Auto Industry Practice – EM Business and Product Strategy – Cross Cultural Learning (Part 2)

Part 1 of this web-log conveyed the macro notion that the cultural paradox of 'glocalisation' continues to both enthuse and confuse corporations, as cultural identities become ever more layered and so complex whilst the very nature of mass and niche consumerism re-orchestrates new opportunities for cross-cultural paradigms.

This Part 2 undertakes a micro orientated review of the sociological awareness – both weak and strong – of various auto-sector players' product strategies in the past; so as to remind of lessons once learned, but oft forgotten.

This to span:

- Early era efforts of auto-globalisation

- Case studies of ill-contrived 'glocal' business plans

- The rigour of Japan's “deep knowledge” approach

- Examples of well-contrived 'glocal' new product development

Yesteryear Automotive Globalisation -

Since the earliest days manufacturers sought to introduce their largely 'home-grown' products into new foreign markets, seeking new income streams, in-market dominance and corporate expansionist power. Typically seeking to offer a vehicle 'as is' if suitable, or through mechanical and features adaption to satisfy the climatic and road/track demands of specific geographies.

Given the generally poor worldwide road conditions of the early 20^th century, even in the industrialised West, the first decades of international mobility relied upon a necessary robustness built into vehicles, hence a Model T Ford that could operate both across the USA's Death Valley and the Australian Outback, and at the other end of the spectrum a Rolls-Royce 'Silver Ghost' could equally traverse countryside tracks within Britain and India.

However, by the mid 1920s the internal competitiveness of western markets, feature offerings and customer demands, versus the still largely basic transportation needs of more rudimentary foreign markets, meant that regionally defined 'sub-species' of specific models began to appear in order to balance the offering vs demand equation.

As seen with consolidation of European marques into the larger conglomerates, as part of their own global expansion drive Detroit's “Big 3” acquired foreign interests in the “going concerns” of automotive manufacturers and/or associated coach-builders, either partially, though typically completely. So as to gain early entry in what would become yesteryear's often colonially related new growth markets.

As vehicle sales grew in such semi-foreign markets through the 1930s and 1960s in line with underlying GDP growth, so greater attention was paid to the engineering of what evolved as perceptionally regionally specific vehicles. Though the economies of scale that provided profitability demanded that core homeland platforms be used, much was undertaken to maintain local and regional identities and thus maximise overall global sales.

1930s Australia saw the rise of the 'Coupe Utility' from Ford and GM Holden, models effectively transplanted from the USA where they were less favoured but well aligned to antipodean needs, as well as in 1948 the notionally “All Australian” Holden 48-215, actually born in Detroit but assembled in six Australian plants and acting as an industrial attraction hub for new sets of suppliers; all part of Australia's own national agenda toward industrial modernisation of the time.

Likewise, Brazilian examples include in the 1970s the re-deployment of a Renault 12 based model itself inherited by Ford as part of its own regional expansion and named the Ford Corcel. With in 1980 Volkswagen's 'hybridised' creation that was the series one Gol, a more modern Golf related body structure and style but with the cheap and reliable air-cooled engine of previous VW cars; also targeted at South Africa.

These were indeed successful case studies which demonstrated how yesteryear's fringe markets required simple, low cost products derived from simple, low cost business models, in what were recognised as comparatively undemanding markets seeking most vehicle types.

Poorly Contrived Sector Strategies -

However, the opposite is also true, wherein what were subsequently seen as poor product development strategies failed to capture the mass interest of a developing marketplace.

As vehicle demand shifts from the initial 'base-line' volume generated by governmental and industrial users who purchase with obvious 'cost-benefit' rationale, and on toward the greater volumes of private consumers and private-like business users, so the ability to “read” the marketplace becomes ever more complex. And so plotting and formulating the business case evolution of specific models becomes more challenging.

The challenges of entering such markets are typically hefty enough, and historically have required deep corporate pockets to maintain not just presence but to set set the standard. Per unit profitability is typically degraded by issues such as import tariff costs on whole cars, CKD packs and component parts, and even if a VM commits to the creation a fully fledged manufacturing facility, and thereby acting as a hub attracts a mixed multi-national and indigenous supply base, per unit costs remain comparatively high given the supplier companies' desire to see a return on their investments.

Thus such a move into developing markets has historically requires major long-term funding capabilities; as seen by the likes of Volkswagen and FIAT in South America during the 1960s and 1970s, and GM and Volkswagen in China through the 1990s.

Such in-market demand dynamics and the initial cash-burn means that getting it right is paramount for both well established global manufacturers and the newer crop of EM based firms seeking greater regional and international profile.

The following are simplified case studies which illustrate how wrongly directed over-ambition in the chase for foreign sales have failed the business ambition of 'glocalism'.

The Leyland P76 :

Prior to the 1990s commodities boom, beyond meat, wool and semi-precious stone exports, Australia was largely a self-contained economy, boosted by its British-American political ties as a distinctly strategic out-post sat within the Asia-Pacific; but which would ideally be self-supporting.

Given Britain's sovereignty, unsurprisingly British vehicles were prevalent initially, from the importation of Edwardian Lanchesters to 1920s Austins, to 1950s and 60s Land Rovers, which came to be locally assembled and latterly wholly manufactured, alongside original Mini and the Australia re-engineered large Kimberley.

Under British oversight a US-Australian trade agreement was established which assisted the sales of larger V8 and IL6 engined Ford, Holden and (Chrysler) Valiant cars and variants, vehicles which did not directly compete with the BMC Australia's typically smaller engined products, the volume sales excluding marginal Kimberley. But latter 'open-door' trade policies with Japan and Europe allowed for the importation of smaller IL4 engined vehicles which proved to be whilst technically unsophisticated both reliable and cheap; so in effect matching, sometimes bettering and under-cutting UK derived vehicles. By the late 1960s this caused yet another blow to the British motor industry.

Under the 1960s consolidation the UK industry, BLMC, (later BL), absorbed the various loss-making UK firms of Austin, Morris, MG, Triumph and Jaguar-Daimler to try and find inter-firm synergies, rationalise new product development, and cherry-pick new market possibilities.

One of these was to focus upon the still relatively buoyant Australian market.

Recognising that BLMC could not build a business model to fight the Japanese and Europeans based upon the price of smaller cars, it instead chose to leverage its technical advantage, directing that apparent competence directly at the higher price-point and higher-margin large car class and so versus Detroit's 'Big 3'. Seeking to build upon the small market share Kimberley had captured with an avante garde proposition.

BLMC management convinced board executives that Australia's own entrepreneurs and senior managers had themselves morphed into highly aspirant, very worldly, individuals, keen to buy a technically advanced large car which spoke of Australian confidence. This may have been the marketing department's 'blurb', but the fact was that the conglomerate metaphorically had “its back to the wall”. And so the idea of a dedicated upmarket Australian vehicle was born, its USP being more futuristic styling and engineering and not the outcome of simply a cosmetically altered evolutionary model variant.

The outcome was the “wholly Australian” P76 large sedan and its sibling the Force 7 coupe; itself establishing new engineering directions amongst the national supply chain firms to hopefully raise the bar for Australia itself. 

Unfortunately, the fact was that upon its arrival the market was effectively saturated with what were viewed as satisfactory vehicles which whilst hardly advanced actually sold on their relative simplicity, with vital reliability both in towns and deep into the countryside. Australian entrepreneurs and senior managers sided with staid GM Holden, Ford and Chrysler-Valiant cars which although less differentiated at the premium-end than the P76/Force 7, were robust, easily maintained and repaired. Moreover, during the interim, Detroit had improved its various brand standings with indegenous V8 racing at circuits such as Bathurst etc.

Detroit's Big 3 had global profits, cash at hand and scale economies by which to drive down costs and wage price wars as necessary, they had wide model-line differentiation for its body and trim variants and country-wide dealership and garage networks. In contrast, BLMC/BL during this period saw its combined multi-marque profits dwindle, its cash depleted and economies of scale unrealised as certain 'head to head' in-house models were discontinued in favour of the better positioned brand.

Surrounded by more adept American, European and Japanese foes through the tide of globalisation, BL's hope was that the P76 / Force 7 would encourage a corporate renaissance. Instead an unrealistic BL had effectively created a car which nobody wanted.

[NB the lesson here is that whilst even the most fortunate of developing markets' consumers do indeed aspire to improved products and services, ultimately purchase rationality will typically underpin the decision process of something as costly, functionally important and service orientated as the car].

Africar -

As a raft of African nations gained independence from previous colonial governance in the 1960s and 1970s, it was envisaged by some that the new republics would continue to seek out their own fortunes, with greater disconnection from the western industrial interests. Interests which though having largely created large scale industry and commerce in these countries, were also seen to be exploiters of national mineral, commodities and human resource wealth.

To assist such ambitions of African Independence leaders, a new crop of idealistic western entrepreneurs emerged, seeking new methods by which such states could create for themselves and kick-start their own circulatory economies.

Once such in the field of light commercial and personal transport was “the car for Africa”; toted as 'AFRICAR'. Its inception came in the early 1980s, founder Anthony Howarth long associated with Africa, believed he recognised the need to develop an affordable, sturdy, capable and cheap to operate vehicle that would do for Africa what the Model T had done 70 years earlier for the USA and elsewhere.

Both N.Africa and Sub-Sahara countries had long relied upon the Peugeot 403/404, 4x4s such as Land Rovers and LandCruisers, aswell as later the full-size US pick-ups. But these were effectively high cost vehicles given their rarity and usage demands through the 1950s/60s/70s.

Howarth believed that he could create a market targeted spiritual successor to the likes of the legendary Citroen Mahari (light 4x4) and lesser known 'FAF', which were a breed of light vehicles which themselves had used 2CV chassis, running gear and systems. These parts had long been financially amortised as per tooling etc and by the late 1970s were cheap off-the-shelf items.

These primary parts together with a general supporting structural body made from plywood sheet and polyurethane mouldings would supported the idea of a low-cost vehicle. The concept vehicle was constructed in California in 1976 – just as FAF was mid-point its lifespan – and proved functional as a daily runabout over the 2 years, before the project proper was under-way.

[NB At this point investment-auto-motives it seems plausible that there were very probably West Coast interests (beyond Howarth) who sought a “technology disruption” of the conventional auto-sector to capture any such value-added. (See previous recent weblogs)].

Three prototypes were built: two standard wheelbase 4-wheelers in car and pick-up guises and a more novel 6-wheeler pick-up with extended wheelbase and glazed van cargo area. These were tested via a long distance trek from the Arctic Circle to Nairobi, Kenya spanning long distance and cold to hot climates, given much public attention with press and TV coverage, the logo of Britain's then new Channel 4 TV station prominent within the 'AFRICAR 1984' door graphic

After the apparent successful test regime, plus Howarth's apparent patriotism that (after the BL story) Britain ought to invest within its home-grown motor industry (to off-set the economic might of London's financial services sector) [a familiar call today], led to a new AFRICAR production facility established in Lancaster, NW England.

[NB Though this in itself goes against the grain of local African production, even if for ongoing technical feasibility or promotional reasons. on such a simple vehicle-build project; possibly put in place to attract broader UK sourced funding streams]

Apparently detailed reports highlighted the feasibility of the vehicle in both developing and developed markets so broadening its scope.

However, the idealism was not to last.

Whilst the concept on paper appeared sound, and various smaller Asian state 'agreements in principle' had been affirmed for local manufacture, as well as oddly Australia, (possibly as a base for the pan Asian goal), financing and cashflow problems became problematic.

As for Australia, the vehicle was the polar opposite of the large car, 4x4 and SUV preferences of the great majority buyers and users, from GM and Ford Utes to Toyota 75 series 'Troop Carriers' of the period, so quite where the obvious target customers were was a complete mystery. As seen with P76 above, they would stick with what they trusted and suited.

Whilst the Burma (now Myanmar), Butan and Nepal (aswell as larger Bangladesh) had agreed in principle to local manufacture, the fact is that the car had been designed for generally flatter landscapes; three of these four places with much hilly geography which would have been too strenuous for the relatively under-powered AFRICAR, negating proper use and causing reliability problems, even if the original long distance prototype test argues otherwise.

Crucially, a new breed of African leaders sought to be seen by the wider-world, and especially the West, as modern and contemporary nations which could stand proud amongst others. Thus the idea that Africa be broadly purveyed as a specialist economic case requiring specialist solutions was an anathema to people's seeking modern ways and similar transportation methods, whether public, and indeed especially personal.

This political atmosphere, plus the most importantly, the influx of hardy, easily maintained and repairable older Japanese model imports from Europe, Japan and elsewhere – vans to pick-ups to cars, often very over-laden but able to operate given their “over-engineering” for durability – quickly obliterated the apparent need for an AFRICAR ideology.

In this case, globalisation's own demand and supply dynamics, though operating at the lower-end of the obviously visible spectrum (at least for western eyes) irrefutably altered the African market landscape for Howarth. This dynamic should not have gone unnoticed or possibly deliberately ignored.

Moreover, the manner by which the project proceeded was highly questionable.

Including, what appears an unstated reverse engineering of a given (FAF) concept, then seeming progressed from a supposed clean sheet, when actually simply re-running the proven Citroen rationale from 50 years earlier. Plus the fact that it appears Howarth himself risked little finance and no collateral. Instead utilising a girlfriend's home and income as required collateral on a bank loan. itself spent on over-costly professional services at the banks insistance.

Overall, the project's approach and plan, and its funding methods and cost absorption rates (cash-burn) will have appeared concerning to any independent analyst of the time. The AFRICAR project ultimately posed more questions than it answered.

Proton's “Islamic Car” -

Between the British and Japanese powers during WW2, Malaysia has effectively sought to both balance seek advantage from both western and eastern interests ever since. Previously, as a central Asian domain, the country was also much entwined with Chinese trade and commercial influence plus Sino-population influx; this situation re-risen with the more recent rise of China.

Throughout the latter third of the 20^th century Malaysia was on the path to modernisation, putting in place infrastructure and industrial development like the basic processing industries from which higher value goods could be created to satisfy governmental, commercial and private needs; including trucks, motorcycles and cars; as internal fortunes and GDP grew

Seen as a high-point during this period was the inauguration of the “National Car Project”, which under the oversight of the government strategic investment and development arm named Khazanah Nasional, came into being in 1983, and named 'Proton'.

Proton Holdings Berhad (referred to as Proton or Proton Cars) was formed from the joint venture partnership between itself and Japan's Mitsubishi Motors, the latter supplying the tooling, jigs etc to allow for the manufacture of its vehicles.

The first 'National Car' was the compact sized Proton Saga (based upon the Mitsubishi Lancer/Colt). Interestingly, unlike similar agreements which only allow for the utilisation of older vehicle designs, Mitsubishi provided Proton with nigh-on new technology given that the car had only been available for 2 years in Japan when it was released under the Malaysian badge in 1985.

[NB an interesting aspect of this vehicle package was the manner in which from the internal rear passenger seating viewpoint, the middle of the car (the 'B posts') appeared slightly wider than normal, so providing for an open environment for the small cabin].

This landmark car was produced for 23 years as first Saga and updated Saga Iswara, and became a Malaysian icon in its own right. From the beginning provided a substantial income stream from which Proton sought bigger and better ambitions for export growth.

Those monies allowed Proton to develop an expanded range of vehicles, at first similarly based upon direct Mitsubishi technology and tooling transfer, but became more indigenous in design, vehicle engineering and engineering production as Proton grew its own capabilities in-house; yet maintaining the Mitsubishi JV (and other JV agreements) for specific vehicle projects. This lead to a succession of vehicles including in 1995 Satria, Putra, 1996 Tiara (using Citroen's AX model), 2000 Waja, 2007 Persona, 2008 New Saga, 2009 Exora, 2010 Inspira (once again deploying a later generation Mitsubishi Lancer), 2012 Prevé, 2013 Suprima S and new Perdana (using rebadged Honda Accord (for government services only).

However, confidentially, successive Proton executives would no doubt admit that the process has been a constant battle given the micro and macro headwinds faced from the early 1990s onward.

These include the launch of Malaysia's '2^nd Car Company' in Perodua (with a Toyota-Daihatsu agreement with technically good and affordable small cars, putting Proton and Perodua at logger-heads as Saga decreased in price to maintain marketshare, the lowering of import tariff rates aiding competitors, the need to export production around Asia and beyond, and the 1997 Asian Financial Crash which massively damaged Malaysia's economy, undermined its growth plans (eg delayed and shrunk Proton's original 1998 delivery date for the the multi-activity 'Proton City' in Perak province to 2003).

In the midst of these challenges, Proton realised it would need its own brand relevant USP. One which circumnavigated the product, brand and general global marketing strength of Western and Japanese firms; with also the growth of S.Korea seeking to replicate Japan's success.

So a strategy which avoided head-on collisions with the firmly entrenched and powerful, and one which could also serve as a Malaysian national agenda vehicle – internally and externally -given Proton's effective state ownership.

Proton sought instead to self-direct itself as distinctly different by deploying Malaysia's Muslim cultural heritage so as to stand as a 'loud and proud' purveyor of what was to be termed the ideology of the 'Islamic Car'. Since its inception, the Proton logo was a representation of the crescent moon and 14 pointed star taken from the national flag; the crescent moon endemic to Muslim identity.

This seemingly heavily religious bias stemmed from the then Prime Minister's desire to re-balance what he saw as the overt cultural and so income bias of globalisation toward western multi-nationals. Serving as PM between 1981 and 2003, Dr Mahathir Mohamad delivered the raft of change required to transform Malaysia into a modern society. He was a strong advocate of developing countries gaining greater autonomy from western interests, and viewed the relatively advanced Malaysia as the promoter (and in turn gainer) of such a ideology.

Central to this was the idea that those Muslim countries could and should better co-operate to raise their economic activities and global standing, with the deep and broad value-chain of an Islamic Car Industry able to deliver the ambition. Proton was to serve this goal.

Unsurprisingly an alternative 'entry level' brand personality was devised for European export hopes, with a modicum of success in the UK, but little elsewhere These were intended to provide good unit and operating margins from the FX differential, which could then be re-invested both at home and help support the grander worldwide strategic plan. But the cars with low prices and lower quality levels sold poorly in such demanding EU markets and Proton became detrimentally known as a fringe player, arguably damaging its reputation.

A positive note was the Jumbuck small pick-up “ute” in Australia which echoed the penchant for the 'Coupe Utilities' of the 1930s, and recently good ANCAP scores (which may have been possibly subtly massaged given Australia's desire to promote inward investment from Asia into its own auto-sector).

However, export dreams within Asia and the Middle East were better achieved, the pattern growing throughout 1990s and early 2000s, which helped build a basic network of distributors and dealers across the world at its peak, but since retracted to 26 contries.

Foreign demand was needed to offset the sales decline seen within Malaysia. Dropping from 40% share in 2005 to 32% in 2005 given changes in National Automotive Policy and what was seen as lagging product quality issues, seeing Perodua take the market lead. By 2011 the domestic share was 26% and by 2012 at 22%, declining again by 1.3% between 2012 and 2013.

Whilst exports to other Asian and Middle-Eastern Muslim nations have been a patchwork of good, middling and poorer, the company recognised that the “Muslim Car” ideology was untenable. Since the markets in which Proton wished to sell themselves also wanted to promote auto-sector FDI as part of their own growth plans. Moreover, given the high costs of vehicles, purchasers do so overwhelmingly on the basis of perceived cost-benefit and relative social status. Both factors irrefutably connected to the specific critical success factors within product quality; and necessarily formulated within the overall and model project business cases.

To this end, recognising that it must strategically steer itself toward a better tomorrow, as of 2004/5 the company altered its Muslim-esque logo to that of a yellow tigers head within a green roundel upon a blue shield, and then in 2007 undertook a JV with the Chinese company Youngman to which it sent CKD kits for local Chinese assembly.

However, as seen recently with the plummeting of Chinese branded vehicles, it seems that once again Proton is being stymied by the innate global success of the big western firms.

Since 2012 the company has been held by DRB-HICOM, a publicly listed conglomerate with additional interests in Malayisan contract manufacture of vehicles for foreign multi-nationals, property and infrastructure. Exactly where it goes from here will be a case of “watch this space”

Japan's Rigorous Approach -

History foretells that those corporations which have been not simply ambitious, but crucially analytically adept at reading the cultural nuances of various global markets, have better planned to reach their international expansion goals.

By the mid 1960s it was recognised by some leading automotive minds that far more cultural learning than had been traditionally been present was required so to provide success in foreign markets. Of course the more foreign and culturally removed any company was relative to its target export market, the greater the learning required.

Tasked with the post WW2 export drive through the late 1950s and 1960s in consumer electrical and vehicle markets, it was this innate 'foreigness' of Japanese manufacturers relative to their target of North America, which demanded and drove powerful new insights.

This difference spurred many Japanese firms onward to effectively properly de-construct and analyse. Not simply the general market sales data, nor the learning from engineering 'tear-down' of successful competitor products, but little by little to gain far more 'real-world' insights regards the preferences, behaviour patterns and psychological drivers of its prospective customers.

So aswell as Japan's revival of Deming's teachings regards achieving high quality production levels, Japan chose to truly appreciate the subtle often unrecognised traits of American culture.

Beyond the initial marketing success of the 1969 Datsun 240Z, was the work undertaken prior to the launch of the 1989 Lexus LS400; a case study which taught the western auto-sector about the vital importance of “cultural and indeed multi-cultural learning”.

Such remarkable leaps in consumer understanding were albeit slowly adopted by 'the best of the west', often in a fragmented manner given the very different philosophical approaches and methods between Japan and western cultures.

[NB It was the Japanese tendency toward obsession / perfection and the idiom of the “7 questions of why?” drawn from from zen-buddhism, which allowed a deeper delving into prime consumer matters.

Invariably, Japan's self-created advantage did have a general affect across all manufacturers, and slowly the topic of extended consumer insight and latterly cultural learning has taken hold as a distinct input – albeit with varying competence - into the new vehicle development process.

Today, as and when feasible given budget constraints and managerial focus (ie fire-fighting vs true strategic insights), the need to appreciate and inject country and regional specific cultural learning is far better recognised.

The following is a short list of just some of the notable NPD (New Product Development) cases that have been established; the best serving to promote what has come to be known as in-house “Auto-Cultural Laboratories” which exist typically interweaving the Marketing and Design functions.

Notable NPD Case Studies -

Lexus in California:

Toyota's efforts at entry in the American and global luxury car segment would see a level of research dedication never experienced within the auto-sector either before or since. The 'flagship' project later named the LS400 would need to encapsulate all of the conscious and subconscious key elements which as a whole would provide more than the sum of its parts. Do do so, beyond coneventional analysis Toyota set out to get under the skin of premium car buyers. Recognising that because of sunny climate and social progressiveness, Californians were more typically more experientially experimental and so less blinkered to new offerings versus the typically more staid east-coast buyer.

To this end Toyota deployed senior executives to for a necessarily extended period to live as wealthy Californians. Their task to methodically understand the American premium car universe, ranging from the quality and nuances of competitor product from the Germans, Americans and British, through to qualifying and quantifying those perceptional constructs. Furthermore, in an anthropological manner, to desconstruct the 'tribal' behaviour of the buyer set: from the decibel levels of tyres upon freeway concrete that cause aural annoyance to the social coding of golf-club car-park vehicle heirachies, to owner interaction with car-parking valets and the associated key-fob snobbery which exists at expensive restaurants, so in turn affecting service levels.

This case study has by now become well engrained in mindsets of auto-industry executives and led to similar initiatives, though typically not as thorough, from others seeking to mimic Toyota's success.

Mazda in California:

In the mid 1980s with a need to break-out beyond its overtly conventional brand persona in foreign markets, Mazda sought to create spiritual successor of the discontinued small British and European sportscar.

The Austin-Healey Sprite, MG Midget, Triumph Spitfire and Alfa Romeo Duetto had been glamorous and affordable, but a fringe and heavily cyclical breed. These and others had been lost after regional auto-production had been necessarily rationalised and consolidated in the quest for mid 1970s corporate survival.

Moreover the recessionary effects of the 1970s brought forth the mainstream introduction of hatchbacks like the Golf, Fiesta and Renault 5. These in turn spawned respectively GTI, XR2 and Grodini variants, which on cost and safety grounds, effectively replaced those earlier open-topped sportscars.

In a bid to escape its staid character, Mazda sought the return of the affordable sportscar. It executives ran an internal competition between its Japanese and US design studios, the 'truest' archetypical concept (assisted by the alloted conventional vehicle packaging) derived from the unsurprisingly sunny climbs of S. California; itself the target market.

The Miata/MX-5 was internally recognised as to be a direct simulacrum / facsimile of what had gone before, created from a similar 'purist' perspective. However, to enhance the experience into a type of small sportscar hyper-reality, the concept's details were philosophically aswell as functionally deconstructed and analysed. The best known exercise of this process being the first vehicle to receive scientific acoustic tuning of the exhaust system.

Ford in Britain:

Whilst the blue oval has had various design and concept engineering centres at the Dearborn, USA HQ and elsewhere around the globe focused upon vehicles, it was in Dunton, Essex in England (which had historically had served the old Dagenham factory) that a philosophical cultural leap forward was made.

Dunton's own workload had reduced since its heyday serving Ford of Britain and its own semi-dedicated cars, as Detroit sought to better coalesce and co-ordinate the global car platform engineering mentality that appeared with (RWD) Sierra/Topaz platform synergies and the Mk3 (FWD) Escort. This had centred primary engineering work in Dearborn, USA and Cologne, Germany.

Dunton itself became more engine development orientated, along with other specialist research and development work. But the facility also recognised its need for re-invention so as to remain useful within the blue oval empire. Part of this self-re-invention of the early 1990s was an early internal appreciation for the impact of future demographic trend change; specifically the ageing populations of advanced nations.

This inevitable 'grey wave' would have a large effect on car buying preferences and behaviour to which Ford would need to respond.

Seniors knew its own employees across Marketing, Engineering and Design - typically in their 20s and 30s - would need to better appreciate the mindset and lifestyle of this older buyer group. One important aspect was the physical effect of ageing, specifically the decrease of personal capabilities. Learning would be fed-into the design process. 

With assistance from appropriate academic institutions, the idea of possibly the first “OAP suit” was born. A full-body prosthetic suit, which instead of aiding motion, had the deliberate intention of restricting physical prowess for the younger wearer. So as to metaphorically (though quite literally) “get under the skin” of an older person, and his/her required interactions with a potential new vehicle, both in the showroom and during ownership.

The results of the process fed into the dimensional and access/egress specifications of a new generation of vehicles from the late 1990s onward – typically taller cars with bigger door apertures - which were simultaneously also advantageous to 'family functionality' for both the nuclear family group and the extended family group (including grand-parents).

The OAP suit was latterly adopted by other corporations for consumer testing and development aswell as charities etc to demonstrate the effects of ageing.

Peugeot in France:

In recognition of the the dual trends of an ageing European population and the popularity of micro-cars in France, PSA executives critically rationalised its introduction of the wholly logical but somewhat unconventional 'tall-boy' 1007 city-car. With seating for 4 set within a short wheelbase and easy entry and egress via a 2 large sliding doors, its model specific business plan was enabled by the platform economies of scale from its 'parent' cars (the 206 and C3).

Thus with a super-mini's (B-C segment) vehicle width but short (near A-segment) length, the package provided an altogether new offering to Europe. Interestingly, given greatly lowered production / ex-factory cost (indeed far lower as a CKD shipment) with its innate city-driving advantages, it was also notionally considered as a near perfect car for specific EM consumer types. However, it was judged as not befitting PSA's own very necessary Peugeot EM brand introduction strategy which sought to grow far beyond its Euro-centrism (ie Dongfeng JV and shareholding) which means typically entering markets with a more conventional mainstream market family sedan (see 301 model) and now upscale ranges (see DS).

With a lifetime volume over 6 years of only 125,000 it was not commercially successful, but like other unconventional cars (eg FIAT Multipla and Honda FRV) broadened consumer horizons and appreciation.

[NB 'tall-boy' is an originally English 18^th century term for freestanding tall chest firniture, but became a term promoted by the mid 1990s by the Japanese with their own tall but short, yet high-volumetric city-based kei cars)

FIAT in Brazil:

The Italian company has been present in Brazil with indigenous production since the early 1970s, but it was in 2002 that the company recognised its new EM era strategic needs. Namely to: a) reduce its global platform and local product development costs, b) orientate itself further to its inroads in LatAm, c) mould a new generation of Brazilian and Latin American engineering and design staff and mangers so as to 'off-shore' Italian research, styling and engineering work and d) increasingly infuse local Brazilian and LatAm vehicles with regional performance capabilities and regional character.

To this end it created its Belo Horizonte facility in Minas state, so as to establish a new prime markets orientated development base. Thus far succcessfully contributing to global platform development and more recent production of the “all Brazilian” Nuvo Uno.

However, given its relatively short 12 year lifespan, and a focus upon ably replicating Italian (and perhaps now America via Chrysler) development processes, the centre itself will not as yet be so experimental, and so culturally expert as the Toyota case study would suggests is possible. Especially so, if as expected, it operates as a locally funded cost centre, given the stagnancy of Brazilian vehicle sales in recent years and so effect upon operating income and central budget.

However, given FIAT's need to remain as the region's #1 manufacturer, it will no doubt seek to get yet deeper under the skin of Latin America to promote and perhaps lead cultural relevance.

Rolls-Royce at the 'London Bank':

The 2003 Phantom model – which effectively resuscitated the modern-day prestige of the marque – was largely created from an especially created design studio termed the “London Bank”, since it was based in an ex-bank's offices.

The site supposedly chosen for its high security function, the project's secrecy being necessarily “vault-like”, the project encompassing “bullet-proof''engineering standards (though specified in Munich) and the final product being “like a safe” in its protection and cosseting.

To a lesser extend this initiative has been replayed in Beijing, wherein local customer likes and dislikes have been translated into China-only client cars; and though far removed from RR's typical understatement in colour and trim, is more muted than the very highly 'stylised' custom preferences of various Arab clientèle.

Nissan 'London Roundel' and Beijing Centre -

Seeking to capture from the very source, the sociographic media, fashion and general trends of design-centric London, Nissan opened its design centre (an adjunct to its Bedfordshire engineering centre) in Paddington in 2003.

Its London home, named 'The Roundel' building (itself an old railway shed) itself has overtones of the design icon that is the London Underground logo. This and the American design centre were used as imspiration for the China located studio established in 2011 and expanded in 2013 to likewise capture Beijing's influential sociographic scene.

Renault Sao Poalo, Mumbai and Togliatti:

Production in Brazil started in 1997, but recognising its lag in LatAm markets versus the dominance of FIAT, VW, GM and newer entrants from S.Korea, China and India, the French company established 'Renault Design America Latina' in the heart of Soa Poalo in 2008.

The same year, after a short-lived production JV with Mahindra and Mahindra for Logan, a design centre in Mumbai was opened, initially as an independent operation that could form the concept work phases of its intention to create a development and production JV with local corporation Bajaj Auto.

This was announced as the first dedicated Indian automotive design studio (in the western manner) using 3-D modelling, interior bucks and full-size 'clay' (modelled vehicle exterior). Similarly, with Renault's major equity share in Russia's Avtovaz, and ambitions to remain the country's preferred home-market brand, efforts to create a design base at the large Togliatti plant have been underway.

Given their relatively recent births, it seems that all studios and development processes will be operationally grown in a phased systematic way to eventually provide true like for like matches vis a vis the central Paris design HQ.

Conclusion -

The 20^th century was largely a period in which those countries labelled either 'post-colonial' or 'developing', typically operating with a majority of state controlled industries and commerce, had to be satisfied by the provisioned vehicles imported from the major powers, be they European, Russian or American.

For the much of the century the comparatively rudimentary conditions of the then remote areas meant that simple early era vehicle solutions, capable of basic, capable and reliable performance sufficed. But into the 1960s and beyond, their economic booms – though often short lives - promoted nationalistic modernisation, often witnessing a manic effort across state and private spending to quickly catch-up with the general infrastructure and living standards of the advanced countries. The quintessential city of Brazilia demonstrated that when the opportunity arose it was taken, even if in its case somewhat over-idealistically: as the far inland, overtly car-centric bureaucratic metropolis with a areal layout based upon the silhouette of the aeroplane.

Even so, such advances were compelling not just to the respective populations and governments, but also to the multi-national and start-up vehicle firms who sought to stake their place in the economic evolution.

As time passed so the in-market complexities of such countries grew, and as seen by those case studies which exemplified poor strategic understanding, those which were unable to understand the often obvious real-world needs and expectations balanced against the often over-hyped national and consumer readiness for change and tomorrow's 'advanced markets' technologies.

Those auto-makers which continued to re-wrap old technology under new skin typically served the need for apparent modernisation but with the certainty of necessary reliability. But obviously as infrastructures much improved from the mid 1980s onward across China, SE Asia, S. America and portions of Africa so an opportunity grew to at last properly attain the industrial ideal of global platforms and so vehicles.

But with the recognition that a certain degree of 'glocal' engineering would need to be undertaken to gain necessary cost savings so as to reduce showroom prices, provide dedicated (typically dual role) EM variants and to ensure necessary ride and handling performance. This important to not only provide for tarmac versus dirt-road conditions, but critically to cope with the neglected and deteriorated conditions of even relatively new tarmac roads of urban areas. The result of often under-engineered road-paving resulting from local contract profiteering; plus the fact that the boom and bust economies would inevitably see a diminishing of infrastructure maintenance.

As EM prosperity finally took long-lived hold from the mid 1990s onward – resulting from the upward swing and long haul of the commodities cycle and through economic policy reforms per industries and peoples – so at long last EM regions were able to engender more stable national economic agendas, invest in a new cycle of infrastructure development and I doing so provide their consumers with the finances, confidence and expectations previously only seen in Western, Japanese and latterly S.Korean populations.

This then has hopefully crystallised the notion that those politicians, industrialists and consumers who exist further down the EM scale, far beyond the MINT and CIVETS regions, have a no interest in being viewed by the outside world as 'specialist developing world' cases along with dedicated low-cost, self-build (and invariably under-capable) odd vehicles. For all the humanitarianism such a project might convey [as seen] such entrepreneurs may well promote seemingly ideal tailored vehicles with apparent credibility, but their own passion might also be far greater than their own business acumen, and at worst can be projects which through launch and start-up actually better serve vested interests.

Extinguishing such notions is the fact that today a far more trade-interactive, digitally enabled and truly globalised world has moved on, and with it negation of second-best goods, even if they necessarily contain culturally orientated ingredients.

As seen with FIAT engineering capabilities expansion in Brazil (and indeed Volksawagen's long previous patronage of the country) and Renault in India, the last decade has witnessed major auto-makers moving beyond the single dimension of glocal production, building their own cross-functional capabilities in prime markets from early phase concept work to dealer-delivery with incressingly responsibility for training an enlarging new workforce; one which is being formed to properly replicate their homeland capabilities, in order to serve primary, secondary and tertiary expanding EM markets.

To do so “the shoe has been put on the other foot”, with western players now in the role that Japan occupied during the 1960s (for mainstream) and again in the 1980s (for luxury). It is the Westerners who must now recognise that their innate foreigness must not be viewed as a challenge, but as an opportunity to truly de-construct the obvious and less obvious cultural characteristics of many new markets.

As witnessed, during initial phases of consumption growth in the BRICS, newly arrived (lower) middle-class purchasers will be enthralled with their ability to choose what to them are new and aspirational goods of typically better quality given higher price and historical research input.

Yet albeit slowly, as the once novel becomes the norm for increasing numbers, those trend-setting EM buyers will no longer wish to perpetuate the foreign induced norm. Instead, even though global brands do indeed create cross-cultural 'global tribes' (as seen with apple's iphone and luxury goods), such leading -light influential consumers will as part of their new national and personal confidence,lseek to better reflect and re-affirm themselves entwined within their cultural identit es, so setting-off new directions and threads for product and services development and opportunity.

Instead of reacting to such inevitable social reaction in due course, the global automakers of today have hopefully recognised the need to leverage both their innate foreigness, so as to question national and regional cultural traits, yet also deploy their increasing local market knowledge, through what will hopefully be a new era of holistic perspectives; including the melding of Marketing, Engineering and Design mindsets so as to become much more than simply EM 'au fait'; instead far more 'tête-à-tête'.  

All serious investor types - from large pensions and insurance institutionals to VEBA-like interests - will surely be those who view their interests as not just financial instruments but as fundamental ownership of the auto-business, should demand so.

Auto Industry Practice – EM Business Models – Multi-Cultural Learning (Part 1)

The crux of the previous four part web-log highlighted the contextual importance of today's multi-cultural mosaic, and sought to demonstrate how corporate initiatives must be increasingly fine-tuned to befit the “glocal” (consumer needs, wants and desires) within the ever more digitally enhanced, reality augmented and so hyper-real 'global village'.

It also illustrated the post-modern tendency for self-reference, an essential element of an ever deepening realm of semiotics within physical, virtual screen-based and today merged 'augmented reality' worlds.

Seemingly operating as part of the required cost containment strategy, this especially pertinent during this period of economic growth constraint, a rational which spans various enterprises: from the duplication of specific shopping mall layouts and structures to the re-deployment of digitally produced characters across successive animated films.

EM Influences -

Direct replication of products through imports and localised manufacture (thereafter adding associated consumer services) has been the modus operandi of the major automotive players over the decades; as new growth markets have willingly absorbed 'predestined vehicles' with modest modification.

Today however, a trend has begun by which EM customers seek-out the psychological reassurance of the 'quality guarantee' given by internationally renowned brands, but likewise increasingly desire more culturally attuned ingredients and formulae.

Indeed, auto-makers' own recognition that certain EM countries and regions are now as fundamentally important to corporate revenue and profits as AM countries have been, means that EM market sensitivity has increased many-fold.

This illustrated by the very fact that various German vehicle marques have already been seen to utilise styling traits with more Asiatic appeal and experimentation into their once far more conventional brand-formula restricted products.

Whilst the credit expansion excesses of the previous hyper-growth Chinese consumer society for a while underpinned its indigenous new vehicle brands. However, the fact that most such homeland vehicles were based upon old engineering platforms and low profit margins to try and capture market share, meant that when the economy slowed the vehicle market consisted of those credit-worthy, mainstream (private, company and fleet) vehicle buyers who continued to seek-out better quality vehicles with sound financial rationale (eg residual values, contract types etc). Vehicles offered by the major Sino-Western joint venture companies.

Yet, as the more deliberately exuberant (often Euro+) styling of smaller Chinese domestics flailed under intense competition, so the large corporates injected subtle indigenous cultural cues into their products to provide a flair of local flavour.

The seemingly globally generic vehicle, once engineered for unaltered reproduction, has itself becoming slowly 'glocalised'.

Route A: “Conventional Glocalisation” -

The multi-national desire for increased 'glocalisation' to date has naturally stems from the dual advantages gained from globalised economies of scale (in primary systems components) and a local affinity underlying local product appeal in aesthetics and over-all user experience (eg vehicle performance and associated technological content).

This then replays the developing markets scenario as seen in previous eras, but obviously now with greater in-market sensitivity. Importantly, the move from EM markets' previous acceptance of effectively 'de-contented' vehicles (to reach yesteryear affordable price points) toward today's elevated buyer expectations nigh on par with western product content standards (less regulatory in-car requirements)

As seen, the ability to to do so created by localised lower-cost manufacturing hubs within EM countries, consisting of major VMs, their western counterpart Tier 1 suppliers, and the raising of standards amongst local Tier 2 suppliers to meet quality demands.

This may be termed 'Route A' and called “Conventional Glocalisation” since it relies upon the respective business model pillars of: aligned local supply chain, scale economies of global production and local marketing capability.

But as seen, this now very engrained approach has had critical portions of its business template heavily eroded.

The previous yesteryear rational becomes gradually altered by the substantial success of prime EM nations, via both investment and production based 'supply push' and private earnings and credit fuelled 'demand pull'. Today at the point where the once innate difference in AM vs prime EM cost structures have shrunk substantially.

So whilst creating a more economically balanced world and also providing for western 're-shoring' opportunities, to replay 'conventional glocalisation' requires the availability of what have now been termed “lower order EMs” and “pioneer economies”; themselves expected to reach a tipping point from historical economic stagnation toward growth thanks to capital market friendly policy reforms and so inward foreign investment.

However, whilst the BRIC and CIVETS nations do indeed have further 're-play' opportunities from their own untapped regions, it appears likely that the remaining smaller EM nations across S. America, Africa, the CIS and fringe Asia arguably offer less productive capacity than than the astonishing levels seen by the prime EMs during the early 1990s to 2008.

This then means that new perspectives regards the business models behind global and glocal production and consumption will be required.

One possibility is what investment-auto-motives terms “Progressive Glocalisation”.

Route B: “Progressive 'Glocalisation” -

(New Thinking, Toward New Horizons)

This (admittedly purely conjectural and somewhat far fetched idea) posits the notion that a type of visually based 'Lingua Franca' might be created by multi-national corporations - individually or in harmony - acting in a progressive “social totem” guise, to attract an increasingly digitally immersed, visually cognitive global consumer.

This possibly achieved through applying an ever widening palette of signs and symbols drawn from the world's own spectrum of multi-culturalism.

Such visual short-hand equivalent perhaps to basic Esperanto in its ambitions, but ostensibly without the communicative depth gained from the ongoing world-wide adoption of English. Instead with more significant and indeed signifying immediacy. Though if successful it could ultimately lead to a new era of complex hieroglyphs – a suite of visual elements underpinning a cognitive association behind an icon based global language.

This progress part of a new era of 'glocalisation' with expanded multi-cultural and cross-cultural interaction propelled by the strengthening worldwide commercial application of 'cultural streaming'; which in a 'global village' would gain an increasingly important role across corporate value creation and so successful global capitalism.

Increasing Cultural Complexity -

Though we seemingly live upon a cyber-unified planet the fact is that a myriad of expanding cultural identities exist. Beyond the given basics of ethnic background, religion and nationality, lay trends toward geographic localism (eg West Ukraine and Crimea), the influence of any associated revived languages, and perhaps more crucially the web's own promotion of distinct on-line communities becoming seen as virtual tribes., The seemingly smaller 'global village' then has become arguably yet more complex.

And whilst major nations have absorbed ever more divergent immigrant peoples to sustain their own economic basis, the progeny of such people with dual (or more) cultural perspectives and identities, plus those attributes of the seemingly self-created personal identity - though often drawn from a manufactured popular culture itself - adds to the fragmentation of, and so blurs, society's 'cultural mosaic'.

Invariably with such numerous influences the very idea of any singular cultural affiliation and so singular identity has become problematic, if not actually defunct, with beyond immediate birth nationality, and family ancestry, the addition of many tertiary cultural layers.

A cross-pollination of peoples, cultures, behaviour and perspectives has of course been with humanity since its earliest days, with as seen time after time, the adoption and adaption of specific cultural norms and phenomenon may occur to enable any one group's own culture-melding agenda.

At a personal and close group level there may prevail via local first name adoption with surname adaption by those groups seeking new societal acceptance, yet held 'within' and very separate from usual social interaction, may be secretive 'nourishment' of a core identity within their own community to maintain their over-riding core-community loyalty, far beyond any other association. Specific supposedly marginalised religious groups with constant tribal ratification obviously the most fervent and so invariably socially separatist.

At the societal level common cultures are changed by altering norms.

Most obviously is the effect of immigration as what seem stable, traditional cultures absorb new economic participants which bring their own ways and crucially differences This typically exacerbated by the fact that immigrants tend to be younger people with often their own youthful tendencies coupled with the drive of personal ambition for economic success. Thus invariably creating tensions with the previously comfortable and often over-complacent indigenous population.

In the West – and to the dismay of many EM nations – has been the rise of gay rights. Here in the UK after years of activism and calls for gay absorption into the norm, the very recent watershed event of homosexual and lesbian civil marriage was made law in the UK. This event undoubtedly resulting the now long sustained, highly influential efforts of the mass-media, whereby 'new norms' are televised as conventional and thus slowly absorbed by much of the public long before they are seemingly ratified by the establishment.

Culture Forming -

But such new 'culture-forming' itself poses issues.

Again here in Britain here are no doubt many within the religious and non-religious realms of the 'silent majority' who believe that the once well intended thrust of 1960s political correctness has extended far beyond its original intent of fairness to all colours, creeds and inclinations. With today the effective eradicated - through media 'demonisation' - those opposing promoted viewpoints, whether that be upon immigration, homosexuality etc. So the advent of what may be termed 'illiberal libertarianism', or paradoxically 'facist liberalism', where a climate of true, necessarily mature, free-speech is diminished or possibly labelled 'hate speech'.

These are but a few social dynamics with major cultural bearing that have evolved within micro and macro spheres.

And yet further, as noted by some insightful social commentators in the West, just as society fragments into ever more specialist interest groups, and so sub-identities, so such consequentially small, marginalised entities, promote their own interests by seeing and portraying themselves as what may be termed 'societal victims', with such resonating language deployed. Thus apparent sufferers instead become 'survivors' which in turn more closely knits together the emotions of the specific group.

Exactly how such an identity-fragmented and seemingly lobbyist, self-interested society can be understood en mass by the individual, the public at large, governmental policy-makers and corporate enterprise is the pertinent question of today.

The ongoing tribal shattering of once distinct mega-tribes such as countries such the USA, Canada, UK, Germany, France, Italy, Denmark etc, invariably indicates that more complex, newer tribal identities and links are being grown by the enabling function of cyber-space

So it seems that these more newly evolved multi-layered 'complex identities' are being formed and promoted, the nigh on singular identities of old which is today's convention – most prominently that of nationality – is being subtly eroded.

This is the concern that various EM countries apparently hold, the core worry regards the possible diminishing of their national and religious identities perpetuated by America's corporate hold over the internet and its future.

Common Commercial Links -

Thus for all societies and so the world at large, the workings of internal and external forces continue to reshape the very essence of 'culture'.

None more so than the direct and indirect influences of commercially orientated mass-consumerism; which over the preceding 150 years or so of so has become the for want of a better phrase been seen as “the new church” or “new religion” by social commentators.

Whilst lambasted, it acts as perhaps the only unifying “global religion”, where what are otherwise often distinctly different social groups, and possibly very different mindsets, meet.

At the most basic level, there may be the unrecognised meeting of minds between 'poor' and 'rich' individuals who share similar responsibilities. Such as the African township mother who is able to feed her child, though only once a week, on the same branded high-nutrition baby-powder which her counterpart American suburban mother feeds her child three times a day. (Yes this is an overtly stereotypical picture, but still an unfortunate truth within our re-balancing world).

And in a very different realm, the ironic but mutually well recognised meeting of minds between two culturally very different persons who happen to share the same lifestyle. The up-scale shopping areas of most major city centres are typically inhabited by seemingly very culturally different but nonetheless similarly attuned wealthy people who share similar fashion and lifestyle interests. Herein, London's Sloane Street juxtaposes the ironic schism of inbound British weekend tourists with resident foreign Arabs and Chinese; and whereby the scantily dressed young Cheshire 'WAG' may covet the designer handbag of an older Saudi Arabian lady wrapped in full-cover dress. (Or indeed vice versa). For a time the social difference is diminished by the commercially generated shared interest.

The Car as Multi-Cultural Icon -

Similarly, a previous web-log looked at the broadly socially positive, but unfortunately neighbourhood negative, affects of what has informally become the spring/summer (arguably very cross-cultural) event that is the 'Arab Supercar Invasion'.

This effectively promoted by the younger sons of wealthy Middle-Eastern families who travel primarily to London and Paris for their more liberated summer vacations.

[NB Such individuals and families form a significant element of the British-Arabic diplomatic entente-cordial, which itself underpins the 'recycling' of the “Petro/Gas-Pound” into the services based sub-economy of SW3 and broader central London]

Though the arrival of the noisy cars invariably creates local tensions amongst residents (who do have good reason to complain) it is also undoubted that the free to view supercar show has undoubtedly become a significant part of the tourism draw. Even if not on the official sightseeing tour for visiting foreigners, it undoubtedly adds spectacle, and for many British tourist families added great excitement during their London visit. The visual and aural thrills of Bugattis, Lamborghinis, Ferrari's, Maseratis, Bentleys, Rolls-Royces, Aston Martins, Mercedes-AMGs, Porsches, McLarens and more - for good or ill – is as memorable (if not more so) than much of what is seen within the walls of near-by museums and galleries.

The cars viewed by the thronging crowds as modern mechanical marvels, as magnificent motorised masterpieces; and although there will invariably be unpleasant jibes about “the rich Arabs” by some gawpers, for a time the mutually shared interest in such vehicles eradicates the apparent gulf of supposed cultural differences between Anglos and Arabs

The high arts within the 'new religion' that is consumerism actually draws separate peoples closer together.

Back to the EM Populist Dream -

Although such marques and models represent the pinnacle of automotive engineering in a very specific social context of great wealth, and does promote the positivity of melded cultures, the global reality is very, very different.

Fact is, for millions of people living in 'the real world' within BRIC, CIVETS and lower league 'pioneer' countries, their dreams and aspiration centre around not around the perceived ridiculousness of hyper-cars or super-cars, but eventual ownership of four wheels which provides for family and commercial needs, functional safety and comfort, all within what to AM countries is considered a mundane vehicle, but life altering nonetheless.

Obviously as such economies continue to grow, weathering the slowed phases such as today, this offers an immense opportunity for those auto-makers that can create the right vehicles. As was the yesteryear remit of the Model T, Beetle etc, followed by the GOL. Today a primary strategic initiative for most auto-manufacturers: from TATA's seemingly the visionary Nano, to the many other domestic and foreign VMs which seek to (unlike Nano) typically incorporate their EM entry level vehicles into either their respective indigenous or global business models.

But identifying exactly the right fundamental DNA for the archetype 'glocal' vehicle' is a complex and hard task, made all the harder by the ever increasing PESTEL complexities inside EM and AM societies, as well as those that both conjoin and separate them.

To Follow -

Thus far this weblog has simplistically commentated upon: the increasingly powerful influence of EM countries upon multi-national companies, the basic corporate mentality toward creating a successful 'glocal' business model, the manner by which global economic re-balancing has and will further impact upon such conventional business wisdom (Route A), the need to re-think the very philosophy that is 'glocalisation' to create new multi-faceted merged opportunities (Route B), this set within the challenge/opportunity of increased cultural complexity as 'layered' personal identities emerge, the mention of just a few of the many social trends which re-make societies, the manner in which consumerism actually acts as far more of a social glue than has perhaps been recognised, highlighted by one specific and organically emerged social phenomenon, and how even that 'pinnacle' is but a drop in the ocean of consumer aspiration across the EM world.

In order to better understand how auto-makers might best approach the subject that is 'glocalism', the following Part 2 seeks to simplistically review the way in which auto-sector business and product strategy must evolve if it is to meet the 'glocalisation' challenge; as understood today and into tomorrow.

Providing insight into:

- Early era efforts of auto-globalisation

- Case studies of ill-contrived 'glocal' business plans

- The rigour of Japan's “deep knowledge” approach

- Examples of well-contrived new product development

Macro level Trends – EM Economic Templates – Glocal “Auto-Replication” of the Californian Original (Part 4)

Thus far thus lengthy web-log has sought to explore and better appreciate how the American global economic template has ever expanded to continue as the prime orchestrator of global enterprise; as worldwide enterprise continues to expand, even if today albeit at a slower pace.

The old adage that “the business of America is business” has in the past both obviously propelled and gained from globalisation, yet today that commercial imperative provides advantages beyond the dreams of 19^th century industrialists and bankers.

Arguably far greater direct and indirect influence through not only the conventional exportation improved industrialised goods, processes and associated services to EM nations, but in a now well established communications age, has since Berners-Lee's original work created much of the multi-faceted jigsaw that behind the modern internet.

In doing so, seemingly seeking to maintain its role as the globally governing soft-power agent. Ever greater worldwide social (and thus commercial) impact from the epicentre of California.

Carrot Not Stick -

Now within a period in which the old system of Western military and economic dominance is increasingly countered and challenged by the major EM players across the rest of the world – through official UN channels - America well recognises the importance of a soft-power agenda and associated capabilities.

To counteract the weakened powered of the once entrenched idea of the 20^th century “US military-industrial complex, America's self-created 21^st century position is that of a “glocal socio-economic enabler”.

Doing so through continued use of the traditional mix of media (cinema and TV), but today critically inserting an already largely screen-based 20^th century culture construct into the far bigger, immersive and so influential platform of 'the web', which simultaneously allows portions of the global population (young today but increasingly older) to (through video downloads and similar) inter-mingle as what are effectively “cyber-citizens”.

And in doing so the physical and ethereal merge, creating a continuum whereby the societal 'life constructs' of yesteryear blur; this mass of cyber-connections – now known as 'the cloud' – altering what was only a short time ago a separate sense of self vs others. So in turn changing the dynamic of what was previously the innately private, the social (family/friends), the civil (community), the state (nationhood) and critically commercial life, as both contributor and consumer.

[NB this has been termed 'info-communism' by some thinkers and wordsmiths].

Creating the 'Picture Perfect' World -

Wherein Hollywood once provided the catalysts for global consumer trends through weekend cinema visits and later all-week television, today multi-screen based lives have become the norm. This global lifestyle ostensibly generated by a plethora of largely Californian enterprises which in the past and today's present span the full spectrum of the IT and 'cyber-connected' value chain.

This continual cycle of creation and improvement in hardware, software and content has long moved on from the old Hollywood template of selling the ideology of the 'American Dream', since that has been largely achieved. Since moved onto the innovation required to create the fundamental utilities which together combine to form the component parts of the techno-social infrastructure. An infrastructure which enables the fundamentals of a still very new 21^st century world to operate.

'Upstream' are the increasingly affordable device enablers such as Apple's almost mythical iPhone and iPad, Microsoft's 'Surface' tablet and its smart-phone section via the Nokia buy-out.

Screen floating Apps (applications) increasingly provide a personally edited tableau of short-cuts to preferred lifestyle enabling functions; whether organising basic travel schedules, ordering local take-away food, listening to radio, playing games, file sharing etc (with over 250,000 on the Android system). These are increasingly smart-phone user's preferred access points, so commercially highly competitive.

Thereafter, web-browser programmes such as Explorer, Safari, Chrome, the various off-shoots from 'open-source' Mozilla and Firefox. [Though given population saturation in the west such low-value applications now left open to other countries to create browsers to capture EM web-surfers].

To web-entry points such as the massively dominant Google and lesser Yahoo and Bing. To social and professional networking sites such as Facebook and Linked-In, and often correlated virtual communities such as Twitter (of which the US accounts for 10 of the top 18).

To a plethora of e-commerce offerings, whether solely 'clicks' based or 'clicks and bricks' retailing, in which originators such as ebay and Amazon still dominate 'share of mind' and so power-broking capabilities. And onto associated web-payment services such as ebay's PayPal, which today is viewed as a conventional debit/credit system akin to credit-card companies and banks.

And of course, at the 'down-stream' end, amongst the global populace, there is 'cyber-citizen up-loading', wherein individuals and groups can contribute to and seemingly participate within the virtual community constructs, typically of heavy graphic content spanning static and moving imagery. Herein, compared to other video-upload sites such as Yahoo! or even Facebook, the audience power of Google's Youtube cannot be over-stated. With over 1 billion separate visitors per month across 61 countries, 80% or so of upload content originating from outside of the USA.

However, of lesser standing but specific note is the (San Francisco based) Internet Archive, which with a mission of “universal access to all knowledge” appears to be collating all past and present works both from before and during this internet era.

Prevailing Perspectives -

The internet has demonstrated its enormous power over but a short few decades, with of course thinking people split into one of three camps: wholly pro, wholly anti, but the majority recognising the advantages and disadvantages of the net.

Detractors will state that like any dependence related drug, the free-to-all, 'open-source' systems which helped to rapidly grow the fundamental network was developed on the back of underpaid 'ant workers' seeking their own fame and fortune. Similarly the 'open-door, self up-load' systems have likewise been a primary attractor and enabler of spreading web interest, with what has effectively been no-cost content provision for companies such as Google and Facebook. Each has gained enormously from the willingness of global citizens to contribute for free, with relatively few new media-made personalities having made money compared to the massive market capital values of the corporations themselves.

Thus extending the reach of US soft-power interests worldwide, and with such willing 'sheep' (especially amongst the young), little backlash to the development of apparent 'global knowledge archives', which would (as seen historically with Alexandria Libraries) re-affirm the US as the true super-power well after the 21^st century has been and gone.

Hence there is ongoing debate about the rights and wrongs of what some see as a new era of remote, web-based US (and possibly Chinese) induced shared imperialism; stretching from possible real-time “eye in the sky” legal enforcement drones to the capture of humanity's entire works of knowledge.

But the fact is that here and now if you are surfing the web, your are very likely to be a what may be described as a “cyber-citizen of the Californian Cloud”.

And as obviously seen by various protests from private individuals to national governments (eg Germany) there is a now a not so covert cyber-connection directly into to America's 'National Security Agency' and ally agencies such as GCHQ. The NSA's own agenda for domestic surveillance will understandably be defended by the argument that the world willingly uses its nationally built information super-highways and so has a right to monitor them.

Yet this raises the question as to whether the older 'military-industrial complex' has simply been updated by an IT surveillence mandate which may or may not have associated consumer informational advantages to the likes of Google, Facebook, with Mark Zuckerberg's call on Washington seen as empty rhetoric given mutual advantage.

This apparent watershed for America's pseudo-stewardship of the web comes as undoubted increasing concerns arise from a more confident remaining world.

A Re-Cap of Worldwide Transition -

The previous 25 years or so has seen great worldwide change as many of what were previously classed as 2^nd and 3^rd world nations encouraged internal economic policies which maximised advantage of their their core attributes and competences, whether based upon commodities, heavy industry, light industry or people's capabilities; an optimum mix of all.

Although today somewhat contracted and slowed, such EM output(s) have formed a global supply chain of activities - modern-day 'silk roads' and 'spice trails' - which previously led to the economic apex of North America and Europe, and still does; but now equally re-circulates to serve the increasingly more sophisticated realms of B2B and B2C commerce across EM regions.

After ongoing Western economic expansion over the last two centuries, albeit with collapses and revivals, it appears the fact that the 'consumer saturated' West has been for decades a region of arguable value destruction. The demand for ever more goods and service content being squeezed by ever harsher competition, a process only made viable – but only over a short term - by what was to be revealed as baseless credit expansion; the pulling back of that 'illusionary curtain' in 2007/8.

Today the outcome of this much shifted economic dynamic for many of the world's people's is encapsulated in the idea of the 'Shifting Middle'.

This a fundamental concept to the 'global future' wherein the consumer and credit excesses of the once comfortable and very much envied West (represented by the SUV and mass designer consumption) has under-gone a global reversal.

Wherein EM regions' new consumers take on the mantle “hyper-shoppers” so as to demonstrate themselves as successful, and critically globally brand aware. Deploying their “new money” gained from entrepreneurship and improved private-sector salaries, they are simply in effect re-enacting the first phase modern consumption era of the late 19^th and early 20^th centuries across Europe and North America.

Importantly, unlike the EM roller-coaster rides of 1980s and 1990s when introduced (or re-introduced) to global capitalism with 'boom and bust' experiences, a greater appreciation of the importance of far stronger national balance sheets and more acute budgeting has shown that many EM countries are able to better cope with the demands of global capital markets; even when temporarily erratic.

Hence, much of the globally available 'value added' to be created and captured will come from existing and new supply chains across those goods and services sectors which exist far beyond historical western boundaries. Given the “size of the prize”, this sets an ever harder task for those western biased firms not already well integrated; given ever more pronounced intra-EM relationship building.

Furthermore the ongoing desire for mergers and acquisitions of western firms by healthily aspirant EM conglomerates and sector-specific firms – being either cash rich, obtaining asset-backed finance or stock issuance for re-capitalisation will obviously advance their own goals toward 'global standing', broadened distribution channels and new research and development facilities, so able to capture high-value solutions / IPR.

[NB Though in practice this is often easier said than done, given the usual practice of self-interested agenda amongst most firms' managements - western included.

The automotive realm has seen cases of the weaker 'prey' gain internal advantage, by demanding an ever bigger financial contribution from the newly acquiring EM parent to achieve strategic goals. That drain often more value-destructive so than the apparent strategic riches actually delivered].

Toward a Re-Balanced World -

Today we fortunately live in an increasingly 're-balanced' world, afforded by globalised interaction.

Availability of officially generated economic data providing statistical illustrations of this ongoing re-balancing is available from numerous public and private sources. But perhaps instead better to view such change at ground level, whether physically or virtually.

The majority of western children (of increasing ethnic backgrounds) are no longer kept ignorance of portions of the external world - and indeed vice versa - as was the case through the 'cold war' and well into the 1980s. Now living in what may be viewed as an increasingly internationalist world with accordant internationalist outlook and internationalist values.

Inter racial social mingling within ever more ethnically diverse large cities and towns has resulted from short and long term immigration policies, the political imperatives toward the bi-lateral advantages of trade agreements open-up not only financial but cross-cultural flows, and improved opportunities for international travel for many people spanning leisure, education and commerce opens hearts and minds.

But unlike even 20 years ago the major influence change is that of the 'down-loadable' world.

A vicarious, remote yet intriguing experience of cyber-access into foreign lands is now well established, whether viewing geographies academically from far above through satellite snapshots to the far more personal of viewing of someone else's video-captured, downloaded travels; Montevideo via video, just one possibility.

However, it is the increasing ability to exist within the seemingly unbounded world of global cyber-space, which for many has by virtue of time spent, become as real as their own immediate physical surroundings. Indeed positively hyper-real (better than reality) since it offers immediacy, breadth and depth of experience, often of the often unfamiliar but attractive.

That may be to help satisfy the ambitions of a financially constrained yet highly ambitious EM student undertaking web-based learning from the free-to-view 'Khan Academy' (originated from the US). Or conversely a very wealthy but aged European seeking to construct a set of destinations for a 'bucket list' world tour.

The crux is that whilst for many of the remaining poor Thomas Friedmann's pronounciation that “The World is Flat” remains as elusive as ever, the fact is that his identified prime drivers which under-pin the thesis are still valid; even if ironically the re-balancing dynamic now presents certain advantages of operational 're-shoring' back to the West across various sectors.

Info-Tech Jigsaw Meets Ethnographic Mosaic -

So with an apparent ongoing metamorphosis of the USA away from a geo-political global mechanism and toward a role as an info-tech powered enabler of socio-economic value creation, it obviously recognises a need to appreciate the emergent matrix-like conceptual framework.

A global framework which matures and meshes across the two vital dimensions of:

1. 'Technology and Content Enablement':

Comprising of the hardware and software that make up the skeletal structure of this newly arrived and ever deepening cyber paradigm.

2. 'Cross-Cultural Assimilation' required:

Comprising of hybridisation formulae across human activity over the full life-span in which cyber-based and cyber-related activities become the cultural norm, so provide for an arena by which the 'glocal' can be made manifest.

Thus the web and its access devices and contents effectively replicate with far greater technical complexity, societal influence and personal immersion, the former 'alternative reality' created by the Hollywood film industry.

However, whilst film undoubtedly draws the viewer meta-physically inward to merge the 'subject' (viewer) and 'object' (depicted picture), the relative passiveness of the watcher meant that he/she was always being 'fed' the material.

In stark contrast, the internet truly absorbs the viewing participant into the 'screen-world', because he/she is fundamentally proactive. Furthermore, very importantly, because increasingly that screen-world has become an information-based, intermediate space between the viewer and the physical world.

The cyber-screen increasingly becomes the 'help-point' for interaction with the external world, which by virtue of the web's growing omnipotence regards people and products, means that it becomes almost the de facto (even if hyper-real) 'life environment'.

The 'Looking Glass' Feedback Loop -

Given the absorbed potency of this 'through the looking glass' environment, that which is graphically created to populate this virtual world becomes 'as real, if not more powerful, as the surrounding physical reality, often the preferred environment, which in turn powers a feed-back loop impetus back into the physically real world.

Such a cultural feedback loop – from beyond back into reality - looks set to continue the expanding trend established in from mid-20^th century America onward.

Whereas 20^th century European simulacrum tended to be more conventionally applied by the classically inspired minds of the establishment, seen by the UK's “re-editions” of mock Gothic late Victorian villas, psuedo Arts and Crafts 1920s houses, 1930s Tudor-esque suburban houses, the 1990s redesign of the black taxi and later the neo-classical New Routemaster bus; things were different on America's West Coast.

Although the 'old' East Coast mentality was likewise restrained Anglo-centricism given its narrow establishment roots, the comparatively younger West Coast was the direct opposite. Wealth here was firstly created by the “Go West” wagon train pioneers of the early 19^th century who developed the small Latino towns of the coast into modern cities. In doing so they became the new Anglo-establishment, but who later experienced rivalry from inbound 'emigrees' (typically wealthy jews) during the late 19^th century and early 20^th century.

So just as their began an internal “culture war” inside Europe between 'old-money' and 'new-money', so a similar episode began in the USA, centred in California.

[NB Design history's discourse between classicism and modernism rarely truly reflects the politicised nature of this power struggle. In the 1920s both Germany's Weimar Republic and Russia's Early Communism are illustrations, wherein a heavily jewish influenced modernism (see Bauhaus originators) sought to super-imposed a supposedly classless aesthetic over the long reigning historically evolved 'establishment aesthetic. (Later post-modernism became the ironic convergence of the two polemics: eg Disney's HQ with classically deployed giant dwarfs].

Thus from 1920 onward with empty reaches of California that were to become suburbs, mains streets, early shopping malls and commercial centres, were effectively viewed as a 3-D blank canvas by those who had made money from Hollywood cinema and its associated supporting enterprises.

Given the mutual distrust of the time between protestant and jew, and exclusion from establishment activities such as elite country-clubs and golf-clubs, jewish enterprise sought to in a way seek to create a different (anti-establishment) Californian environment; an early but powerful form of 'culture jamming'.

Thus new aesthetics were sought to displace the classical, and various sources were used from Austro-Germanic modernism (eg the AEG building) to inspiration drawn from Hollywood visual story-telling itself such as the theatrical backdrops and studio sets, the bright colours of original cartoon arwork and especially so 'cinematic futurism'.

A new palette of possibilities were seen that could be deployed as the new Californian architectural and environmental aesthetic, leading to 'pop-u-lux', sourced from replication of the powerfully influencing aspirational lifestyles seen on the silver screen.

Perhaps for the first time, but the citizens of California populated not an organically grown place, but an automated, manufactured replication or interpretation of fantasy-lands created by what was originally the real estate development body Hollywoodland.

So a massively powerful new commercial template had then been born, by which views of new, better highly aspirational lifestyles were created for silver-screen mass consumption – creating the 'American Dream' – and in new districts like West Hollywood, Beverley Hills, Burbank, Culver City and Windsor Hills, that dream-scape could be physically stepped into.

Within an automotive theme, Detroit was also undergoing cinematic influence, with General Motors the first to deploy the “colour and art” skills of Harley Earl, poaching him from a previous post as Hollywood set designer. The ability for people to drive lower, wider, longer, sleeker, chrome laden automobiles then completed the ideal of 'living the dream'.

Thereafter the basic commercial model for steering, promoting and re-inventing mass consumption (through designed obsolescence of cosmetic trends) had been formed.

Contemporary “Auto-Replication” of Californian Original -

Though the 20^th century saw major economic expansion of Europe and the US, the fact that the cultural semiotics of European tradition were so entrenched meant that the socio-commercial experimentation that is 'image-replication' was largely localised to California.

However, in a very much smaller manner it was also seen sporadically across the rest of the country along its arterial highways (eg renowned Route 66) wherein the Auto-Aesthetic and Cartoon Aesthetic had taken hold via chromatic road-side diners and giant-sized follies providing identities for local motels.

Nevertheless, the regurgitated images of Californian and highway 'pop-u-lux' environments – through magazines, books, television and cinema – have since been absorbed into the popular consciousness of the westerners, from Paris, Texas to Paris, France.

That imagery compounded by to date a California-centric and California-seduced global media industry, and the previous globalisation of American pop-u-lux iconography, most notably McDonald's 'golden arches'.

Plus of course the constant mass-media reference to the fantasy-escape location of Las Vegas (in Neighbouring Nevada) where what is essentially an adult theme-park was developed in the late 1980s. The central backbone of 'The Strip' consisting of levels of contrived simulacra including a miniature New York, a miniature Eiffel Tower, a miniature Venice, a full size pyramid etc.

Hence, now at a point in history where the US itself has both dramatically slowed in terms of overall trickle-down economic strength and expansion, and also has started to become far more protective of its 'heritage environment' (both natural and man-made structures), the irony is that America may no longer be able to re-play its self-devised televisual socio-commercial growth template. If indeed able, only so in a far smaller and less impacting way.

Recognising this, investment-auto-motives believes this is precisely why the US has been the prime actuator - at a tremendous cost of billions if not trillions of US dollars - in developing the world wide web.

Just as the 'televisual' of cinema and television provided the template for the last 'American Century', so the web offers itself as the perfect image immersive vehicle for American influence across the Berners-Lee ideal of a borderless cyber-space world, which in turn as 'the cloud' sits metaphorically above other sovereign lands.

[NB the implications of this has been well recognised by foreign governments since the web's initial expansion].

“Auto-Replication” within the Emerging World -

American commercial and cultural influence to date upon foreign cultures is plain to see.

Japan's post WW2 sporting love affair with Baseball, the Middle-East's previous adoration of large gas-guzzling V8 cars and SUVs, India's own 'Bollywood', Pan-African US style freeway network ambitions, Brazil's desire to mimic the 'sports economy' and promotion of 'High-school Proms' to limit children dropping-out of education.

Looking forward, as EM countries increasingly expand internal and intre-regional telecoms capabilities to equal the user saturation levels and high connectivity speeds of the advanced Triad region's, the aforementioned socio-commercial matrix that is the 'Ethnographic Mosaic' coupled with the 'Info-Tech Jigsaw' will present new challenges and opportunities for major corporations, SMEs, small enterprises and new start-ups on both sides of the now closing AM – EM divide.

However, as seen in Part 3, it is inevitable that those commercial minds of California and Wall Street will seek to maintain the historic pattern of evolutionary business model adaptation.

Whether that be sold wholly as production rights, the US made product distributed to local partners or licensed for local transmission (freeview, cable and satellite), or indeed (as in the case of Disney's and Universal's theme-parks) effectively transplanted 'as is' upon foreign soil or with adaption for local taste and sensibilities (such as Tokyo Disneyland), and operated either directly or via franchise (as per Tokyo Disney), or indeed the former followed by the latter.

Given its long historical commercial interaction with the rest of the world, the US has long recognised the manner by which it must effectively proportionately hybridise both American and of domestic foreign cultures (eg Tokyo DisneySea). And as seen previously has successfully achieved this to date through 'centrifugal' and 'centripetal' initiatives inbound and outbound; to increasingly create 'glocal' connections.

The difference today is that with the advent of the web, yet another layer cultural interaction has been created, but with its innate attractiveness and so social power comes yet greater complexity regards cultural interaction.

Unlike much of the rest of the western world, Washington's recognised by the 1970s that California should operate as a 'global bridge', with a much debated but remaining open-door immigration policy, attracting Latinos, Asians (Japanese, S.Koreans, Indians and Chinese) to its universities, start-ups and established firms.

Thus California already has an embedded 'glocal' cultural advantage by way of its short-term, and medium-term immigration policies leading inevitably for those who have something to offer with dual homeland and US citizenships.

[NB In real terms it is a strategic strength that Canada, the UK and continental European countries must envy, and one which Japan must recognise as requiring drastic immigration policy change to secure its global future; even if it upsets its American ally].

Disney's Velvet Glove -

The fact is that from its earliest days Disney's imagery, its Mickey Mouse Club and overall compounded brand strength has gained the attention of people worldwide over many generations. The logo, characters and productions creating a parent to child link which since the 1930s has become a prime cultural thread.

[NB Whilst Universal, Warner Bros, Time Warner etc have enjoyed success, none have the engrained 'brand equity' of Disney gained from longevity].

From the initial cartoon days of Mortimer Mouse and Steamboat Willie, morphing into Mickey Mouse, the 1937 song “hi ho, hi ho, its off to work we go” deployed in Snow White and the Seven Dwarves to imbue a national work ethic, mid-century efforts such as 'Lady and the Tramp' seeking to reduce upper-class vs immigrant antagonism, to the re-hashing of Europe's old fairy-tales as with Chicken Little.

Disney-Pixar as the “All American” Vehicle -

Previously investment-auto-motives highlighted America's need to recapture its credibility with foreign states, post Iraq, Afghanistan and the politically explosive mobile-phone hacking affair of world leaders by the NSA.

The film 'Saving Mr Banks' will be viewed by those external analysts encompassing a broad-spectrum perspective as a small but useful component part in such a necessary charm offensive.

As intimated previously, Washington is keen to once again re-represent itself as the global good. Amongst many foreign policy initiatives under this banner, it no doubt wishes to re-imagine, recapture and redeploy Walt Disney's father figure profile.

'Saving Mr Banks' acts as a partial and subtle bio-pic, centred upon the fractious but ultimately successful efforts to secure the film rights to Mary Poppins from the female author PL Travers.

This story 'based on actual events' appears an outright effort to demonstrate to the rest of the world – perhaps EM nations specifically – of America's willingness to effectively purchase the stories which comprise the social fabric and and cultural pillars of foreign land.

Critically wishing to be seen as a credible, responsible steward.

Yet whilst this remains part of the corporate strategic agenda to broaden appeal, influence and profits, the Walt Disney Company also appreciates that its core capability is the personification of animals and inanimate objects from the everyday world around us.

This spans from Mickey Mouse to Jiminy Cricket and far beyond within the animal kingdom. However, given the social impact of the automobile, its myriad of 'ready-made' characterisations derived from size, shape, face-like front and obvious dynamic movement – all leading to the pet-like affinity many owners have - perhap only the car has a plausibility to be transformed. And from a child's perspective, turning objects into animated beings through play, it is almost natural.

Internationalist Appeal of Characterful Cars -

Previously, Part 3 highlighted how that plucky little VW Beetle 'Herbie' was deployed an audience draw from 1969 onward throughout the 1970s, 1980s and to recent times. But undeniably the appeal of that character wained as American, western and global economies improved and people enjoyed more modern cars, thus the world-wide car-parc of original Beetles depleted and the everyday social connection weakened.

But Disney (and indeed the auto-industry at large) continued to well recognise that there had not been a generalised social disconnect to the car by the public, simply that different models had different levels of appeal, and even for the best loved the social connection essentially governed by the on-the-road life-span of specific models.

Moreover, as part of its supposedly impartial brand values, Disney could not be seen to effectively sponsor one manufacturer in preference to another, or be seen as 'bought-off' by product placement; plus the fact that any negative real-world impact upon a single 'chosen' brand (eg popularity decline, PR disaster etc) would impact Disney's own income stream. Better not to “nail Disney's colours to one mast”.

Instead, given the plethora of vehicle brands, models and a variety generated by history, nationality and global expansion of the auto-industry, far better to open Disney's doors to all types – intentionally reminiscent of America's indiscriminate historical immigration stance – so as to re-create on screen, through merchandise and via themeparks, an animated 'world of cars'.

Named “Cars” to provide simplicity and international appeal, and to be obviously created through ever improving CGI animation enabling ever bettered rendering, but which could alsoif required provide various 'pictorial canvases' from the intentionally cartoonesque of original Disney to the photo-realistic required for immersive video game participation.

[NB Without an in-house animation facility of its own, Disney initially negotiated a (seemingly) split deal arrangement with Pixar Animation Studios of Emeryville, CA. Pixar had been operating since 1986 as an independent entity (after Apple's Steve Jobs financially assisted to extract the unit from LucasFilm). But a commercial disagreement pertaining to non-split ownership of rights created tensions until on 05.05.2006 Disney acquired Pixar outright. Between 2005 to 2013 Pixar has produced 14 animated productions including 'Toy Story', 'Monsters Inc', 'Finding Nemo', 'The Incredibles' etc ].

[NB It must be stated herein that investment-auto-motives is only familiar with a few of these productions since myself (Turan Umran Ahmed) is not a member of the general target audience. But is for obvious reasons familiar with 'Cars'].

“Cars (1)”, “Car Toon”, “Cars 2” and “Cars 3” -

The first of the 'Cars' stories in 2006 was a subtly powerful attempt to capture the hearts and minds of the young and old relative to their own vehicle affiliations. Contrasting a modern race-car's “100 mph” ambitious (city) lifestyle (represented by Lightening McQueen) with the long-slowed lifestyle of forgotten small-town USA (represented by Mater and others) – once integral to American life but previously by-passed by the speeding Freeway of modernity. The film was released a year or so before the cracks in the over-blown US economy appeared. The remit of 'Cars ' was to highlight the advantages of a 'down-shifted' life with old fashioned values such as community, caring and sharing; all as part of the local economy's socio-economic agenda. It would prove highly pertinent as the socio-economic fabric of the USA became effectively shredded.

It was well received by the cinema critics across the US and worldwide, with the typical anthropomorphism of automotive characters put through testing times so notionally aiding their maturity – thus echoing child development across id to ego to super-ego.

But the fact that beyond the immediate character-driven plot was one of a changing America which had to re-discover its slower-paced old fashioned values so as to assist social cohesion and a more localised attitude. (This reflecting the budget cut-backs in major city and state budget cut-backs). It also seemingly sought to generate a new patriotism regards the US auto industry prior to GM's bankruptcy and re-emergence and the likewise collapse and revitalisation of Chrysler (under foreign FIAT)

“Cars (1)” was indeed a popular and welcomed story by many US citizens, ostensibly pre-empting the consequences of the 2007/8 financial crisis and its social impact.

The well known plot centres around the juxtaposition of until then the fast-paced dynamic of American city life, as represented by the more shallow race car character of Lightning McQueen, and the slow-pace of a backwater town previously by-passed by the speeding modern freeway (ie modern times) and represented by a cast of seemingly yesteryear characters 'led' by Mater the battered old tow truck. Forced to spend time in the town of Radiator Springs McQueen begins to re-evaluate his life and ultimately recognises the importance of small town values and relationships.

A message which began to ring true for much of the 'downsized' population after 2007/8 and obviously especially pertinent to those with young children who recognised the mutually supporting roles of nuclear and extended families and friends. Its message about mentally and morally returning to an earlier more simplistic golden-time (also that of Disney's heyday) appears to have since been influential.

“Cars Toon” is a spin-off commercial initiative, presenting character led short stories, created for Disney's own XD channel (reaching 71% of US households), broader television and DVD formats. To date it has focused upon two distinct boundaries. First the world-wide, travel-bound adventure tales of friendly and comical 'Mater' the breakdown truck; who was actually the #2 character in the films but a character to which younger children are drawn, but now 'side-kicked' by 'Lightening McQueen' (ex #1).And secondly, the goings-on in home-town 'Radiator Springs' in which the lives of these and other characters are played-out.

“Cars 2” suffered more so from press critics, no doubt perceiving the film as little more than a poorly constructed sequel to leverage the goodwill of the original and maximise merchandising potential with its additional characters.

The plot consists of the backdrop of a world championship race for McQueen (setting the scene for a wide cast of international vehicular characters) and the drawn-in involvement of Mater put between an internationalist set of western heroes and ex-Eastern bloc affiliated villains; all involved in a conspiracy to intentionally undermine a new eco-friendly so that its seeming champion can actually gain more from his interests from the old fashioned oil sector.

It is actually a well constructed plot given its subtle world-orientated agenda (and seemingly beyond the appreciation of most film critics) but does proffer a not so unbiased 'new energy' message which panders to California's own interests (such as Tesla Motors) and equally a bias against 'Putin's East and similar oil rich CIS regions, even if displayed as a comical defunct yesteryear CCCP . Interestingly however, it does tread a political fine-line with US allies, with the prime villain being Britain's Sir Axel-Rod whilst simultaneously bestowing a similar knighthood on the new hero Mater; California then intimating at what it sees as British 'double-dealing'.

Again the adventures of the characters are superimposed over the bigger backdrop of the American international agenda. It is one which seeks to redirect the bogey-man figure away from the international arena and specifically 'Islamic Fundamentalism' and toward domestic growth agenda issues. However, the past is not forgotten by California, subtly hinting at that retreated threat, via the major irritations caused to the public created when fighting 'international terrorism' such as overtly strict airport security controls (removal of shoes and belts etc) made humorous with car character 'extras'.

[NB Also very interesting is the way in which certain car models (such as the 1970s BMW 2002) are made subtly visible in specific places ranging from airport hall to casino. It may be the case that one animator drives a 2002, or possibly a manner to raise the car's profile and price amongst enthusiasts, or to add to BMW's historical American connection.

Plans for “Cars 3” has just been revealed by Disney's CEO Bon Iger.

Whether this continues in an internationalist theme by moving on to new foreign lands (via the threads of the World Grand Prix or Mater's fighting international crime) or indeed returns to the USA backdrop (to presumably intermingle “big city America” with “small town America” for economic growth) remains to be seen.

But there is no doubt that Disney's ambitions for its own domestic and internationalist expansion are being constantly revisited.

A World of Cars -

Undoubtedly when Disney-Pixar first considered “Cars” the movie it was wholly conscious of the manner by which a global audience could be reached using the now homogeneous entity of the car.

Yet crucially, simultaneously able to deploy a myriad of stereo-typically humorous ethnic personas through the different vehicle models types and related character.

The 'seen it all' Sheriff in the form of an old Mercury Eight, the 'down-shifted' motel owner and love interest in a Porsche 911, an enthusiastic Italian FIAT cinquecento, his counterpart forklift truck, a hippy VW microbus whose liberal ways irritates a veteran WW2 Willys Jeep, the 'big mamma' appeal wrapped within a 1950s showcar style, her partner as a late 1950s Chevy Impala 'lo-rider', and a host of others.

The later filmic introductions in 'Cars 2' of British, Italian, French, German, Japanese, (once) Eastern bloc characters and many others thus expands the international personality platform of the Disney sub-brand so as to all intense purposes be seen as increasingly worldwide.

With only perhaps greater focus on Latin America, India and China to come, perhaps in 'Cars 3'.

So the world portrayed through automobiles and criticallyy through the background of de-constructed and re-constructed associated automobilia; wherein car parts become the aesthetic forms for everything from mountain peaks by way of hood emblems to era-specific architecture displayed using era approapriate items, whether that be the pistons shown as petrol forecourt pillars of a 1950s pop-u-lux era Radiator Springs or the 1910 headlamp surrounds which form part of the lattice metal-work of a Parisienne marketplace.

By doing so the world at large as we know it, is alternatively recast to befit a world of car-based characters; a ploy often used in children's animation to provide an enhancing context

However, in doing so, the reality-altered backdrops and environments themselves provide possible new inspiration for tomorrow's architects and planners, taking the feed-back loop seen by Californian pop-u-lux and re-deploying it using contemporary screen-derived imagery. In which case portions of our newly built surroundings would be effectively that of the irony of new 3-D simulacra contrivences sourced from established 2-D based simulacrum amalgamations. So continuing our post-modern era of cultural contextual naval-gazing for new inspirations.

A 3-D 'Cars' World: Theme-Park -

Although in-situ theme-parks had existed well before the mid 1950s, an early rendition exemplified by London's upper-middle class Vauxhall Pleasure Gardens espousing foreign tastes as opened in the 1660s onto to the mass-market appeal of New York's Coney Island, it was not until Walt Disney opened his 3-D wonder-world of until then 2-D screen characters and fantasy surroundings that the term 'themepark' was truly established.

Disneyland was originally planned to sit beside the animation studios in Burbank, north to central LA, but it lacked required acreage and access And no doubt the local municipality preferred to avoid the stream of tourists and instead grow a higher value activity its cinematic and televisual

The attraction needs no explaining, itself reproduced with varying expanding and suitable content across the globe, from Florida to Tokyo to Paris to Hong Kong to Shanghai. During this expansionary process the original site has likewise been updated to suit Disney output.

Thus in June 2012, after 6 years growing publicity, the new attraction of 'Cars Land' was opened, appropriately utilising a portion of old car park ear-marked for development.

In essence a life-sized representation of the imagined Main Street that makes-up much of 'Radiator Springs', itself portrayed as a revived relic of the 1950s. Individual lots given the commercial spin of variously themed gift shops which accord to the sensibilities of the relevant character that notionally resides within. Trundling around voicing witty phrases are moving life-size models of the primary cast adding the required dynamic.

The coupled attraction is the Radiator Springs Racers, offering the riders a within the screen experience provided by cast interactions. (The ride deploys the same 'slot-car inspired' mechanical ride system as the Chevrolet sponsored 'Test Track' at EPCOT in DisneyWorld, Florida).

The obvious corporate manifesto is to immerse visitors into at least for a short time the feeling that physical and fantasy realities have melded to provide periods of escapist and dream-like joy.

EM Internationalisation of “Cars” Themed Parks -

With a successful implementation of the Disneyland “Cars Park”, it seems likely that Disney will hope to replicate the original across the globe. But altered as necessary regards character cast and environs to befit the different regional histories. This expected as 'Cars' probably expands to draw from many various EM locales.

And so the adventures of the central characters to date effectively replayed with new, and where positive closely associated older, vehicle shapes, and the use of various regionally well known character-actors to replace lesser known US character-actor highlights the recognised importance of local orientation.

The fact that the character Mater (the tow truck) has a near look-a-like by way of Ivan (the Russian-esque tow-truck) indicates that the ever growing new set of characters with localised national personas could likewise be developed as core local characters.

Thus the roll-out of similar Cars-centric theme-parks across EM geographies could either take on the original US format, or be cosmetically localised, depending upon the sales popularity of media and merchandise sales, or indeed merge both.

To this end then, unlike the Disney mega-parks of the past, some of which saw poor early returns on investment, a new more risk-averse business template may be created that demands smaller stakes and could be under-written or co-ventured with EM governments and firms.

One which deploys a set of smaller sized “Cars Parks” through a greater number of countries. A parallel here to the ubiquitous American shopping mall, where an exact or similar design replicated time an again, would allow for great economies of scale, with a near one time design and development process, reduced cost build materials and speedy construction.

Disneyfication: Creating New Realities -

As portrayed, the modern-day idioms of 'simulacrum' (the evolutional copy) and 'hyper-reality' (that of an experience which improved upon the original) have from their European historic and 20^th century roots been 'extruded' yet further by the culture moulding minds of California.

Southern California's Anaheim promoting and demonstrating original metaphorical entry into the cinema screen, whilst Mid California's Palo Alto and Silicon Valley created the newer but far more 'reality blurred' and commensurately powerful cyber-space based web-world.

But presently sat squarely between these two past and future fantasy realms sits the modern town of Celebration, Florida; a Disney originated master-planned ideal. It is positioned next to Disneyland, and has a direct streetway, but since Disney Corp's promised return of control to democratic powers, it has fundamentally operated autominously.

Celebration is best considered a community experiment which by virtue of its town-values related to 'new urbanism' (civic mindedness, ecological, sustainable and 'socially temporate') ultimately recalls the historic manifestos of the Garden City Movement seen in the late 19^th and early 20^th centuries in the UK, Germany and USA.

Critically, whilst much of the architecture and layout may be viewed as all too Disneyesque in design and execution (bordering set-like) the environment was planned to evoke small town living with a quiet, safe and intimate 'vibe'. To European eyes the multitude of interspersed mock-style buildings ironically recalls the 'living set' of the film 'The Truman Show' or context for a 'Stepford Wives' life; but in actuality has aesthetic overtones not too removed from conventionally created small upper-middle class towns in Florida and S.California, which themselves are often highly stylised and likewise 'bound' nature into manageable chunks.

The critical aspect is that for inhabiting and visiting populations the town offers the old Garden City ideal but overlaid with re-interpretations of popular culture iconography. And befitting the less high-brow American, it has deliberately not deployed an arguably more tasteful prescription by way of a local vernacular (as per the planners of Poundbury in the UK). Given the location next to Disneyland, the corporation simply accorded to modern American cultural sensibilities, which ironically has itself helped mould.

The point is that Celebration – its mix of regulated architectural fakery and regulated living agreements to maintain standards and order – is the 21^st century's version of good living to many people, itself a much wished for dream-like environ for many of the worlds aspirational EM peoples.

Re-Building the Physical From the Ethereal -

Thus we have seen how Disney has via its themeparks and into its experimental town, managed to re-build the physical from the ether of imagined screen orientated worlds.

As the physically real and virtual reality continue to form the basis of a new hyper-reality so the man-made environment around us will be affected by the ever more conjoined 'internet of things'.

Modern 'cyber-citizens' then have and will increasingly experience this 'new world' around them very differently. As it develops to become the norm such people will probably have a far more accepting, less questioning manner, as IT devices themselves become increasingly absorbed as lifestyle enablers, gaining ever more emotional attachment, from the formality of an 'electronic concierge' to the absolute reliance of a “Hal pal”. (Hal the name used for the central computer in 2001: A Space Odyssey).

[NB Indeed, research into the 'animorphisation' of electronic items has been long ongoing, especially in Japan during the 1980s/90s and increasingly so by the likes of the US's DARPA and Boston Dynamics. So the notion of a much evolved Tamagotchi though far more animalistically plausible as a pet-like 'device character' (perhaps based on present robotic work such as BigDog/LittleDog) serving its supposed master/mistress to interface with cyber-space through contactless interaction (as per cars and credit cards) is not far-fetched. Thus within 'the internet of things' everyone might want or need the interpretative device such as K-9 from the BBC's Dr Who series. (This very alpha-numeric prevalent in computing circles)].

The Glocal 'New Horizon' -

Thus the old phrases of “its an upside-down world” or “a topsy-turvy world” do indeed pointing to the underlying emergent and philosophical realities upon us.

But whilst that metaphor of the very altered old AM vs EM relationship (that of 'global economic vertically') proves itself undoubtedly true, the new world being constructed also consists of a soft-power 'inversion'. w

Whereby the simulacra inspired screen image, itself evolved from either the post-modern physical world or the now embedded info-entertainment sourced cultural overlay, itself increasingly becomes used as the source for inspiration or copy+ artifact in the physical world. Whereby technological progression - such as the science of 3-D printing - is able to make such conjecture more than possible when made affordable via industrial economies of scale.

Hence the philosophical acumen, operational capabilities and ethnically diverse workforce of corporations such as Disney (and their broadly talented supplier base) could indeed when interjected into the 'Structural Jigsaw of the Web' and the global 'Ethnographic Mosaic' provide the under-pinnings for a “Glocal New Horizon”

The “glocal auto-replication of the Californian original” may yet be the (overt or less obvious) west coast corporate ambition, which in turn serves the micro-economic template needs of Emerging Market countries and thus drives their macro-economic agendas.

Walt Disney recognised from the foundational sketches of his cartoon layouts: that it is better to build from the bottom-up, than to try and re-configure from the top-down.

[At Disney] “we keep moving forward, opening new doors and doing new things, because we're curious and curiosity keeps leading us down new paths”...and after all... “it's kinda fun to do the impossible”