AUTOMOTIVES Niche cars Automakers carve up the market with specialty items Automobile manufacturers all over the world are constant- ly trying to come up with a ‘‘hit’’ model that will scare the competition, take a bigger chunk out of the market, and ultimately bring in a larger profit for the company. As a result, ter’’ tremendous efforts are placed on ‘‘bread-and-but- high volume models such as the Honda Accord, Chevrolet Lumina, and Ford Taurus, to name a few. Manufacturers, however, do not spend all their time on high volume cars. Great emphasis is also placed on uaique and specialized items targeted toward a smaller group of consumers. In other words, auto makers will often try to come up with a car that does not have direct competi- tion, in an attempt to create a unique market of its own. This is called ‘‘niche’’ market- ing. Niche cars can improve an auto maker’s exposure and _ image. Toyota, for example, has some- times been criticized for being too conservative. Well, they didn’t sit too long before coming up with one of the niftiest products on the market today — the Toyota Sera (before i go too far with this, though, I have to warn you that the Sera is not sold in North America). The Sera is a sub-compact two-door hatchback equipped with a 1,5-litre four-cylinder engine. Nothing unusual here. What distinguishes the Sera from other econo-boxes is its unique, gull- winged doors. Yes, that’s right, the doors ‘‘swing up’’ like those on the Lamborghini Countach. Combined with a well-integrated, capsule-like design, the Sera is a definite attention-getter. As an automotive engineer, 4 had an opportunity to drive this fascinating car in Michigan earlier this year (as a test car), and I couldn’t ge anywhere. without drawing a crowd. Park it in any of the fast-food joints for five minutes, and you’ll get more peo- ple asking you questions about it than you ever imagined, ““What is this? Is this a prototype? Can I OVERDRIVE buy it here?... With the Sera, Toyota spiced up their conservative image and proved to the auto industry that they are capable of coming up with unique and creative designs. The Nissan S-Cargo is another example of a niche product which, once again, is not sold here. It’s a mini-utility truck that is shaped like a snail — thus the name S- Cargo. It’s practical and cute at the same time, and the toy-like style aiso attracts attention. Nissan can put these ‘‘fun’’ cars on the market and still make a profit because of their low-cost, flexible production processes. You can’t produce a low volume car inside a normal production facility and expect to make a profit — the overhead is just too much — which is why this type of manufacturing is a tricky business. To gain further insight into this topic, | called a good friend of mine, Harold Jahnke, who cur- rently works at General Motors in Michigan. Harold has extensive experience in product, technology, and business planning, so I knew that he could shed some fight on this subject. When 1 asked him why domestic auto makers have not been as aggressive as the Jap- anese in this area, he replied, “Traditionaliy, domestic auto makers Icoked for cars in the 100,000 to 250,000 cars per year range.’’ He continued, ‘One of the challenges for the domestic industry is to come up with a low volume car that is also profitable. “This can be achieved through a flexible manufacturing process GEO TRACKER from £11,245 in wo model *COR — UMINA +-APV + CAPRICE AMABO-¥ utilizing low-cost toolings. The Buick Reatta (no longer avail- able), and Cadillac Allante can be considered niche cars."’ Obviously, the big three are not sleeping. ‘‘Outside GM, Chrysler is also working on a profitable, low volume car. The new Dodge Viper is an example of a specializ- ed car designed to be produced in a low volume environment,’’ add- ed Harold. Another interesting upcoming automobile that is sure to stir up the industry is the electric car. General Motors, which has been showing off its version of a bat- tery-powered concept car, Impact, promised us that the car will even- tually reach our showrooms. When this concept car turns to reality, it would be aimed at a specific consumer group: en- vironmentally conscious people who may not need to travel long distances, and who appreciate high-tech solutions to today’s ever-decreasing natural resources. Both domestic and overseas auto makers are approaching the market somewhat differently — at least for now. I’m stif! waiting, though, for one of the auto makers to come up with my niche market idea: a modular car with interchangeable, recyclable plastic ‘‘shells’’ that dramatically change the style of my car to suit any oc- casion... | | What = 5 great. great ‘Geo guy: Seymour Country Ski Lift Passes with CHEVY CAVALIER 1992 #1 IN CANADA from 9,598 S-10 PICK-UP from *9198 in 2wo model FULL SIZE P/U from *13,$98 in awo mode ABS and power locks standard — choose from 2 door, 4 door, wagon, Value Leader, Rally Sport or the incomparable Z24 — and, it's back!! The RS & 224 convertible! Prices net of Freight & Rebate CUTLASS SUPREME | GEO HATCHBACK from *17,698_ from *7,740 791 GRAND AM air conditioning AZER .+ SUBURBAN + CAVALIER * CORSICA + BERETT “NEW 91 GMC extended cab " GHEVAGLET & TRUCK x: CHEVROLET GEO OLDsMoBILE, oes a great, great guy Rena Lely’