“It’s our company’s long-term target, to be China’s No. 1 automaker by 2015 and to be the world’s leading car maker by 2025,” Build Your Dream’s marketing reps tell the AP. Ready for a reality check? BYD sold only 400k units last year, almost all of them in China. In fact, just a few years ago BYD wasn’t an automaker at all, but a battery supplier to laptop and cell phone companies. Several years and a big investment from Warren Buffet later, BYD is getting all kinds of cocky.
A brand is a promise to the consumer. It’s the umbrella under which all products must shelter. All the people responsible for a brand must ensure that it meets that promise. The Toyota Prius is a promise of reliable transportation that achieve high-mileage with low emissions. So it’s no wonder that Toyota has decided to stretch the brand to other vehicles. Oh, wait, the Prius isn’t a brand. It’s a model within a brand, which contains other examples of reliable transportation that achieves high-mileage with low emissions. Is that confusing? Well if it isn’t now, it soon will be. “The Highlander hybrid and Camry hybrid do OK, but calling it ‘Synergy Drive’ never resonated with consumers,” veteran Toyota dealer Earl Stewart told Automotive News [sub]. “But they can make hay on the Prius name. It’s a magic name. If somebody says ‘I drive a Prius,’ everybody knows what he means.” But for how long? The truth about a brand is that its products must fulfill the brand’s promise, or the brand dies. Confusing that brand diminishes it and alienates the people who gave birth to it in the first place. Maybe not straight away, but eventually. And forever.
Greg writes:
Hello, I have a 2002 Toyota Camry SE with about 120K on it that has been overall pretty reliable. For the past few months, the OEM (it is not aftermarket) radio has turned psychotic and turns itself on and off and flips from radio to CD at will – or so it seems. It seems like this is a loose wire as it is really noticeable when I go over certain bumpy areas in the road, the radio pre-sets disappear and I have to reset them again and again. Can you advise me what to do next?
PS – My four year old thinks there is a mouse in the radio since it turns it self off and on all of the time.
Porsche’s current Boxster goes bye-bye in 2012, and to keep things moving Zuffenhausen appears to be bringing at least two special editions to market. First up, Auto Motor und Sport‘s Erlkönig spies have caught a Boxster-based Speedster mule testing in Germany. Speedsters are an integral component of Porsche’s rich heritage, first as a 356 variant, and later as limited edition 911s. This latest version should hit the streets in 2010 with a 303 hp version of the 3.4 liter Boxster flat six, a shortened windscreen and other Speedster visual cues (like the weird camouflaged humpback shown here) . But the real news comes from car Magazine, which claims to have caught sight of a Boxster R.
It’s now been four months since I sent in my $5,000 deposit on a Tesla S all-electric four-door sedan. I still think it’s a cool car, but so far I’m very disappointed in Tesla’s communications with us S owners. After an initial flurry of messages confirming the order, assigning me a production number, and inviting me to the opening of the New York Tesla store, I’ve heard exactly zilch from the factory.
Automotive News [sub] reports that the Mazda2 (Demio in Japan) has been approved for a Fall 2010 launch in the US market. Mazda is clearly targeting the Honda Fit’s recent success, with only the 5-door, 1.5 liter version approved for the US. The stateside rollout will also coincide with a mid-cycle refresh, which means the interior will be improved over the current European version. Unfortunately, this also means the 2 will be saddled with Mazda’s new Pikachu-on-SSRIs grin. Still, the new baby Mazda should take a little oxygen out of Ford’s Fiesta launch next year, as the two vehicles were developed simultaneously on the same platform.
I’m optimistic we can pay off the loans faster than people think. Payment is due in 2015. We want to do it much faster than that.
GM CEO Fritz Henderson breaks our incredulity meter at the Frankfurt Auto Show. And how does Fritz propose pulling this coup off? “Creating value for our shares is the best way the taxpayer will be repaid,” he explains. In other words, Henderson expects GM’s Summer 2010 IPO to reflect the $68B market cap valuation it needs to pay back taxpayer loans. Meanwhile, GM’s Chairman reportedly puts the odds of success on any timeline at 60-40. Paging Optimist Prime . . .
Like most states, Washington uses an implied consent statute to punish anyone who refuses to submit to a breathalyzer test upon being accused of drunk driving. In a ruling last Thursday, the Washington Supreme Court upheld the right of police to use force to remove blood from a motorist even after an informed decision to refuse the test has been made. The high court argued that recent changes to the law essentially eliminated the need to seek consent when a warrant is obtained.
The Freep has dubbed Chevy’s Next Big Small Thing a “hit” on the grounds that it’s big in Australia. The only problem? It’s not really selling all that well. Towards the bottom of its write-up, the Freep reveals that GM’s Holden division sold 4,826 of the US-bound Cruze in the last three months. Center for Automotive Research president David Cole reckons those numbers “kind of give you a clue as to what the potential could be” when the Cruze arrives stateside. If that’s true, the Cruze is a loser. Not only has Toyota sold 7,550 Cruze-class Corollas in the last two months, the Mazda3 and Hyundai i30 are also the segment’s fastest growers.
Mazda’s latest concept only weighs 2,194 pounds, and it’s got a grin to prove it.
The Detroit News is reporting that Ford is in a legal battle to control key patents related to its Sync hands-free information system. John Berry, who was let go by Ford in July, developed Sync’s cell phone connectivity system, which allows features like 911 Assist, Vehicle Health Reports and Traffic, and Directions and Information Services. Ford wants Berry to sign off on the company’s application for patents related to these functions, but Berry won’t play ball. He says he’s “happy to license” the technology to Ford, but other automakers are rumored to be sniffing around as well. There’s plenty at stake in this squabble: if Ford loses these Sync capabilities, it loses one of its primary advantages in the marketplace. Not to mention its “anti-distracted-driving” leadership.
Here’s an excerpt from the CARS.GOV website, spotted by one our eagle-eyed readers:
Do I get any money for my trade in vehicle in addition to the CARS credit?
YES. The law requires your trade-in vehicle be destroyed. The dealer must disclose to you the scrap value of your vehicle. The dealer is entitled to keep up to $50 of the scrap value for administrative fees. You are entitled to negotiate about who keeps the remaining scrap value. For example, you may use that money toward the price of your new car separate from the CARS credit.
How many customers received this federally-mandate disclosure from their dealer? Not many, I’d wager. TTAC writer and used car guru Steve Lang reckons the average clunker was worth between $300 and $350 in scrap. So let’s call it $250 per car. Multiply that by the estimated 700,000 crushed clunkers and you’re looking at some $175,000,000 that may have been left on the table. Oops! Our tipster reckons that money should have gone back to taxpayers, anyway. I reckon he’s right.
One of our Best and Brightest over in South Korea got the inside line on the new Hyundai Sonata. Here’s what he knows so far . . .
The car was officially released today [Hyundai press release HERE] in front of about 200 invited guests (I was NOT one of them). The car has been available for pre-sales for about 2 weeks and has, according to the salesperson I spoke to, sold over 20,000 units. For comparison, in August, the ‘old’ Sonata sold about 7,000 units. That number was probably down a little as people were no doubt waiting for the new model. In July, the ‘old’ Sonata sold about 9,000 units. So the new model has ‘pre-sold’ more than the last two months of sales of the old car. (These sales numbers of the ‘old’ model are official numbers from the Korea Automobile Manufacturers Association).
Speaking in Frankfurt, Fiatsler boss Sergio Marchionne warned the world that post-Cash for Clunkers American auto sales are a “disaster.” Like you didn’t see THAT one coming. Sergio reckons the industry benchmark—the Seasonally Adjusted Annual Rate (SAAR)—will fall below the “conservative” 9.5 million SAAR estimated for September. Folks, that’s after August’s 14.1 million number. “Even GM’s Fritz Henderson has thrown in the towel,” iStock Analyst reports, “saying that September will be a ‘very weak’ month.” Me, I’m with Sergio. The September numbers will be so bad that Michael Moore’s rendition of Bob Dylan’s “The Times They Are a Changing” may even be on Bob Lutz’s iPod. Just kidding. But seriously, what now?
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