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In my first automotive blog, Automotive Share Shift Assessment, I raised questions about the root cause of the declining market share and fortunes at GM and Ford versus their competition. I received some worthy replies and hope that dialog will continue. I have learned much and have gained new perspectives on the challenges in the automotive market.
In this second automotive blog, I want to focus on opportunities, discuss what consumers want and what options the major suppliers have chosen to pursue.
To start, I would like to learn what others believe are key market needs, such as: safety, power, capacity, fuel efficiency, warranty, low maintenance, etc. These and other market needs have a relative level of importance that varies among users. The automotive companies try to cluster these user preferences in a meaningful way (what they define as a market segment) and then provide products that meet users' needs either more cheaply or better than their competitors.
Very simplistically, if power and capacity are of high value compared to fuel efficiency and warranty, that could be the basic premise for offering pick up trucks. These choices become very complicated when addressing the myriad of elements (power train, steering, passenger comfort, cargo space) of a vehicle. And, it takes much more than a good idea to succeed; profitable execution of even a great idea is extremely difficult!
Ford, GM, Honda, Toyota, Kia, Hyundai have all developed products using these principles. And, as expected, some products have succeeded and some have failed. While we can exhort past successes and failures, I am interested in the wagers that each is making now and will bring to market in the coming years. Will hybrid engines really succeed or go the way of the EV-1? Will electronic gadgetry create a sustainable advantage? What other options exist that create opportunities for the engineering community?
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