Aston Martin Boss Says Mass-Market Carmakers Could Face Extinction

Aston Martin chief executive Andy Palmer believes mass-market car manufacturers will be forced to alter their strategies or face extinction.

Speaking during the Automotive News Europe Congress, Palmer indicated that the car is at risk of becoming commoditized and that automakers must find ways to differentiate their vehicles from their competitors.

“I do believe we are at the beginning of end of the traditional automotive industry. For a long time, the business model has been stack ’em high and sell ’em cheap.

“But profitless volume is no way to build a sustainable company. It makes no sense to spend 1 billion [euros] on a new car and discount it almost at launch,” Palmer said.

Cars from different automakers are becoming all too common

As electric vehicles catered towards ride-sharing become more common, Palmer suggested that many cars will lose their emotional appeal.

“We risk moving toward commoditization of a pod. The world does not need dozens of nameplates making the same objects. There are more than 75 automotive nameplates in Europe, but just four plane makers,” he said.

For Aston Martin, this isn’t much of a concern. The British automaker has always built beautiful vehicles that pull at the heartstrings of customers. Under Palmer’s lead, Aston Martin is thriving and in 2017, reported a profit for the first time in six years while also launching a fleet of impressive new vehicles, such as the DB11 and all-new Vantage.

“People are still looking for emotion in their motion and that’s where the luxury manufacturers sit, and where Aston Martin is flourishing,” he said.

One simply needs to look at Toyota as an example of how mass-market carmakers are looking to stand out in an homogenized industry. Rather than continuing to produce mundane vehicles without a soul, the Japanese company has made eye-catching design a key priority to ensure its products stand out.