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Transportation equipment industry

Automotive Industry Shifts: New Models, Technologies, and Sales Strategies

Strategic Insights

— 2 min read

The automotive industry is experiencing significant shifts, from the introduction of new models to the adoption of innovative technologies and sales strategies. General Motors' Saturn division is entering the midsize sedan and wagon segment with the L-Series, positioned to compete with popular models like the Honda Accord, Ford Taurus, and Toyota Camry. Meanwhile, Ford is promoting the 2000 Ford Excursion as a utilitarian vehicle for drivers who need to tow horse trailers or boats, rather than marketing it as a status symbol.

Key Takeaways:

  • The L-Series, Saturn's first vehicle not assembled at its base in Spring Hill, Tenn., will be priced between $15,540 and $24,135, with a choice of four- or six-cylinder engine and plastic door panels that don't dent.
  • Ford's Excursion, a large sport-utility built on a medium-duty-truck platform, will be marketed as a vehicle for drivers who need to tow horse trailers or boats, rather than as a status symbol.
  • Ford's adjustable pedals, designed to protect short-stature drivers from air bags, have become a surprise hit, with 35% of Expedition buyers opting for the feature, which will be standard in the 2000 model year.
  • GM and the U.S. government will spend $35 million to test the ability of technology to prevent crashes, with 100 Michigan drivers participating in the five-year project to evaluate the effectiveness of crash-avoidance systems.
  • Automakers, including General Motors and Ford, are testing new ways to sell cars via the Internet, with GM's DriverSite and Ford's Pre-Owned Showroom offering no-haggle prices and computer terminals for customers to use.

Statistics:

  • The L-Series will be priced between $15,540 and $24,135.
  • 35% of Ford Expedition buyers have opted for the adjustable pedals, a feature that will be standard in the 2000 model year.
  • 100 Michigan drivers will participate in the five-year project to evaluate the effectiveness of crash-avoidance systems.
  • Ford has sold off-lease vehicles on the Internet to customers in Atlanta, Houston, Boston, San Francisco, and New York, with the Ford Pre-Owned Showroom site helping consumers find used vehicles in these markets.
  • AutoNation, the largest dealership group, plans to launch a national Web site to sell vehicles in all major U.S. markets.

Sources:

  • General Motors' press release on the L-Series, no date specified.
  • Ford Motor Co. press release on the Excursion, no date specified.
  • Statement by Ronald Colgin, senior GM research engineer and program manager, in a press release, no date specified.
  • General Motors' press release on the DriverSite, no date specified.
  • Ford Motor Co. press release on the Pre-Owned Showroom, no date specified.
  • AutoNation press release on the national Web site, no date specified.
  • Saab Cars USA press release on the Saab Certified Preowned program, no date specified.

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