Coming to Detroit in the middle of January is nobody's idea of a good time, unless you're a car junkie, that is. For decades, car junkies from around the globe have been trotting to Michigan in the dead of winter to attend press conferences on a grueling schedule at which some of the hottest cars on the planet are debuted. The 2008 North American International Auto Show in Detroit marks my 11th consecutive year covering this media extravaganza, and to be perfectly honest, it's not much fun anymore.

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Female buyers tend to buy compact models—especially fuel efficient crossovers—equipped with the latest safety features and which retail for less than $25,000, such as the new Nissan Rogue, according to J.D. Power and Associates research.

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When we landed at the Minneapolis-St. Paul International Airport on a snowy night in late December, we gathered our bags and headed for the Hertz Rental facility, which was located in one of the terminal's three-story parking ramps. It was windy and 18 degrees. My husband, who is a Hertz #1 Club Gold member, reserved a Ford 4WD Explorer for our week in Minneosta's winter wonderland. A gold XLT model was waiting in the garage spot with our name above on an electric sign. A Hertz perk.

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Our two youngest sons, ages 18 and 20, have grown up with little idea of the distinction between domestic and imported cars. Toyota and Honda are familiar brands that seem just as American to them as Ford or Chevrolet. Throughout the second decade of their lives, the Toyota Camry and Honda Accord midsize sedans have been the 2 best-selling cars in the U.S.—quite a difference from when the Ford Taurus was the top selling car (1992 through 1996). This year will be the 11th consecutive year that the Camry and Accord are the top-selling cars in the U.S., according to data from J.D. Power and Associates.

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When I first saw the Hummer H3 parked in our driveway, I felt like hiding. In Victory Red with chrome trim, the vehicle appeared like a smaller version of the road hog Hummer H2 warrior—4WD and all. I couldn't believe my husband had rented a Hummer for our weekend trip to Mammoth Lakes in the California Sierra Mountains. Both of us care about fuel economy and I drive a compact vehicle.

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Minivans are not hot. They are not hep, hip, cool, phat, sick, or whatever slang today's teenagers are employing to express personal enthusiasm for—and bestow social acceptance upon—a person, place, or thing. The closest to cool that a minivan has ever gotten is the Volkswagen Microbus, and then only within granola-munching, Birkenstock-shod, Grateful Dead-listening, surfboard-toting circles. Minivans are appliances, transitional lifestyle vehicles that serve a specific purpose and are disposed of just as quickly as is practical.

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I often travel to both the New York City metro area and to upstate New York, so I get to see the mix of vehicles in these two regions. When I return home, I mentally compare the vehicles that people are driving in New York City and upstate with the vehicle mix here in the Detroit metro area. The difference is like night and day. Here in Detroit, you might see five Buick Rendezvous crossovers while driving in a span of just ten minutes. In either upstate New York or the New York City area, you might not see a Buick Rendezvous for a week, or maybe even two weeks!

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The trend toward compact models - whether based on better fuel economy, entry-level prices, the attraction to small, sporty and versatile models, or all of the above - continued to gain ground in the first month of 2007. During the first four weeks of January 2007, the average compact basic model remained on U.S. auto dealer lots an average of 39 days before selling - 9 fewer days than in the same month a year ago. The retail turn rate (days to turn) in January 2006 was 48 days, based on data collected by the Power Information Network (PIN), a division of J.D. Power and Associates.

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If a non-premium nameplate hopes to compete with the big boys—General Motors, Ford, Toyota and DaimlerChrysler—it needs to, first of all, have an entry in the midsize conventional car segment, and, second, do well in the segment. After all, the midsize conventional (sedan) car segment, which includes models such as the best-selling Toyota Camry and Honda Accord, continues to dominate the new-vehicle market. With a 13.59% share through the first four months of 2007, this segment is the largest of all 26 vehicle segments that J.D. Power and Associates tracks and analyzes.

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German luxury automakers pride themselves on incorporating the latest technologies into their flagship models. Models like the Mercedes-Benz S-Class, the BMW 7 Series, and the Audi A8 each feature leading-edge automotive technologies. These direct competitors are similar, and each offers massive power and performance, a beautiful interior with the look of hand craftsmanship, and the capability to cruise cross-country or to the mall in effortless comfort. Relax with audiophile sound systems, heated and cooled seats, and a suspension that filters jarring road impact. For successful business people and entrepreneurs who can afford them, these automobiles provide a seamless integration of creature comforts and technology.

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There's an automotive evolution occurring. Way back when, there was the promise of a car in every driveway. There is now a car for every driver. Going forward, there may be a car for every function. The good news is that there's a variety of models with varying functionality available for today's consumers. The important thing for consumers is to identify what functionality is important to them. Forget about the segment or marketing descriptor - just pay attention to what is important to you.

Continue reading "What It's Called vs. What It Is" »

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A higher percentage of females purchase less-expensive vehicles - compacts and smaller crossovers, for example - mainly because younger, single females sign the sales contract, while there is a greater likelihood for older females to be married, and sales records may only show the husband's name, according to Tom Libby, senior director of industry analysis for the Power Information Network (PIN), a division of J.D. Power and Associates. Purchase trends in 2006 reflect these factors.

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The past couple of years have been times of change in the auto industry. Skyrocketing fuel prices, increasing concerns about global warming, and continued unrest in the Middle East have helped fuel demand for improved fuel efficiency. For some consumers, hybrid vehicles have become the "poster child" solution. Perhaps nobody has benefited more from this than Toyota, especially given the almost cult-like success of the Prius. Toyota's devotion to hybrids notwithstanding, other automakers are also getting into the game. But with an increasing number of hybrids on the market and even more being planned for the future, where are the fuel-efficient luxury hybrid models?

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