The year 2020 can be called one of the most difficult times for the whole world, and perhaps no one will disagree with us in this regard. The outbreak of coronavirus in March disrupted and somehow froze daily life around the world; Including the auto industry, which was already thriving. Fiat Chrysler Automobiles and Peugeot Citroën Group have announced that they have reached an agreement to launch the world’s fourth largest automaker, the Atlantis. With the introduction of the Bronco 2021, Ford revived one of its most iconic products. GM also revived the Hummer brand by adding the GMC logo to the windshield, turning it into an electric vehicle.
However, even 2020 could not prevent some automakers from taking one or two wrong steps. GM’s relationship with Nicola and Beaumo’s desire to share services with customers were some of the wrong things that happened in 2020. With the end of 2020, in this article, we introduce 6 wrong actions in the automotive industry.
Nicola; Wrong choice of GM
Who can blame General Motors for wanting to get close to an electric car startup? Old carmakers and brand new electric car makers each found a partner for their future this year. Ford and Revin signed a contract and got closer. Hyundai and Remek have taken steps to increase cooperation, and there are rumors that Nissan wants to acquire or sign a cooperation agreement with Hercules. For some strange reason, when GM looked around to find a reliable partner, it turned to Nicola at first glance; An electric car startup whose ads promise to produce a hydrogen and electric pickup truck and an electric tow truck in the future. The two companies announced a $ 2 billion investment, and General Motors became Nicola’s partner in building the future Badger pickup.
There was a small problem; After the publication of the Hindenburg Research report on the fraud of Nikola and its CEO Trevor Milton, General Motors realized that it had not shown enough accuracy in its work. GM tried to stand by its new partner, but the happy days lasted less than two months, and the partnership was canceled, and Bajr inadvertently fell victim to it (though he may never have been alive to be sacrificed). The two companies signed a new agreement for the reputation of Nicola to supply hydrogen fuel cell propulsion for his future lethal truck. This is probably not true; But it is possible.
The big question is, why did General Motors choose Nicola, when there are so many reputable and promising electric car startups? For example, there were companies such as Lucid, Fisker and Faraday Future from which any major automaker could choose. There are even more cases. But General Motors clung only to Nicola, and because of this choice, the reputation of the American car giant was severely damaged.
Kia destroys the Optima brand
Earlier this year, it was announced that the next generation Kia Optima would not use the name “Optima”. Instead, Kia calls it the K5 and retires the Optima name, which has been used since its introduction in the United States. It was a strange move, destroying the famous brand that the company worked hard to build and increase its credibility for two decades. But the K5 name is more in line with what the company offers in its own country.
In recent years, carmakers have moved away from the numerical letters used by German carmakers for decades. Lincoln was one of the first to move away from such plans, and Cadillac announced the move in late 2019. This is what makes Kia’s changes even more interesting.
It is unclear whether Kia intends to change the name of all its products in the United States; However, the company currently offers models in the United States that have K-derived letters in South Korea. For example, the Kia Forte, Cadenza and K900 are called K3, K7 and K9, respectively.
Jeep mistake about Wrangler
Rule number one in business is to compete; But do not react. The answer is actually a well-thought-out process; While reactions are usually quick and seldom end in favor of the company. This is exactly what Jeep did about the Wrangler Rubicon 392; The move, which was originally a reaction to the introduction of the Ford Bronco, and to be honest, is a disappointing move. Some companies have already taken such hasty steps, and Jeep is not alone.
Some order V8 powertrains for Jeep Wrangler, and some after-sales service companies offer the same for customers. These are very specific customers who customize Wrangler for a very specific purpose and probably have nothing to do with what Wrangler’s core audience enjoys the most. Off-road and rocky driving is a low-speed activity where the number of gears, maneuverability, floor clearance and torque are more important than accelerating from 0 to 100 km / h or being able to move at high speeds. Things have gotten worse since Wrangler’s previous claims that the V8 engine was not suitable.
With the exception of a handful of hardline Mopar fanatics who make enough money to buy the Rubicon 392 Jeep Wrangler, this model will not be as popular as the regular Wrangler. In addition, the Rubicon Wrangler Jeep was not built to increase Jeep profits. This product is made to slow down the excitement of consumers in buying Ford Brunko, which has more than 190,000 approved reservations by eager buyers. Unfortunately, this plan has failed; Because we are at the end of 2020 and we talk about the Ford Bronco almost every day; Rubicon 392, on the other hand, has almost no place in the automotive industry news.
Withdrawal of Cadillac dealerships
Cadillac took bold action later this year, not only allowing dealerships to refrain from making the necessary updates to the brand’s upcoming electric vehicles, but also offering to buy them. Nearly one-fifth of Cadillac dealerships gave up, and even giving this option to dealerships would seem like a wrong and irrational move.
The Cadillac Lyriq will be the brand’s first all-electric vehicle to hit the market in 2023; While most or almost all of the company’s products could be fully electrified by 2030. If Cadillac wants to present itself as a luxury brand in the field of electric vehicle manufacturing, it must provide flawless service to the customer, and the scattered coverage of Cadillac dealerships for this purpose seems the opposite.
The GMC brand is preparing an all-electric Hummer; But so far only half of GMC dealerships have agreed to sell the electric car. Automakers can make great cars; But poor sales experience can hinder the success of a new vehicle.
Tesla’s dispute with California
Given moves such as downplaying the risk of COVID-19 epidemics and providing ostensibly the wrong type of ventilators to hospitals, it would be trivial to read Ilan Mask’s response to the Corona virus. Worst of all, Tesla fought against the California authorities and reopened the Freemont plant, despite orders not to do so.
Want to know more about the company’s stubbornness? No problem, the Washington Post reports, noting that the automaker has told workers who do not feel comfortable returning to work that they can stay home. At least two workers received a notice of termination when they did not return to work.
From a business perspective, it is understandable that Tesla wants to reopen the vital Freemont plant as soon as possible. However, this seems like a terrible decision in the current situation. Tesla seems to have told the health sector that the company has more information about reducing epidemics than medical officials.
A hopeless and risky future
Earlier this year, Beaumo announced its ambitious plan to deliver wireless product updates and key to a far-fetched future that no one has yet imagined. The German automaker noted that it can install some hardware features on its vehicles and then allow customers to access them by paying a subscription fee, and restrict their access through software. The company suggests that such features could include remote car start, heated seats, electric seat memory and more.
For the first time, BMW started adding in-car subscriptions by putting Apple CarPlay behind a paywall and asking customers to pay more than $ 80 a year to access the service. The company withdrew from sharing services in late 2019; But apparently Biyamu has not given up and is using another place to add a subscription to the car. As technology continues to permeate automobiles, automakers may be eager to monetize certain features through shared services. GM has had significant success periods with OnStar and its subscribers.
Shared services are ubiquitous and proliferating; So it makes sense for carmakers to try to get into this area. However, monthly costs of $ 10 to $ 15 can increase rapidly, leading to a future where one may have to decide between having Netflix or heated seats for a month.