Smart buy of the year

TOKYO, Japan – The world wants more SUVs or sport utility vehicles! That’s the first bit of info I picked up from various motoring executives working the global market. The surprising bit of news is that car buyers are decreasing globally and it has reached a point where designers and manufacturers are now studying the trend intently and trying to figure out what product would meet the changing taste and needs of the “car” or “sedan” market. In spite of SUVs eating up sales, Japanese designers seem to be rediscovering “KAI “cars or “people‘s cars “or “micro “vehicles given the fact that urban family units in developed countries are getting smaller, car ownership and use becoming more expensive globally and mass transportation now competing against the sense of pride with ownership and individuality. This, we were told, does not apply to ASEAN where the demand is for vehicles with high-clearances, rugged suspension and carrying capacity.

Although much of Europe has embraced high performance diesel engines and fuels, electric vehicles or EV are now part of planning and regulation for European countries and will be as common as bicycles in the near future. During the Tokyo Motor Show many manufacturers displayed cars, utility vehicles and commercial vehicles all based on the EV or electric vehicle platform. I also learned from the many marathon press conferences particularly from Mitsubishi Motors Corp. that the global sales picture has completely shifted from Western and developed countries toward Asia specifically China and ASEAN.

Given the tough competition, many manufacturers / brands have come together to find strength in numbers, efficiency and shared technology. Sometime ago, It was announced that Mitsubishi Motors Corp. would be joining the Alliance of Nissan and Renault. This caused quite a stir among Filipino motoring journalists if not worldwide and this year, the question to be asked was how did joining the alliance benefit Mitsubishi and it‘s former direct competitor – Nissan. What we heard was straight out of MBA books. By coming together, the three car manufacturers created a combined fund that makes them a financial force to reckon with. Their combined purchasing power in turn has given them the power to get the best deal from suppliers and other partners or stake holders. While each member or manufacturers have their home court or territorial markets, they were limited to those markets. But under the alliance all three brands now share access to every members market thereby automatically making their market penetration and sales bigger.

Given that developing one vehicle model can cost over $100 Million, the 3 brands can chip in or share in the development and design cost of the project thereby making it less costly. They eventually get to share certain parts of the project such as the engine, brake system, suspension system or in some cases they all share the „Platform “(everything but the body model) This has been a common practice of manufacturers dating back into the ‚50s in order to maximize their ROI or Return On Investment on one platform. If any one member opts to stay away from a design or model because it does not apply in their home markets, they may do so. But if they change their mind later, they don‘t get special treatment or Alliance member privileges. They will be charged commercial rates by the other two alliance investors.

As far as Mitsubishi Motors Corp. is concerned, their membership in the Alliance has pushed the group to level up and is expected to be more competitive and adventurous in their product development and market expansion. As an example, I heard that Mitsubishi Motors Corporation hast started to move away from it‘s conservative position and will level up its investments on Research and Development on par with the Global average of vehicle manufacturers.

As an immediate result, Mitsubishi developed and manufactured 1 concept vehicle and 2 new models that meet the demands of the high end SUV market called the Eclipse Cross that is now being introduced to the European Market and the a mix version of an SUV/ MPV called the Expander. The Eclipse Cross is a clear design statement from Mitsubishi Motors that they are serious about entering the Euro market and competing head on with the established SUV brands from Germany and Sweden. On the other hand, the Expander which was launched in Indonesia a few months back has really caught attention in that test market where there is now a back order of 24,000 units!

I’m really not surprised because the seven-seater Expander looks, feels, and drives like an SUV. We got a chance to test drive several units that we drove through simulated slaloms, lane shifts and driving on a multi-surface testing circuit where they recreated various types of road surfaces from all over the world.The intention was to showcase how good the suspension of the Expander and I barely noticed the rumbles and bumps. Then they let us drive on a “race “track where the road would curve and bank or incline just like the ones you see during those “NASCAR“races. To be honest I was initially intimidated by the steep bank that made you feel like one mistake and you‘ll roll over as well as the fact that the Expander has a high clearance unlike race cars used on the track, but following my learnings and past experiences I floored the 1.5 petrol engine to 120 kph on the bank and the Expander did it like it was a daily drive.

Try as 13 journalists did, none of us could get the launch date of the Expander for the Philippines. My guesstimate is that it will be in town when I celebrate my birthday if not earlier. In terms of prices, I overheard a discussion that the unit will be very competitively priced, maybe even match up with the nearest competitor model. Given its modern styling and SUV looks with power to boot as well as capacity and seven seaters, I‘m confident that the Expander will become 2018‘s smart buy of the year.

* * * Email: utalk2ctalk@gmail.com CITO BELTRAN