Detroit automakers doing well....sort of

 
The other day in the USA TODAY, a headline in the Money Section caught my eye and made me smile.  It’s been a long time since I’ve seen a headline in the newspaper proclaiming, “Detroit leads March auto sales.” 

As a dyed-in-the-wool domestic automaker defender – some say apologist – it gives me enormous pleasure to read the monthly sales figures out of Detroit and see that the Domestic Three (GM, Ford and Chrysler Group) are slowly but surely gaining sales and even respect.

I am a realist, however.   The improving Domestic Three automakers will never be a dominant force and become known as the BIG Three again.   Presently the best market share that GM, Ford and Chrysler Group could muster in March was 16.9 percent, 16.2 percent and 11.8 percent of U.S. sales respectively.

Back during my college days in the early 1960s, the leading auto news story was rather the U.S. Justice Department’s antitrust division would pursue its goal of breaking up GM because of the giant company’s overwhelming, monopolistic 60 percent vehicle share in the early 60s.  Apparently the government felt that dividing GM into two companies – one made up of Chevrolet and the other selling Pontiac, Olds, Buick and Cadillac – would give competitors Ford and Chrysler Corporation a more level playing field.

Well, as we know, the playing field got leveled all right, and it wasn’t the outcome of an antitrust suit but rather unexpected competition from imports; first from Europe, then from Asia later in the century.

It’s seems almost unimaginable when reflecting on it today that GM once briefly held over 60 percent of the U.S. market, followed by Ford’s typical 25 – 30 percent share and Chrysler’s 10 – 15 percent take.  I recall as a young man how easy it was to remember the size of each American automaker’s market share.  Take GM’s typical 50 percent figure, divide it by 2 to get Ford’s figure and divide again by 2 for Chrysler’s.

My, how times have changed.   Back in the day when the Big Three dominated, the U.S. auto-making triplets garnered almost 100 percent of the market.   Now, as sales figure from last month show, their total U.S. share amounts to a measly 44.7 percent.  My 50-25-12 sales formula of old doesn’t work any more – by a long shot.

Also showing just how different things are, Chrysler is now only a few percentage points behind Ford in market share and the Blue Oval brand is only a tick or two behind perennial sales leader GM. 

Not only did Chrysler survive the severe recession and emerge as a partner with Italy's Fiat, the company managed to revive its dated automotive lineup with a slew of freshly restyled and very successful products. None represented their efforts better than the mid-size 200, a revamp of the unloved Sebring, which was successfully introduced by rapper Eminem at the 2011 Super Bowl. 

From the sales figures, one could assume that Detroit is in one heap of trouble.  But sales share don’t tell the whole story.   A better barometer of company’s health is how profitable it is.   I’m please to report that the Domestic Three are now lean and mean money machines and the future looks pretty good indeed.

Following the hurtful economic implosion of 2008 – with GM and Chrysler emerging from bankruptcy – all of the automakers used the business meltdown to close under-used factories, shed a large number of workers and eliminate hundreds of millions of legacy costs that had been weighing them down for decades.

While the domestic automakers are only a shadow of their formal selves, they are financially healthy and record or near profits are the norm again.  Gone are costly incentives and over-production.  Now the companies wisely sell only what they build.   Too, after working hard to catch up, the quality of U.S.-made vehicles is equal to or maybe even better than those built by the foreign automakers.

The aforementioned USA TODAY article pointed out that the “Detroit automakers ruled the March sales charts, parlaying their truck and SUV expertise into solid gains while Asian rivals – except for Honda – lagged.”  I swelled with pride when I read that lead off statement.

USA TODAY’s auto writer ended his column by noting the following auto trends and I paraphrase.

- The strong uptick in pickup sales will benefit the U.S. automakers because they still dominate the full-size pickup market.   With the improving housing market resulting in more houses being built, homebuilders will be replacing pickups and that spells good news for Detroit.  It has been reported that automakers can earn up to $10,000 to $15,000 net profit on each truck sold!

- SUVs are still popular and those expensive models are cash cows for the Domestic Three as well.  GM recently freshened its three middle priced SUVs, the Chevy Traverse, GMC Acadia and Buick Enclave.  All three experienced robust sales increases in March.  Happily, GM will be replacing its full-size and popular Suburban, Tahoe and Yukon models later in the 2014 model year.  Ford’s Explorer had its best March since the current model was introduced in 2010.  Chrysler’s Dodge Durango/Jeep Grand Cherokee were also recently freshened and are gaining many new buyers.

- While Toyota, Nissan, Hyundai and Kia all experience either flat sales or declines, Honda managed a 9.4 percent increase in sales in March, thanks to brisk sales of its all-new Accord and CR-X and the freshened Civic.

So it is a good time to be a Detroit Three adherent.  The domestic automakers have not only dodged another economic bullet, but have emerged in pretty fine shape to face another day.  I couldn’t be happier.

  

Sports car enthusiasts are grateful that GM's bankruptcy troubles in 2009 didn't postpone too long the introduction of the 7th generation Chevy Corvette Stingray.  A huge crowd pleaser at every auto show, the Bow Tie division appears to have hit a home run and will offer a true world beater in the competitive sports car market, starting later this summer.

    

Ford weathered the Great Recession and now offers a line-up of winners including the Focus, Fusion and Explorer.  Needing a lot of work is the Blue Oval's luxury brand, the Lincoln.   Arriving now at dealerships - be it belatedly - is the all-new MKZ luxury sedan (shown).  Next up is the smartly styled MKX crossover based on the popular Ford Escape, introduced as a concept at the January Detroit auto show.  

    

Dar's and Chuck's top ten beautiful and homely cars

 

I’m writing this column in the south, enjoying 70-degree temps and observing from afar the frigid and snowy weather that engulfed the Midwest just after I departed St. Joseph.

Joining me is my good friend Chuck Hassel, a fellow car nut who grew up in the Chicago area but now resides in South Carolina.  We’ve make our visit south each January to escape the colder northern climes (well, at least I do) and, more importantly, to discuss cars.   We love all kinds of cars, be they new or old.

Chuck has been ogling cars since he was a little kid.   His education includes degrees in engineering from Purdue and product design from Art Center College in California.

I showed Chuck a copy of my last week’s column about the Hemmings Classic Car editorial with Richard Lenitello’s eight ugliest cars and my reaction to his selections.   Naturally we began coming up with ugly candidates of our own.   We agreed up with our top ten list.

We also thought it would be fun to see if we could come up with a list of the ten most beautiful cars.   It was a challenge, but we did it. 

So, behold, our list of the ten homeliest (ugly seems too cruel a word) and ten most beautiful American cars ever offered.  After each vehicle selected we have added a brief remark on why it was selected:

TEN HOMELIEST VEHICLES:

            1937 - ‘39 Willys (bug-eyed headlights and a pointed snout)

1958 Buick (massive looking, a ponderous chrome-mobile)

1958 Ford (a failed attempt to duplicate the look of the new 4-place T-bird)

            1958 Oldsmobile (see 1958 Buick above)

            1958 Packard (stacked fins and tacked-on quad headlights, a sorry end to a great marque)

            1961 DeSoto (unrelated dual grille openings, clunky-looking taillight housing)

            1961 Plymouth (cabbage grater grille with Halloween headlights that scared small children)

            1980 Ford Thunderbird/Mercury Cougar (the stylist must have lost their French curve, a box was their inspiration)

            2000 – ’05 Chevrolet Monte Carlo (a crisp design that obviously sat too long in the hot sun)

            2001 – ’05 Pontiac Aztek (not sure if it’s a van or a car but not Pontiac’s best effort)

High on many automotive lists of homely cars is the overwrought 1958 Buick, shown here in the Limited series.

           

The rather scary front end styling of the 1961 Plymouth has been said to be so ugly it scared small children.  It certainly wasn't designer Virgil Exner's best efforts.

TEN BEAUTIFUL VEHICLES:

           

            1933 Pierce-Arrow Silver Arrow (one of the first American vehicles to feature breathtaking aerodynamic lines that set it apart)

1936 Cord 810/812 (Gordon Buehrig’s Cord was a styling masterpiece, radical for its time, still eye candy today)

1939 Lincoln Continental Mk 1 (One of Edsel Ford’s best efforts, providing a must-buy luxury car for the Palm Beach set)

1953 Studebaker (Studebaker stunned American car buyers with Raymond Loewy’s European inspired design)

1955 Chevrolet (featured a Ferrari grille, V-8 power and all-new body of classic simplicity)

1960 Dodge Matador/Chrysler New Yorker (perhaps Virgil Exner, Sr.’s highest achievement and his most successful fin effort)

            1961 Lincoln Continental (award winning then, still stunning to look at)

            1966 Buick Riviera (Words like elegant, graceful and sophisticated are used to describe this Dave Holl’s masterpiece)

            1970 ½ Chevrolet Camaro (in production for 11 years, the crisp, clean  Italianate pony car was a huge favorite) 

1971 Plymouth Satellite coupe (a muscular yet elegant car, it’s bold loop bumper was a perfect compliment to the athletic car)

 This photo, taken at the Concours d'Elegance of Southwest Michigan in St. Joseph, shows me standing in front of one of Studebaker's prettiest coupes ever.  The 1953 - 54 Commander coupe was designed with input from internationally known Raymond Loewy.  Most best looking car lists include this design beauty.

Above is the iconic and great looking 1961 Lincoln Continental 4-door convertible.   Considered by many to be the finest looking Lincoln ever introduced.   Wouldn't it be great if Lincoln could return to market a Town Car-like model that has the impact of this landmark luxury model.

If you don’t recall what some of our selections look like and a photo is not shown, use your computer’s search engine and type in the year and car.  Photos galore will appear to remind you just how ugly or beautiful these cars were.

(Re) Introducing the Lincoln Motor Company

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On everyone's list of great Lincolns is the first Continental, the 1939 Mark I.   Edsel Ford wanted a special car to drive to Florida to show off friends on his annual winter break.   Working with designer Eugene T. "Bob" Gregorie, the two of them starting with an already great looking Lincoln Zephyr and created the formal and grand Lincoln Continental Mark I.  So popular with his wealthy friends in Florida, Lincoln immediately put the car into production.

It is no secret to those who follow the auto industry to notice that Ford Motor Company’s Lincoln brand is in deep trouble.  One only needs to read monthly sales figures to see that during the current auto industry sales recovery in the United States, the once powerhouse luxury brand from Ford is having a rough time keeping up.

Sales of Lincoln vehicles are down 15 percent for 2012.  Only about 70,000 units have been sold.    That paltry figure compares to the high water sales mark of 230,000 enjoyed by Lincoln back in 1990.

While Lincoln falters, its luxury brand competitors, especially foreign-based Mercedes-Benz, BMW, Audi and Lexus are selling in near record or record numbers.   Long time domestic competitor Cadillac is also struggling but the recent introduction of two all-new models this past summer is pushing the once “Standard of the World” sales upward and a recovery seems to be underway for the once mighty GM brand.

So what happened to Lincoln, and is Ford doing anything about it?  As with the story of any entity that takes a mighty fall, there is no one answer to the question.   Lincoln, founded in 1917 by Henry Leland has had a history of ups and down, not unlike nearly all the automakers.

When Henry Ford bought Lincoln from Leland in 1922 it fit nicely into the Ford family.   The Model T attracted folks in need of inexpensive transportation and the luxurious Lincoln appealed to the moneyed crowd.

Henry’s son, Edsel, 24 years old at the time of the Lincoln purchase, was given the responsibility to make something of Lincoln.  The appointment was a good decision by the old man because his son is recognized today for having a good eye for fine design.

I could write pages and pages of the many fine Lincolns that were crafted by Ford Motor and brought to market.  Edsel showed his genius as a man with a keen eye and a man of good taste when he oversaw the creation of two popular pre-war models that are highly coveted by collectors today. 

Working with designer Eugene T. “Bob” Gregorie, Edsel introduced the streamlined and affordable Zephyr in 1936 and the elegant and striking Lincoln-Continental in 1939. 

Lincoln managed to thrive even following Edsel’s untimely death in 1943 at the age of 49.  Notable Lincolns were introduced in the post-war era.  Popular with collectors were the first all-new models since WWII introduced in 1949 in two-sizes – one based on the mid-sized Mercury.

It wasn’t until 1956 that Lincoln made a concerted effort to compete more directly with Cadillac, its long time nemesis.   In 1956 Lincoln brought to market a luxury car that was an equal match to Cadillac – in size and in style.   Sales still were only a third of Cadillac’s but Ford Motor made it known Lincoln was now a serious contender.

It took until the 1970s before Lincoln started to really thrive and challenge Cadillac in sales supremacy.   But it was the 1961 model year when Lincoln offered a new car that set the tone for how the marque would look and be marketed for a decade to come.

The 1961 Lincoln-Continental was a landmark vehicle for Ford.  Not a big seller at first but the beautifully designed and executed down-sized sedan and convertible, both with “look-at-me” suicide-style rear doors, were a slam dunk design home run and caught the public’s fancy.

The Lincoln-Continental looks hardly changed for 5 years and subsequent new models favored the severe but elegant look of the original and sales started to climb. The introduction of the Thunderbird-based Continental Mk. III in 1968 enriched the luxury brand’s lineup and pushed Lincoln to sales of 230,000 by 1990.

Then, with stiff new competition from Asian brands in the luxury market (Acura, Lexus, Infiniti) and the continual sales success of the Euro big three – Mercedes, BMW and Audi – Lincoln lost their way.

Perhaps Edsel Ford II, Edsel’s grandson, said it best on a recent television program about Lincoln’s plight when he said, “We took our foot off the accelerator.”  Sad to say, in the last two decades Lincoln has faded away.

So what to do?  If you’ve been reading the paper or watching television, you know that a plan to revitalize Lincoln is underway – big time.  The company announced just last week in a full-page ad in USA Today a name change and a game plan.  Gone is the old Lincoln/Mercury Division.  Now it is The Lincoln Motor Company, just like in the beginning. 

A new team is running Lincoln.  Ford Marketing Chief Jim Farley is now Lincoln’s top executive.  It has been announced that over the next four years four entirely new Lincoln’s will be introduced. 

In 2014 the brand will enter the Chinese market for the first time.  Says Matt VanDyke, Lincoln’s global head of marketing, sales and service, “Ford has been completely re-invented and now it’s time to do that with Lincoln.”

Lincoln now has its own styling studio and heading it is former Cadillac chief designer Max Wolff.  Max’s first effort for Lincoln is the MKZ reaching dealers this month.  Like before, this entry-level Lincoln is based on the Ford Fusion.  But unlike the last MKZ, you’d never know it.  It shares the Fusion platform but all exterior sheet metal and all interior surfaces is uniquely Lincoln’s. 

In addition to the full-page print ads in national publications, Lincoln has introduced a brand new website and produced three new television ads.   Ford has purchased a 1-minute Super Bowl ad to re-introduce Lincoln as a viable and exciting new luxury choice – hoping to reach all the buyers out there who haven’t given a moment’s thought of considering Lincoln for purchase.

So will new executives, new designers, new name, new product and new emphasis on service by dealers (a concierge-type service provided by Lincoln dealers has also been announced) help pull Lincoln out of the sales doldrums? 

It’s not an easy task.  Just ask Cadillac.  GM has spent billions of dollars in the past 10 – 15 years trying to return Cadillac as a worthy contender in the cutthroat luxury car business and the jury is still out.

Certainly those of us who are still mourning the loss of Oldsmobile, Plymouth, Pontiac and Mercury are pulling for Lincoln.  It will be nice to see the 95 year old marque rise Phoenix-like and be a major contender in the market in the years to come.   Fingers are crossed.

Few luxury brands can match the beauty and elegance of the then all-new 1961 Lincoln-Continental.  Reduced in size and designed using simple shapes and forms, the car helped establish Lincoln as an important new player in the luxury car class.   As new Lincoln design chief Max Wolff and his styling crew work to create a new exciting generation of Lincolns, finding inspiration from the '61 Lincoln-Continental might be advisable.

Lincoln got serious in its battle for sales leadership with Cadillac by introducing the beautiful, all-new 1956 model.  The car's dramatic-looking front end was derived from the 1955 Futura dream car (which later was transformed by customizer George Barris into the infamous Batmobile).  Sales rose dramatically and the 1956 Lincoln remains a favorite of Lincoln collectors.  This car, formerly owned by Al Dickerson of South Haven, was exhibited at an early Concours d'Elegance car show in St. Joseph in Lake Bluff Park.

 Following are photos of a variety of beautiful Lincolns that graced our highways in the past.  Enjoy.

 1961 Lincoln Continental 4-door convertible

Rear quarter view of 1961 Lincoln Continental

1956 Lincoln

1965 Lincoln Continental 4-door sedan

1957 Lincoln

NAIAS Detroit Auto Show 2009 - Automakers feel blue but look green

The 21st annual North American International Auto Show at Cobo Center in downtown Detroit could have been a somber place this past weekend. But for an industry under seige for the better part of 2008, the annual media preview at the NAIAS last Sunday, Monday and Tuesday was an upbeat and fascinating place to be. Granted, the fancy vehicle displays that were the norm in past years were replaced with much simpler sets, especially those from the Domestic Three automakers. Gone were the elaborate and impressive exhibitions and in their place were dramatically simplified displays. This year the vehicles took center stage, not the ostentatious staging found in year’s past. Also missing at Cobo were the many amenities that were provided to the 6,000 + journalists and photographers in the past. The tasty free lunches and dinners were dropped by the automakers as a cost saving move. Gone, too, were the fancy productions that were used to introduce the many new vehicles. Instead of live bands, synchronized lighting and celebrities galore, the introductions were low key and business-like.

It was a terrible year for the automakers in 2008 with sales in the U.S. down over 3 million units. With profits a distant memory, some of the automakers cut way back on their car show efforts. There were exceptions. Foreign automakers like BMW, VW, Audi, Toyota and Mercedes-Benz sported brand new displays that undoubtedly cost millions of dollars to design, build and assemble. Elsewhere in the show, perhaps in response to the ire that the Domestic Three CEO’s drew from congressmen in D.C. for flying in corporate jets to attend hearings to obtain bridge-loan funds, the Domestic Three makers cut back on their display costs. Surprisingly, some automakers didn’t even show up. Japanese biggie Nissan was a no-show, as were smaller brands like Porsche, Suzuki and Land Rover.

But let’s forget the gloom and doom. The foreign and domestic automakers did have some new product to show and it was educational to attend the many press conferences. This year, like no other, was the year of the engineer. The push to make cars and trucks more Earth-friendly is placing a burden on all makers – foreign and domestic alike – to come up with propulsion systems that give improved gas mileage and also produce less emissions. The automakers certainly now see the task at hand and a massive effort is being made to bring low and zero emission vehicles to the market quickly. While designers and stylists will always be important, presently scientists, engineers and researchers are bearing the brunt of the burden to bring clean and efficient vehicles to market quickly and inexpensively.

Like in past years I had the opportunity to not only listen to the speeches and take photos but also to sit in many of the new vehicles – production and concept cars and trucks alike. It is not an exaggeration to say that the three-day media event at the NAIAS is one of my favorite times of the year. And why not! I get to see fabulous cars and trucks for the first time. I have the option to go up and talk to the bigwigs and designers if I wish. And I relish the chance to sit in the concept cars, a privilege given only to members of the media.

The NAIAS kicked off on Sunday morning with the announcement of the prestigious annual North American Car and Truck of the Year awards. This year’s car recipient was a surprise with the Korean upstart Hyundai winning with the four-door Genesis, a new top-end V-8 powered luxury sedan. Watch out Lexus, Mercedes, Cadillac and other luxury brands, there is new kid on the block. Not as surprising, taking the truck crown for the third time in 12-years was the Ford F-150.

In all, there were over 60 new production and concept vehicle debuts. Space doesn’t permit me to comment on all of the debuts but there were several significant vehicles that bear mentioning. I was most interested in seeing for the first time the several new domestic offerings. Creating the most excitement by far and my candidate for Best of Show is the highly appealing and expressive Cadillac Converj. Created with the Voltec system engineered for GM’s highly anticipated Chevy Volt plug-in electric car, the bean counters at GM should find it reasonably inexpensive to put the Converj into production and give Cadillac a nice competitor to combat the many hybrids offered by Lexus and other luxury makers. Without a doubt, the gorgeous new Caddy drew the biggest crowds at the show.

There were many other “green” cars at the show and I’d like to comment on two significant production vehicles. The Toyota press conference to announce the third generation Prius hybrid was filled to capacity with journalists wanting to get the first look at this segment-leading car. Toyota has produced the Prius since 1997 and has sold over 700,000 units in the States alone. With improvements, the 2010 hybrid will now deliver 50 mpg and offers many new features to attract more buyers. Not to be outdone, Honda introduced the second generation of their Civic hybrid, and an all new car getting the name once used on its two-passenger hybrid – the Insight. Both vehicles are distinctive looking and will undoubtedly be successful in the marketplace.

This post is getting long, but I do want to mention a few vehicles that readers should seek out if a Detroit Auto Show visit is in the works. Audi has a winner with the Sportback concept. Ford may have a homerun with its handsome new Taurus using design elements found earlier in the 2006 Interceptor concept. Close behind the Caddy Converj concept in star appeal is the Volvo S60 concept sedan. It’s Volvo’s version of the popular four-door coupe cars now offered by Europe’s luxury leaders. Caddy has two other winners worth looking at – the SRX crossover replacement and the CTS Sportwagon. Lincoln is finding its groove and the Flex-based crossover MKT is worth the look. If you like the boxy Scion xB, then you will also enjoy looking at Kia’s new sassy crossover, the Soul. Chrysler surprised everyone with a gorgeous looking sedan called the 200C. The car is rumored to be the candidate to replace the present popular 300 sedan. The four-door looker has a hybrid power system, one of three models that the company introduced to the media. The all-new Chevy Equinox and Buick LaCrosse will make those brand’s dealers happy when they arrive this summer. Buick designers have brought back the iconic side sweep found on all Buicks back in the 50s.

Want to take a spin in a low or zero emission vehicles? Be sure to venture into the basement of Cobo Center and be amazed at the “test track” created by the Michigan Economic Development Corporation folks. Amongst a forest of mature trees, water falls and blooming spring flowers is a winding road. It beckons a driver to follow it in a circuitous route the whole length of the huge but lovely space. Quite an experience! The MEDC hopes to promote to worldwide auto executives on hand at the car show Michigan’s strength in R&D and alternative energy innovation.

The Detroit car show opened yesterday and will run until Sunday, January 25. For ticket information and directions, go to www.naias.com or call (248) 643-0250. Tickets are $12 for adults. (Converj Concept image © GM Corp.)