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How will the economy shape the quality and innovation of cars over the next 5 years??

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Old 08-08-09, 12:14 AM
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I8ABMR
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Default How will the economy shape the quality and innovation of cars over the next 5 years??

With the economy still in the tank and most car manufacturers down 25-40% what is going to happen to the quality and innovation of future vehicle design?? My fear is that with most... all ... manufacturers cutting costs in every way shape and form will this be noticed in our future suspension designs, engine design, interior quality, and overall innovation?? will companies let the current economic state erode some of the advancements that we have seen in cars over the past 7 years


what do you guys think will be coming in the future ??
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Old 08-08-09, 05:31 AM
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dunnojack
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perhaps they may add an extra year to the model cycle.

but i don't think they will cheap out. it's too risky.

right now, toyota is the only jap company in the red right? honda and nissan still making a tiny profit? I dunno
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Old 08-08-09, 08:19 AM
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Threxx
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A down economy has historically has been good for the end consumer in terms of forcing manufacturers to provide more value for their dollar, as well as weeding out and consolidating weak brands that were only taking up space. Basically it causes all of the silly wasteful spending the manufacturers were becoming accustomed to (at the consumer's expense) to be buckled down and reeled in.

On the flip side, yes it does tend to reduce 'cool' innovative new technologies. It doesn't reduce innovation entirely, it just makes companies focus on more practical technologies rather than "gee whiz" toys.

You know... just two days ago I found out that because my BMW has rain sensing wipers, my windshield costs 600 dollars to replace, instead of 300 dollars. I also found out that sometimes the rain sensing function's accuracy is reduced after the windshield is replaced. I think if this information was stated on the front end to the consumer, that a lot of people would just say "give me the regular wipers". I don't know about you guys but pretty much every vehicle I've owned seems to necessitate a windshield replacement every 3 years or so. So you tell me it costs me an additional $100/yr to have that feature in windshield replacement costs, plus the up front cost of the feature, plus potential labor costs at the dealership if something goes wrong with the sensor, and suddenly it just doesn't seem like it's worth it for the convenience of not using a manual wiper control.

These are the kind of 'innovations' I think a down economy forces manufacturers to reconsider.
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Old 08-08-09, 11:14 AM
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I don't think this downward economic cycle will have a big impact on product development at the stronger companies.
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Old 08-08-09, 12:01 PM
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RXSF
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the big players in the automotive world i think will continue to innovate and make better products in hopes of gaining automotive shares in the downturn market - or at least thats probably what hyundai is going to do. I think there are way too many automotive choices on there, so its time to weed out the weak.
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Old 08-08-09, 03:22 PM
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It's just another economic cycle, of course it was one of the deeper recessions.

Crappy companies on the brink were taken over the edge.
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Old 08-08-09, 03:52 PM
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I think innovations wont be hurt too much. R&D departments aren't going to say 'ok everyone, think less hard because the economy is in the tank, we want everyone's second best idea; as for those first best ideas, just toss them'.

I also doubt quality will take much of a hit; quality is a relative scale and now that many are accustomed to a higher quality of product and the know it's available it will be difficult to offer a slightly lesser product at the same price.

I think where you'll notice anything is that fewer people will buy the fully loaded car, and I think higher end cars (Fs, Ms, LShs, S AMGs) will move more into the 'by order' realm. That is, I think retailers will carry a lower stock (maybe even no stock) of the more niche products.
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Old 08-08-09, 05:22 PM
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mmarshall
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I think we are going to see a whole new economy, connected with automobiles, that, for the most part, never existed before. Why? Simple. As more non-petroleum-fuel vehicles, such as ethanol, propane, compressed-hydrogen (fuel cell), natural gas, and pure electrics become available for sale (and the industry seems to be pointing that way), new infrastructures to support and refuel them are obviously going to become necessary. The days of everything running on either gasoline or diesel fuel will be gone, though gasoline as we know it will be around for awhile....and diesel fuel for large trucks, diesel cars, and railroad locomotives. But petroleum-based fuels, and engines, will decline in importance, and alternate-fuel vehicles will become more widespread. That will require more charging plugs/statons for pure electrics and plug-in/extended-range hybrids like the Chevy Volt, compressed-hydrogen tanks for fuel-cell cars such as the upcoming Honda FCX, auto-refill fittings at natural-gas utility plants and stations, more widespread use of E85 and pure ethanol tanks, propane stations, and any other alternate fuel as needed. This will obviously take time and work to design and implement, and I honestly think that this is where a lot of the future economy is goint to be (perhaps the demand for these facilities and their planning/construction will help bring us out of our current recession).

So, in the long run, as it see it, it is not how the future economy will shape the kind of cars we got, but just the opposite...........how the kind of cars we will have will shape the economy. Per the thread title, I don't think we'll see enormous changes in just 5 years, but by then we will be on the way.

Last edited by mmarshall; 08-08-09 at 06:33 PM.
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Old 08-08-09, 06:35 PM
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It seems hardly anyone saw this economic crash coming as everyone in power at the time pretty much either ignored warnings and those that warned were ignored. Its clear even with the worldwide economy down, people are still buying luxury vehicles. The fact is the numbers were "inflated" in an era of easy credit.

Well we are already hearing luxury brands saying they are going to go "smaller" with smaller cars and engines. There will continue to platform share and we are seeing them go in niches and small segments we never have seen before in the luxury arena. Fuel economy seems to be something not completely ignored and with CAFE standards rising, it can no longer be.

What we will also see is a shift in power as China becomes the largest car market and carmakers start to cater to their tastes. We don't get LWB 5/A6s for example. Car makers will go where the money is and where growth is.

Tata has to be credited for creating a car for the masses at a price many in India can now afford. The IQ is also pretty revolutionary in packaging. The RX450h is a 4500lbs luxury SUV that gets 30 MPG, pretty revolutionary.

Finally expect more consolidation in the future and a more dividing line between Tier 1/2/3 companies. Its sad to think we simply will not have all these auto companies around in the next 15 years. Those companies that used the economic downturn as an "excuse" to give up on bringing new products will be left behind even more. Those that press on during these hard times will emerge stronger than ever.

Expect a true German big 3 when Audi joins BMW/Benz here in stature and sales leaving Lexus the sole credible Luxury brand from Japan. Cadillac has a chance to grow strong since they do have the governments support and GM has only 4 brands to support. They CANNOT afford a miss though and the new SRX hasn't helped at all. They need a product onslaught, not one new vehicle every two years.

Then we will have Buick join the Tier II/III brands and everyone else I haven't mentioned rounding up the luxury field. Hyundai? Thats a big question. I see Hyundai emerging as a brand that is seen as more prestigious as Toyota/Honda if they continue with their move upmarket.
 
Old 08-08-09, 06:42 PM
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it will be changing CAFE standards that likely influence vehicles more than the economy.
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Old 08-08-09, 06:52 PM
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mmarshall
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Originally Posted by bitkahuna
it will be changing CAFE standards that likely influence vehicles more than the economy.
CAFE standards, however, which only apply to gasoline and diesel fuel, will be less and less of a factor as we gradually switch to alternate, non-petroleum fuels. How fast we switch over, of course, depends at least partially on how fast the new refuelling infrastructures are ready.
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Old 08-08-09, 08:20 PM
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Originally Posted by mmarshall
CAFE standards, however, which only apply to gasoline and diesel fuel, will be less and less of a factor as we gradually switch to alternate, non-petroleum fuels. How fast we switch over, of course, depends at least partially on how fast the new refuelling infrastructures are ready.
what new refueling infrastructure? is anything happening on the score? with a fawning over-obsession on electric cars i don't see LPG or hydrogen infrastructure happening.
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Old 08-08-09, 09:51 PM
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well said to all that have replied. In the end the push for more value and better financing and incentives will help the consumer hopefully
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