John McCormick:

Putting the shine on automotive appliances

LAS VEGAS -- The question of whether the auto industry's products are really little more than appliances is one that raises its awkward head from time to time.

It came up recently in Vegas, at a Chrysler meeting where new vice chairman Jim Press was "rolled out" to the media for the first time. Press played it cool with the auto writers, meaning he was friendly, laid back and frankly much more opinionated than I ever recall him being in his Toyota days.

He pointed to the advantages of being a privately held company -- a prime example being the ability to slash fourth quarter production by 82,000 units, a decision that will cost $1 billion in cash flow, but which took minutes to agree on by phone with Cerberus management. In other companies, Press said, careful not to actually mention Toyota, such a decision would have taken "a couple of months and a number of flights across the ocean."

The new emphasis on speedy management action in Auburn Hills is also evident from the 200-plus engineering change recommendations on existing products that Press has instituted in the short time he has been in place. And talking of product brings us to the subject of appliances, a topic that Press knows well. His previous employer was and is the master of producing appliance-like vehicles. But to be fair to Toyota, that is the case to varying degrees with every major automaker in the world. Honda's Accord has vied over the years with Toyota's Camry for the title of world's blandest car, yet both models are phenomenally successful (and the envy of many rivals). And therein lies the dilemma for the auto industry, especially in the U.S. market.

Press highlighted as a Chrysler advantage that the company understands that some customers do not want to drive an appliance. "Some customers really love the passion and emotion of cars -- when you drive the Viper or the new Challenger, the hair on the back of your neck stands up."

But he noted that "there are many customers who want to drive appliances and we've got to get better at giving them appliances."

The answer, Press argued, is to combine the best of both worlds. "We have the Chrysler engineering capability that understands the passion and driving, the visceral part of vehicles, how they sound, and you add the advantages of an appliance in terms of packaging, quality, fit and finish and appeal." The result: "a new combination and Chrysler becomes the new player in town."

Even with the newfound pace of change at Chrysler, it will take a few years to see if Press's optimism is well placed. Meanwhile other automakers playing in the mainstream U.S. market are wrestling with the task of blending appliance and enthusiast qualities into their vehicles. It is an especially vexing challenge for European brands because consumers in their native markets are far more attuned to the enthusiast traits than their American counterparts. Europeans, for example, generally don't believe in drinking or eating while in their cars, which explains why their automakers found it so hard to accept the need for cupholders in U.S.-bound models.

On the other hand, it's a mistake to dismiss Americans as being totally disinterested in the driving characteristics of their vehicles. They may not be as expert or as schooled in handling or engine responses as Europeans, but I'd argue that subconsciously, at least, U.S. drivers can tell the difference between a dull and an entertaining car.

Press is not alone in recognizing this viewpoint. General Motors has been laboring hard over the last few years to create a new overall formula for dependable and engaging vehicles and the results are showing in the U.S. market. So too has Ford, although with more success on the dependable side of the equation than the appealing element. Going forward, it looks like being engaging is part of the responsibility of Ford's own ex-Toyota star, Jim Farley.

The encouraging point here for Detroit is that all its automakers finally realize that they need to work towards a new paradigm, as they design and engineer vehicles for American consumers. Being reliable is not enough, nor is being entertaining. Buyers want both.

John McCormick is a columnist for Autos Insider and can be reached at john.mccormick@detnews.com