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Musical Chairs
by Ron DoronAs the 2010 model year approaches and a new season of Auto Shows is upon us, it feels like the auto industry is playing a game of musical chairs. Gone are Saturn, Pontiac, and SAAB. Mercury should not be far behind. Also gone are several dealers who probably didn't need to be around anyway. Cadillac, for example, trimmed their dealer count from 1,500 to 500, which is still more than Lexus, Audi, BMW, or Mercedes. Also gone are one third of GM employees.
One can't help but feel that this is like a real life game of musical chairs. The same is happening with automotive journalists and publications. It's probably safe to say that as the shift to digital media continues, more newspapers will be flushed away and left standing when the music stops.
In the end, we'll be left with a leaner, more humble industry and hopefully with better quality all around. The two companies I worry about most right now are Mitsubishi and Suzuki. Although both make cars, they are more closely associated with Televisions and Motorcycles, respectively.
The Los Angeles Auto Show kicks off the season and it will set the tone for the rest of the shows. I imagine there will be more space as fewer car companies will display their products. I also anticipate fewer journalists as they re-evaluate their careers because the enthusiast is being replaced by the pragmatic. But we'll be there to report on what's new, what's hot, and what's not. So for now, let the music play on and let's see which companies are best equipped to handle the next decade.
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