In 1994, you could buy a base model Saturn for $9995 plus tax, tag and dealer fee. In 2002, you could buy a base model Saturn for $9995 plus tax, tag and dealer fee. In 2010, you may very well be able to buy an entry level Saturn for….
Read More >
Find News by Subject:
Category: Branding
Once upon a time, luxury brands built unique cars and added special editions for extra profit. Now luxury brands tend to build more cars based on volume brand platforms, the special edition seems to be giving way to a new phenomenon: unique luxury trim levels. GM has been a proponent of this system for some time, adding Denali trim levels to its GMC upgrades of Chevrolet trucks. Now, The General’s Cadillac brand has announced it will be adding Platinum trim level options to every vehicle that isn’t available in “V” form. The impetus for this is clearly the dream of coaxing BMW “M” or Cadillac “V”-style markups from consumers who don’t care about dynamics or power, but it also fundamentally undercuts Cadillac’s status as a true luxury brand… as well as Buick’s raison d’etre as an entry-lux brand. Or does it?
Having been told by the Secretary of Transportation that the Chrysler Group’s motley assortment of new trim level names, rebadged Lancias, decal-sporting special editions represents “the cutting edge of developing the kind of products that I think people in this country, and also in other countries, are really going to feel very favorable toward,” CEO Sergio Marchionne apparently thought enough had been said about his struggling bailout baby. As CBS reports, Marchionne suddenly canceled a 45-minute scheduled press availability before he had the chance to confirm LaHood’s astonishing opinion.
Between the tooling for the old Saab 9-5 being shipped off to China and GM “starting” the wind down process, even the most optimistic, “fuel tank is half full” members of the auto world are starting to think that it’s “game over” for Saab. Well, here’s the final nail (barring a completely audacious bid, from an equally audacious company, who want to spend millions of pounds on a damaged brand) in the coffin of Saab. The Local, a Swedish website, reports that GM are officially killing all plans to bring the new 9-5 to production. “It would be so sad that it never sees the light of day despite the fact that it’s a fantastic car,” admits GM vice chairman Bob Lutz.
Read More >
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.
We also recognize there is a market (for the Nano) not only in developing countries, but possibly in the developed countries. For the United States we need a car which has a larger engine and we need additional crash test modifications and we are in the process of doing it.
Ratan Tata at today’s India Auto Expo [via Automotive News [sub]], suggesting that the world’s cheapest car could eventually be sold in the US. Fiat is already partnering with Tata to jointly sell the Nano in Latin American markets, so there’s a chance that the Indian city car could eventually show up at Chrysler dealerships.
The very first post-bankruptcy, Chrysler-brand advertisement was a true re-badge, literally replacing Lancias with Chryslers in the exact same advertisement. The second spot, which we ran yesterday, was a vague, year-end spot emphasizing history and heritage while showing only one modern car. Though it’s not a strict re-badge like the Lancia ad, the new Chrysler ad is, at the very least, based on some serious platform-sharing. Specifically the ad above, an Italian-language spot for the Fiat Group, is thematically identical to the Chrysler ad.
When CEO Chung Mong-Koo told his employees to make Hyundai’s quality world class, their competitors all had a collective laugh. Well, we all know how that ended, so when Chung told his employee to increase sales, the competition should probably heed his words as a warning. The Korea Times reports that Chung Mong-Koo wants the Hyundai-Kia group to increase sales by 17% in 2010, from 4.63 million (2009) to 5.4 million. “Our teamwork helped turn a crisis into an opportunity when the global auto industry was at its darkest,” said Chung Mong-Koo. “Based on our achievements last year, let’s work together to make 2010 a year of writing a new history.” Analysts like Sohn Myung-woo of Woori Investment & Securities sees the goal as achievable, saying “Hyundai will continue its sales momentum in the U.S. and emerging markets such as China and India.” But besides expanding volume, Hyundai wants to use its momentum to continually improve its brand image in mature markets like the US. To that end, it’s paying more attention to how it markets its Genesis luxury semi-sub-brand.
You’d have to be a fairly trusting GM dealer to participate in what The General calls its Essential Brand Elements program. After all, it’s just the kind of dealership re-branding exercise that HUMMER dealers were forced into shortly before the brand was consigned to the ash heap of history. And once again, GM is asking dealers to create ideal showcases for its brands while keeping compensation for the renovations on a highly trust-dependent basis. GM wants brand-specific dealership rebrandings complete within three years, but will only pay for them over the next five to ten years reports Automotive News [sub]. And the payments won’t be fixed either, but will rather be tied to the dealer’s annual vehicle shipments using “a seasonally adjusted formula that takes into account the price of the vehicles sold.” According to Chevy’s Sales Manager Kurt McNeil, those payments could “conceivably” cover the recommended changes over the ten-year period. Are you feeling the trust yet?
Read More >
Got schadenfreude? This video represents GM’s pathos-laden attempt at discovering Saab’s relevance, circa 2003. But this is more than just the insincere flogging of a dead brand walking, it’s also more evidence for why GM continually struggles with perception gap. Videos like this, touting turnarounds and viability, have been undermining GM’s credibility for decades. At this point perception gap isn’t even the right term: try “credibility deficit” instead. Meanwhile, die-hard Saab fans are planning on converging on the RenCen in hopes of swaying the masters of Saab’s fate to be merciful to their beloved brand. Don’t hold your breath though: as this video proves, GM has years of cynicism under its belt when it comes to its Swedish division.
Subaru wasn’t the only automaker who bucked the misery in 2009, but it was one of the most consistent sales performers month after month. As a longtime Subaru aficionado, my initial diagnosis was that Subaru moved upmarket just as its brand equity was peaking. The brand’s new, flashier interiors, along with upsized redesigns of the Forester and Outback may not have been my cup of 30-weight, but they put the brand on more shopping lists among the automotive mainstream. That’s at least part of the message of Automotive News [sub]’s dissection of Subaru’s strong year, as Subie insiders reveal that more tech toys, better rear legroom and more “sophistication” were important in making Subaru products live up to the inherent “premium-ness” of their AWD platforms.
Read More >
Saabsunited ran a recent piece by Sweden’s Dagensindustrie through Google Translate, and came out with a possible (and very old-GM) outcome for the new Epsilon II-based Saab 9-5:
According to Dagens Industri’s sources, GM is planning to use the new Saab 9-5: an own model program, including a future Buick in the U.S.. GM is also in a letter to Saab’s sub-contractors have estimated the time of closure of Saab to five years.
There are sources in Saab Automobile in the Dagens Industri – DI – indicates that GM now see positive opportunities to closure of Saab. By making use of Saab’s technology, tools and production equipment for GM use the new 9-5: an – that would be launched in the spring – to a future Buick in the U.S..
In the GM is also talk of exploiting Saab technology for the production of a new premium car for Opel, “says DI’s sources. It would then be about the reopening of the closed trial with an Opel Senator in Europe.
At least now we know how Saab will die. But Spyker CEO Victor Muller’s unfortunate choice of metaphors isn’t the only indication in his interview with the WSJ Deal Journal that Saab will die on the operating table. Take, for example, his answer to the question “Why does Spyker want to buy Saab?”
Saab has 1,100 dealers world-wide. If we sold Spykers in just 5% of those dealers, we would be tripling our distribution base. Saab also has access to technologies that would be ideal for Spyker, such as an all-wheel drive system. Also, a company that should sell 100,000 cars a year has very high purchasing power and get parts cheaper than a company that wants to make 100 cars a year.
Emphasis on wants to make 100 cars per year (they sold fewer than 50 last year). And yet, somehow Muller “hopes to model a Saab acquisition after Audi’s successful take over of Lamborghini in 1997.” Except that Saab ain’t Lambo and Spyker ain’t exactly Audi. Meanwhile, Muller also seems to think that Saab can survive on “quirk” alone, and he does some confused back-pedaling on his racially-charged statements about Saab and Spyker. The saga continues. Read More >
This strangely blurry picture of a Lancia Delta rebadged as a Chrysler has shown up at Vince Burlapp’s blog, possibly giving a clue as to the identity of the rumored NAIAS Lancia-as-Chrysler showcar. Er, except that it’s clearly a photoshop of a Wikimedia image shown after the jump. Oops!
Despite the flood of clumsy eulogies and “don’t worry about the Saab dealer, he owns a Porsche shop” stories making their way into the local media (usually a good sign of a sure thing), Saab may still have some kind of chance at survival (in some form). According to Spyker spokesfolks [via AFP],
Spyker has been in contact with GM today and continues to develop its proposal for the purchase of Saab. Spyker has extended the validity of its proposal therefore until further notice
Merbanco claims to have a new offer as well, as Saabsunited.com reports that they are working with a Swedish consortium that “does not wish to be identified unless they are successful in the bidding.” GM has not issued a statement about Saab today, perhaps because the release writers were too busy with the announcements of a new CFO and the Chevy Equinox’s victory in an “Urban Truck Of The Year” competition.
Recent Comments