In the annals of poorly-chosen songs, this one is right up there with the State of New Jersey’s almost-decision to make Springsteen’s “Born To Run” the state song. Yes, Maserati, you can do anything, you can be anyone… and you’re choosing to be the brand that pimps upgraded Grand Cherokees by invoking the ghost of Fangio over crappy power-pop. Do you really want to be reminding viewers that this is a conscious choice, picked from an infinite range of options? Because that kind of willful douchbaggery makes you, Maserati, look like you’re a half-step from becoming the official luxury brand of Jersey Shore.
Tag: Marketing
[Editor’s note: the following block-quoted passages were sent to us by an enterprising anonymous tipster (italicized passages were quoted in the original from linked sources). I’ve decided to let the argument speak for itself, and simply interject a few thoughts (non-block-quoted) towards the end.]
On their Q2 earnings call, GM gave this presentation [PDF] and made the following claims:
“On Slide 12, we provide what we view as key performance indicators for GM North America. The 2 lines on the top of the slide represents GM’s U.S. total and retail share. The bars on the slide represent GM’s average U.S. retail incentives on a per unit basis. Now U.S. retail incentives as a percentage of average transaction price and compared to the industry average is noted at the bottom of the slide.
“For the second quarter of 2011, our U.S. retail share was 17.6%, up 1.3 percentage points versus the prior year and down 0.6 percentage points versus the prior quarter due to the absence of the first quarter sales programs. Our incentive levels on an absolute basis have declined significantly from the prior year as well as sequentially. On a percentage of ATP basis, our incentives were 8.9%, down 2 percentage points versus the prior year. This puts us at approximately 103% of industry average levels for the second quarter of 2011, flat versus the prior year.
“In terms of incentive levels, our plan continues for us to be at approximately the industry average for the year on a percentage of ATP basis. These results for share and incentive demonstrate the impact of our plan to produce great vehicles the customers are willing to pay for.”
I did not try to verify the first part of the highlighted claim (that incentives have declined compared to previous year totals), but the second part of the claim (that incentives have declined sequentially) is demonstrably false.
Are car buyers rational? Anyone who deals with car-shopping consumers on a regular basis would probably answer with a hearty “no.” In fact in my experience, helping prospective car buyers navigate the many considerations and options available on the market usually ends with me throwing up my hands and saying “if you like a car, just buy it.” But according to research cited by Wired’s Jonah Lehrer, conscious reasoning might not be the ideal way to shop for a car in the first place. Sometimes “going with the gut,” and making a decision without thinking it through is the best way to solve complex choices like finding the car that’s perfect for you.
Under Penske management, the Smart minicar brand sold fewer than 6,000 vehicles last year, capping a sales decline that led Mercedes to take back management duties for the brand. And, according to the new folks in charge of Smart, there’s only one real problem with the brand: awareness. Or, more precisely, lack thereof. We’ve heard this song before from Smart’s new GM, but now Ernst Lieb, boss of Mercedes U.S.A., is picking up the tune, telling Automotive News [sub] that
With the marketing activities that we’re going to have, we’ll see some positive momentum. The biggest problem the car has right now: Nobody knows it.
Which, of course, is nonsense. Nonsense that allows you to appear aware of the sales problem without acknowledging a single problem with the product itself, but nonsense none the less. And Smart’s not the only micro-car brand that’s reaching for it either, as Fiat-Chrysler marketing boss Olivier Francois has the exact same excuse for Fiat’s weak start, telling AdAge
I don’t think we have a car problem; people love the car. I think we have an awareness problem.
Are Americans incapable of seeing, recognizing or being aware of anything that weighs less than 3,000 lbs? Or is it possible that there are a few things wrong with the Smart and 500?
(Read More…)
When word first began circulating that BMW was considering an X4, I wondered
is BMW trying to prove a kind of automotive Zeno’s paradox, in which niches can be infinitely subdivided?
It was a rhetorical question, of course, and the answer was “pretty much, yeah.” This official BMW sketch preview of the X4, which has been approved for production, shows a three-door version, but according to Autocar,
The car is also depicted in a pair of official BMW sketches. Although they reveal a three-door model badged X3, they hint strongly at the X4’s design, mainly its roofline and front-end styling; BMW sources insist that too much shouldn’t be read into the fact it has three doors.
But if MINI and Range Rover already have three-door “sport activity coupes,” isn’t it just a matter of time before Audi or Mercedes jump on the trend, forcing BMW’s hand? The only problem: there’s only one number between X3 and X5. Which means we will probably end up with an X4 xDrive28i (say) and an X4 xDrive28i Coupe. You know, the coupe version of the coupe version of the X3. Or maybe they’ll just move on to the inevitable X2 coupe version of the X1 and leave the task of trying to tear logical holes in space-time to the crazies manning the supercolliders.
Last fall, the first tests of the new Chevy Caprice PPV, Dodge Charger Pursuit and Ford Taurus Interceptor generated quite a bit of interest here at TTAC and beyond, as three all-new contestants battled to replace the outgoing Crown Victoria as America’s cop car. At the time, the Caprice seemed like the clear performance favorite, but as Sajeev Mehta has pointed out, there’s more to the cop-car equation than pure speed. Although good luck trying to tell the Detroit Three that, as all three are cherry-picking performance stats in the wake of the latest round of Michigan State Police testing.
Cash on the hood is on the rise again, says Edmunds, which keeps track of the Total Costs of Incentives (TCI.) Incentives definitely had been coming down from their January and February highs to reach a low in May (there were cars missing from Japan …), but now, manufacturer largesse is getting greater again. (Read More…)
At the launch event for the 2012 Toyota Camry, the presenting executive noted price reductions of up to $2,000. Quite often such reductions are accomplished by deleting previously standard features. Case in point: the 2012 Volkswagen Passat, where we found that once you adjust for feature differences a $7,180 price drop shrunk to a much smaller, if still substantial, $2,400. So with the redesigned Camry I withheld commenting on the price reduction until I could run the car through TrueDelta’s car price comparison tool.
Once upon a time, this stuff was easy. When Jean Jennings needed a little extra pocket change all she had to do was… make an ad. Like this one, for the Silverado. Or this one, for Jeep (which I swear was still visible less than a year ago). Nowadays, however, you’ve got to be a little more careful about how you go about lending your “editorial credibility” to one of the brands you’re supposed to be covering rather than shilling for. So instead of the straight-up “Hi, I’m Jean Jennings, Editor-in-Chief of Automobile Magazine, and here’s why I love Chevy’s Silverado” pimpatorial of the past, you’ve got to layer on the irony, load up on non-car-related distractions (I’ve got it… a puppet!) and generally avoid the personal testimonial format as much as possible.
(Read More…)
I was listening to a local radio station and as will happen in a regular Detroit newscast, they mentioned something newsworthy going on in the domestic auto industry. In this case they said that Ford would be spending $1 billion on 7 new products to revamp the Lincoln brand. Well that wasn’t really news so I wondered what really was going on and it turns out that the radio station’s news team grabbed a headline from an Alisa Priddle article at the Detroit News. Though the headline was nothing new, Priddle has interviewed Ford designers and product managers and has managed to give us a better idea of what the Lincoln brand will mean once Lincoln’s new team of 120 or so engineers, designers and marketing experts gets done reinventing the marque.
Frank Greve’s “Taking Readers For a Ride” article told us a little bit about the priorities in he auto PR business. If you write for a buff-book, sugar will be blown up your anal orifice. If you are a blogger – tough noogies. That stance is utterly misguided and so past millennium, says someone who knows best. That someone is Scott Painter. Never heard of him? I’m sure you heard of TrueCar. Scott Painter is TrueCar’s founder. TrueCar and competitor Edmunds know the car business better than the manufacturers: Truecar and Edmunds predict monthly sales with razor-sharp accuracy, their analyses of transaction pricing and incentives provide unprecedented (and often unwelcome) transparency. Investor’s Business Daily had an interview with Painter. And what picture did he paint?
“Today, 98% of people who bought a car in the U.S. last month went online first. That is the reality and also the industry’s frustration.” (Read More…)

The American market wasn’t kind to compact Buicks, so none have been offered here since 1997. But, with Pontiac gone, and the Chinese far more interested in small Buicks than Americans ever have been, GM is giving a small (but at about 3,300 pounds not light) Buick another go. Pricing for the 2012 Verano has now been released…officially this time (test pricing leaked back in December). How close has Buick ventured to the stated fancy brand competition? And how far from the closely related (but not a panel or piston shared) Chevrolet Cruze?
You might think that now that Mercedes is coming out with a four-door-coupe-wagon, the four-door-coupe craze of the last several years might be ready to disappear in a puff of internal contradiction… but you’d be wrong. So focused was it on the four-door-SUV-coupe and the bloated-sedan-hatch-cum-GT niche, BMW completely slept through the four-door-sedan niche that Mercedes first attacked in 2004. And as far as the Bavarians are concerned, it’s better to attack a niche late than never. And they’re doing so with a “GranCoupe” that is remarkably similar to the existing 6er coupe… only with two doors. The entire premise behind the four-door-coupe is that it combines the practicality of a sedan with the panache of a coupe. The problem, in this case, seems to be that BMW’s 6er coupe has so little panache, this four-door model blends right into Bee-Emm’s increasingly indistinguishable lineup. Between that and the late attack on a played-out segment, it’s difficult to harbor high hopes for this latest niche-warrior.
First of all, let’s not fool ourselves: this is quite the hypothetical question. For one thing, Fiat is unlikely to federalize the Doblo cargo van that this “Work Up” is based upon until a subsequent generation comes out. In the meantime, the only Fiat Professional vehicle the US market will be getting anytime soon (thanks to CKD production at Warren Truck, according to Allpar) is the Ducato van, which competes fairly directly with Daimler’s Sprinter. But, hypothetically, could this Doblo “Work Up” find a market in the US? Let’s look at what it offers…
It’s been 12 years since BMW offered a four-cylinder engine on a US-market offering, but starting this October, US dealers will begin offering new “TwinPower”four-pot versions of the Z4 roadster and 5-series sedan. And, as BMW’s US-market boss Jim O’Donnell explains to Automotive News [sub], there’s no reason to fear the four… anymore.
It wasn’t in line with our image, because it didn’t have the performance of the six cylinder. We were selling ourselves as the ultimate driving machine and really it wasn’t. Now that the engines have developed so far, it’s not an issue at all.
But now BMW is offering four-bangers because they offer an even better driving experience, right? Less weight, better turn-in, that kind of thing… right?
(Read More…)



Recent Comments