I hope this doesn't label me as a hypocrite but I like the F. It is styled
in a pleasant understated fashion and, from all accounts, is a decent
driver. For the same price or a slight premium, I would certainly choose
it over a Miata and that is not just because it has an octagon on the
bonnet.
When comparing the expected cost of the F to a Miata in the states I think
we are talking apples and oranges to an extent. The F as it stands would
be quite expensive in the states and would compete more with the Z-3 than
the Miata. I think it would do well if priced slightly below the 4
cylinder Z-3 but if it was too close to the six cylinder version it would
struggle in the marktetplace.
Remember that when the F was designed, there was a conscience decision to
use manufacturing techniques aimed towards low to medium sales volumes.
For instance, aren't the bodies purchased then moved to the assembly line?
If the North American market had been a target, they would have used more
typical mass production techniques. As it was, they accepted a higher
variable cost (the cost of parts and labor) to reduce up front
(development) and fixed costs (new factories). If a larger volume had
originally been targeted, then production techniques similar to the Miata
would have been used and the unit cost could have been lower. Their
approach limited risk which is a very good business decision when
reintroducing an unknown commodity.
Which brings us to an interesting question- could MG compete against the
Miata? BMW has developed quite a name for itself and with the Range Rover
line has a network of dealers. However, everything that they do in the
U.S. is aimed at the upper end of the market. Although I don't know much
about Rover proper, I don't think that BMW / Range Rover has the
infrastructure to build a low cost car. Low cost does not always mean low
quality however. I think that the company with the lowest per car cost is
Honda but the money saved is spent on development and it shows.
I just don't think that the Rover / BMW group can compete with these
people on the low end of the scale right off the bat. To be there they
would have to spend less on development since their per car cost would be
higher. That would be a mistake in my opinion since the English already
have a reputation for selling underdeveloped cars. I think that they would
be better off going a step or two up market.
Unfortunately, this would mean competing with the Z-3 four cylinder. That
is a marketing decision the BMW must make. I think that this decision may
make itself since I don't think that the 4 cylinder Z-3 is selling that
well. It is tough to sell four cylinders in this price range in North
America- just ask SAAB. Does Rover make a V-6?
One last thought. Remember that competence does not equal sales success.
The U.S. market is littered with the bodies of very competent Japanese
Supercars that failed in the marketplace. To compete you have to capture
the emotional interest of the buyer. Porsche and Corvette have done this.
Others have not been as lucky. MG used to do this. Miata has been able to
establish itself in a vacuum but that hole in the market no longer exists.
MG need to really twang the heart strings if it is to be successful
Regards,
Bill Eastman
61 MGA still good looking after all of these years.
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