Jan. 4 (Bloomberg) — The preceding year, the worst in a
decade for the U.S. auto industry, nevertheless brought a most
pleasant surprise from General Motors Corp.
GM managed to turn out a reworked Chevrolet Malibu, the
first family sedan in memory from a U.S. automaker whose looks,
performance and quality will allow it to compete for customers
against Honda Motor Co.s Accord and Toyota Motor Corp.s Camry.
“Its a refreshing glimpse of what GM used to be, said
Art Spinella, president of CNW Marketing Research in Bandon,
Oregon.
GMs winning designs were among the industrys exceptions.
Automakers these days are building too many models that are
oversized, out-of-date or undistinguished for a public that
increasingly demands the very latest in terms of style, fuel
efficiency and safety. While foreign automakers seem to have the
lions share of inspired cars, they too produced their share of
stinkers.
The racy styling of the new Cadillac CTS sedan was another
bright spot from GM, helping to neutralize some of the sting
from the automakers 5.9 percent decline in U.S. vehicle sales
for the year, according to year-end figures released yesterday.
Ford Motor Co., struggling like GM to reverse market-share
and financial losses, did itself proud with the introduction of
the Ford Edge station wagon. (Sorry, I cant get used to Fords
euphemistic description of the model as a “crossover utility
vehicle.) Edge sales topped 130,000 for the year.
Whatever acclaim Fords Edge received, the same couldnt be
said of Fords restyled Focus compact, which is one of the
homeliest cars from the No. 2 U.S. automaker in ages. One or
more of Fords stylists needs career counseling.
Poor Performer
Chrysler LLC, which was spun off from Daimler AG as a
closely held company last year and is 80.1 percent owned by
Cerberus Capital Management LP, disappointed generally last year
with sales down 3.1 percent. Its Chrysler Aspen large sport
utility vehicle flopped and soon may be added to the list of
four vehicles that Chrysler said it will discontinue.
Daimler introduced its new Mercedes C-Class sedan this year
in two versions, sport and luxury. The car is off to a fast
start, in terms of sales, justified by its handsome design. But
many in the business say that the new C-Class, while improved,
wont worry BMW, whose 3-Series still outclasses all comers.
Chryslers new Town and Country minivan won plaudits from
David E. Davis Jr., editor of Winding Road, a Web-based
automotive magazine. “At that price, its great to be able to
push a button and make the seat disappear, he said about the
models $595 optional retractable-seat feature.
Pricey Piece
At the other end of the prestige spectrum, Davis sounded
even more passionate about Audis new $110,000 R8, a midengine
supercar that can run with the likes of Porsche and Ferrari and
will elevate pulses wherever it goes. “Its slick, fast and you
can buy three of them for what youll pay for a Ferrari, he
said. “A peach of a car.
Nissan Motor Co. did quite well last year with its new
Versa subcompact, which takes advantage of growing consumer
affection for low-cost, high-mileage vehicles. Nissans
redesigned and slightly larger Sentra fell flat, probably
because its new look couldnt win enough customers from Honda
Civic and Toyota Corolla.
“Nissan already is talking about an update of Sentra for
2009, which tells you how poorly its doing, said Alan Baum,
director of automotive industry forecasting at Planning Edge in
Birmingham, Michigan.
Pickups Stumble
Sales of full-size pickup trucks were bleak for GM, Ford
and Chrysler, in light of high gasoline prices and the plunge in
housing values. But Toyota Motor Corp.s new Tundra managed a 58
percent increase over the model it replaced, albeit with heavy
discounts. Sales of other large, heavy Toyota models such as the
Sienna minivan and 4Runner SUV were down.
Honda recorded a rare strikeout in 2007 with the gas-
electric version of its popular Accord sedan, prompting the
Japanese automaker to discontinue production. Honda had tuned
the 253-horsepower propulsion system for power and later
discovered that customers usually expect hybrids to save
gasoline. The automaker is promising to introduce a new hybrid-
powered small car in 2009.
On the plus side, Honda introduced the eighth generation of
its Accord sedan and coupe. The coupe especially is one of the
most comely vehicles the automaker has ever designed, a reason
why Accord sales were up 11.5 percent last year, helping Honda
achieve an overall 2.5 percent increase in U.S. sales, its 11th
consecutive annual increase.
While Honda and other non-U.S. automakers had to contend
with a weakening U.S. dollar that made their products less
competitive, the worst omen for all automakers selling in the
U.S. is the growing risk of recession, causing some forecasters
to cut 2008 sales estimates to the low 15-million range,
compared with sales of 16.1 million in 2007.
If the most dire forecasts come true, automakers that cant
produce their share of standouts will feel more than their share
of pain.
(Doron Levin is a Bloomberg News columnist. The opinions
expressed are his own.)
To contact the writer of this column:
Doron Levin in Southfield, Michigan, at
