Previously,
investment-auto-motives described the historical background to the
contemporary top-tier classic car arena, highlighting the various
marques; across chassis constructors, body-builders and complete car
producers.
Names which through
degrees of motor-sport victory, rarity, beauty, luxury and prestige
came to form the “crème de la crème” amongst the many
automotive icons; the majority being French, German, Italian and
British given their primary early roles in motor-sport and satisfying
a 'well to do' clientèle.
It also highlighted the
global wealth shift in late 19th century and early to mid
20th century Europe that occurred. Money flowed out of the
Old World, especially so Eastern Europe, and gravitated toward the
USA, so arguably exiting a region of diminished rates of return and
entering the New World, matched by the transatlantic migration of
labour and technologies.
As seen in Part 1, this
movement saw some premium American made marques created – though
set against a primary indigenous focus on economies of scale and
standardisation. Yet for that all important 'old money' appeal
amongst the relatively newly made American industrial barons, it was
the European made cars that maintained distinction.
The USA's combination
of population growth leveraged within its free-market economy created
a 'wealth engine'. One which could afford a strong global military
presence which in turn assisted the effective capture of
international business and consumer markets, those regions baked into
the 'American Model'. This reach made for the “American Century”,
to the enormous financial benefit of those either born fortunate or
applied their intelligence; those who gained the most able to deploy
both advantages.
As time passed so much
of the banking and industrial wealth base created by the Morgans,
Rockerfellers, Carnegies, Vanderbilts, Mellons etc sought ever wider
global opportunities by the descendents, so participating in the
wealth creation of Japan, S.Korea and China; all facing the West
coast of the US.
So whereas the European
facing north-eastern US seaboard has been the natural centre of
gravity for America's uber-wealthy, so increasingly with ever greater
Asian focus, so the West Coast gained ever greater favour. And with
it a gravitation of all things cultural, including the likes of
Pebble Beach 'Concours d'Elegance'
Hence the
'Californiacation' of Europe's Masterpieces.
[NB a well intended
note to American enthusiasts: the term “concours d'elegance” is
pronounced without the 's', by fully conjoining “d'elegance”,
extending the 'a' and light on the 'ce'; so not pronounced “concourz
de eleganze”, but “concour d'elegaans”
This mentioned so that
those children and adults who must admire from a distance, or indeed
those who actually repair such cars – and so create the atmosphere
and beauty - are not intellectually sneered upon by a small faction
of the more wealthy; usually those who have gained but not earned
their lifestyle].
Part 2 provided a
summary of the cultural backdrop to those revered top-tier cars, it
highlighted: the major concours d'elegance events around the world
and increasingly so in the USA, the major dynamic driving events that
mirror the static concours and demonstrated the importance of marque
specific clubs as guardians of the vehicular history and as promoters
of shared knowledge and as hubs for locating components and repair
know-how.
This was followed by a
call for vigilance amongst collectors given the temptation by some to
lean toward less than honest activities which may corrupt the
automotive bloodlines in an effort to profiteer.
A long list of the
highest auction sale values was provided to demonstrate just how
rarefied the most expensive of the classic cars have become; very
likely because a true 'apples for apples' approach which would
provide consistency is not available. Prices also boosted by various
factors ranging from the 'must have' attitude amongst some
uber-wealthy, to the FX advantage of a weakened US $, to the fact
that such cars have been promoted as safe stores of wealth when
perceived as an 'alternative asset class'; especially pertinent
during the financial crisis. This all the more important given the
ever increasing global flow of semi-latent and active finances
created by EM growth and global QE.
Thus Part 2 sought to
demonstrate that the top-tier of the classic car 'market' should be
viewed very differently compared to normal markets (financial and
otherwise) because of its lack of liquidity and given plethora of
factors involved. All of which leads to greater perceptional pricing
and indeed externally influenced 'pricing', rather than more
rationally objective pricing methods.
Precisely because such
product scarcity is indeed being chased by global wealth it seems
unlikely that the top-tier will suffer to any great extend the
greater volatility seen within the lower orders of the classic car
world. Herein valuations are more rationally governed by a sliding
scale of greater availability across more distinct condition
categories set against a regional economic climate.
Part 2 ended on an
important investment-auto-motives' thesis.
That the ability to own
and deploy such automotive masterworks as items of cultural
significance - and very probably traded artefacts - as part the US's
now necessary soft-power approach to the EM and global macro picture.
Part 3 will show how
the USA with substantial Californian input, has and is re-forming
itself so as to supplanted Europe as the cultural heartland of the
automotive world.
[NB
investment-auto-motives believes that in doing so it seeks to
legitimise its role as the perceived global leader in green-tech
cars].
Hence today in what may
be described as the 'neo-industrial age' – such as hand-crafted
watch-making in Detroit, which is set to percolate hand-made skills
into its cars - there is in parallel the guided conveyance of not
just the auto-industry but the very fabric of American auto-culture
led by California. One in which Europe's finest cars are set into a
new context relative to the 'Great American Auto Story', and where
California is able to in auto terms cross-fertilise the cultural
image akin to the Napa Valley wine region with the technology image
of Silicon Valley.
The seeming agenda to
stretch from the high echelons of Pebble Beach, and its subtle
influence upon global high finance, industry and politics, to via
popular media, throughout the world to poorest albeit slowly
improving neighbourhoods of South America, China, SE Asia and
Sub-Saharan Africa.
Previously
investment-auuto-motives highlighted the topics to be covered in
Parts 2 and 3. The remaining aspects to be explored are the following
points:
- list of some
important museums and collections
- a renowned 'garage'
- an increased rise in
imitation
- broadened 'market'
(original vs 'homage')
- a continued 'American
Grasp'
- the commercial future
of 'Californiacation'.
- use of collectors'
models to engage foreign business interests.
Now, the web-log
returns to the topic of the 'rare breed cars' and the watershed that
is 'Californiacation', but set within the broader regional and global
socio-economic context.
This section begins
with a view of the major top-tier automotive collections.
Vehicle Museums and
Collections -
Though fascination is a
central theme, different yet often inter-woven imperatives tend to
underpin the motivation for collecting and expansion: commercial,
public and private. But in all cases the outcome forms part of the
automotive time-line, an historical record.
Following are some of
the better known museums and collections, outside of the USA, yet
hardly a comprehensive list.
Commercial:
Recent decades have
seen the major automotive manufacturers rightly seek to embrace and
celebrate their growth story via the creation of in-house museums.
Volkswagen “Zeithaus”
Museum - Wolfsburg:
Part of its Autostadt
(car-town), which juxtaposes the company’s brand and product
milestones alongside those of other deserved marques and models –
so aiding the perception of VW's even-handed stewardship of
auto-history.
Audi Museum “Mobile”
(VW Group) – Ingolstadt:
Held within a circular
glass building, the museum displays various models which represent
the sector consolidation process by which Audi was formed. These
include the brands of: Horsche, DKW, Wanderer, NSU, Auto Union and
Audi. Its exit includes new model showroom.
Skoda Museum (VW Group)
– Mlada Boleslav:
The initial collection
started in the mid 1960s, with move to its first dedicated location
in the mid 1970s. Upon the marque's centenary in 1995 a new facility
was inaugurated, intended as a museum, conference centre and cultural
interface between the factory and the public city centre. It houses
the wide variety of Skoda vehicles produced. As part of its desire to
educate about classic repair methods, it unusually showcases the same
model in different stages of repair, aswell as wholly original
condition cars.
Porsche Museum (VW
Group) – Zuffenhausen, Stuttgart:
Founded in 1976 as a
'works' museum with changing vehicle displays, the facility grew
sizably with a new building in 2009
Daimler Museum –
Stuttgart:
Previously housed as
part of the general factory, the new facility was opened 2006. The
collection spans from Benz's first 'modern automobile' to the latest
F1 cars, and the collection is effectively operated and maintained by
the Mercedes-Benz Classic Centre, which has run an historical
collection with external enthusiast participation since 1993 in
Stuttgart, opening a second dedicated centre in Irvine, California,
which operates as a satellite location to the homeland museum.
BMW 'Welt' Museum –
Munich:
Opened in 2007 it was
created upon similar thinking to “Zeithaus” (above). “BMW
World” functions as a new car distribution/release centre for
private and business buyers alike. Yet instead of offering a public
entertainment face, die Welt instead offers a business face;
promoting the use of events space and conference space.
Renault Classic –
Paris:
As understood, although
with a large collection of historic vehicles, only a small number is
displayed for public view at the Boulogne-Billancourt site. This may
be because of a corporate desire to reduce costs and for people to
visit L'Atelier Renault on Champs Elysee, where old and new sit side
by side. Also possibly of little need given the coverage of another
non-Renault museum named Le Manoir d'Automobil, though far from Paris
in Rennes.
Jaguar Cars Museum –
Coventry:
Unlike other
manufacturers substantial museum rebuild efforts, the 'leaping cat's'
museum is still sited within Browns Lane, the marque's original home,
on which the new vehicle pilot build workshop stands and the wood
veneer workshop. Instead, over preceding years the HQ, design and
development and production have been relocated to other plants. The
museum is small by counterpart standards, so with the TATA backed
growth of JLR plus its own cash generation, a larger, more imposing
museum facility is expected.
Ferrari Museum –
Maranello:
Initiated in 1990 and
close to the car factory, a new wing was added in 2004. It houses
both motor-sport and road cars, some seemingly borrowed, the
voracious collector's appetite for Ferrari means the full lineage
cannot be displayed. But an expectedly strong line-up of F1 and prime
F2 cars and associated victory silverware.
Toyota Automobile
Museum – Nagakute, Aichi Prefecture:
The initial 1989
facility was designed to place its own vehicles in a broader
historical context with the display of many other non-Toyota and
non-Japanese vehicles from throughout the decades. It appears to hold
many vehicles borrowed from private Japanese collectors, aswell as
having acquired many in its own right, but of course showcases the
most prominent of its own creations. In 1999 the domestic vehicles
were re-sited in a new annex building and likewise contextualised
relative to the social fabric of Japan's 20th century.
Another satellite museum is located in the USA
Abarth Works Museum –
Lear, Belgium:
Though neither FIAT
owned nor in Italy, a dedicated collection of Abarth specials and
Abarth enhanced FIAT cars are displayed in this facility and
adjoining warehouse and workshop. The owners of the facility keen to
commercially service the public and private Abarth passions.
Classic Remise –
Berlin:
Effectively a free to
enter museum-like sales space set within a large yesteryear tram
shed. An assorted collection of classic cars, from E5,000 to E100,000
sit awaiting sale, accompanied by views into the craft workshops
which support the restoration process.
Publicly Owned:
These have tended to be
within the remit of local authorities, places such as the UK's
Coventry Transport Museum, but the typical free-entry philosophy set
against public funding cuts means that those remaining within this
sphere may well be dissolved.
This was the case with
Australia's Sydney Motor Museum, whose own public interest small fee
entry charge was insufficient to cover costs. Thus such unfortunately
unworkable business structures tend to see their vehicles go to
commercial collections, private collections or charitable trust
collections.
One still seemingly
healthy museum is situated in Italy. Presumably much subsidised by
the state is the “Museo dell Automobile di Torino”, now also
known as Italy's National Auto Museum. It displays a wide selection
of domestic and foreign vehicles, obviously highlighting the history
of FIAT and its previously consolidated associated brands (Alfa
Romeo, Lancia, etc). With this dedicated site, it was deemed
unnecessary to house a museum in the converted iconic Lingotto
Factory.
Private to Public:
One most interesting
story is that of the now reallocated Schlumf Brothers collection;
primarily devoted to Bugatti. They secretly amassed a store of many,
many cars, buying other's whole collections from the Bugatti family,
from owners on the Bugatti Club Register itself and other renowned
collectors through the 1960s. Over 105 Bugatti cars vehicles were
amassed amongst an inventory of over large 400 items. The 1970s
slowdown of the French textile sector vs Asian production costs led
to the shut-down of their various factories and unpaid employees,
causing worker anger.
The brothers fled to
Switzerland to escape the authorities and 'mob', at which time the
employees found the startling collection. To reimburse staff earnings
the union took control of the collection and subsequently put under
the control of the state recognising its importance as a national
cultural asset.
In 1981 a portion of
those cars were judged as rightly repatriated to one Schlumf brother,
forming part of the estate left to his wife. She sold the 'reserve
stock' as it became known to other interests who in turn sold
vehicles to the Mullin Auto Museum (see below). The large remainder
housed in Mulhouse, France, this collection today known as 'Cité
de l'Automobile'.
Charitable Trust
Status:
Ongoing shifts regards
the advantages of trust status over preceding decades has meant that
this funding form has become a near norm for those collections
dedicated to 'public interest'.
Here in the UK,
morphing from private to charitable basis has been that of Lord
Montagu's collection on the Beaulieu Estate, taking the name National
Motor Museum to reflect its grown stature. Latterly, the Heritage
Motor Centre (or “Gaydon Museum”) adopted similar standing, as
did the Brooklands Museum (housing cars, motorcycles, bicycles, buses
and planes given the circuit's airfield history) whilst also seeking
corporate sponsorship.
Thus it seems the
public interest type of collection will be reliant on a mix of the
charitable trust meets sponsorship model to survive and prosper.
Private Passions -
Wealthy individuals
have always been a major force regards the collecting, conservation
and repair of notable vehicles. These have tended to be relatively
personal projects though undoubtedly greatly assisted by staff and
contacts, formed for either personal enjoyment or public image or
status versus similar peers, often a mix of all.
People such as: the
Sultan of Brunei, clothing magnate Ralph Lauren, musicians Nick
Mason, Jay Kay and Brian Johnson, film actor Nicholas Cage, comedians
Tim Allen and Jerry Seinfeld, TV chef James Martin and of course the
publicised efforts of Jay Leno.
There are others,
especially so in the US and related to the entertainment industry,
but who's 'collections' cannot be considered truly so; often
temporary recipients of the cars (many of which are simply new
luxo-cars) whilst their public image and earning power lasts, this
lifestyle critically at the behest/mercy of their 'record label' or
similar.
However, in direct
contrast, in the case of Ralph Lauren there appears an appreciation
of the aesthetic syntax between apparel and automotive creation.
[NB Although ostensibly
a private collection, it should also be recognised that his car
collection was publicly exhibited in Europe in 2011]
These then the
popularly known classic car collections.
But others are held by
(often intentionally) far lower profile names, who have gained from
industry and commerce. One such being the Louwman Collection in The
Netherlands, with what the Dutch call “Old Timers”.
American Private
Collections -
However, as noted in
Part 1 the 'American 20th Century' enabled a greater
propensity for private collections to be created in the USA, likewise
by those more distant from immediate public glare. Less well known
past and present individuals include:
- Otis Chandler to
Peter Mullin – (see below)
- Robert Lee Collection
– Virginia (since long dissolved)
- John W. 'Jack' Rich
(JWR) Collection – Frackville, Pennsylvania
- John Mozart
Collection – Mountain View, California
- Bruce Meyer
Collection, Beverly Hills, California
- Culver and Pitt
Collection - unknown
- Harold LeMay – (see
below)
- Michael Dezer
Collection – (see below)
- Frederick Simeone
Collection – (see below)
As can be seen, some
have been seen to be taken from apparent private status and put into
those of an associated charitable foundation or similar; though they
are ostensibly still pseudo-private but with a public-facing
entertainment and educational remit.
Such collections
include:
- America's Car Museum
(nee LeMay Collection) – Tacoma, Washington
[the world's largest
vehicle collection]
- America on Wheels –
Allentown, Pennsylvania
- National Auto Museum
(nee Hurrah Collection) – Reno, Nevada
- Peterson Automotive
Museum – Los Angeles, California
- Simeone Foundation
Auto Museum - Philadelphia, Pennsylvania
- Mullin Automotive
Museum Foundation - (ex Chandler)
Creme de la Creme -
Whilst other
collections have a number of European masterpieces The Mullin
Collection is specifically dedicated to the stewardship of 'the best
of the best', so is of specific interest here given its raison
d'etre.
To quote the website
description...as an “homage to art deco and the machine age –
eras that produced exquisite art and magnificent automobiles. The
museum is home to the finest historic French automobiles from the
Bugatti to the Voison as well as significant and representative
decorative art from the 1920s and 1930s”....[it] “will serve as a
legacy”....[it] “supports non-profit public charities that are
dedicated to the study, preservation and public display of classic
automobiles”.
As seen with the Toyota
Museum, in contrast to The Mullin Museum's narrow focus on the
epitome of “drivable sculpture, kinetic art, poetry in motion”,
very often more commonplace and so more socially relevant, vehicles
exist as the counter-balance of larger collections.
Jay Leno's Garage -
This the case with what
is perhaps now the western world's best know car collection.
Whilst this weblog
intentionally seeks to highlight the arguable problems of the
Californiacation trend, one notable caveat must be this collection and its deserved special mention; given its
public reach and intrinsic subtle agenda.
Through Leno (and his
probable 'sleeping partners') a massive
external exposure has been generated, the span of private and commercial
guests invited provides not only a chronological connection from the past to today and into the future; but the commercial guests - often relatively small-time, and perhaps intentionally conveyed as 'mom and pop' - is intended to assist America's socio-economic reinvigouration.
His chat show host fame undoubtedly enabled a strong launch-pad for the
web-video series, and so capturing large and diverse audience.
However, the show's innate propulsion is Leno's true enthusiasm, his accrued knowledge and constant learning. Whereas other
collections tend to be inevitably 'static' in their real-world
presentation, 'Leno's Garage is not – and not simply because of the
drive around the block, through the hills or down the freeway – his persona like any true enthusiast adding much dynamism.
Comprehensive knowledge spanning history and
technologies and an appreciation for all types of car provides for true
'auto-egalitarianism'; the mark of a true connoisseur who can
recognise not only the inherent mechanical magic of a specific design
or engineering solution, but of critical importance the resultant industrial and social
impact.
Whether spotlighting an
early era horseless carriage, a Communist Russian GAZ sedan with
polit-bureau overtones, a 'dropped and chopped' SoCal Hot
Road, a once humdrum van or pick-up, or indeed a multi-million dollar
Pebble Beach car, the auto-enthusiasm created in turn assists the
local auto-parts store (whether listed or independent), repair shops,
car dealers (corporate or franchised) and so all vehicle
manufacturers that sell in the US; though with obvious Detroit bias.
Some collectors do so
for prestige and personal self-promotion, others because they admire
the inherent artistry, and others with an obsession for a single
marque or era type. But, as with Leno, to be absorbed by everything
and understand its detail is the sign of a child's wonderment and old
person's acumen.
[NB to be so bold, one
small negative aspect was Leno's previous tendency to cut across his
guests in conversation. Seemingly not done from any sense of
inter-personal power-play, as some people do to command a
conversation, but because his mind was already reaching for the next
observation point or conversational topic].
Ultimately, the fact
that his garage consists of some very precious vehicles but also an unprepossessing
attitude, has formed a variant of 'autopia' accessible to many millions.
“Bravo”.
Increasing Imitation -
“Imitation” it is
said “is the sincerest form of flattery”, but as per Adam Smith's
quote regards the self interests of the “butcher, brewer and
banker”, an expanding world of automotive imitation has formed
because of commercialism behind the Replica, Resto-Mod and Clone.
As the sales prices of
rare exotica has sky-rocketed over the last twenty years, so a new
market has emerged for very close copies of the original machines.
Though it must be noted
that these high input, high cost machines are far greater creations
than many of the modern so called replica cars that have been
promoted in recent years; usually Ferrari, Lamborghini, Rolls-Royce,
Bentley etc. Those are little more than 'body copies' placed over
donor cars or self-fabricated frames and with mismatched proportions
and poor detailing are little more than bad interpretations. Such
outfits offering such cut-price facsimiles also appear as little more
than confidence trick 'businesses'; taking deposits for car-builds
supposedly located at one workshop location, then 'skipping town' and
re-running the scam elsewhere under a new name at a new location.
Equally, the new realm
of replicas is far from that of the once dreaded, but now much
improved, 'kit car' arena. Necessarily adapting low cost donor
vehicle systems, into what were previously generally considered poor
interpretations of classic motorcars – especially 1930s roadsters.
However, this sector of
the 'everyman's replica' invariably involves inherent engineering and
cost limitations. There have been some accomplished cars in their own
right, from intended low cost beach buggys and track cars to replica
AC Cobras and Porsche 356s. But all too often given the problematic
business formulas, the high priced classics appear never truly
repeatable; many design details proving problematic (donor chassis
engineering hard-points, exacting scale, the wheel-arch 'sit' and
paint quality over plastic skin).
However, that improving
sector, should have assisted the emergence of true craft-based
players.
Replica:
In the mid 1990s a new
level of professionalism entered, seeking to create as close as
feasible “like for like” vehicles worthy of collection in their
own right; usually portrayed as 'homage' vehicles. Such
entrepreneurial re-creators seeking to achieve a sustainable business
model by using lower cost crafts-people residing in countries with
unreformed and so challenged national economics. Thus providing a
positive 'tailwind' FX differential between the national currency and
the US Dollar , British Pound, German Deutschmark, French Franc,
Italian Lira and latterly the Euro.
Pursang of Argentina is
recognised as perhaps the most competent 'neo-creator', having become
reputed for its 'atelier replica' of the Bugatti Type 35, Type 43 and
later the Alfa Romeo 8C-2300 Monza. It also produces early era
motorcycles such as the Indian. In addition Pursang will create
wholly new client commissioned cars which reflect the golden age by
drawing upon marque various cues, but not dedicated to anything
specific; so 'theme cars'. Lastly it creates children's pedal cars in
the manner of miniature Bugatti T-35, Bugatti T-576 (“Tank Car”)
and Ferrari 250 Testa Rossa.
However, it seems with
that the risen auction prices of original cars, so the ceiling price
of replicas has been able to rise, and has thus allowed other regions
to enter the high value replica arena.
This the story of
Motorima Coach-building of based in (much higher cost) Sweden.
Building upon its restoration business to develop a 'recreation' arm.
(Interestingly the workshop was spawned from the initial car and
'social artefacts' collection). Thus far beyond repair work on
various yesteryear cars, it has designed and produced 'homages' to
the Alfa Romeo Disco Volante and the Abarth Special racer.
'Resto-Mod' -
This genre is
essentially a cross-fertilisation of old and new vehicle parts. It is
a portmanteau of “restoration and modification” and typically
involves retaining but strengthening the original structure,
maintaining the classic appearance of a car externally and often
internally, but altering the 'invisible' under-body systems: engine,
transmission, rear axle, suspension and brakes and an electrical
re-wiring. This then gives improved performance and notional
reliability set into a romantic wrapping.
Whilst in fashion the
number of truly unmolested original cars of a specific model and year
will inevitably decline, presumably leaving the remaining unaltered
cars as at some future point in time yet more desirable vehicles,
thus boosting ever higher 'per original' valuations and so prices.
'Clone':
The term 'clone' in
automotive circles is typically used in one of two forms. Firstly
regards the legitimate mimicking of specific classics (without intent
to deceive) Secondly regards illegitimate vehicle identity theft
(with intent to deceive).
Specially prepared
'clone cars' have appeared ever since certain models gained sporting
repute, but perhaps been more apparent on the broad classic car scene
over the last 30 years so. Ever since factory-team performance
versions of standard saloons and coupes have been in motor-sport, so
enthusiasts have sought to build their own copied versions: ranging
from '60s Mini Cooper to '70s Dodge R/T cars to 80's Ford Cosworth
powered variants; and many, many others.
The term's other use,
initially adopted by police forces, is whereby the external
registration plate befitting one specific vehicle is copied and
applied to another car of similar appearance, done so to commit an
offence ranging from avoidance of a road-camera related fine through
to use of vehicle in a more serious offence (robbery, murder etc).
A Broadening of the
Top-Tier 'Market' -
To re-state the
beginning of Part 1, as with the world of furniture, ceramics,
artworks, antiques, etc etc, as an item becomes revered, in its own
right or by association of the owner, so the innate value of an item
increases; whether slowly, quickly or otherwise.
Inevitably, and
especially so in societal realms where taste-makers reign and
followers seek approval, a demand arises for exact or similar items.
Historically a reactionary process begins to create a range of
select objects d'art created 'in homage', perhaps the best known
examples within the antiquities world that of Josiah Wedgwood’s
18th century facsimile of a very early AD Roman vase,
re-christened the 'Portland Vase'.
As seen previously in
automotive terms similar efforts have been undertaken, especially
when the original article in question reaches new valuation levels;
hence the less than convincing copycat versions of originals. From
the aesthetic effrontery of the late 1970s Excalibur (using of all
things a BL Mini's windscreen and doors) to the better but still
'incomplete' mid 1980s interpretation of a Ferrari 250 GTO (using a
Datsun 240Z/260Z structure).
Thus seemingly in
whatever sphere, as long as there are unique artistic pieces priced
out of the reach of most, a demand is perceived and satisfied, or
not, depending upon the aesthetic and technical credibility of any
recreated item.
As seen, where as once
a small band of wealthy collectors unable to purchase the real thing
had only poor imitations as an option, today with the growth of the
collector-base, a wide array of increasingly convincing machinery is
being hand-crafted, from the 'Peterson' 1930 Blower Bentley to a
1970s Porsche 917 LMP car in obligatory Gulf Oil colours.
Thus, the increasing
availability of credible imitation vehicles, the trend much boosted
and accepted by the Peterson cars, means that an ever wider spectrum
of 'homage' cars are being built either to order or as ventured
initiatives destined for the auctioneer's stage.
Thus it may be argued
that the original piece by default becomes first and foremost of what
is latterly viewed as a series of artworks, though unintended and
unforeseen by the original's creator.
Whilst positive in the
short and medium terms for those collectors happy to have an
imitation – and may are given the usability of such a machine –
the homage production of such vehicles also heightens the potential
for problems regards authenticity and provenance in the distant
future.
Especially so when
vendors use phrases such as “believed to be” with apparently
convincing back stories and hard-copy evidence regards originality.
What has occurred in the worlds of fine arts, furniture, ceramics
etc, will undoubtedly occur in generations to come regards the
classic cars of the 20thy century. “Caveat Emptor” the necessary
phrase of late 21st century sales.
But more likely is that
these replica recreations, still in small numbers, when dispersed
widely over the globe, will because of even their relative rarity,
become treated with near the same reverence as that for the original
cars.
What is clear is the
USA's leading role in managing and perhaps massaging this 'market',
an almost expected occurrence given its heavy cultural
commercialisation of the art market since the late 1950s.
However it must be said
that seemingly thus far, the central players and power-brokers of art
vs cars do appear to have differing sensibilities. The broader art
world - especially post-modern art with its plethora of celebrity
content - often interpreted via PR spin rather than actual
intellectual substance. Whilst at least the precious items of the car
world, because of their socio-industrial meaning, can be said to
contain substance on par with style.
However, exactly how
long this essential difference remains is debatable given pricing
dynamics, particularly the former's super-charged 'money mentality'
apparent seep into the latter.
America's Past Grasp -
It is undeniable that
the USA has enjoyed broad swathes of worldwide hegemony throughout
late 19th, 20th and now 21st
centuries, initially with the provision of weaponry to the likes of
Feudal Japan. In the 1920s the provision of industrial equipment to
create new economies for both devastated and emergent foreign
economies. In the 1930s deployment of Detroit's finest to aid foreign
policy, from Buicks to Indian Maharajahs to the consolidation and
re-financing of Germany's and Australia's local players.
Post WW2 in the
mid-late 1940s along with remaining Jeeps, many other US cars often
driven by the officers of its victorious forces both provided the
American dream for often dissolute populations. In the 1950s those
cars reverse engineered as inspirational engineering benchmarks, with
the help of Deming's teachings, to create high quality indigenous
industries. By the the mid 1960s politicians saw the advantages of
opening the US market to increasing imports – the majority from
Japan vs poorer quality mass-European cars – and coming into their
own as cost-effective vehicles during the 1970s. The early 1980s saw
the beginning of the trend for 'trans-plants' such as the initial
NUMMI factory, whilst that same decade also saw a break-through in
US-China relations with Beijing Jeep. With the early 1990s came
increasing co-creation of S.Korea's modern auto-sector. And the first
decade of the 2000s, after the dot-com collapse, saw the NYSE as
deployed as a powerful global-reach investment channel for both
domestic and foreign producers.
Thus, to date any
discussion regards the global automotive arena inevitably involves
the soft-power interaction of the USA; today moved on from the
application of basic engineering knowledge and hardware onto
provision of exotic lightweight materials and increasingly
intelligent software.
However, the other very
important soft-power topic is the manner in which the US is able to
leverage its global media reach, so able to partly mould mass
mindsets regards auto-culture. From the output of Disney-Pixar's
animation suites in Emeryville Northern-California directed toward
youngsters but also influencing parents, to that of the physical
production capabilities of Burbank Mid-California, directed at the
“17 to 75” age range.
The Commercial
Imperative of 'Californiacation' -
As seen in Part 2, it
appears that an ever strengthening centre of financial gravity has
surfaced within California regards acquisitions of 'the best of the
best', from both previous European owners and those from the USA's
Eastern Seaboard.
And as stated, this
trend – whether intended or not – echoes the spiralling of prices
across other art-forms. There are very probably those who partake as
a vainglorious exercise, to a small coterie of collectors who value
the kudos over the actual art-form.
However, whilst this
may true for some, as also shown, investment-auto-motives believes
this Californian collector centricism to also actually be much more,
with a far bigger macrocosm agenda assisting the West Coast economy,
yet delivered through the microcosm of the HNW individual and/or
their created Trusts and Foundations.
It is theorised that
the 'best of the best' Bugatti's, Voisin's, Ferrari's etc will be
made increasingly visible as 'objects d'art' and ultimately treated
as sculpted demi-gods, sat at the pinnacle of a culturally
inter-connected, multi-level 'hyper-realistic' automotive experience
that spans much of the length of California.
A created experience
that not only turns the wheels of commerce in its own right, but
creates tentacles which promote economic activity vertically and
laterally across the broad automotive American value chain.
[NB this will be
reviewed in the next web-log]
California's
International 'Soft Power' -
It seems inevitable
that presently the collections amassed, retained, restored and indeed
re-created to sell to possibly create a four part process of value
creation:
The reasons
investment-auto-motives believes is three-fold.
1. Creation of
California as an additional “car-centric” tourist destination for
the increasing number of Chinese, Indians, Asians and South
Americans.
The state obviously
presently operates as as both single tourist destination in its own
right and as a gateway to Nevada. State attractions span the 'high
brow' highland vineyards of Napa Valley to the 'low culture'
low-lands of Anaheim; whilst an inter-state experience can be had in
Las Vegas, including the mixed 'delights' of a miniaturised mock
Europe, general entertainment and gambling.
But since more than any
other state, California was evolved around the motor-car, with its
sprawling suburbs and freeways, it perhaps sees itself as the 21st
century spiritual home of the car, so would choose to create a broad
auto-cultural international visitor attraction base, served by the
mega-jumbo aeroplanes of today.
2. The seeds of such a
policy is evidenced by the corporate actions of various major global
auto-companies (see museums list) whereby they have sought to place
their own historic car collection footprint in California, by way of
satellite museums.
Thus 'transplanting'
consumer-centric “brand centres”, and effectively replaying the
“lift and shift” initiative seen before with manufacturing. All
adding to the aspirational element of such brands, reaching potential
buyers whilst they themselves are relaxed within in a seemingly
exotic and pleasant aspirational setting.
3. The
'Californiacation' of European masterpieces allows private, corporate
and public collections to more easily display and eventually dispose
of the cars; to the increasing number of uber-wealthy people located
in China, Asia and Latin America; possibly in the late 2020s and
beyond, having first engaged a generation of HNW young adults.
4. The
'Californiacation; of global auto-culture creates a centre-point by
which – now slowly being commercially revitalised in a 'neo' idiom–
the state creates an intelligent auto-cultural network in which the
once defined limits of Main Street (commercial) reality mixes with
the hyper-realism of (commercial) theme-parks assisted by the social
glue that is now cyber-space and the internet.
Vitally, the emergent
'Cali-Car' economic model will be recognised by EM academia,
businesses and governments who themselves might well wish to
replicate for their own needs.
So where as from the
Californian Port of Long Beach the US once shipped-out Model T Fords,
Buicks, Cadillacs and Jeeps to throughout the world, it could now
seek to replicate and transplant an yet arrived but evolving 21st
century auto-cultural commercial model.
The Pyramidal Market:
Top vs Middle vs Bottom -
As seen, the rare breed
classics will inevitably retain their seemingly sky-high valuations,
as they become increasingly considered masterpieces in their own
right.
The high prices of the
highest echelon set to be retained even when auction sales slow, as
an indirect result of increased demand perpetuated by US, UK and
Japanese 'easy-money' policies.
This possibly also set
to be seen elsewhere, though in smaller proportion, by EM central
banks at in response. To intentionally devalue EM currencies to
regain international competitiveness as a ploy to re-flate their own
economies. Critically, even the to date hawkish ECB – itself thus
far engaging necessary structural reform over prolific QE –
possibly having to likewise accommodate with moderate QE if such an
dovish EM environment occurs.
Hence, unlike middle
and mass classic car markets, themselves far truer markets in their
own right, the very limited top-tier may well have been doubly
boosted by the western financial crisis, first as a store for wealth,
second a beneficiary of QE formulated cash; thus creating conditions
for new high-figure 'market floors' under 'the best of the best'.
Further-down, into the
middle-tier of largely 1960s Aston Martin, Jaguar, Porsche, Mercedes
(et al) coupes and convertibles there seems likely to be maintained
pricing volatility. Partially because of regional variation in demand
and supply relative to any one the local economy, but also because of
what my be increased differentiation between 'A1' original vs well
restored vs average vs poor condition vehicles. Thus the “buy, buy”
mentality that had arisen looks set to dissipate.
[NB However, wealthy
current owners of poorer conditions cars may be tempted to have their
vehicles restored by the original company – this service offered by
Mercedes-Benz's 'Classic Centre ' in Irvine California, as previously
seen at Aston-Martin in Newport Pagnell and Ferrari in Modena, so
seeing the enlargement of in-house restoration serves].
But it is toward the
more everyday 'mass' of classic cars that pricing might be argued as
more proportionately over-blown. When items such as “clone”
motorsport Ford Escort Mexicos and RS Capris are UK advertised at
£30,000, not far off the values of original cars, then perhaps there
are signals of caution, perhaps the whole mass classic market
over-valued by 20--25%% in the current climate.
The reason being that
as the western world re-enters a more optimistic period of economic
growth, many of the alternative asset classes which were viewed and
used as cash safe havens will themselves be increasing liquidated as
owners seek to deploy that stored reserve into newly those
conventional economically correlated arenas, typically corporate
stocks and property.
This natural 'rotation'
will be of greater proportionate relevance and impact upon the
general classic car market than the other publicised supposed
rotation, that of institutions selling bonds for stocks.
Simply because the
origins of that classic car derived liquidity and bond and stock
liquidity is so different.
The stored value in
general classic cars is vitally dependent on auction price dynamics
and once these have shifted – as economically literate owners
recognise better cash deployment elsewhere (ie stocks) and any large
sell off has begun (which seems the case in the USA with no-reserve
good condition Muscle Cars) the market quickly reacts as other owners
seek to sell speedily, old hands recognising the snap dynamic.
Whereas the liquidity
for bonds and stocks has in this recent era been QE derived with less
incentive to rotate out of bonds into stocks as 'cheap' Central Bank
money helped inflate both arenas. Investors awaiting economic new
growth – as now appears the case – recognise that new stability
as so divest out of what have been popular alternative asset classes
(such as classic cars) back into the conventional mainstream so as to
enjoy western growth and renewed EM expansion.
California's “Best of
the Best” -
However, of importance
here, with reference to “Californiacation”, the fact is that “the
best of the best” is typically owned by high net worth people who
have reached a mature age and often fortunate to enjoy a life-space
consisting of freedom/choice.
They recognise that
additional happiness cannot be bought from additional funds, and may
seek to avoid the usual stresses generated from chasing yet more
money. So quite naturally preferring instead to enjoy their cars in
whatever form; privately or publicly, with recognition that their
cars still proffer themselves as nest-eggs, heirlooms and/or
philanthropic possibilities.
And the ultimate
motivation?
Beyond the inevitable
price increases which secure their interests, it would be good to
believe that such 'fortunate folk' foster an alternate viewpoint.
Whereby via such a purchase, money itself - and the often grubby
personal and corporate battles it may represent - is almost
immediately transformed into something of far greater meaning: a
piece of historical significance from an apex of when of where
industry met art.
Thus there may be
something in the wealthy collector's mindset by which they can act as
modern-day alchemists.
Conclusion -
It must be first stated
that whilst it may be viewed that the 'loss' of such cars from Europe
may well be a cultural concern, the fact is that the cars purchased
by US citizen collectors and shipped there – often decades ago -
were (presumably in most instances) done so completely legitimately.
Hence this is not a
call for any sort of artefact repatriation, so no political
head-butting over what may be described as cultural relics. The
collectors are able to as they wish with their possessions, and
should not be pressured otherwise.
Instead it is a call
for those 'stewards of yesteryear' to follow the lead of Ralph
Lauren; inasmuch as the willingness to further share such collection
with others in the world, to move beyond the collection's local
confines; as seen by the Lauren exhibition held in Paris in 2011.
That event will no doubt be seen as semi-commercial, as a synergistic
ploy between the fashion capital and the fashion house seeking ever
greater profile; but it at least highlighted the importance of such
entwined initiatives, which both adds glamour to a locale and
importantly draws the attention of the broader public, promotes the
cross-fertilisation of industries and importantly enthuses not just
the older generation, the eldest of whom might reminisce, but young
people too, who themselves are inspired.
Such arrangements
regard the similar wider availability of access to all important
collections would not only serve the educational interests of
numerous generations, but also serve to better knit together
European-US relations at this critical juncture of economic history.
A time when EM new luxury car production capabilities, though still
today ill-formed, are inevitably set to mature as such countries
deploy both their own hand-crafted capabilities and newly absorbed
technological competencies. Whilst mass manufacture will be endemic
to the BRICs and CIVETS, they will also not wish to follow the
Iranian course of remaining permanently stuck within a yesteryear
technology sphere with an ever slipping quality differential. Those
countries and others will wish to replicate leap-frog in the manner
similar to that of Hispano-Suiza achievement, in the then largely
industrial back-waters of Spain and Switzerland.
Thus, a time when the
creation of new forms of automotive beauty and technical excellence
are vitally necessary in order to ensure strengthened foundations of
a stronger and larger European and American luxury vehicle sectors.
One which may export
new creations described as “the best of the best”.
Moreover, and very
critically, such efforts will possibly dissuade current US collectors
from being tempted to sell-off the European master-pieces to the new
and diverse set of potential EM collectors. Which in turn would
disperse what are presently united collections. The result,
consequentially reduced cultural connections between the 'old
worlds', and very fragmented connections with the 'new worlds'.
This obviously not to
create a commercial iron curtain, with EM tours of such classics also
encouraged, simply to retain the cultural heritage, much in the same
way that EM countries are re-capturing their own artistic legacies.
But as a last word...
...if fortunate enough
to be able to purchase such cars, it should be done for the pleasure
they bring as not just artistic wonderments set in a museum or
travelling gallery, but as driven cars in their own right, on tours
and classic rallies; as inspiration for tomorrow's luxury goods. So
inspiration and not direct template, which does little to advance
wider industry, looking forward as some of the the early creators
did, followed by the masterpiece efforts of Ettore Bugatti, Gabriele
Voisin et al (and their forgotten artisans).
Presumably this is the
likewise mind-set seemingly evident in the creation of the Automotive
Foundations which describe the promotion of education and
stewardship. So great expectations to come.
For it is when such
cars are properly showcased, not just as an on-line image or video
drive that they bear the most relevance, and certainly not simply
stored-away as variant of financial financial instrument, awaiting
latter-day disposal.
