An emerging paradigm

A few years ago, back when I worked at a leading OEM, I floated an idea to my supervisor during a casual lunch conversation. He said I was nuts. These few years later, it's becoming clear that, if I am nuts, I'm not alone. I've been sitting on this idea for a little while now, and a couple of articles and auto industry posts of late reminded me to finally put something down.

The Crazy Idea

The idea was that auto manufacturers could not sustain a profitable future based on a "consumer ownership model;" as such, a "loss leader service model" could build up and extend the industry's strengths.

While this idea was my own, I would eventually find that I wasn't the only one to conceive of it. Not by a long shot.

Segmentation 3: Cleaning up Acura

Too many models muddling up the middle. That's a problem with Acura.

• In the space of the 3-series, Acura offers CSX and TSX and TL.
• In the space of the 5-series, Acura offers TL and RL.
• In the space of the 7-series, Acura offers...um...nothing. We've already firmly established that this is not good.

Blend the best of the CSX and TSX into one and run it against the BMW 1. Leave the TL to run in the 3-series space. Any sport mod to the TL can use the X as a "type".

In the 5-series space, run the RL.

Introduce the Acura SL into the flagship space, upwards of $100,000.

Let's grow up - accountability for efficiency supply

I like asparagus.

When I was a kid, I didn’t like asparagus. Or broccoli. Or bok choy. Or a big salad. But, evidently, I’m not a kid anymore, because I like them all now.

When I was a kid, I wanted breakfast cereals full of sugar and food coloring. However, Mother usually made oatmeal. When I was a kid, I’d rather eat candy than healthy food. My parents knew what was good for me, which was a good thing because, as a kid, I sure didn’t. My parents took the responsibility to provide what I needed, not what I wanted, because what I wanted tended to be bad for me, and I didn’t like what tended to be good for me. Consumption in my house was not determined by my child-like demand for junk food - I was consuming healthier food because my parents were responsible for the supply.

Segmentation Part 2 - Acura needs a true flagship

Our first installment in this series introducing luxury branding and segmentation, presented the A8 flagship as a key component in Audi's turnaround, as well as a critical piece of the segmentation puzzle. I'd like to look at the Acura brand through the lens of segmentation to reveal the not-so-hidden fundamentals that provide a constructive answer to the question "why isn't Acura - with all its technical and engineering quality - more recognized as a luxury brand?" I'm not even going to entertain discussion of "near luxury" as a segment (does Honda really need an entirely new brand to compete with a Chrysler 300 or a Buick or a Nissan Maxima? I don't think so either).

Audi & Segmentation

Audi recently announced that its 2011 A8 would be 130mm longer than it already is, ensuring that its flagship remains the quintessential expression of Audi luxury. It reminded me of an article I drafted some time ago but never got around to sharing, and prompted me to finally share it, so here it is.

Audi had been a premium brand with its popular 4000 and 5000 series sedans in the 80s, but went through some tough times in the late 80s/early 90s. Down for the count, the turnaround is a nearly peerless business success story. Audi's revitalization can't be simplified as though it happened overnight, and I certainly had no seat on their board by which I can reveal any secrets, but one prong of their attack can be readily identified - a clearly defined segmentation strategy.

GM is becoming more transparent...we can see right through them

So, GM is announcing that it has "paid back its government loans, in full, ahead of schedule."

Really? Bnet doesn't count the beans quite that way at all. Apparently, law makers are calling it misleading.

I Love Honda!

At the Auto Show, we met Dave Tsai from 2nd Glance Media, and he talked about the upcoming Import Expo at Mosport on July 11, 2010.

Very popular in Japan, this is the first time this show is being put on in all of North America, and it's right in southern Ontario, which is most appropriate since 2nd Glance runs "I Love Honda!", the Honda Civic is Canada's number-one selling vehicle 12 years running, and it's built in Alliston, ON.

In all Honda vehicles there beats the heart of a racecar - go see them in action on the track!