Haresh Daswani | Reality check on American cars

It is no longer just the cost of labor anymore. The biggest reality check American car companies should ask themselves is, Who wants to buy my car?

There is a large loss in the forefront of innovation, which has now been passed to European cars. This innovative spirit can also be found on Japanese cars. Having this place in the market has given Japanese carmakers a stronger preference over American cars as well.

It is about time these American car companies put their ego down and ask, Why will anyone want to buy my car? They can no longer be dependent on nationalism, simply because people want the best. For American cars to survive, it has to understand one important factor, it has to be technologically advanced, more prestigious, and safer than their Japanese counterparts.

The automotive world has become twice a fiercer battle than in the past, and the fight keeps on going. Everyone wants everything in their car for less, including prestige.

The European carmakers have constantly sought to advance their technology and design miles ahead as they possibly can from everyone else just to keep their car sales going. This is the only way they can survive.

With the entry of Korean cars to the market, the Japanese had to jump fast on innovation to keep its own market alive.

This will not stop as well. The Indians are now pushing in with new innovations, and it will not take too long before they do join the fierce competition of international automotive market.

The Chinese have also made a small dent in the market, and are profitable. They are now finding a better way to enter the market deeper, and that would thus push that all other automakers move aggressively in their core competency. Everyone has to constantly become better.

American carmakers have found their supposed niche with SUV. They are huge, and the world liked their cars big.

The problem later surfaced when people realize that big cars need more gas. Big cars became a big expense.

This was no longer practical for everyone. Suddenly, no one wanted to touch an American SUV.

Was this not a lesson during the ’70s as well?

If USA wants to come back stronger. It has to redefine its identity and bring back its old glory. It is not too late, but they cannot find anyone else to blame but themselves. They have to build better cars that match up to the price people will be willing to pay.

American automakers will have to seriously ask themselves, Why would anyone want to buy my car?

 

– Columm by Haresh Daswani


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