Every year, Japan’s Ministry of Economy, Trade and Industry hands out prizes for products it regards as the pinnacle of energy-efficiency and eco-friendliness. This year, Toyota’s Prius was chosen as the recipient of the grand prize.
Last Monday, Toyota said “enryo shimasu” (no thanks) to the Ministry, and refused to accept the governmental honors, an industry ministry official disclosed today to the Nikkei [sub]. Read More >
As our recent compact-ish CUV sales snapshot shows, Ford’s Edge has been losing its edge with consumers. And not to better looking cars with better ideas and more talent, but to its older brand-mate, the Escape. In order to keep up with its country cousin, the Edge has been updated for 2011, to offer a more contemporary corporate look, new powertrains and more. Where once only a 3.5 liter V6 (285 hp) was available, a more powerful 3.7 (305 hp) and the first US application of the EcoBoost 2.0 turbo four-cylinder (no stats released yet) are now optional. Where once the “Sport” trim was barely distinguishable, it now gets 22-inch rims and a blacked-out grille. And where standard models once sported ridiculously cheesy chrome grilles, the new 2011 Ford Edge now has an updated, yet equally giant and cheesy chrome grille. Because you can’t win them all.
Toyota’s PR efforts have been competent if muted during the ongoing recall scandal. Though it could certainly have done more in the past weeks (specifically by making top leadership more available to the public) Toyota has carefully avoided overreacting to the mushrooming media frenzy. Until now. The NYT’s Wheels Blog reports that the 173 Toyota dealers who make up Toyota Southeast have pulled regional ads from ABC stations because of “excessive stories on the Toyota issues.” Toyota Southeast’s ad agency 22Squared says “We have counseled the client on the pros and cons of this, and ultimately it was their decision to make.” Toyota continues to run corporate ads on ABC, but the petulant backlash from its Southeast dealers can’t help but reflect poorly on the brand. Any PR pro will tell you (and presumably 22Squared counseled its clients of this), that these kinds of strong-arm tactics do nothing to improve public perceptions of a brand. Toyota dealers might feel that the parent company is not doing enough on the PR front, but this approach will only create the need for more PR in the future.
Inventory management woes have played a huge role in the decline of America’s domestic automakers, but according to a lengthy piece in Automotive News [sub], the days of inventory pushing are now officially a thing of the past. Unless they aren’t. At the moment things look good. AutoNation CEO Mike Jackson enthuses:
It’s the most exciting thing we’ve ever seen. I’ve lived for this day to come. The inventories for the industry are the cleanest and in the best shape ever — ever.
AN [sub] says inventory levels are at their most sane levels since they began tracking data in 1992. That gives Detroit executives the opportunity to crow over their discipline and the sustainability of their business models, despite the fact that the Detroit firms still top recent average incentive estimates. And long-term estimates show up to 2m units of overcapacity will be re-accumulated by 2012. “I hope [inventory push] is dead,” says Group 1 CEO Earl Hesterberg. “I doubt it’s completely dead just because of the fixed cost pressure on manufacturers.”
What do you sell if you can’t sell a car? Sophisticated commentary on the state of gender relations, of course. Hit the jump to see just how gendered one marketing campaign can get.
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The House Oversight and Government Reform Committee will have to wait two more weeks to gets its claws into Toyota, as heavy weather has postponed hearings scheduled for today until the 24th. But don’t expect the delay take any of the pressure of Toyota: lawmakers are taking the extra time to widen their investigations. Automotive News [sub] reports that House Energy Committee Chair Rep Henry Waxman (D-CA) has solicited documents from a number of auto insurers after it was revealed that State Farm had warned the NHTSA of possible unintended acceleration in Toyotas as early as 2007. The Energy Committee has scheduled hearings for the 25th.
Meanwhile, Reuters has published one of the most comprehensive pieces we’ve seen yet on Toyota’s “epic breakdown.” Don’t miss it.
Honda said it will recall another roughly 378,000 vehicles in the U.S. to fix potentially faulty airbag systems that are linked to at least one known fatality and 11 injuries in the U.S., says the Nikkei [sub].
That brings the number of airbag-related recalled Honda and Acura models to more than 826,000. Honda said some airbags in its older vehicles deploy with too much pressure, and send metal fragments flying into the car. Read More >
Here are the first reactions to Nick Reilly’s turn-around and begging plan for Opel. In one word: “Booooh!”
Roland Koch, Premier of Hesse, where Opel has its headquarters, where most of Opel’s jobs and countless suppliers are, should be most interested in the survival. What was his reaction? “According to our first assessment, it will be necessary that GM as the owner will increase its contribution considerably,” he said to Das Autohaus. Translation: “Put money on the table. Then we talk.”
Little know factoid: In 2008, Opel was the 7th largest employer in Hesse, followed by Volkswagen, only 2,800 jobs behind Opel, most in a parts factory and distribution center in structurally weak Kassel. When Opel has finished its reduction in force plan, VW will provide more jobs to the state than Opel. Koch knows which side his bread is buttered.
The unions, which should be most interested in preserving jobs, immediately shot down the plan. Read More >
The gentlemen at Reuters asked me to pen an op-ed on the Toyota situation (as of last weekend) for them, so I did. My conclusion, in a sentence:
If there’s a lesson to Toyota’s tumble, it’s that easy assumptions aren’t enough to keep you safe on the road, or in the showroom.
Reuters reports that Toyota has informed the NHTSA that it will voluntarily recall over 7,000 2010 Camry four-cylinder models. According to a Toyota document sent to dealers:
2010 Camrys equipped with a 4-cylinder engine might have a shorter-than-required power steering pressure hose in the engine compartment. That could deplete the brake fluid, increasing the brake pedal stroke and making it more difficult and requiring more time to stop the vehicle
For the record, Ford would have just called this a “Customer Satisfaction Program.”
Given the growth this segment has enjoyed over the last year, it’s more than a little odd to see the Escape taking top honors. After all, it’s received a single refresh since it went on the market in 2000. On the other hand, fleets dug Ford last month. [Please note that the outgoing body-on-frame Kia Sorento sold 3,621 units in January 2009]
As GM tools up for production of its Volt extended-range electric car, Automotive News [sub] has noticed something interesting: workers at GM’s new battery pack assembly plant are not represented by the United Auto Workers. Located in the heart of UAW territory (Brownstown Township, MI), the Volt battery plant represents the very jobs that local politicians and GM leadership hailed as the green future of the auto industry. When the plant opened, GM Chairman/CEO Ed Whitacre waxed eloquent about the opportunities:
The development of electric vehicles like the Chevy Volt is creating entire new sectors in the auto industry – an “ecosystem” of battery developers and recyclers, builders of home and commercial charging stations, electric motor suppliers and much more. These companies and universities are creating new jobs in Michigan and across the U.S. – green jobs – and they’re doing it by developing new technology, establishing new manufacturing capability, and strengthening America’s long-term competitiveness.
As long as they do so without UAW representation, apparently. Needless to say, if GM can get away with using non-union workers at a crucial plant that’s supposed to represent the firm’s future, things aren’t looking so good for our friends in organized labor.
China’s passenger car sales in January skyrocketed an unbelievable 115.5 percent from a year earlier, China’s official scorekeeper, the China Association of Automobile Manufacturers said today. A total of 1.32m passenger cars were sold last month in China, compared with 610,600 units a year earlier. In December 2009, 1.1m units changed hands, Reuters reports. The January number is even more surprising as the China Passenger Car Association had originally figured that China’s passenger car sales rose 84 per cent in January. We compared the Reuters story with Xinhua, the official word on China, and Xinhua also says: “Passenger car sales were up 113.21 percent to 1.32 million units last month.”
Overall vehicle sales, including buses and trucks as well as cars, were even more amazing: A total of 1.66m units in January, up 126.3 percent from 735,500 units a year earlier. Keeping passenger vehicles and commercial vehicles apart is a frustrating exercise in China. Minivans for instance, and of course pickups, count as commercial vehicles. Read More >
Perhaps the biggest surprise of Jim Lentz’s appearance on Digg Dialogue was the number of questions that were unrelated to Toyota’s ongoing recalls and quality issues. But even if crowdsourcing had yielded a number of truly tough questions, Lentz had access to them ahead of the interview, giving him time to craft slippery answers. Still, the session provides an interesting of a preview of Toyota’s defense ahead of tomorrow’s congressional hearing. The main thrust: unintended acceleration is mysterious phenomenon, and finding a common cause for multiple incidents could be nearly impossible. Unless investigators find a ghost in Toyota’s electronics code, that may be as good of an answer as we’re ever going to get.
While I prepare the next full chapter of Lincoln’s (mostly downhill) roller-coaster ride, here’s a couple of shots of a 1968 Continental sedan. To my eye, the degradation of the original’s purity is now under way, although these ’66-’69 models still carry manage to convey a sense of dignity and exclusivity. That would change, all too soon. Read More >
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