Tag: Marketing

By on June 27, 2011

Since cementing its premium-retro-cutesy positioning in the marketplace, MINI’s been leveraging its two platforms into a niche-munching binge. Soon the MINI lineup will range from cozy Coupe to two-door “Sport Activity Vehicle,” and will include two convertibles, multiple versions of the two-door hatche, two-and-a-half-door hatch, and four door SUV. So what’s missing? A Moke? A Delivery van? What about a re-interpretation of the old Mini Pick Up? You and I may feel like the MINI brand  already has plenty of niche offerings, thanks, but here is indisputable proof (found in a supermarket parking lot) that the market thinks MINI hasn’t chased enough niches. Carry on then, lads…

By on June 26, 2011

The Freep’s Mark Phelan identifies yet another vanishing automotive phenomenon: the six-seater sedan. He notes

The Chevrolet Impala is the only six-person sedan you can buy. Other sedans — regardless of how big they are — have front bucket seats rather than the three-person front bench seat that was once common…

Chevrolet is weighing whether to build a six-seat version of the next Impala. Weighing against it, the car will probably be narrower than the current model. It’s based on GM’s Epsilon II global platform. It’s roomy, but probably not enough to fit three comfortably across up front.

About a quarter of Impalas sold last year were six-seaters…It probably makes sense for Chevrolet to concentrate on giving the next Impala a comfortable and attractive front seat that appeals to the other 75% of its buyers and wins some new customers.

I’m sure that front benches bring back a host of memories for TTAC’s Best and Brightest (mine is of grabbing the Hurst floor shifter in my dad’s 1966 F-100 with both hands and clunking from gear to gear on the way to the dump), and yet somehow I’m guessing that not many will agitate for its return. Like tape decks and carburetor tune-ups, the nostalgia of sitting between two other people in front seat might have a certain appeal in reminiscences, but anyone who actually transports six people regularly these days just buys a crossover. And guess what: the kids might be robbed of valuable future nostalgia (replaced by reruns of Spongebob Squarepants on the rear-seat entertainment system), but neither they nor their parents are likely to choose to go back. And so, we march onward, into an unfamiliar future…

By on June 22, 2011

How many former Saturn buyers do you figure have come back to GM for their next car? What about consumers who last purchased a Pontiac? How about HUMMER? Since we’re not bound to a strict inverted pyramid around here, why don’t you think of an answer (in terms of percentage of customers retained) for each brand and then hit the jump to see how close you were.

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By on June 19, 2011

It’s one thing for a sportscar brand like Lotus to shrug off the self-destructive iconoclasm of its most hard-core “fans,” but it’s quite another thing for its chief executive to take a piss on the entire supercar market while describing the downpour as “authentic, cloud-filtered Alpen raindrops.” To wit, the following bit of nonsense found at Autocar:

The new Lotus Esprit will offer a more “authentic” driving experience than the Ferrari 458 Italia and McLaren MP4-12C, according to CEO Dany Bahar… Bahar claims the Lotus Esprit will “have the character and emotion” that he says the McLaren lacks. He also revealed that the rolling chassis was now complete and fully running prototypes would be ready by November… Formula 1 KERS-style technology is also expected to feature on the Esprit, but Bahar said such electronic systems would be used only where they add to the driving experience and not as driver aids.

If you can make any sense of this blithering nonsense, or how Bahar came to it based on his impressions of a rolling chassis, you must work in marketing. Not that there’s anything wrong with that…

By on June 15, 2011

Having kept a relatively low profile since the disastrous “My Tank Is Full” series of ads, Ram is fighting to help keep Chrysler profitable with a new series of ads highlighting the Ram’s connection to “Wild West” values. And like nearly every bit of advertising approved by Chrysler Group ad boss Olivier Francois, it’s heavy on the hyper-sincere schlock, which makes the spots end up feeling like they’re selling a political candidate rather than a truck. And this just as it seemed like truck ads were slowly moving away from some of their previous cliches. Does doubling down on sincerity and the mythical Western ethos make sense as a way for Ram to catch back up on volume it’s lost over the last few years? Or should Ford’s stunning 50%-ish take rate on EcoBoost V6 engines in F-Series be pointing towards a more pragmatic, consumer-needs-oriented marketing campaign? Watch as many of the ads as you like and be sure to let us know where you see the Ram brand and its marketing effort heading.

By on June 11, 2011

An Ohio judged has ruled [full ruling in PDF here] against Ford in a 2002 case alleging the automaker overcharged dealers by selling commercial trucks at unpublished prices between 1987 and 1998. According to the summary judgement, Ford’s “CPA” program violated its contract with dealers by publishing “unrealistically high” wholesale prices and using “secretive, unpublished discounts” on an uneven basis, thereby overcharging some 3,000 dealers by an average of $1,650 for each of the 474,289 medium- and heavy-duty trucks sold in the applicable time period (about $1.2b of the ruling is for unpaid interest). The story is intriguing in its illustration of the differences between consumer and dealer incentives: while consumer-end incentives can be applied on a market-by-market basis, dealer invoice prices must be evenly applied across all markets according to Ford’s contract with its dealers. The story is also of major significance considering Ford’s still-shaky financial position, with automotive gross cash exceeding total debt by a mere $1.4b. Ford will appeal the ruling, but because the damages awarded are material rather than punitive, an expert tells the Cleveland Plain Dealer, Ford’s appeal could be “interesting.” Which doesn’t sound like great news to us…

By on June 10, 2011

GM has announced details for the 2012 Model Year Chevrolet Volt, and for the second year of production The General is already addressing the Volt’s most controversial feature: its high price. The base MSRP for the Volt will drop from $41,000 to $39,995 for the 2012 year of production, an accomplishment that GM explains

is possible in part because of a wider range of options and configurations that come with the expansion of Volt production for sale nationally.

Wider range of options and configurations? According to the Detroit News, this means navigation and a Bose speakers are no longer standard features on the base-price Volt, but that seven options configurations are now available compared to the 2011’s three. And, on the other end of the pricing equation, the Volt’s fully-loaded price has increased to $46,265 from the $44,278 that Chevy’s configurator tops out at for a loaded 2011. Keyless access with passive locking is the only new standard feature for 2012. With more choices and a slightly lower price of entry, GM is clearly trying to move the Volt away from the “novelty” image that CEO Dan Akerson referenced earlier this week, as it ramps up Volt production for 60,000 units next year. But until the Volt’s price starts dropping without simply offering a less-contented version, the road to mass sales will continue to be a tough one.

By on June 9, 2011

When Ford showed the world its new crop of compact-based cars and MPVs at January’s Detroit Auto Show, it announced that its C-Max compact MPV would be coming to the US in 7-passenger Grand C-Max form. But in a strangely prophetic turn of events (see video above), the 7-passenger model refused to show up. Now, according to Ford, the 7-passenger Grand C-Max won’t be coming to the US… instead the 5-passenger version will be sold as a dedicated hybrid model with a plug-in option. Why? Because it’s big in Europe… and because “One Ford.” Hit the jump for Ford’s explanation, and then wonder along with us: seriously, why not sell the 7-seat version too?

(Read More…)

By on May 30, 2011

A lengthy Automotive News [sub] story on Scion concludes with Scion VP Jack Hollis restating the brand’s basic myth:

Scion was not created for Scion’s sake. Scion was created for Toyota’s sake. It is an investment in Toyota’s collective future.

Hollis’s argument is bolstered by the scenario in which a youngster is attracted to a Scion store by the brand’s youth-oriented marketing, only to leave in a Corolla. Hollis argues that this model means Scion doesn’t have to worry about its sales volume… which is a good thing, considering the brand’s steady sales decline over the past four years. Hollis explains:

We still don’t go with a set [volume] number. Scion wants to be more influential. We want to talk to more people. We’re getting the right people, so the real question is: How do we get more of them?

I don’t know about you, but creating a brand to be “influential” and to “talk to more people” sounds like some vintage, dry-aged, old-school GM branding nonsense. And given that Scion’s sales decline coincided with the rollout of less-distinctive, more Toyota-like products, Scion’s apparent comfort with its recent declines smack of Old GM-style apathy as well (Scion execs respond with the old “but we gave customers what they wanted” chestnut). But don’t worry… Scion has a plan!

(Read More…)

By on May 27, 2011

After the zusammenhang of the bailout era, green car ads have juiced up the competitive battles in automotive marketing, with Chevy attacking “range anxiety,” Hyundai wrangling the asterisks and now, Nissan busting the Volt’s chops for enjoying the odd sip of gasoline. After leading off its Leaf marketing effort with a saccharine ad featuring a polar bear driven by global warming from his arctic home, Nissan is getting back on track by bashing its highest-profile competitor… and given that the EV market is still dependent on early-adopters in search of EV purity, the attack is a fairly shrewd one. Eventually the market will be less hung up on the novelty of pure-electric cars and will look at overall efficiency and capability. For the time being, however, Nissan’s got to make the most of its unmatched gamble on the pure electric car. Watch the ad after the jump

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By on May 26, 2011

Under the terms of its contract with the US Treasury, Fiat will get an additional five percent of Chrysler Group’s equity when it builds a 40 MPG (CAFE, not EPA, so actually about 30 MPG) vehicle in the US. But it turns out that Dodge already sells a car that might qualify… unfortunately, Dodge doesn’t actually build it, offer it in the US, or, starting with the 2012 model year, even bother to rebadge the thing. That’s right, you’re looking at a 2012 Hyundai Dodge Attitude… the only non-red, and one of the only non-Dodge-branded car in the brand’s Mexican lineup [the Hyundai Atos and H100 “Ram Van” are also badged with the Korean brand’s “H.”

(Read More…)

By on May 25, 2011

Surf on over to hyundaiusa.com and ford.com, and the two momentum-blessed automakers will greet you in a remarkably similar fashion: with a lineup of 40 MPG Highway-rated vehicles. Of course, Hyundai would, in its inimitable “asterisk-wrangling” style, point out that Ford’s 40 MPG requires more footnotes than a David Foster Wallace book. But then Ford might shoot back that Hyundai leaves out any reference to City or Highway ratings in its lineup, leaving consumers to play “hunt the legal disclaimer” itself. And as Autoobserver recently noted, highway ratings make for good ad fodder, but combined EPA ratings are much more helpful to consumers.

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By on May 17, 2011

Pop quiz: when does an eight-month-old story generate a huge amount of interest? When it’s got political overtones, of course. And what better way to milk the last dregs of bailout resentment than by telling a story that seems too bizarre to be true: Cadillac is a “proud” chief sponsor of a Chinese Communist Party-produced film entitled “The Birth of a Party” (or “The Great Achievement of Founding the Party” depending on the quality of your translator). The story started last September, at ChinaAutoWeb.com, and was recently revivified by the Washington Times, Commentary Magazine, and Big Hollywood. Our main interest in the story has to do with its lessons about the rise of China, that country’s tortured relationship with luxury goods, its foreign (from the American perspective) political economy and Cadillac’s continued need for better momentum in China… but clearly others are more interested in it for different reasons.

The political point seems to be that government money is being funneled to the Chinese Communist Party via General Motors, an accusation that, though shocking, doesn’t hold up well to scrutiny. After all, nearly anyone doing business of any kind in China ultimately supports the political and economic structure created by the Chinese Communist Party, legitimizing it and lining its pockets. And surely nobody is suggesting GM abandon China altogether, thus eliminating its greatest opportunity for growth. Meanwhile, as the Freep helpfully points out, Caddy needs all the help it can get in China: without a single vehicle in the luxury car top-ten, Cadillac needs to be aggressive in marketing to China. Still, from a PR perspective, Cadillac clearly has a line to walk here… perhaps it should look for less visible (and risible) ways of building up guanxi (connections) with the powers that be in the world’s largest market for cars.

By on May 14, 2011

It started as a flippant Twitter comment, in which GM Global Marketing Officer Joel Ewanick agreed to champion a return for the “El Camino” if 100,000 potential buyers raised their hands for it. Smelling an opportunity for some publicity, Jalopnik quickly picked up on the “challenge” and urged readers to leave a comment in support of the trucklet. At first Ewanick tried to hedge, saying he needed 100k deposits, rather than blog comments, to approve an El Camino for the US market. But now the former Hyundai marketer has taken Jalopnik’s challenge to Chevy’s Facebook page, giving a surprising amount of credibility for a “challenge” that began with a throwaway tweet. What makes Chevy’s endorsement of the “El Camino Challenge” even more surprising: the total lack of apparent enthusiasm.

(Read More…)

By on May 12, 2011

Russian President Vladimir Putin has spent much time and many rubles trying to turn around his nation’s struggling automakers, particularly AvtoVAZ, the makers of the infamous Lada brand. Putin is, after all, a deep believer in the national importance of automaking… which is why he drives a Lada himself. But Putin is also shrewd enough to know that automotive patriotism can have some nasty side effects, which is why his Lada has had its engine discretely swapped for an Opel mill. But apparently Putin hasn’t learned to completely insulate himself from the embarrassment that the Russian auto industry appears to manufacture with at least as much efficiency as it manufactures cars. At the launch of something called the Lada Granta, Putin’s struggles to even start the car were caught on video and posted at Jalopnik. The Moscow Times makes no reference to the humiliating episode, but mentions that Putin hinted darkly to the assembled journalists that the Granta’s trunk could fit “easily take two sacks of potatoes.” If you know what he means… and trust me, anyone who’s been to Tolyatti before does.

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