Automakers Are Running Out Of Options To Keep Sales Up

Very true.

And like the sedan craze, the crossover craze is getting close to critical mass as well.

The simple fact is that the number of manufacturers needs to decrease.

PSA, Mitsubishi, Fiat, Maserati, Alfa Romeo, Dodge, Chrysler, Opel, Seat, and others simply need to die to reduce excess.

Most of that list sell almost no cars here - so they are not part of this problem.

Eventually - someone will produce a really well styled car - (Remember the original Monte Carlo for instance) - and regardless of class - it will sell. It seems that GM - which in Bill Mitchells day was the styling leader - can only produce good looking concept Vehicles - they loose too much when converted to production models. Ford is styled by Tonka. FCA does not really produce cars anymore.

Just to add to what TomM said, the 1964 ("and a half") Ford Mustang was an instant hit, and remains an icon to this day. What made it stand out at the time?
+ Gorgeous styling <--- A HUGE DEAL!!!
+ Some amenities like vinyl (fake leather) interior when the competition had cloth
+ An accessible price

It was a car most people could afford, but it came across as being worth significantly more than what you paid for it.

In other words, the "average American" doesn't want to feel like an average American. They want to feel special, and if a noteworthy car can help that along, then it'll sell.

It's a worldwide problem, dementia dude.

I don't think the SUV is a craze. Now that there are so many CUVs that drive like cars without a huge mileage penalty the class has largely replaced sedans in the mainstream market. You cannot deny that a cuv is a more versatile vehicle and is a easy choice if you are not terribly concerned about styling and driving dynamics.

The other thing we haven't addressed is the principle of "Consumer Capitalism." It's a type of social engineering that makes for a booming economy based on some fundamental principles:

(1) Manufacturers make affordable and disposable products. They're not intended to last a lifetime. This keeps manufacturers busy manufacturing. It also keeps the masses gainfully employed. Manufacturers always look for new ways to inspire the masses to part with their money.

(2) The masses must have sufficient disposable income to continue spending LOTS of money on products that they'll eventually discard and have to repurchase. Also, the masses need to be sufficiently motivated to spend their money in new ways, on new products and services. These masses become the "consumers" of the manufacturers' output.


Study "Consumer Capitalism" and you'll discover it was invented in the US. It's one of the major contributors for getting the US out of The Great Depression. It's responsible for the post-depression economic boom that was exclusive to the US at the time. Other countries noticed America's miraculous lead, and sent representatives to the US to learn their secret. The US government shared their knowledge, and Consumer Capitalism swept across much of the globe.

But as times have changed, the gap between the poor and the rich has widened, and the Middle Class America with piles of disposable income has shrunk. No, this does not mean the US is in a sh*t-hole of economic ruin, but it does mean the old Consumer Capitalism model, which is employed in most industrialized countries, is showing its cracks, and it can no longer operate with the gusto it once enjoyed.

I believe we're on the leading edge of experiencing a significant shift in our purchasing trends and abilities. Remember when people used to buy a new car every few years? Remember when manufacturers changed their models EVERY year? Today, the average car on the road is 11 years old, and manufacturer's car cycles are somewhere between 4 to 7 years (with a midline "refresh" or two). The whole Consumer Capitalism train is slowing down, and we're feeling it. And not just in the US.

Those who hope to bring back "the good old days" don't realize it's like trying to transform a 60-year-old man into a spry teen-ager: it can't be done, no matter how much you want it, no matter how hard you try. The answer isn't to try to recreate the past (e.g., sell still more cars; keep ramping up auto production). The answer is to adapt to the new reality (e.g., PC sales have slowed, but mobile devices like tablets and smartphones have boomed). Adapt to, and take advantage of the changing landscape, rather than clinging to the past and trying (in vain) to prevent change.

Steve:

Your comments are on target again !!!!

Not good for manufacturers but great for consumers while it lasts. Lower prices to keep factories open and more car/performance for the money to beat competition. If you think manufacturers are feeling squeezed I can only imagine what dealers must be thinking about the future.

Approaching a time to consider a new ride, I would welcome a price war. Seems that dealer cash is on the rise allowing well below invoice pricing across market. Unfortunately the dealer cash amounts can only be estimated. Truecar seems to be the best shopping resource.

I love Truecar because it actually inflates prices. It does the total opposite of what it says.

When a Truecar idiot walks in and shows his phone, we write up the sale because a sucker wanted to overpay.

A buyer is rarely able to literally buy a car "below invoice" because the invoice to the dealer and the cost of the car to the dealer are two different things often separated by a couple thousand dollars with the list price a couple thousand higher than invoice.

If a dealer lets you have the car for invoice, all that means is that there is a rebate to the dealer.

Manufacturers have increased the invoice price and have moved to providing a kickback to dealers after the sale.

Not every vehicle has a rebate though. Try getting a rebate on a BMW M2. It's not a Toyota Carolla.
True Car is good and bad. People look at last months sales and incentives change each month. They could get pissed not getting the "fair" price because an incentive went away or they over pay because there is a new incentive.