Geneva 2012

Author
Discussion

cardigankid

8,849 posts

213 months

Wednesday 7th March 2012
quotequote all
While I take your points, I would still question the value to AM of attempting to preserve residual values by restricting sales. Historically, Porsche had fabulous residual values, but my impression is that was based on top quality engineering resulting in reliability resulting in confidence in the product. Interestingly the quality has gradually gone downhill at Porsche from the 996 on, and while the company has been financially successful the residuals have after a little lag followed suit.

To go back to the original point, then, if they spent more money ensuring the quality and reliability of their product instead of producing glitzy specials and 'new models' for motor shows, this might do more for their residual values. This would involve taking a long term view, which I know is not normal, popular or easy. I don't think that the original idea of the Vantage stealing a big share of the 911 market is actually far from becoming a reality, and the crux of the matter is perception of quality and reliability rather than constant new models. Your stockbroker/lawyer customer wants to leave his car parked outside his house, get into it every morning and drive 10 miles to work and back, and just stick in petrol and have it serviced every year. For the most part they want prestige and reliability, not an 'enthusiasts experience'. That is what still sells Porsches.

There is also a difference between offering discounts to existing customers to trade up within the brand and preserving resale values across the board which allows customers to trade into other brands more easily.

Bentley may well make money out of the new EXP 9 F or Falcon or whatever they call it, and good luck to them. There is clearly a footballer's wives, WAG's lookalike and wannabe Gangsta market which loves driving around in big blingy SUV's, even more so if they have prestigeous badges. To me however, it is a major step towards Bentley being perceived as merely a high end Volkswagen product. It is transparently just another iteration of the Touareg. The next thing will be a Mulliner edition Audi. And while to see Wolfgang Durheimer so ostentatiously tugging the forelock to Mr & Mrs Piech and Dr. Winterkorn may only be a matter of showing due respect, it does significantly enhance this impression.

The Cygnet at least as I understand it allows AM to keep producing big NA V12's in the face of EU legislation, which is good, and you see so few of them that the brand dilution effect is far less that one might have expected.

Personally, I think that AM would be best joining Mercedes Benz. VW seem to be able to run a range of high end Sports GT manufacturers without competing with themselves. Mercedes have some nice GT's, but with the best will in the world they are big blunt instruments, and Aston would add a sharper bespoke product. They could only contribute to the reliability and quality question, and they would eliminate the constant doubt about Aston's financial stability which must also be a factor in residual values.





Edited by cardigankid on Wednesday 7th March 08:00

jonby

5,357 posts

158 months

Wednesday 7th March 2012
quotequote all
cardigankid said:
While I take your points, I would still question the value to AM of attempting to preserve residual values by restricting sales. Historically, Porsche had fabulous residual values, but my impression is that was based on top quality engineering resulting in reliability resulting in confidence in the product. Interestingly the quality has gradually gone downhill at Porsche from the 996 on, and while the company has been financially successful the residuals have after a little lag followed suit.

To go back to the original point, then, if they spent more money ensuring the quality and reliability of their product instead of producing glitzy specials and 'new models' for motor shows, this might do more for their residual values. This would involve taking a long term view, which I know is not normal, popular or easy. I don't think that the original idea of the Vantage stealing a big share of the 911 market is actually far from becoming a reality, and the crux of the matter is perception of quality rather than constant new models.

There is also a difference between offering discounts to existing customers to trade up within the brand and preserving resale values across the board which allows customers to trade into other brands more easily.

Bentley may well make money out of the new EXP 9 F or Falcon or whatever they call it, and good luck to them. There is clearly a footballer's wives, WAG's lookalike and wannabe Gangsta market which loves driving around in big blingy SUV's, even more so if they have prestigeous badges. To me however, it is a major step towards Bentley being perceived as merely a high end Volkswagen product. The next thing will be a Mulliner edition Audi. And to see Wolfgang Durheimer so ostentatiously tugging the forelock to Mr & Mrs Piech and Dr. Winterkorn may only be a matter of showing due respect, does significantly enhance this impression.

The Cygnet at least as I understand it allows AM to keep producing big NA V12's in the face of EU legislation, which is good, and you see so few of them that the brand dilution effect is far less that one might have expected.

Personally, I think that AM would be best joining Mercedes Benz. VW seem to be able to run a range of high end Sports GT manufacturers without competing with themselves. Mercedes have some nice GT's, but with the best will in the world they are big blunt instruments, and Aston would add a sharper bespoke product. They could only contribute to the reliability and quality question, and they would eliminate the constant doubt about Aston's financial stability which must also be a factor in residual values.




Edited by cardigankid on Wednesday 7th March 07:54
A lot of what you say makes sense. But bottom line is if the product was priced sensibly in the first place, with no discount then given, all the rest would follow. That's theoretically easier now that overall sales have stabilised but with a larger proportion in new markets, as that means fewer Uk sales so hopefully supply & demand level out

Becoming harder & harder to be a true independent & compete at every level with the bug guns though - as we all know and refer to in different ways the other problem is sheer lack of money for R&D. They should be complimented btw, bearing this in mind, for just how good their current product quality is

George H

14,707 posts

165 months

Wednesday 7th March 2012
quotequote all
Slarti said:
F12 is far from horrible to look at IMHO and the rest of them are all drop dead stunners. I guess im just in the majority ;-) I'm seriously contemplating a 458 but I'm stingy and despise paying over the odds (and rrp) for anything, not to mention the daft depreciation that a purchase right now would have me endure. Any 360 is one of the ugliest ferraris ever designed (which isn't so bad cos ferarris are generally gorgeous)...
I think the 458 is one of, if not the worst design to come from Pininfarina in a long, long time. The badly fitting and horribly creased bonnet looks awful, the little splitter type things in the front bumper look stupid, the whole rear end is even worse than the monstrosity on the F12. The curve for the side profile looks alright, but if you move to either side the design is ruined. The last gorgeous Ferrari imo is the 355. The 360 wasn't that bad, the 430 looks fairly dull yet positively beautiful compared to the 458. As for the FF and California, well looks aren't exactly their strong point. On the other hand, I think the MP4-12C is a masterpiece of design, subtle yet effective. The only modern supercar I'd like to own.

Grant3

3,635 posts

256 months

Wednesday 7th March 2012
quotequote all
Interesting debate, but let's not get over negative, the 997 series 911 was launched around the same time as the Vantage and even with Porsche's vast resources it has only just been replaced with the new 991. Aston have also been actively developing the range every year, with sensible customer led updates..... We even have a decent Sat Nav now!!!

I can't see the value in the Zagato myself, it even weighs the same as a V12V, so is a missed opportunity, they should have reduced the weight and upped the power for 400k, but to be fair every other top end manufacturer is launching these low volume specials, Lambo's 1m Special, Porsches 2 Exclusive's, Allfas etc, etc - so if it helps make money and finance the next update great!

If you look at Porsche's profit by model, their top end models earn vastly more profit per unit than their lower end range, the Turbo doesn't cost that much more to produce than a Boxster S, as such I think Aston are developing the new Db9/S and low volume high price tag models first to try and maximise margins. I think (but it is only a guess) that the new models will break cover later this year with the Vantage following in 2013.

I read an interesting article in Autocar, when interviewed, Tata was asked if he would like to own Aston as well as Jaguar, he replied yes, but there is the issue of their debt and I believe they have decided to work with Mercedes Benz!! So that thread is still active.

Interesting times, I disagree with those that think residuals aren't important, it doesn't matter how much money you have, you don't want to spend £160k on a V12 Aston only to see it loose 60k in a year, UK supply needs to be reduced and world sales improved, particularly in the USA and China etc.

Overall I believe AM are doing a very good job under difficult circumstances, with a world recession affecting sales and little cash to develop new models, they are upholding the brands honour IMO.

Edited by Grant3 on Wednesday 7th March 09:04

George H

14,707 posts

165 months

Wednesday 7th March 2012
quotequote all
Grant3 said:
Interesting debate, but let's not get over negative, the 997 series 911 was launched around the same time as the Vantage and even with Porsche's vast resources it has only just been replaced with the new 991. Aston have also been actively developing the range every year, with sensible customer led updates..... We even have a decent Sat Nav now!!!
Same with Audi, the R8 has been out since 2006 and remains unchanged. Yes they've added the V10 but it's only the same as AM adding the V12V.

The Jag XK has been around sine 2006 too, the Lamborghini Gallardo since 2003 (albeit with a fairly big facelift in that time). AM aren't exactly alone with constantly updating the same aging model, yet they seem to get criticised fairly heavily for it though.

Neil1300R

5,487 posts

179 months

Wednesday 7th March 2012
quotequote all
cardigankid said:
The Cygnet at least as I understand it allows AM to keep producing big NA V12's in the face of EU legislation

Edited by cardigankid on Wednesday 7th March 08:00
Please can we all stop this on the Cygnet! Dr Bez has publicly stated it is NOT for EU legislation as Aston build under 10,000 units per annum. It's because he thought it was a good idea.

Vantagefan

Original Poster:

643 posts

171 months

Wednesday 7th March 2012
quotequote all
I'm certainly not going to argue with you George, having read many of your posts on here I know I'd be outwitted very quickly.

But...could it be that the changes Lamborghini have made to the Gallardo are perceived as being better/newer/bolder is because they aren't simply taken features that already exist on a car with exactly the same shape?

IIRC:

Vantage look lovely at launch.
N400 comes out
N400 sills and clear rear lights go on the standard model as options, then as standard
N420 comes out
N420 carbon side strake, diffuser and splitter available as option on standard model
V12 Vantage comes out
The best of the V12V and V8V combine to make V8S
V8S wheels, splitter and diffuser on standard model

That doesn't include the mechanical changes that one model has passed on to the others. Whereas this isn't bad business sense (take equipment already homologated, tested and approved and fit it to a body you know it fits on) in terms of saving manufacturing costs you can't help but feel that it's scrimping and saving at its best but design innovation at its worst.

Vantagefan

Original Poster:

643 posts

171 months

Wednesday 7th March 2012
quotequote all
"...n personalization. A team that brings our designers together with engineers and highly experienced craftspeople, allowing customers to enhance and personalise their Aston Martin with meticulous attention to detail."

I was just reading the Aston press release on Geneva to see if anything exciting was happening and came across two different spellings of personalise. Usually doesn't bother me (I lie, it does) but you'd think a British manufacturer would use the non-z version!

Sorry for the rant but in the same way I hope someone at Aston is scribbling out the design of another V8V special edition in response to our comments, I hope someone in PR is being slapped in the face with a dictionary.

moan

George H

14,707 posts

165 months

Wednesday 7th March 2012
quotequote all
Vantagefan said:
I'm certainly not going to argue with you George, having read many of your posts on here I know I'd be outwitted very quickly.

But...could it be that the changes Lamborghini have made to the Gallardo are perceived as being better/newer/bolder is because they aren't simply taken features that already exist on a car with exactly the same shape?

IIRC:

Vantage look lovely at launch.
N400 comes out
N400 sills and clear rear lights go on the standard model as options, then as standard
N420 comes out
N420 carbon side strake, diffuser and splitter available as option on standard model
V12 Vantage comes out
The best of the V12V and V8V combine to make V8S
V8S wheels, splitter and diffuser on standard model

That doesn't include the mechanical changes that one model has passed on to the others. Whereas this isn't bad business sense (take equipment already homologated, tested and approved and fit it to a body you know it fits on) in terms of saving manufacturing costs you can't help but feel that it's scrimping and saving at its best but design innovation at its worst.
A lot of the Gallados that have been made are similar to what you say with the V8V - very minor changes that are then added to a later model. Off the top of my head there has been:

Gallardo
Gallardo SE (no mechanical differences, just available in certain colours with different wheels)
Gallardo Nera (no mechanical differences, just avaiable in 2 tone black)
Gallardo Superleggera (lighter, more powerful)
LP560-4 (fairly substantial facelift, more powerful) - 4.3 to 4.7 esque?
LP550-2 Balboni (2 wheel drive, less powerful)
LP570-4 Superleggera (lighter, more powerful)
LP570-4 Blancpain edition (limited edition Superleggara but with a bigger rear wing)
LP560-4 Bicolore (no mechanical differences, basicly the same as the SE but for the 560-4)
LP560-4 Tricolore (no mechanical differences, just with a fancy Italian flag stripe over it)
LP550-2 Singapore edition (LP550-2 Balboni with a LP570-4 body kit)
LP570-4 Super Trofeo edition (LP570-4 with a bigger rear wing)

There's probably a few more that could be added to the list too. I agree it's probably down to saving costs, maybe also to test things for the next production model? Limited edtions with no mechanical differences do irritate me, it just seems another way to extract more cash from customers wanting the latest thing, but if they can make it work then why not? They aren't the only manufacturer to do it, certainly wont be the last.

jonby

5,357 posts

158 months

Wednesday 7th March 2012
quotequote all
lambo are such a low volume manufacturer (around 1/4 the cars AM produce) that their range isn't directly comparable. Or alternatively you could argue they are - they only develop a new product once in a while but unlike AM , they restrict sales to meet demand & don't discount

Audi may not have revamped the R8 but they launch a genuine new product within the company every few months

As it happens though, for me, it's not product cycle length or the actual product currently being produced. It's the combination of worry about how their products will continue to compete, it's the awful pricing policies and the lack of any kind of clarity as to what they are trying to do as a firm and where they see themselves in the marketplace

All manufacturers cost cut but it's extremely worrying when you see AM's attitude - too many products are patently not what they wanted them to be simply because of lack of funds. The current Vantage is only now finally what it should (and technologically could) have been on launch. The Zag is not nearly what it was planned as being when first conceived, which is why we now have the oddball combination of a car which costs 4 times it's donor car but offers no better performance or handling than the donor. The one 77 still has that awful switchgear we all live with on our regular models doesn't it ?

So whilst I may be happy with the current product range, as each year goes on and AM products struggle more & more to be competitive on the performance/handling/price front, fewer and fewer people will be swayed by the image/specialness/smell/noise/interior luxury selling points

Ice27

802 posts

160 months

Wednesday 7th March 2012
quotequote all
Vantagefan said:
"...n personalization. A team that brings our designers together with engineers and highly experienced craftspeople, allowing customers to enhance and personalise their Aston Martin with meticulous attention to detail."

I was just reading the Aston press release on Geneva to see if anything exciting was happening and came across two different spellings of personalise. Usually doesn't bother me (I lie, it does) but you'd think a British manufacturer would use the non-z version!

Sorry for the rant but in the same way I hope someone at Aston is scribbling out the design of another V8V special edition in response to our comments, I hope someone in PR is being slapped in the face with a dictionary.

moan
Well spotted! Not what I'd describe as meticulous attention to detail!

Vantagefan

Original Poster:

643 posts

171 months

Wednesday 7th March 2012
quotequote all
True, and at least Aston's special editions aren't simply a lick of paint (Don't get any ideas!).

Maybe I'm getting touchy just because of the Aventador J. That's very limited edition and is a little bit different. I wouldn't be the customer but it restores faith seeing manufacturers push the boat out a little.


Cheib

23,288 posts

176 months

Wednesday 7th March 2012
quotequote all
I think before criticsing the Zagato pricing it's worth remembering that Aston need cars like this and One 77 to stay solvent and put some cash in the bank to develop new models. So if a few Arab playboys or Chinese billionaires buy these cars it hopefully means the next generation of Aston's will be that little bit better. Compared to their peers Aston's budget is asbolutely tiny so they need every single penny,.

steveatesh

4,900 posts

165 months

Wednesday 7th March 2012
quotequote all
Cardigan kid said: if they spent more money ensuring the quality and reliability of their product instead of producing glitzy specials and 'new models' for motor shows, this might do more for their residual values

Which echos my own thoughts expressed in a recent post. Quality and reliability are strategic issues and AM must improve both by reducing the niggles that arise. Far too many times the words "it's a known issue" appear. It's probably the accountants saying get a £5 thermostat rather than a £6 one at the root cause - yes they are mainly niggles that are put right under warranty but others gain the perception of poor reliability as a result and that impacts sales.

And it's something that can be done right now without waiting for new models surely!

jonby

5,357 posts

158 months

Wednesday 7th March 2012
quotequote all
I don;t think their quality is at all bad and is far from the most pressing concern

Jockman

17,917 posts

161 months

Wednesday 7th March 2012
quotequote all
Why do some assume that big is beautiful ??

Aston is a small player with growing sales from what I can see, whilst the volume manfacturers are looking to close plants due to over supply.

Aston has successfully carved out its niche. Other prestige marques rely on bigger parent companies cross-subsidising.

I for one am optimistic for the future smile

brakedwell

1,229 posts

200 months

Wednesday 7th March 2012
quotequote all
Jockman said:
Why do some assume that big is beautiful ??

Aston is a small player with growing sales from what I can see, whilst the volume manfacturers are looking to close plants due to over supply.

Aston has successfully carved out its niche. Other prestige marques rely on bigger parent companies cross-subsidising.

I for one am optimistic for the future smile
I hope you are right.

Neil1300R

5,487 posts

179 months

Wednesday 7th March 2012
quotequote all
Jockman said:
Why do some assume that big is beautiful ??

Aston is a small player with growing sales from what I can see, whilst the volume manfacturers are looking to close plants due to over supply.

Aston has successfully carved out its niche. Other prestige marques rely on bigger parent companies cross-subsidising.

I for one am optimistic for the future smile
Glass half full, you must still be on holiday wink

jonby

5,357 posts

158 months

Wednesday 7th March 2012
quotequote all
Jockman said:
Why do some assume that big is beautiful ??

Aston is a small player with growing sales from what I can see, whilst the volume manfacturers are looking to close plants due to over supply.

Aston has successfully carved out its niche. Other prestige marques rely on bigger parent companies cross-subsidising.

I for one am optimistic for the future smile
That would be absolutely great except for one thing - they do over supply - they should be producing about 1k less cars per year based on the current line up

Jockman

17,917 posts

161 months

Wednesday 7th March 2012
quotequote all
Neil1300R said:
Glass half full, you must still be on holiday wink
Mon Dieu...how can you tell Neil ??

I was pondering a situation of a local vauxhall plant (Mr Gould will verify) that could be about to be closed with the loss of 2,100 employees, which really means, say, 8,500 people if you include related industries.

Double this figure, to estimate the amount of family members affected by this decision.

And we´re worried about..... smile