car design thread

You’re right of course, but I keep hearing the marriage isn’t going well. Neither Nissan nor Renault are very happy. With Ghosn now gone, it’s up for grabs.



No. 997
May 22, 2019

About The Autoextremist
witchhuntbook.com). It is available on Amazon in both hardcover and Kindle formats, as well as on iBookstore. DeLorenzo is also the author of The United States of Toyota.

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THE AUTOEXTREMIST - RANTS
NISSAN CRATERS.
MONDAY, MAY 13, 2019 AT 08:41AM
By Peter M. DeLorenzo

Detroit. In the aftermath of the Carlos Ghosn rousting, it’s clear that the issues at Nissan run deeper than the fact that the Japanese executives just wanted to rid the company of its aggressively abrasive, megalomaniac of a CEO.

No matter where you come down on the side of the Ghosn situation, he was, after all, a distinguished graduate of Unctuous Prick University and an abusive dictator who lorded over his charges with impunity. But let’s not forget, the so-called Nissan executive management team at the time went along with his outsized demands and relentless goal-setting while approving his expenses because let’s face it, they didn’t have the first clue how to project a better idea or the backbone to do it. Until they apparently decided that they couldn’t put up with his runaway ego one more day.

But leaving that aside – I am not going to list the roster of the Japanese executives at the company who have distinguished themselves with serial incompetence – the fact remains that without Ghosn, Nissan is rumbling, bumbling and stumbling its way to a dark place.

It’s no secret that in many previous columns I have been less than flattering with the way Nissan has gone about its business here. The Nissan product cadence has been a recurring joke and its design executions have been repeatedly cringeworthy, but that’s only the beginning. Its marketing strategy basically revolves around laying massive incentives on the hood and turning out mediocre products to fill its dealer lots so that the “churn and burn” can continue. And when an automobile company conducts business this way it’s inevitable that it will lead to trouble. Needless to say, it has hurt the brand tremendously.

In my Brand Image Meter column last June, I had the following to say about Nissan:

“Nissan marketing is a dismal exercise in futility, and that’s on a good day. So, what is it, exactly? The only rational reason – and I am paraphrasing a hoary adage by H. L. Mencken here – is that no one ever went broke underestimating the intelligence of the American public. As in, mediocrity, when it comes to automobiles, is bliss for most consumers, because at the end of the day too many of them don’t understand the difference and couldn't be bothered to care. Confounding and tragic, but there you have it. And despite Carlos Ghosn’s promises of global dominance, nothing has changed to alter my assessment. (Can’t auto CEOs just be content with doing well without veering into talk about dominating the market? Ha! What was I thinking?) For those who revel in abject mediocrity, Nissan is just the ticket.”

Not exactly a rousing endorsement, but it’s much deserved. Nissan is one of those car companies that has evolved into a Twilight Zone of irrelevancy. The brand’s claim to fame only extends to the fact that it is present and accounted for in the market, and if that’s not enough to dilute its image, the brand takes it one further by jamming rental car fleets and exposing its relentless mediocrity to a wider, dismissive audience.

This just in: This simply isn’t sustainable. And everything I see coming out of Japan is that Nissan executive leadership is in such turmoil that they’re unable to lead their way out of this quagmire, with or without merger partners.

But there’s a Bigger Picture to Nissan’s chaotic situation too. It speaks eloquently as to the basic fragility of this business. Nissan has been able to muddle along for a long time with its “churn-and-burn” strategy, perpetuating its mediocrity year after year to a faction of the consumer public that has reduced expectations when it comes to transportation. But it’s clear that this shallow strategy is running out of steam, and time.

There are no givens in this business and there are fewer guarantees. An auto company can be rolling strong for years to the point that it becomes an assumption – internally and externally – that it will go on forever. But those are dangerous assumptions.

Take Audi for instance. It has been piling up sales records with what looked like an unstoppable momentum. But guess what? Audi is now in the throes of big-time trouble. Its sales have slipped almost nine percent in the first four months of the year, and it’s caused, according to Audi, by a mismanaged product supply to the U.S. due to emissions testing requirements in Europe. Which means its hottest selling Q3 model is out of stock, with the new one not hitting dealerships until late this year. That’s a heaping, steaming bowl of Not Good, because even Audi loyalists are wondering off to competitive brands. Just ask Audi dealers.

But that’s not all that’s going on with Audi, and it is part of the general malaise going on in the market too. As I’ve said repeatedly in the last few months, affordability has become a serious issue. Prices are just too high, and even luxury-oriented buyers are giving pause. And the manufacturers aren’t blameless in this, far from it, in fact. Look at the softening in Jeep sales. I’ve heard all of the excuses, but the fact remains that FCA has gotten seriously greedy with its pricing – particularly with its Jeep options – and people are beginning to get the fact that Jeeps aren’t nearly the value that they once were. Those are self-inflicted wounds that this business has been long famous for, which points to the fact that there’s nothing really new under the sun, especially when it comes to short-term thinking and flat-out greed.

Back to Nissan. If Nissan’s Japanese executives actually believe they can extricate the company from this mess in a short period of time, they are sadly misguided. Because of product cadence, poor product execution and a vacuous marketing strategy, it will take the better part of a decade for Nissan to get back on track. Suffice to say, Nissan’s continued presence in this market is not guaranteed by any stretch.

In fact, I wouldn’t be surprised if the company is merged or absorbed, because it’s clear that Nissan’s Japanese executives spend most of their time searching for a clue. And in a business that runs on “what have you done for us lately?”, that’s just not going to cut it.

And that’s the High-Octane Truth for this week.

 

https://www.freep.com/story/money/cars/chrysler/2019/05/27/fca-renault-merger-announced/1246855001/

May 27, 2019 03:30 AM UPDATED 5 HOURS AGO
Renault-FCA merger plan unleashes fresh uncertainties on Nissan
HANS GREIMEL

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TOKYO -- Renault's looming "transformational" tie-up with Fiat Chrysler Automobiles potentially puts Nissan in a tight spot in terms of influence, management and even product planning.

Indeed, at its surface, the partnership announced on Monday seems to sideline the Japanese automaker that has been the lynchpin of Renault's global auto alliance for two decades.

FCA's proposed 50-50 merger with Renault is especially sensitive because it follows Nissan's repeated rebuffing of Renault's efforts to more closely integrate operations and management.

It could marginalize Nissan's position in Renault's world or even make Nissan redundant in an important market like the United States, where FCA is much stronger in the important light truck segment.

Finally, the combined Renault-FCA could weaken Nissan's bargaining power, if it ever wants to negotiate for more influence in tie-up or reform its own existing alliance with Renault.

The structure of the new company would also seem to dilute Nissan's managerial leverage. The new board would have 11 members, four each from Renault and FCA but only one from Nissan.

"It shows that Nissan isn't the only date in town," Christopher Richter, senior auto analyst at CLSA Asia-Pacific Markets, said of the proposed merger. "Having been spurned a couple times, Renault is looking around for a new partner. This changes the dynamic for Nissan in several ways."


FCA's description of the deal makes only glancing mention of Renault's existing alliance with Nissan and Mitsubishi Motors. Combine with the alliance's existing volume, the new group would have global sales of more than 15 million vehicles, making it the world's biggest, FCA said.

Nissan and Mitsubishi, meanwhile, could expect to reap an additional 1 billion euros of annual synergies through the addition of FCA to the sprawling global partnership, the release said.

"FCA looks forward -- as part of a combined enterprise with Groupe Renault -- to working with Groupe Renault's Alliance partner companies on ways to create additional value for all Alliance members," FCA said. "FCA recognizes the standing and achievements of Groupe Renault's partners and sees significant expected benefits to all parties from the expanded partnership."

Nissan declined to officially comment on the Renault-FCA deal.

People familiar with the situation say Nissan was not involved in the discussions and was not privy to the many of its details. Indeed, when rumors of a possible tie-up first surfaced in March, Nissan CEO Hiroto Saikawa said he was "not at all" aware of such talks.

Indeed, one apparent rationale for the Renault-FCA agreement -- he pursuit of scale to spread costs over greater volume -- flies in the face of Nissan's latest business strategy.

Saikawa has largely abandoned the quest for scale long championed by Carlos Ghosn, the former chairman of the Renault-Nissan-Mitsubishi alliance now indicted of alleged financial misconduct in Japan. Saikawa's mantra is sustainable growth, even if that means lower volume.

Saikawa has also insisted on streamlining joint product development with Renault -- all while maintaining Nissan's managerial independence from its French partner.
While the FCA deal could alleviate some pressure on Nissan to accede to a full-out merger with Renault, it also threatens to complicate these two business objectives of Saikawa's.

For starters, there is the question of how to integrate a company such as FCA -- with much of its own financial baggage -- when integrating Renault, Nissan and Mitsubishi is still a work in progress.

"How many times did Carlos Ghosn say no one could manage the alliance but him because it was too complex?" said Kurt Sanger, lead auto analyst at Deutsche Securities Japan in Tokyo. "It gets more complicated from an integration and management perspective."

It is unclear what the new structure means for Nissan governance. But it would seem to give Nissan a smaller voice at the seat of power. Nissan would get only one nominee on the joint board.

Following the Nov. 19 arrest of Ghosn and Ghosn's removal as chairman of all three partner companies -- Renault, Nissan and Mitsubishi, Nissan painstakingly renegotiated a new alliance structure with a four-member Alliance Operating Board to make decisions on a consensus basis.

Sitting on that board are Renault Chairman Jean-Dominique Senard, Renault CEO Thierry Bollore, Nissan CEO Saikawa and Mitsubishi CEO Osamu Masuko.
It is unclear how that board would operate in conjunction with an FCA-Renault board.

Under the proposed FCA deal, shareholders in FCA and Renault would receive an equivalent equity stake in the combined company. The French government, the largest shareholder in Renault, however, would not carry over its double voting rights into the new entity.

FCA's statement outlining the merger proposal does not mention how Nissan and Renault's mutual holdings might affected. Nissan has a 15 percent, non-voting stake in Renault.

It was unclear if this would be carried over as voting stake in the new company.

Analysts say a big risk to Nissan is being undermined in the all-important North American market, a key battle ground for both Nissan and FCA's Jeep, Ram, Chrysler and Dodge brands.

It is traditionally Nissan's most important market, but Nissan has been struggling there against slumping sales and eroding profit margins there. Part of the problems is pickup trucks.

Nissan spent considerable energy and cost redesigning its Titan full-sized pickup, which has landed with a thud. FCA's Ram pickup, by contrast, recently surpassed the Chevrolet Silverado to become the No. 2 best-selling light truck and second-best selling overall vehicle in the U.S.

FCA potentially offers a lifeline of new product that could be rebadged for Nissan. Or, alternatively, Renault could decide that Nissan is not competitive enough in those segments.

At the same time, Nissan could preserve a place of relevance by leveraging its strengths in electrified vehicles and autonomous driving, areas where FCA is often deemed weaker.

"This makes Nissan look a whole less important to Renault now," Richter said. "It creates a lot of uncertainties for Nissan."

 

Tesla Design:

https://workwithus.io/interview/tesla

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@tesla Design Studio
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Interview by Jana Wardag
Photos by Tesla

May 14, 2019

The Tesla Design Studio remains a public mystery. Working from an airplane hanger surrounded by the sprawling SpaceXcampus in Hawthorne, California, the Tesla Design Studio team of international designers, engineers and modelers helped Elon Musk’s sustainable energy company upend the entire automotive industry in just over a decade. Every single product — from its fully electric fleet to charging accessories and apparel, plus solar and battery hardware — starts here.

Tesla's Chief of Design, Franz von Holzhausen, is the first to say no single team is responsible for the company’s improbable success or its aggressive innovation. Pawel Pietryka, Creative Manager of UI Design, is far more precise: this place is like nowhere else. We talked to Pietryka about his team and how working outside your discipline has been the greatest reward in a staid industry.

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Pawel Pietryka
Creative Manager/Product Designer
Who are you? How would you describe your job at Tesla?
Hi, I’m Pawel. I’m a product designer and lead our vehicle and mobile UI team at Tesla. I feel incredibly lucky and privileged to work with the most talented people in my industry, as well as the best car designers, vehicle and software engineers, ergonomics, visualization, clay and digital modelers and prototypers out there.

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What inspired you to join Tesla?
While I learned a lot during my 3+ years at Apple, it was time to move on. The only other company that I was excited to work for was Tesla, honestly. I care deeply about our sustainability mission and our aggressive focus on innovation, and what we’re doing here is completely unprecedented. I’ve worked on many digital experiences, but none as exciting as an entire car.

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“I tell them to drop their dinosaur cars, to stop living in the past, to join the revolution.”
What do you tell your family and friends about Tesla?
I tell them to drop their dinosaur cars, to stop living in the past, to join the revolution. I try to explain that driving a car (or being driven by it) can actually be fun again. It’s something we see ourselves at the end of every quarter with customers around the world. You can watch as many videos as you want, but the experience doesn’t lie. It’s not just electric, either. Driving a Tesla is honestly the most fun thing you can do – and we get to design that experience every single day.

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Could you tell us about an outstanding project/product you worked on in the past few months?
So many. My first big project was to match the look and feel of Model S/X to the vernacular and interactions of Model 3. To me, it’s very exciting that we build a platform – our own OS, so to speak – and have frequent over-the-air updates. We also work on a ton of Autopilot features and I’m very excited about shipping 3D-rendered cars in real time. We also worked on the Model Y UI and other announced products.

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“Most of my projects are self-initiated, actually.”
What’s one thing you do to nurture your own creativity? How does Tesla help you with that?
Franz, my boss and the head of design, always says that we each have our homework, but if we want to branch out and collaborate with other teams it’s very encouraged. Most of my projects are self-initiated, actually. We also like to dabble in creative technologies and come up with some crazy ideas. It’s always exciting to create something new that doesn’t exist.

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“I also like the pace, along with our intense focus on innovation.”
What do you like the best about working for Tesla?
I love being with all these talented and passionate makers. Plus, Franz is totally accessible, which can be rare in other companies. I value the camaraderie most of all. We care for each other as much as the products we design, and I don’t mean that in a corny way. You really feel something special when you’re here, everyone says that. I also like the pace, along with our intense focus on innovation. We also have this incredible ability to shift focus and realign priorities in an instant. We’re lean by design and a byproduct of that is vastly more responsibility for everyone.

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How does a day in the office look like for you?
Every single day is different. It could start with a lot of meetings or start with a lot of deadlines. Unpredictable, and no two days are the same, which is pretty amazing. It’s challenging at times, for sure, but also very rewarding.

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What do you love about the design scene in Los Angeles and what companies are on your dream list to collaborate with?
I was living in San Francisco previously and I don’t want to hate on it because it’s a great city but also a very small city. LA is massive and includes a much bigger focus on art, design and community. It has so much more to offer apart from the assumed superficiality of Hollywood.

As far as collaborators, maybe a lidar vendor? Kidding. Apple and Google seem like a natural fit. Companies focused on AR/VR headsets like MagicLeap, Valve and HTC seem like great future opportunities. Also, I think companies innovating in the material space like Adidas and Nike could be interesting, too. Parley, Modern Meadow, Smile Plastics are doing interesting and important work.

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How does the recruitment process at Tesla look like?
We get a good amount of applications online, but honestly, our bar is high. Our recruiters do a great job at finding the right candidates. It’s important that they’re able to adopt our design process which is much faster than other tech and automotive companies. The more versatile, independent and self- motivating, the better your chances. Our teams are very small and that requires everyone to be ultra-collaborative, non-competitive and just plain smart.

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“Everyone knows good design needs to be functional, simple, intuitive. But more than anything it needs to deliver a great user experience.”
What are the biggest mistakes you see people make when applying for a job at Tesla?
Everyone knows good design needs to be functional, simple, intuitive. But more than anything it needs to deliver a great user experience. That means sometimes an experience needs to be fun, sometimes unconventional, and sometimes that means beautiful typography or other unexpected characteristics. I see a lot of good product and UI designers focus too much on the former. What’s the point of good, clean design if customers are not engaged or bored by it?

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What gets you excited about a great candidate?
It’s important to be detail-oriented and truly care about the craft, just as much as being humble and friendly. A great candidate might go beyond the traditional disciplines of UI design and bring a great passion for prototyping, coding, 3D, animation or typography. I also look for someone who doesn’t accept the status quo of UI and wants to push it to a new paradigm or interaction, but doesn’t let their ego get in the way.

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Evidently.

 

It’s a designer thing.

 

Interesting theory.
I have to confess, when I look at the sartorial choices in my closet.........predominately black.

 

you have NO idea.........

 

Personal anecdote: when I was a student at design school in LA many years ago, because of financial constraints, I owned 2 pair of blue jeans which I wore for 365 days/yr for 2 years. EVERY DAY. The day I graduated, i made an oath that I would NEVER wear another pair of blue jeans again. EVER. Period. I haven't since the mid 1970's. Black jeans, yes. Closet is stocked with them. Blue, no. During my final years in corporate America, the 'in/hip' outfit was blue jeans with a suit coat or sport coat. I still see it today. I was a non participant in that sartorial abomination.

 

Gotta have one pair to wear when the others are in the wash