Despite breaking new ground in the field of brand leverage with its Ferrari World Abu Dhabi theme park, Ferrari does seem to have lost the plot a bit in relation to its “other” business building expensive sportscars. Ferrari’s abandonment of the manual transmission might be justified by faster lap times at Fiorano, and the lightning-fast, dual-wet-clutch transmissions that replace them certainly seem to help keep the Scuderia at the bleeding edge of technology (even if they’re designed and built by Getrag). But underlying the faster times, higher speeds and “digital supercar” honorifics from the motoring press, there’s a sense that Ferrari’s progress must accommodate an ever-more ambitious business plan as much as design the world’s most capable and emotive sportscars. And it’s starting to bear some troubling fruit.
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Category: Marketing
Buick has confirmed long-standing rumors that it will offer a compact (Delta II) sedan (likely a rebadge of the Opel Astra) and a subcompact (Gamma II) MPV “in the near future,” reports the Detroit News.With the Regal launching this year, these two vehicles will create a Buick lineup with twice the options of its current three-car lineup. That current lineup competes in only two vehicle segments, whereas by 2013, Buick expects to compete in 47 percent of market segments with a lineup of vehicles that will all be newer than the Regal. In other words, if you think Buick’s problem is product, GM agrees with you… and it’s revamping the brand’s entire lineup over the next three years.
Lithium-ion batteries aren’t the only automotive cleantech that appears to be getting cheaper. Toyota’s head of advanced autos, Yoshihiko Masuda, tells Bloomberg that the Japanese automaker has cut the cost of hydrogen fuel cell vehicles (FCVs) by 90 percent in the last five years or so. Mid-decade, Toyota’s per-car estimates for FCVs ran near a million dollars per car. With costs now closer to the $100k mark, Toyota says it plans to cut that number in half by 2015. If they can make that happen, Masuda says, a $50k hydrogen FCV will be on like Donkey Kong.
Maybe I’m showing my age here, but my definition of the term “younger” clearly doesn’t match that of The LA Times (though the age of the driver pictured is not given). And it’s not just the photo editor either… Read More >
To say that Chrysler’s 25 percent year-over-year sales increase last month came as a surprise would be pushing the boundaries of overstatement. Chrysler’s sales and market share have been in decline for a long time, but over the past several years, the tailspin seemed to have become terminal. So, how did the Pentastar (barely) make its 95k minimum volume level and increase sales by 25 percent over April 2009? Fleet sales, for one thing: according to The Freep, TrueCar.com estimates that a full 40 percent of Chrysler’s April sales went to fleet customers.No wonder made a big deal about publicly finding Jesus on the fleet sales issue… at the end of the month (to say nothing of the conspicuous absence of retail sales numbers in its April report and massive increase in Sebring sales). And the bad news doesn’t end there. Not only did Chrysler top all automakers in per-vehicle incentives last month according to Edmunds’ monthly True Cost Of Incentives index with $3,374 on the average Mopar’s hood, they’re actually increasing incentives even further.
Ousted GM marketing boss Susan Docherty came into her own at GM as General Manager of the HUMMER brand. How well did her stewardship of that brand work out? We’ll let this picture do its thousand-words thing on that question [HT: AsianMartin’s Twitter feed, via SpeedSportLife].
Since GM Chairman/CEO Ed Whitacre began firing holdover executives, starting with former CEO Fritz Henderson, TTAC has argued that VP for Marketing Susan Docherty is a prime example of a GM lifer who “owes her career to GM’s timid and inept culture.” Having already lost the Sales VP position to GM’s rising star Mark Reuss, “leaving Docherty time to focus on the marketing side and polish up her resumé,” we figured she was on her way out. And sure enough, several embarrassments later, the announcement came today. What we didn’t expect: that former Hyundai “Marketer of the year” Joel Ewanick would replace her.
The Competitive Enterprise Institute, a public interest group dedicated to free enterprise and limited government, has filed a complaint with the Federal Trade Commission, alleging that a recent advertisement from GM claiming to have “paid back government loans in full” is deceptive [full complaint in PDF here]. You might be able to guess why the CEI finds the GM ad so misleading, but if not, their explanation is after the jump.
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Imagine you’re an automaker which enjoys an unprecedented drivetrain technology advantage over all other manufacturers. Imagine you build a brand around that drivetrain that becomes a cultural touchstone, a symbol of your firm’s technical prowess and commitment to the environment. What do you do next? The obvious answer is to build a luxury version to help make the extra profits needed to pay for the drivetrain’s development, right? Well, Toyota did just that, piggybacking the Lexus HS250h on its strong Lexus brand and Prius technology. The only problem? It’s not working.
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The ironic rap video… yeah, there’s something the potential minivan driver will find hip and edgy.
Personally, the lack of a blue “Mark of Excellence” was the last thing I noticed about GM’s latest advertisement. Over at GMInsidenews.com, however, they picked up on it a little quicker. GM’s trademark “chiclet” has already been removed from all of its future vehicles, and Cadillac has publicly announced that it’s distancing itself from the GM name. In fact, post-bankruptcy, everyone at GM has said that the “GM brand” should take a backseat to Chevrolet, Buick, Cadillac and GMC. But will The General go as far as get rid of its little blue box altogether?
You can already buy a BMW 3-Series in sedan, coupe, station wagon and X3 “cute-ute” bodystyles, and for some automakers that might be enough. For niche-crazed BMW though, it’s just the beginning. A 3-Series GT is planned in the mold of the 5-Series GT, as a midway-point between the coupe, sedan and station wagon versions. You know, in case you can’t decide which you want. “This has never existed!” screamed Autobild… back in 2008. Of course, now it does exist in the form of the 5-series GT, which could actually end up replacing the 5-series wagon in the US market. And as the march of the niche vehicles rolls onward, there’s one more segment that the 3-series architecture still hasn’t capitalized on: the jacked-up midway point between coupe and SUV. That’s right babies, the X4.
If there were a global brand that GM should have killed, it’s probably Daewoo. Outside the South Korean market, the name is so associated with cheap, crummy cars, that GM rebadges nearly all of Daewoo’s exports as Chevrolets. And even then, the “Chevwoo” brand is tainted by the fact that GM refuses to take ownership of its troubled South Korean operations, and enforce a one-badge policy in line with Chevy’s global branding. And it’s not like the Daewoo name is all that beloved in Korea either, as The General recently figured out that as many as 40 percent of all Korean Daewoo buyers were replacing their badges with Chevy bowties supplied by the aftermarket. In fact, GM was threatening to get rid of the Daewoo name altogether and replacing it with Chevrolet. But apparently because of fears of alienating Korean customers and “resistance from labor unions,” GM has decided to introduce the Chevrolet brand to Korea without killing off Daewoo. As GM’s presser puts it:
today’s announcement is about brand coexistence, not brand replacement
Sound familiar?
Back in February, we took note of Chrysler’s “principled” stand on new-product secrecy, concluding:
Let’s face it: Chrysler needs buzz, hype, awareness, some kind of excitement surrounding its future generally and its forthcoming products in specific (if only in the irritating “teaser” format) almost as much as it needs anything else. Because as things stand right now,the baseline perception of Chrysler is of a dying company with nothing to offer. In this light, Chrysler’s principled rejection of hype is far more likely to be interpreted as keeping rushed semi-refreshes under wraps so they won’t be mocked to death by the time they go on sale. If that’s not the case, Chrysler has nothing to lose and everything to gain by building consumer awareness of new products. If it is, well, the truth will out sooner or later.
And apparently we’re not the only ones who think so. In fact, if the Detroit News is to be believed, literally everyone seems to think that Chrysler needs to start being more open, not only about its forthcoming products, but at every level of its business. Read More >
Chrysler won’t officially confirm it, but the Detroit Free Press cites Chrysler dealers who say that the tarnished-to-death Sebring nameplate will be replaced with the name “Nassau,” when Chrysler brings out a Fiat-facelifted version of the midsized sedan later this year. The Nassau name first entered Mopar history with the 1955 Windsor Nassau, a a two-door coupe advertised as having “the 100 million dollar look.” After a mere two model years as the Windsor Coupe nameplate, the Nassau name lay dormant for decades before returning as a 2000 styling buck for the Chrysler 300, and again as a midsized sedan/wagon concept in 2007.
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