• by Karl Greenberg , January 2, 2012

What does the auto market hold for 2012? Marketing Daily talks with Jeremy Anwyl, CEO of auto shopping and research company Edmunds.com about the year to come, the year just past, and which players are best positioned for the vicissitudes of the U.S. economy, and consumer sentiment.

Q: The Detroit three automakers -- how do you see them stacking up next year?  

A: If you look at Chrysler, Ford and GM, the company that has been most transformed is Chrysler. Sergio [Marchionne, Chrysler Group CEO] gets credit; he put them through shock therapy. Ford hasn't changed as much, but they are a different company, and have changed more gradually. The company that is least changed organizationally is GM, because you have the same people doing the same things now as four years ago.

I have to think that's a missed opportunity. If you want to change how an organization functions, you have to do some things. I've spent time with [Marchionne]. He doesn't fall into the predictable way of thinking. When you look at how that organization is structured, it is very different than any other company. The one thing that demonstrates that is their ability to make decisions instantly. You present a problem and they make a decision right away. They have accomplished a lot with a company most thought wouldn't be here today.

Q: What is it about Marchionne that works for Chrysler?

A: Before I spent time with him I credited a lot to his focus on financial controls, to managing expenses, fleet sales, and the like. But the more I talk to him, the more I realize he has a good marketing sense as well, and it's very rare to find someone who understands finance and marketing. He gets both. You have to preserve cash and make products desirable. They haven't had a lot of money, but they have made good investments. Their vehicles just feel a lot different.

Q: Realistically, given the structural condition of the U.S. market, where can a company like Chrysler expect to live, regardless of how good their products become?

A: I'm pulling this out of the hat, but probably between 5% and 10% share. If you are starting to get into 20% range, you are by definition more defensive because everyone is taking shots at you.

Q: Who is positioned to become the gorilla in terms of global share?

A: If you sit down and look at Volkswagen, they are probably the most impressive car company that exists today. They have an incredibly deep marketing bench -- they are all "professor" and "Dr." -- but they are not just book smart, but have strategy and financial resources.

Editor’s note: Part I of this conversation is here.