Jan. 18 Weekly Open Thread
by Cookie the Dog's Owner
on January 18, 2010
As usual, this is the place for conversation that doesn't belong anywhere else.
Some possible food for thought:
- Volkswagen just became the majority owner of Suzuki. The two companies plan to share components and parts development costs, and Suzuki will now buy its diesels from VW. Me, I'd like to see a "Samurai Edition" New Beetle with accessory katanas.
- Autoblog speculates that one of the Chinese or Indian manufacturers may try to sell cars in the U.S. in some fashion other than through the traditional franchised dealership. What might that look like? Factory-direct storefronts? Cars at Wal-Mart or Target? Would you buy a vehicle that way?
- It appears that even the most last-ditch efforts to save Saab have come to nought, and the brand will cease to exist. GM vice-chairman Bob Lutz delivers the eulogy: “If you want to earn a small fortune on Saab, you have to start with a huge fortune.” The Saab fans don't call him "Mr. Sensitivity" for nothing, I suppose.
- The Chinese government's approval is required before GM can sell Hummer to a Chinese buyer. That approval is being held up indefinitely by unspecified "regulatory issues," while Hummer production has ceased. Those of you inclined to mourn the end of the world's most extroverted and in-your-face line of trucks can borrow some Kleenex from the Saab fans if they have any left.
Chris Hafner on January 18, 2010 at 09:00 PM
"Autoblog speculates that one of the Chinese or Indian manufacturers may try to sell cars in the U.S. in some fashion other than through the traditional franchised dealership. What might that look like?"
Why not online? I help friends buy their cars, and our stated goal is to spend as little time in the dealership as possible. It's already the smart play to work with the Internet or fleet sales manager instead of just walking in the door, and you can do a ridiculous amount of research online. Freeing yourself up from the physical inventory of your local dealer gives you a lot more freedom to order the car that you want rather than the car that's available. The only thing missing in this scenario is a test drive, which is admittedly a big deal. I'm not sure how you'd crack that nut.
Anyway, since I work at Amazon and spend my days thinking about e-commerce (and unpopular old cars), perhaps this is just me holding a hammer and thinking every problem is a nail.
...m... on January 18, 2010 at 09:37 PM
...real hummers are still in production, of course, just not GM's artificial substitute...
Steaming Pile on January 19, 2010 at 05:24 AM
It's been discussed before, if not here, then on Jalopnik and elsewhere, but there are legal barriers to automakers just starting up a website and selling cars. You'd have to go with a third-party for that, hopefully one whose mission is to just take special orders, relay those to the automakers, and deliver the vehicles, hopefully without getting burned too many times in the process. The key problem is that cars cost more than a lot of people's credit cards will absorb if you were to live up to your part of the bargain, but the customer somehow can't. It's not like selling stereos or laptop computers.
Still, the idea intrigues me. I can see it now - DaveMotors.com. Want just the base car? No problem. In what color do you want it? Tick the boxes for whatever options you want, click SEND, and you can have your car in about six to eight weeks. I bought a car in sort of that way when I was in the Army serving in Germany. You order your car at the big PX like you're in Burger King, then pick it up in the states from the nearest dealer to your destination. Well, actually, you had a choice of either Charleston, South Carolina, or Philadelphia, but it kind of worked. You could even keep building your down payment in the waning months of your tour.
Cookie the Dog's Owner on January 19, 2010 at 06:39 AM
Something interesting that I didn't see in time to include in the post: an article on the role of the private automobile in the Montgomery bus boycott of 1955:
http://www.thetruthaboutcars.com/martin-luther-king-freedom-and-the-automobile/
Sigivald on January 19, 2010 at 04:35 PM
Isn't 19.9% more of a plurality than a majority?
Cookie the Dog's Owner on January 19, 2010 at 07:07 PM
That 19.9% added to their existing stock holdings put VW over the top.
John B on January 20, 2010 at 12:32 PM
I just can't see a mojor retailer selling cars.
With the way some people feel about them (Wal-Mart)they'd be tied down with product liability suits brought by anti-store activists in no time.
I've got to think the basic cars they sell wouldn't have the profit margin to make it worth the hassle.
Paul on January 21, 2010 at 04:50 AM
Sears sold cars by mail order before WWI. Why not build and sell cars to order following the model Dell used for computers and deliver by truck directly to the customer? The biggest impediment I see is overcoming consumer resistance based on a false perception of the value of their "trade-in".
John B on January 21, 2010 at 10:06 AM
Speaking of Sears, they sold Allstate branded cars in the 50s (a modified Henry J) as well as scooters of which my dad had one to drive to work before we were a two car family.
Different times.
Still you'd think that direct to buyer sales would work.
My wife is buying a new Volvo C30...and it would have been much easier to buy one direct than go through the clueless dealers (no information, brochures, photos...what idiots).
Cookie the Dog's Owner on January 21, 2010 at 02:30 PM
Okay, okay, someone has to do this:
Chris, what if Amazon Automotive sold cars through its website?
Chris Hafner on January 21, 2010 at 02:50 PM
When I tell everybody I work for Amazon Automotive, everybody rejoins with, "Well, I didn't know you guys sell cars." So I'd be pretty happy if we did, it would save me the bother of correcting them and specifying that we sell auto *parts.* Plus, beyond the conversational piece, I just like the idea of doing all my own research and making my own buying decision without dealer involvement.
But I'm sure there are a million pieces of complexity and solid legitimate reasons why we don't sell cars, all of which take place way, way above my pay grade. The whole car-selling business appears to be laden with all of these various issues - I'm just not sure if they go beyond the legacy issues with our current brands that prevent distribution from moving outside the physical dealer network.
...m... on January 24, 2010 at 09:14 PM
"But I'm sure there are a million pieces of complexity and solid legitimate reasons why we don't sell cars, all of which take place way, way above my pay grade."
...i bet it mostly comes down to free shipping for orders over thirty dollars... ;)
...in other news, spyker and saab are expected to announce a deal as early as tomorrow!..
http://www.upi.com/Business_News/2010/01/24/Report-GM-has-deal-with-Spyker-for-Saab/UPI-64171264368766/