Where would market research companies be without their sugar daddies, the car companies? There is no consumer product that is more expensive than a car, and nowhere is the amount of research money spent by unit sale higher than in the car industry. Research for a new car can be as crude as a few pictures and a questionnaire, or it can be something that is appropriately called a “clinic study,” with customers as lab rats. Read More >
It’s all speculation until we get official pricing from VW of North America, but according to Autoblog, the new Jetta will be priced starting “around $16,000” when it shows up stateside this October. With Chevy’s Cruze starting at $16,995, we face an interesting prospect: VW’s entry sedan might well be cheaper than Chevrolet’s. Of course the base Jetta will continue to be saddled with its predecessor’s agricultural 2.5 liter, but the Cruze’s base 1.8 hasn’t exactly earned many accolades either. Of course the base Cruze comes with a goodly amount of equipment, but it’s got an uphill fight on its hands if the more desirably-branded Jetta pips it on pure price point.
So, this was all about new markets where the Chevrolet brand is relatively unknown. In other words, the markets where consumers are just as likely to call their Chevrolet a “ChevWoo” or “Daewoo” as a “Chevy.” The reality is that nothing hurts the Chevrolet brand abroad more than the continued existence of the Daewoo brand… by comparison the use of a familiar nickname is a minor issue. And what is going to be easier for a non-English-speaker to say, Chevrolet or Chevy? Anyway, based on the harried, apologetic tone in this video, it’s pretty clear that GM would rather this controversy had never started. So why did the new ad boys feel like dropping “Chevy” was so important?
It appears that MINI’s challenge to Porsche won’t play out at the racetrack. The following letter [via MotorAuthority] is Porsche USA’s Detlev Von Platen’s response to MINI’s Jim McDowell.
Dear Jim,
Imagine our surprise to discover our former employee, now the head of Mini, has challenged us to a head-to-head race. As you surely know, Porsche has a long history of racing success, with more than 28,000 wins over the last 60 years. In our early days, we pitted ourselves against the giants, so we’ve been in your shoes.
But as you also know, Porsche doesn’t race for fame, stunts or publicity. We race to challenge ourselves; we race to push sports car technology; we race to translate every win on the track to our cars on the road. If you need a reminder of our intent, please take a look at this short video: http://tinyurl.com/37xdjqx
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We’d ask that whether you’re talking to a dealer, reviewing dealer advertising, or speaking with friends and family, that you communicate our brand as Chevrolet moving forward. When you look at the most recognized brands throughout the world, such as Coke or Apple for instance, one of the things they all focus on is the consistency of their branding. Why is this consistency so important? The more consistent a brand becomes, the more prominent and recognizable it is with the consumer.
From a GM memo, signed by Alan Batey, vice president for Chevrolet sales and service, and Jim Campbell, Chevrolet’s vice president for marketing [via NY Times]. Chevrolet spokesfolks confirm the decision to abandon “Chevy,” saying the move comes from Chevrolet’s new ad agency of record, Goodby Silverstein. Chevrolet employees are reportedly already using a “Chevy Can,” similar to a “Cuss Can,” in which employees must deposit a quarter every time they say “Chevy” instead of “Chevrolet.” They’re serious about this thing.
Wait, Steve Jobs is signing up for an EV at the rollout of the new iPhone? Is the zen master of Silicon Valley a Volt guy or a Leaf lover?
What?: A race between a MINI Cooper S and a Porsche 911.
Where?: Facebook, and presumably an extremely twisty track.
Why?: Brand equity. Publicity. Mid-life crisis sales. Making sure nobody knows the Cayman exists.
Google Trends says it’s so, according to gm-volt.com [via Autoblog]. The Leaf also has 54,000 Facebook fans to the Volt’s 24,000. Plus, the Leaf has 130,000 people on its official “interest list” while the Volt boasts a mere 42,000. The danger here: that Leaf beats the Volt to becoming the EV segment’s first successful brand, earning it “the new Prius” status that Bob Lutz so badly wanted to bring home to Detroit. [Hat Tip: gslippy]
GM has announced pricing on its next small thing, the Cobalt-replacing Cruze compact, and the new price of entry is $16,995. That’s about a $2,000 premium over the base Cobalt (which starts at $14,990), a price hike that is justified by Chevy’s high expectations for the Cruze. As Chevy’s Jim Campbell puts it
For the price of a compact car, Cruze offers the styling, safety features, roominess, amenities, and refinement of a much more expensive car.
Base prices for the Cruze’s main competitors are $16,200 for a Corolla, $16,415 for a Civic, $16,095 for a Mazda3, $16,170 for a Sentra, $17,040 for a Focus, $178,485 for a Jetta, $14,865 for an Elantra, and $14,390 for a Forte (including typical destination fees).
Many people (especially on this site) worry that Toyota might become the new old GM. I beg to differ. Toyota is a well run company, it turns a profit and builds good cars (not great, but good ones). When GM was swirling around the porcelain throne, people were desperately seeking ideas to recall lost customers back to GM. One thought was the “5 year, bumper-to-bumper warranty.”
The logic was watertight. Stop saying that your cars are as good as the competition (I’m looking at you, Mr Lutz) and put your money where your mouth is. Why should a customer commit tens of thousands to a car, if you can’t commit to a measly 5 years? But GM never did it. We had a powertrain warranty, but not a bumper-to-bumper one. Now compare this to Hyundai, who where, and let’s not mince words here, a joke in the car world. A commitment to quality and a 5 year bumper-to-bumper warranty (in the UK) later and Hyundai is up there with the best of them. So, if it’s good enough for Hyundai…. Read More >
Coda Automotive may not be claiming to have paid back the US government, but this video [via greencarreports] sure is one of the more misleading spots we’ve seen in a while. The term “all-American innovation” probably does great with focus groups, but it’s hardly an accurate description for a rolling-chassis Chinese sedan with some Chinese-made (unless the DOE gives Coda a loan for US cell manufacturing) lithium-ion cells bunged into it somewhere in California. Likewise, the fact that internal combustion engines operate at relatively low efficiency is fascinating, but it’s hardly relevant to potential customers. Especially considering this Coda EV is likely to cost about $45k before tax breaks. At that price point, a Chinese-market sedan should run at 110 percent efficiency, and be powered by melted-down AMG tires. And its makers should still have the decency to admit that, like so much in life, we’re entirely dependent on the Chinese to actually build the damn thing.
A lot has changed since 1978… and not all of it for the better. One undeniable trend: young folks just aren’t that into the cars anymore. Automotive News [sub] takes on this, the greatest challenge facing automotive marketers in a lengthy piece that asks
Is digital revolution driving decline in U.S. car culture?
The implicit answer: yes. As a member of the generation that will doubtless be blamed for the decline of the auto industry for decades to come, I think the root causes of Millennial carlessness are a bit more complicated than mere progress in digital technology. And though the causes may be complex, the reality couldn’t be more clear. Want to know how this dynamic plays out? Take a look at Japan. If the car industry doesn’t find a way to re-associate its products with more positive connotations than debt, traffic, commuting and pollution, it’s going to face an increasingly tough slog as the Millennial generation comes into its own.
The only “real car” on Forbes’ most overpriced list is the Chrysler 300. Really. Despite being based on the compact Cobalt, Chevy breaks sales of its HHR out as a “truck,” in search of improved CAFE performance. And despite an MSRP of under $20k, the PT Cruiser-inspired wagon was still one of Forbes’ most overpriced vehicles of 2010. The rest of the list’s 11 models are unquestionably trucks, or truck-based utes, and save for Nissan’s Titan and Armada, they’re also all from Detroit automakers as well. If you’re looking for more reasons to build a cheap, utilitarian compact pickup truck (ahem, General Motors) this list has got ’em. Hit the jump for Forbes’ list of most overpriced vehicles, and the magazine’s formula for deciding who makes the cut for this dubious distinction.
As the Dodge brand redefines itself with new lifestyle packages, new ads, events and sponsorships, and a slew of upcoming new products, it’s using its brand name to send a clear message that its “forever young” attitude and performance-driven history will drive the brand into the future.
The new Dodge brand logo features the DODGE name with a pair of red racing stripes relative to the “E,” suggesting speed and agility. Dodge designers sketched the new logo after Dodge and Ram Truck were clearly defined as separate brands with their own identities and consumers, each needing a logo that represents the character of the brand.
The twin red graphic stripes will be used in communications, advertising, internet and merchandising. They will not appear on Dodge products or on the dealership signage.
From a recent Chrysler Group press release. Confused? Yeah, us too.
Speaking of car ads, never in my life would I have expected to see the grim reaper in a car ad. Especially not in the death seat. Especially not in a Mercedes ad. The boys from Sindelfingen never were known for their daredevil approach to advertising. Even at Volkswagen, which used to take more risk in their campaigns (<- they said this one wasn’t approved), any ad showing an old man with a scythe would have been immediately – – killed.
“Herr Schmitt! How often do we have to tell you: No negative advertising!!!!” It’s amazing that the Mercedes-Benz Brake Assistant System (BAS) ad [available after the jump] saw the light of day. Personally, I like it. Honestly, I’m envious of an agency that has gotten this ad through countless committees. Coming up with a good ad is easy. The hard part is having it approved. Read More >
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