Saturday, November 19, 2011

Porsche: A Variant for Everybody











Porsche is notorious for making multiple variants from the same model line. Within the 911 model line there are 25 different variants to choose from. As such, there is a 911 to fit the needs of every 997 driver. Porsche traditionally produces the most variants towards the end of a model's life, yet the Panamera already has 8 variants to choose from! While not the only manufacturer to produce an excessive number of variants, Porsche has made it into an art. 

This product plan has many positive aspects from the manufacturers point of view. For one, each model line has multiple variants that enable the manufacturer to compete strategically in the marketplace by filling multiple niches and price points. For example, one might compare a  base Panamera against cars such as the 7 series, A8, XJ, and others. On the other hand, the range topping Panamera Turbo S competes with the likes of the Rapide and Continental Flying Spur. Not simply is the same model line able to compete across various segments, but Porsche is able to do it at a significant cost savings. Rather then engineering a complete new platform, only specific components are changed along with equipment either added, taken away, or modified. That being said, the amount of variation can be minor such as the difference between a base Carrera and a Carrera Black Edition, or on the extreme side, the difference between a base Carrera and a GT2RS. Despite the extreme differences of the latter two cars, they still use the same platform and have many other components in common, therefore increasing profitability while offering the consumer completely different characteristics.

This formula seems to have worked for Porsche. Instead of the "one-size fits all" philosophy, the customer has the choice, allowing more individual specifications. By having multiple engine options, Porsche can cater to a broader variety of customers. The same goes for the ability to choose from rear or four-wheel drive, in which buyers usually select based off of their geographical location. Last, the purpose of the car can be altered through different variants such as the choice of a cabriolet or coupe, or a more enthusiast focused version such as a the "R", "Spyder", or "GT" trims. 

As previously mentioned, the greatest number of new variants appear at the end of a models life cycle. This builds some excitement around a product that has had its sales decline due to age. In turn, this allows Porsche to sell a last few cars and extract some final profits from the aging model. 

From the consumer perspective it is both good and bad. Good in the sense that there is a lot of choice and that you truly pay for exactly what you want to drive. A basic model will cost a lot less then a top spec loaded car. So depending on which model one is looking for, their product strategy could potentially offer an advantage. 

Over the years the number of variants has continued to grow. As a result, at the end of the model run of the recently introduced 991, don't be surprised to see Porsche create over 30 variants.!







Saturday, November 12, 2011

The Fate of the Manual Transmission

As many are aware, the future of the traditional manual transmission is looking grim. Automakers across the continents have been dropping this "cog-swapper" from their lineups. Manufactures like Toyota, Audi, and even Ferrari have either reduced availability or eradicated the good old manual. This is not just happening in the United States, it is a global problem.

In the past few years, the rate of decline for the manual transmission has increased significantly. In entry level and luxury automobiles in the US, customers are specifying the "automatic" option instead. This is partly because people are lazy. Some believe "why should I have to do all of this work when the car can do it for me". Or people feel that they can't manage to eat, drink, text, or do anything else that requires at least one hand, with a manual. The other common reason is that many do not know how to drive a manual and don't bother to learn. As less cars are produced with a manual, and less know how to drive one, the younger generations have a more difficult time getting access to the resources necessary to learn. And finally, as automatics gain more and more ratios, they become more efficient then their manual counterparts. 

For performance cars, the reason of decline is usually different. THE DOUBLE CLUTCH GEARBOX!! While it is a great device, it is the predator of the manual. Most of these transmissions can shift faster then any human possibly can. While this does marginally help acceleration and lap times, most drivers will not even be aware of the benefit. Also, these transmissions are in many cases more efficient, yet do not have a significant enough advantage over a manual to warrant substitution. Many drivers with these state of the art transmissions will say they get the involvement of a manual with the flexibility of an automatic. Nonetheless, it is not quite the same a having a 3 pedal car. 

Due to the reasons mentioned above, sales of manuals have severely dropped. Accordingly, automakers are not spending the money to engineer and certify their cars with an alternative transmission, when they know the take rate will be low. This applies to many car makers who one would expect to offer a manual transmission as a large number of their customers seek performance. Such automakers include Ferrari, who no longer offer a manual option, and Audi, who is cutting back on their manual lineup. 

While many manufacturers are cutting back, there are a few who remain committed to the manual for the time being. Porsche offers a manual on at least one vehicle in all of their model lines (manual Panamera is offered in Europe). Even on their Cayenne SUV, one can get a manual. With the new 911, Porsche introduced the world's first 7 speed manual, making the difference in efficiency of the two transmissions offered negligible. Another distinguished automaker is BMW. They offer a manual in the 5 series, something that no other automaker in the same class does. Interestingly enough, in Europe customers now view manuals as an entry level offering, while in America, it is viewed as a performance option. Thus lower spec European 5 series get the manual, while it is reserved for the top trim level in the US. With the new M5, they will also offer a manual for the US, again unique in its segment. Despite this, BMW  has even made some of its own cutbacks. The new X3 can no longer be had with a manual as well as F10 xDrive 5 series. Aston Martin, what is considered a very "traditional" company also has cut back on its manual offerings. For 2012 a DB9 can only be had in Auto and they recently introduced 3 new products without manuals. Car companies have demonstrated that they will offer a manual in products only where there is enough demand. 

So, why should one by a manual? For one, it offers a connection with the car that no automatic, double-clutch, or any other transmission can offer. As cars gain more  technology and electronic barriers, the driver naturally losses feedback with the car. The manual preserves that. Further, there is nothing like mastering that perfect upshift or smooth downshift. Or for those more advanced, it is great to be able to rev-match your downshifts. In many cases, the manual is often the less expensive transmission too. Overall, a manual makes driving FUN.

It is up to consumers to decide how much longer we will see new vehicles offered with a manual transmission. For 2006, BMW launched the M5 and M6 without a manual transmission. Customers were not happy so for the 2007 model year a manual was offered. Multiple automakers have said that they will only continue to offer a manual if consumers demand it. There is a fine line between what is and what isn't worthwhile to produce from an automakers perspective. That being said, we must make an effort with our wallets, to preserve the pleasures of driving that can only be had with a manual. 

Saturday, November 5, 2011

The New BMW 3 Series...

BMW released the new 3 Series on October 14th. After years of research and development, the automaker hopes to continue the success of the previous iteration. 


New to BMW with both the new F20 1 series, and the F30 3 series, are different "equipment lines". While this  tactic has been offered by competitors such as Mercedes, (C-Class Luxury and Sport Variants) Audi (Premium, Premium Plus, Prestige) along with others, BMW has traditionally been unique in the class with their abundant order combinations. Although US specs have yet to be released, it is unlikely that you will be able to get for example, the aggressive sport variant with a Saddle interior and walnut trim. This is really a shame as some customers might want a more custom specification which is no longer available as the packages will probably have restrictions. 


While the new combination limitations might be disappointing, one area to applaud BMW is on the new chassis. BMW has been designing their product with a more luxury and comfort emphasis, while losing their distinctive sporty traits. Unlike other recently released products, (5, 6, X3) the 3 series manages to actually LOSE weight in comparison to the the previous generation, the E90!!! Hopefully, this translates into a sportier car which handles just as well as the praised E90 and still maintains the sporty ride. In their press release, BMW emphasizes that their car is as dynamic as ever. Many customers choose the 3 series solely because it is the most "athletic" car in the segment and hopefully BMW recognizes this and engineered the car to fit this need, suspension tunings included. That being said, it would be nice to know that BMW finally got an electronic steering system right. Ever since BMW has introduced electronic steering in an effort to reduce fuel consumption, their cars' steering has been severely criticized. BMW should have had sufficient practice with the system and fine tuned it enough to maintain the 3 series trademark steering, despite switching to an electronic system. 


Lastly, while the loss of a naturally aspirated engine is a shame, hopefully the new I4 will be a good replacement! In the coming weeks we will know more about the vehicle. BMW claims to have greatly improved their most important product, but only time will tell.