Reviewing the latest sports car options

Looks aren't everything. And neither is sheer power. When it comes to successfully making - and marketing - a sports car, there is a nearly limitless list of intangibles that separates the winners from the losers.

Consider the Porsche 911, the bestselling model in its category since the category was born. What sets it apart from the competition? With a base price of just over $90,000, the newest 911 can fairly be called a mid-range luxury sports car. (The company's new Boxster lists at about $44,000, while the top-end Carrera GT will set you back about 10 times as much.)

By all accounts, the 911 is simply a great automobile: fast, dependable, easy on the eye. But the same can be said of many of the also-rans in the same category. What sets Porsche apart is what defines success in the category: great branding. Porsche had the good fortune to be one of the first in the sector - the 911 is more than 40 years old - and its unique lines quickly came to define a certain kind of aspirational lifestyle.

Unlike some other brands - notably Jaguar, which Ford, so far, has failed to turn into a consistent moneymaker - Porsche has kept its eyes on the prize and its message consistent. (And ensuring quality hasn't hurt, either.)

Sports cars, of course, aren't one of life's necessities. They're impractical, gas-guzzling and expensive. They make no sense for families, and can almost never legally be pushed to their limits. Some dismiss the sports car as the manifestation of a midlife crisis; an oversized ego; as little more than a child's toy at very adult prices.

But that's exactly the point, and explains at least partly why Porsche is set to exceed 1 billion euros in profit for the first time in its history. Great sports cars, like the Porsche 911, are thrilling to drive, and to admire. When the world is replete with worry, they are the ultimate escape.

Traditionally, a sports car is regarded as a two-seater, two-door vehicle designed for performance - a mix of speed, manoeuvrability and acceleration, with responsive handling that provides a rewarding challenge for a skilled driver.

Today, the boundaries of what constitutes a sports car have stretched. Sports drivers still expect speed, a thrilling ride and great handling - but they also demand comfort and practicality.

Trickle down

Whereas sports cars once awarded drivers for skill and ability, modern sports cars are more forgiving with technologies that overcome driver inadequacies and mistakes. Sports models have also grown in importance, acting as ambassadors for the values at the heart of a car manufacturer's brand.

Sports cars introduce new engine technologies, suspension tricks or breaking novelties that in time trickle down into other models. Many of the technologies that appear in sports models are derived from race roots, and racing heritage is something that manufacturers strive to communicate in marketing efforts and build into sports model design.

Andy Gawthorpe, Middle East managing director for Jaguar and Land Rover, says Jaguar has been defined by its sports cars throughout its history - in 1948 when the original XK was launched, then in 1961 with the E-type (or XKE), and then in 1996 with the current XK8 and XKR range. He hails the current Jaguar model lineup: X-Type, S-Type, XK Coupe and the flagship XJ model.

Performance options enable S-Type, XJ and XK model customers to have dynamic engine, exterior and interior enhancements that give Jaguar vehicles a sportier look and a supercharged 400 bhp engine. The Jaguar XK model - priced at about $70,000 - is available in a coupe and convertible version. Jaguar has also just launched its new S-Type model which has been redesigned with bold, distinctive styling and sporting dynamics.

'The car is more aggressive looking with beautiful styling,' says Gawthorpe. Despite the brand's recent slide - mostly due to a misplaced mass-marketing campaign and lingering quality issues - Jaguar remains poised for a rebound. Industry analysts say that the new models expected in 2006-07 will be crucial for the brand's turnaround.

With Nissan's 350Z, the Japanese company has dipped back into its own racing past as part of its ongoing global revival. 'The Z sports car dramatically epitomizes the renewal of the Nissan brand,' says Carlos Ghosn, the CEO of Nissan.

The 350Z inherits DNA from the three generations of Z Car before it. Lessons learned on the race track with the R390 Le Mans racer and competition versions of the Skyline GT-R have contributed to the 350Z attaining class-leading levels of performance, handling and road holding.

With an estimated base price of just over $27,000 and early rave reviews, the new 350Z Roadster looks like a winner. Some manufacturers apply specialist engineering to already sports capable vehicles.

For instance, BMW provides customized sports enhancements through its M3 models. The BMW M3 CSL is a lightweight coupe, boasting acceleration from 0-100 kilometers per hour (km/h) in 4.9 seconds. In common with other BMW models, top speed is limited electronically to 250 km/h.

Analysts say that the company should do very well with both its new 6 Series and the Z4, which recalls the styling of the Boxster. Tight margins. While the global market for sports cars is passing through a period of uncertainty, the Gulf is poised for rapid growth - for an obvious reason.

With oil prices spiking past $50 per barrel, the region is swimming in wealth. And for automakers, now more than ever, even a relatively small market like the Gulf region counts.

Why? Because margins have been getting tighter and tighter - shrinking from over 20 percent when the industry was born in the 1920s to about 10 percent in the 1960s to less than five percent right now.

'The Middle East is an exciting market that is growing at a phenomenal rate, in particular in the car industry,' says Gawthorpe. New car growth is expected to grow around 50 percent over the next decade. Jaguar's regional results for 2003 increased by 24.4 percent and its first quarter results for 2004 were up 16 percent.

'The premium sector of the automotive market is clearly very strong throughout the Gulf region,' says Gawthorpe. 'This leads both manufacturers and dealers alike to develop product and services for this sector of the market.'

'Both manufacturers and dealers determine competitiveness in the sports car segment in the region,' says Nibal Slim, marketing manager at Nissan Middle East FZE.

The former in delivering models that meet the local demand in terms of special features and specifications requirements, as well as providing the dealers' network with the right marketing and after-sales support to reach the target customer.

The latter influence competitiveness by providing the best in personalized customer-relationship management and services. For BMW Group, all models in the first five months of the year witnessed nine percent growth.

'We launched the new 6 Series in February this year and the response has been absolutely great,' says Guenther Seemann, the managing director of BMW Group Middle East.

'At BMW Group, we concentrate on what we do best - our strength is in being 'premium,'' says Seemann. 'This means we are particularly successful because we are focused on offering customers authentic premium products - products that are characterized by emotion, uncompromising engineering, innovative technology and features, as well as supreme quality. For the BMW Group importers across the region, the competitive edge lies in delivering the highest standards of service, in turn ensuring that customer care and satisfaction are continuously exceeded.'

Fine lines

Seemann makes a good point. One of the great mistakes that some makers have made is by diluting their exclusivity - while that will never be a problem for supercar makers like Ferrari, lower-end makers must tread a fine line between broadening their base offerings, increasing sales and weakening their brand image.

Consider Cadillac, whose repositioning strategy risked alienating its core of older, more conservative buyers. An aggressive redesign - including the introduction of far more muscular models - appears to have worked well, at least in part because the brand was not devalued in the process.

And it's worth adding that for a brand usually associated with the over-60 set, Cadillac is producing solid results in the sports car category. The latest XLR, priced at $76,000 and with a new blue-steel look, should prove tough competition for the likes of the SL500.

Gawthorpe says a buyer should take into consideration brand, performance, engine and interior/exterior variations when selecting a sports car. Jaguar buyers seek out style, luxury, comfort and performance.

'There are few greater luxuries in life than driving a truly luxurious car with phenomenal performance and control at your fingertips,' says Gawthorpe. 'In this region, customers want to have the best and are prepared to pay for the best,' says Seemann.

'Customers in the region have discerning tastes, high disposable incomes and a passion for innovative technologies.' Carmakers targeting the sports and premium market often use limited editions to enhance desirability.

'Limited editions are targeted at sub-segments of the market and are naturally limited in numbers and highly exclusive,' says Gawthorpe. 'Arab consumers want and know the best, and enjoy the sense of exclusivity that premium brands such as Jaguar have to offer.'

Quite simply, the luxury buyer does not want to own the same vehicle as everyone else on the road. In response to this market need, BMW offers its BMW Individual Program in the region, which allows customers to customize their cars, whether paintwork, upholstery and trim, or high-tech solutions.

BMW Individual specializes in implementing uniquely customized designs. BMW also offers limited-edition models in the Gulf market. For instance in 2003, it launched the BMW X5 'Elie Saab Limited Edition,' which came in two unique exterior and interior color combinations mirroring fashion designer Elie Saab's latest bridal collection.

One hundred X5 vehicles were produced - exclusively for the Middle East region - under the theme of the 'perfect marriage of luxury and exclusivity.' Meanwhile, the Elie Saab special edition features the classic 'bride and groom' color combinations; white body color with white leather interior, and black body color with white leather interior.

Special features include a DVD system with two 6.5-inch monitors integrated into the backrest of the front seats, black wood trim, plush black carpet and black roof lining, in addition to an elegant chrome plaque with the inscription 'Elie Saab Limited Edition.'

The intensity of heat in the Middle East presents particular challenges for vehicle comfort and performance. For instance, air conditioning needs to be more robust than that required in most other parts of the world.

On target

The 350Z was developed to be Nissan's global flagship sports car from the outset. 'A number of small but significant adaptations have been made to tailor the Middle East 350Z to local conditions,' says Slim. The Arab customer looks for certain criteria when choosing a sports car.

Thus the Z met with stringent performance targets for high-speed stability and cornering, achieved through revised cooling and suspension tuning. He adds that Middle East owners use their cars often, so ride comfort and noise and vibration harshness are issues.

The Middle Eastern Z features a revised, more sophisticated suspension, which balances ride comfort with advanced handling. As well as adopting some optional features as standard - including Brembo brakes and full aero package comprising front and rear spoilers, under body deflectors and diffusers to control the air flow under the car - one principal difference of the Middle Eastern Z is the fitting of a larger radiator for enhanced engine cooling.

Worldwide, for BMW and Mini vehicles, the company gives a 12-year warranty against rust-through corrosion and three years for paint. 'In addition to this, the vehicles being offered for sale in this region are special 'Gulf versions,' sometimes referred to as the GCC version,' says Seemann.

'This represents the implementation of a list of required modifications formulated and agreed upon by the six members of the GCC to make sure the product suits the environmental conditions of the Middle East.'

Areas covered by the modifications include, among others, the cooling system and the cooling of lubricant for major components. A sports car is only as good as the driver at its wheel. In order to enhance driver enjoyment of the vehicle and to enhance safety, carmakers and fleet buyers can offer driver skills classes.

Gawthorpe says Jaguar does not currently have a facility dedicated to developing sports driving skills, but drivers wishing to explore the full potential of their sports vehicles may soon make use of facilities such as Dubai Autodrome, which is under construction in the emirate.

An initiative launched at the end of March by Union Properties, Dubai Autodrome will have 5.4 kilometer international FIA-standard circuits, multipurpose grandstands with hospitality suites, pit lane and media complex, plus go-karts and bike tracks.

Complimented by a business park, the complex features corporate offices, hotels, driving training centers, dining and retail outlets, as well as conference venues.

Dubai Autodrome will also be available to manufacturers and racing teams for winter testing, prototype development work, vehicle demonstrations, product launches, driver training, a racing academy, and hot weather car research for international manufacturers.

It will also host local racing events with a view to developing local driving talent and encouraging UAE nationals to take up car racing. The global automotive market is reported and studied in great detail by consumers, press and manufacturers.

For Jaguar, Gawthorpe says this global information informs product development teams in Britain who track consumer, fashion and automotive trends, and to develop forward product plans that reflect views of the future opportunities.

'Of course, all future product plans for Jaguar are inspired by our brand identity and commitment to develop beautiful sports cars,' he says.

Highlighting this commitment, Jaguar recently revealed the compact Coupe R-D6 concept car and the Concept Eight XJ model. Although they are not intended to go into production, they embody themes and design that will be included in future Jaguars.

'It is a vision of the future of premium motoring: beautiful, fast, agile, efficient and fun,' says Jaguar's director of design Ian Callum. Sports cars play an important role in communicating the manufacturer's brand ideals and aspirations to the marketplace.

'The 350Z as Nissan's 'halo' model is the embodiment of Nissan's brand identity, and it's launched to increase qualified showroom traffic and generate incremental sales of all Nissan models,' says Slim. The vehicle has a top speed of 250 km/h with acceleration from 0-100 km/h in 5.9 seconds. Slim says Nissan design is based on four pillars: design, driving pleasure, comfort and IT.

'When it comes to sports cars, Nissan looks at creating a car that looks the way it drives and drives the way it looks,' he says. The 350Z has won awards for its design sportiness, which Slim attributes to 'organic beauty with mechanical detail.'

High performance

When designing the 350Z, Nissan wanted to deliver a driving experience to the general public in a volume that was accessible to anyone.

'The 350Z not only embraces driver-oriented technologies originally developed on the race track, but also delivers the high performance expected of a true sports car,' says Slim.

For BMW, in taking new product decisions, the company focuses on the following key questions: Will our brands remain authentic? Does the new product fit the brand? Is it emotional? Are we able to offer our customers a 100 percent solution? And, of course: Are these products profitable?

'We only add a new product to our range if we are able to answer these questions with a clear 'Yes,'' says Seemann. Of course, any company - and not just automakers - should ask these questions about their brands. But considering that purchasing a sports car is among the largest investments that anyone will make, the stakes are extraordinarily high.

Worldwide and across the Gulf, dozens of great brands are competing for market share and the hearts and imaginations of consumers. Just as important, though, is the reception of these brands by those who will never be able to afford to own their own Ferrari, Porsche or Mustang.

Call it the parking lot test: if you want to spot the surefire winners, time exactly how long passersby stop and stare at the car in question - then look for that faraway, dreamy gaze as they picture themselves behind the wheel. Because that's what the very best brands do: They capture the imagination.