Tuesday, April 15, 2014

New York Auto Show: Showcasing Auto Strategy

The New York International Auto show opens this weekend and automakers are showcasing their latest models. The introduction of remodeled vehicles gives indication of each automaker's strategy to attract customers and maintain its market share in different areas.

Many automakers are introducing electric hybrid or more fuel efficient versions of their best selling cars. This indicates a strategy pushed by government forces, which are dictating minimum miles per gallon. It also shows a shift towards customer demand, as customers demand more fuel efficient cars. As fuel prices continue to climb, customers are increasingly looking for fuel efficiency in purchasing vehicles. For example, the 2015 Ford Focus Electric will be released at the Auto Show. The Ford Focus is the world's best selling car, and Ford's flagship car. Introducing an  electric version indicates that Ford is focusing its strategy on common fuel efficient cars.

Furthermore, Jeep will be introducing a larger model car that attains 30MPG. Jeep/Chrysler is a company that previously focused on muscle cars and functional four-wheelers that were not known for their low mileage and environmental benefits. However, the new Jeep Renegade will get higher gas mileage and a much smaller engine. It will also replace the Jeep Patriot, which had gotten only 23MPG. This increase in mileage shows Jeeps' commitment to smaller engines and fuel efficiency, most likely built from research and development initiatives seeking to capture market share in an energy conscious market.

Source: http://www.businessweek.com/articles/2014-04-15/five-models-that-will-matter-at-the-new-york-auto-show#r=most popular

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