Automotive News (sub) reports that ToMoCo is increasing prices on 11 Toyota and Lexus models by the end of the month. The hot-selling Yaris will see a $200 jump in base price, The sedan ascends to $13,085 while the hatchback's sticker rises to $12,210. The Prius' price will reverse its downward trend, adding $400 to the Moroni, for a new base MSRP of $22,160. The FJ Cruiser will see the biggest increase, adding $500, for a new base price of $23,730. All Toyota-branded vehicles will increase by comparable amounts– with a few notable exceptions (Sequoia, Tacoma, 2009 Corolla and Matrix). Lexus models will increase even more (expect to pay an extra $900 for an LS460) except for the new IS-F, which will remain unchanged. Why the price bumps during a period of weak sales? "Price changes were made to keep up with current economic conditions and the rising cost of major components," A ToMoCo spokesman demurred. "Materials in global markets have gone up. We have made an effort to absorb some to the cost while still protecting our price position." Hmm, weak sales and rising costs? Get the band back together, 'cause it's looking like good ol' stagflation all over again.
Category: Marketing
Once upon a time, Americans didn't drive around in Kleenex-mobiles designed to be dis-car-dead after an obligatory three to four years. OK, they actually fell apart in that time. But the thrill of the new– what came to be known as planned obsolescence– wasn't always the industry's main selling point. A lot of folks bought the Model T or an early Buick because the cars were built to last. Outside of pickup trucks, I can't remember the last time I saw a car company advertising the longevity and mechanical quality of their products. Sure, there's some noise about "precision engineering" and "legendary reliability" (e.g. the new, more epically epic Toyota Sequoia). But when was the first/last time you heard a manufacturer claim that "our cars are built to last?" Well then, I guess it's time to rethink Nissan. The Japanese automaker has decided to tout the durability of its cars– especially the Altima– in TV ads and on the web. They're talking quality testing and "years of durability." Yes, an upgraded warranty would have placed currency in their oral cavity, but I think it's fantastic that Nissan is actually suggesting that you buy a car for more than 20 minutes. In these days of tanking vehicle sales, how long before someone nabs Patek Phillipe's strapline (so to speak): choose once, choose wisely?
Manufacturers' blogs are a terrific development. Not because anyone other than OCD automotive journalists, company flacks and devoted fanboys actually read them (check out the number of comments on GMNext or the quality of the [pre-screened] criticism on Bob Lutz' GM Fastlane). No, the cod web 2.0 carmakers' sites are valuable because they reveal their originators' view of themselves. So when I encountered a video blog entry on GMNext titled "That's a Saturn!", I clocked the spear (a.k.a. exclamation mark) and reckoned it was boilerplate PR. Pressing play revealed Saturn's brand managers had aimed a camera-shaped nine mil at their feet. The company debadged a Saturn Astra, parked it in the locus of American car culture (the California coast line), and asked a carefully edited selection of passers-by to identify the brand. Guess what happens GMNext? "The interior looks like some of the newer Toyotas." "I feel like it's a Toyota." "Looks like a Mazda." "Either a Honda or a Toyota." "I'd go with Honda." "Honda." "Actually I changed my mind. It's a Dodge." When the actual brand is revealed, the interviewer asks "Does it look like your run-of-the-mill Saturn?" Ouch. Meanwhile, one wonders what comments got left on the cutting room floor (It's an Opel Astra) and why in the world anyone would ever want their product mistaken for a Dodge. [NB: We're going to add a Whiskey Tango Foxtrot award to The Bob Lutz Award TTACNext time out.]
Desperate times lead to desperate measures, and Chrysler is about as desperate as they come. Or is that deceptive? First, the facts as we know then: ChryCo's just announced a new sales incentive program in "response to direct customer feedback citing the prospect of rising gas prices as a top concern." So now, anyone buying a "new and unused" Chrysler product in the U.S. can enroll in the "Let's Refuel America" promotion. They'll receive a gas card that lowers their price for gas to $2.99/gallon for three years. Participating customers will receive a card (with a PIN number) for deployment "at an eligible gas station." The card's good for regular gas, E85 or diesel fuel. After fueling is complete, the customer's personal credit card is billed at the rate of $2.99/gallon. The promotion runs until June 2, 2008. There's more fine print, but here's the big kahuna: Chrysler buyers get the card in lieu of "other incentives." Do the math, compare gas cash saved over three years vs. money not saved by discount, and, as the bard once said, "things are not always what they seem; milk can masquerade as cream." Anyone want to make any guesses on how much this deal will end-up costing Chryslerberus? Oh, and don't forget depreciation. Once ChryCo files for C11 the cards will be worthless. Of course, at that point, trade-in values won't be anything to write home about either…
Chrysler executives are taking on what may well become the world's worst job: a customer satisfaction survey. The Chrysler 300– the number of homoerotic Spartans executives calling one customer per day— will be competing "to see who can generate the most successful sales referrals." ("Hello, I'm Bob Nardelli. Please buy one of our cars so I can win a sales bonus. PLEASE!") The Detroit Free Press say Nardelli's boys want to "bring the company closer to our customers but also to bring our customers closer to the company." Not one to miss a chance to pimp for consulting, Dave Sargent of J.D. Power gushes, "I've never heard of anything on this scale." This is not the first time Chrysler's jeffes have tried to rappel out of the corporate penthouse. Hey, whatever happened to that program where the suits drive used Chryslers? Anyway, at the advertised calling rate, it would take Chrysler's highly-paid "change agents" 707 days to reach the 212k customers hit by the most recent Sebring recall. Who's running the office pool on how long this program lasts? [Welcome to longtime TTAC commentator John Thorner as our latest blogger. We hope to see more of his work soon.]
Kia wants to cut back on its reliance on ye olde cash on the hood and increase its brand awareness in the U.S. To that end, the Korean automaker is launching a new ad campaign today that "continues to emphasize the thriftiness of its product line in times of escalating gas and food prices." BrandWeek reports that one ad shows a Kia Spectra in front of a gas station while a narrator proclaims: "Now, more than ever, you want to get the most for your money." And an ad for the Kia Sportage claims the CUV is priced "about $6,000 less than the Toyota Rav4 Limited; or, to put it another way, a whole year worth of groceries less." Kia's marketing director is suitably upbeat about the downbeat American economy. "It's not all doom and gloom; in fact we believe the opposite," says Tim Chaney. "People are still shopping for cars, albeit less than before, and we are in a good spot." Chaney took over as marketing maven back in February when his predecessor, along with CEO Len Hunt, "were let go." Time will tell if this new team can pull Kia's image out of the background noise.
A sports car? An economy car? A pickup truck? A genuine off-roader? A soup ladle? The reincarnation of an '87 AMC Eagle? Oh wait, maybe the last one. Anyway, the official pre-ad campaign press release reveals that Spartanberg's finest– the X6 "SportyActivity Coupe" — is about to get the Star Wars Episode IV "A New Hope" treatment. The company will project a holographic image of Bimmer's new car truck SAC in the lobby of four prominent Wall Street enclaves (so to speak), complete with the message "You must see this droid safely delivered to Alderaan." The ad agency that devised this hi-tech, what's the word? Solution, clearly understands the vehicle's WTF factor. "The BMW X6 doesn't look like anything BMW has ever produced — you have to see it to believe it," said Duff Stewart, President and COO of GSD&M Idea City. "Our goal was to put this amazing vehicle in front of its best prospects and stop them in their tracks." How come those ad guys never say "and buy it?" BTW: BMW says the X6 is "Coupe's evil twin."
The last time we heard from Chrysler's Camcord-fighting "Project D" development team, we learned that Chrysler "star engineer" and Project D leader Mike Donoghue had bailed, amid rumors of an Acting Chief Innovation Officer ego-trip. To assure themselves as much as anyone else, Cerberus rolled out a little hype information to the Detroit News on its midsize do-over. There's little talk of the actual cars themselves in the story, as most of the ink is spilled on the importance of the segment to Chrysler and how miserably its efforts have failed to capitalize on demand. "The problem is everyone is getting really, really good in that segment," says Todd Turner of consulting firm Car Concepts. "Chrysler's current entries are probably the weakest in the marketplace, not just in terms of sales, but in customer satisfaction." Ouch. But fear not, because Chrysler gets it... just don't ask for any specifics. Without revealing any details of the actual products which will make it to market (besides the fact that there will be sedan and crossover body styles… shocking!), Project D's new leader Mike Chernoby wants everyone to know that the new D-segment offering will totally rule. "We will manage the time line accordingly to always make sure we have a product that will satisfy the market place," says Chernoby. "You can take that to the bank." Sounds great, as long as Cerberus foots the overdraft charges.
In a classic "pay no attention to that investor behind that curtain" diversion, Ford sent out not one, not two, but FIVE press releases about the debut of Shelby GT500KR in rapid-fire succession. The first piece of KR PR gives the uber-'Stang's specifications (330 cu. in./5,409 cc, 540 hp @ 6,250 rpm, 510 lb.-ft. torque @ 4500 rpm, 6,250 rpm redline and Roots-type supercharger, air-to-water intercooler with Ford Racing cold air intake, if you're curious). The second brags about its handling and aerodynamics ("Our computer model predicts a four-tenths-of-a-second zero-to-150 acceleration effect from the aero alone. That makes the horsepower go farther."). The third praises– I kid you not– how it sounds ("Hearing the new KR just gets your blood flowing. It's a rumble that true enthusiasts will love and competitors will dread."). The fourth waxes eloquent about the carbon fiber hood ("The hood is a sculpted work of art, with the right science under its skin to deliver real performance impact."). And the fifth points out it's "the most powerful production Mustang ever." None of them mentions the price or how much dealers will jack it up. Now, let's see what's happened with Tracinda…
VOLKSWAGEN LAUNCHES MULTI-PLATFORM POLLING INITIATIVE TO FIND OUT “WHAT THE PEOPLE WANT." We could start with upper and lower case typography, proceed to cheap, reliable transportation, detour to a dealership that isn't a stealership and call it good. Of course, VW's not really asking for your (or anyone else's) opinion. At best, they're looking to confirm their expensive research data. But the real point of this campaign, like the Chrysler Listens marketing mishegas: pretend to be web 2.0 to spread your pre-established marketing message. But don't make my word for it. "Utilizing media, technology and user-generated content like never before, the campaign allows consumers to engage in live online and mobile polling. A real-time mouthpiece of the people’s collective voice, user-generated live polling begins at the hub site, vw.com/whatthepeoplewant, and then spreads across the web and in-market. The initiative is part of Volkswagen’s new global brand platform, Das Auto, and underscores its fundamental message of It’s what the people want." Their emphasis– which sounds a bit, uh, forceful. Oh, and VW claims that it already "knows" that "65% of the people want boxers not briefs." Yeah, that info will help re-build your brand…
Plug-in Volt, hydrogen fuel cell Equinox, two-mode hybrid Tahoe, belt-assist hybrid Malibu, yada, yada, yada. With all this high mileage hype, how come GM's not making a big deal out of the XFE (eXtra Fuel Efficiency) Cobalt? If it weren't for our good friend at AUTOSAVANT, we would've never known that as of May 17, all Cobalts with the five-speed manual tranny get 36 mpg on the highway. (That's second in its class to the Honda Civic Hybrid AND the Cobalt XFE offers class-leading hp from its 2.2-liter Ecotec engine.) GM squeezed the last few mpgs from the Cobalt by calibrating the engine, decreasing the tires' rolling resistance and (probably) offering a taller fifth gear. These are exactly the kind of common-sense efficiency improvements Chevy (et al) should spread across their lineup. Yes, well, come the '09 model year, the Cobalt sedan will no longer be available with a manual transmission. So if you want best-in-class horsepower and efficiency from a four-door, buy a Cobalt XFE now or you'll be looking at the Civic. Because practical, efficient cars just aren't Chevy's future, are they? Oh wait…
Regular readers will know of the kerfuffle following our decision to call-out the pudenda-nosed Subaru B9 Tribeca's front end for having a "flying vagina" design. In fact, we'd like to take credit for the Tribeca's redesign, which traded a passion for private parts for a Pacifica pastiche. But we in no way accept responsibility for Subaru's new ad campaign, which focuses on owners' big love for the brand. "Subaru owners are 'experience seekers' — they want to live bigger, more engaged lives," reveals John Colasanti, CEO of Subie's ad agency. "They choose Subaru as a conscious alternative to the mainstream. [ED: Is that a nod to the brand's lesbian following?] To them, the car is the enabler of that bigger life. [ED: Is that another nod to size queens? Does this have something to do with the naming of the Outback?] By focusing on the love they have for their car, Subaru is challenging non-owners: do you love your car?" Yes! Yes! YES! I'll have whatever she's having. To be fair (WTH, it's Friday), the new Subie ads are split into three tiers: The Heart, The Brain, and The Wallet. So this smutty stuff is all in my head. So to speak.
According to Reuters UK, Sony's senior producer for Gran Turismo has revealed that Japanese consumer electronics giant has changed the videogame's, uh, emphasis. Taku Imasaki says "Our goal is to become another medium for car companies [to run ads], like magazines and TVs." The admission comes hot on the heels of a "teaser installment" of "Gran Turismo 5 Prologue," for PS3 (the full version of the driving simulator is due next year). Embedding automakers' ads into the game is just the beginning. Imasaki-san says "Ideally we could become the MySpace or Facebook for auto enthusiasts." As Sony's PS3 is fully net compatible, the commercial opportunities are endless (e.g. "click here for a real world test drive."). There's no word [yet] on more "subtle" if fast becoming "traditional" in-game advertising– background billboards, sponsor decals, architectural features (gas stations?). It appears that some of the world's best cars are already powering down that slippery slope.
Mazda announced today the new Mazda6 will go on sale this summer. As with the Accord, the U.S. version will be market-specific. In PR-speak Mazda's new whip was "designed and engineered for the needs, wants and desires of the North American customer." The American variant's base engine will be a new 2.5-liter four-banger with an available 3.7-liter V6. The four comes with a a six-speed manual or 5-speed automatic. Going for the six will get you a six-speed Sport AT automatic with manual-shift mode. There will be three trim levels: Sport, Touring or Grand Touring. Prices for each are yet to be announced, but we're assured all three will come with "Zoom-Zoom" "in large doses." How quantifiable is that?
When TTAC received a terse tip from one Allen Hannawell asking if we'd seen something called Rampenfest, we were immediately suspicious. A quick check of our users, a Google search and an exchange of emails exposed Mr. Hannewell's corporate connections to BMW. Tsk, tsk. And yet… the "mockumentary" is funny as Hell. It chronicles the yokels of Oberpfaffelbachen as they attempt to launch a BMW 135 into America via a colossal ramp. The characters deadpan through the turmoil of a town turned upside-down; the Bavarian brogue duologue is hilarious. There's a lot of meta-comment about the nature of marketing, which proves that the folks who made the thing are clever and ironic, and not much else. (Hannawell's final email to TTAC says BMW will eventually admit that Rampenfest is an ad. Wow! Really?) After watching the whole thing– a significant temporal investment– I still don't understand how the film is supposed to make me want a 1-series. That was the point, wasn't it?


Recent Comments