New Car Designs: Is a Little Different Any Better?
As someone who works in the car business and likes cars, I love this time of year because of all the auto shows. Every year, we all get excited by the concept cars and all-new models that make the headlines at each show. But I also like to check out the less glamorous changes that are often made to existing models - things like new taillights, a revised front spoiler, or new wheels. The problem is that while I notice these "improvements," and obviously the folks at the carmakers also notice them, most consumers probably don't.
Based on some recent consumer ratings in J.D. Power and Associates' automotive studies, many of what the industry calls "mid-cycle refreshes" simply don't register with most consumers. We examined customer satisfaction ratings for a group of about 50 models that received exterior styling updates between 2000 and 2006. Of these, only five generated better ratings than their predecessor. Overall, "new and improved" usually wasn't, according to verified vehicle owners. Some of the examples of this are startling, especially to industry insiders. Consider the 2006 BMW 7 Series. Even though the press coverage was generally positive about BMW's efforts to improve the look of the controversial 7 Series design, most buyers didn't notice much difference. Customer satisfaction ratings for exterior styling for the 2006 7 Series are virtually identical to those for the 2005 model. Sales numbers haven't changed much, either.
The 7 Series is not alone. The 2006 versions of the Chevrolet Malibu, Chrysler PT Cruiser and Toyota Sienna are a few more examples of "freshened" styling that didn't move the needle with consumers. As with the 7 Series, exterior styling ratings are no better than the predecessor, and sales volume hasn't improved.
While auto manufacturers casually refer to these updates as "refreshes" or "enhancements," these changes are not cheap - carmakers spend millions of dollars to make them. I suppose these changes can give the carmakers something new to tell the dealers so they get more excited about selling these vehicles, but is that really enough? Perhaps the carmakers should consider making fewer changes and concentrate on making more dramatic changes. That way, I won't be alone when I get all wound up about the new front-end on my favorite dream car.
