Posts By: Edward Niedermeyer

By on August 30, 2010

The EPA, working with the Departments of Transportation and Energy, has come up with two potential fuel economy labels, aimed at addressing the challenges posed by new plug-in, and fuel cell vehicles. The EPA’s Gina McCarthy gives an overview on the two label styles in the video above, but the main difference appears to be that one label would give cars letter grades (from A+ to D) on their fuel efficiency and greenhouse as emissions, while the other… wouldn’t. Read more about the first label (with letter grades) here, and compare it to the second label here. Let us know what you think, and if you feel strongly enough, send your comments to the EPA here.

By on August 30, 2010

Despite the deep ties between his firm and Volkswagen, Ferry Porsche firmly believed that Porsches could only be Porsches if the company remained truly independent. “Independence,” he says in the video above, “has always been the attitude at Porsche.” But as the latest addition to the Volkswagen empire, tasked with developing mass-market architectures and planning Porsche-brand versions of the Audi Q5 and Volkswagen BlueSport, Porsche’s culture has little choice but to change. But will becoming a good team player within the VW-Audi-Seat-Skoda-Bentley-Lamborghini-Bugatti strategy kill off the spirit that made Porsche great? Or can cultural independence survive the VW takeover?

By on August 30, 2010

When Mazda’s next-generation Mazda5 debuts later this year, it will mark the high-water point for the brand’s Nagare design language. Named for a 2006 concept that first showed off the dramatically flowing (some might say overwrought) look, Nagare has not been a stunning success, and Mazda announced several months ago that the Mazda5 would be the last car to use the design language. At that time, Mazda said it intended to reposition itself as “The Japanese Alfa-Romeo,” but lines like that could mean literally anything.  Today, with the debut of the Mazda Shinari Concept, it’s clear that Mazda’s new look is headed in a far more conservative direction. In fact, to our eye, the sleek four-door looks quite a bit like the meeting point between the Tesla Model S and the Fisker Karma. In any case, it fits the “Japanese Alfa-Romeo” billing quite well. Plus, it doesn’t look like a deranged Pokemon. Now that’s progress!

By on August 27, 2010

Edmund’ Bill Visnic takes on the latest Harbour report, which finds North American auto plants running at an average of 58 percent capacity (even Europe, the global whipping boy for intractable auto overcapacity operates at an average 81 percent). Despite the recent downsizings across North America, the Harbour Report still estimates that 3.5m units of annual overcapacity remains in the US and Canadian auto manufacturing footprint, equivalent to 14 unneeded assembly plants. A rise in sales levels to the previous 15-16m mark could help the situation according to the report, but increased plant flexibility will be the factor that automakers can actually control. Even so, if 15-16m annual units don’t come soon, North America could be looking at more plant closures and job losses.

(Read More…)

By on August 27, 2010

We don’t just want it to be seen,” said Jeff Eggen, Ford’s car experiential marketing manager, speaking about the Fiesta’s appearance in “Diaries.” The idea is to “have a second element or a third element” rather than just a placement on a TV program, “where we can engage with the fans outside of the show with additional content

While AdAge raves over Ford’s “product placement plus” marketing scheme for the Fiesta, actual customers for the Mexican-built subcompact are starting to get testy. The Fiesta’s Facebook page is home to several customer complaints about slow delivery of Fiesta, and Ford has already sent out $50 Mastercard gift cards to waiting customers. But in the letter accompanying the gift cards, Ford blamed hurricanes for Fiesta delays… and it turns out there’s more to the story than that. The Freep reports that 6,000 Fiestas were delayed last week due what Ford’s Mark Fields calls “a part-quality issue.”
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By on August 27, 2010

The issue is it’s yet another brand. And given the fact we’re trying to allocate our resources to other areas that make the most sense, does it make sense to introduce another brand out there?

Kia Motors America product planning boss Orth Hedrick uses a rhetorical question to explain why the Korea-based automaker dropped its EcoDynamics sub-brand plans for the US market. The badge appears on European-market hybrid versions of the Forte, Cee’d and Sorento, and was planned as a global sub-brand. Instead, Kia is introducing many of the EcoDynamics components like low rolling resistance tires, electric power steering and more efficient alternators on some standard models, and will roll out a hybrid version of the next-generation Optima. With countless unnecessary brands and sub-brands littering the marketplace, Kia is smart to keep consumer focus on the Kia brand… especially in terms of associating it with good fuel economy. [via Wards Auto]

By on August 27, 2010

YNN reports that the Rochester, NY airport was closed for 50 minutes yesterday, when a hydrogen refueling station run by GM supplier Praxair was rocked by two giant explosions. Details of the explosion are still extremely sketchy, with YNN explaining only that

Monroe County Executive Maggie Brooks said it occurred during a tank exchange operation. Brooks said a driver from Praxair was doing the exchange when it appears that some type of arch occurred.

It’s not yet clear if GM’s Sequel hydrogen test fleet had been using the fueling station, but this is the most recent occurrence of the kind of disaster that has helped prevent the development of a large-scale hydrogen infrastructure. Two people were reportedly injured in the blast, but one can only imagine the result of such an explosion in a more urban environment, or in close proximity to a gasoline pumping station. The long awaited hydrogen future may have just slipped a little further out of reach…

By on August 27, 2010

From a week deep in our “How The Hell Did We Miss That” file comes a Reuters report that shows GM considered floating its IPO on the Hong Kong Hang Seng index. GM’s interest in a Hong Kong float has obvious roots: the company is extremely well-positioned in China, where high savings rates and the prospect of steady local sales growth could have helped bring in both private investors and GM’s partner firms. But according to a Reuters source, GM rejected the idea because it would have delayed the IPO past its Thanksgiving deadline

I don’t think signaling goodwill toward Asia is likely to be a significant enough argument for all the cost and complexity. I don’t want to overstate the cost and complexity but it’s not insignificant

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By on August 26, 2010

Since Mahindra doesn’t seem to be giving its self-destructed US distribution channel much attention, we couldn’t help but wonder what exactly is more important to the Indian firm than a little PR the world’s second [sigh] largest car market in the world. The answer, of course, is its acquisition of Ssangyong, a South Korean automaker known only to Americans as the maker of the legendarily ugly Rodius (to be fair, regular TTAC readers may also recall Ssangyong’s bid for world’s ugliest bankruptcy declaration). But the meeting point between Ssangyong and Mahindra isn’t styling, it’s diesel and four-wheel-drive.

Despite the fact that Ssangyong is still technically in receivership, there are still 25 dealers selling its products in Australia on the strength of the motto “We Live Diesel,” while Mahindra has 40 diesel-only Australian dealers. Recently Ssangyong revived the nameplate given to its original product, Korando, for a new model that reportedly launches in Australia later this year. Looking at the evolution of the Korando, from original CJ7 clone to the forthcoming model (which reportedly boasts a 174 hp, 337 lb-ft “German-designed” diesel engine, and available FWD or AWD), one can’t help but wonder where Mahindra sees itself going.

(Read More…)

By on August 26, 2010

Just days after Mahindra’s diesel-powered compact pickups were approved by the EPA for sale in the US, the Indian automaker apparently canceled its distributor agreement with Global Vehicles according to the message above that was posted to Mahindra’s Media site. Global Vehicles has had a deal to distribute Mahindra pickup and SUV models in the US since 2006, and has signed up 350 dealers to sell the Indian imports. Recently cracks in the relationship surfaced when GV sued Mahindra alleging that the manufacturer was delaying homologation for the US market. GV claims to have spent $35m preparing for Mahindra’s US launch, and dealers were said to have paid $200k apiece to obtain franchises. Meanwhile, Automotive News [sub] notes

The statement by Mahindra hangs a question mark over the 300 to 350 U.S. retailers who have signed franchise agreements directly with Global Vehicles, if the Alpharetta, Ga., company no longer is the distributor.

Nor is it clear that Mahindra has the power to terminate the agreement without a court fight.

By on August 26, 2010


Edmunds is tracking an $1,800 average increase in the price of used cars, as new-car sales have faltered with the shaky economy. But the increase in prices isn’t solely due to Americans tightening their belts and buying used instead of new. The biggest price increases by nameplate appear to be for large SUVs and vans like the Cadillac Escalade, Chevy Suburban, Dodge Grand Caravan, BMW X5 and Acura MDX. Edmunds senior analyst Joe Spina explains

So many economic factors affect automobile sales and prices. It’s believed that the program delayed purchases prior to the program and also pulled sales forward while in place. The program also eliminated inventory of older vehicles that were traded and then scrapped… Now, those who need trucks and large SUVs are buying them and in many cases are turning to used vehicles as a way to save money. Prices are high because this demand comes at a time when inventory is low as a result of the current shortage of lease returns and trade-ins for vehicles of this type.

Edmunds’ “Large SUV” segment shows prices up by nearly $7k per vehicle (over July 2009), compared to increases of less than $500 per vehicle for midsize and compact cars over the same period. Gas prices, meanwhile, are nearly unchanged from July of last year. Clearly something is affecting the price of used SUVs… if it’s not Cash-For-Clunkers, what is it?

By on August 26, 2010

Nissan was the fifth best-selling brand in the first half of 2010, but with nine new model rollouts planned for the next two years it’s looking for something its marketing team calls “breaking the mold” improvement. To do that, Nissan is leading its product blitz with distinctive products like the Leaf EV and the Juke “sportcross,” but it’s also working to bring more attention to its brand as well as its vehicles. Marketing boss Jon Brancheau explains the problem to AdAge

If you look back over the course of the last 18 months at our creative, a lot of it has been focused on individual models and there hasn’t been an overarching idea that held everything together, laddering to Nissan. That’s what’s different about this work. It’s focused on the vehicle lines supporting the Nissan brand rather than just focusing on individual launch activity. The Leaf is the most recent example to believe that Nissan is an innovative company and that’s how we want to transmit our message to consumers, we want to turn it around a little bit — Nissan is the brand, and here’s the reason you should believe in it.

Unfortunately, the vehicle for Nissan’s latest bid at brand awareness is based on the tagline “Innovation For All,” a bon mot that is unfortunately reminiscent of the ill-fated Chevrolet tagline “Excellence For Everyone.” For a brand that is respected by many but loved by few, that’s a dangerously vague approach to a marketing push, and it hardly seems like the message to propel Nissan out of its perennial also-ran status. On the other hand, it’s tough to put a finger on what exactly Nissan should stand for because it’s brand has almost always been poorly differentiated in this market. So we’re curious: what does the Nissan brand mean to you, and what are the strengths it should build on as it seeks to improve brand awareness? Or are they on the right track already?

By on August 26, 2010

Opposition to the Ethanol industry’s push to allow gasoline blends with up to 15 percent ethanol is coming together this week, as a massive coalition of interest groups calls for congressional hearings on the EPA’s pending E15 decision [via PRNewswire]. The Alliance of Automobile Manufacturers and Association of International Automobile Manufacturers joined 37 other groups, ranging from the National Resources Defense Council to the Outdoor Power Equipment and Engine Service Association, in calling on congressional energy committees to take up the issue.

(Read More…)

By on August 26, 2010

For the last two years, more Americans have seen the auto industry in a negative light than positive, as layoffs, bankruptcies, bailouts and energy price volatility have piled on the bad news. Now, according to the latest Gallup polling, those perceptions are starting to swing back around. The industry once again scores more favorable impressions than negative, although its 39 percent favorable is only as good as its 2006 level. Meanwhile, negative impressions are up four points from ’06, at 36 percent, and the industry is perceived less positively than industries like “Sports,” Publishing and Accounting . This indicates that, although the worst PR of the bailout-era is behind the industry, it’s still battling a long-term erosion in favorable impressions, as well as significantly higher unfavorable ratings. The momentum may have turned, but automakers still aren’t winning the PR war.

By on August 25, 2010

The enthusiasm for the Fiat coming to the market has diminished. At first, it was something that would be mixed in… now [Fiat-Chrysler is] going to have to present a compelling story and product to back me investing at least $1 million to build a new showroom

Everyone loves the Fiat 500, but Chrysler’s dealers aren’t exactly thrilled that they have to build brand new showrooms to sell the Italian (er, Mexican) subcompact, as witnessed by the quote above in the WSJ [sub]. Another dealer adds that he knows enough troubled MINI and Smart stores to be spooked by the prospect of dropping hundreds of thousands of dollars on what will clearly be a niche offering. Yet another calls it an “excellent opportunity,” but Chrysler needs to find 200 qualified dealers to make Fiat’s American adventure a reality. The credit and car markets, gas prices and Fiat’s less-than-stellar American-market legacy all conspire against the scheme. To say nothing of the poor historical precedents for Chrysler’s ballooning brand portfolio. But as usual, CEO Sergio Marchionne has it all figured out…

(Read More…)

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