GM’s now-infamous advertisement touting the payback of government loans “may have elasticized the reality of things,” in the words of Steve Rattner, but stretching the truth apparently pays off. Automotive News [sub] reports that a London public perception-tracking firm surveyed some 5,000 consumers, and found that The General’s image has improved since the ad started running. Of course, on YouGov’s brand image scale of 100 to negative 100, GM is up only five points to “17.” Clearly there’s still work to do.
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Whenever TTAC took GM to task for branding run amok and excessive platform sharing, the example of Volkswagen has always been the key counterfactual. With seven brands available in Europe, the Volkswagen-Audi group is the continental GM, always looking for another way to repackage a pedestrian FWD platform. The only difference is that VW has actually been growing. But Wolfsburg’s brand profligacy is starting to bear some GM-style bitter fruit. Skoda has been surprisingly strong of late, actually making problems for the Volkswagen brand in certain markets. Seat, on the other hand, is not doing so well. With only one factory, at Martorell, near Barcelona, Seat has always been a slightly niche player, offering older VW designs with some Pontiac-style “emotional” styling flair and a sportier image. The problem now, as Seat CEO James Muir tells The WSJ [sub], is that
The brand really is too small for this plant
Running at only 60 percent of its 500,000 unit capacity, Seat is too small for its lone plant. As a result, VW is launching a last-ditch effort to save its dying brand.
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After a solid six months of cringe-worthy Jeep ads, Chrysler is replacing ad agency Global Hue for the launch of the forthcoming 2011 Grand Cherokee. The Grand Cherokee’s launch materials will be developed by Wieden + Kennedy, which is currently the lead creative agency for the Dodge brand, and recently created the trippy “Alright, Kittens” spot for the Grand Caravan. According to AgencySpy [via Jalopnik], GlobalHue will continue to be Jeep’s lead agency, despite offering few signs that it actually understands the brand. What do we mean by that? Hit the jump for more.
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Chrysler has announced pricing for the new Jeep Grand Cherokee, arguably the most important vehicle it will launch this year. The cheapest option, the Laredo 4×2 (which isn’t even mentioned in Chrysler’s release), starts at an MSRP of $30,995 (including destination charge, confirmed via Twitter)… at least until ChryCo rolls out the $5k cash back it’s offering on the outgoing model. Hit the jump for trim levels and corresponding pricing.
“Edgy” ads are in for marketers looking to reignite America’s love affair with the minivan. If you thought Toyota’s “Swagger Wagon” Sienna spot seemed strange, check out this inexplicably surreal ad for Dodge’s Caravan. The ad’s creator Wieden + Kennedy was hired to give Dodge a hipper image, but thus far it has singularly failed to capture the magic of its previous auto work, like Honda’s “Cog” spot. Maybe that’s why Chrysler Group decided to go with Gotham for its forthcoming corporate image-enhancing ad campaign.
We’ve already laid into Saab’s new 9-5 for launching with with only the 300hp, AWD “Aero” trim level, for which the former GM division wants a base price of about $50k. That asking price just became a little more ridiculous as Volvo has announced base pricing for its new S60 sedan at $37,700. And guess what? That’s for the 300 hp, AWD “T6” version as well, which is also the only trim level available at launch. Volvo 1, Saab 0. UPDATE: OK, OK, we admit that Volvo’s “win” here is minimal. A lower base price does potentially bring in more buyers, but on an apples-to-apples basis, the two Swedes are pretty much a wash, price-wise. Which still leaves plenty of room for debate… and inevitable references in each others reviews. Besides, both models will offer cheaper versions over time. Does this make us think Saab’s $50k fan tax is any less ridiculous? Not a bit. But then, only time and test drives will truly tell if Saab’s gamble has paid off.
Chrysler crowed over its 9.1 percent market share in its Q1 results conference call yesterday, and though CEO Sergio Marchionne refused to be pinned down on an exact time frame, an IPO this year looks more likely than ever. Similarly, BusinessWeek reports that GM’s Ed Whitacre has hinted that a Q1 profit is likely, as is an IPO in Q4 of this year or early next year. This improvement in both bailed-out automakers was underlined by former Presidential Auto Task Force head Steve Rattner, who said the two firms were “meeting expectations,” at a Detroit-area conference. But Rattner also put his expectations into some context by saying
When we did this restructuring we never expected a full recovery of our investment. If it ends up costing us $10 billion we should consider it a success. For about $10 billion we avoided economic and human calamities… I would suggest that that’s a pretty effective cost of government stimulus
That assessment is down considerably from Rattner’s last prediction, which expected a taxpayer profit on the auto bailout.
Ever since the late 90s, car manufacturers and especially car dealers were scared of the Internet. By the end of the 90s, it was agreed that the likes of Carpoint or Autobytel would turn into huge virtual showrooms and would put dealers out of business. It didn’t happen. The opposite happened. The many car shopping sites drove business to dealers. Ten years later, there it is again: The specter of the wicked disintermediation has returned. Direct sales to customers via electronic media are popping up in the world’s largest auto market. Read More >
Advertising Age reports that GM’s surprise landing of former Hyundai and Nissan marketing boss Joel Ewanick nearly didn’t happen. In fact it didn’t happen once. GM offered Ewanick the top marketing job over two months ago according to AA, but he turned down that offer due to concerns about the position’s autonomy from GM’s entrenched “old guard” bureaucracy. As AA’s insider source puts it:
He didn’t want to have to go through a half-dozen people to get something done. He wanted to be able to get on the phone and call one person and say “Can I do this, yes or no?” and get a quick answer.
Apparently it took GM several months before coming back to Ewanick, who is considered a “rock star” of automotive marketing, with an offer that included freedom from its notoriously oppressive bureaucracy.
With rumors coming in that Toyota is repositioning its planned FT-86 “Toyobaru” sports coupe to reflect higher price and higher buyer age targets, word around the enthusiast fring of the autoblogosphere has been downright apocalyptic. After all, the promised combination of a $20k base price, manual transmission and rear-wheel-drive were what launched the FT-86 to internet notoriety. But development overruns are a fact of life, and Toyota says it has no choice but to bump the FT-86’s projected price point to $23k base, $26k loaded-level. So while the FT-86 faces the bloat that comes with a more upmarket target, another sports coupe aimed at undercutting the FT-86’s prices by about $5k is already under development according to Road & Track.
Automotive News Digital Edition [sub] reports that Mercedes-Benz is holding consumer clinics in the US, gathering input ahead of its launch of the first front-drive Mercedes models to be sold in the US. Sales of the B-Class-based front-drive models won’t being until “after 2011,” and Mercedes admits that a design freeze has not yet taken place. Still, one thing is certain: prospective customers are not being shown an MPV-like hatchback along the lines of the current B-Class that’s sold in Europe and Canada because of dealer concerns. Says MB-USA development boss Bernhard Glaser:
[Dealers] were concerned about the previous generation because it did stand out and that is kind of a whole different brand sell that you have to try and jump over. This will be seamless.
Sergio Marchionne is still taking questions during Chrysler’s Q1 conference call, so while you wait for the latest on Chrysler’s predicament, take a look at the product end of the turnaround plan. Chrysler will launch three new products by the end of September. Between October 1 and December 31, Chrysler is re-launching 10 new or refreshed products… that’s one new launch every ten days. In the middle of the holiday shopping season, when cars are usually crowded out by more gift-able purchases. It’s going to be a Chrysler-lanche… but will anyone notice? [Full PDF presentation from today’s call here].
Is good old machismo dying in Brazil? On the eve of Women’s International Day (May 8), women are now held responsible for buying up to 40 percent of brand new cars in Brazil, and are said to influence over 80 percent of purchases. According to well-known Brazilian news site Globo, those are the numbers. But what motivates a woman to buy a car in Brazil? Read More >
Bob Lutz may have left GM, but TTAC’s not through with the man of Maximum just yet. One quote in particular, from an “exit interview” with gm-volt.com, exemplifies the kind of candor that seems likely to disappear from GM along with Lutz. Possibly for good reasons. Well, good PR reasons, anyway. After all, with Lutz unable to deny that GM will lose money and/or battle sticker shock with its forthcoming Volt EREV, he’s the kind of guy who will tell the unspeakable truth instead of playing coy like a good PR man. To wit:
How do we get the cost down without in any way diminishing the value of the car in the eyes of the customer? By just doing some more elegant engineering than we did the first time around where we inadvertently did some belt and suspenders stuff because we wanted to move fast. Now as we look back at the car we say ‘gee I wish we’d done his different,’ …’ gee I wish we’d done that different’ because this is a very expensive solution and we could have done that for a lot less money.
That faint sound you just heard was Ed Whitacre expelling fillet of rattlesnake out his nose after reading that little nugget. Meanwhile, you’ve heard it from the horse’s mouth: the Mk.1 Volt will be expensive, unprofitable, and unpolished. Or, to use a PR term, “belt and suspenders.”
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