Bon Jour From Our Man At The Paris Motor Show
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BON JOUR FROM THE PARIS AND THE MONDIAL DE AUTOMOBILE
By Marty
Bernstein
Special Correspondent
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And that very question did arise at the end of J.D. Powers and Automotive News Europe conference and seminar yesterday where Carlos Ghosn, CEO of both Nissan and Renault spoke on the record and extemporaneously on how and why the alliance he established between Nissan and Renault functions so smoothly and generates such significant profits.
“It’s based on synergy,” Ghosn (who is followed by a pack of news paparazzi and video crews like a rock star) commented, “And respect of identity, respect of autonomy and mutual development of strategies.”
Simple words but they were the basis of growth that created a very profitable international automotive juggernaut.
From the brink of financial failure a few years ago, Nissan now generates not just billions, but trillions of yen in profit -- which do translate to billions of dollars and/or Euros to Nissan and Renault which just happens to own 44% of the Japanese firm.
So what does this mean to you as an American automotive consumer? It probably does not seem an important consideration in a future auto purchase not just from GM, but from other auto manufacturers who are in financial difficulty.
But consider this: the ability of a company to launch a new vehicle from scratch is based on dollars, Euros, yen and other monetary measures. At least $1 billion based on current estimates. No investment funds equates to no new designs, no new engineering, no new product development and, of course, no new production.
Rehash. Refresh. Redefine. These become the basis of a business plan that may change the character and quality of a company and the vehicles it sells. This can be exacerbated when cutting every profit to suppliers too.
Why? It often means a diminution of quality in parts, components and reliability. Cars run on some form of fuel, an automobile manufacturer’s business runs on money. Lots and lots of money.
Bottom line? The vehicle you bought won’t be as good as you hoped it was going to be. So, the story is important to the automotive industry and to you as well.
The discussions between the three companies will continue until October 15th, at which time the decision will be made to either stop or continue the process. Stay tuned.
Now to the new cars – the ones not coming to a dealer near you
The joy of an auto show is to see what’s new, sexy, nice and stylish. Often they are concept cars that will never be sold in your city, but are the basis for vehicles to come.
Then there are the exotics reserved for the ber-rich you’d like to own, but never will. And of course the vehicles only sold in Europe or Asia or South America.
At the Paris show this year there are vehicles from Citroën and Peugeot that literally stop you in your tracks.
The C6 from Citroën which will only be sold in Europe is a dazzling sedan. And then there’s the absolutely exceptional concept car from Citroën – the C-Metisse.
This one takes your breath away it’s the beautiful. Alfa Romeo, once sold in America and rumored to be coming back soon has the 8C … a coupe, a supercar that will sell for 100,000 € or about $135,000 if it were to come to our shores.
Then there’s the Peugeot 908 RC that is incredible, absolutely incredible. Some might say awesome. Four doors for four people for a small fortune – but it’s worth every cent. It began as a concept car for two, but was redesigned as a speaker announced, “To capture the imagination of its occupants and on-lookers.
There’s also a Chevy concept in Europe. That’s right Chevrolet and GM, how bout that? This is a special edition for WTCC racing and it looks like a winner just sitting on the platform.
Did I mention the Alfa 8C? I’m sure I did, but it’s like New York … it’s so nice I’ve mentioned it twice. Ar reviour from Paris.
