When it comes to cars, Irish drivers want 'gizmos and gimmicks'.Daniel Attwood reports on 'resistance' to paying for their lives
Ireland's car distributors are in a quandary. The body politic, the press and the public all demand that vehicle safety should be paramount. But the industry knows that a multi-play CD is more likely to clinch the deal on the forecourt than the latest life saving technology.
This leaves Irish car importers with a tough decision about new safety features: they can leave them as standard and price themselves out of the market; they can put them on the options list and ride the wrath of the motoring press; or they can put equipment such as electric windows on the options list instead, and risk losing customers to competitors with higher spec cars.
One distributor faced such a decision earlier this year. It opted to make electronic stability control (ESP) an option on its new offering - the Audi A3 - rather than standard, as it is elsewhere in Europe.
Now, the same decision that caused such a fuss for Audi has been forced on Volkswagen. Both VW and Audi are imported into Ireland by the same company, Motor Distributors Limited, and the company made exactly the same decision again.
The new Golf, when it is launched here early next year, will have ESP as an option, although it will be standard in some other countries. "It is not that we don't want it, but it would make the car too expensive," explains Tom O'Connor, VW's marketing manager for Ireland.
And the Irish motorist is not willing to pay. VW can, of course, trade off equipment such as electric windows and CD player against ESP, but that, agrees Tom O'Connor, would be commercial suicide. "It is always easier to sell what you can show off. The bottom line is safety doesn't sell cars." This industry feeling is borne out by a recent study that reveals that, although consumers say they want a particular piece of new technology in their car, they soon lose interest when told the price.
In the JD Power survey, more than 80 per cent of motorists expressed interest in two safety features - external surround sensing and night vision systems. External surround sensing technology alerts the driver if the vehicle is veering out of the lane, if another vehicle is in the driver's blind spot, or if an object is in the vehicle's path while backing up. Night vision systems, meantime, enable the driver to see objects beyond the range of the headlights at night or in poor visibility conditions.
Both are potentially life-saving technologies but, despite this, more than half of the respondents lost interest as soon as they became aware of the market price. "There are features that consumers want, or think would be nice to have, but most are not willing to pay the price manufacturers expect to charge," says Melissa Sauter, director of automotive emerging technologies at JD Power.
It appears that many motorists are just not interested in new safety technology. They are bombarded by terms such as ABS, ESP, TC, EBD and EBA and yet few know what they mean or, more importantly, what they do.
According to a recent report by motor industry analysts, just-auto, researchers found that over 60 per cent of motorists did not know the effect of the ESP, and some 45 per cent believed erroneously that their car is defective if the brake pedal pulsates when the ABS is working. Many could not even say with which safety system their car is equipped.
It is not surprising then, that they are not willing to pay extra for them. "While most drivers think modern brakes are very good already, no amount of technical jargon in the showroom will convince them to dig deeper into their pockets," concludes the report.
However, some decisions at least have been made for the manufacturers. New legislation is forcing car makers to meet standard safety specification on all their new models. From January all new cars sold in the EU must have a driver's airbag and, by 2005, all new cars must be fitted with automatic braking systems (ABS) as standard.
But, where there is an option, safety quickly falls down the wish list. A look at what motorists really have on their shopping lists reveals that many are willing to pay more to control the quality of the sound from their stereo than they are to control the dynamic stability of their car.
The same JD Power survey found that flexible-format audio systems, which can play multiple music formats, including MP3, and wireless connectivity (a system that creates a wireless link between a vehicle and devices such as mobile phones, laptops and personal assistants) retained very high levels of interest, even after the market price was introduced.
It is the visible technologies and gimmicks, such as remote central locking, sat/nav and multi-function entertainment systems that clinch sales. This is especially true at the lower end of the market where high levels of standard equipment are now expected. At the premium end, the same is true (although standard safety spec is higher) but in this case it is who makes the equipment that adds the value.
According to JD Power, Bose audio systems are the most sought after car stereo brand. "In this highly competitive marketplace, auto manufacturers often enter into strategic co-branding relationships with component suppliers to enhance their image," explains Melissa. "Aligning with brands like Bose can help establish or improve an automaker's image and solidify their position in the market."
Renault, cognisant of the fickle nature of the car buyer, took the decision to promote its cars on their safety record. It aims to have all its cars attain the full five stars at the EuroNCAP tests. But, not surprisingly, it also took the decision that the standard specification level on its cars will not suffer. "Our cars are safer and, if anything our equipment levels have gone up," explains Andy Murray, spokesman for Renault Distributors. "We deliver on safety but we know, especially at the lower range of the market, that customers will not compromise on specification." As Andy says, if a new Clio was to come onto the market with ESP and no CD player, the car would be a lot slower to move off the forecourt.
Although it is proving difficult to tempt the average car buyer into paying more for safety features, it is those who spend more time on the road than any other group that seem most willing to trade safety for specification. In Ireland, where Saab has traditionally sold fewer cars into the fleet and company car market, ESP is standard across its 9-3 range.
In Britain, where the opposite is true, ESP is an option and alloy wheels are standard. "Company car buyers go for the most gimmicks and gizmos," says Tom O'Connor. "It gives them something to show off in the company car park."
However, there are some people who take their safety very seriously and, for them, BMW has just released details of what must be some of the safest cars in the world. The German manufacturer's armour-plated security vehicles not only provide the full complement of electronic driving aids but also offer protection from firearms attack, robbery, kidnap and car jacking.
Aimed at visiting heads of state, high profile business people and celebrities, all BMW's Security models are heavily armoured and feature modifications such as bullet-resistant, reinforced passenger cells, triple glazing and strengthened door joins.
The new X5 Security's reinforced glass, for example, stops ammunition up to calibre .44 Magnum from breaching the glass. Underbody protection even prevents grenade fragments from entering the passenger cell. BMW verified its effectiveness with hand grenades that were detonated simultaneously below the driver's seat and the rear right seat.
Now there's something to really show off in the company car park.