Editor's note: Should cost be the prime concern?
Dan Romanchik, Technical Editor -- Test & Measurement World, 4/1/2004
According to the 10th annual DuPont Automotive/SAE Survey, cost, at 33%, is still the prime concern for automotive engineers attending the 2004 SAE World Congress & Exhibition. Respondents also listed safety at 13%, while 12% said it was alternative powertrains, and another 12% said fuel economy.
Perhaps it was the way the questions were worded, but it's amazing to me that quality and reliability are not on this list. The US automakers are not losing market share because they don't have the technology. Nor is it because their cars cost that much more than the foreign competition. The reason they continue to lose market share is that consumers still continue to believe that American brands are less reliable and of lower quality than European and Asian brands.
Like it or not, in most areas of the US you need a car. There's no such thing as the corner grocer anymore, and doctors don't make house calls. We need cars, and we need them to work reliably.
That's why I think that this emphasis on cost cutting is a false economy. Auto companies may be able to hold down sticker prices, but lower-priced parts often come at the expense of quality.
Cut costs, but don't cut quality at the same time. You may think you're saving the company money, but you'll pay for those lower prices by losing even more customers to foreign competition.
Contact Dan Romanchik at editor@aatr.net .
