Peter DeLorenzo: Groupthink has driven model proliferation among automakers

Quotes

“But the largest and certainly most demonstrable lemminglike behavior in this business is model proliferation. Itโ€™s loosely based on the philosophy that if a car company utilizes its vehicle architectures efficiently to create more models, then the profits will follow and everyone will look like a hero. Except that it doesnโ€™t really work that way.

The most strident proponents of the model proliferation philosophy are the German luxury auto manufacturers. Thereโ€™s no question that theyโ€™re the OGs of this movement. They exist in a world of their own making that revolves around the credo that if model proliferation is a good thing, then even more model proliferation is an even better thing. . . . All of this was fueled, of course, by the fact that the German luxury competitors have spent the better part of the last decade jumping at the slightest whiff of a rumor of a new product from one of their competitors to come up with an answer to that product of their own.”

— Peter DeLorenzo, Auto Extremist

RE:SOURCES

Also see ‘Brand management: The tail that now wags U.S. auto industry’

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