Looks like it will take American boldness to beat the asian car manufacturers


Market, outlook, 'revolution' from CEO who knows

Bob Golfen
The Arizona Republic
Sept. 23, 2006 12:00 AM

Mike Jackson, CEO of AutoNation, the largest U.S. auto retailer, was in Phoenix recently to meet with the employees of the corporation's 15 Arizona dealerships.

The corporation, based in Fort Lauderdale, Fla., has 270 dealerships in the United States and nearly $20 billion in annual revenue.

Jackson offered his views about the automotive marketplace and the outlook for the 2007 model year.



What's changed for U.S. auto sales?

"The American consumer has more choices than ever before. They're king and queen today.

"We've gone from offering on our showroom floors six or seven years ago about 700 distinct models to 1,500 today from the same seven vehicle manufacturers. Where models used to be in production for seven, eight, nine years, now they're changed every three or four years. So it's been a product revolution in both configuration and innovation.

"It's really the product revolution that has kept the industry in the high 16 million sales range for seven straight years."



Is General Motors doomed?

"The world looks different today for GM than it did a year ago, and a year from now, it may look very different again. My sense is we're in a period of transition. I think they're going to make it the rest of the way. The new generation of trucks is outstanding.

"Chevrolet is one of the great brands in America, period. It sells everything from the (South) Korean Aveo to the Corvette and everything in between. It's an unbelievable brand."



How about Ford?

"Ford was conservative in its design at the same point that consumers had more choices than ever. They missed that shift in the marketplace where . . . in order to stand out in a very big Miss Universe contest, you'd better use bold design to stand out.

"They're a little late coming to the party, but products like the Fusion and the Edge have really resonated with consumers."



What's happening with sport utility vehicles?

"The impact on sport utility vehicles is very much created by the arrival of crossover SUVs. It's simply a better concept for most people. You get the ride, comfort and handling of a car, easier to get in and out of, a more refined fit and finish.

"The coolness factor of SUVs has gone away. People who need a sport utility will continue to buy it. If you don't need that ruggedness, off-road capability, that towing capability, you're going to buy a crossover."



Pickup-truck sales have faded. What's happening there?

"Pickup trucks and their decline are directly affected by adversity in the economy. This is the workhorse of America, and declining sales is an indication of stress in the economy. Everybody knows there will be a slowdown in housing, and all these construction people are saying, 'It's time to play it safe.' People can postpone."



Compact-car sales are on the rise. Is that just because of higher gasoline prices?

"You have exciting new concepts in small cars. From 10 years ago, econoboxes have gone from an ugly, noisy cheap disposable to the very sophisticated, refined products of today, and at the right price point.

"Look at the transformation of the (Dodge) Neon to the Caliber. Better solutions to meet consumer needs are what resonate."



Many people in their 20s and 30s are mistrustful of U.S. brands, preferring products from Asia and Europe. How can the domestic brands change those views?

"It's all about product. If you can design product that's bold enough and strikes an emotional chord, you can get young people back. What's a vehicle that's done that? Chrysler 300. It was just a product that broke through and people said, 'I just have to have it.'

"Mustan