Toyota’s been pulling its punches in the U.S. market for years– to avoid the political backlash and lowered profits that a Chrysler, Ford and GM’s collapse would create. Surveying the damage left by a 32 percent drop in September sales, ToMoCo is now saying fuck that shit [paraphrasing]. “The ‘Saved by Zero’ ad campaign began Oct. 2,” Automotive News [sub] reports. “It promotes a 0 percent financing program on 11 vehicles. Dealers say Toyota will shell out at least $250 million this month to cover the cost of the subsidized loans and to fill the airwaves with commercials. Calling it ‘mind-boggling,’ one dealer who asked not to be named said he doesn’t believe Toyota has ever spent so much in a single month on incentives and advertising.'” [That’s what passes for independent, authoritative sources these days.] As one of only two AAA-rated auto lenders (GE Capital is the other) left in the biz, Toyota Financial can do what its competition can’t. And even though U.S. consumer confidence has hit the skids, whatever’s left will soon be headed ToMoCo’s way. In other words, the Japanese automaker is about to eat the lunch AND dinner of the aforementioned domestics.

OK, so I’m not convinced this full-size sedan shootout deal isn’t important for Hyundai. In other words, America loves an underdog. And while there’d be a lot more love if the underdog in question was American, as the alpha dog in the cross-hairs is German, well, that’s that, really. And this whole tugging on superman’s cape deal couldn’t come at a better time for the Korean brand. While no one would cross-shop a Genesis against a 7-Series, never underestimate the power of making class-bound shoppers feel good about not being able to afford something better. VW NA was born of reverse snobbery– and abandoned that market position for MOR. If the Phaeton had been priced at $35 to $45k… Anyway, Hyundai’s also in tune with the political climate. By “going negative” on BMW, they tap into the prevailing “I hate fucking everyone” gestalt. And you know what? I want to drive one of these Genesis things. FAST.

Paris 2008: The Girls

Be still my beating heart. Autoblog’s Sam Abuelsamid is about to live blog (nearasdammit) Audi’s Mileage Marathon. Yes, he’ll be in one of 23 diesel-powered Audis that will “roll out from Manhattan’s Tavern on the Green on a trans-continental trek to demonstrate diesel efficiency.” While I respect anyone with the patience and anal retentivity needed to hypermile for at least three days– in the same sense that I respect anyone who can conjugate Latin verbs– I predict this won’t go well. And I don’t mean “won’t go well” as in something exciting will happen. More like how can a hypermiler do his or her stuff with 22 other vehicles surrounding them? Not to mention the quandry of achieving high mileage when your 23-strong fleet must accomodate over 200 journalists. And what of Justin’s suspicion that the TDIs don’t really count, as they’re Euro-spec ringers? Anyway, who cares? As we’ve reported here ad infinitum, the diesel engine thing is on the wane in Europe, and hamstrung stateside by fuel prices and an oil burning engine price premium. The most important question here: will Audi be flying Sam and his mpg-seeking cohorts back to the East Coast in coach, business or first? And how much fuel will that burn?

Obviously, TTAC has no problem with car manufacturers targeting gays, lesbians, bi-sexuals, transsexuals or herbisexuals for any given brand or model. But we do expect carmakers to do so with a modicum of common sense. Pitching the new Chevy Traverse at gay men is like suggesting that Barack Obama should show up at his rallies in a Maybach Exelero. Hang on. Cool! OK, it’s like suggesting that soccer Moms should buy a Pontiac Solstice. Actually, they should– just to get away from the kids for a few hours. And keep Alzheimer’s at bay by trying to erect the Solstice’s top. Is that sexist? Damn! Alright, try it this way. GM’s marketing mavens should know that the Chevy Traverse is to the Mazda Miata what Chuck E. Cheese is to Fire Island. Or something like that.

An eagle-eyed TTAC commentator unearthed this little gem from AutoWeek of April ’07. Like Mr. Chen, I think it’s sufficiently germane (House Bunny!) to last month’s Flex sales that it deserves resurrection. “The pivotal moment in the Flex’s development came, Ford design chief J Mays said, when he and his North American lieutenant, Peter Horbury, convinced the rest of the organization that rear sliding doors cost too much. Even though the Fairlane concept that inspired the Flex had suicide doors, the production vehicle was being planned with rear sliders. ‘When we took the sliding doors off, suddenly there was money in the product program freed up magically to put higher-grade materials, fantastic-quality leather, 8-inch DVD drop-down screen in the back, optional refrigerator, glass roof,’ Mays said. “Suddenly money was falling from the heavens because we didn’t have those damn sliding doors on it anymore.” So, Ford says it sold 1,959 Flexes in September, 7552 year-to-date. (Early sales stats were pinned on a slow roll-out.) Meanwhile, Ford’s “other crossovers” have tanked. The Ford Edge slipped 43 percent for the month, while the Taurus X was down 63 percent. Should the Flex have been a minivan? Or… not bothered in the first place, and promoted the Hell out of the X instead?

Up to September, Toyota was weathering the new sales storm with relative grace. Sales volume has been dropping, but market share never declined the way it did last month. To stop the bleeding, ToMoCo is announcing a zero-percent interest promotion, hoping to lure in showroom traffic in a tight credit market. Of course luring in traffic and offering truly great deals aren’t one and the same. Toyota’s most popular and fuel-efficient cars are conspicuously absent from the list of qualifying nameplates, which includes Matrix, Corolla, Camry, RAV4, Highlander, FJ Cruiser, 4Runner, Sequoia, Sienna, Tacoma and Tundra. Further limiting the impact of this promotion is the increasing rarity of “well-qualified buyers.” Automotive News (sub) says one reason Toyota is reaching for incentives is the relative success of GM’s “Employee Pricing For All” deal, which is credited with helping the General regain ground against Toyota in September. Ultimately, Toyota may be the only automaker with the financial resources to offer low interest deals on so many vehicles, including the compact Corolla and Matrix. “And at the end of the day,” says Christopher Richter, an auto analyst with CLSA Asia-Pacific Markets “I don’t think the costs to Toyota will be that great.” There’s no doubt that showroom traffic should increase, and even if sales don’t pick up dramatically, the offer places a foot on the throats of Toyota’s value-positioned American competitors. Stay tuned for more details when October sales numbers come out.

Well, if THAT doesn’t inspire your inner snark, nothing will. Brandweek reports that the HUMMER FOR SALE brand is proceeding with its launch plans for the new H3T with a new TV ad that hit the waves (cable? fiber? net?) last night. The ad by “Creative, via Modernista, Boston, shows a group of buff young men driving an H3T across a mountain range onto a rocky beach where they unload a motorcycle, a surfboard, a hang glider and fishing gear. The spot reveals all of them using the gear for outdoor activities. It uses the same tag, ‘Welcome to the Open,’ which was introduced by Hummer in May for the H3 campaign and for the whole brand” Yeah, that’ll work. ‘Cause gay men love HUMMER. No, wait. That’s not it. “The H3T buyer tends to be more active as well as more family oriented,” according to Hummer rep Nick Richards. “The buyer is looking for even more room than an H3 provides.” And that ain’t sayin’ much. Richards reckons that HUMMER counterparts, including the Dodge Ram and the Ford F-150, give the H3T a “fresh in the market” appeal. Whatever that means.

Well, GM’s Employee Pricing for Everyone (except for GM workers in Michigan) deal is done. Whether or not the offers “pulled forward” sales that will make the winter look as bleak as Milton Keynes [UK] on a wet Tuesday afternoon is anyone’s guess. The impact of the GM’s ongoing cash-on-hoodlumism on its cash flow and brand equity is equally unquantifiable (though no prizes for guessing that one). But one thing we do know: GM’s replacing the Employee Pricing sale with zero percent financing on select models until 2020. I kid. It’s only six years (2014). “The longest loans are available on large sport-utility vehicles such as the GMC Yukon and Chevrolet Suburban, as well as the Pontiac Grand Prix sedan,”  GM spokesman John McDonald told Bloomberg. “Alternatively, GM is offering up to $7,000 cash on some vehicles.” TTAC will report the full list of what’s what ASAP. Meanwhile, we suspect that the zero percent finance deals will require sterling credit, an FBI background check, a urine test, an oral examination and a home visit. But this will not be the focus of the ad campaigns. Obviously.

Information Week reports that GM will be relaunching GMNext as a PR brainwashing social networking site. Apparently, they think it will make a difference. “It’s hard to put a specific dollar value on this but it’s something we have to do,” GM social media manager Natalie Johnson declared, before refusing to reveal how much GM is spending on the re-hype. Johnson cited CEO Rick Wagoner’s “Don’t Worry, Be Happy” video as an example of how the internet allows executives to “answer some tough questions in a very candid and frank way.” Uh, hang on; the Wagoner clip was on GM’s FastLane blog, not the [existing] GMNext website. Anyway, here’s the CEO’s one and only reply to 73 comments…

To everyone who’s commented,

Thanks for your terrific feedback. We appreciate your passion, ideas and support. This gives us a good idea of what’s on your mind. Unfortunately, I’m unable to respond to all of your comments individually right now, but I have read them. Over the next few weeks other GM leaders will offer their perspective about different areas of the company, and you’ll continue to see GM team members respond to many of your specific questions. That said, I would like to thank Ben for his CTS-V purchase; and please tell your girlfriend that I hope she enjoys her new Sky.

It was great to see many of the comments about the Chevy Volt. Since the beginning, we’ve been open in discussing the Volt’s development, progress, and challenges. Perhaps it makes the Volt’s production date seem a long way off, but at the same time, hopefully it’s interesting to be able to look through the same microscope we are. I agree with those who say Volt isn’t the only solution — it’s clearly not, which is why we offer many hybrids today, have 18 2009 vehicles that achieve 30 mpg or higher highway fuel economy, and are doing extensive work in biofuels, including cellulosic.

I assure you that the GM team is working hard to reinvent the automobile and our company . . . and we’re doing it in the midst of a very challenging environment, but we know we can win.

Thanks again for your interest and comments, and please keep them coming.

Rick

Well, now that NBC’s lawyers have swooped down on the net like a helicopter appearing from out of nowhere, we can’t warn you not to click on a link to the entire episode of last night’s Knight Rider– the only TV show in the history of the world (ever) that can make Bewitched seem like Beowulf. Watch the preview above, but do not view the latest episode of the latest Knight Rider; you will never get that 42:38 seconds back. But if you feel you must, I highly recommend Autoblog’s live blog log as the best way to navigate to/around the truly excrutiating bits. Normally, Autoblog’s unabashed, puppy-dog-like love of all things automotive makes their PR-inspired analysis the equivalent of listening to an over-earnest co-worker describing a particularly boring meeting while he’s pissing in the adjacent urinal. But this time, Alex Nunez provides us with comic friggin’ gold. Or, if you prefer, haiku hilarity. “8:08: A Cobra (helicopter) shoots a missile at our fearless heroes. It is the world’s slowest missile.” I swear this is Autoblog’s. Best. Post. Ever.

You may recall (or continue to choose not to if you work in Motown) that 2007 marked the first year when more U.S. new car buyers shopped for Asian than American brands. The trend continues. Automotive News had a look at J.D. Powers’ recent stats on the subject and provide the takeaway: “The Asian edge grew in 2008, with 63 percent of buyers considering Asian cars and 55 percent American cars.” Yes, there’s overlap. And yes, “consideration” led to sales. “In a survey of nearly 30,000 new-car buyers conducted between May and July, J.D. Power found that Asian vehicles won out for 58 percent of buyers who considered both American and Asian new cars, up from 55 percent in 2007. Only 40 percent of consumers looking at cars from both regions chose American autos, down from 43 percent last year.” It gets worse. A lot worse. “Those who decided on American products cited a desire to buy American and the incentives that U.S. carmakers offer as their top two reasons for choosing an American brand. Those who bought an Asian vehicle cited better retained value, reliability and gas mileage as their top three reasons for choosing a car from that region, according to the survey.” And worse. “Consumers cited high prices, high monthly payments and low gas mileage as their top three reasons for rejecting a vehicle, the survey found.”

Talk about a sign of the times… Just as GM announces it’s done running Super Bowl ads, Hyundai tells BrandWeek it will be running two 30-second Super Ads for its Genesis Coupe. The announcement comes as Hyundai transitions ad agencies from Goody (which will handle the new Genesis spots) to South Korea’s World Marketing Group. Hyundai has spent $155m this year on measured media advertising, while GM franticly slashes at its $2b ad spend. Last year marked Hyundai’s first Super Bowl ad, an opportunity well spent promoting its landmark Genesis sedan. Yes, well, the Genesis sold only 1,826 units through August. Of course, the product is a major shift for Hyundai’s brand image, and it was launched into the weakest new car market since the last time bankers were jumping off buildings. Regardless, Hyundai marketing boss Joel Ewanick says the Genesis is on track to hit its goal: 8k sales by year’s end. And Hyundai is gaining market share despite down sales. So get used to seeing foreign firms like Hyundai fueling the advertising spectacle that is Super Bowl advertising. Who knows, we may even get to watch Tsingtao and Tsingtao Light throw down in an annual “Tsingtao Bowl” at halftime.

The Mazda3 is a perennial TTAC ten-bester, and a top pick for those who want some fun with their practical transportation. Now Mazda President Hisakazu Imaki worries aloud to Automotive News (sub) that introducing its Mazda2 subcompact could cannibalize sales of its long-soldiering Mazda3. “The Mazda2 is a very good product, and we’ve received very strong requests from dealers. But it is still under study,” says Imaki of the 2’s chances at a North American debut. “But I must also say that I don’t regret that we haven’t been able to supply the car thus far.” Beyond cannibalization of the 3 in the short term, Imaki worries that a moderation in fuel prices could slacken demand for the 2. Mazda sister company Ford has already commited to bringing the Mazda2-based Fiesta to America, but then it doesn’t have to worry about squeezing its volume sales leader to fit the Fiesta into its portfolio. Still, Mazda would be crazy to not bring the Yaris/Fit Fighter stateside. The 3 has set a consensus standard for fun-to-drive compact cars, and bringing the Zoom-Zoom attitude to the (on fire) subcompact market could only expand Mazdas brand. Honda’s Fit sells briskly even with dealer markups, in large part because it’s economical, practical and fun to drive. For some reason, nobody at Honda worries about it munching into Civic sales. Dear Mr Imaki, your concern is well taken, but it’s largely unnecessary. For a textbook example of real automotive cannibalism, please reference GM’s Lambda Platform. And bring on the 2 already!