By the end of the year, Nissan will, a bit belatedly, introduce their total plug-in, not range extended, all electric Leaf. They will also open a huge data center.
According to The Nikkei [sub], the location and other stats of the data center are strictly confidential. “But sources close to the company say the facility is equipped with quake protection and information-leak prevention systems so powerful it could even handle state secrets.” What do they need it for? Read More >
Toyota has long insisted that the Lexus HS250h would be America’s luxury “dedicated hybrid” model, while the smaller CT200h would be a Europe-only model. That decision was an presumably based Lexus’s desire to match its US sales success in Europe by offering a unique model that was more attuned to European tastes, hence the CT’s trim, five-door-hatch packaging. But with Toyota and Lexus sales suddenly in trouble in the US, attracting “a whole new buyer to the Lexus brand,” as Lexus flacks put it to Automotive News [sub] suddenly took on a much higher priority. And so, the 1.8-liter Euro-hybrid will bring its “2.0-liter performance with class-leading CO2 emissions” to the US market beginning early next year. As a Euro-market model brought stateside to add youth-upscale appeal that its similarly-positioned US-market brand-mate is struggling to establish, the CT200h’s parallels with the forthcoming Buick Regal are intriguing. That Toyota is taking a page from GM’s product plan-thrashing playbook is just plain troubling.
Think you have it figured out? Hit the jump for the answer…
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Cadillac relaunched [release in PDF format here] its perennially disappointing European effort last week, revealing that a new sales and import firm, Cadillac Europe, had been formed. Why would Cadillac double down on a market that it until recently blighted with its ill-advised Opel Vectra-based BLS (which bizarrely still appears at the cadillaceurope.com website)? Caddy boss Brian Nesbitt explains:
Europe is an important market for Cadillac. Re-establishing distribution of our premium offerings is good news for those who seek import exclusiveness
Except that Europe and America are fundamentally different markets, with different tastes in luxury. Unless the Cadillac boffins have some kind of alternate explanation for why Lexus sells like hotcakes in the US, but can barely move the needle in Europe and is resorting to Euro-specific models to make headway. But apparently success in the US luxury market is just a few European sales away. Really.
Shortly after emerging from bankruptcy last July, when GM’s sales were still showing few signs of recovery, then-Sales and Marketing boss Mark LaNeve had his marketing responsibilities stripped about a week before monthly sales came out. In a matter of months, LaNeve was out the door. Sales and marketing were rolled together again when Susan Docherty took over for LaNeve, but over the weekend it was once again stripped away, in one of the first signs that Docherty’s star is no longer rising at GM. And lets go ahead and start assuming that February sales must be looking fairly grim, because the only real explanation given to Automotive News [sub] is that
The shakeup shows that Chairman and CEO Ed Whitacre is impatient to boost sales and for consumers to appreciate what he believes is the high quality of GM vehicles. When he became chief executive in December, Whitacre said his sales and marketing team would need to show results quickly.
The perception gap claims another victim! But Docherty’s downgrade is Mark Reuss’s gain. The former Holden boss, now GM’s President of North American operations, will assume the sales responsibilities, leaving Docherty time to focus on the marketing side and polish up her resumé.
The social media blog Mashable has an interesting theory: Toyota’s recall woes might actually be good (gasp) good for the brand. To back up this astonishing claim, they offer two premises, based on online social media data:
The first is that the increased number of conversations about Toyota are building greater awareness for the brand even though many of the mentions may be negative. While this may seem unusual, the fact that people are talking about the brand a lot more and sometimes in a neutral light (not just negatively) is increasing its exposure. More people are talking about Toyota than any other brand these days. And they’re talking about the recalls, but also the fixes being provided by the dealerships too. And some of the consumers are probably coming to the defense of the brand too. Maybe there is some truth to the adage that there’s no such thing as bad publicity after all.
Before you choose, remember, this Polo GTI won’t be coming to the United States when the nameplate arrives sometime next year. In fact, no three-door hatch is planned for America at all, since VW has decided to go the Echo route and only sell sedan-bodied Polos stateside. Well, with one exception…
To the victor go the spoils. Who will be the victors, and how much spoilage will be there in the protracted Toyota battle? Of course, this is all in the name of safety and the children, and any sales dislocations will be unfortunate collateral damage. Really.
As optimistic as Toyota might want to be, over the next few months, their sales will decrease. They already do decrease. “Toyota’s US sales tumbled 16 per cent in January from a year earlier and are set to record another hefty fall this month,” reports Financial Times. Stoppage of deliveries and production, topped by a media onslaught, can have that effect.
Maybe Toyota’s ideas of an increased warranty and more incentives will work, long term, but in the short term, they’d better prepare themselves for negative numbers at the end of each month ahead.
As the first law of thermodynamics infers, energy cannot be created or destroyed, merely transposed. If customers are leaving Toyota, they don’t just disappear like Toyota‘s reputation for reliability China’s interest in US debt, they have to go somewhere. So where will they? Read More >
With news that Mercury will receive new product based on the forthcoming Ford Focus, the bandwagon to crown Ford as the new King of Detroit has halted briefly as its passengers take a moment to remember: oh yeah, Ford is technically still trying to compete in the luxury game. Ford’s recent luxury-brand efforts have been so half-hearted in comparison with its Ford-brand turnaround that many analysts simply overlook Lincoln and Mercury when proclaiming Dearborn’s momentum. As, apparently, have consumers. Neither Lincoln nor Mercury cracked 100k sales units in 2009, a feat achieved even by such marginal luxury brands as Buick, Cadillac, and Acura. And as the Detroit News details, the problems with Lincoln-Mercury run deep, and their solutions are far from obvious.
The best stories are those where you can barely wait to find out more. There are new heroes, new ideas and new sources of suspense… actually, all typically Porsche
So goes the opening to this video, introducing the new base-model V6 Panameras. Though some might argue that Volkswagen-sourced V6 engines are not in fact “typically Porsche” (an argument that carried more weight before the Cayenne came to town), a 300 horsepower engine in a 3,814 lb, four-door Porsche does technically qualify as a “source of suspense.” And attempting to charge $75k for a base Panamera V6 certainly requires a perspective that might be charitably described as “heroic.” On the other hand, it’s hard to get too down on this poor thing. You can’t blame a lazy dog for a veterinarian’s (or in this case, a CAFE standard’s) work. Besides, it’s still not as embarrassingly neutered as the Cayenne V6.
BMW has ditched its long-running “Ultimate Driving Machine” tagline in favor of the vague, lifestyle-y “We Make Joy” promise. And though advertisers never tire of explaining that products themselves pale in comparison to the feelings they inspire in their owners, much of BMW’s (and most German luxury brands’) appeal comes from a projection of sachlichkeit, or single-minded obsession with something for its own sake. “The Ultimate Driving Machine” expressed the brand’s practical and emotional values in a simple, original phrase. The new line might open the brand to more non-enthusiast consumers, but it also reeks of the kind of marketing done by firms that don’t have top notch products on the market (usually because of a distinct lack of institutional sachlichkeit). For the closest analogue we could find on short notice, hit the jump.
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When GM axed four brands in bankruptcy, it seemed for one bright, shining moment that the era of America’s auto brand bloat was drawing to a close. No such luck. Both Chrysler and Ford passed up opportunities to hack off purposeless brands, and in doing so perpetuated some of the worst examples of brand engineering surviving in the US market. If there were one brand that needed the hatchet, it is and was Mercury. Now, after a decade of Jill Wagner-supplied life support, Ford is breaking the silence surrounding its entry-luxe brand, announcing that a Mercury-badged vehicle will be built “on the same platform” as the new Ford Focus. Put simply: the Mercury Tracer is coming back.
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Fiat/Chrysler CEO Sergio Marchionne was supposed to give a speech in conjunction with the Chicago Auto Show today, but backed out at the last minute, sending Dodge honcho Ralph Gilles in his place. The Chicago Sun Times was able to snag an interview with the globetrotting CEO though, and it features some of Sergio’s more candid (if confusing) comments on the state of new product development at the New New Chrysler. Of particular interest is his very apt criticism of Cerberus’s mismanagement of new product development, specifically the decision to replace the 300 before the Sebring.
The biggest market segments in the United States are the C [midsize cars] and D [large luxury vehicles] segments. If you only have a dollar to spend that’s where you go spend it, especially if you’ve got products that are structurally not working.
The decision was made to invest elsewhere. So we developed a brand-new platform for the 300, a decision that took capital that may have been required elsewhere to go play in a different sandbox. Until you’re clear about where you need the money, where the money needs to be spent to ensure longterm survival – that part of it was substantially missing.
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.
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