The Orlando Sentinel reports that “a couple of years ago,” Seminole County’s Lake Mary High School made the curious decision to ditch its previous mascot (now known as “the old goat”), and adopt the Dodge Ram logo as its own. Chrysler only just found out, thanks to a local tipster, despite the logo’s presence on gym floors, t-shirts and athletic uniforms. Needless to say, a cease-and-desist showed up, and Lake Mary will be having to live with “the old goat” from now on. As Chrysler’s lawyer puts it [via Overlawyered]:
As I am sure you can appreciate from your years of work with the board, control of use of a mark by enthusiastic students and parents is quite simply not practical, and I know the school and board would not want to be in the position of censoring student expression associated with the design,
Despite spending $264.1 million on measured media in the first 11 months of 2009, up 16.5 percent from the year-ago period [per AdAge monitoring] while sales fell nearly 27 percent, Automotive News [sub] reports that Acura is upping its 2010 ad spend by 50 percent. According to Acura’s advertising boss Steven Center, Acura’s awareness levels have been consistently high, but consumers didn’t perceive it being as prestigious as other luxury brands. By boosting advertising of new products like the ZDX and TSX Sportwagon, Center hopes to close the gap with the premium perceptions of its German competitors. Center explains:
Our messaging for years has been too ill-focused and not about the product. The ads weren’t making the point and the point is: What is it about Acura that makes it better? We want to have the emotion of BMW without the hardware,
You know, instead of being seen as higher-content, uglified Hondas. Yeah, more advertising should help with that.
Like it or not, extending the concept of luxury into ever smaller classes of cars is the next big challenge for high-end auto brands. According to the latest print edition of Auto Motor und Sport, BMW is already working on their own subcompact FWD three-cylinder hatchback based on the next-generation MINI platform. Though none of these new micro-luxe vehicles are aimed at, let alone approved for the US market, it seems that a strict traditionalist perspective on luxury brand purity is going to be a lot more difficult to maintain as emissions standards continue to rise.
What do you sell if you can’t sell a car? Sophisticated commentary on the state of gender relations, of course. Hit the jump to see just how gendered one marketing campaign can get. Read More >
One more obstacle to the Spyker-Saab deal has been eliminated, as BusinessWeek reports that the EU has approved the Swedish government’s guarantee of a €400m ($547m) loan to the company from the European Investment Bank. EU competition commissioner Neelie Kroes approved the loan today, saying it would not cause “any undue distortions of competition,” and that Saab had offered “adequate remuneration” and collateral. The EIB still has to give the loan final approval, a prospect that Swedish government officials say is likely, despite the fact that €320m of the package was originally intended as an environmentally-friendly car development fund. As Bertel Schmitt put it, “keeping the lights on in Trollhättan while GM delivers parts doesn’t quite fit the purpose.” Unless of course you’re willing to justify anything to get your hands on the new 2010 9-3X “Cross-Combi,” which SaabHistory claims can now be pre-ordered from the remaining US Saab dealers. And if the sedated Swedes in this video are anything to go on, the 9-3X is sure to be, well, a Saab.
Sergio Marchionne’s misguided obsession with the alleged brand equity of his recently-acquired Chrysler Group marques has deepened, as Chrysler, Dodge and Jeep launched new branded merchandise today [hilarious press release here]. The funniest part of the whole cross-branding effort is the very idea that significant portions of the population want their day-to-day goods slathered with Chrysler Group brand names. The second funniest? The products themselves. The Chrysler Collection features such “luxury gifts” as an $11.95 leather calculator, a $199.95 mahogany humidor, and a $21.95 mini umbrella, all tagged with Chrysler’s new Aston-alike logo and doubtless finished in the same fine materials as the Sebring’s interior. If Davos had a Wal-Mart, this is what they’d sell.
HUMMER is the big loser of GM’s dead brand version of “The Biggest Loser,” with an epic 2,493 vehicles left on lots after 9 months of “winding down” (not to mention the two plus years with a “for sale” sign stuck on the brand). As this table from GM’s January sales release shows, even Saab has trimmed more inventory since GM announced the cut to four brands last May. HUMMER did beat the Swedes in sales last year, barely, clocking 9,046 units to Saab’s 8,680. But Saab also sold more 9-7x Trollblazers (2,218) than HUMMER sold H2s (1,513). Figure that out. And people wonder why the Chinese government doesn’t want Sichuan Tengzhong to buy this hummer of a brand. [UPDATE: HUMMER’s Communication Director responds after the jump]
Spyker has set the goal of turning a profit with its newly-purchased Saab division by 2012, reports Automotive News [sub]. That effort will be led by a total of three Saab products: the existing 9-3 (with a new version rumored for 2011), the forthcoming 9-5 sedan and, later next year, the GM-built Saab 9-4X Crossover. Other models, including a 9-1 compact are being hinted at, but Spyker acknowledges that such a product would require about a billion dollars more than Saab-Spyker currently has access to. Meanwhile, those three vehicles will have to generate 100k-125k annual sales in order to keep the business plan rolling along. Saab-Spyker honcho Victor Muller has an almost shockingly confident take on this possibility, telling Reuters:
It’s all about the restoration of the confidence in the company. Customers have been very reluctant to buy because of the uncertainty surrounding the brand… Saab has to do nothing but regain its existing and old customers because that in itself would be in enough to create a very strong business model..
Saab sold a total of 8,680 vehicles in the US over the course of 2009. Globally, the firm sold 39,903 units last year, down from 94,751 in 2008. Perhaps the challenge is a bit more difficult than Muller lets on.
Having re-birthed themselves at the taxpayers’ expense, one of Chrysler’s top priorities is restoring the brand equity that has bled out since the Daimler takeover. First up was the move to spin “Ram” off as its own brand, and now it seems that no-one is safe from “re-birth,” as UPI.com reports that Chrysler are rethinking their strongest brand, Jeep. Unfortunately, one man’s brand rebirth is another man’s brand betrayal. Chrysler want to replace all of Jeep’s products, except for the Wrangler and Grand Cherokee, and the idea is to utilise Fiat’s experience of fuel efficient engines as the basis for it. That means Jeep is likely to become smaller, more fuel-efficient and less off-road capable [rumors of a Fiat Panda 4×4-based Jeep (rendered above) date back to the earliest days of the Fiat-Chrysler alliance]. If you had to boil the proposed shift into a single word, UPI figures it would be “soft.” And the markets have reacted to this news in pretty much the same way you’ve probably just reacted: they think the idea is bad. Very bad.
Oh how quickly things change! Just weeks ago, if you’d asked the average well-informed consumer what Toyota needed to change with its strategy, you’d have been treated to a treatise on how Toyota’s quest for quality and mass-market appeal had reduced its brand to signifying snooze-inducing appliances. Indeed, Toyota’s new CEO has emphasized enthusiasm as an area for improvement, waxing eloquent about the “splendid flavor” of the sporty vehicles Toyota doesn’t offer. Accordingly, Toyota is launching a sporting sub-brand àlá BMW’s “M” or Volkswagen’s new “R” line of high-performance vehicles according to Inside Line. Thanks to Toyota’s descent into recall hell however, boosting the brand’s sporty credentials is suddenly of highly debatable utility.
Volkswagen’s recent go-fast specials like the Golf R32 and New Beetle Rsi have typically been developed by a little-known branch of the automaker known as Volkswagen Individual. But performance isn’t necessarily VW Individual’s main focus, as the sub-firm also builds to-order customization of VW products, from police specials to to custom-built stretched Phaetons, and helps VW R&D on new products. In order to focus its efforts, VW is spinning the “R”-vehicle development program into its own unit: R GmbH. “BMW has its M, Mercedes has AMG, and our sibling Audi has Quattro. This new R division will be our Quattro,” an unnamed VW exec tells Inside Line. You know, because Audi and its Quattro performance division isn’t owned by Volkswagen or anything.
The search for “potential synergies” between Alfa Romeo and Maserati has already yielded its first bitter fruits, as Auto Motor und Sport reports that a special edition Alfa will be built as a loaner for Maserati owners who bring their cars in for service. Because there’s nothing Sergio Marchionne can’t fix with a special edition…
Here’s a situation in a hypothetical tense for you. If you were the CEO of a car company which never made a profit in 11 years and you offered to pay $74 million for a car company which hasn’t made a profit since 2001 and had a badly damaged brand, how would you expect your share price to go? Trust me, you’re not even close. MarketWatch.com reports that Spyker shares soared as much as 74% when they announced they had reached an agreement to buy Saab from General Motors. Spyker’s market capitalisation is now €107 million, four times more than when GM first put Saab up for sale.
For all the praise and positive comparisons he earns, Ford’s Alan Mulally still refuses to man up and acknowledge that at least one of his firm’s brands is as meaningful to the American consumer as Kaiser or Cord. And it’s not like Mulally can just ignore the brand’s slide into ignominy: after all, people notice when you never introduce new products for a brand that was wholly comprised of cheap rebadges in the first place. Well, Inside Line noticed, and they cornered Mulally at the Washington Auto Show to get his take on the brand with no purpose.
“The plan right now is (to develop) Ford, Lincoln and Mercury,” Mulally answered.
He said Ford is working to more effectively position Mercury with smaller vehicles that occupy the void between the mainstream Ford brand and Lincoln, which directly targets the luxury-premium market. “That’s our plan — to continuously improve the Mercury and Lincoln brands,” Mulally said.
But after a little more discussion, Mulally felt compelled to reiterate: “That’s the plan right now.”
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