Straightline

The car enthusiasts news blog from Inside Line

5 auto areas to watch for '06

The Detroit News says there are "5 things to watch in 2006," in the auto industry. Four of the five are no-brainers:

1, high-tech cars.

The convergence of technology and the automobile is happening at lightning speed. Navigation and DVD systems have become commonplace...
Customers will see a quantum leap in advanced technology that will make cars safer, more enjoyable to drive and more comfortable.

2, small cars.

Small will be big in 2006.The battle will play out in the subcompact car market, where automakers are placing more design, styling and engineering resources.

3, hybrids.

Gasoline prices have now been elevated for more than a year -- long enough to affect consumer behavior. Fuel economy hasn't been a concern of car shoppers since the early 1990s, but it is top of mind now.

4, crossovers.

The area between the minivan and traditional SUV may be the biggest growth opportunity remaining in the U.S. market.

5, new-age marketing.
Auto marketing has traditionally fallen neatly into two categories: selling the deal and selling the image.

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1 Comment

steve_ says:

02:48 PM, 01/ 3/06

If I may be a bit contrarian (business as usual for me in other words), I'll take issue with a couple of those positions.
  
Lightning speed? Personal computers are now 30 years old and still have a long way to go. Cars adopting tech is great, but it seems like it's still a big struggle. Just try to get your iPod to easily connect to your car stereo or get Bluetooth to work. Even ABS isn't standard on lots of cars and I'd prefer not to drive one without it.
  
Stuff that does get introduced often is ahead of its time and is resisted by consumers (4 wheel steering and the first go round with displacement on demand come to mind).
  
Small cars? The MINI is a huge hit, but I'm surrounded by F-350's and Expeditions around my burg. Since gas fell back to $2.09, no one is picketing the dealers for more Neons around here. But interest in hybrids and diesels is high, even though the economics may not pencil out.

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