Tag: Marketing

By on August 11, 2011

With US gas prices at some of the lowest levels in the world, it’s not too surprising that US consumers aren’t overly anxious to go electric, but what about in Germany, where gas prices are near double the US’s? According to Thilo Koslowski of Gartner Research, interest in EVs remains low there as well, and the big gainer in recent years has been hybrid technology… at the expense of the once-ubiquitous diesel, demand for which has “peaked” according to Koslowski’s research. Says the man who coined the term “the trough of disappointment,

Although the majority of German consumers continue to see EVs’ benefits in environmental and socioeconomic implications, broad adoption of EVs will remain low as long as current offerings don’t meet drivers’ practical usability and cost-saving requirements. To expand from early to mainstream EV adopters in Germany, automotive companies must focus on technology innovations, offer pricing strategies that are aligned with established premiums for diesel and hybrid powertrain options and develop diverse EV model mixes targeted at younger consumer segments that have higher EV interest levels than older demographics… E-mobility will become a viable addition to future transportation scenarios in Germany, but automotive companies and the German Government must address marketability requirements of EVs, prioritise technology investments and continue to promote cross-industry collaboration. Future mobility concepts will consist of diverse powertrain choices and business models that will leverage technology to satisfy consumers’ transportation needs while challenging traditional car ownership.

By on August 11, 2011

The US won’t be receiving the hatchback version of the forthcoming, front-drive Mercedes A-series, but we will be getting this “CLC” four-door coupe based on the same platform. But, if American owners can’t tell the difference between front- and rear-drive, will this CLC cannibalize the C-Class? According to AutoBild, it will be only 2cm shorter than the C-Class sedan, and its wheelbase is only 6cm shorter. In Europe, they say the CLC will be bought by 45-50 year-olds with two kids and enough money to spend €5k more than the average A-Class buyer. But in the US, where this will form the Mercedes entry level, and where shoppers tend to be more value-oriented, couldn’t you see a cheaper, front-drive/AWD CLS lookalike stealing sales from the rather subdued C-Class?

By on August 9, 2011

With GM’s share price currently hovering below $25, well under its $33 IPO price, The General is holding its second annual Global Business Conference in hopes of encouraging investors the world over to buy into its turnaround. A webcast is currently streaming over at the GM Investor Relations website, but the key points are available in slides available in PDF here. The presentation involves nearly every level of GM’s business, so listening in and reading the entire PDF is going to be the best way to make sense of what GM is trying to communicate… but if you just want an overview, check out the gallery below for a few hand-picked slides, illustrating some of the more important points.

By on August 8, 2011

You know it’s time to say “Toto, I don’t think we’re in traditional journalism any more” when fanboys get better access than industry rags. In a story picked up by Automotive News [sub], myfocuselectric.com commenter whitgallman showed the auto media what can be done if you just send a few emails… as long as you make it clear that you are only interested in buying a car, not embarrassing the program. Because then, instead of languishing in some disinterested inbox, your emails actually draw a response, like this from David Finnegan, Electrified Vehicles Marketing Manager at Ford:

For the first few months of production, we will be concentrating on California and New York. Our dealers in those areas will be the first to have their retail orders scheduled and receive the Focus electric. We will be rolling out to the remainder of our initial markets starting in spring 2012.

Well, that was news to Automotive News [sub], which had been told (along with everyone else) that the Focus Electric was supposed to launch in “late 2011” in 19 US markets. So what happens to Focus EV intenders in Chicago, Detroit and Seattle (among others)? Per AN [sub]:

As for the rest of the country’s markets, no word yet from Ford, so the best advice is to be patient.

Uh-huh. We’ll send some emails ourselves, but we aren’t holding our breath for Ford to admit that, say, buying the Focus EV wholesale from a supplier may not have been a great idea. Or that there are problems with the batteries (again, hypothetically). But there I go thinking like a “traditional journalist” again…

By on August 8, 2011

When should a redesigned car get a new name? Whenever the old one wasn’t a success? Or virtually never? Can car companies count on the excellence of a new car to reverse whatever damage was done to the public perception of the model name in the past?

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By on August 3, 2011

Tata’s Nano was launched with much fanfare in 2009, as the world’s cheapest car and a symbol of India’s automotive and economic aspirations. But first Tata had problems with its factory, which was to be built on land [allegedly] stolen from local farmers. Then, early last year, the cars started catching fire and refused to stop. Then finance was the issue, and when Tata revamped its finance, advertising and retail presence, it looked like things were beginning to improve. It turns out the bump was short-lived. After hitting 5k monthly sales last December, volume has fallen again dropping to 3,260 units in July (1/8th the volume of its main rival the Maruti Suzuki Alto) according to indiancarsbikes.in, which reckons

Startlingly, the most fuel efficient petrol car in the country, which is the most inexpensive too isn’t finding takers in a market troubled by high petrol prices and rising loan interest rates, that is clearly favoring cheaper and more fuel efficient cars… the market isn’t biting and the Nano sales have begun the downward spiral, this time continually.

So, what’s Tata going to fix to get its attempt at “India’s Model T” back off the ground. How about “everything”?

(Read More…)

By on August 1, 2011

Fiat’s 500 is a tough vehicle to figure out. On the one hand, it’s got a lot of intangibles going for it: it’s got huge fashion appeal, it gets far better fuel economy than anything in the Chrysler Group’s US stable and it grabs attention like nobody’s business. On the other hand: the sales stink. Chrysler expected to move some 50k Cinquecentos this year, but after three full months of sales (only 500 special editions were sold in March), the 500 had moved fewer than 5,000 units through June (4,944, to be precise). Fiat has admitted that the 500 launch is “a tiny bit behind schedule,” and the first official ad (which I count as another positive intangible) is only just going live this week. It’s miles better than the glorified tourist bureau video that has since disappeared from Youtube, but can it motivate 45,000 hip young (at heart) things to buy into the next small thing? We’ll certainly be watching July sales with interest. But if Fiat doesn’t get the ball rolling towards New Beetle-style iconic status in the US, the 500 could go the way of the Smart: iconic, but for all the wrong reasons (namely a challenging combination of price and size).

By on July 27, 2011

Despite the domestic auto industry’s bailout-fueled turnaround, there are a few challenges that the Detroit-based firms have yet to overcome: sales on the West Coast for one, and sales to young people for another. TrueCar tackled the scope of this second issue, digging through millions of transactions to determine the favored cars of both Generation X (ages 28-45) and elderly buyers (65 and up). The results? Buick is still tops with the old folks, despite aiming for younger buyers with new, European-derived products. Lincoln, Cadillac, Chrysler and GMC and Chevrolet round out the top six before the first import brand, Porsche, arrives at number seven. There are few surprises by model choice as well, with the Town Car, Lucerne, DTS, CTS, STS, Azera, Impala, LaCrosse, MKZ and Avalon making the top ten old-folks cars. On the Gen X side of things, import brands still top the list, with VW, Land Rover, Audi, and Mazda taking the top spots, and Jeep taking the top domestic spot at number five. By model, the Routan, M3, Quest, Armada, and Oddyssey take the top five spots for Gen X buyers, with only the Chevy Aveo representing the domestic brands in the top ten. cars with Gen X buyers.

What does it all mean? The domestic manufacturers are still most attractive to traditional, older buyers… spelling long-term issues for the domestic brands. GM, Ford and Chrysler still face huge challenges in attracting younger buyers, and will need to address this problem aggressively  if they want to build on their short-term turnaround.

By on July 22, 2011

Every automaker is in this business to make money… there’s nothing surprising about that. But some are a little more focused on profits than others, and it should be equally unsurprising that Porsche is one of them. In an extensive interview with Automotive News Europe [sub], Porsche CEO Matthias Mueller gives a strong impression of how Porsche sees itself over the course of the first two questions:

What is your vision for Porsche in 2018?

Porsche is synonymous with sports cars – yesterday, today and doubtless tomorrow as well. In addition, in every other segment where we operate, such as with the Cayenne or Panamera, we always offer the sportiest vehicle. At the moment we are hard at work on our future strategy. And I promise you, it will contain a few exciting surprises.

What are your most important objectives?

We want to remain the world’s most profitable car manufacturer – and build on this position.

These are actually two separate goals altogether, and not two which necessarily go hand-in-hand. But if anyone can pull off the mix between performance and profit, it’s Porsche… and to understand how this strategy will play out in the near future, let’s take a look at Mueller’s product plans.

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By on July 21, 2011

The internet has been a boon for car buyers in a million ways, but for new car marketers it’s been a decidedly mixed bag. GM’s California-only experiment selling new cars over eBay was quickly abandoned, after generating more embarrassment than sales. Now, another high-ish profile online new car marketing gag has flopped, as Autoweek reports that Groupon’s car debut is going nowhere:

Only four consumers agreed to pay $200 for a $500 discount voucher on a new-vehicle purchase at LaFontaine Buick-GMC-Cadillac in Highland, Mich. Groupon and LaFontaine had set 10 as the minimum required for the vouchers to be issued.

For companies like Tesla, who hope to do without traditional franchised dealers altogether (Chrysler may harbor similar desires), the internet is next great frontier in new car sales… but the eBay and Groupon failures are troubling signs for that dream.

(Read More…)

By on July 21, 2011

The word “truth” in our title has long been a cudgel for our critics, who, finding fault with our analysis, condemn us for failing to publish their version of the truth. But, as I’ve steadfastly maintained since taking up TTAC’s editorial reins, we do not hold ourselves up as the sole source of truth. Rather, by provoking an engaging discussion, we hope that our readers will use our posts as a jumping-off point to debate the issue at hand with vigor. The truth, as I find myself saying again and again, is a journey, not a destination.

Accordingly, I’m always thrilled when manufacturers read our pieces and offer up their own counterpoint to the discussion, broadening our understanding of the issue at hand and moving the conversation forward. One of my posts from yesterday, which examined GM’s decision to invest in full-sized truck production in the midst of CAFE negotiations and an inventory backlog, has drawn just such a thoughtful response from GM’s Tom Wilkinson, which is published after the jump. It provides some inside perspective on GM’s decision to move forward with the next generation of full-sized pickups, and is a great example of the kind of conversations that TTAC hopes to start every day.
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By on July 20, 2011

What do we mean when we talk about assemblies of steel, carbon and plastic in terms of “emotion”? Every craft has a very narrow dividing line between mere technical proficiency and creating something that’s greater than the sum of its parts, but few crafts enjoy a cadre of critics that are as obsessed with constantly defining this line as auto journalists. I suppose that after spending enough time driving and trying to evaluate cost-no-object luxury items the line may become more obvious, as skills are sharpened and observational powers are honed. But more than increasing the ability to define the line between mere “excellence” and “greatness” or “proficiency” and “emotion,” a career of supercar driving largely seems to reinforce the importance of simply having that line. After all, what’s more important to the reviewer of supercars: preventing some poor soul from squandering a quarter of a million dollars on the wrong supercar, or establishing their own exquisite taste? Here’s a hint: only one of these things keeps the gravy train rolling. So when you’ve got two similarly-performing supercars competing directly for the attentions of the well-heeled, few will actually care which laps what the fastest… and when the going gets tough, the tough get wobbling.

This is all well and good… after all, everyone wants to drive a Ferrari 458 and a McLaren MP4-12c, but nobody wants to go through the motions of justifying why you think one is fundamentally better or worse than the other. Besides, consumers are free to understand that one man’s “lack of emotion” is another man’s everyday usability… or “waste” their money on the car the journalist says he prefers. But when McLaren comes out and gives the latest mid-engined Ferrari a run for its money with its first roadvcar in over a decade only to be met with accusations of a “lack of emotion,” there’s no way a self-respecting sportscar firm would make a change to their baby. But that’s exactly what’s happening…

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By on July 19, 2011

Despite signs that the horsepower wars are over (or have at least been refined), nobody would argue that the American market lacks for high-powered offerings. Except, apparently, Dodge and its crack ad team at Wieden + Kennedy who have based the latest Durango ad around the idea that performance is dead in America. This canard is so preposterously misguided and thoroughly misinformed that I can’t even bring myself to lay out the all-to-obvious critique piece-by-piece. Instead, let’s turn to the legendary auto ad-blaster, the Autoextremist himself to point out why this may well be one of the most stupid car ads in a long time.
(Read More…)

By on July 19, 2011

My, what a busy morning it’s been for EV news! Now Nissan is jumping into the fray by bumping the price of its 2012 Leaf EV by $2,420, reports Automotive News [sub]. But don’t worry, you’re getting something for that extra money…

Compared to 2011 model year’s $33,630 base price, including delivery, the 2012 model will begin at $36,050. The car’s upper-grade SL model will sell for $38,100, an increase of $3,530 over 2011.

Brian Carolin, Nissan North America Inc. senior vice president of sales, was to tell an electric-vehicle industry audience in Raleigh N.C., this morning that the 2012 model will contain two new standard features, according to his prepared remarks.

One is a cold-weather package that includes heated seats and steering wheel and a battery warmer. The other, available on the car’s more expensive SL model, is a standard quick-charge port that allows the vehicle to be recharged up to 80 percent of capacity in under 30 minutes.

So, just as Toyota goes public with its fears about the ChaDeMo DC rapid charge protocol, Nissan doubles down on the standard by offering compatibility on the higher trim level (incidentally, Nissan says that 93% of sales are of the upmarket SL trim, and “most” customers opt for the optional ChaDeMo DC charging compatibility). As if raising prices by over two grand after less than a year of sales weren’t risky enough, Nissan is also gambling that ChaDeMo will win out when the SAE rules on a DC fast-charging protocol for the US market. At this point, it almost seems as if the charger compatibility issue might be more of a risk than tthe price…

By on July 19, 2011

Toyota may not be making pure EVs widely available next year as some outlets are reporting, but it will start offering a different kind of plug-in car in 2012. We’ve already heard about Toyota’s experiments with a bi-directional charger that could serve as a backup power source for your home in an emergency, but Toyota is taking the car-as-powerplant theme a bit farther next year, as Automotive News [sub] reports

Next year, Toyota Motor Corp. will start offering AC electric outlets as an option on its popular Prius hybrid so drivers can plug in household appliances — from computers to refrigerators.

The idea was born from watching victims of Japan’s March 11 earthquake using the Toyota Estima hybrid van as a source of emergency electricity when the power was knocked out.

It is the only Toyota model currently offering a standard AC outlet.

But Toyota wants to add them to the Prius next year and eventually across the hybrid lineup. One hitch: It will be offered only in Japan initially. Concerns about different voltages and safety regulations are keeping the technology off export models at least at the start.

Toyota may be only offering the system in Japan at first, but this step offers a fascinating insight: clearly Toyota believes consumers would rather take electricity out of their cars than put it back in. It’s a new interpretation of the plug-in concept and one that, as a blogger who’s always looking for on-the-go laptop power, I can certainly appreciate.

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