Category: Marketing

By on June 30, 2008

walle.jpgIn today's Wall Street Journal, Joseph White proposes Three Vehicles Detroit Should Build. Y1) a seven-passenger vehicle that gets 30mpg highway, 2) a midsize sedan that gets 40mpg highway that doesn't cost much more than a Malibu or Camry, and 3) a pickup truck large enough to do real work and comes close to 30mpg highway. Worthy goals, indeed. But, Mr. White, may we suggest looking at what the competition already has on the market: 1) no current US market seven passenger gas-powered vehicle gets close to 30mpg highway. [Note: such vehicles exist overseas – assuming you don't look like the humans in WALL-E] 2) The Toyota Prius is the only midsize car that gets 40+ mpg on the highway, never mind that the Cobalt XFE can't hit that number on the side of a barn despite its stick, and 3) if someone builds it (a compact diesel pickup), will they come? What of high diesel prices and competition? And what if ALL of The Big 2.8 builds these self-same vehicles? Anyway, the D2.8 have enough to worry about just trying to survive the next year, much less leapfrogging the competition in the fuel economy department.  Of course, there's always the option of installing much smaller engines and asking customers to put up with 0 – 60 times up to 20 seconds, just like in the 1970's. 

By on June 29, 2008

xfe__xss2.jpgYou want evidence that GM takes TTAC seriously? I got nothing. You want proof that GM should lend us an ear, or another indication that the American automaker's just too damn slow? No problem. Back in April, Edward Niedermeyer flagged the fact that Chevrolet was [all too quietly] selling a higher-mileage Cobalt XFE with re-jigged gearing and low-resistance tires. "These are exactly the kind of common-sense efficiency improvements Chevy (et al) should spread across their lineup," Edward opined. Yes, the Detroit Free Press reports that "thanks to quick action by GM's engineering and marketing teams," the Cobalt's twin-under-the-skin Pontiac G5 also gets the mods and the new badge. Quick? Yes! Quick! "We saw fuel prices rising early this year, and rather than sitting on the sidelines in a Motown hole-in-the-wall knocking-back boilermakers worrying, we did something," Chevrolet spokesman Terry Rhadigan boasts. Unfortunately, it doesn't look like GM's going promote these "new" cars; Lordstown's maxxed out as it is. And GM's hasn't quite committed to the XFE concept. "Chevrolet may apply the strategy — and the XFE badge — to other model lines. Other GM divisions may do the same, although they might not use the same XFE badge." Hey, what's the hurry?

By on June 28, 2008

honda_accord_euro_tourer_medium.jpgPresuming, of course, you're reading this in North America, rather than, say, New Zealand. NZ's Otago Daily Times claims to be surprised (surprised I tell you) by the new Euro-Accord station wagon. "Its arrival comes as part of this month's rollout of an all-new Accord Euro, and completes a freshening of the Accord range that started when a new iteration of the larger, softer V6 was introduced earlier in the year." Not only was scribe David Thompson caught unawares by the Accord wagon, but his efforts to put the wagon through its paces were thwarted. "My plan to preview the new Accord Euro with an extended drive in the upper South Island was thwarted when fog disrupted early flights out of Dunedin at the start of last week. By way of partial compensation, I managed a short drive around Dunedin in one of the first new Accord Euro sedans to arrive here." And Davey was… unsurprised! "Not surprisingly, the car I sampled still felt a little tight mechanically." What exactly does that mean? Your imagination will have to fill in the blanks. Meanwhile, should Honda build an Accord wagon stateside?

By on June 27, 2008

sticker.jpgFirst, this was an easy call. Commodity costs have jumped significantly in the last year, eating into Toyota's– and everyone else's– profits. Second, as the new world leader, ToMoCo is best positioned to pass on those costs. Quoted by Automotive News [sub] CEO Carlos Ghosn admitted as much. "It's very, very difficult to move in a market without somehow the leader of the market (making a) move." Third, you gotta read between the lines here. "Our basic principle is to continue to work on cost reductions within the company first," said Toyota spokesman Paul Nolasco. "But we won't be able to avoid thinking about price hikes in the future considering a recent jump in raw materials costs." How… inscrutable. As I reported in General Motors Death Watch 182, here's real deal: Toyota wants to see what happens to the other guys– specifically GM– before upping its profits. "We'll make a final decision after evaluating April-June sales and production costs," a "top Toyota official" told The Nikkei business daily. 

By on June 26, 2008

Does it sound like a good idea to advertise the new Lancia Delta in the U.K. by showing Richard Gere frolicking with some Buddhist monks from Tibet? Odd? Certainly. Cute? Maybe. Problematic? Well yes, if you dislike the kind of lefty vegetarian sanctimonious Hollywood type Gere represents (which I don't). But could this spot really be a reason to apologize? Just-Auto [sub] reports that upon hearing of cockamamie protests from Beijing, Fiat kowtowed to the dictators in the People's Republic. "Fiat Group reiterates its neutrality in connection with any political matter, be it on a national or international basis. To the extent that the Lancia Delta advertising may give rise to misinterpretations of its well established position of neutrality, Fiat Group extends its apologies to the Government of the People's Republic of China and to the Chinese people." Yes, it hurts the Chinese Government's feelings that the pro-Tibet Gere is shown in some vaguely positive way in Tibet, or something. And it dismays us that Fiat, a car maker on the ascent, apparently didn't know what it was doing when it OK'd this ad, and obviously doesn't have a pair.

By on June 25, 2008

focuscoupcabrio03_hr.jpgThe things car makers do for love… Car companies in Germany traditionally offer journalists discounts of about 20 percent on new vehicles. Until now, this offer's been restricted to one car per year. Ford's cutting that clause: Automobilwoche reports journalists can now buy as many popular models for a bargain price as they want, and enjoy. Or, more to the point, flip 'em on the market for a few percent profit, and repeat. Other makers are expected to follow suit. Historically, journalists are considered a small but influential group– "opinion leaders" in the marketing argot. "Just like taxi drivers: not a large audience, but they are important, so they are worth some special consideration," says a German VW dealer. How much consideration? VW's generosity is worth 15 percent for new cars and 10 percent for pre-owned. The quoted dealer thinks VW's vig may soon reach Ford's levels: up to 25 percent, depending on model. Mercedes-Benz also grants 15 percent for journos. Porsche is parsimonious, offering no more than 10 percent. Most makes are (for the time being) stricter than Ford: Mercedes requires a minimum holding time of six months, and allows no more than two purchases per year. We're looking into the situation stateside, but we know Ford offers scribes the Ford employee discount…

By on June 24, 2008

curtis.jpgWell that was quick. After the Honda Clarity gave Jamie Lee Curtis' bologna a first name (O-S-C-A-R), some members of the mainstream media have cottoned-on to the fact that hydrogen has to come from somewhere. The UK's Independent newspaper thoroughly slams Honda and its sexy fuel cell car. "Is Honda's technologically dazzling hydrogen programme the long-term solution to CO2 pollution?" scribe Michael Booth asks. "Yes and no," he answers. "Mainly no. Almost entirely no, if you ask people who know." Booth argues that the fuel's a waste a time as it's created with conventional energy. The process merely shifts the site of pollution; it's like breaking wind and blaming the dog. Booth also notes that hydrogen fueling stations are notable by their absence. "Right now there is just one hydrogen station in the UK. Even Japan has only 12." Alas, Booth concludes by saying that electric cars should be our high tech future– and that's where his own arguments do him a disservice. Shifting the source of pollution from power generation? Check. Infrastructure problems? Check. Environmental problems from battery disposal? Check. Still, props for calling Honda's buff. I mean, bluff.

By on June 22, 2008

jamie-lee-curtis.jpgAs if. Still the woman once awarded "the best breasts in Hollywood" nod by every hetrosexual male in America is over-the-moon in love with Honda's PR-mobile: the hydrogen fuel-cell-powered Clarity. "Our family is going to pay for the privilege of having the chance to show, by action, a car that is an alternative to gasoline," she told CBS News. Note: "is going to." Yes, CBS and Jamie Lee are hyping the Clarity before it's been delivered. And once again, the mainstream media is happy to talk about hydrogen fuel cell vehicles as if the liquified gas in their tanks is made by zero-emissions pixies. Hello? It takes energy to make hydrogen. And that means CO2 and plenty of it (solar shmolar). While we await numerous opportunities to highlight this inconvenient truth, CBS points out the echt drawback to JLC's Clarity and its hy-powered ilk. "But the real problem with these cars is keeping them filled up – there are very few fueling stations. Even here in Southern California with the greatest concentratrion [sic] of stations, there are still fewer than 20. In the meantime, [Vasilios] Manousiouthakis makes do. His [hydrogen-powered Mercedes] car can only travel 80 miles on a tank of fuel, and the nearest hydrogen station is 10 miles from his home. On this day, the fuel pump is broken. With the nearest hydrogen station another 10 miles away, Manousiouthakis knows his car won't make it. "I need desperately fuel right now. I'm literally on fumes so I cannot get out," he says.  It takes two men and a consultant on the phone to solve the problem. "It takes commitment," says Manousiouthakis. Or something. 

By on June 22, 2008

hummer_32.jpgRetail issues aside? Like, um, the fact that GM's pulled the plug on the brand, assuring depreciation that would give a Maserati buyer the Willies? While I have no doubt that Autoblog's Dan Roth would tell us if he had someone in the HUMMER business, I also have no doubt that if he did, that person would be well pleased with Dan's blog on the doomed maker of militaristic SUVs. "Moving product is a tremendous challenge when the bobbleheads on the nightly news continue shrilly about the price of fuel and you've got a lot full of low-mpg, high weight trucks that happen to be a favorite target of vandals euphemistically masquerading as 'activists.' Customers that do make it through the door are looking for deals, and HUMMER will spot you five thousand bucks to take an H3, PLEASE." In other words, it's a great time to buy! "If you've got a boat to pull, and want to look like the Governator, an H2 could still be just the thing, and now you'll be able to find one for a song; most likely the blues." As Dave Edmunds sang, "Everything's wrong but nothing is right."

By on June 20, 2008

ford-f150-fx4-front-filed-800.jpgAfter losing its "best-selling vehicle in America" badge, Ford's F-150 has hit another pothole. Automotive News [sub] reports that the beleaguered Blue Oval Boyz are postponing the release of the all-new 2009 model by two months. The coompany says the delay will Ford can burn through its massive overstock of the outgoing model. Both F-150 plants will lose a shift this year, and one of the two will idle for most of the third quarter. These cutbacks are just part of the Ford's production slowdown. The Wall Street Journal reports that Ford will cut overall production by 25 percent in the third quarter, and by as much as 14 percent in Q4. "Ford has taken decisive action to respond to this accelerating shift in customer demand away from large trucks and SUVs to smaller cars and crossovers, and we will continue to act swiftly moving forward," says FoMoCo CEO Allan Mullaly. Ford also says its pre-tax earning will be worse in 2008 than 2007, and that cash burn will be higher than previously expected (by them, maybe). With $40b in liquidity, $23b in debt and $16b as good as spent to keep the turnaround on track until 2009, these cash burn issues are troubling, to say the least. Ford's stock reflects these concerns, currently down nearly 7 percent on the day. Paging Captain Kirk!

By on June 19, 2008

saturnastra.jpgLast year, when testing Saturn's Opel Astra, I really liked the car. But I also noted that it was obvious how hastily GM brought the import into the U.S. The leading indicator: the 24-hour clock and Day/Month/Year format on the display (time-traveling Michael J. Fox sold separately). For the 2009 model year, I'm happy to announce (to those of you that care) that GM has updated these critical functions to a more American-friendly format. The 24-hour clock gives way to a 12-hour clock for those that can't subtract 12 easily, and the date display will no longer make you think there are only 12 really long days in Febtober, the 25th month. Since it is a damn fine vehicle, the assumption might be that in the month when Honda Civic sales surpassed even the mighty F-150, the demand for any other small, practical vehicles would be at least somewhat higher. Alas, that was not the case. Saturn shifted 1091 Astras in May (contrast this with 1467 Hummer H3s). While these updates (and a new optional heated oil pan) are indeed exciting, one can't help but wonder how the Astra=– rated at a respectable-for-class 24/30 (with America-friendly 4 speed automatic)– would be selling with proper advertising support and an autobox that allowed them to advertise better MPGs. Rethink that.

By on June 18, 2008

mitsuslogan.jpgMitsubishi has decided to challenge Pontiac's slogan "Pontiac is Car" as the world's worst brand slogan. "Drive @ Earth" is Mitsubishi Motors' new catchphrase. The strapline will begin life in Japan and then roll out to the rest of the world. Mitsu's marketeers explain the slogan by pointing out that cars connect us to the earth and Mitsubishi has some cars with four wheel drive. (Shouldn't that be ON Earth, then?) The Japanese automaker also would like us press people to note that a lot of people want to "buy green" these days, so why not a Mitsubishi? (Why not indeed?) The worst part: I'm not making this up. Let's see… "Drive" is more than a bit over-used; it's half of one-fourth of Ford's new motto. The "@" symbol is a useless stab at modern e-vernacular. And "Earth" is as green-BS as it sounds. And where the Hell else are you going to drive, anyway? The slogan says nothing of Mitsubishi, let alone what their cars mean or why you should buy one. Must. Do. Better. Mitsubishi's U.S. sales are down 23 percent in May to 10,430 units. Next time, put th@ in your pipe and smoke it.

By on June 17, 2008

0801st_01_zlake_front_tourcadillac_escalade.jpgThe New York Times' editorial board is calling it. The SUV's Time of Death is… Black Tuesday. And while their headline says "RIP," what they actually mean is "may you rot in Hell you gas-sucking, planet-warming bastard." "It’s hard to convince most Americans that there is a silver lining to $4-a-gallon gasoline. But General Motors provided a nugget of good news when it announced that it would shutter much of its production of pickups and sport utility vehicles — and might even get rid of the Hummer, the relative of the Abrams tank unleashed on the streets in the cheap-gas days of the 1990s. It’s hardly the solution to global warming, or the country’s dependence on imported oil, but it’s a start." No ambiguity there, then. Nope. Nor is there any doubt– well, just a little– that high gas prices are just what the planet ordered. And can I get that with a side order of MORE taxes? "Expensive gasoline is not good news for most American families… Still, Americans’ response to rising gasoline prices makes an excellent case for a gas tax. It proves that drivers will change their behavior in response to high fuel prices. And even if Detroit doesn’t buy global warming, drivers can help persuade it to embrace fuel efficiency. They don’t even have to know that the Honda Civic emits less than half the 13 tons of greenhouse gases spewed by the Ford F-150."

By on June 17, 2008

hannity.jpgBack in August of last year, consumer advocate Ralph Nader sent an open letter to the FCC questioning GM's relationship to conservative radio and TV talk show hosts. At the time, GM said it didn't pay cash money to these pundits for favorable mentions; it simply provided free test cars and facility tours (all expenses-paid, presumably). Oh, and advertising. Lots and lots of advertising. Nader correctly pointed-out that "Section 47 U.S.C. § 317, requires broadcasters to disclose to their listeners or viewers if matter has been aired in exchange for money, services or other valuable consideration. Section 47 U.S.C. § 508, requires that, when anyone provides or promises to provide money, services or other consideration to someone to include program matter in a broadcast, that fact must be disclosed in advance of the broadcast, ultimately to the station over which the matter is to be aired." Yesterday, Rush Limbaugh talked-up his forthcoming free ride, the Saturn Astra. Apparently, it's "the most popular executive car in Europe." Rush gushed "We love GM." Last night, one of Sean Hannity's liberal guests (Fox's Hannity & Colmes) was touting the value of green technology (as opposed to drilling for oil) in America's quest for energy independence. "I know about new technology. I'm driving a Chevrolet Tahoe Hybrid" Hannity said. It's high time the FCC put an end to this craven commercialization. Or, to call it by its real name, payola.

By on June 17, 2008

09flex-richardgresens_04_hr.jpgFord is accustomed to leaving products to die on the vine: Crown Victoria, Lincoln LS, Ranger, etc. Apparently, no more. Speaking to Automotive News [sub] about the Flex, Ford's design director Horbury found it "odd" that the design team is already working on a reworked design while the vehicle is still brand new. "To be working on the next one immediately is quite unnerving. It is strange, really." According to Horbury, the Flex's doors, greenhouse and glass are staying put; everything else is up to the designers. As those three elements are especially trick, we think this is the right kinda bold movement. And if you consider the money-making Mustang's countless iterations as mid-cycle refreshes, this type of thinking is doubly true. It sounds as if we can expect big changes, especially as Ford's internal research has shown that small changes aren't enough to bolster sales. Proof, pudding, time, tell. 

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