GM-FIAT Machievelli

[Pottree@domain.elided]

In a message dated 03/18/2000 11:33:57 AM Pacific Standard Time, 
owner-alfa-digest@domain.elided writes:

<< It would not make sense for them to market
 Chevy-like Alfa's of FIAT's.  What I think they want are smaller cars to
 compete with the likes of the Ford Focus in the US market. >>


Perhaps it's the years I spent in advertising or now Hollywood that gives me 
a cynical edge, but another possible way to look at the merger/buyout frenzy 
in the auto segment and specifically at GM's motives re: the FIAT stock swap, 
has nothing to do with wrecking Alfas or improving GM cars (though after all 
the criticism of their USA product I'd say they'd be better off starting with 
Opel!)... perhaps they made this swap to prevent someone else from making a 
gain by partnering with FIAT, or some other end-run deal, or their ultimate 
goal is to improve their competitive position by buying, then shutting down a 
weaker competitor.  I'm not saying this is what they had in mind (if anything 
other than bandwagonism), but I wouldn't count it out, either.

I don't recall how much money FIAT's auto group grosses in all(plenty), but 
I'll be it's in the same ballpark as what GM's Chevy Division alone spends on 
advertising in the USA.  THAT is where FIAT, and previously Alfa, were 
totally noncompetitive in the US market, and where GM could in fact be a real 
boon, should they decide to bring some of the FIAT brands/products back to 
the US market.

I'm currently writing a movie set in 1962 during the missile crisis, so I'm 
doing research on that era, including the social and economic environment the 
characters are in.  One of the things I came up with is the campaign for the 
'63 Buick LeSabre: "Full size room for 6 adults to ride in easy-chair 
comfort."  I think that's what GM made a lot of money on prior to the oil 
crises, that's their idea of a golden nirvana, and that's where they see the 
feelings of their US automobile customers: sloppy oversized boats with 
floating seasickness suspensions, squashy upholstered seats, the greatest 
possible ease of use for people who are more interested in riding than 
driving - a rather provincial and antique notion, perhaps, but I don't think 
GM's top execs, and the dealership owners they are responsive to, has changed 
much.  I don't see GM as being interested at all in actually improving their 
auto products in a Euro sophisticated mold, although I'm sure they'd go for 
some plastic logos or model names that recapture some of the supposed sex 
appeal -- because there is no compelling business reason for these 
"improvements."  They would alienate their core wholesale and retail 
customers, their fleet customers, etc. while probably not attracting the 
enthusiast or showoff market that WANTS to buy imported cars over domestic as 
a mark of panache and sophistication even if they care little about cars or 
driving.

Just my HO.

In Paramount's parking lot last week, EVERY vehicle was a sparkling new 
luxury European or upmarket Japanese car OR an SUV (brand of choice: Range 
Rover; no Hummers, Arnold was out of town).  Heavy on Jag XJ-8s (big %!!), 
BMWs, Jag sedans, Ferraris, and of course Mercedes and for the weirdoes, 
Saabs.  NO Cadillacs, Lincolns, Buicks, etc.  Here, brands like that are seen 
to be the dowdy vehicles of choice of 60+ Midwestern dentists who could stand 
to lose a few pounds, not the sexy image of a worldly sophisticate making 
bucks in a creative, glamorous, and fiercly competitive arena while going 
around swathed in black, head to toe.  IOW, American cars have no style or 
panache, and they don't want any.  The leading edge types don't want the GM 
type cars and the GM car buyers don't want an "unreliable car you have to 
baby that rides like a truck and has a standard shift (that went out in the 
50s!) and a small trunk and no head or leg room." 

This is about IMAGE, not about PRODUCT.  Upscale American cars are for 
grandparents who want a cushy ride and as little excitement as possible 
between Prozak and Viagra doses, plenty of headroom and a big trunk for 
schlepping a few sets of golf clubs.  Trendsetters wouldn't be caught dead in 
this type of transpo and they are more interested in hip hop clubs.  I bet 
the view from Silicon Valley is about the same.  It's the same plus outside 
pop music recording studios.

Charlie
AROSC
LA, CA, USA

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