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Detroit trying to figure out how MINI does it

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Old Oct 14, 2008 | 03:39 AM
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Detroit trying to figure out how MINI does it

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Old Oct 14, 2008 | 06:17 AM
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What I wonder is why has it taken so long? Surely Detriot auto execs had to see that there was going to be a crisis in sales when gas prices rise - as they inevitably had to. Maybe they were blinded by the high profits from trucks and SUV's? Good luck to them if they try to duplicate MINI's success.
 
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Old Oct 14, 2008 | 06:58 AM
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Well at least Ford figured out the direct injection + turbo = efficient power formula. Until they can give thier cars some soul they will still only be met with limited success.
 
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Old Oct 14, 2008 | 07:20 AM
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these guys are idiots. They have euro spec versions of the crap we get here that are awesome. Like the focus there has a turbocharged 2.5-liter inline-five producing around 280 HP and 295 lb.-ft. of torque.

There are many cars like that over the pond we dont get. Yet these baboons are scratching their heads?

Start making good cars america. You'll sell them. And yes you might have to take less profit Maybe the big wigs up top could take a pay cut that would help. I'm sure some of their bonus' could pay a whole factory for a yr.
 
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Old Oct 14, 2008 | 07:55 AM
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"The average profit on a small car is $500."

What? I'm not ready to believe that.
 
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Old Oct 14, 2008 | 08:52 AM
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I have to laugh when I see automakers now touting 25 mpg on the highway for a car that isn't nearly as cool or fun to drive as my almost 40 mpg highway MINI.
 
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Old Oct 14, 2008 | 11:51 AM
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and.. quality .. not just small

pinto
 
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Old Oct 14, 2008 | 11:58 AM
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From: Your Worst Nightmare :)
Originally Posted by Calmante
"The average profit on a small car is $500."
What? I'm not ready to believe that.
Perhaps you should. New car sales are the least profitable aspect of any car dealership. Dealerships make their big bucks on, in order of profitability, used car sales, parts, and service. new car sales are always at the bottom of the profit-generating ladder.

Why do U think most dealers have outrageous, mostly unnegotiable prep/doc fees on new cars? To bump up their new car profit margins.
 
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Old Oct 14, 2008 | 12:04 PM
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i also believe that any large carmaker can learn from BMW: dump the dead weight, and do better. One of the shrewdest business decisions in world automotive history is when BMW dumped Rover AG to Ford (who just dumped off Rover to Tata) but kept the MINI line. And thus we have the little goose that lays the golden eggs....
 
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Old Oct 14, 2008 | 01:11 PM
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I believe the $500 per car profit referred to above is factory to dealer, not dealer to customer.............remember not to long ago when Ford was making $15K on Explorers? That was factory to dealer too........
 
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Old Oct 14, 2008 | 01:47 PM
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Originally Posted by Tüls
these guys are idiots. They have euro spec versions of the crap we get here that are awesome. Like the focus there has a turbocharged 2.5-liter inline-five producing around 280 HP and 295 lb.-ft. of torque.

There are many cars like that over the pond we dont get. Yet these baboons are scratching their heads?

Start making good cars america. You'll sell them. And yes you might have to take less profit Maybe the big wigs up top could take a pay cut that would help. I'm sure some of their bonus' could pay a whole factory for a yr.
+1. you nailed it.

the Euro Focus is a kick-*** car
 
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Old Oct 14, 2008 | 04:48 PM
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Originally Posted by geekswrath
Well at least Ford figured out the direct injection + turbo = efficient power formula. Until they can give thier cars some soul they will still only be met with limited success.
This is the same Ford that claims there new 50+MPG Focus diesel ins't cost effective to sell in the US... while VW marketed their 40+MPG TDI diesel Jetta in the US (shipped in from overseas) and sold through their 2009 production capicity almost before the first units hit the US.

Hey, but we'll just guarrantee them a $25B loan so they can figure out what their missing.
 
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Old Oct 17, 2008 | 11:43 AM
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The secret to MINI's financial success is to keep production just a hair below demand so dealers don't have to discount in order to move product. Hence, $2500 dealer markups. They also only have satisfy less than 100 dealers in the US as opposed to the big guys and their thousands of dealers. Quality and reliability are not the issues. MINI ranks mid-pack in that regard. My 98 Escort ZX2 had 200,000 trouble free warranty fix free miles on it when I sold it. Cant say that about my MINI.
 
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Old Oct 17, 2008 | 12:56 PM
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Does any other carmaker let you build your car online, exactly to your own specs and wishes? That is certainly a big part of the MINI formula.
 
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Old Oct 17, 2008 | 10:32 PM
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From: Washington. No, the other one.
They show up late to the party, dressed like idiots and wonder why none of the girls want to dance with them...
 
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Old Oct 18, 2008 | 05:55 AM
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Originally Posted by Ancient Mariner
They show up late to the party, dressed like idiots and wonder why none of the girls want to dance with them...
 
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Old Oct 18, 2008 | 05:57 AM
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Originally Posted by gkp
Does any other carmaker let you build your car online, exactly to your own specs and wishes? That is certainly a big part of the MINI formula.
MINI is the only one I am aware of. And that was one of the things that kept my interest while trying to decide on what I wanted.
 
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Old Oct 18, 2008 | 06:07 AM
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Good points all. I started out reading the article with an "oh good, they're finally getting it" attitude which after a few paragraphs changed to "how pathetic." I think Detroit automakers have painted themselves into a corner....and I'm not sure they can extract themselves.
 
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Old Oct 18, 2008 | 08:17 AM
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Originally Posted by gokartride
Good points all. I started out reading the article with an "oh good, they're finally getting it" attitude which after a few paragraphs changed to "how pathetic." I think Detroit automakers have painted themselves into a corner....and I'm not sure they can extract themselves.
There has been a looming gas crisis since the 70's. It comes and goes but in general it is getting worse and worse each time. Detroit (and a lot of the American public) has never "gotten it". I doubt they ever will. In fact, now that gas is below $3 in many places I suspect they are chomping at the bit to roll out the SUVs again. No foresight at all. Pathetic is a good word for it.
 
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Old Oct 21, 2008 | 05:45 AM
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Just typical corporate greed is all. They want to suck as much money out of you as they can, but meanwhile all other car makers around the world are at least three steps ahead of the game because they look at what is going to be needed in the future... Rather than shoving something down your throats until it is waaaaaaay too late.
 
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Old Oct 21, 2008 | 06:44 AM
  #21  
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Originally Posted by Tüls
these guys are idiots. They have euro spec versions of the crap we get here that are awesome. Like the focus there has a turbocharged 2.5-liter inline-five producing around 280 HP and 295 lb.-ft. of torque.

There are many cars like that over the pond we dont get. Yet these baboons are scratching their heads?

Start making good cars america. You'll sell them. And yes you might have to take less profit Maybe the big wigs up top could take a pay cut that would help. I'm sure some of their bonus' could pay a whole factory for a yr.
Totally agreed 101%. Their management makes no sense to me. I've wanted one of their Opels (in Europe, GM is branded Opel) for years and they still refuse to sell it here. I don't understand them. I think GM will collapse no matter what it does. Nothing they do now will save them. They should have taken off their dollar sign glasses during the 10-mpg SUV craze in the late 90s and focused on selling what the buyers WANT, not what's a fad. Don't worry GM, you're already down the drain. You just don't realize it.
 
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Old Oct 21, 2008 | 06:50 AM
  #22  
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Originally Posted by gkp
Does any other carmaker let you build your car online, exactly to your own specs and wishes? That is certainly a big part of the MINI formula.
I disagree somewhat. If you look on MINI's website, you can't get certain body colors and wheels. A few are strictly for the S models (both R53 and R55) or convertible. And I don't understand why the R55 doesn't get the same instrument panel, it's missing some information that they shouldn't skimp on. I was disappointed that I couldn't get a set of wheels on my R55 because it didn't show up on the list of available wheels. And in San Francisco, I saw an R55 with those exact wheels! Maybe the guy had one of each and swapped out the wheels. My specs sheet has quite a few compromises in choices although you wouldn't know it unless I described every option that I was substituting.
 
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Old Oct 21, 2008 | 07:05 AM
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What I want to know is why would Ford come into your town, by out the one and only Ford Dealership for miles, then close the doors? That happened here in my hometown...I'm still confused about that one...
 
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Old Oct 21, 2008 | 07:12 AM
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My observations if you don't mind... First, not only were America's big three caught off guard, but Toyota - just built a multi-million dollar facility in TX to build their gas guzzling big-boy trucks & SUV's. Nissan has a multi-million dollar facility in TN to build their gas guzzling big-boy trucks & SUV's. Honda has managed to build the ugliest (my opinion) SUV next to the old Hyundai Sante Fe. The new Pilot is "monkey butt" ugly as written in 'Motor Trend' and is quite thirsty. We all point to America as the idiots but you have to spread that love which doesn't make America's big three any smarter, but helps keep it in perspective. At least the Japanese big 3 continued to innovate and introduce small cars to America that people would buy...give them that.

One of the problems facing America's big 3 is the tax rates. The imports are given so many tax incentives to produce and import here that it creates an unlevel playing field when we tax our own so much higher.

My only problem with MINI's build-to-suit website is as mentioned you can't really get exactly what you want without moving to the S model or like the Chrome-line exterior...I like it but not the chrome mirror caps. I guess if they gave us many more options it would slow production/assembly so their menu type ordering in "Happy Meals" instead of a la carteis probably for a reason.

...thanks for letting me share. Have a GREAT day!
 
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Old Oct 21, 2008 | 11:14 AM
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[quote=DooBahDoo;2518599]My observations if you don't mind... First, not only were America's big three caught off guard, but Toyota - just built a multi-million dollar facility in TX to build their gas guzzling big-boy trucks & SUV's. Nissan has a multi-million dollar facility in TN to build their gas guzzling big-boy trucks & SUV's. Honda has managed to build the ugliest (my opinion) SUV next to the old Hyundai Sante Fe. The new Pilot is "monkey butt" ugly as written in 'Motor Trend' and is quite thirsty. We all point to America as the idiots but you have to spread that love which doesn't make America's big three any smarter, but helps keep it in perspective. At least the Japanese big 3 continued to innovate and introduce small cars to America that people would buy...give them that.

One of the problems facing America's big 3 is the tax rates. The imports are given so many tax incentives to produce and import here that it creates an unlevel playing field when we tax our own so much higher.

My only problem with MINI's build-to-suit website is as mentioned you can't really get exactly what you want without moving to the S model or like the Chrome-line exterior...I like it but not the chrome mirror caps. I guess if they gave us many more options it would slow production/assembly so their menu type ordering in "Happy Meals" instead of a la carteis probably for a reason.

...thanks for letting me share. Have a GREAT day![/q

This seems very true about Honda and Toyota this large bump in gas prices may straighten up Honda and Toyota before they start building Expeditions.Every recent generation of Honda and Toyota vehicles has grown bigger and bigger.
 
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