Automakers Tailor Models to Canadian Marketplace
Posted: Wed Feb 25, 2004 2:39 am
From the Detroit News:Automakers Tailor Models to Canadian Marketplace Dealers find bigger isn't betterFor nearly half a century, the U.S. and Canadian car markets have operated essentially in lockstep as if the 4,000-mile border were invisible. But suddenly, sharp differences are beginning to appear in new car showrooms on both sides of the border. At the recent Toronto auto show, visitors got their first glimpse of products such as the new Pontiac Solstice roadster, Ford Mustang and Chrysler 300C destined for Canadian and U.S. showrooms. Manufacturers have occasionally produced models unique to Canada, such as the old Pontiac Firefly, but the practice is getting more attention from several automakers because of economic and lifestyle considerations. "You're seeing this trend this year more than at any other time," said Phil Martens, Ford's director of North American product development. Some of the Canada-only products are little more than rebadged versions of existing models sold in both countries, the result of Canadian franchise laws. But there are broader and more significant trends driving the divergence between Canada and the United States - factors that manufacturers in Detroit are viewing with a fair share of apprehension. "The Canadian market demands smaller, sensible vehicles that offer some amenities," but not the lavish content seen in the United States, says analyst Dennis DesRosiers, president of Ontario-based DesRosiers Automotive Consultants Inc. The Canadian market also is mirroring shifts in other regions outside North America. That's good news for foreign-based manufacturers, such as VW, Nissan and Toyota, who can tap products they're already selling abroad. Canada's shifting marketplace poses more of a problem for Detroit automakers, cautioned Ford's Phil Martens. Developing a new wagon or hatchback off an existing North American product is an expensive task, he said, while acknowledging "consumers don't care about margins. We have to figure it out (and) get in the game," or risk losing market share.