This Cadillac ad is the latest in a series of seriously good spots for the CTS-V, which started with this “Competition” ad from last Summer. But then, as I found in a short drive, the CTS-V writes its own ad copy, 556 HP at a time. And this latest spot has one minor truth-related omission: though GM rightly claims that Magneride Magnetorheological suspension was “perfected” in the CTS-V, it actually debuted in the less ad-dollar-worthy 2002 STS. And there’s no mention of the fact that the technology was developed by Delphi, then a technically independent firm, and the technology has since been sold to Beijing West Industries. Of course, these details aren’t exactly worthy of the limited time available in a 60-second spot, but it’s the truth, dammit. “Just sayin…”
Tag: Marketing
GM tightened its ties with Volt battery cell provider LG this week, announcing a deal to jointly develop next-generation electric vehicles. GM, along with the other Detroit-based OEMs, have been seeking closer ties with their suppliers, and as the JoongAng Daily reports, this deal helps LG at a time when the Korean conglomerate has been struggling
Two of LG’s pillars – LG Electronics and LG Display – are floundering. LG missed the boat on smartphones and persistently-low prices of display panels have plagued LG Display.
LG officials are hoping the EV project will give it momentum.
And though it’s no surprise that GM wants to move into the pure-EV market, its gamble on the extended-electric Volt has backed it into something of rhetorical corner.
(Read More…)
GM spent $4.26 billion for advertising last year, globally. 67 percent, or $2.85 billion were spent in the U.S. A good chunk of this budget, around $3 billion, are up for review. Meaning: The agencies that handle it must come up with concepts and defend theirs against concepts of other agencies that want to handle the funds. Please note that this has nothing to do with creative ideas, or not in the true sense of it. We are talking media buying here, buying time on network, space in magazines, clicks on Google. It should be as interesting as deciding whether your accounting work will be done by Peat Marwick or by KPMG. (Loud howls of protest from the media agencies, who are as proud of the cleverness of their media plans as the CPA firms are pleased with their creative accounting.)
The adworld is abuzz about the move, $3 billion possibly changing to new handlers can shake up carefully cultivated relationships. The question everybody is asking: “Why?” (Read More…)
When Mercedes featured hooded death in an ad for its Brake Assistance System, our own European automotive advertising veteran, Bertel Schmitt, wrote
never in my life would I have expected to see the grim reaper in a car ad. Especially not in the death seat. Especially not in a Mercedes ad. The boys from Sindelfingen never were known for their daredevil approach to advertising. Even at Volkswagen, which used to take more risk in their campaigns (< - they said this one wasn’t approved), any ad showing an old man with a scythe would have been immediately – - killed.
Of course, most Americans wouldn’t bat an eye at an ad featuring death… from politics to sales, our culture is built on scaring people into buying/accepting things. But this Dutch ad for the Hyundai Veloster, which was apparently approved and then banned, would have caused a few quizzical looks in any country. Not because it features death incarnate, but because advertising the Veloster’s freaky three-door layout as a safety feature is just that absurd. This ad should never have seen the light of day for the simple reason that it’s an old-school and utterly conventional approach (by banned-ad standards, anyway) to marketing one of the few cars on the market that is willfully and unnecessarily unique, simply for the sake of being unique. Surely, in this age of appliance-like cars, conventional styling and unadventurous product planning, uniqueness is enough of a marketing hook on its own…
When, a few days ago, I wrote my rant about GM wanting to be like Apple, I did a bad job. My point was not that GM can’t be like Apple because it doesn’t have an aluminum unibody, my point was not GM’s number of platforms, my point was not that GM wants to marginalize Opel by being Apple, my point was not that Ford is closer to being Apple, my point was not that Sony and its “Sony timer” will never be like Apple, my point was not that Apple is like BMW.
Apparently, I failed to get my point across.
My point was that any CEO or marketing manager who wants his company to be like another company should abdicate and apply for a job at that other company. Or that he should be taken out and shot, in an act of mercy killing. (Read More…)
With the environment taking an ever-larger place in automotive advertising, it’s interesting to note that Fisker’s latest brochure puts green in its place: behind sexy. Of course these sultry images [via BusinessInsider] aren’t free from environmental overtones, featuring taglines like “designed to get you hot, not the planet,” but it’s clear that Fisker is more heavily relying on the most traditional tool in the advertising playbook. Why? For one thing, even though Fisker is delivering Karmas, the EPA has not yet certified its efficiency rating… so we don’t even know how environmentally friendly it is yet. For another the Karma’s main rival, Tesla’s forthcoming Model S, is pure electric and therefore more appealing to wealthy environmentalists. Finally, unlike environmental messaging, sex doesn’t remind people that Fisker was the beneficiary of over half a billion dollars in government loans. Plus, sex is still, well, sexy. The more things change, the more they stay the same…
Volt owners gather before their parade down Woodward
Photos courtesy of Cars In Depth
As part of the festivities surrounding the Woodward Dream Cruise, GM organized a parade down Woodward and back up again made up of 50 Chevy Volts driven to the event by their owners, at their own expense, from around the country. As far as car company promotional events go it was fairly low key (I was asked not to publicize the pre-parade reception for the owners) but it was clearly a high priority item for GM. The Volt marketing team was out in force and they brought in NASCAR champions Jeff Gordon and Jimmie Johnson, who are racing at Michigan International Speedway this weekend, to wave green flags at the start of the Volt parade. Gordon and Johnson both own Chevy dealerships and they both personally own Chevy Volts. They race for Rick Hendricks, who owns quite a few Chevy (and other GM) stores himself. There were news teams from at least two of the Detroit tv stations and a satellite truck that I believe was used for a national network or cable interview of the NASCAR drivers. GM also brought out a number of pace cars from their private stash of Camaros, Corvettes and even one Chevy SSR that paced races at Indianapolis and Daytona. There was also the ZR1 that set a lap record for production cars at the Nurburgring. Marketing being what it is, the parade also included 2 squadrons of Chevy’s most recent new product, the Camaro convertible and the subcompact Sonic. There were 100 cars in total, one for each year in Chevy’s current centennial.
There were t-shirts and baseball caps for the guests, and the Volt owners each got a nice die cast model of their car, but the Volt owners weren’t there for the swag or for autographs, though they eagerly accepted both. The Volt owners were there because they really, really, really like their cars.
With Honda and Toyota struggling to catch up after months of tsunami-related supply interruptions, Nissan’s been passing its major Japanese competitors in sales volume, and they apparently want to keep it that way. As Bertel has reported, Nissan was able to walk away from the tsunami’s devastation practically unharmed, and it’s leveraging its strong supply of vehicles to make hay while the sun shines (or while its competitors are struggling to catch up). This ad, which is a simple reminder to consumers, is only slightly tinged with competitive feist in a scene depicting a frustrated Honda customer. Overall though, there’s not much messaging needed: Nissan has cars, other Japanese competitors don’t. And right now, that could be one of the most effective marketing messages out there. After all, as Autoobserver points out, folks trading in Japanese cars still overwhelmingly buy another Japanese car… so simply having Japanese cars on dealer lots is a huge advantage at the moment.
I’m sure this headline will get Mopar fans’ backs up, but it’s the cold-hard truth: the American Consumer Satisfaction Index rated the Chrysler brand lowest of all automotive brands, with Jeep and Dodge tied with Mazda for second-to-last place. And though the graph above shows historical scores, the latest rating is based on interviews with US consumers in the second quarter of this year. Hit the jump for a graph of the latest ratings, but first check out those historical scores. I’m not generally a fan of this kind of survey, as exemplified by the infamous JD Power “Initial Quality” survey, but the most dramatic line on this jumbled graph, belonging to Hyundai, matches that brand’s sales progress amazingly closely. That tells me this “satisfaction index” says something about how well each brand serves its intended customer… which, as Hyundai proves, can (but doesn’t always) lead to sales growth. The counter-example: Cadillac has long been a top contender, even when it sold less-than-entirely-competitive products and was losing sales. With that in mind, let’s take a look at this year’s results.
While Chrysler Group sends its Fiat 500 upmarket with Gucci special editions, its sending its Dodge, Chrysler and Ram brands downmarket with a lower prices, 90-days-same-as-cash deals and a variety of tie-ins. First up, the news [via Automotive News [sub]]that Chrysler is cutting the price on 200 and Dodge’s Avenger by $200, and the Dodge Journey by over $1,000 [UPDATE: plus,$3k off Grand Cherokee] is strange indeed. Chrysler’s sales, market share and transaction prices are up, while its incentives and fleet sales are down… and meanwhile, its key competitors are raising prices on increased material costs. Oh, and average transaction prices across the industry have been breaking records all year. With volume slow and prices (as well as costs) rising, Chrysler has no real reason to be lowering prices beyond hunting for volume that may or may not be there. At the expense, it must be added, of profitability. But if you look at Chrysler Group’s most recent maneuvers, it seems that lower prices might not an isolated move on market share. It seems that Chrysler Group is actually strategically positioning itself as the Wal-Mart automaker… literally.
The International Crime Complaint Center (IC3) warns that
Online vehicle shoppers are being victimized by fraudulent vehicle sales and false claims of vehicle protection (VPP) programs… Criminals also attempt to make their scams appear valid by misusing the names of reputable companies and programs. These criminals have no association with these companies and their schemes give buyers instructions which fail to adhere to the rules and restrictions of any legitimate program. For example, the eBay Motors Vehicle Protection Plan (VPP) is a reputable protection program whose name is commonly misused by these criminals. However, the VPP is not applicable to transactions that originate outside of eBay Motors, and it prohibits wire transfer payments. Nevertheless, criminals often promise eBay Motors VPP protections for non-eBay Motors purchases, and instruct victims to pay via Western Union or MoneyGram.
No wonder online new car sales have been struggling. Hit the jump for IC3’s list of warning signs.
Despite marketing its Lincoln brand as “not just luxury… it’s smarter than that,” Ford has finally admitted what the car guy world has been saying for some time: Lincoln isn’t a luxury brand… it’s a rebadge brand. Ford’s product honcho Derrick Kuzak tells Automotive News [sub] that the jig is up and there will be
No more badge engineering
Promise?
(Read More…)
The easy answer: desperation. More literally though, all three have recently employed the talents of hip hop producer Swizz Beatz in more or less desperate attempts to recapture some much-needed cool. Unfortunately for Lotus, the most recent employer of Mr Beatz, they’re not only getting “sloppy thirds,” but they have to actually share promotional space with Reebok, of all brands. So why did Lotus, a brand with loads of heritage and under-the-radar cool, hire a guy to pass along such brilliant advice as “the key is to infiltrate the market in a cool way” and “for a premium sportscar, they want the flash”? According to Lotus’s release (with video)
1. Like Group Lotus , he means business: He’s a risk taker with considerable credentials including music producer, rapper, designer AND painter.
2. Like our cars, he’s multi award winning: This year he shared a Grammy Award with Jay-Z.
3. Like Group Lotus he keeps good company: This man regularly works with the likes of Bono, Kanye West, Beyoncé and Alicia Keys.
Even if you think Lotus should avoid the “enthusiast trap,” this is a bad call. Having already pimped for Aston-Martin, Swizz’s automotive-sector cool has been spread thin… and does Lotus really want to be associated with his other comeback client, Reebok? The answer: no, but it’s already too late. Lotus was already putting the cool cart before the new product horse, and hiring a prominent and over-booked shill certainly won’t help.
With the world’s established automakers facing increased competition from ascendant Korean car brands, and with even more competition from Chinese automakers just over the horizon, the key to continued success is leveraging every single advantage that’s been accumulated in the past. Traditionally those advantages have been technical, whether in engine technology, suspension set-up know-how, or long-established relationships with suppliers. But as technical advantages fade, brands are having to cash in on their other, less tangible assets… including heritage.
(Read More…)
If you answered in the negative when we asked if Fiat would be able to make its 50k unit sales goal in the US this year, you were right. Executives for the Italian brand tell Automotive News [sub] that
“We lost the whole first quarter”… If the store openings had occurred as planned, the sales target would’ve been achieved… Now, that will “probably not” occur this year.
This is no real surprise. Thanks to the slow rollout, Fiat has sold only 7,982 units so far this year… but even with sales at their current levels (3,083 units in July), sales would only barely top 36k units in a 12-month period. Of course, next year the 500 is joined by a higher-performance Abarth version (no, not that one) as well as a hideously expensive electric version, so sales should continue to climb. On the other hand, the brand is hoping for 100k units next year, or about double the MINI brand’s 12-month average… so Fiat may well be looking at another missed sales goal anyway.
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