Photo: Tesla Motors
According to an old adage, the five most popular New Year's Resolutions in the U.S. are, in this order: lose weight, manage debt, save money, get a better job and get fit.
As idiosyncratic and coincidental as it may seem, I think these resolutions are just about what some car manufacturer CEOs should have made when the clock's hands reached for 12 on December 31. Of course, not all of them work on every carmaker, so I've put together a list with one resolution per automaker, according to who needs it most.
When you compare most Teutonic sedans to their rivals, the Germans should actually feel very comfortable regarding weight, since they are usually on the lighter side. The same thing goes for convertibles, some SUVs, and even compact hatchbacks.
That said, when you get a closer look at most German cars and their not-so-mainstream main rivals, things no longer look so pretty. In fact, the opposite happens. Despite their more humble market share, both Alfa Romeo and Jaguar seem to severely undercut their competitors from Germany with pretty much every car in their lineups.
Whether we're talking about the Giulia and the Stelvio, or any modern Jaguar minus the chunky F-Type, it seems that both Italian and British know-how regarding weight reduction is superior to what we can find in the German premium triumvirate.
This hasn't always been the case, but in recent years it's become a slight nuisance if you really think about it. I'm therefore suggesting Rupert Stadler, Harald Krüger, and Dieter Zetsche to really think about America's favorite New Year's Resolution and maybe implement some of it into German cars.
Some years have passed since then, and current GM doesn't have much in common with old GM, while Chrysler has since been scooped up by FIAT, creating the FCA Group.
Meanwhile, Tesla has quickly and steadily transformed from a funky startup to an actual disruptor of the entire automotive industry. There is a slight catch, though, because we wouldn't have the Tesla of today without the company amassing some debt along the way.
Long story short, despite currently being the best-selling EV maker on the planet, Tesla isn't actually doing that well money wise. Production bottlenecks, over promises and under deliveries and a clear lack of long-term focus has made most analysts predict that Tesla will only become profitable in 2020.
Elon Musk is many things, but a reliable businessman he may not be, at least not until each and every one of its many business ventures breaks even and leave any accumulated debt behind them.
This is especially true for the automotive industry, and what used to work a decade ago is no longer feasible for many reasons. The biggest one is probably the market itself, with numerous adjacent industries having been disrupted by the advent of various startups and technologies, such as autonomous driving.
Uber is probably the biggest example, alongside various other types of car-sharing, but one thing is certain. In the near future, most established carmakers will need to reinvent themselves because simply developing a car and then selling it to the appropriate customer will no longer suffice.
Volvo is already testing the waters with their Care by Volvo subscription program, which brings car ownership closer to the experience of buying a smartphone through a carrier's plan.
I include all automotive CEOs in this New Year's Resolution, even if 2018 may not be the year when all of them are forced to change their age-old plans.
GM is far from the old GM, that is true, but that doesn't mean everything is rosy in Michigan now that the Financial Crisis is over. Remember, the next one could be right around the corner, and the old adage that says “the bigger they are, the harder they fall” is still true.
Elon Musk, for the second time on this list, isn't any merrier. Sure, Tesla is probably his favorite child, but there is also Space X, Hyperloop, and the Boring Company, all of which need a lot of resources to succeed in the long run and so far none have shown any clear signs of doing so.
Not emerging stronger but clearly battle-proven from the Dieselgate fiasco, Volkswagen is also in dire need of some fat trimming. Dr. Herbert Diess should be very careful about his company's next endeavors. Considering he comes from BMW, VW should be in good hands, though.
Hopefully, not many of the CEOs above were too busy partying on New Year's Eve instead of thinking about what resolutions to implement for the following year. If I were to make a prediction, 2018 might actually be a good year for most carmakers, at least from a transitional point of view, unless something truly horrible happens on a global scale.
Happy New Year from the autoevolution.com team!
Lose weight
For manufacturers that have so many sports models in their lineups, you would think that Audi, BMW, and Mercedes-Benz would be aware that weight is a pretty significant enemy of both performance and fuel economy.When you compare most Teutonic sedans to their rivals, the Germans should actually feel very comfortable regarding weight, since they are usually on the lighter side. The same thing goes for convertibles, some SUVs, and even compact hatchbacks.
That said, when you get a closer look at most German cars and their not-so-mainstream main rivals, things no longer look so pretty. In fact, the opposite happens. Despite their more humble market share, both Alfa Romeo and Jaguar seem to severely undercut their competitors from Germany with pretty much every car in their lineups.
Whether we're talking about the Giulia and the Stelvio, or any modern Jaguar minus the chunky F-Type, it seems that both Italian and British know-how regarding weight reduction is superior to what we can find in the German premium triumvirate.
This hasn't always been the case, but in recent years it's become a slight nuisance if you really think about it. I'm therefore suggesting Rupert Stadler, Harald Krüger, and Dieter Zetsche to really think about America's favorite New Year's Resolution and maybe implement some of it into German cars.
Managing debt
Everyone is probably familiar with the government bailout money that two major U.S. car manufacturers have received during the 2009 Global Recession in order to stay alive. Yes, I'm talking about General Motors and Chrysler.Some years have passed since then, and current GM doesn't have much in common with old GM, while Chrysler has since been scooped up by FIAT, creating the FCA Group.
Meanwhile, Tesla has quickly and steadily transformed from a funky startup to an actual disruptor of the entire automotive industry. There is a slight catch, though, because we wouldn't have the Tesla of today without the company amassing some debt along the way.
Long story short, despite currently being the best-selling EV maker on the planet, Tesla isn't actually doing that well money wise. Production bottlenecks, over promises and under deliveries and a clear lack of long-term focus has made most analysts predict that Tesla will only become profitable in 2020.
Elon Musk is many things, but a reliable businessman he may not be, at least not until each and every one of its many business ventures breaks even and leave any accumulated debt behind them.
Save money
Considering the current economic situation and the financial damage most carmakers would have to face if we get another global crisis on our hands, thinking about saving money probably seems a bit redundant. Well, saving money and cutting costs is still one of the best solutions for helping an ailing company and/or increase profits, so this New Year's Resolution should be made by just about every automaker CEO who is in trouble or not. 2018 will be a tough one, guys, don't rest on your laurels!Get a better job
Technology has begun to evolve at a more rapid pace in recent years, and things progress and transform following a logarithmic timeline.This is especially true for the automotive industry, and what used to work a decade ago is no longer feasible for many reasons. The biggest one is probably the market itself, with numerous adjacent industries having been disrupted by the advent of various startups and technologies, such as autonomous driving.
Uber is probably the biggest example, alongside various other types of car-sharing, but one thing is certain. In the near future, most established carmakers will need to reinvent themselves because simply developing a car and then selling it to the appropriate customer will no longer suffice.
Volvo is already testing the waters with their Care by Volvo subscription program, which brings car ownership closer to the experience of buying a smartphone through a carrier's plan.
I include all automotive CEOs in this New Year's Resolution, even if 2018 may not be the year when all of them are forced to change their age-old plans.
Get fit
This is where it gets dirty because for the life of me I couldn't single out a CEO that needs to trim the fat from his or her car company.GM is far from the old GM, that is true, but that doesn't mean everything is rosy in Michigan now that the Financial Crisis is over. Remember, the next one could be right around the corner, and the old adage that says “the bigger they are, the harder they fall” is still true.
Elon Musk, for the second time on this list, isn't any merrier. Sure, Tesla is probably his favorite child, but there is also Space X, Hyperloop, and the Boring Company, all of which need a lot of resources to succeed in the long run and so far none have shown any clear signs of doing so.
Not emerging stronger but clearly battle-proven from the Dieselgate fiasco, Volkswagen is also in dire need of some fat trimming. Dr. Herbert Diess should be very careful about his company's next endeavors. Considering he comes from BMW, VW should be in good hands, though.
Hopefully, not many of the CEOs above were too busy partying on New Year's Eve instead of thinking about what resolutions to implement for the following year. If I were to make a prediction, 2018 might actually be a good year for most carmakers, at least from a transitional point of view, unless something truly horrible happens on a global scale.
Happy New Year from the autoevolution.com team!
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