Opinion: RIP JIMS

The Johannesburg International Motor Show has been cancelled, causing much dismay and debate. But its cancellation should not have come as a surprise…

There’s much dust in the air following the announcement that the 2015 Johannesburg International Motor Show, or JIMS, for short, was cancelled. Petrolheads are understandably up in arms and some are even suggesting that the death of JIMS was symptomatic of the state of South Africa as a whole. Nonsense. Motor shows are dying all over the world and it's very easy to see why…

During the past decade and a half, I’ve been to most of these events, from Frankfurt to Detroit, Paris and Geneva, and even smaller ones such as Tokyo and Melbourne. Early in the “new” millennium they were jaw-dropping events for a petrolhead such as yours truly, a blur of celebrity infused reveals, spectacular stage displays, wining and dining and business class travel. But as the years went by and media houses started shifting their weight behind digital platforms and social media channels, the sheer extravagance of it all started to make less sense. As time went by and economic woes hit the automotive industry, the British Motor Show dwindled and Tokyo fell from its heady heights. Smaller events such as the Bologna and Melbourne motor shows died. On the other hand, the growth of the Chinese market resulted in a rapid rise in importance attached to shows staged there, but even then there are problems – this year the Shanghai show’s organisers have enforced a strict dress code on the models parading next to the cars, and kids can’t even come in through the doors!

It’s not entirely fair to blame it all on the Internet, however. There are several other factors at play; An article by the Financial Times last year suggests that the top seven car companies spend around $15 million (R180 million) on each of the three biggest international motor shows (Detroit, Geneva and Frankfurt/Paris). It’s not just a case of building a stand and sending some cars. Thousands of employees are involved behind the scenes and it is a logistical nightmare. Then there’s also the fact that the manufacturers want their wares to be seen by as many people as possible, so thousands of journalists have to be flown to these events and put up in decent hotels. Now keep in mind that most local distributors and manufacturers are tied to strict CI and quality guidelines by their international “motherships” and you can understand the pressure is on to not only impress show visitors, but also representatives from headquarters in Stuttgart, Detroit and Tokyo etc.

The cost of exhibiting at JIMS varied greatly in 2013 between the manufacturers/importers. One manufacturer was said to have spent R30 million, while a reasonably presentable stand cost around R6 million. Being at JIMS and trying to do it on the cheap is simply not good PR… The cost impacts directly on marketing budgets. Yes, for the big brands R10 million spent on JIMS is perhaps not the end of the world, but for smaller brands it represents the difference between having a presence on TV (as an example) or not, and in the longer term that is far more valuable than splashing the same money on two weeks in a single geographic location.

So, for the brands that are tied to going to JIMS whether they want to be there or not by their international headquarters, the news that the show has been cancelled will be welcome news. Of course, in some instances the “motherships” will assist with budget, but even when that is done the return on investment is very questionable.

But let’s get back to the traditional core function of motor shows – to showcase new models and inform (through the media) the world about upcoming technologies and launches. For the past ten years or so, the occasions on which a new product or concept had been sneaked onto a stand without anyone catching sight of it before the show, can be counted on one hand. Spy photography, leaked brochures and even teaser images by the car makers themselves have severely damaged the “surprise” element that was once such a given on these events. It could even be argued that the very nature of automotive development has become better suited to events such as the Las Vegas Consumer Electronics Show (CES).

Another issue (yes, there are many) is the competitive environment that a motor show represents. Why spend millions on making a show and dance about your new Lotus concept when fifteen minutes later, on the stand next to yours, Seat has Shakira shaking her booty next to a Leon. Fame is short-lived in this age of Twitter and Instagram. There’s simply far more value in allocating that JIMS budget to a marketing campaign that is targeted to a brand's specific audience.

So… what about the journalists? Is there value there? The reality is that most media houses are in trouble and that page allocations are dwindling. If you have only six pages to play with, then twenty big reveals at a motor show is going to be spread very thinly. Ironically, too, bloggers who are doing their work from their bedroom have a better chance of uploading pics and stories before the traditional journalists walk the halls… And the public show goers? Once more there are big question marks here. Yes, perhaps the numbers look impressive as a whole, but how many of them are kids? How many are just hoping to sit in a Ferrari (which is not allowed, anyway, even if there is one)? How many will steal your display cars’ badges and handbooks? (Yes, this is a real thing) How many will scratch your cars’ door pillars as they get in and out? How many have serious buying intent?

Having been on the manufacturer side I can vouch for the fact that most companies will try their best to come up with clever ways to secure leads for the local dealerships, or just to collect names and telephone numbers to follow up on. Unfortunately the reality is that very few “deals” happen as a consequence of a visit to a motor show. You are always likely to find a large number of (mostly male) enthusiasts in major cities that will take their kids to these events, but this number will also start to go down when the exotics are no longer on display – which has been the trend for years already. In my experience brands such as Porsche, Ferrari and Lamborghini are the reasons why the public come to these events, and when they’re not there the show visitor numbers will decline. You need drawcards at these events, it’s as simple as that. It’s unlikely people will travel and pay to see cars they can see at their local dealership for free.

Overall then, there’s increasingly little justification from a car company’s view to splashing on a presence at a motor show. R30 million can be used very effectively to drive actual sales rather than put up a fan fare for an audience which has no intent on buying. I’m generalising, of course, but in a recent industry trip and interviews with many of the car companies in South Africa, it was clear that JIMS had become “grudge purchase”, even for those who were committed to going.

As a petrolhead, I have some fantastic memories of the motor shows I had attended. When Tokyo was in its prime, it was a sci-fi paradise that gave a real glimpse of a (somewhat wacky) future. Nothing compares to the scale of the Frankfurt Motor Show and the sheer opulence of the Mercedes-Benz display. And Detroit? Well, quite frankly I found it quite awful, not helped by a horrible stench in the dreadful Cobo Center. JIMS, by the way, always compared well with the best, just on a smaller scale. We should be truly proud of the quality of the displays and shows that the locals put up at JIMS of years past. But it came at a cost.

RIP JIMS.

Any views or opinions expressed in this article are solely those of the author and do not represent those of Cars.co.za or its editorial content team.