I had the pleasure of spending part of a dinner at last week’s Volt press launch chatting with GM’s marketing honcho Joel Ewanick, better known for his work as “marketer of the year” at Hyundai. Ewanick’s a confident, engaging guy, and when the “Don’t Call It Chevy” mini-embroglio came up over desert, his eyes took on a mischievous twinkle. As other GM communications and PR staff recounted their stories of the 24-hour madness that followed the release of a memo which indicated that the term “Chevy” was no longer a welcome marketing feature, it became clear that neither Ewanick nor any of his staff had any regrets about accidentally launching a full-blown public debate over the value of the term Chevy. The very debate, it seems, reconnected the brand that had tried everything marketing-wise with its hidden core: consumers care enough about Chevrolet to have a popular and affectionate nickname for it. And what started as an unnecessary PR blunder seems to have given birth to Chevrolet’s newest marketing tagline: Chevy Runs Deep. Or, as Chevy’s ad man Jeff Goodby puts it
It’s such a deep, wide, connected brand in America. All things being equal, Americans want to buy Chevys. And we have to put them in that position
With Mercury going the way of Olds and Pontiac, Ford has made much of its intentions to turn its struggling Lincoln brand around. Ford has promised a $2b investment in Lincoln’s product line, and is pushing for the closure of 200 or so Lincoln dealers in order to concentrate the brand’s weak sales at its most successful dealers. But that’s not all. Ford is requiring the surviving Lincoln dealerships to invest heavily, as much as $2m per store, to stay on board the Lincoln Revival Express. But, according to Automotive News [sub], the Lincoln dealers are starting to wonder if they’re being asked for too much. One dealer tells the industry paper
They told us there would be no new products for about 24 months. I don’t know how the stand-alone Lincoln dealers are going to make it, especially those dealers who have to spend $2 million on their upgrades.
Ford has offered several Lincoln stores between $300k and $1.5m to give up ideally-located franchises that they refused to upgrade, but it seems that few dealers are simply rolling over. In fact, the dealer who was offered $1.5m rejected Ford’s offer, calling it “very low” for his profitable franchise. And that’s the polite response. A dealer who was offered less tells AN
“Insulted” isn’t a harmful enough word to describe it. It’s asinine. I’m getting my numbers together and going back. I’m not going to accept this.
Ford, for its part, says the “status quo is not an option,” a position that puts the factory and dealers in place for a nice round of brutal negotiations. And since Ford lacks to the tools to force its entire network to update, it will either have to pay up or live with at least a few remnants of the status quo. And as long as Lincoln’s products remain largely status quo, that’s probably the way it should be.
Having been handed a bankruptcy-rinsed Chrysler by the American government, Fiat’s Canadian-born CEO Sergio Marchionne is beginning to see Italy as nothing more than aging, uncompetitive factories and troublesome unions. And now he’s not just telling the Italian media that not only would Fiat be better off without the country that birthed it. According to Reuters
The CEO added that not a single euro of the 2 billion euros ($2.8 billion) of trading profit that Fiat is targeting for 2010 will come from Italy, where all Fiat car passenger plants are loss-making.
The funny part: Chrysler still holds a value of precisely zero dollars on Fiat’s balance book. And with the Fiat and Alfa-Romeo brands headed to the US, Italian-ness is still an important element of Fiat’s identity. But until Marchionne’s Chrysler revival and Italian invasion take hold stateside, and as long as mother Italia is a drain on its resources, Fiat might be best described as a Brazilian company.
Italian speakers can enjoy Marhionne’s interview here.
TTAC’s Michael Karesh inspired a good deal of jealousy in his Editor-in-Chief a few nights ago by describing his forthcoming RX-8 roadtrip into the hill country along the Blue Ridge Parkway. A zinging rotary engine in a legendarily well-sorted chassis simply screams (literally) for these kinds of driving adventures, and I’d be lying if I said I didn’t briefly donsider ditching my editorial responsibilities and inviting myself along. After all, the RX-8 has been marked for death in Europe and the USA, thanks to the glorious amounts of C02 emitted by its rev-happy rotary mill. This, I thought, is a truly unique car with an engine that might well never be seen again in civilized auto markets. Best to enjoy one while you can, right?
It may not be the most pragmatic approach for a tiny automaker facing independence in a scary-competitive global market, but dammit, you have to respect Mazda’s dedication.
Speaking of confused advertising directions, BMW and its US-market ad agency GSD&M Idea City have parted ways according to Automotive News [sub]. GSD&M was responsible for the poorly-received “Joy” campaign, which BMW had adopted as a global campaign. And according to the report, BMW didn’t call off the relationship. The ad team pulled the plug because
Relationships are no longer strong with the marketing team, particularly in the wake of [BMW USA marketing boss Jack] Pitney’s death; the agency wasn’t making enough money on the account; and there wasn’t an opportunity to do the kind of work the agency had hoped to undertake.
Here’s hoping a new team helps BMW get its advertising mojo back. With Cadillac’s CTS-V going after the German sports sedan jugular with one of the best ads of the year, and luxury competition heating up in the US market, this is not a moment to get caught napping.
As we’ve noted before, Hyundai and Kia have been quick to exploit the weakness of the domestic auto industry by advertising their American-made cars as American-made cars. Now, they’re taking the attack to a whole new level, as Hyundai USA President John Krafcik tells CNN Money that his brand will build 80 percent of its vehicles in the United States by next year. If the Korean brand can actually achieve that goal, it would make Hyundai’s lineup the most American-built full line on the market. And though he insists that Hyundai doesn’t make decisions about production based on PR, Krafcik can’t help but twist the knife, saying
I’m going to build my three best selling cars in the US. Ford builds its best selling car in Mexico.
Scientific studies are all well and good, but sometimes the simplest studies can provide the most fascinating insights. Take, for example, the recent series at Autosavant entitled “Brand Awareness? It’s Elementary” (part two here). The study was inspired by a simple question: if you ask kids to name their favorite car, what kind of results will you get? Their answers reflect not only the power of automotive brands in popular culture, but also the basic level of automotive competency of the next generation of gearheads. Somewhat shockingly, not a single kid appears to have answered “Bumblebee.”
Executives at GM Europe were reportedly outraged when “Mr Opel” jumped ship to arch-rival VW, after the Wolfsburg boys entered an alliance with Suzuki. After all, Demant had been instrumental in developing the Opel Agila, a rebadge of the Suzuki Splash built in Hungary. Since Demant’s departure, Opel has left the Agila to the wolves, saying it would develop an all-new “premium” city car, to take on VW’s Up head-on. VW’s response: deciding that its Euro-focused Up was too expensive for the booming Indian market, and announcing to Autocar that instead it would… rebadge Suzukis. The Suzuki Alto (aka Maruti Suzuki A-Star aka Suzuki Celerio, aka Nissan Pixo) will form the basis of an entry level Indian VW, while the Suzuki Wagon R will underpin an Indian Skoda model. Because nothing builds a global brand like a good rebadge (just ask GM). Sounds like Demant should be pulling a paycheck from Suzuki as well as from VW.
Built on GM’s “Theta Premium” chassis alongside its Cadillac SRX sister in Ramos Arizpe, Mexico, the Saab 9-4X crossover is less than completely Swedish but more than just a rebadged SRX. Specifically, at a base curb weight of 4,431 lbs (with GM’s 3 liter V6 driving the front wheels), it’s over 200 lbs more crossover than a base SRX.
If Aston can rebadge a Toyota city car, why shouldn’t VW let Bugatti or Lamborghini make its own “yach tender” version of this forthcoming VW Up? In addition to VW, Seat, and Skoda versions, VW has already said that even Audi will get a crack at this boxy wee beastie… so why not shoot the moon with a Bugatti Petit Sport Sang de Navet?
Aston Martin’s decision to sell a worked-over Toyota iQ has raised some serious questions for “brand values” advocates across the internet of late. Does an aristocratic sportscar brand need to take on the problems of urban congestion and carbon intensity? Does the Cygnet’s noblesse oblige PR value outweigh the furor of countless Aston Martin aspirants at the thought of their beloved brand becoming a glorified Toyota tuner house? The answer to both of these questions is apparently yes… Read More >
Chrysler has taken advantage of the kerfluffle over GM’s Volt to release the first full images of its most important car to date: the Chrysler 200, or the artist formerly known as the Sebring. As with the Volt, we’re not entirely convinced it’s as revolutionary as Chrysler’s making it out to be, but we’ll obviously wait for a test drive to reach a definitive conclusion. Meanwhile, the 200’s design has more than a few hints of Sebring about it (and that’s without a proper side-on view), although the overall effect is of a much-cleaned-up car. It’s not distinctive in a way that’s going to instantly win over skeptics, and Chrysler’s midsize sales probably won’t improve until reliability and resale data shows real signs of improving, but the journey of a thousand miles begins with a single step. Given what Chrysler was working with, namely the least competitive car in its segment, this 200 is shaping out quite nicely as a first, tentative step towards viability.
A longtime critique of General Motors here at TTAC is that it needs to pick enduringly appealing names for its products and stick to them, instead of shuffling through some eighty nameplates for midsize and smaller cars since Toyota introduced the Corolla. Still, this approach doesn’t advocate simply freezing time, and calling every compact Chevy a Cruze from here to eternity. If you’re going to stick with a name, it has to be good, and it has to mean something.
Enter the Aveo, which is about to be replaced by another Daewoo-developed hatchback (made in the US this time), but should (if GM can be believed) represent an improvement over the unlovable outgoing model.GM’s North American supremo Mark Reuss is still wavering on the name, refusing to commit to Aveo, but unwilling to suggest an alternative nameplate. Which brings us to today’s question: is it nobler for the car to suffer the slings and arrows of outrageously poor associations with the name Aveo? Or should GM put the name to sleep, perchance to dream up a better, more enduring one? Is consistency good even if it means keeping one of the most maligned nameplates this side of “Sebring”? Aye, there’s the rub.
I believe that, legally, I’m still their U.S. distributor. And I want trucks delivered to our dealers
Importing niche vehicles from an unknown foreign automaker has long been a fraught process for US-based entrepreneurs, and John Perez’s attempt to bring diesel-powered Mahindra pickups to the US has been no exception. For four years, Perez’s Global Vehicles distribution network waited while Mahindra sought EPA certification for its diesel pickup engine, and then six days after approval arrived, the Indian firm dumped Perez with little ceremony. Now Mahindra says it will consider giving franchisees to the dealers who paid Perez up to $200k for the right to sell Mahindras, but that it is not obliged to do so. Perez is suing Mahindra for failing to fill an order for pickups, while dealers are considering suing Perez and Mahindra is seeking to end its agreement with Perez so it can distribute pickups through independent dealers. Mahindra’s Roma Balwani tells Automotive News [sub]
The current dealers’ contract is with GV [Perez’s distribution channel, Global Vehicles] and hence they do not automatically become Mahindra dealers. However, we would be considering these dealers for our network if they are interested. We will need a new distribution network and soon we will start a dialogue with potential dealers, including the ones who are signed up with GV, if they are interested in signing up with Mahindra.
Once upon a time, there was a Volkswagen executive who couldn’t figure out how to get American consumers emotionally invested in his brand. Then one day it hit him: why not re-skin the Golf as a Beetle? It could be less practical and efficient than its donor car, but baby boomers would buy it in Costco volumes anyway, for the sheer gauzy nostalgia of it. After flogging that Beetle for 12 years, through two successive updates to the car it was based on, it was time to update the old classic. But how?
Luckily history had an answer. Following the example of Beetle tuner/modders at the end of the original Beetle’s lifespan, VW apparently chopped the roof, exaggerated the fenders and called it good. Perhaps with the goal of making for a more “original” feel, the windscreen appears to have been moved back as well. Unfortunately tough, the change simply emphasizes the front-engine proportions, making the end result more reminiscent of a Morris Minor than the ur-Käfer. But, as the Volkswagen executive had learned by now, Americans don’t notice that stuff. The only remaining problem: how to avoid calling it “The new New Beetle.”
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