane, (or whatever they end up calling it) will be coming out in the immediate future.

And good ol’ GM. Despite all their woes with the UAW and over-zealous East Coast journalists (who will remain un-named), they’ve got some solid products, both currently, and coming out soon. Their new breed of crossovers seem like they will be definitive for this still-emerging segment, and if their portfolio of Zeta-based North American products is as extensive as many think it is, they should have no trouble matching or exceeding the LX cars’ buzz factor when they’re introduced.

So even though we’re living in a time of bad news and rampant speculation about mergers, takeovers, spinoffs, bankruptcy, you name it…We may be actually be on the cusp of a major automotive revival. I can’t wait.

- Edward A. Sanchez

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1 comment so far

you are so right

Tudor Mate
November 2nd, 2006 at 7:48 pm

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