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While the sales charts of most automakers worldwide are drenched in red, there are some telling anomalies.
General Motors reports that revenue in 2008 fell by 17% – resulting in a loss of a mammoth $30.9 billion USD. Conversely, the high performance division of Mercedes Benz, AMG, which recently made its debut in India, reported a record year.
Worldwide sales for AMG models in 2008 increased 19%, and while sales in markets such as China and Brazil went through the roof, the credit crunch hit US still accounted for the biggest chunk at 38% – this is despite the fact that the largest car market in the world had its worst calendar year in almost twenty. AMG’s arch rival, the M division of BMW, also reported its second best year in history. And, at the absolute top of the pie, Ferrari recorded its best year ever.
Now, it’s safe to say that prospects all round are perhaps not as good for 2009, and while comparing GM and Ferrari couldn’t be more like comparing apples and oranges, the underlying point is that people will always buy cars that are desirable. Yes, the economy is less likely to have an impact on the buying power of someone in the market for a Ferrari, and yes the volumes of AMG and GM are at two completely different ends of the spectrum, but, as an automaker, if you want to survive, the fact remains that you have to build cars that people actually want to own and drive.
In the process of turnaround and recovery, automakers need to ensure that they focus on building cars that truly appeal to buyers, and not merely to their own accounting departments. People want more than just transportation – they want cars that are a reflection of their personality. And this appears more true today than ever before. Even in India, where value is still a priority, we’re seeing higher end versions within a model range outselling base models.
By that rationale, perhaps the most ominous sign coming out of GM recently is news that they’ve disbanded their High Performance Vehicle Operations (HPVO), which was responsible for developing supercar killers like the brilliant Cadillac CTS-V. For the time being, GM feels it can better use these engineers elsewhere, and states that the division will be resurrected once the finances are back in order. And, while in the short term, a move such as this probably makes sense, you have to worry when an automaker is forced to stop development – even, if in this case, it’s probably more indicative of a change of focus.
As automakers the world over are scrambling to change focus, lets hope they continue to develop and build cars that are truly desirable. And, as we come to the end of this financial year, let’s hope for more encouraging news across the board in 2009-10. |
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