Blog comment: Blast from the past?.. or is there a future for a 50's car?
After expressing skepticism on Linda's post about the proposed arrival of a Chinese car to America I recalled having read another recent story on car imports. This time the contender is the Romanian-made Cross Lander 244X. The omniscient Edmunds.com provides a brief overview of the vehicle: based on the 1950's design, the 244X is supposed to appeal to rugged outdoor types who seek reliable no-thrills transporation, not soccer moms. Think a Land Rover on a budget (the base price is set to be around $20K). At a first glance, the SUV is a sure winner: inexpensive, designed for wilderness, and even visually appealing (albeit in a brutal way). In other words, a picture-perfect example of the winning "more-for-less" value proposition. However, the path to the American consumer isn't rosy: first the vehicle had to clear the EPA regulations; then, as AutoBlog reports, it was stalled by the NTHSA because of safety concerns. In the meantime, an AP article depicts other problems with the supply chain and marketing channels: particulary, a lukewarm response among potential dealers. And, to add insult to the injury, SUV sales are slumping.
What do these facts illustrate? Even a winning value proposition doesn't guarantee success if the timing isn't right or there are issues with the public, or problems with the marketing channels (Kotler, ch. 13). Another reason for my being less than optimistic about the future of both Chery and Cross Lander.

1 Comments:
I think it might be a bit easier for Cross Lander than for Chery: after all the car's been in existence for a number of decades. The most challenging aspect would be to overcome the "eastern european car" stigma and any associations with Yugos or Ladas -- both notoriously unreliable. Skoda seems to have done quite well, though.
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