Ford’s sales momentum continues unabated, as the Blue Oval has announced that its January sales were up 25 percent over January 2009 [full release in PDF format here]. Sales were led by a a strong performance from Ford-branded cars, which were up 54 percent as a category, with individual nameplates logging gains ranging from 33 percent (Focus, 10,389 units) to 121 percent (Taurus, 3,768 units). Ford Crossovers and SUVs were up 16.7 and 12.9 percent respectively, with most of the volume gains coming from CUVs like the Escape (+28.6%, 10,753) and Edge (+25.5%, 6,243 units). Ford truck sales were up 14.5 percent, with heavy commercial vehicles falling and the Ranger recording a strong 47.3 percent gain to 4,143 units.
Standard & Poors Equity Research [via BNET] says you shouldn’t dump that Toyota stock just yet.
Will the aggressive action of cutting production and recalling so many vehicles scare away potential Toyota buyers, or will consumers think the abundantly cautious response shows a commitment to customer care and quality? We think it is too early to tell, but we believe resilience and global growth of vehicle demand will help TM (Toyota Motors)
You know, until mechanics actually start finding malignant hellspawn demons within Toyota electronic throttle control units. In which case you should invest heavily in law firms. Meanwhile, Toyota is apparently hiring shamans to cleanse their new product of metaphysical infestation by way of bizarre voodoo ceremonies like the one shown above [Hat Tip: Vanity Fair Gay Cars blog].
One of the lingering concerns over the Toyota recall is whether Toyota’s “precision steel” shim fix to the recalled CTS gas pedal assembly will be a reliable long-term solution. Our analysis indicates that these questions might be well-founded, and we’re not the only ones concerned about the viability of Toyota’s proposed fix. In an interview with Toyota’s Jim Lentz yesterday evening, NPR asked why Toyota was using a redesigned pedal for new production, but only offering the shim fix to existing customers. Lentz insisted that the repaired pedals would be as good as the redesigned pedal, that the costs of repair and replacement were about the same, and that the main reason Toyota was repairing rather than replacing recalled pedals was the desire to “get customers back on the road… as quickly as we possibly can.” That’s when NPR went for the jugular.
Matt Lauer turns the screws on Toyota’s Jim Lentz, who responds to conspiracy claims by saying that his family, friends and neighbors drive Toyotas. “I would not have them in products that I knew were not safe,” he says, although he does acknowledge that rapid growth could have played a role in a general decline in quality.
Say what? GM has no problem kicking Toyota when its down, offering conquest cash to craven Toyota owners who might be tempted to flee the brand in the midst of recall mania, but its own handling of the situation deserves some analysis. After all, GM confirms that its Pontiac Vibe is assembled at the GM-Toyota NUMMI joint venture using the CTS-sourced pedal assembly that allegedly causes unintended acceleration. And yet The General went on the record last Friday [via Automotive News [sub]] essentially claiming that its Toyota Matrix rebadge was magically safe from the dread terrors afflicting its Toyota-badged cousin. Now GM has revised its statement on the Vibe, admitting that since the Toyota recall, it has received several complaints about sticking accelerators on Vibes (although no related wrecks have been reported). Better late than never… unless you’re making the pitch that consumers should choose you over Toyota because you will take better care of them. [UPDATE: GM reports that the Vibe’s brakes can stop the vehicle. Go figure]
Staff from the House Energy and Commerce Committee met with representatives from Toyota yesterday, reports Automotive News [sub], as Congress wades into the Toyota recall debacle. According to a letter from the Energy and Commerce Committee to NHTSA administrator David Strickland and Toyota North America Boss Yoshimi Inaba [letters available in PDF format here], the discussions with Toyota were characterized as “helpful,” but that “it left important questions unanswered, including when Toyota learned about this serious safety defect and what actions the company took to investigate and resolve the hazard.” Hearings have been scheduled for February 25, and the Committee’s letter to Inaba requests disclosure of all internal communication related to to the production shutdown, among other company documents.
Supplier CTS, who produced the gas pedals now under recall from Toyota, tells Automotive News [sub] that it “built parts to the automaker’s specifications and says it has no knowledge that its parts were responsible for any accidents or injuries.” Sources at CTS tell AN that although they are working on a fix with Toyota and that new pedals have been tested and are shipping to Toyota plants, “this is their recall.” That would seem to contradict the facts of the case, as Denso, Toyota’s gas pedal supplier for Japanese-built models, has not been involved in the recall. According to Inside Line, the issue with pedal return damping that has plagued CTS-supplied, US-built Toyotas has not turned up in Denso-produced gas pedals. Read More >
Back when GM was going through its recent bankruptcy bailout-related unpleasantness, Toyota’s Yasuhiko Ichihashi told the AP that “Toyota was only hoping for an overall recovery for the U.S. auto industry, including GM.” Months later, then-Toyota President Katsuaki Watanabe even suggested that “it’s not something we would bring up on our own, and we don’t know enough about the restructuring plan, [but] if some talk about supporting GM comes up, we would like to consider it earnestly.” Now that Toyota is in a spot of PR trouble over its unintended acceleration woes, you might expect that GM would show the same class and tact that Toyota did just months ago… but you’d be wrong.
BMW is playing some PR roulette at the DC Auto Show [via Autoblog Green] with a “study” ostensibly proving that people who lease an electric MINI are “delighted” with the car. As if self-selection weren’t already an issue in a study of people who voluntarily spend $850 per month on a small hatchback, the 57 respondents (out of 450 MINI E guinea pigs) were (you guessed it) self-selected. Why the University of California Davis allows its name to appear on this blatant PR fabrication is difficult to fathom. Especially considering the MINI E rollout was a disaster, the product was compromised, and there are plenty of MINI E critics out there.
Former Tesla PR man Daryl Siry’s Wired.com Autopia columns are always good for some interesting insights on the EV world… as long as you take them with the grain of salt that Siry’s status as “advisor” to EV startup Coda Automotive demands. This week Siry has it in for the mass-market EV frontrunner, the Nissan Leaf, accusing its makers of “cutting corners” and “overpromising” range specs. According to Siry:
First, Nissan overpromised on the realistic range by consistently quoting a number tied to the most optimistic benchmark, the LA4 cycle. Drivers who stick to stop and go traffic on city streets in temperate climates may indeed consistently see 100 miles of range, but most drivers will see significantly less in a mix of city and highway driving. Driving in California, the country’s top market for electric vehicles, involves a lot of time on highways where the 65 mph speed limit is rarely observed. The LA4 cycle Nissan quotes mostly stay below 30 mph with one two-minute “sprint” at 55 mph every 22 minute cycle.
I remember reading an article at the time which interviewed both Roger Smith, and Toyoda-san, the head of Toyota at the time. Each was asked, ‘is your company in business to make cars, or to make money’? Smith answered, ‘of course, we are in business to make money’. Toyoda answered, ‘we are in business to make cars, and by making the best cars in the world, we will make money’. While Toyota has had its problems lately (they caught some GM virus), I think the general path both of those companies have taken over the past 30 years shows which strategy works best.
This is fantastic encapsulation of the different directions GM and Toyota have been heading over the past several decades, but it’s also a warning sign for Toyota. The company that rose to the top of the global auto industry by virtue of a laser-like focus on cars themselves is facing a flood of recalls and perceptions of declining quality… and it’s just come out with a PR website called “Toyota Beyond Cars.” Coincidence?
The Chevrolet Volt dancing debacle was pretty embarrassing. So embarrassing that GM felt inclined to step in. Fox News reports that Maria Rohrer, the marketing manager responsible for the “dancing on taxpayers’ money” débâcle has been reassigned to become director of Chevrolet truck advertising. David Darovitz, GM’s PR spokesperson (the poor sod who had to explain the dancing spectacle to the public), confirmed that Maria Rohrer had been transferred but added that “The move had nothing to do with recent events in LA”. Which brings a couple of interesting scenarios. 1: Did GM think she did a good job and promoted her to director of Chevrolet Truck advertising? or 2: Or do GM value the Volt so much, they place it above their lucrative truck business? The Tweet by GM’s VP for Global Communication pictured above certainly indicates the latter. Either way, I’m filing this along with “Cadillac Cimarron”, “Saturn division” and “An American Revolution”, under “GM marketing disasters”.
It turns out the old girl just needed some new paint. Chrysler Group marketing boss Olivier Francoise takes us through the high points of the Chrysler lineup… in under two minutes. Yup, that about covers it.
GM withdrew its sponsorship of the US Olympic team after the 2008 games, because, as a spokesperson explained at the time, “we have other avenues to be able to reach this same audience without bearing the expense of being an official sponsor of the U.S. Olympic team.” However, GM is a main sponsor and official vehicle supplier of the 2010 games in addition to being the main sponsor of the Canadian national team. According to TNS Media, GM was the leading advertiser in the 2006 Winter Games, spending $111.6m and leading the auto sector to a resounding lead in ad spending (total $156.7m). General Motors has reportedly cut back its ad spend on Vancouver, but details aren’t being disclosed. And at least one GM investment in Vancouver-related publicity won’t be paying off: the General Motors Place is being temporarily renamed the Canada Hockey Place in order to comply with IOC standards. We’d normally make some crack here about your tax dollars at work, but Olympic sponsorships are lined up years in advance. Too bad that back in 2007, when GM was losing $2b annually, it denied that its financial status had anything to do with its removal of US Olympic team sponsorship. Had the firm been more realistic about its financial health… well, who knows where we’d be right now.
In case you were wondering, Ed Whitacre’s assessment that the Volt will “make a margin” at a price point “in the low 30s” is the GM Chairman/CEO’s second big lie in as many weeks. Well, lie might be a bit harsh. Gross and willful misrepresentation is probably more accurate. GreenCarReports‘ John Voelcker got in touch with a GM spokesman who confirms what we all pretty much knew from the get go: GM “has not officially announced final Volt pricing, a price in the low 30’s after a $7,500 tax credit is in the range of possibilities.” In other words, we’re back to the same old $40k-ish number that GM execs have been throwing around for ages. Unless GM is talking about the electric-only (non-range-extended) Volt that Bob Lutz recently confirmed. But what about the margin thing?
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