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By on January 6, 2010

No, you're a towel... (courtesy:autoweek.com)

GM’s VP got a guest spot on Edmund’s Inside Line to promote his “to-do list for 2010.” The top two spots on the list are dedicated to Lutz’s resolution to “remain focused on the product above all else,” presumably because “stop repeating self” was cut by GM PR. But number three on Lutz’s list is of considerably more interest. Labeled “change minds,” Lutz uses the entry to defend the General’s “perception gap” hobbyhorse. You see, when GM accuses consumers of being too stupid to understand how great GM’s products are, they aren’t actually calling consumers stupid. In hopes of clearing up the confusion, Lutz does what any other savvy marketer would do: call the media stupid.

Let me digress for a moment and say that I’ve seen it written that GM’s marketing strategy is based on the fact that the consumer is too dumb to know what great vehicles it makes. I take huge issue with that. That’s an example of the media trying to ascribe some of the old GM arrogance where none exists.

(Read More…)

By on January 6, 2010

black on black

We have so many facets of VW history to cover, and in the inimitable randomness that defines CC, we’ll do it non-linearly (except for Honda). But the Passat (and that’s what I’m going to mostly call it) plays a very pivotal one. It marks the beginning of VW’s successful entry into the modern world of light, roomy FWD cars, and it presaged the Golf, the mother of its category. But before we give VW too much (any) credit for this brilliant car, let’s not forget that the Passat was nothing but an Audi 80 (US: Fox) with a sloping hatchback rear end. (Read More…)

By on January 6, 2010

After registering a 33% increase in sales for December 2009 (albeit with a rumored 35 percent fleet mix), Ford aren’t letting the grass grow under their feet. industry.bnet.com reports that GM and Ford are to announce the updated versions of their in-car communications systems. Ford announced first that their “Sync” system is turning more towards Apple for new applications, despite the system being developed with Microsoft. Naturally, Microsoft is free to develop Sync-like features for others car makers. Doug Vandagens, director of Ford’s Connected Services Solutions Organisation justified this move at a press conference by saying that many Apple iPhone customers are customising their phones with Apple, therefore, Ford had to follow that trend. A clear indication of Ford marketing to towards younger customers, with the Fiesta being pushed at young, trendy types. GM will have an announcement tonight about their updated GM OnStar.

(Read More…)

By on January 6, 2010

Incentives in core brands are the killer

Speaking to Bloomberg yesterday, GM Sales Boss Susan Docherty called December’s sales results “very encouraging.” Her argument: heavy fleet sales in December 2008 explain why December 09 results look worse by comparison. But spinning sales results as the product of conscious fleet percentage reductions is just one longstanding GM tradition that Docherty indulged in: talking points touting falling incentives and improved inventory weren’t far behind. None of which is necessarily indicative of a satisfactory performance. In fact, if you dissect the spin, it’s clear that what lies beneath is not nearly as attractive as the PR would have you believe.

(Read More…)

By on January 6, 2010

At the car wash. Picture courtesy carsuk.net

Here are some full year 2009 new car sales data as they have become available. Along with the source. Caution: Data as reliable as the source.

U.S.A.: down 21.2 percent – 10.4 million units
China: up 45 percent – 13.6 million units
Japan: down 9.3 percent – 4.6 million units
Australia: down 7.4 per cent– 937,328 units
Canada: down 10.7 percent – 1.46 million units i
India: up 18.7 percent– 1.43 million units
Brazil: up 11.35 percent – 3.14 million units
Turkey: up 12.77 percent – 557,126 units
Taiwan: up 28.3 percent – 294,423 units
Philippines: up 6.4 percent – 132,444 units
Russia: down 49 percent – 1,465,917 units

Austria: up 8.8 percent – 319,403 units
Belgium
: down 11.1 percent – 476,194 units
Denmark
: down 25.3 percent – 112,271 units
Finland
: down 35.2 percent – 90,574 units
France
: up 10.7 percent – 2,268,671 units
Germany
: up 23.2 percent – 3,807,175 units
Greece
: down 17.5 percent – 220,548 units
Ireland
: down 62.1 percent – 57,460 units
Italy
: down 0.2 percent – 2,158,010 units
Luxembourg
: down 9.7 percent – 47,265 units
Netherlands
: down 22.5 percent – 387,679 units
Portugal
: down 24.6 percent -160,996 units
Spain
: down 17.9 percent – 952,772 units
Sweden
: down 16.0 percent – 213,408 units
United Kingdom
: down 6.4 percent – 1,994,999 units
Iceland
: down 77.6 percent – 2,020 units
Norway
: down 10.8 percent – 98,675 units
Switzerland
: down 8.2 percent – 264,798 units
Bulgaria
: down 49.3 percent – 22,869 units
Czech Republic
: up 12.5 percent – 161,659 units
Estonia
: down 66.2 percent – 8,234 units
Hungary
: down 50.4 percent – 78,590 units
Latvia
: down 80.5 percent – 3,745 units
Lithuania
: down 67.4 percent – 7,003 units
Poland
: up 0.1 percent – 320,119 units
Romania
: down 59.4 percent – 115,979 units
Slovakia
: up 6.7 percent – 74,717 units
Slovenia
: down 18.7 percent – 55,712 units

European Union (EU15): up 0.9 percent – 13,267,425 units
EFTA
: down 10.5 percent – 365,493 units
EU15+EFTA
: up 0.5 percent – 13,632,918 units
EU (New Members):
down 26.6 percent – 848,627 units
European Union
: down 1.3 percent – 14,116,052 units
Total Europe (EU+EFTA):
down 1.6 percent – 14,481,545 units

(Read More…)

By on January 6, 2010

Spectralogy? (courtesy:wikimedia)

TTAC Commentator osnofla writes:

I have a 2000 Kia Spectra GS manual with about 97k miles on it and lately it’s been doing something really weird. I’m pretty sure it has to do with the clutch. When I upshift the engagement is very rough, especially below 3k rpm. It kind of lunges forward and stops and forward again then finally picks up roughly around 3k rpm and the rest of rev range is smooth. On top of this there is also the matter of the tightening the belt for the power steering because it squeals at full-lock and fixing the brakes because I’m pretty sure the rotors are warped and need new pads and shoes.

So actually my question is whether I should actually fix these things since — and I’m going out on limb here — the repairs probably cost more than the car is worth. I’m in grad school and will be for the next year. As a result, I have very little money to go out and get another car, though my parents said they could help me out if I really need it. I’m not really attached to this car at all even though I learned how to drive with it. I just don’t see that many options for my tastes: I like manny tranny wagons and hatchbacks. Should I use my parents money while I still can?

(Read More…)

By on January 6, 2010

What is that in stars? Bring me the formula! (courtesy:pickuptrucks.com)

The news coming out of India has been dominated by talk of the booming small car market, there’s another development which deserves some attention. The Economic Times of India reports that after two years of testing, India’s government is about to roll out a star rating system for (get this) fuel efficiency. The star rating system is voluntary for the first year, but starting next year the system becomes mandatory. The ET explains:

The proposed label will not only suggest the new car’s ideal mileage but also tell the buyer how the car performs compared to other models in the same category. The categories would be created on the basis of the vehicle’s weight. The best performer would be given 5 stars and the others would get fewer stars depending on their mileage. At the moment, sources in the government suggest not many cars are able to hit the top category.

Quick, someone bring me the forms I need to fill out to register my displeasure!

(Read More…)

By on January 6, 2010

The fourth or fifth oldest profession (courtesy:rootsweb.ancestry.com)

Drivers in Georgia were hit for the first time last Friday with a new tax on speeding tickets designed to raise between $25 and $30 million in annual revenue for the general fund. The plan was modeled on the driver responsibility taxes in states like Michigan, New Jersey, New York and Texas. A similar plan in Virginia was so unpopular that legislators repealed the tax within six months and refunded all of the money that had been collected under the program.

(Read More…)

By on January 5, 2010

And another  one. Picture courtesy nytimes.com

China’s mushrooming car market was flooded with by a tsunami of new cars in 2009, Xinhua reports via Gasgoo. A record 221 new models were introduced last year.

Auto sales in China are projected to have surged 44 percent to 13.5m units last year. Chinese automakers are expected to launch about 100 more new models in 2010.

By on January 5, 2010

Not a whole lot. Picture courtesy nocaptionneeded.com

2009 sales of light vehicles (cars and light trucks) in the United States came in at the bottom end of the estimates. Americans bought only 10.4m units, the lowest level in 27 years, Reuters reports.

America actually lost some 4 million cars. The United States scrapped 14m autos while buying only slightly over 10m last year. Cars on the road dropped to 246m from a record high of 250m in 2008, says a report to be released on Wednesday by the Earth Policy Institute (EPI), cited by Reuters.
(Read More…)

By on January 5, 2010

welcome to the time warp motel

By on January 5, 2010

(courtesy:Jalopnik.com)

Ok, so not every Saab owner made it to the “Save Saab” rally outside of GM’s headquarters today… but local Detroit businesses did report shortages of pipe tobacco, leather elbow patches and quirk. All kidding aside though, is there a better illustration of the blind passion that automobiles so relentlessly inspire? These folks had to know that 20-odd people with signs wouldn’t make a lick of difference to Saab’s fate, but dammit, they drove to Detroit anyway. From as far away as New Jersey, Kentucky and Iowa, no less. Somehow that makes the inevitable schadenfreude seem a little less satisfying.

By on January 5, 2010

Who'd have thunk it?

Good news for Elkhart, Indiana today, as The Detroit News reports that the Norwegian EV firm Th!nk has chosen the city for its $43.5m US production facility. The plant will have a production capacity of 20k units, once production ramps up from its 2011 start. By 2013, Th!nk says it will employ 415 workers who will build the firm’s City model, a two-seater which will initially cost nearly $40k before government tax breaks. The factory will receive some $17m in state and local tax breaks and incentives. Th!nk hopes to eventually reduce the cost of the City, which has a stated range of 112 miles and a top speed of 70 mph, to about $20k.
(Read More…)

By on January 5, 2010

Audi CMO Scott Keogh explains how diesel, racing and politics can be relevant to automotive marketing… as long as they’re approached in a different and unique way. Money quote at 3:10: “We clearly knew that a rational argument was not going to work in the marketplace.”

By on January 5, 2010

Honda's New Small Concept

Honda, Toyota, Ford, Chevy, Tata, Renault and Volkswagen are all gunning for India’s small car market, with a number of new models unveiled or featured at today’s India Auto Expo. Some, like the Renault ULC, or “Ultra Low Cost” car still haven’t been revealed. For a look at some of the competitors that are on the road or have just been unveiled, check out our gallery below. With Toyota and Volkswagen publicly aiming for ten percent market share (and others surely hoping for a similar performance), the competition couldn’t be more cutthroat.

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