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It’s rather amusing to see how standards of beauty change over the years.  In the 1950s, Chryslers came with bench seating spacious enough to be considered a mobile loveseat, and “getting under the hood” meant a mechanic could actually stand inside the engine area and work.  Marilyn Monroe was the hottest starlet out there and she wore a size 10 dress.  It’s 2008 and the recent sales figures are out:  America’s fancy has turned to compact cars with engines that sip fuel and are fitted into the frame with a shoe horn.  Gisele Bündchen wears a size 4.  It would appear that American’s interests are slimming, along with the amount of cash in their wallets.

According to a recent BusinessWeek report, small cars are moving off car lots in record numbers.  In the compact and subcompact class of cars, the Honda Fit alone has seen a 67% increase in sales alone.  Other notable sales winners are the Toyota Yaris and Scion xB at 39% sales increase, along with the Mini Cooper at 33%.  “But according to studies of initial quality done by J.D. Power & Associates, buyers aren’t targeting just high fuel economy. Close behind gas mileage is a desire for reliability, followed narrowly by workmanship,” explains BusinessWeek.
 
It should come as no surprise that brand name reliability plays a huge role in determining which 30+ MPG car to purchase.  According to Consumer Reports, “At about $17,500, a Mitsubishi Lancer could cost $4,000 less than a base Mini Cooper to drive home. But when you estimate the total costs of ownership for each car, the Lancer could cost you $5,000 more over five years.”  Insurance, labor, and parts costs are being weighed more consciously by customers.  Honda and Toyota brands carry a higher reliability rating in consumer’s minds than Dodge or Ford.
 
As the economy takes a downturn, Americans are more mindful of where their money is going.  It’s not just about a low price tag but total cost of ownership.  One commenter on The Truth About Cars recently purchased a 2007 Tundra Double Cab SR5 5.7.  He posted “Got the truck for $10K off sticker ($20740), nicely equipped.”  Most of the smaller cars are running in that range.  However, a $4.00 gallon of gas economy has most commuters looking at something which can give them upwards of 33MPG.
 
The car manufacturing companies have had varied luck in predicting what consumers want.  Japanese companies like Honda and Toyota accurately forecasted consumer interest is fuel efficient cars and hybrids.  Their retail locations report turnaround sales of models like the Fit or Prius in a matter of days.  Meanwhile, Ford, GM, and Chevrolet seem to have clung a little too tightly to Henry Ford’s view of marketing: “If I’d asked my customers what they wanted, they’d have said a faster horse.”  And so, the focus for American car manufacturing was more of the same midsize sedans, SUVs, crossovers and trucks.  This could explain Jeep and Chrysler’s sales numbers which are reported in vehicles per franchise…in single digits.
 
They do say that beauty is in the eye of the beholder.  When times are good, that which is opulent and grandiose is favored.  When times get lean, the beauty of simplicity and efficiency is more appealing.  Hybrid technology and alternate fuel systems are the next wave of automotive design.  However, existing internal combustion engines must change their packaging to meet the higher expectations of consumers.  If auto manufacturers are looking to court the consumer, they’re going to have to lose a few pounds and watch their reputation.

Friday, August 15th, 2008 leave a response

By Alicen Hogan