Detroit Free Press : The 7 Models that Matters . . .
09-05-06, 07:49 AM
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Detroit Free Press : The 7 Models that Matters . . .
Published: August 31. 2006 3:00AM
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MARK PHELAN: 7 models that matter
Ford's Edge, GM's Silverado, Chrysler minivans carry firms' fortunes
August 31, 2006
BY MARK PHELAN
Chevrolet Silverado. Ford Edge. Chrysler Town & Country.
Three new vehicles that could be the difference between overtime and layoffs, profit sharing or plant closures a year from now.
The future of General Motors, Ford, the Chrysler Group and the men and women who work for them hinges on these new models.
The Silverado full-size pickup is GM's best-selling vehicle, generating billions of dollars annually. The all-new model that goes on sale this fall faces tough competition, high gas prices and uncertainty about demand for big trucks. GM has responded to those challenges with improved fuel economy, new features and assembly plants primed to build nearly a million Silverados and GMC Sierras a year.
Ford Edge sales will be a small fraction of that, but the stylish compact SUV is Ford's best hope to show that its survival strategy includes popular new vehicles as well as layoffs and buyouts.
Chrysler may be in the toughest position of all. The company has held its leadership in the minivan market for two decades with a stream of innovations. The Town & Country and Dodge Caravan pose the stiffest test yet for the young design whiz who penned the successful Chrysler 300 sedan.
Those three and four other key model lines debuting over the next 12 months -- the Toyota Tundra big pickup, Honda Accord and Nissan Altima midsize sedans and radically new Michigan-built SUVs from Saturn, GMC and Buick -- could account for 2.5 million sales a year. That's the output of about a dozen assembly plants and tens of thousands of jobs.
None of these new cars and trucks is a sure thing.
Chevrolet Silverado
Vehicle type: Full-size pickup.
Why it matters: The Silverado full-size pickup is GM's best-selling vehicle, and it's a cash cow that supports the whole corporation. The new model arrives at a time of high gas prices and tough new competition, but GM is promoting its fuel economy and refinement heavily.
It's going to "be a knife fight for full-size pickup sales," said Jim Hall, vice president for industry analysis at consultant AutoPacific.
The Silverado "is GM's tipping point for 2007," said Rich Homan, editor in chief of Edmunds' InsideLine Web site. "The Silverado has been all but invulnerable for a number of years. If the new model isn't what the customer wants, it's trouble."
The Silverado, and its upscale cousin, the GMC Sierra, go on sale this fall.
Key selling points: Class-leading highway fuel economy of 22 m.p.g., workhorse capability and a practical and attractive interior.
Bottom line: The fate of the world, or at least GM's turnaround, hinges on the Silverado's success.
Toyota Tundra
Vehicle type: Full-size pickup.
Why it matters: The biggest and most powerful pickup Toyota has ever built, the all-new Tundra will roll out of assembly plants in Indiana and Texas. It's Toyota's most direct and serious challenger to perennial moneymakers like the Dodge Ram, Ford F-150 and Chevrolet Silverado. The Tundra goes on sale in the first half of 2007.
"Toyota doesn't need the Tundra for its profits, but it matters for the company's image," said Michelle Krebs, freelance journalist and North American Car and Truck of the Year juror. "The Tundra is important to Toyota's goal of being perceived as a full-line automaker."
It's anybody's guess how well the Tundra will sell versus the perennial favorites, but Toyota can mix production of the Tundra with other models, so it's less vulnerable to slow sales than Ford or GM, Hall said.
Key selling points: Toyota name and reputation. Powerful V8 engine and big-truck towing capacity.
Bottom line: Toyota is a marginal player in full-size pickups. The Tundra could change that for good.
Ford Edge
Vehicle type: Compact SUV.
Why it matters: The stylish Edge is Ford's competitor to popular models like the Honda CR-V and Nissan Murano. The Edge is considered a crossover for its car-like engineering and is based on the same structures as Ford's strong-selling Fusion midsize sedan. Key features include the company's new 265-horsepower V6, optional all-wheel-drive and a six-speed automatic transmission. The Edge goes on sale late this year.
Ford executives call the Edge the automaker's most important vehicle coming this year.
"It's important because Ford doesn't have many new vehicles coming, and the company sure could use a winner," Krebs said. "It looks like a really good vehicle."
Said AutoPacific's Hall, "Ford has a lot riding on the Edge," which could give it a boost by snagging sales from import brands.
"It's my wait-and-see vehicle," Homan said. "Ford needs to make its case. There's a lot of good competition out there."
Key selling points: Styling, power, probable low base price and good fuel economy.
Bottom line: The best hope Ford has to reverse falling sales in its vital truck business. Lincoln will also offer a version, the MKX.
Honda Accord
Vehicle type: Midsize sedan.
Why it matters: It's the car that defines Honda and is the second-largest selling car in the United States next to the Toyota Camry. Toyota tried to move into the Accord's turf with its curvy new Camry this year. Honda must return the serve, but insiders who have seen the upcoming Accord say its looks may be a bit too conservative. The Accord goes on sale in about a year; a picture was unavailable Wednesday.
"It's the car that makes Honda what it is, but it's no longer enough just to build a very good front-wheel-drive sedan," Homan said. "There are more players in the game today that are very good, including the Koreans.
"Honda's going to have to consider styling and pay more attention to price than before. The midsize sedan market is price, price, price."
Key selling points: Reliability; huge, loyal owner base; perception that Honda is the smart choice for drivers who want more style and performance than a Camry offers.
Bottom Line: Expectations are high. The Accord will need drop-dead looks, good performance and a low base price to meet them.
Nissan Altima
Vehicle type: Midsize sedan.
Why it matters: It doesn't get much attention, but the Altima is by far Nissan's best-selling model, and was the fifth best-selling car in the United States last year. The new version is bigger and promises a quieter and more refined ride. Sales begin this fall.
"It's Nissan's dominant car," Homan said. "With the Altima's styling and performance, there's no reason for Nissan not to be back at the head of the table with Honda and Toyota."
The new car's looks may be too similar to the outgoing model, however.
Said journalist Krebs, "My question is whether Nissan is playing it too safe with the styling. The company's turnaround was accomplished with head-turning, high-risk styling. It looks like they're having a hard time figuring out what the second act is."
Key selling points: Styling, power, price.
Bottom line: The Altima is the first test of whether Nissan's revival has legs.
Chrysler Town & Country, Dodge Caravan
Vehicle type: Minivan.
Why they matter: Chrysler invented the minivan and it remains the sales leader, but Honda and Toyota have eroded its dominance. Chrysler sources say the new minivans will be more stylish, but do they also have another winning innovation like stow-and-go seating up their sleeves? The new minivans go on sale in 2007.
"The minivan market is brutal," Hall said. "Chrysler has the most to lose to the new players because it is the industry leader."
The minivans are "bread-and-butter vehicles for Chrysler," Krebs said. "It's risky if they get too radical with the styling. The minivan market doesn't like that."
Key selling points: Loyal owners, high quality, history of inventing popular new features.
Bottom line: More striking looks may be nice, but it could take another breakthrough feature like the dual sliding doors pioneered to keep the Town & Country, Dodge Caravan and Grand Caravan on top.
Buick Enclave, GMC Acadia, Saturn Outlook
Vehicle type: Midsize SUV.
Why they matter: GM's trinity of new SUVs are vital to three of its brands, and should give it fuel-efficient competitors to hot-selling models like the Honda Pilot, Lexus RX330 and Toyota Highlander. Standard equipment will include a six-speed automatic transmission and curtain air bags. The Outlook and Acadia go on sale this year; the Enclave follows in 2007.
"I've seen them, sat in them and looked over their specifications, and I can't help believing in them," Homan said. "They look like real players. They've got the styling to get them in the door; the rest is up to price, quality and GM's dealers."
Krebs noted that the SUVs "are important because they get GM into a market segment that's growing rapidly." Some people call such SUVs crossovers because their basic engineering is more like a car than a pickup.
Key selling points: Interior room and flexibility, car-like ride and fuel efficiency, V8 available in some models.
Bottom line: They look good inside and out, and give GM its first credible entries in a growing segment. Could boost GM sales at the expense of arch competitor Toyota.
Auto news
MARK PHELAN: 7 models that matter
Ford's Edge, GM's Silverado, Chrysler minivans carry firms' fortunes
August 31, 2006
BY MARK PHELAN
Chevrolet Silverado. Ford Edge. Chrysler Town & Country.
Three new vehicles that could be the difference between overtime and layoffs, profit sharing or plant closures a year from now.
The future of General Motors, Ford, the Chrysler Group and the men and women who work for them hinges on these new models.
The Silverado full-size pickup is GM's best-selling vehicle, generating billions of dollars annually. The all-new model that goes on sale this fall faces tough competition, high gas prices and uncertainty about demand for big trucks. GM has responded to those challenges with improved fuel economy, new features and assembly plants primed to build nearly a million Silverados and GMC Sierras a year.
Ford Edge sales will be a small fraction of that, but the stylish compact SUV is Ford's best hope to show that its survival strategy includes popular new vehicles as well as layoffs and buyouts.
Chrysler may be in the toughest position of all. The company has held its leadership in the minivan market for two decades with a stream of innovations. The Town & Country and Dodge Caravan pose the stiffest test yet for the young design whiz who penned the successful Chrysler 300 sedan.
Those three and four other key model lines debuting over the next 12 months -- the Toyota Tundra big pickup, Honda Accord and Nissan Altima midsize sedans and radically new Michigan-built SUVs from Saturn, GMC and Buick -- could account for 2.5 million sales a year. That's the output of about a dozen assembly plants and tens of thousands of jobs.
None of these new cars and trucks is a sure thing.
Chevrolet Silverado
Vehicle type: Full-size pickup.
Why it matters: The Silverado full-size pickup is GM's best-selling vehicle, and it's a cash cow that supports the whole corporation. The new model arrives at a time of high gas prices and tough new competition, but GM is promoting its fuel economy and refinement heavily.
It's going to "be a knife fight for full-size pickup sales," said Jim Hall, vice president for industry analysis at consultant AutoPacific.
The Silverado "is GM's tipping point for 2007," said Rich Homan, editor in chief of Edmunds' InsideLine Web site. "The Silverado has been all but invulnerable for a number of years. If the new model isn't what the customer wants, it's trouble."
The Silverado, and its upscale cousin, the GMC Sierra, go on sale this fall.
Key selling points: Class-leading highway fuel economy of 22 m.p.g., workhorse capability and a practical and attractive interior.
Bottom line: The fate of the world, or at least GM's turnaround, hinges on the Silverado's success.
Toyota Tundra
Vehicle type: Full-size pickup.
Why it matters: The biggest and most powerful pickup Toyota has ever built, the all-new Tundra will roll out of assembly plants in Indiana and Texas. It's Toyota's most direct and serious challenger to perennial moneymakers like the Dodge Ram, Ford F-150 and Chevrolet Silverado. The Tundra goes on sale in the first half of 2007.
"Toyota doesn't need the Tundra for its profits, but it matters for the company's image," said Michelle Krebs, freelance journalist and North American Car and Truck of the Year juror. "The Tundra is important to Toyota's goal of being perceived as a full-line automaker."
It's anybody's guess how well the Tundra will sell versus the perennial favorites, but Toyota can mix production of the Tundra with other models, so it's less vulnerable to slow sales than Ford or GM, Hall said.
Key selling points: Toyota name and reputation. Powerful V8 engine and big-truck towing capacity.
Bottom line: Toyota is a marginal player in full-size pickups. The Tundra could change that for good.
Ford Edge
Vehicle type: Compact SUV.
Why it matters: The stylish Edge is Ford's competitor to popular models like the Honda CR-V and Nissan Murano. The Edge is considered a crossover for its car-like engineering and is based on the same structures as Ford's strong-selling Fusion midsize sedan. Key features include the company's new 265-horsepower V6, optional all-wheel-drive and a six-speed automatic transmission. The Edge goes on sale late this year.
Ford executives call the Edge the automaker's most important vehicle coming this year.
"It's important because Ford doesn't have many new vehicles coming, and the company sure could use a winner," Krebs said. "It looks like a really good vehicle."
Said AutoPacific's Hall, "Ford has a lot riding on the Edge," which could give it a boost by snagging sales from import brands.
"It's my wait-and-see vehicle," Homan said. "Ford needs to make its case. There's a lot of good competition out there."
Key selling points: Styling, power, probable low base price and good fuel economy.
Bottom line: The best hope Ford has to reverse falling sales in its vital truck business. Lincoln will also offer a version, the MKX.
Honda Accord
Vehicle type: Midsize sedan.
Why it matters: It's the car that defines Honda and is the second-largest selling car in the United States next to the Toyota Camry. Toyota tried to move into the Accord's turf with its curvy new Camry this year. Honda must return the serve, but insiders who have seen the upcoming Accord say its looks may be a bit too conservative. The Accord goes on sale in about a year; a picture was unavailable Wednesday.
"It's the car that makes Honda what it is, but it's no longer enough just to build a very good front-wheel-drive sedan," Homan said. "There are more players in the game today that are very good, including the Koreans.
"Honda's going to have to consider styling and pay more attention to price than before. The midsize sedan market is price, price, price."
Key selling points: Reliability; huge, loyal owner base; perception that Honda is the smart choice for drivers who want more style and performance than a Camry offers.
Bottom Line: Expectations are high. The Accord will need drop-dead looks, good performance and a low base price to meet them.
Nissan Altima
Vehicle type: Midsize sedan.
Why it matters: It doesn't get much attention, but the Altima is by far Nissan's best-selling model, and was the fifth best-selling car in the United States last year. The new version is bigger and promises a quieter and more refined ride. Sales begin this fall.
"It's Nissan's dominant car," Homan said. "With the Altima's styling and performance, there's no reason for Nissan not to be back at the head of the table with Honda and Toyota."
The new car's looks may be too similar to the outgoing model, however.
Said journalist Krebs, "My question is whether Nissan is playing it too safe with the styling. The company's turnaround was accomplished with head-turning, high-risk styling. It looks like they're having a hard time figuring out what the second act is."
Key selling points: Styling, power, price.
Bottom line: The Altima is the first test of whether Nissan's revival has legs.
Chrysler Town & Country, Dodge Caravan
Vehicle type: Minivan.
Why they matter: Chrysler invented the minivan and it remains the sales leader, but Honda and Toyota have eroded its dominance. Chrysler sources say the new minivans will be more stylish, but do they also have another winning innovation like stow-and-go seating up their sleeves? The new minivans go on sale in 2007.
"The minivan market is brutal," Hall said. "Chrysler has the most to lose to the new players because it is the industry leader."
The minivans are "bread-and-butter vehicles for Chrysler," Krebs said. "It's risky if they get too radical with the styling. The minivan market doesn't like that."
Key selling points: Loyal owners, high quality, history of inventing popular new features.
Bottom line: More striking looks may be nice, but it could take another breakthrough feature like the dual sliding doors pioneered to keep the Town & Country, Dodge Caravan and Grand Caravan on top.
Buick Enclave, GMC Acadia, Saturn Outlook
Vehicle type: Midsize SUV.
Why they matter: GM's trinity of new SUVs are vital to three of its brands, and should give it fuel-efficient competitors to hot-selling models like the Honda Pilot, Lexus RX330 and Toyota Highlander. Standard equipment will include a six-speed automatic transmission and curtain air bags. The Outlook and Acadia go on sale this year; the Enclave follows in 2007.
"I've seen them, sat in them and looked over their specifications, and I can't help believing in them," Homan said. "They look like real players. They've got the styling to get them in the door; the rest is up to price, quality and GM's dealers."
Krebs noted that the SUVs "are important because they get GM into a market segment that's growing rapidly." Some people call such SUVs crossovers because their basic engineering is more like a car than a pickup.
Key selling points: Interior room and flexibility, car-like ride and fuel efficiency, V8 available in some models.
Bottom line: They look good inside and out, and give GM its first credible entries in a growing segment. Could boost GM sales at the expense of arch competitor Toyota.
09-05-06, 08:57 AM
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I'm very curious to see what Chrysler will do with their minivans.
The Odyssey and Sienna are now very hard to beat.
As for the new Silverado and Sierra, I don't think the new ones will be good enough not to take a big hit from the new Tundra. It's a good thing for GM that truck buyers are extremely loyal to certain makes (a Chevy truck lover will usually stay with Chevy and a Ford truck lover will usually stay with Ford).
But if a buyer were to actually buy the BEST truck regardless of its name then the new Tundra would mean the ultimate demise of Ford and GM.
I think the Tundra will become a fast sellout since Toyota's capacity will only be about 200,000 Tundra's a year. That will help GM, Ford, Dodge right there.
Good thing for loyalty GM and Ford.
The Odyssey and Sienna are now very hard to beat.
As for the new Silverado and Sierra, I don't think the new ones will be good enough not to take a big hit from the new Tundra. It's a good thing for GM that truck buyers are extremely loyal to certain makes (a Chevy truck lover will usually stay with Chevy and a Ford truck lover will usually stay with Ford).
But if a buyer were to actually buy the BEST truck regardless of its name then the new Tundra would mean the ultimate demise of Ford and GM.
I think the Tundra will become a fast sellout since Toyota's capacity will only be about 200,000 Tundra's a year. That will help GM, Ford, Dodge right there.
Good thing for loyalty GM and Ford.
09-06-06, 02:54 PM
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Is it me or is this guy very biased toward the american automakers? I feel like he is always throwing a comment here or there. EG. Instead of saying "The Ford Fusion..." it is "The strong selling Ford Fusion". He will give the "others" props but he seesm to pepper it with mention of their american counterparts.
He even asked a U of M professor he interviewed who drove a Lexus if the american car company's didn't make a car that suited his needs.
I read a lot of his articles before moving to Michigan and was expecting a lot more people to have his attitude toward me for driving a foreign vehicle. Some people are even surprised that people have an anit-american car attitude out in California. Oh well.
He even asked a U of M professor he interviewed who drove a Lexus if the american car company's didn't make a car that suited his needs.
I read a lot of his articles before moving to Michigan and was expecting a lot more people to have his attitude toward me for driving a foreign vehicle. Some people are even surprised that people have an anit-american car attitude out in California. Oh well.
09-06-06, 07:04 PM
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