Glenn Mercer

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  • On the Need for Better Auto Sales Metrics
    I cannot say how much I agree with this post. Does Wal-Mart report unit sales of socks each quarter? Does Armani seem doomed because it sells only 1% as many suits as Value City? The auto industry, with its fascination with units, lumps a Maserati with a Mazda and a Maruti as all the same thing. Thus we get frenzied pursuit of developing markets, which represent "all the growth." In units, yes, but GM itself has forecast that ten years from now in REVENUE terms the developed world's share of total automotive sales will have hardly budged at all, even as its UNIT share falls. I'd rather be selling 50 Porsche Turbo's a year than 50,000 Tata Nano's...
    Sep 05 11:56 am |Rating: 0 0 |Link to Comment |View article
  • Will Hyundai's Luxury Car Be Like the VW Phaeton?
    I think the big difference here is the lack of a new dealership channel. It is hard to sell a $70,000 VW, a $50,000 Toyota, a $40,000 Hyundai, etc. in general: but to sell them in the existing dealerships is very very tough. When one is selling an upscale vehicle it is crucial to reassure the buyer that he/she is making a very smart decision, that he/she is now one of the elite club, etc. Thus a BMW dealer's muted lighting, soft music, pile carpets, and espresso machines. How does one sell a $45,000 Genesis in a dealership characterized by (sorry for the exaggeration here) linoleum floors, soda vending machines, and nervous buyers waiting outside the F&I office to see if they qualified for the loan? Surveys have shown that as one spends more on a car the dealership matters more and more, relative to the car, and for Hyundai to not launch Genesis in a separate store, or VW not to launch Phaeton in a separate store (versus what Lexus did), really means one starts with two strikes against you....
    Aug 22 13:05 pm |Rating: 0 0 |Link to Comment |View article
  • Is There Any Hope for the Big Three Auto Makers?
    Beats me how my one comment got printed several times! Sorry about that, it was not THAT profound a statement!
    Jul 02 10:01 am |Rating: 0 0 |Link to Comment |View article
  • Is There Any Hope for the Big Three Auto Makers?
    Much as I hate to say this, it may be time to redefine what we mean by the Big Three. Maybe the Big Six?
    Jul 02 09:59 am |Rating: 0 0 |Link to Comment |View article
  • Is There Any Hope for the Big Three Auto Makers?
    Much as I hate to say this, it may be time to redefine what we mean by the Big Three. Maybe the Big Six?
    Jul 02 09:59 am |Rating: 0 0 |Link to Comment |View article
  • Is There Any Hope for the Big Three Auto Makers?
    Much as I hate to say this, it may be time to redefine what we mean by the Big Three. Maybe the Big Six?
    Jul 02 09:59 am |Rating: 0 0 |Link to Comment |View article
  • Is There Any Hope for the Big Three Auto Makers?
    Much as I hate to say this, it may be time to redefine what we mean by the Big Three. Maybe the Big Six?
    Jul 02 09:59 am |Rating: 0 0 |Link to Comment |View article
  • Is Anything Worth Owning in the Auto Industry?
    A few comments:
    1. Re Prius's looks, I was unaware anyone was buying the car for its styling. Leaving aside opinions about looks, the car has the fastest inventory turns in the USA at present, staying on dealer lots just long enough to be washed, prepped, and delivered. About one day. Love the Prius or hate it, it is a sales homerun for Toyota.
    2. Conversely, while I think the Honda product line has a lock on success for the foreseeable future (after all, knocking off the F-150's sales crown is stunning!), Acura is arguably in some disarray. Only one of the Japanese upmarket brands has broken into the "Tier One" luxury segment, and that is Lexus (with a vengeance of course!). Acura continues to languish somewhat and arguably has been passed by Audi.
    3. A key asset every Japanese company has, that is often overlooked, is the reservoir of high-mpg models they have "back home" that can be brought to the USA quickly if fuel prices stay high. Thus Toyota did not need to develop Scion from scratch, but just adapt domestic models for USA sales. Nissan brings its Cube here next year. Etc. Chrysler has no such reservoir; Ford could tap Mazda for small cars but to date seems not willing to do so; and GM has Daewoo in Korea, which should be able to deliver the goods (though the Aveo has been a real dud, I will admit). Unfortunately for the Big Three, the flow does not reverse: there is really no market anywhere in the world desperate for large pickup trucks.
    Jun 27 10:11 am |Rating: 0 0 |Link to Comment |View article

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