Category: Marketing

By on October 6, 2011

When we reported sales on Monday our conclusion was that “big is big again,” as full-sized pickups dominated growth in a surprisingly up month. So, how do you sell a ton of trucks in a month where gas was still hovering around the $3.50/gal mark? Easy: just throw some cash on the hood. Edmunds Autoobserver reports

From a low that generally occurred around April, Ford Motor Co., General Motors Co. and the Chrysler Group LLC have markedly hiked incentive spending on full-size pickups. In April, the average TCI for the full-size pickup category – which also includes the almost statistically insignificant Toyota Tundra, Nissan Titan and Honda Ridgeline – was $3,261 per vehicle. At the end of September, the average incentive for full-size pickups ballooned by more than 30 percent to $4,281 per vehicle.

Executives from the Detroit automakers insist that this was not simply an inventory-clearing move (because, by industry standards, having three times your monthly sales on the lot is “acceptable”), but manufacturers have been trimming truck production all year and with Days To Turn rising, clearing off the lots makes sense. Especially going into the traditionally slow truck sales months of October and November. Hit the jump for more September incentive and transaction price data…

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By on October 6, 2011

With ‘ring times back in the news thanks to a new feud between Dodge’s Viper ACR and Lexus’s LFA, GM took its forthcoming Camaro ZL1 to the Eifel Forest to record its own time. The best lap time of 7:41:27, according to Motor Trend, was set by lead development engineer Aaron Link (some outlets are reporting the time was actually set by GM NA President Mark Reuss himself), although Reuss does have some his own impressions to add, telling MT

“It’s power all the time, capability all the time, and the steering and tractability of the car is just phenomenal,” he told us. Reuss also told us that this Camaro easily (and often) hit speeds of 170 mph on the ‘Ring’s back straight, and that even from those speeds the ZL1 exhibited, “Some serious braking power.” Reuss added, “We never faded the brakes on it… It’s one of the easiest cars I’ve ever driven to drive fast and hard. Everybody’s going to have a good time with it.”

But is the ZL1’s time, as Reuss apparently told TrueCar, “the fastest lap time recorded by ANY production vehicle costing less than $75,000”?
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By on October 5, 2011

Onstar may have been pressured by privacy activists into dropping changes to its terms of service, but the telematics service is still betting that people want to be more connected than ever. So much so that it’s going offer a service allowing you to rent your car out to strangers.

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By on October 4, 2011

[Editor’s note: videos are from Youtube, and were not taken by the author]

“THE BETAS ARE COMING!” The mid-August e-mail from Tesla Motors breathlessly touted “the most exciting automotive event of the year:” an exclusive owners-only unveiling of the Model S. All 6,000 of us who’d put down $5K deposits on the electric sedan would be invited out to Tesla’s sprawling new plant in Fremont, Calif. to see, touch, and ride in the Beta version of the car, described as “over 90 percent production intent.”

A few weeks later came the e-mail invitation itself. I RSVPed the same day. Tesla had expected attendance in the hundreds, and had made initial plans for 1,000 just to be safe. But when 300 RSVPs came back in the first 23 minutes, they realized they had a tsunami of customer enthusiasm on their hands. In the end, about 2,000 owners showed up, including one guy from Kazakhstan.

Driving my rented Prius up I-880 toward Fremont on the big day, I passed a factory with huge letters on the side: SOLYNDRA. Not a good omen. The start-up Silicon Valley manufacturer of high-tech cutting-edge solar panels, the recipient of half a billion dollars in government loans, had lost hundreds of millions of dollars and just gone bankrupt amid cries of political favoritism and financial fraud.

A mile or so up the road, another sprawling factory festooned with giant letters: TESLA. A start-up Silicon Valley manufacturer of high-tech cutting edge automobiles, recipient of half a billion dollars in government loans, currently reporting annual losses of hundreds of millions of dollars….oh, never mind.

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By on October 3, 2011

I’m sure the resident anti-GM-bias patrol won’t look kindly upon this double-dose of Volt skepticism, but at the point that GM’s Volt production is ramped up well above its sales rate, we should be paying attention to what GM is saying about the challenge of marketing the Volt. Automotive News [sub] reports that it’s still too early to compare Volt and Nissan Leaf deliveries in terms of a competition, arguing

Chevrolet and Nissan are still selling to early adopters and green enthusiasts and will be for most of the coming year. Their real challenge is to learn how to market the high-profile cars to mainstream U.S. consumers in mass-production volumes in 2012 and beyond.

To prepare for that, both automakers are using 2011 as a sort of practice year, taking notes, tinkering with tactics and honing their marketing messages.

And according to GM sources, there’s a lot of honing to do…

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By on September 28, 2011

In the annals of poorly-chosen songs, this one is right up there with the State of New Jersey’s almost-decision to make Springsteen’s “Born To Run” the state song. Yes, Maserati, you can do anything, you can be anyone… and you’re choosing to be the brand that pimps upgraded Grand Cherokees by invoking the ghost of Fangio over crappy power-pop. Do you really want to be reminding viewers that this is a conscious choice, picked from an infinite range of options? Because that kind of willful douchbaggery makes you, Maserati, look like you’re a half-step from becoming the official luxury brand of Jersey Shore.

By on September 26, 2011

[Editor’s note: the following block-quoted passages were sent to us by an enterprising anonymous tipster (italicized passages were quoted in the original from linked sources). I’ve decided to let the argument speak for itself, and simply interject a few thoughts (non-block-quoted) towards the end.]

On their Q2 earnings call, GM gave this presentation [PDF] and made the following claims:

“On Slide 12, we provide what we view as key performance indicators for GM North America. The 2 lines on the top of the slide represents GM’s U.S. total and retail share. The bars on the slide represent GM’s average U.S. retail incentives on a per unit basis. Now U.S. retail incentives as a percentage of average transaction price and compared to the industry average is noted at the bottom of the slide.

“For the second quarter of 2011, our U.S. retail share was 17.6%, up 1.3 percentage points versus the prior year and down 0.6 percentage points versus the prior quarter due to the absence of the first quarter sales programs. Our incentive levels on an absolute basis have declined significantly from the prior year as well as sequentially. On a percentage of ATP basis, our incentives were 8.9%, down 2 percentage points versus the prior year. This puts us at approximately 103% of industry average levels for the second quarter of 2011, flat versus the prior year.

“In terms of incentive levels, our plan continues for us to be at approximately the industry average for the year on a percentage of ATP basis. These results for share and incentive demonstrate the impact of our plan to produce great vehicles the customers are willing to pay for.”

I did not try to verify the first part of the highlighted claim (that incentives have declined compared to previous year totals), but the second part of the claim (that incentives have declined sequentially) is demonstrably false.

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By on September 26, 2011

Are car buyers rational? Anyone who deals with car-shopping consumers on a regular basis would probably answer with a hearty “no.” In fact in my experience, helping prospective car buyers navigate the many considerations and options available on the market usually ends with me throwing up my hands and saying “if you like a car, just buy it.” But according to research cited by Wired’s Jonah Lehrer, conscious reasoning might not be the ideal way to shop for a car in the first place. Sometimes “going with the gut,” and making a decision without thinking it through is the best way to solve complex choices like finding the car that’s perfect for you.

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By on September 26, 2011

Under Penske management, the Smart minicar brand sold fewer than 6,000 vehicles last year, capping a sales decline that led Mercedes to take back management duties for the brand. And, according to the new folks in charge of Smart, there’s only one real problem with the brand: awareness. Or, more precisely, lack thereof. We’ve heard this song before from Smart’s new GM, but now Ernst Lieb, boss of Mercedes U.S.A., is picking up the tune, telling Automotive News [sub] that

With the marketing activities that we’re going to have, we’ll see some positive momentum. The biggest problem the car has right now: Nobody knows it.

Which, of course, is nonsense. Nonsense that allows you to appear aware of the sales problem without acknowledging a single problem with the product itself, but nonsense none the less. And Smart’s not the only micro-car brand that’s reaching for it either, as Fiat-Chrysler marketing boss Olivier Francois has the exact same excuse for Fiat’s weak start, telling AdAge

I don’t think we have a car problem; people love the car. I think we have an awareness problem.

Are Americans incapable of seeing, recognizing or being aware of anything that weighs less than 3,000 lbs? Or is it possible that there are a few things wrong with the Smart and 500?
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By on September 25, 2011

When word first began circulating that BMW was considering an X4, I wondered

is BMW trying to prove a kind of automotive Zeno’s paradox, in which niches can be infinitely subdivided?

It was a rhetorical question, of course, and the answer was “pretty much, yeah.” This official BMW sketch preview of the X4, which has been approved for production, shows a three-door version, but according to Autocar,

The car is also depicted in a pair of official BMW sketches. Although they reveal a three-door model badged X3, they hint strongly at the X4’s design, mainly its roofline and front-end styling; BMW sources insist that too much shouldn’t be read into the fact it has three doors.

But if MINI and Range Rover already have three-door “sport activity coupes,” isn’t it just a matter of time before Audi or Mercedes jump on the trend, forcing BMW’s hand? The only problem: there’s only one number between X3 and X5. Which means we will probably end up with an X4 xDrive28i (say) and an X4 xDrive28i Coupe. You know, the coupe version of the coupe version of the X3. Or maybe they’ll just move on to the inevitable X2 coupe version of the X1 and leave the task of trying to tear logical holes in space-time to the crazies manning the supercolliders.

 

 

 

 

By on September 23, 2011

Freshly minted college graduates usually aren’t the best credit risk – especially in today’s unpermissive environment when it comes to jobs. BMW thinks otherwise and declared that a good student needs a bimmer for graduation. On credit. Real credit. No more phony college credits. This is the real thing! Read More >

By on September 23, 2011

Cash on the hood is on the rise again, says Edmunds, which keeps track of the Total Costs of Incentives (TCI.) Incentives definitely had been coming down from their January and February highs to reach a low in May (there were cars missing from Japan …), but now, manufacturer largesse is getting greater again. Read More >

By on September 20, 2011

At the launch event for the 2012 Toyota Camry, the presenting executive noted price reductions of up to $2,000. Quite often such reductions are accomplished by deleting previously standard features. Case in point: the 2012 Volkswagen Passat, where we found that once you adjust for feature differences a $7,180 price drop shrunk to a much smaller, if still substantial, $2,400. So with the redesigned Camry I withheld commenting on the price reduction until I could run the car through TrueDelta’s car price comparison tool.

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By on September 20, 2011

It’s here: after much talk, hype, third-party conversions, hand-wringing, and other drama, Toyota has finally announced the plug-in Prius. It starts at $32,000 plus destination… but the one you really want will cost you a cool forty G. Click the jump for availability, specs, and some personal hand-wringing.

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By on September 19, 2011

Last week, news about a Dodge Viper ACR kicking “the ever-living crap out of the Lexus LFA and the Corvette ZR1” (in the matchless and breathless words of Jalopnik) made the rounds trough the webz. At the time, Jack Baruth warned that “there’s no ‘official’ word yet” and mused that the slick boys could have used non-stock tires. Ever since, it became quiet. Read More >

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