The first videos of the Honda CR-Z lapping Suzuka have surfaced, and they’re about as exciting as C-Span after a handful of Valium. And this is apparently a tuned version. Between this and the recent pre-launch equivocation by the CR-Z’s chief engineer, our expectations for Honda’s Insight Coupe couldn’t get much lower [via Autoblog].
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Category: PR
In 1989, Toyota launched a new luxury brand that would go on to largely replace Cadillac as a vernacular term for excellence in luxury. Known as Lexus, this brand has spent the last 20 years making headway in the US market without ever publicly associating itself with its parent brand. Could this strategy have contained a lesson for the brand managers at GM who have spent the same 20 years fretting (or not) about declining Cadillac sales? Apparently so, as BusinessWeek reports that Cadillac is distancing itself from the corporate mothership in hopes of improving Cadillac’s aspirational appeal. And yet, strangely, it’s still not clear that the lesson has actually been learned.
Reuters (which has been all over the Volvo-Geely deal) reports that Zhejiang Geely Holding has money “in the bank account,” to purchase Ford’s Volvo brand, citing Swedish press reports. And yet, despite having reportedly given Ford guarantees about the financing of Volvo’s business plan, and scheduled a formal deal signing for last month, a deal has yet to emerge. Last week, Geely’s chairman Li Shufu told Reuters from the sidelines of the National People’s Congress in Beijing that “we haven’t reached a final agreement so far,” but “everything is moving as planned.” Geely has also been talking up its “only one foreign brand” strategy and “new energy” car plans, while Volvo reps tell AM Online that a deal will be done by March 31 and that Chinese market access will save the brand [via The WSJ [sub]]. In fact, the only party involved that’s not issuing a steady stream of PR about the upcoming deal is Ford. Could the Blue Oval be getting cold heels?
An article in this week’s Advertising Age and Automotive News (they’re sister publications) investigates why the family in the new hit sitcom ‘Modern Family’ “still drives Toyota product.” The author found it “jarring” that the family “chatted happily while traveling in, of all things, a Toyota.” The answer: Toyota paid for product placement, the contract runs through the end of the season, and many of the episodes have already been shot.
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We reported yesterday that GM’s recent dealer cull flip-flop was motivated by Chariman/CEO Ed Whitacre’s desire for increased sales volume. Though that may have been the main reason GM took over 600 dealers back into the fold, there was clearly another, more sinister reason for the move: making an example of dissident, activist dealers. Automotive News [sub] reports that GM has contacted all 661 reinstated dealers, and believe it or not, none of the 7 dealer members of the Committee to Restore Dealer Rights have been contacted. Founding member Tammy Darvish tells AN [sub],
The only thing I’m confident of is that I’m sure it’s not a coincidence
Ya think? GM won’t comment on any of the 499 dealerships that haven’t been contacted, but this sends a clear message: mess with The General and you won’t be part of the new push for volume. Darvish and the other rejected dealers still have the arbitration process, but it seems unlikely that any of them will ever be welcomed back into the bosom of GM any time soon.
Thanks to the “optics” (if not the reality) of the latest Toyota sudden unintended acceleration scare, the story has new legs just as Toyota and Exponent were hoping to cut them off. But as much as dramatic, cop-calms-killer-Prius headlines keep the Great Toyota Panic alive, so to does the fact that the 89-odd class-action lawsuits filed against Toyota could be worth over $3b to plaintiffs and their counsel. And that’s not counting any of the incidents in which people were actually injured or killed (which are actually relatively rare). No, that $3b+ is going to the truly deserving… and their lawyers.
Toyota and its contracted engineering auditing firm Exponent held a webcast today to refute the claims that Professor David Gilbert has leveled in an ABC report and recent congressional testimony. Gilbert claimed that he was able to induce sudden acceleration without triggering failsafe mode or an error code in Toyotas by hacking into a Toyota pedal. Toyota and Exponent’s central claims are that the conditions created in Gilbert’s test could not be replicated in real life and that similar tests produced identical results in competitor vehicles.
So, how do you spin the bankruptcy of the world’s largest automaker? Former GM spinmeister Steve Harris recently took an hour to help prepare future generations for the day when they too will have to soft-pedal the inevitable collapse of their very own lumbering giant employer. Bonus revelation:
[the presidential task force was] very interested in what we were doing from a communications standpoint, but I can not say that they really exerted much control at all. Once or twice they said “we would really like it if you add this message or this communication into your plans,” but it was really minimal. It was not overbearing at all.
Details?
Toyota has just started a live webcast intended to rebut some of the allegations made by Professor Gilbert, among others. Click here to watch the webcast, already in progress.
The personal transportation choices of auto executives has always been an easy point of reference for members of the mainstream media looking for an easy story. From Alan Mulally’s Lexus to Akio Toyoda’s Davos Audi getaway, auto execs’ use of non-company vehicles is always good for a quick “gotcha” headline. But no story in this rich oeuvre has had quite the impact of Jet-Gate, the name given to the mini-scandal that erupted when the executives of Ford, Chrysler and GM arrived in Washington DC for bailout hearings in three separate private jets, prompting derisive comments from members of congress. The PR misstep has haunted Detroit ever since, inspiring federal rules barring bailed-out automakers from using executive jets, and making transportation choices for auto-related DC hearings a major priority for automaker PR: Toyota’s Jim Lentz clearly had the episode in mind when he arrived for recent hearings in a recalled and repaired Toyota Highlander. And thanks to a recent revelation about GM Chairman/CEO Ed Whitacre’s use of executive jets, furor over auto-exec transportation is clearly a long way from playing itself out.
And while we are solidly in left brain mode, here the explanation of Toyota’s brake override. You can start on a steep hill, even brake with your left foot, says Toyota. Let their presser speak for itself: Read More >
Recently-reassigned Cadillac boss Bryan Nesbitt isn’t the only GM exec paying the price for weak Cadillac sales, as Automotive News [sub] reports that GM has terminated three other Caddy executives.
Cadillac’s Steve Shannon and John Howell were dismissed Monday, said eight sources familiar with the moves. Jay Spenchian, an executive director who worked on Cadillac and other brands, was also let go, the sources said.
Longtime GM executive and Cadillac sales manager Ed Peper will stay on at Cadillac, and will report to Kurt McNeil, who will take over as Cadillac’s head of sales and service. This is the second time Peper’s career has moved backwards in recent months: prior to becoming Cadillac’s sales manager, he had served as the general manager of the Chevrolet brand. More proof that it doesn’t pay to be a lifer in Ed Whitacre’s new GM.
This is the news from the Lake Wobegon car show, where all the vehicles look beautiful, all the engines are low-emission, and all automotive managers are above average. No wait, this is Geneva, probably the world’s most important car show. The rest of the opening sentence is true, though — at least, that’s what public relations would have you believe.
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When it comes to the cause of the alleged Toyota unintended acceleration, the TTAC commentariat is divided into two camps:
One side is convinced they know what’s wrong with Toyota. (It’s the cursed computer. May it roast in hell and grow tin whiskers.)
The other side isn’t so sure and argues for caution. It could be pilot error. Plain old hysteria also isn’t ruled out. Or some trade warfare that reared its no so pretty head at yesterday’s hearings: “You block our beef because of mad cow disease. We do the same to your cars.”
Well, who says life is fair. Flash: The doubters are being discriminated against. The commentators who know what’s wrong with Toyota can become instant millionaires. Here is how it works: Read More >
Chrysler sold exactly 399 more vehicles in February than it did in February of 2009, which would be a respectable performance if the comparison weren’t with one of Chrysler’s worst months on record. GM may be tentatively nosing its way out of the bottom of a sales trough, but Chrysler is treading water at unsustainable levels (CEO Sergio Marchionne has said he “needs” Chrysler to sell 1.1m units in the US this year). Considering that a huge amount of Chrysler’s sales release [PDF format here] is spent detailing the company’s many consumer incentives, Marchionne’s goal of turning ChryCo into a 1.1m-unit, incentive-less juggernaut seems less realistic with every passing month.
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