Konkocars.com

I apologize for a lack of updates recently. I am currently writing for Motoring Exposure, a website dedicated to luxury and exotic car culture. Come check us out here: www.motoringexposure.com

By: James Sawers

Nissan Motor Corporation was once ton the verge of bankruptcy. The legendary Japanese company almost closed. That is until they hired a great executive in Carlos Ghosn to lead the company to a comeback. He had the experience, the know-how, and the ability to do so.

Carlos Ghosn is a ruthless, direct management style executive. He knows what he wants and how he wants the job done. He is a micromanager that approves every single aspect of cars being released. He is famous for being direct with designers and staff members, he is not afraid to voice his opinion to the press, and doesn’t shy from interviews.

Nissan needed an executive that could run a company with the product in mind along with the bottom line. They needed a leader that they could rally behind, had the guts to do the unthinkable, and be able to end a product that will not be successful. Carlos Ghosn was the executive the board called.

Carlos Ghosn knew that he needed to tap into the heritage of Nissan. He knew it was time to find a true identity for the company and build upon it. Nissan was going to be a mainstream sports car. The first project was designing and building the legendary Z-Roadster. In 200, Nissan executives began working on the new 350Z, set to debut in showrooms in 2002. Ghosn knew what he wanted with this car: style, speed, and sex appeal. The designers succeeded fully and the all-new 350Z was a hit amongst the buying public.

Next was a well-known Nissan: the Maxima. The Nissan Maxima had always been a solid selling, well built car. The Maxima was a front wheel drive car that had been lost in the design spectrum of the industry. Ghosn wasn’t impressed and told designers to redesign the Maxima to his liking: Big, Bold, and Beautiful. In 2003 the redesigned Maxima hit showrooms as a big and bold design. Dealers were excited and the buying public was back. The Maxima became a hot seller and became the number two best-selling vehicle in their lineup.

Number one was a product that Ghosn knew had to be sexy, appealing, sporty, safe, quality, and competitive. That car was the Nissan Altima.

The Nissan Altima competes in the family sedan class against the likes of the Toyota  Camry, Honda Accord, Hyundai Sonata, and Ford Fusion.  Ghosn knew the car had to appeal to be a success. Designers had to succeed and met Ghosn’s standards. He was there every step of the way with the Altima, as with all products. Once he gave his approval, the car moved fast to production. Ghosn is known not to waste time, once he makes a decision the move to production is fast. Once in production the build standards had better be up to his standards or he will take serious action.

After reinventing the top cars in the lineup through 2002-2004, Ghosn knew there was more work to be done. He took a serious look at Infiniti and did the unthinkable in the industry; he aimed his target at BMW. He knew Infiniti needed customers, they needed to have a heritage, and they had to find their identity fast.

That leads to the 2003 Infiniti G35 Sedan/Coupe. The car came up short to the competition from Munich, however was too close for comfort for BMW. In 2008, the second generation G35 (now the G37) defeated the BMW 3 Series in a head to head comparison in THREE major publications. Ghosn had done the unthinkable; he had beat BMW.

In 2008, Ghosn unveiled the long anticipated Nissan GT-R. The buying public and industry had been waiting and the executives weren’t sure if they should go ahead with the project. They did, and won Car of the Year honors from Motor Trend and Automobile Magazine.

Today, Nissan continues to make money, sell cars, and is very far from where they were pre-Ghosn. Nissan may not be popular amongst everyone in the industry, however they are a hit with young people, professionals, and families. Nissan has a market niche they have succeeded in revitalizing, and a complete company in a very hard industry.

From Nissan to Infiniti, Nissan Motor Corporation has made a comeback, all with Carlos Ghosn at the help. A gutsy, ruthless, direct, and driven executive with a love of the product and bottom line continues to lead Nissan into being a serious competitor in the global industry.

Nissan Motor Corporation continues to invest in the United States as well. They have developed into one of the leading “Green” companies with their business practices and headquarters.

Detroit, are you listening? There is a valuable lesson to be learned from Carlos Ghosn, President & CEO of Nissan Motor Corporation.

By: James Sawers

 General Motors is a company to watch. That’s right. The General is on the brink of a serious comeback. With a new marketing campaign, improved quality, and newly designed world-class vehicles, they are a future force to be reckoned with.

 In the past two years General Motors has lost nearly 30% of its American market share. They have continued to lose in the American marketplace. That’s okay with GM executives too. GM continues to gain where it counts, globally. In order for GM to be competitive and profitable wit their “New GM” business plan the company needs to be a force globally.

 General Motors has a heritage in the United States. They have been known for being “the” company in America. They have given great classics to the people (i.e. Corvette, GTO, Camaro, XLR, Chevelle, and so on). These were great cars of the 20^th Century. The fact today is the 21^st Century has come upon us and the time for a global business has as well.

 What’s interesting is that the executives at GM get it this time. They understand after numerous failed attempts, that they need to be a global car company. Their products need to appeal to the masses globally. With entries like the CTS Sport Wagon, and Chevrolet Cruze, that will not be a problem.

 For America, we have gotten the new greats. We have received the likes of the new 2010 Cadillac SRX, Buick LaCrosse, Pontiac G8, Pontiac Solstice, Cadillac CTS, CTS-V, and CTS Sport Wagon. The car that kicked off the new quality, marketing, and new GM is still popular today, the Chevrolet Malibu. The point is General Motors gets it. The industry has serious hard work ahead of it.

 Getting customers back is hard, especially after alienating many of them over the years due to the lack of quality, poor dealerships, poor service, and just an overall bad experience. General Motors understands this and is confident in their line-up and the future line-up of their business.

 Hats off to General Motors and “May the Best Car Win.”

By: James Sawers

 It has been a tough few years for the domestic auto industry. Sales dropped below the 10 million units mark for the first time in over 20 years, and more incentives offered on average per sale than ever before. There are a few bright spots in the industry: Subaru, Hyundai, and Volkswagen. These companies are succeeding for reasons beyond the car world. They continue to invest in American manufacturing with no UAW affiliations. They employ MORE Americans (combined) than the Big Three do and pay a better wage (Average 24.05/ Hour) and better healthcare benefits, all while being union-free.

SUBARU

The ONLY car company to post a profit in 2008 and increased sales (+1.9%) in FY2008 has continued to post excellent numbers in 2009. Subaru continues to amaze industry analysts with their numbers. The company offers a good product with exceptional quality, competitive prices, and rewarding customer experiences. Subaru posts the highest retention rate among shoppers in the market (64% of buyers return) and continues to give customers reasons to come experience new products. In addition to Subaru’s high quality and reasonable prices, the company has an excellent dealer network. Subaru micromanages their business so that dealers do retain customers: Dealers are required to be low pressure, easy to deal with, and respectful. They MUST be exemplary and if a dealer doesn’t meet the expectations, they are dropped. Subaru knows it takes hard work, superior quality, and a great experience to retain customers. They continue to do it and do it well. Subaru has invested in America, employing nearly 15,000 Americans in Indiana, California, and Vermont. They have invested in the United States and in turn Americans are investing in their products.

HYUNDAI

This South Korean automaker continues to be a force. They have been giving traditional luxury automakers a run for their money and upped the ante on the industry. In 2009 Hyundai released the heavily successful Genesis sedan. This is a 5 Star luxury offering at a 2 Star price. Offered even with a V-8 for a peak price of $42,000 this car is a true value. One common trait with their entire line-up from Genesis on down to the Accent is ever improving quality. Once and automaker known for being tuna cans of wheels, they are now a solid contender, offering 10 year warranties, a vast dealer network, and an improving public image, backed up by it’s solid products. Hyundai is a profitable contender in the American market. Currently Hyundai employs nearly 10,000 American workers at facilities in Alabama, New York, Georgia, and California.

VOLKSWAGEN

 A car for the people has been the advertising motto for VW for nearly 10 years now. They are continuing to succeed in their quest to become the biggest automaker in the world by 2015. This has become possible due to the quality and sales problems at Toyota. VW has an array of offerings from the entry level Golf to the top of the line Toureg SUV. The vehicles have excellent European styling, solid German quality, and a perceived value to them due to strong marketing efforts. The spotlight shines in the VW Passat CC, a car taking aim at the Mercedes-Benz CLS. The Passat CC is a four-door coupe that hits a niche, has a high profit margin, and offers stylish luxury at a starting price of $26,500. Leather is standard along with the solid 2.0T engine, and an excellent sound system. Volkswagen continues to invest in the United States as well, with a nearly $3 Billion facility under construction in Tennessee set to open in 2011/2012 and creating nearly 5,000- 10,000 FULL-TIME AMERICAN manufacturing jobs. VW officials say that by 2020 they could operate five to seven manufacturing facilities in the United States employing nearly 90,000 Americans.

All three companies offer the same common values. Subaru, Hyundai, and Volkswagen offer good products, value pricing, excellent quality, good experiences, and a good dollar spent ratio. They have vehicles for the masses, care about our environment, and care about the American worker. They pay better wages, offer better benefits, and more job security than the Big Three. They listen to their customers and make the right business decisions based on the information they receive. They take care of their workers, communities, and products, all resulting in a better bottom line. These three are great examples of success stories in a down time.

By: Ryan Konko

Hyundai’s new Continuously Variable Valve Lift engine has been caught inside the 2010 Hyundai Elantra. The Continuously Variable Valve Lift technology enables improved engine efficiency, resulting in a reduction in emissions,  greater engine performance and increased fuel economy. The turbocharged 2.4 liter engine will likely be available in future Elantra and Sonata models.

In 2010 the Hyundai Elantra will receive a slightly refreshed interior preceding the model’s 2011 redesign. The most notable change is the updated climate controls, which replace the knobs found in the current model.

Auburn Hills, Mich., Sept. 16, 2009 -

Starting Sept. 17, 2009, Chrysler will give customers the option to lease all Chrysler Dodge, and Jeep 2010 model year vehicles through GMAC financial services. Since August 1st of 2008 Chrysler had canceled leasing as it’s lending institution, Chrysler Financial, as it battled with $30 Billion in debt.

President and Chief Executive Officer–Chrysler Brand and Lead Executive for the Sales Organization, Chrysler Group LLC., Peter Fong stated “We are pleased to re-enter the leasing market so we can offer customers the opportunity to lease vehicles at rates competitive with the marketplace.” Offering consumers more purchasing options is likely to result in an increase in car sales for a struggling Chrysler. “Our ability to offer additional financing options will benefit consumers who have long been fans of leasing and appreciate the flexibility this financing option gives them.”

Special lease rates on Chrysler Town & Country, Dodge Grand Caravan, Dodge Ram 1500, Journey, Jeep Wrangler and Liberty will be available through September 30th.

Along with the reinstated leasing program Chrysler is offering special incentives on select Chrysler, Dodge, and Jeep models valid through September 30th:

• 0 percent financing for up to 72 months through GMAC Financial Services or up to $4,500 Consumer Cash on select 2009 model year Chrysler, Jeep and Dodge vehicles.
• On select 2010 model Chrysler, Jeep and Dodge vehicles, limited Consumer Cash of up to $3,000 or attractive financing rates through GMAC Financial Services are available.
• Current Chrysler Group vehicle owners are also eligible for $1,000 Owner Loyalty Bonus Cash available to use towards the purchase of select 2009 model year vehicles or the purchase or lease of select 2010 model year vehicles.

By: Ryan Konko

Not wasting any time, Hyundai will be releasing a refreshed Genesis Sedan as it’s bigger brother, the Equus, arrives in 2010. The refreshed Genesis will receive a new grille, as well as slightly redesigned front and rear bumpers. New options include a supercharged version of the 4.6 liter Tau V8, which will only be available with awd. Heated and cooling rear seats and power rear headrests will be available along with new 20-inch wheels.

The next generation Hyundai Sonata’s engine bay caught testing.

More information and pictures will be up soon…

By: Ryan Konko

The Volkswagen Phaeton was a technological marvel during the time it was sold in the United States. It shared the same platform as The Bentley Continental GT and Flying Spur, featured technology found in the Audi A8, and started at $64,600. Thousands less than the A8, and tens of thousands less than it’s Bentley counterparts. Sales fell short of expectations and at the end of the 2006 model year was pulled from the United States. The Phaeton’s marketing, pricing, and dealer network all contributed to its ultimate failure. The price was set too high and thus Volkswagen was unable to gain new buyers. Volkswagen had been marketed in the past to a younger generation and offering cheap, fun, German inspired automobiles. An expensive automobile being offered by a company that was born on providing affordable cars was a recipe for a sales disaster. A poor dealership experience for luxury car buyers only assisted in its failure. If Volkswagen were to alter its marketing to a different demographic, improve their dealership experience, and remodel their pricing, the Phaeton would have been more successful and may have prevented its untimely death in the United States.

Marketing killed the Phaeton. Volkswagen focused more so on advertising the Phaeton to a demographic that was already dominated by other luxury car brands such as Lexus, BMW, Mercedes, and even cross marketed with the Audi A8. The company was viewed by the public as one that offers affordable German cars, not one that sells premium luxury. People ages 18-49 were part of Volkswagen’s demographic, which included only a very small number of flagship buyers. Instead it was marketed to an older, and wealthier demographic. This demographic focused more on brand heritage, something that Volkswagen lacked in this segment. The Phaeton was also a part of Volkswagen’s website, not a separate website. By not having a separate website, it wasn’t differentiated from non luxury oriented Volkswagens. Volkswagen failed to differentiate the Phaeton and marketed the vehicle to a demographic that was already dominated by other luxury brands.

The pricing for the Volkswagen was too high for its demographic. Starting at $64,600 base and $94,600 with the W-12 engine, the Phaeton was priced lower than most of it’s competition. However at this price bracket Volkswagen’s demographic was alienated. A car company that offers $16,000 Golfs also offered a flagship which can be priced over $100,000. The BMW 7-Series in 2004 started at $69,300, the Mercedes S-Class started at $74,250, the Audi A8 at $68,500, and the Lexus LS at $55,573. The $64,600 base price was more inexpensive than some of its competition, but wasn’t low enough to attract new buyers or steal them from other companies.

Luxury car buyers want a dealership experience that will not leave them frustrated, or make them feel alienated. A buyer of a high end luxury car wants to feel as though they are being treated better than someone who is spending $16,000 on a Golf. They wanted to trust the dealership while spending upwards of $64,600, and in an atmosphere where salesmen are selling both inexpensive compact and expensive luxury models, the dealerships failed to deliver. Dealerships were also forced to buy in if they wanted to sell the Phaeton, so many were unable to offer the car to the public. This deterred potential Phaeton buyers because they were not available, leading them to shop elsewhere for luxury cars.

The Volkswagen Phaeton would have been more successful in the U.S. had Volkswagen changed their marketing. The Phaeton should have been marketed as a separate part of Volkswagen in order to set it apart from the company’s more inexpensive models, and marketed to a different demographic. Instead of being a part of Volkswagen’s website, a separate website dedicated to just the Phaeton should have been created. This would change the perception of the Phaeton causing it to be seen as an authentic luxury car, and setting it apart from Volkswagen’s model line. While Volkswagen had marketed the Phaeton to a demographic already dominated by luxury car companies, focusing on younger professionals would have created more potential buyers. Advertisements aimed at a young professional demographic should have featured aggressive comparisons to expensive luxury cars, while including subtle humor to appeal to the demographic. These changes in marketing would have yielded a greater number of buyers for the Phaeton.

With base prices of $64,600 and $94,600 for each engine option the Phaeton was priced just under it’s competition. The Phaeton in retrospect should have been priced to compete with the likes of a well equipped BMW 5 Series and Mercedes Benz E-Class, Lexus GS, and Audi A6, benchmarks in the industry. In this bracket, the Phaeton would be more appealing to both young professionals and consumers looking to buy into the luxury segment. Dropping the W-12 option would give the Phaeton competitive pricing for a flagship luxury sedan. Giving consumers a bigger warranty and a maintenance free program instead of the basic 4 year/50,000 mile warranty would instill confidence in the consumer to buy the Phaeton. With pricing just under $60,000, subtraction of the W-12 option, and a larger warranty, the Phaeton would be more attractive to consumers and competitive to other luxury automobiles.

A major mistake by Volkswagen was that they didn’t improve their dealerships in order to accommodate luxury car buyers. The Phaeton should have been made readily available to all dealerships instead of forcing them to buy in. Making the car more available to the public would increase sales for the Phaeton. Salesmen specially trained for the Phaeton would help to create a more comfortable and confident atmosphere for the consumer, and set them apart from the rest of the car buyers at the dealership. Retraining the service department and renovations would provide an efficient and friendly atmosphere to ensure the customer is taken care of and create a long term relationship with the customer. By improving the dealership experience Volkswagen would gain and retain buyers in the luxury car segment.

Marketing, Pricing, and Volkswagen’s dealership network all contributed to the Phaeton’s failure in the U.S. market. The Phaeton was unsuccessfully marketed to a demographic controlled by other luxury car companies, its pricing did not give it a competitive edge in the marketplace, and the dealership experience offended luxury car buyers. Marketing towards younger professionals, more competitive pricing, and a refreshed dealership experience would have created a successful marketplace for the Phaeton. With it’s Bentley underpinnings and Audi technology the Volkswagen Phaeton was a luxury marvel plagued by poor sales.

The Toyota Prius has been known to have stereotypical drivers, known for their slow driving, constant braking, left lane hogging, and saving the world one mile at a time attitude.

Driving home on I-90 towards Buffalo, NY I came up on a stereotypical Toyota Prius driver not passing anyone in the left lane. Not only did the driver validate all of the Prius driver stereotypes, it had a little something extra…

…A license plate that only justified the way the Prius was being driven. It reads “I RCYCL”. Now I am by no means against recycling, for I recycle myself, but proclaiming to the world how green you are and verifying every Prius stereotype was just too comical for me to pass up.