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First
written on December 04, 2009
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Revised
on Friday, February 19, 2010
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New
Product Development - Flops of auto models in the last 15 years and why they failed?
New product
development (NPD) is a very expensive proposition. In the
auto industry, it is their lifeline. I am giving below 10 of
the new models that flopped in the last 15 years.
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1995 Ford Explorer |

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1997 GM EV1
- from GM |

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1997 Plymouth Prowler
- from GM |

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1998 Fiat Multipla |

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2000 Ford Excursion |

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2001 Jaguar X-Type |

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2001 Pontiac Aztek
- from GM |

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2002 BMW 7-series |

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2003 Hummer H2
- from GM |

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2004 Chevy SSR
- from GM |

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It would be
observed that GM accounts for 5 flops out of 10. Ford - 2.
Fiat - 1. BMW- 1 and Jaguar - 1. It will also be noted that
there is no presence of any Japanese models in the
above list.
Why the
above models failed?
-
Ford
Explorer failed because the tires manufactured by
Bridgestone exploded and the cars burst into flames on
impact.
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It was
more profitable to sell the high margin, gas guzzling
SUVs and the model was futuristic, ahead of time. The
users were always worried about battery life and when it
would drain out. Recharge facilities were few. Most were
afraid to take their cars out in the night. Lastly,
there was no engine noise and it moved like a ghost,
catching people unaware.
- Plymouth Prowler was underpowered by a
V-6 and not V-8 engine, sales volume was low. Resale
value could not be established. It was not good looking.
- Fiat came out with a
great idea of 6 seat car. 3 in front and 3 in back. The
problem was looks. The car looked ugly like a frog.
Customers want their cars to look sleek, like a leopard
or shark. Fat and Blunt looking cars rarely sell.
- Ford Excursion flopped
because it was found to be unstable when pulling
trailers. It failed in its main purpose because families
wanted to go on excursions.
- Jaguar X-Type failed
because 'most of the time was spent learning the million
and one ways that an X-type could fall apart. Engines
seized, interiors collapsed, transmissions exploded, and
driveshaft's—oh, the countless, countless driveshaft's—ate
their U-joints so regularly that you could set your
watch by them' according to a user.
- Pontiac Aztek was under
powered and over priced, a repeat of Pontiac Prowler. It looked ugly and no one
wanted to travel in it.
- The BMW 7 series got bad
reviews because of various product problems after 90,000
miles. The cars did perform well when new.
- The problem with Hummer
is it is too high. Small built drivers could not see small children
on the side walk and one child got killed. Because of
its higher 'metacentric' height, it has the risk of
toppling at high speeds while negotiating a sharp bend
against strong cross winds.
- Chevy SSR failed because
GM wanted it to be a pick up, a car and a convertible.
They forgot one product cannot be everything to all
people. It also looked very ugly like Pontiac
Aztek.
Please click here for 8
Principles of new auto models development.
Written
by Madhavan Gopalachary
The
views, opinions and interpretations are personal.
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©
Copyright, Feb-10
. MMG Communications. Without prejudice. All rights reserved
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