The search for “potential synergies” between Alfa Romeo and Maserati has already yielded its first bitter fruits, as Auto Motor und Sport reports that a special edition Alfa will be built as a loaner for Maserati owners who bring their cars in for service. Because there’s nothing Sergio Marchionne can’t fix with a special edition…
For all the praise and positive comparisons he earns, Ford’s Alan Mulally still refuses to man up and acknowledge that at least one of his firm’s brands is as meaningful to the American consumer as Kaiser or Cord. And it’s not like Mulally can just ignore the brand’s slide into ignominy: after all, people notice when you never introduce new products for a brand that was wholly comprised of cheap rebadges in the first place. Well, Inside Line noticed, and they cornered Mulally at the Washington Auto Show to get his take on the brand with no purpose.
“The plan right now is (to develop) Ford, Lincoln and Mercury,” Mulally answered.
He said Ford is working to more effectively position Mercury with smaller vehicles that occupy the void between the mainstream Ford brand and Lincoln, which directly targets the luxury-premium market. “That’s our plan — to continuously improve the Mercury and Lincoln brands,” Mulally said.
But after a little more discussion, Mulally felt compelled to reiterate: “That’s the plan right now.”
Based on these teasers for Dodge’s much-anticipated 60-second Super Bowl ad, we’d have to say they’re still working it out. One thing is for certain: if the point of spinning off the Ram brand was to broaden Dodge’s appeal, the new ad wizards aren’t trying hard enough. The ad above, like most of the latest tranche of Dodge ads, is from the old-school, knuckle-dragging, truck-alike, gender-role-based marketing school. In short, the new Dodge is nothing new…
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It’s been a looooong wait and lots of nail biting for Saab employees and Saab enthusiasts around the world, but GM and Spyker have reached a preliminary agreement on a Saab sale. The deal includes amongst other things the rights to the Saab brand of course, the Trollhättan production facilities (which was important to Spyker – more on that in a bit), the rights to produce and sell the existing 9-3’s, the new 9-5 and 9-4x models. Former Saab CEO Jan-Åke Jonsson, who was let go when the liqudation of Saab started, will be reinstated as CEO. He, and Spykers CEO Victor Muller have been named the heroes of this deal – Jonsson for his endurance and stamina “He didn’t walk out the back-door as liquidation started – instead he started nightly negotiations, writes Aftonbladet.se in a tribute to Jonssons’ role. And Spyker’s Muller’s charm and persistence have also been mentioned as a crucial part in securing Saab from GM.
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At the end of an excellent comment on the recent 1989 Camaro RS Curbside Classic, commenter carnick noted:
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 extent to which Honda has lost its mojo has been a hot topic in these pages of late. Though the big H has stumbled with Acura, hybrids, design and other crucial areas, one major positive seems to persist: the strength of the Honda name. Which is why it’s so strange to read Bloomberg report that Honda will launch a new brand in China next year. The new brand, named Li Nian meaning “ideal” or “spirit”, will be used for Honda’s new sub-Fit small car, designed to take advantage of China’s reduced tax on engines smaller than 1.6 liters.
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Does it seem like we were just discussing Chrysler’s brand confusion? Somehow the situation has gotten worse. Just as Chrysler dealers are starting to get their new Ram brand signage up, Ram CEO Fred Diaz Jr had to go and confuse everyone all over again about just what Ram means.
They’re still going to be saying they drive a Dodge Ram. We’re just going to be marketing it as a Ram without ‘Dodge’ in front. Once you explain to the consumer what you’re doing and why, they get it
Or not. Whatever. Ram trucks will continue to have Dodge VINs and will carry references to Dodge “somewhere” Diaz tells Automotive News [sub]. But don’t worry. According to Diaz, the Chrysler Group is “devising a plan that will give compelling missions for each brand.” You know, just in case things are still a little confusing.
It’s been a widely-shared opinion among TTAC’s writers for some time that GM should have used its bailout and bankruptcy to cuts its brand portfolio to Chevrolet and Cadillac. We’ve already sussed out the negative side effects of trying to hold onto the Buick-GMC dealer net, the biggest of which is that without Pontiac, Buick is being forced into volume-chasing. With the debut of the Granite “Urban Utility Concept,” we’re seeing the same brand-diluting volume-hunting taking place at the “Professional Grade” brand. GM’s attempt to bring more youth and volume to its GMC brand is starting with a Youtube-heavy, family-oriented marketing campaign, pointing the way for the brand to betray its “Professional Grade” raison d’etre. But GM’s marketing plan for the Gamma (Aveo)-based Granite will be the final nail in the brand’s coffin. Because to save the brand, GM must destroy the brand.
Having divested much of its premium brand portfolio (Volvo, Jaguar, Land Rover, Aston Martin), Ford is missing out on luxury sales in growth markets like China. So it comes as no surprise that Automotive News [sub] would ask Ford President of the Americas Mark “MKF” Fields whether Ford’s Lincoln brand could go global. Fields’ reply?
Potentially, but we are focusing Lincoln here in North America for right now. We don’t have any plans at this point to take it global. That doesn’t mean in the future we wouldn’t look at that, but it’s very important for us to focus on North America.
According to the Detroit News, production of Hummer H3 and H3T models at its Shreveport, LA plant will stop on Monday, as the in-limbo brand watches its sales collapse. H3 and H3T models account for about a quarter of the Shreveport plant’s capacity, and Colorado and Canyon platformmates will continue to be produced. Meanwhile, the deal to sell the Hummer brand to Chinese firm Sichuan Tenzhong remains unconsummated, reportedly held up by the Chinese government. So when will Hummers go back into production? “When a sale is complete, once marketing kicks back in and there is new interest and enthusiasm, production will fire back up,” says a Hummer spokesman. In other words, never. It’s been a fun ride, Hummer. Thanks for the memories!
Once upon a time, luxury brands built unique cars and added special editions for extra profit. Now luxury brands tend to build more cars based on volume brand platforms, the special edition seems to be giving way to a new phenomenon: unique luxury trim levels. GM has been a proponent of this system for some time, adding Denali trim levels to its GMC upgrades of Chevrolet trucks. Now, The General’s Cadillac brand has announced it will be adding Platinum trim level options to every vehicle that isn’t available in “V” form. The impetus for this is clearly the dream of coaxing BMW “M” or Cadillac “V”-style markups from consumers who don’t care about dynamics or power, but it also fundamentally undercuts Cadillac’s status as a true luxury brand… as well as Buick’s raison d’etre as an entry-lux brand. Or does it?
The very first post-bankruptcy, Chrysler-brand advertisement was a true re-badge, literally replacing Lancias with Chryslers in the exact same advertisement. The second spot, which we ran yesterday, was a vague, year-end spot emphasizing history and heritage while showing only one modern car. Though it’s not a strict re-badge like the Lancia ad, the new Chrysler ad is, at the very least, based on some serious platform-sharing. Specifically the ad above, an Italian-language spot for the Fiat Group, is thematically identical to the Chrysler ad.
You’d have to be a fairly trusting GM dealer to participate in what The General calls its Essential Brand Elements program. After all, it’s just the kind of dealership re-branding exercise that HUMMER dealers were forced into shortly before the brand was consigned to the ash heap of history. And once again, GM is asking dealers to create ideal showcases for its brands while keeping compensation for the renovations on a highly trust-dependent basis. GM wants brand-specific dealership rebrandings complete within three years, but will only pay for them over the next five to ten years reports Automotive News [sub]. And the payments won’t be fixed either, but will rather be tied to the dealer’s annual vehicle shipments using “a seasonally adjusted formula that takes into account the price of the vehicles sold.” According to Chevy’s Sales Manager Kurt McNeil, those payments could “conceivably” cover the recommended changes over the ten-year period. Are you feeling the trust yet?
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