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January 8th, 2007

Automobile magazine editor on Prius brand, the show and more

Posted by: Ben Klayman
Tags: Detroit Auto Show 2007
Reuters James B. Kelleher spoke with Automobile magazine senior editor Joe DeMatio (pictured left, courtesy of the magazine) on subjects ranging from fuel efficiency to car designs. A partial transcript follows. 
Reuters: Theres conventional wisdom emerging that the appetite among consumers for more fuel-efficient cars represents a real, permanent change, not a temporary reaction to the spike in energy prices. Do you agree? Does last weeks sharp drop in oil prices change things at all?

DeMatio: I think Americans are very susceptible to fashion and trends and I think its a definite trend toward fuel-efficient vehicles. There are a lot of people who are very interested in hybrids who, in my opinion, never had any interest in fuel efficiency before, even though there were fuel-efficient, small cars available. But it took it becoming a fashionable item for it to catch their interest. Its fascinating.

Reuters: The Prius has a kind of iPod-like cachet, doesn’t it?

 DeMatio: Completely. It is now known as the Prius. No one knows it as the Toyota Prius any more. Its Prius. (Pictured left, actor Tom Hanks arrives at move premiere last year in a Prius). Its a brand name thats bandied about as much as iPod. Im sure theres a certain segment of the population that got scared out of SUVs when gas was hovering around $3 a gallon who, now that its sinking back down, are breathing a big sigh of relief like, “OK, Armageddon is not here yet. The worlds not ending. I can still do this without feeling guilty or stupid or whatever.”

Reuters: The Germans are really pushing clean diesel technology, but so far its lacked the cachet of hybrid.

DeMatio: Absolutely.

Reuters: Is that changing?

DeMatio: Its going to take Susan Sarandon (pictured right) driving one to the Oscars because Americans still equate diesels with smelly truck stops, and some people equate them with the really bad American diesels, especially the GM ones in the early 80s. And so it definitely has an image problem and its going to be somewhat difficult to overcome. Hybrids were new and they didnt have any baggage. Diesels have huge baggage. But I just personally drove a diesel 1,200 miles in China and it was a brilliant car. Its a great car for Americans. Diesels have a lot of torque. Thats what Americans want thats what they like – that response when they hit the gas.

Reuters: So diesel doesnt have the cachet, but it sounds like its got the goods.

DeMatio: Absolutely. Europeans have embraced them fully and BMW is going to launch in the U.S. with diesel, which they promise to be both very efficient and meet all the expectations of the BMW driver for performance. So is hybrid a stopgap? Is clean diesel a stopgap before fuel cells? The hybrid in itself is a fairly inelegant solution. You have two power sources in one vehicle, which from an engineering standpoint is redundant and wasteful. But it shows how fickle Americans are, how susceptible we are to trends and the winds of fashion.

Reuters: Are the lines blurring between SUVs and crossovers? Is there a meaningful difference between them anymore?

DeMatio: Well, the difference from a purely driving standpoint and what the car feels like to you is that your first SUV was basically a pickup truck that they put sheet metal over the back and bolted in some seats. Then weve had all these generations of SUVs based on so-called truck platforms and now the crossovers are segueing into car platforms. Theyre a little lower to the ground but they still have some height, which is what Americans like. Theyre just much better to drive because theyre based on a car platform rather than a truck and so they drive like a car. They have better suspension. They have better handling. They have unibody construction, rather than body on frame, so theyre much more rigid, which translates to better handling and steering.

Reuters: Who are the crossover buyers?

DeMatio: There are two forces converging with the crossover phenomenon: SUV fatigue and minivan fatigue. But with both of those vehicles, weve had 20 years of drivers and passengers who are accustomed to three rows of seating and all the utility that a large amount of enclosed, cubic space provides. Thats what they both did; they both provided big-box spaces in different packaging. The ironic thing is the crossover isnt as practical or as useful as the minivan because the minivan has a lower floor, lower step-in height, and it’s easier to get in and out, easier to move packages in and out of and children and such. But minivans and SUVs spoiled people. If youve gone from a sedan to a vehicle with three rows of seats that can seat six to 10 people and also carry all your purchases from Costco, its hard to go back to a sedan. The crossover gives you a little bit of the feeling of a car, but some of the utility of the SUV and the seating capacity of the minivan and theyre much more expressive styling wise.

Reuters: So are SUVs and crossovers converging? Does that distinction mean anything?

DeMatio: I think the true SUV will continue to exist because theres a market for those. But there will be a niche of the crossover market. Theyre all what we call people movers. There will always be a need in America for a body on frame vehicle thats capable of towing heavier loads than a unibody. Here in Michigan, if you head north on I-75 on a weekend, on winter weekends youll see people towing their snowmobiles on a trailer and on summer weekends youll see them towing jet skis and boats. Pickups and SUVs are still best for towing those things.

Reuters: With the SUV market, it was kind of a captive market for the U.S. carmakers. With crossovers, is it a lot more competitive?

DeMatio: Absolutely. And once again, with crossovers, the Japanese beat Detroit and now Detroit s playing catch up. I mean theyve had some vehicles, but GM is only this year releasing the triplets: the GMC, Saturn and Buick crossovers, which look to be very competitive. But Acuras had the MDX for years and Hondas had the Pilot and Toyotas had the Highlander, Mercedes has had the ML.

Reuters: So are you encouraged by the U.S. automakers’ efforts to catch up?

DeMatio: Its certainly encouraging for General Motors. They seem to be getting their design vibes together. With Chrysler, the 300 was such a big hit we were hoping that their next car lines would match that excitement, and they havent even remotely. The new Sebring that came out this fall was a styling disappointment to say the least. It has nowhere near the cachet or the bling or any of the street cred of the 300. Its a big, big disappointment. Chryslers truck line is aged and it doesnt have a lot in the way of crossovers. So theyre still keeping their eggs in the minivan basket with the new minivans they debuted here, which look good and solid.

Reuters: Anything thats caught your eye here at the show?

DeMatio: The Lincoln MKR concept (pictured left, courtesy of Automobile magazine Web site) and the Ford Interceptor have a lot of appeal. Theyre a little late to the game. Its a bit of a Chrysler 300 look. But thats the best thing Ive seen from Lincoln in the past several years. So that gives me hope for the Lincoln marque.

Reuters: How about the Focus and 500?

DeMatio: Those are positive signs for two cars that were stale; very big improvement on the 500. They gave it some chrome. They gave it the three-bar strong face grill that is quickly becoming Fords new face and I think its an effective look for them.

(PHOTO: Reuters)

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