Hot Topics
Rechtin checks pulse of ultra-luxury market
Tags:
Mon, 10 Sep 2012|
Each August, the car-loving elite visit Monterey, Calif., for the Concours d'Elegance weekend. This year's event allowed West Coast Editor Mark Rechtin to take the pulse of the ultra-luxury market from the 18th fairway at Pebble Beach.
Automatically Generated Transcript (may not be 100% accurate)
As the world's 1% and those aspiring to join them gathered at this year's Pebble Beach -- weekend. Tina cars was a celebrated as much as the lovingly restored additions. After all it's rare scene is so critical on the street let alone three quail gathering on site. It's a weekend where the celebrities aren't nearly as celebrated as the rare automotive icons that recover. But Pebble Beach has also evolved into a marketing opportunity for carmakers eager to reach the world's elite crucial as Europe's economy swirling turbulent fiscal waters. Auto executives seemed to have a mantra for survival. Balance balance. Very balanced and China China China but really how bad is it all expressing concern luxury auto makers seem confident of being able to ride out the storm. -- -- happy is an immense pressure we could just see that Obama cannot but -- billions of the German -- the United States where they're really trying to ratchet up the cells from it. From that aspect -- you know we have got a massive market of China as a massive demand for products in China. I'm for increasing demand for products in the United States where there were drive the displacement engines. The whole member of a profit. At Lambert meeting last year's orders for the event or are keeping the assembly lines running right now. But as for future orders that's another story. Sort of European market for us is it important as a key market as an -- life and showed no. We have always liked it which is not working and all of you to visit our for Chrysler that taxation and the fiscal polices -- controls. But on the other hand we have markets which are working better than expected to -- -- the situation. Is better than 2011 -- They US is going back. Asia Pacific region is pretty much on the same level as last yet. And I really have the Middle East which is really strong. Bentley which struggled through 2008 US crisis appears now to be rebounding -- with his -- on the open in New York. She's going to be three new yet to sign and symptom of economy and -- -- And there's some themselves memos and put on China in fact include live it was a markets yourselves if you continues the other places in your. But this -- also by the end of drew I hit a citizen and he's made twenty successful songs Porsche executives say they have learned their lesson from the last fiscal crunch and are handling global inventories accordingly. He meant and and and supply balance is very important proportion -- -- -- at the moment because of China. Because of so strong markets in Asia and Russia. And the continuing growing of further volume in the position of course in the United States to come to balance the situation -- -- -- in -- and then in New York. Aston Martin which once had too many cars for too few dealers is -- dealers at a furious pace including nine war in China this year. We are in fact then expanding around the world and of course is -- that we have not balance not flexibility in terms of growing -- the business. By mobile device segment I'm like country. Traffic around -- peninsula was little lighter this year than last perhaps indicating a certain reduction in attendance. However as of Saturday night auction prices and already exceeded last year's total clearly the 1% isn't worried. For -- beach for Automotive News TV I'm mark wrecked him.
Related Videos:
-
GM engineer on Chevy, VW diesel warThis is that tried and true product. That we've taken out of our expertise in Europe. That are an Astros insignia affairs are center of expertise is entering a fairly totally different product. We've modified it to meet the need the American market those really in a couple of areas. Exhaust emissions is a lot more stringent standards here diagnostics. In environmental conditions that. The environment that the diesel engine has to perform in here has quite a bit different in Europe especially altitude. Cold and hot. My best description of a YY that's fun to drive as when I'm getting onto highway. When you squeeze the accelerator and many vehicles that it transmission bound ships one year maybe two this does not do this that as enough torque. That it just propelled the vehicle off the highway speeds almost effortlessly. It's really a fun car to drive I mean I'd I'm hoping that people are are going to. Says that. To take a chance and you know take take a look at the diesel because that'll be something that war far. They'll surprise him and and beyond their expectations. This vehicle get incredible mileage if you just do the simple math of 46 miles per gallon. Coupled with a fifteen point six gallon tank that equates to 790. Miles that anybody can get when I grabbed my. My captured test fleet vehicles today. I fell them once a week and I regularly get that. 700. Mile range. You will not have any smoke you will not smell them this has diesel particulate filter on at that regenerates itself when. When when it's ready to we spent a lot of energy and making sure that when the driver is in the driver's seat that that the then noise. And BH of the vehicle is very very good. Clearly that Janet was our target our target competitor and we're better horsepower. Better than far. Veterans highway fuel economy and I would I would I challenge you to go drive both vehicles when available I think people in Dublin then went out the battle in the end.
-
Incisent Labs' Pat Ryan on Gen Y Shopping HabitsGen X and gen largest and fastest growing group of buyers. In it in the country are buying differently than the way I think people have historically the idea that behind Arnold turns out to not represent the way these people shop online. And some of the important takeaways about how to shop. Really involved listings and understanding these spent a lot of looking at your virtual shelves. And so your virtual product she put those virtual shelves the cars that you missed on line. Have to look great to be compelling relevant. And if you don't make a great if you don't make them relevant. and a car. They start what that's like hypothesis is releasing them I think these are cars computers and wanna go online and learn more. And then go online and learn more useless things lot earlier a lot more than we would have never expected. That they do that for well typically they want to expand their settled that that they get wider. Eagle from about four models are constrained to close at six. As they look at those six. Under the same thing they're trying to researcher trying to understand what is it about scar them looking. And that middle we found him doing much more of their editorial preacher where there but we found this this Twitter generation. It's much more likely to use topped analysts' as a way to launch in two. Editorial content and it worked start a whole article. There's there's definitely feeling that they online experience. It's not clear when it's over. And so because of that what you find is people are two very good job of kind of learning getting a curve but getting confident to pull the trigger to go in. To experience that many of them still are afraid of. Tends to make it really difficult for them to. Do until we find people circling the airport equivalent there they keep searching and searching. They're just not sure that you know getting that conference to go heart and a lot of visiting online buying process just isn't built around. Making it easy for them to digest and understand. And making it easy for them to build confidence. In what they've learned to want good.
-
Toyota's Lentz: 'It's really a three-horse race'Hello and welcome to part two of our video series with North American cheat on Jennifer bond. In addition we speak with 2.0 as Jim land. This 57 year old joined the auto maker in 1982. In march of this year lens with named it when you first CEO for North America. The move. An overhaul by president Akio Toyoda to regional executives more local control. Once and his team didn't waste any time in taking action. Action and that underscores Toyota's push for North American production. Amid tougher competition. He split his bonds had to stay. The first this year and eight index down one month. Is that bring production of them accessible to go through the United States. A designed to come the fluctuating Yang and build cars tailored to US case. What you currently produces about 70%. Of the vehicles sell things that you went in North America. One says that number will grow to that 5%. With help from the Lexus ES went production begins in Kentucky 2015. The only high volume name played the companies felt stateside that it's not built in the region. Free it. Right now there's equilibrium between overall. Supply and overall from. So it really doesn't make any sense today to relocate Prius production here to North America. But once demand exceeds applying. We will be one of the first to raise our hands to have to bring Prius here to the US but we're nowhere close to that at this point time. In Mexico Toyota plans to build a Dallas the small car it's not made in Japan. Toyota is teaming with mom's done in a to be competitive in that key segment. When you had a very very strong that became problematic for a spring vehicles in from Japan. And we don't produce CB platform cars North America. So we've made the most sense to find a partner to be able to do that. Must thought that the time was planning a fairly large operation in Mexico. So it was a win win for both manufacturers to get more. More volume to help offset the will cost position. For us to be able to get a great product here in North America what would be a lower costs and bring it from Japan. Production of the car based on a Mazda two we'll start in the summer of 2015. At an annual pace a 50000 units. This just another example of growing list of the global partnerships. Moving up to them midsize category. And at a course that can't sitting hunt. Its US sales fell for the second straight month in April finishing second to the Honda Accord. What will it take for the Camry to extend its eleven year reign as the nation's best selling car. We think that 4000 ranges probably the right volume. We still think that's gonna keep us is number one of in this segment. Lens however the well clear of the Camry stiffening competition. I think that the court has always been a strong competitor for years and years for us I think fusion has a much better product that has been passed. So to me it's really a three horse race for who's number one on the site. Sonata has has done a good job in the market I think Sonata has really pushed styling into the midsize car. That is forever changed that segment. Another big sales does want change is for the US luxury crown now held by BMW. Mercedes a close second. Lexus wants the title and won eleven after eleven years. One says retailers don't under estimate the value of that top spot. If you look at it from a battle cry. At a dealer meeting. You know we're all competitive so being number one is is is an important consideration. However believes that being the champ isn't such a big deal with buyers. And about the fine on youth oriented becoming a near luxury brand that's what Rihanna is studying. Land says he personally think that pretty small car market is going to be a viable means but there are still some question. Is it really. Intrigue or near luxury. War or these luxury nameplate it's coming down well below what the luxury market traditionally it's. It was going to be interesting to see that's right in my mind I kind of caught just a premium small car. Because I think it's really outside of the realm of traditional luxury. And that's why frankly I don't want to play in game. Now extremely competitive segment land is yielding in. Pick up trucks. I'm never going to sell the kind of volume of pickup trucks especially full size trucks that the Big Three car. But but that's OK don't need to know pick up trucks are just one part of my offering in terms of full line manufacturer. The Detroit three automakers heavy tight grip on the full finds that US pick up market. One says the ideal target fort radio in the compact and full sized segment by and large. I think that 250 to 300000. Total pick ups is probably the sweet spot for going forward. That's not too much higher than last year. Overall in 2013. The automaker is to sell more than 2.2 million vehicles in the states. It the industry hitting fifteen point three million units up from 1214. Point five million. When asked to look further into the future. Sees a slowdown in overall growth toward the end of the decade. That's due in part to consumers demand for quote butter quality product. When you layer on better emissions that are cafe. Better safety. How much is that gonna add to the price of the vehicle to transaction price. And in time. Will that have a negative impact on the overall industry I think it probably will you be interesting to see it's. That's that's the big crystal ball everybody's trying to deal. sitting down with Ottoman at West Coast editor mark Wright did. Then at their time for now in her final installment of this series. We'll hear from General Motors North America Abbas mark Royce thanks so much for watching take care.
-
Ford’s Hinrichs: ‘We’ve Learned Lessons From the Last Few Years’Welcome to our first talk from the top video series of 2013. I'm Tom back this month we'll hear from three North American chiefs. And will begin with Ford's new president of the Americans. here and Rex. He's only been on the job about five months replacing mark fields who named the blue Mobil's chief operating officer. Early in his career worked for General Motors. And later spent time at a manufacturing. Investment group. Henrikson joins Ford in 2000. To manage the van dyke transmission plant in Sterling Heights, Michigan. He would go on to lead Ford of Canada. And then North American manufacturing. In 2009. Hendrix was asked to head Ford's Asia Pacific Africa region. At the time Ford was at best a marginal player in China trailing far behind Volkswagen and GM. But he quickly put a plan in place to produce up to one point two million vehicles a year there by 2015. Doubling its current capacity. The 46 year old Hendricks is now back in Dearborn. recently sat down with us to discuss a number of items including Ford is modifying its vehicle launch procedures. To catch problems early year. What's been the biggest challenge for you. Well I think clearly getting through launch issues on the Lincoln and Khazei and and and brain that great product to life. A car many believe is Lincoln's one last shot survival. But quality glitches in parts shortages at Ford's factory in Hermosillo Mexico. Forced the company to ship hundreds of To a suburban Detroit plant for quality inspections and repairs this year. As a result many early and customers had to wait months for their cars. So Ford implemented process improvements. Betting in the first quarter. The list includes monthly launch reviews. That's were manufacturing. Product development. Quality in purchasing managers examine both internal. And external products. And the most important thing we do is bring everybody together. And we look at the physical vehicle the hardware the actual vehicle prototypes the vehicle designs themselves. The competitive vehicles are they look on margin fit finish sixth here here. We bring together online and on expectations also what the work plan is Hendricks also brings up one key question at each reading. And importantly most important. Ascertain where they need help. So that we can resolve issues quickly get resources needed if required. To make sure that we're ready on time with releases parts in the supply base and her own selves have successful launch. That's working on for the future. Rick says the onslaught of new and redesigned models in recent years strained forward at the end it's supply base. It because the pace is in slowing down anytime soon. Where adding resources to our supplier technical assistance group which the engineers to go out and help suppliers. Validate the process capability make sure they have the capacity and work through issues us on the engineering side for example. We're adding new people as we speak we're hiring and McGraw the resources because we anticipate industry growth and our part of growth in the future. Edwards believes expanding the Ford and Lincoln lineups presents a quote great opportunity to make changes to the vehicles. One area in particular. The my Ford touch infotainment system which is hurt the auto makers ratings in quality survey. Hedrick says Ford continues to upgrade software to make the system simpler and faster but keep an eye out for hardware to. of the team look at our strategy that we use for knobs and the senators back and sliders. Negate a lot of feedback consumers want from now to keep aren't to introduce those back into the vehicles. Through April Ford motor's US market share is increasing nine tenths of a percentage point in sales are up 13%. To keep up with the man. In the third quarter. Ford will begin hiring 2000 workers at its Kansas City, Missouri assembly plants. To build more F 150 pick ups and transit commercial vehicles. In the fall the auto maker will craft fusion at a second plant in flat rock Michigan. We are looking to build a few more explorers for example explorers been great lately. We'll make sure we have enough capacity firm like our trucks and all of our products. We are running pretty full the moment which is great helps our margins business overall most of those vehicles and up at dealerships. And Hendricks has a message for retailers. We will work continue to improve our quality you know want capability of our business as we know how important is to them. learn the lessons from the last few years and will improve as we go for me that commitment to them. That is our time for now in our next talk from the top segment will hear from Jim CEO of Toyota's North American region. Thanks for watching we'll see of that.
