Automakers limiting options to reduce costs
With sales at a 26-year low, the Detroit 3 are trying almost anything to reduce costs and make more money from the cars they are selling. One of the biggest changes coming apes what some of the more successful Japanese makers have done all along: offering fewer configurations of their models. If you want leather, you option up for the higher-spec model and get the sunroof, two-zone climate control, larger wheels, and steering-wheel-controlled MP3 stereo system too. Soon, you'll see a similarly simplified menu in domestic showrooms.According to the Detroit Free Press, offering fewer combinations allows automakers to cut engineering, design and marketing costs, which are frequently larger than even the manufacturing costs for a vehicle. One example is the 2010 Ford Fusion. The 2008 Fusion offered no fewer than 2,600 combinations between the different trim levels, option packages and stand-alone options. That number will be slashed to just 104 for someone shopping the 2010 model. To put that in perspective, someone looking at a 2009 Honda Accord can pick from about 20 versions. It's basically coupe or sedan, automatic or stick, LX or EX trim levels, with the EX available with leather and/or navigation, and either the four-cylinder or the 3.5L V6. That's it. Compared to a typical Chrysler, which might have had as many as 10,000 combinations in the past, the new system will keep things simple in an attempt to streamline the domestics' offerings.
[Source: The Detroit News]
Reader Comments (Page 1 of 3)
Jamie M 6:48PM (2/16/2009)
The domestics have been doing this in Canada for quite some time.
Reply
Swede 7:24PM (2/16/2009)
Being european I'm used to american cars only coming in one trim level (fully loaded) so I'm suprised at the amount of choice apparently avalible on US vehicles. No wonder they're loosing money, cheap cars should only come in two or three flavours.
Mark 6:53PM (2/16/2009)
This is clearly how all the domestics should be working with high-volume, low to mid-priced vehicles. Endless combinations only really work in luxury vehicles where customers are pickier and much more likely to tailor order.
Honda's order system is genius. At the maximum, it only asks five questions:
1) Pick your trim level.
2) Pick your exterior/interior color combo.
3) Manual or automatic?
4) Cloth or leather?
5) NAVI or non-NAVI?
Reply
Tool 10:20PM (2/16/2009)
Exactly. Honda keeps it simple.
It's a wonder the Detroit 3 didn't do this years ago. But then again with the cesspool of mediocrity and backwards thinking that is Detroit, it is expected.
Lately, I have no sympathy for any Detroit 3 automaker. Period. They had 25+ years to figure out how to beat the Japanese. Sure they've proven that they can make some fantastic vehicles (CTS, Malibu, New 2010 Taurus) but that has been the exception rather than the rule.
Spartan 6:56PM (2/16/2009)
I've always wondered why domestic vehicles offered so many combinations. Combine that with badge engineering across multiple brands and you have thousands upon thousands of configurations to build.
Instead of focusing on silly names and nomenclature, they should have been focusing on this. It took an economic crisis for them to figure it out, but I don't think that they're asleep at the wheel any longer.
Reply
AIL 7:02PM (2/16/2009)
Or even better, look at the S2000. One car. Done.
Accessorizing is so much simpler than having options for everything. Set up the car right for the target buyer and let them (or the dealer) take care of the minutia.
Reply
Kn1ves 3:37AM (2/17/2009)
there's actually two cars CR or no CR, also you can opt to add radio/etc on the CR or none
tifosiotaku 7:10PM (2/16/2009)
They should make leather a standalone option. Leather + sweaty backs = stickyness, and I don't want to have to pay to get it reupholstered in cloth.
I live in Florida, fyi, I have a right to bitch about this.
Reply
WetheSheeple 7:25PM (2/16/2009)
Absolutely. Totally with you on that. I hate having to get leather just to get other options I want in a package. All automakers should make the leather a totally seperate stand-alone option.
Joe Black 8:21PM (2/16/2009)
Don't move to Florida or buy a Lexus with fans-A/C in the seats or tint your windows and hit the A/C button or don't move to Florida. Or just go on e-bay and buy the crushed-valour seat covers and replace, then resell the leather to another sweaty Floridian who will complain that they moved there as they thought the nuclear sun emitting death rays of UVA and the 100% humidity would make them happy.
Polly Prissy Pants 9:11PM (2/16/2009)
I live where we have 100+ degree summers that last 7 months in a row and I hate buying other options just to get leather. Cloth gets stained too easy, shocks the crap out of you in the winter and just generally looks like ass.
The biggest problem is all the crap like cruise control and power outlets that are option? WTF? The only options on a car should be leather, sunroof and stereo, and even those should be dealer installed. There's no reason these have to be installed at the factory.
British_Rover 10:14PM (2/16/2009)
Err they are installed at the factory because it is cheaper. Sure you can add leather or heated seats to any car as long as a leather upholstery kit is available but it is usually twice as expensive. I have sold cars with aftermarket sunroofs and while some of them have been very good some have not. The quality is really hit or miss and I don't want some guy just cutting into the roof of my car to add a sunroof. Then there are the panoramic style sunroofs that just can't be added after the fact. The roof most be specially designed to have a hole that big in it.
The vast majority of the buying public is not like you. Most people have a trade and owe money on it. Most people want to drive a couple of different cars before they chose the one they want to buy. Many people want to test drive the actual car they are going to buy before they buy it. Buying a car is not like ordering a computer from Dell. I don't see that kind of buying process happening for a very, very long time.
Then there is the case that many people come in looking for one type of car but leave in an entirely different car. They came in thinking they wanted a sporty sedan and left in a SUV or maybe a large wagon. They wanted something new but didn't realize that we had one year old used cars that were such a fantastic value with a longer warranty.
I had this happen a few months ago.. Guy came looking in for a certain new sedan but there aren't any deals on this particular model. All of the new 2008s are sold and there are really no significant incentives on the 2009 models. I showed him a few 2008 Certified Pre-owned models with less then 12,000 miles on them that he could be for 12,000 dollars less then a 2009. He paid less money for the same car with a longer warranty and he got a better rate as the manufacturer had special financing on certain CPO cars.
=jim= 10:30PM (2/16/2009)
I totally agree with you, tifo. About the only option I won't get in a car are leather seats. I hate driving in shorts on leather seats during hot weather which is a good chunk of the year here in Tampa.
P.V. 7:12PM (2/16/2009)
This is another reason why I and many other consumers like Honda. The trim levels are simple, well-defined, and have little wiggle-room. I'm glad that other companies are following suit (something they should have done years ago). Even in terms of luxury vehicles, Acura follows Honda's model (sure, they're the same company, but Honda COULD have done something different for Acura, right? or not...), and I think it works quite well for them.
Reply
johncuyle 7:17PM (2/16/2009)
This really sucks. It's already very difficult to get a car optioned the way I'd like and cutting things down more does not help. I mean, they don't usually make sane choices on the trim level. Want to order a sports car? Cool, you can have the base model or the performance model which includes LSD (good) an upgraded engine (good) an upgraded suspension (good) leather seats (bad) air conditioning (bad) zillion way power seats (bad) etc. See, if they offered those as two separate packages, an actual performance package and an actual luxury package, that'd be fine. But bundling a ton of expensive, heavy luxury features on top of basic performance modifications is just dumb. The Japanese are worse about this than the US manufacturers. I'm not sure how profitability is improved by serving your customers less well.
Reply
Spartan 7:31PM (2/16/2009)
While that may suit you just fine, it doesn't fit the majority of consumers who purchase cars these days. Streamlining the production process will help these automakers return to profitability sooner rather than at all, because at this rate I seriously doubt they'll be a later if they don't fix these issues pronto.
I remember my father bought a 1990 Honda Accord brand new. He wanted a sunroof, so his only option was to buy an EX or SE model. He didn't want leather, which was only available with the SE, so that left him with the EX model. Easy, simple, and streamlined trim levels. For the most part, this still exists today with the Accord.
I have a new Ford Explorer XLT Ironman V8. I can tell you from shopping experience that the trim levels across the Explorer line are no where near as streamlined as the Accord example above. Just one of the things where Ford needs to improve.
akboss302 8:54AM (2/17/2009)
I have to agree on this one, because its one of the things I like about buying a North American car, you can actually choose what you want. Just because Honda sets a standard it doesn't mean that is the new golden rule to which all automobiles must be created, people just flock to their example with little understanding of what they actually want and need in a car. While I understand that this is more of a custom offering by premium car makers, that seems like a good benchmark to aim for in giving customers of lesser cars a 'premium' experience instead of the other way around. Why are people celebrating paying more for cars because you get a full load of unnecessary equipment?
xtasi 7:29PM (2/16/2009)
I don't know where those "thousands of options" came from, but I don't think you could ever get 4cyl, manual, Nav Fusion. If you go to the domestic (US) websites, already many options required the higher trims.
I remember trying to get a Subary WRX with Nav, nothing else. However, in order to get nav I had to get the "sports" package.. which simply was cosmetic bits.
Reply
Rev Junkie 7:31PM (2/16/2009)
I wonder why no one else has followed Honda's lead in reducing combinations to trim level, leather or cloth, stick or slushbox, and nav or no nav? Of course, I wish I could have gotten the VTEC engine of the EX without any sunroof, power windows, AC, etc. but then again, I'm the kind of guy who hopes of having a Lotus as a daily driver.
Reply
akboss302 9:34AM (2/17/2009)
Again, because thankfully not every automaker aspires to be Honda. You just pointed out in your comment the very fault of this whole idea - you wanted a VTEC without all the extras, but Honda wants you to jump $2,000 (that's a guess, usually option packages are around this value) for the EX to get what would otherwise be a $500 engine upgrade option. Easy money for the automakers, money out of our pockets. Yay Honda!