OK, before we get into the gory details, let’s take a moment to acknowledge the fact that Chrysler’s presence at the SEMA show was something of a minor miracle. Of course, there are presences and there are presences. Chrysler’s display was tucked far away from the highest-trafficked areas of the Las Vegas Convention Center. And its stand was the only major OEM presence on the ground floor of the South Hall, which was otherwise packed with wheels, tires and cheesecake. Of course, if you never found it you’d not have missed much. The whole shebang could be summed up in a single word: Challenged. There were about equal numbers of new and vintage Challengers making up the vast majority of the Mopar display. Sure, there were a handful of lifted Rams and Jeeps, but otherwise it was all Challenger, all the time. In the interests of complete fairness, Chrysler also showed a Landaulet version of its 300C and there was a Viper as well. But no Calibers, Chargers, Avengers, Sebrings, etc. Not that they were necessarily missed, but it definitely gave the impression that ChryCo’s corporate masters were spending as little money as possible in order to highlight only the most strip-and-flippable brands in the stable. And though the 300C-ized Magnum’s crucifix art pictured here seemed to sum up Chrysler’s tragic circumstances, it was not part of the Chrysler display.
Category: Marketing
Ford tells us that J.D. Power tells them that “30 percent of new vehicle shoppers who walk away from a dealership do so because the dealer did not have the exact vehicle with the colors and options they wanted.” Yeah, right. That what they say… Never mind. As suspicious as this factoid may be, Ford has decided it should use one of them there computer-type things to “determine the vehicle configurations customers in different regions of the country most want.” And once they do that, why not “significantly reduce the number of orderable combinations across its vehicle lineup”? You know; like, I’m thinking… Honda! “For example, the new 2010 Ford Fusion will be available in 104 popular orderable combinations, compared with 2,602 configurations for the 2008 model year. For the entire Ford brand, the company has reduced orderable configurations by 90 percent from the 2008 model year.” No seriously. This makes sense. It’s a good sign the lights are [still] on in Dearborn. Long overdue.
Being Bob Lutz has a fantastic job. He’s rich as sin (thank you, Daimler, for buying Chrysler), and he has Czar in his unofficial title with GM. He can say whatever he feels like, whether it’s about global warming (“a crock of shit,” in his words) or random price projections for meeting the next round of EPA standards. During Maximum Bob’s epic career, he’s “championed” some very interesting though chronically unsuccessful products. Some of these were on sale twenty years ago, others are on sale today. And still others will likely never see the light of day. While so many cars have been touched by Lutz’s magic hands, we present to you his big nine.
News flash! Automotive News [AN sub] finally talks to someone on the record! And it’s no less a personage than GM Marketing Maven Mark LaNeve, the man in charge of managing The General’s declining ad budget. To celebrate the occasion, AN’s crack reporters resort to the lazy journalist’s best friend: Q & A. The resulting edit begins with the usual “these grapes are not sour, there must be something wrong with your taste buds” waffle. LaNeve would have us believe that the new media is so wicked cool GM doesn’t really need to spend as much money as it did before the last of the corporate cash pile went up the chimney. “When a lot of the digital technology was new, all marketers were learning. As you learn, you get more efficient and you spend less money to get the same results, the same impact, the same reach in the marketplace. That is why I am comfortable with some of the cuts we are making. We are a whole lot better at search, at digital, at working with our third-party partners like Edmunds.com and The Truth About Cars.” Just kidding. About TTAC. Anyway, AN raises the spectre of GM’s octo-brand stretch. Pah! “We prioritize the launches. The key launches are the Chevrolet Traverse, Camaro and Equinox. Cadillac has the CTS wagon, CTS-V series and CTS coupe on the horizon. And the Buick LaCrosse and GMC Terrain are two big launches.” THOSE are GM’s priorities? My children’s children’s children’s tax money is so dead. More revelations after the jump.
Bloomberg reports that the American Revolution may have to continue (start?) without America’s small town atheletes. “Chevrolet will stop promotions tied to college sports and only advertise during games, said Philip Caruso, national promotions manager. The brand will also eliminate partnerships with some of the smaller sports such as skiing, he said.” When you’re shutting off escalators and limiting voice mail to save some money, excising a big chunk of change like this makes sense. That said, check this out. “The economy is making us re-look at everything we do,” Caruso said in an interview after awarding Major League Baseball’s Roberto Clemente Award at the World Series in Philadelphia. “It’s cutting back mainly spending in the sports area and promotions as a whole, and then reallocating in some of those areas that help grow our business.” So, does that mean the previous ad spend wasn’t helping them grow their business? D’oh!
All of them. Including the M3, M5, M6, and Alpina B7. That would be 0.9% financing.
Minimum credit score is tier one (701+). From 24 months to 60 months. The program has been going since October 1, but was not heavily publicized (outside of the Sunday newspaper ads that are usually credibility-free anyway). We’ll be eager to see what the October sales stats look like. I’d imagine someone at BMW HQ will be eager to see them, too.
What’s up with The Detroit News? When it comes to partially or completely unattributed rumors surrounding the GM – Chrysler merger, there’s no source vague enough to warrant exclusion from their news pages. But when they’ve got a hold of a really juicy rumor, they get all coy on us. There’s no reason for “GM mulls Tiger Woods’ Buick contract” to exist– other than as a nudge, nudge, wink, wink word in your ear Guv’nor that The General and The Tiger are about to go their separate ways. How’s this for a suggestive juxtaposition: “Buick, which has had an endorsement agreement with the world’s No. 1-ranked golfer since 1999, has no plans “right now” to scale back its golf sponsorships, [Woods’ agent Larry] Peck said in a telephone interview. The company’s stock has dropped more than 74 percent this year to $6.19 at Wednesday’s close, and GM has cut 53,000 union workers since 2005.” Given The General’s exsanguination, Woods’ other agent was appropriately sanguine. “I want to see where they are, and they want to see where we are,” [mark] Steinberg said. Will they wave at each other? You know, as GM says goodbye? Look for a Tiger at a BMW, Mercedes or Audi-sponsored event soon.
We’ve long held that Cadillac is one of two “core brands” for GM that should be preserved (along with Chevy) at all costs. To compete with the big boys of luxury (Hyundai, anyone?) Caddy needs new product, and unlike Pontiac it’s going to get it. But will Cadillac’s product pipeline be filled with unique, desirable products or cannibalistic also-rans? I know, let’s ask that font of balanced coverage and journalistic integrity, Motor Trend! In fairness, MT admits that “It’s been four or five decades since Cadillac built a car that came close to being ‘The Standard of the World.'” “But” comes the now-customary about face that emerges any time a mainstream journo discusses the failure of an American automaker, “with the new CTS, and especially the world-beating CTS-v sport sedan, (Cadillac’s) rehabilitation is well underway.” Oh really? Let’s take a look.
With GM’s resale values and stock price hovering at record lows, two Texas dealers have come up with one hell of a sales gimmick. Buy a GM vehicle at Frank Kent Motor Co. in Fort Worth, Texas by the end of the month and the owners will give you 50 shares in General Motors. The scheme is advertised as a celebration of GM’s 100th anniversary, but when asked by Automotive News [sub], Frank Kent Motors owners admit that the promotion was actually inspired by the depths to which GM stock had sunk. And while “50 shares of General Motors” sounds better than “$327” (based on GM’s $6.54/share price at the time of writing), the dealers see the stock as (get this) a hedge against depreciation. “Typically when a customer buys a car and they go to trade it in in two or three years, it has depreciated,” Frank Ken Motors owner Will Churchill said. “Hopefully in two or three years (the stock) will probably be worth more.” Or, as we are fond of saying around here, not. There are very few scenarios for GM’s next several years that involve good news for its stock holders, and quite a few that could see your “incentive” stock wiped out to zero. And then all you have is a massively depreciated Aveo (or whatever). And twice the buyers remorse.
No major surprises here, as ChryCo’s AWD option box is ticked on fewer than five percent of Caliber purchases and even less often on Avengbrings. “For the Avenger, the take rate was 1.5% for 2008, and for the Sebring it was at 0.7%.” Chrysler spokesman Jiyan Cadiz tells Ward’sAuto. “So obviously the bottom line is people want fuel economy, and the AWD modules are not profitable for us. That’s something we can get rid of as we’re consolidating products and finding what’s profitable.” And while we wish Chrysler the best of luck in their hunt for “what’s profitable,” AWD supplier BorgWarner has a case of sour grapes for Chrysler. “What we’re seeing in terms of market forecasting is that (AWD) in the B-, C- and D-segments is growing globally,” say BorgWarner’s product business director, Chris Cook, who calls Chrysler’s move an “aberration.” And Cook blames Chrysler’s Jim Press, lately of ToMoCo. “Press comes from Toyota (Motor Corp.), where they don’t have AWD on a lot of vehicles (in those segments),” Cook says. “So (the decision) was philosophical.” Or rational. Anyone who wants an AWD Caliber can always spring for a Jeep Compass, and AWD has always been an under-advertised afterthought on the Sebring and Avenger. In fact, Press’s Toyota roots don’t make him “anti-AWD.” Toyota’s partial ownership of Subaru proves that a dedicated AWD-peddling niche brand (hello, Jeep) allows the mainstream brand to focus on efficiency and affordability. And with CAFE bumps looming, offering AWD on every model “because you can” makes less and less sense every day.
I once made the mistake of asking Jim Dollinger to fax me over a list of all the GM incentives in play. I swear to God I threw away my fax machine afterwards; I ran out of that stupid carbon crap at 15 pages, and we’re talking about a non-mid-life compatible typeface size. Anyway, now that GM’s last– I mean “latest” Employee Pricing for Everyone Sale is done, the automaker’s amping-up the incentives to its last redoubt: GM employees. (If you doubt it’s a readoubt, read out this pdf re: GM North Central’s sales figures). Automotive News [sub] reports that the General’s offering the discounts to “GM employees and their extended family members, and employees of GM suppliers and GM dealerships — essentially anyone who knows anyone who knows someone who qualifies for the GM employee purchase price, said Jim Bunnell, executive director of GM’s channel support group.” Support group? Do they hold hands and sing Kumbaya? Anyway it’s an extra grand (The Chevrolet Malibu, Traverse and Avalanche; GMC Acadia; Saturn Outlook; Buick Enclave; Hummer H3; Cadillac CTS; and light- and heavy-duty versions of Chevrolet Silverado and GMC Sierra extended-cab and crew-cab pickups) or two (Chevrolet Impala, Pontiac G6, Saturn Aura, Buick Lucerne, Saab 9-7X, Cadillac Escalade, Hummer H2 and light-duty versions of the Chevrolet Silverado and GMC Sierra regular-cab pickups) on the hood.
If you harbored any doubts that Toyota is attacking the soft underbelly of its chief American rival, General Motors, this should eliminate them. Toyota Financial Services (TFS), one of only two AAA-rated auto credit companies, is launching the Toyota Rewards Visa®. Like GM’s card, ToMoCo’s Visa creates rewards points that can be redeemed when purchasing a vehicle from a Toyota delaership. Unlike GM’s card, ToMoCo’s plastic points are also redeemable towards service, parts and accessories. Card holders get five points for every $1 spent at Toyota dealerships, and a buck a point for everything else. There’s no limit to the amount of points a card holder can amass. Points are redeemed at one percent (e.g. $2500 worth of groceries equals $25 down at your Toyota dealer). There’s no annual fee, and a zero percent APR for the first six months. After that? Seems that depends on you. Well, your credit rating.
What’s beyond irony? Farce? Whatever it is, the fact that Chevrolet decided to underwrite Christian Slater’s new NBC series entitled “My Own Worst Enemy” is it. The show’s “bumpers” featured the Chevrolet Traverse and the Chevrolet Camaro in split screen head-on action, supposedly reflecting the electronically-induced multiple-personality disorder suffered by the show’s main character. Or is that characters? Although I was busy surfing the net at several points during the show– checking to see if Autoblog was live blogging (“we know it’s Albright having intercourse with Spivey’s wife cause he strikes her on the buttocks”)– I don’t think the Traverse was ever shown in motion. I guess NBC suits decided that Spivey couldn’t be THAT much of a Mr. Mom. That said, the Traverse did survive a nearby bomb blast without a scratch. But where was the dismembered limb on the windshield routine? The silver Camaro was ready for its close-up when Spivey got bored and took Albright’s whip (don’t ask) for a little late hoonage..
While we await Andrew Dederer’s (or similar) translation, we are assured that Nissan has released this higher quality official version of their record-setting Nurburgring run to refute Porsche’s claims that their Japanese rivals were cheating. GTRblog.com says that “Nissan go on to say that the GT-R used in the official laptime was actually at a disadvantage due to up to 50 kilograms of testing equipment along for the ride. Offering Porsche some driver training lessons if they want to give it another try.”
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