LOS ANGELES — Scary and bizarre.
That just about sums up the Los Angeles Auto Show for the Detroit automakers, which opened last week.
Well, aside from Ford, which rolled out its 2011 Ford Fiesta to huge fanfare. And as evident by many of the attendees I spoke with at the show, continues to gain ground in the mind of consumers.
For GM and Chrysler, however, the LA show is a sign that the two automakers might need to seriously rethink their strategies on a number of fronts when it comes to connecting with consumers in key markets such as California.
Why here? Well, for starters Los Angeles is by far the largest market in the U.S. for new cars. It also represents every major segment when it comes to new automobiles ranging from affordable compacts to premium luxury rides. In addition, California is the largest market for hybrid and electric vehicles, which clearly seems to be where the future of the auto industry is headed.
In short, if you’re a major automaker and you can make it in California, you can make it anywhere. And after spending some time with some LA auto show attendees, it’s clear that GM and Chrysler are still struggling with how to really connect with some key consumers.
WARNING SIGNS
I guess, last week’s breaking news on the eve of the LA show’s opening that GM’s CE0 Fritz Henderson was being ousted and then his daughter’s reported rampage on Facebook (more akin to a reality show) should have been an indication of the troubles still prevalent with GM.
Much as last week news that Chrysler’s national dealer network is calling for the company to pull ads like the new “I Live. I Ride. I Am” Jeep spots and Chrysler’s “World Without Walls” campaign — arguing that they fail to help sell vehicles is an indication of the troubles still prevalent with Chrysler.
A dance routine at the GM display booth for the Chevrolet Volt, which GM announced will roll out in LA, evoked the same kind of response from some attendees. “It’s just so random,” said a show-goer. “That’s not going to help sell cars.
It seems to be an ongoing struggle for GM — exactly what can they do to break through to consumers.
There are also questions about whether some of the GM product unveilings at the LA show, like the Buick Regal and Chevrolet Cruse, can help the company regain market share.
Even the new Cadillac CTS Coupe, one of my personal favorite unveilings, didn’t seem to generate the response among show-goers that it’ll need to compete when matched against luxury brands such as Mercedes-Benz and Lexus.
HEY CHRYSLER, WHAT’S NEW?
For Chrysler, the question at the LA show was when are they going to showcase any new vehicles?
Aside from a few new Vipers, a customized Chrysler 300 and a beefed up Mopar Jeep Wrangler, the only thing that appeared to be new at the Chrysler display were the models who seemed to be getting more attention.
LA show attendee Raffe Lazarias, 24, said there wasn’t anything really appealing about the GM and Chrysler booth.
“There doesn’t seem to be much by the way of Jeeps and trucks here,” said Lazarias. “That’s why it’s dead here (at the Chrysler booth) and like ‘ten thousand’ people in the Porsche booth.”
The issue, believes Lazarias, is not with the vehicles, but in reaching consumers.
“I think the (American carmakers) are doing better,” he said. “I think the mid to late nineties was a dead zone, but now the new Jeeps are looking good , the new trucks are looking good. I think their engines are getting better. But I think in LA it’s going to be hard for those cars to break in. The culture is so diverse.”
Chrysler announced on Nov. 4 that 75 percent of their current vehicle offerings will be modified within the next 14 months, and 100 percent of their product portfolio will be renewed in some fasion by 2012. But clearly that plan hasn’t been conveyed to some people.
Not the case with Ford.
MERCURY OR LEXUS?
Robin Mack, 56, said she came to the show to cross shop the Mercury Milan Hybrid with the new Lexus HS Hybrid and because of all the excitement around Ford now.
“Since I live here in LA, look for the cars with the best gas mileage so I’m really focusing on hybrids,” said Mack. “For me to even look at an American car is a lot because I can’t think of the last time I’ve owned an American made car.”
Even more interesting is the fact that Mack is now considering an American vehicle is the fact that she’s cross shopping a Mercury and a Lexus.
“I went over to GM and Chrysler and nothing grabbed me,” she said. “I see the biggest changes are at Ford.”
Keriyna Carter, a 19-year-old attendee, said she was caught by the Ford Fiesta. The car, targeted at Carter’s demographic, has been part of an aggressive marketing campaign by the Dearborn-based automaker, including giving 100 people Fiesta for a year as part of the Fiesta Movement to document their experiences with the car via social networking platforms such as Facebook and YouTube.
“It’s really nice,” said Carter. “It has nice body to it, technology. It seems like something that fits someone my age.”
The Ford booth also included live demonstrations with show attendees featuring some of the Fiesta features such as the hands-free SYNC technology.
Vincent Nguyen, 25, said he wanted to see the Ford Fiesta because of the buzz it’s been generating in the media.
“I liked it quite a bit when they announced it awhile back,” said Nguyen. “It’s gotten a lot of coverage. It’s nice.”
Clearly, the fact that Ford didn’t receive government funds for a bailout has put the automaker in a much better position in the minds of consumers than its Detroit counterparts.
Still, if Chrysler and GM don’t find their own formulas for exciting consumers quickly, the future survival of the carmakers could be in serious jeopardy.
Marcus Amick is a national automotive writer and product analyst.