Re: what sells (hint: rarely a product)....LONG

[Stacy Faught <slfaught@domain.elided>]

having spent a few years working in the advanced concept group
at an automaker, I have to disagree with this statement completely.

The Mini is selling well because it is owned and made by BMW.
It is a status symbol that is affordable (if you can afford to have a car
that does not have any legit cargo space--ie-a second car).  The same
could be said of the Miata, but it does not come from a premium carmaker.
BMW has (with a LOT of clever marketing) overcome a somewhat poor
quality image from the early 80's, when it was common knowledge that
BMW's broke frequently, and you were rich indeed if you could afford
to buy AND maintain it.  When you look at focus group studies, the people
who will be buying entry level luxury cars in the future (gen X and Y) 
view BMW as an aspirational brand--they have effectively locked in 
future sales by introducing the Mini at a time when gen X and Y's are getting
to the point they can buy one.

Enough about BMW and Mini---image is great, and people DO appreciate 
good design.  It doesn't mean they will shell out their hard-earned cash for it
though.  A perfect example is this:  market trials and focus groups ALL
loved the new Oldsmobile designs, especially the Alero and Aurora.  About
2/3rds of people surveyed said they would buy such a car with said features
at said price, ect.  That is, UNTILL they were told it was an Oldsmobile.
Even though they have a decent quality image (believe it or not...),
people wouldn't consider one, no matter what the car looks like, is priced
like, or even if it could go 200,000 mi without a tune-up.  Oldsmobile is 
grandpa's car, and it always will be (especially since the brand is now defunct).
Another example----Buick consistently has outstanding quality marks for the
new cars....but I'd never be caught dead in one (I'm sure the same goes for most
people on this list).  To make the point further---people who just want reliable 
transportation (ie--people who hate cars but need one to get to work), would
happily pay 2-3K more for a Honda Accord or Toyota Camry rather than be seen
driving a Buick (arguably, the same car---mushy handling, uninspiring performance, 
boring design....you know what I'm talking about).

Alfa has an undeserved reputation as an unreliable car.  You could 
shake that by pairing it with a marquee brand that is known for quality, and
passing the alfa off as a revived model under a new company.   The GM association 
does not help them in that respect---GenX and Y do not like GM cars in general...
Quite honestly, I don't really expect to see alfa back here in the states, as much as I 
hate to say it.  The talk at the design studios a couple of years ago was that they 
would be sold through Cadillac or Saab dealers (like BMW has done with the Mini).  
The word "Cadillac" will drive away anyone under 60 (except NBA players and drug dealers),
and Saab is just too small of a brand to attract more than 20,000 sales per year.  
GM does not deal in 20,000 per year cars.  I know this from experience---if you can't build it
on a platform that sells over 100,000 per year, then it's not going to be built, unless it has
a Corvette badge on it.

The only other way to shake an image of bad quality is to warranty the heck out of it,
aka Hyundai.  That's a LOOOONG road to travel, and very costly.  After 10 (or so) years of
selling pretty darn good cars in the US, Hyundai is just finally starting to crawl out of the 
ditch they dug with the Scoupe.  Granted, Alfa ain't no Hyundai (and you can quote that..lol),
but the idea is the same.  It would take a dedicated effort to sell Alfa's again here, regardless 
of price.  I just don't see the buisness reason for doing it---how much profit are they really 
going to make, and at what expense?  I know we all love these cars---I sure as hell wish
I could get my hands on a 147---but the reality is that the US market is already overcrowded
with brands.  So much so that 3 have disapeared in the last 10 years, and Mercury may be next.
Peugeot, Fiat, Alfa, Rover/MG, Skoda, Citronen (SP?)--they all make great cars that could compete
in their segments here, but as a buisnessman, give me one compelling reason to spend billions
of dollars to enter an already over-saturated market with little potential return.  Keep in mind that
the executives that make these decisions are only interested in the next 5 or 10 years---until they 
retire.  

Let me say too that I really hope I'm wrong, and I'll be the first in line with a deposit for a new Alfa :)


>I disagree. The Mini is selling well, and yet no automobiles have a
>worse reputation, overall, than British cars in the USA (well, maybe
>the French). I think the market has changed considerably in the last 
>few years, and its no longer British, vs. French, vs German, its the
>idea of the European car vs the domestic or Japanese car. One of the
>reasons why the Mini is so well received is that its quite a different
>beast from the average car. Mini is selling excitement and
>individualism, and it sells. When (if) Alfa comes back, it will be with
>a clean slate. Those of us who read the foreign auto press know what to
>expect as do those of us lucky enough to have rented Alfas in Europe,
>but the average Joe doesn't know what to expect from the current Alfas,
>and I'll guarantee that they would sell well on LOOKS alone, but they
>offer more than looks. they offer good, well built and roomy cars which
>go well, and are practical too. I think the public will respond
>positively. Politicians know, for instance, that the public has a short
>memory, and, in fact, they count on it. I think the Mini is proof that
>auto makers can count on it too.
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