I’ve said it before, I’ll say it again: if you want proof that Ford’s water-walking CEO doesn’t “get” automotive branding, look at Lincoln. The Blue Oval Boyz’ upmarket marque is in total disarray. Lincoln lacks anything approaching an effective brand proposition; it’s burning through tag lines almost as quickly and ineffectively as the industry standard for pitiful performance (Buick). Does it even matter? Lincoln’s line of lackluster products simply aren’t good enough to make it in The Bigs. And then there’s the Medusa-class disaster known as the MKT: a poorly-built, misbegotten machine constructed on Big Al’s watch. Automotive News [sub] deployed no less than three writers to talk to Mulally about languid old Lincoln, AND they spotted him the lazy journalist’s and persnickety PR person’s best friend: the Q&A format. Even so, the result is an extraordinary non-outburst from an executive who believes that combining Ford and Lincoln Mercury dealers is a good thing. Check out this exchange:
If you’re like me, you spent most of the weekend huddled under a blanket, half-watching television and praying for the flu agony to be over. And nobody who watched a considerable amount television this weekend could have avoided the latest flight of heavy-handed ads from Jeep and Chrysler’s new Ram brand. “My Name Is Ram” and the E.E. Cummings-inspired “i am. Jeep” campaigns are blitzing airwaves across the country as the New, New Chrysler gears up to make its wildly optimistic sales goals. After five months of total silence coming out of bankruptcy, the ads are coming out in earnest, and they’ll be running non-stop in hopes of catching up with the $100 per retail sale ad spend goal for 2009. Next year, Chrysler’s ad spending will go up to $170 per projected sale, peaking in 2011 at $210 per planned retail sale. And this increase in ad spending appears to explain why Chrysler’s sales projection charts swing wildly upwards after a dismal 2009. After all, if throwing upward of a billion bucks per year won’t change consumer perceptions, what will? Well, besides new product, anyway. There’s many a slip twixt the PowerPoint and the profit.
As you can see from this screen cap of Chevrolet’s website, the brand’s American Revolution is no more. The ridiculous catchphrase—applied as it was to Korean, Canadian and Mexican imports—has been replaced with . . . nothing. Niente. Nada. The big goose egg. Oh sure, there’s the “May the Best Car Win” tag line lurking beneath the fold, but that’s equally ridiculous. The best car is winning—in the only metric that means anything (sales), and it doesn’t have a bow tie on its snout. Yes, yes, it suits the suits. Just ask the guys and gals who attend GM’s death-by-PowerPoint marketing meetings, where execs who don’t mind the perception gap face . . . nothing. Niente. Nada. (Fritz will get around to the cultural change thing eventually.) Anyway, what’s next?
Are you seeing a pattern here? Although Olivier Francois is in charge of the most damaged brand in the Chrysler Group (and yes, that’s saying a lot), at least he’s been here before with Fiat’s problem brand Lancia. So it’s no surprise that Francois’s branding video for Chrysler is remarkably similar to a Lancia ad: it projects a kind of sophisticated sexyness, with lots of celebrities, architecture and passionate-sounding classical music. The only real difference is the copy that goes on and on about the good old days when Americans arrived in style. And unlike Ralph Gilles’ Dodge presentation, Francois’ vision of Chrysler’s brand actually works. But vision is only a tiny part of the battle for the Chrysler brand, and the rest is execution. On that front, things aren’t looking quite so good
The problem with branding exercises like Chrysler’s decision to split Ram from Dodge, is that they tend towards abstraction. Luckily, the back-from-the-dead Nitro is a good case study for how this split will play out. You might think that based on its aggressive styling and upright stance that it would make sense as a Ram-branded vehicle. But you’d be wrong. It will actually be positioned as a youth-market vehicle, within the Dodge brand. Hit the jump for an official concept of the Nitro’s possible repackaging. Read More >
Ram is brand. According to the new Ram CEO Frank Diaz, the Ram was “overshadowing” Dodge’s non-truck products… never mind that Dodge’s truck-cued car styling made that phenomenon unavoidable. There’s not much to say about the new Ram brand, except that it will include pickups, heavy-duty trucks and commercial vehicles (read: no SUVs), marketed with the usual John Wayne, hard-working, never quit attitude. Think of any truck ad you’ve ever seen, and you’ll understand everything there is to know about Ram’s branding. Read More >
Dodge brand boss Ralph Gilles has made his presentation on the future of the Ram-head brand. First up: it’s not the Ram-head brand anymore. Beginning next year, Dodge will be represented by the word “Dodge” in black with red accents. According to Gilles, the de-Ramification of Dodge was due to the fact that trucks were dominating brand perceptions. “Mojo” seems to be Dodge’s new buzzword du jour, along with the tagline cool × fun=Dodge. In addition, Dodge will be getting away from the “base, mid, high” trim level ladder to a “lifestyle-based” trim level system. In the future, Dodges will be available in the following trims: “sweet and simple,” “fun and practical,” “uptown luxury,” “thrill seeker,” and “cool extroverted.”
Automotive News [AN, sub] reckons it’s got the inside line on Toyota’s “new U.S. plan.” They’re so chuffed with the scoop that their article presents the bulleted battle plan in both the body text and a little gray box. And here it is: “Review and possibly trim the lineup of full-frame trucks; Skip midcycle vehicle enhancements to focus on bigger launches; Introduce more hybrids to North America; Give U.S. engineers a bigger voice in r&d.” AN reckons the headline is the potential truck trimming and hybrid adding bit. Which is certainly important news for a company with a “tattered image” (Toyota, apparently, not the American zombies clinging to profits via pickups, who’ve yet to produce a single large-volume hybrid vehicle). But what of ToMoCo leaving existing vehicles as is for longer?
By last Friday, it was clear that the United Auto Workers rank and file found their new, no-strike contract rank, and filed their objections during voting. In other words, the union’s members rejected the deal. Which left Ford CEO Alan Mulally’s rep seriously dinged. After all, Big Al’s been talking-up Ford’s return to profitability ever since he banked that first $25 million paycheck. The union vote against the strike was a vote for Big Al’s plan. If he’d kept his mouth shut or, better yet, constantly warned against looming collapse, the UAW might have made the ultimate concession. But then investors wouldn’t have dumped more money into Ford and the Ford family members signing Mulally’s big ass paychecks would have been seriously spooked. Big Al can’t win from losing, as the Brits would say.
Ever since GM announced that Saturn would be winding down, there’s been a niche-brand-like hole in the Canadian car market. And rather than learning from GM’s struggles, Toyota’s jumping right in to repeat them. The Star reports that ToMoCo have announced that Scion is going to Canada. Toyota will start off with 45 dealerships in urban settings (makes sense for an urban marque, I suppose); 20 in Toronto, 18 in Montreal and 7 in Vancouver. It’ll start off as a “store within a store” format. “The next generation of young car buyers is carving its own unique social and cultural experiences and Scion dealers will be part of their lifestyle,” Larry Hutchinson, Scion’s director in Canada, said. By slathering sensible cars which appeal to empty-nester boomers with youth-oriented marketing? Yeah, that’s been working well so far…
Chrysler’s product and business plan is leaking like a neglected radiator, leading up to next week’s announcement. The latest tidbit: an Alfa-badged version of the new Jeep Grand Cherokee. Alfa Romeo has been hunting after an SUV platform for some time, because as Luca DiMeo put it back in ’08,
We need an S.U.V. for America. Not everyone in the company agrees, but this would be the only practical Alfa Romeo and we will be able to design the sportiest, sexiest and most exciting S.U.V. in the world.
It’s important to note though, that this quote predates the revelation that the Alfa SUV would be a Grand Cherokee reskin, effectively replacing the unlovable Chrysler Aspen as ChryCo’s luxury ute.
Swedish daily Dagens Industri claims to have their hands on Koenigsegg Group’s secret market-plan for Saab. The one they used to secure a 600 million Euro loan from European Investment Bank. And they are aiming…upmarket! The ultimate goal is, by 2016, to establish a true luxury brand, and by then have such exclusive and expensive cars that an annual sale of 65.000 cars will suffice (by doubling the average prices).
Volkswagen and Porsche are about to make it official, as Volkswagen has now bought nearly 49.9 percent of Porsche. And though we’ve had plenty of time to get used to the idea, there are some troubling indications for the future of the Porsche brand in particular. As usual, the worries begin with an executive (in this case, VW/Porsche’s Michael Macht) explaining exactly how the company will be able to have its cake and eat it too.
Porsche needs to become a strong pillar of VW, as well as having its own production and research and development capabilities. It is important to use synergies as well as having independence… Any new model would have to be exclusive, sporting and make a good business case. In any segment Porsche has to be the most exclusive, as well as being the best quality and capable of delivering the best driving experience
Unsurprisingly though, these fine sentiments are mere prelude to the nasty reality.
Chinese automaker Geely has been pursuing Volvo for 10 months now, and it’s beginning to look like the chase was in vain. Bloomberg reports that disagreements over Volvo’s intellectual property are about to scuttle the deal, the same reasons GM gave for rejecting Beijing Automotive’s bid for Opel in July. The problem, it seems, hinges on product integration. Volvo’s vehicles are all based on Ford platforms, so giving Geely access to current and in-development Volvo models means trusting them with the special sauce. And Ford is even less likely to do that, after a former Ford employee was arrested last week for attempting to pass some 4,000 secret documents to SAIC and Beijing Auto.
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