At $103,100, the just-announced Porsche 911 Carrera GTS costs $12,600 more than a Carrera S. With only 23 horsepower more than the S, the GTS’s premium works out to about $548 per horsepower. Or $6,300 per letter on the badge. Sure, you get a rear-drive version of the Carrera 4 body, an option that’s only been made recently available on the über-priced 911 Sport Classic, but other than that (and a claim to the title of fastest Carrera-badged 911 ever built), the GTS doesn’t appear to bring all that much to the table. And though the lightened, more powerful GT3 costs $25k more than the Carrera S, its extra power brings the per-horsepower premium to a more value-oriented $503. On the other hand, a Corvette ZR1 offers 200 hp more than even the GT3 for less money. As has always been the case, if dollars per horsepower is your game, you’ve still got to go to Detroit.
Tag: Marketing
With 15 “new or refreshed” Chrysler Group products launching over the next 4 months [complete product plan in PDF format here], we’re about to find out definitively if a company’s product can be turned around in a little over a year. Given how complex automobiles are, and how deeply uncompetitive many of Chrysler’s products have been, the odds are obviously stacked against Auburn Hills… and Chrysler’s $50m loss on the Grand Cherokee launch is a sign of how scary things can get in a product blitz. But the real question here isn’t how many recalls Chrysler is risking, or how much money it could lose on launch costs and “associated industrial inefficiencies” but whether consumers will actually notice a difference.
The “mid-cycle refresh” is a familiar phenomenon for the American consumer, and few of them fundamentally change the character of a car. Though Chrysler is doing “deep refreshes” on cars like the 200 (neé Sebring), reworking the body, drivetrains, suspension and interior (also, the Durango, 300 and Charger will be “all new”), a number of the new launches will be of plain-old refreshes… like the 2011 Town & Country pictured here. Will the deep changes to some vehicles be lost in the flood of refreshed Chrysler Jeep and Dodge vehicles? More importantly, will refreshes like this one convince consumers that Chrysler has really changed?
Later this month at the upcoming Paris auto show, Lotus will be revealing the first car that reflects their new strategic vision, a vision of going upmarket and luxurious to compete directly with the likes of Porsche, Ferrari and Aston Martin. The car, originally slotted to fill the role of the much beloved Esprit, will now be “something more” than the Esprit. The midengine supercar is rumored to be powered by the V10 engine that powers the Lexus LF-A. Toyota currently supplies Lotus with all of its production car engines. The LF-A’s announced production run of 500 units probably won’t cover that engine’s development costs, so the rumor makes sense.
Gimmicky sales techniques are tough. On the one hand, Hyundai’s 10 year warranty and Assurance buy-back program have helped it become one of the fastest-growing auto brands in the country. On the other, Chrysler’s free gas giveaway, “lifetime guarantee” and its latest, the “regret-free purchase” offer, have all come and gone without materially moving the needle for the beleaguered automaker. In fact, cars.com reports that just 21 buyers opted for the option of returning their Chrysler within 60 days instead of a financing deal. Which makes sense: people buy Chryslers because they’re cheap and they offer lots of incentives. If we’re honest, the option of returning a car because it is of lower quality than the competition shouldn’t really appeal to deal-minded consumers. Which is why only Ram now offers the “regret-free” deal, while the rest of Chrysler, Jeep and Dodge’s nameplates have loaded back up on incentives. It’s clearly what brings the customers in.
To hype its forthcoming Leaf electric car, Nissan has reached for the most manipulative imagery in the green marketing playbook: the Polar Bear. They’re cute, they’re cuddly, and because their icy habitat is being destroyed by regular cars, they will hug you if you buy an EV. Meanwhile, the causes, trajectory, and impacts of global climate change (not to mention its possible solutions) remain extremely abstract and far-away when compared to the political and economic ramifications of global oil undersupply. Too bad market failures and geopolitical instability aren’t as emotionally manipulative as those fuzzy bear guys…
The never-ending tension between the desire to give consumers more choices of in-car gizmos and the need to halt the advance of distracted driving took another confused twist this week, as Onstar announced that it is testing new features that could allow drivers to listen to text messages and update their Facebook status from behind the wheel. According to the DetN, the technology would read incoming text messages or a Facebook news feed to the driver, and could even allow the driver to update their own Facebook status verbally. Needless to say, GM and Onstar are hyping the updates as ways to keep up with Ford’s SYNC on the entertainment front, and because the features are all hands-free, they’re safe… right?
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The use of automotive journalism in car commercials never ceases to fascinate. For example, do consumers really consider Audi over BMW because Audi won three straight Car and Driver comparisons? Has an ad built around the winning of a Motor Trend Truck Of The Year ever “moved the needle” for an actual buyer? More importantly, does Autoblog Dot Com take actual decibel readings before declaring the Chevy Cruze’s interior “Lexus Quiet,” or is that just, like, their opinion? This is, after all, one of the most prominent uses of an automotive blog’s work in car television advertising to date… and for all the advantages that car blogs hold over the buff books, old-school, scientific testing isn’t one of them. On the other hand, at least our online colleagues aren’t quoted stooping to the level of Automobile Magazine, which apparently compared the Cruze to a Cadillac. But are Cadillacs “Lexus Quiet”?
In recent interviews with Automotive News [sub] and AutoObserver, GM’s recently-hired marketing boss Joel Ewanick dished out some of the insights that have earned him the reputation for being an ace image guy. He tells AN [sub] that
Consumers don’t buy General Motors. General Motors sells nothing
Oh, really? Because GM decided to remove the GM Mark of Excellence from its vehicles right around the time it emerged from bankruptcy, the better part of a year before Ewanick was brought on board. Since the first Government Motors joke emerged on the internet, GM has sought to distance itself from its corporate umbrella’s brand… and this is the insight Ewanick is bringing to the organization? Hell, Automotive News [sub] suggested that “Stop mentioning General Motors” when he was hired in June of this year. Which leaves Ewanick only one choice: don’t talk about General Motors more than anyone might imagine.

GM is announcing the arrival of the first “driveable Volt” in China, in a move that GM’s China boss Kevin Wale calls a sign of The General’s “long-term commitment to bringing our industry-leading technology to China.” And despite a distinct lack of Chinese demand for green vehicles, a recent survey that shows as much as 75 percent of Shanghai’s drivers plan to purchase an EV in the next three years (not to mention government plans for increased EV subsidies) is giving GM hope that its plug-in will take off there. But in order to achieve Chinese-market success with the Volt, GM will likely have to offer the vehicle at a price point well below its US-market MSRP of $41,000.
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We don’t just want it to be seen,” said Jeff Eggen, Ford’s car experiential marketing manager, speaking about the Fiesta’s appearance in “Diaries.” The idea is to “have a second element or a third element” rather than just a placement on a TV program, “where we can engage with the fans outside of the show with additional content
While AdAge raves over Ford’s “product placement plus” marketing scheme for the Fiesta, actual customers for the Mexican-built subcompact are starting to get testy. The Fiesta’s Facebook page is home to several customer complaints about slow delivery of Fiesta, and Ford has already sent out $50 Mastercard gift cards to waiting customers. But in the letter accompanying the gift cards, Ford blamed hurricanes for Fiesta delays… and it turns out there’s more to the story than that. The Freep reports that 6,000 Fiestas were delayed last week due what Ford’s Mark Fields calls “a part-quality issue.”
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Earlier today, I noted that
Revitalizing a once-dominant domestic brand is a lot harder than telling the quality-improvement story of a once-reviled Korean value brand
and I think this video helps prove the point. For a brand like Hyundai, highlighting product details helped change perceptions… but then, Hyundai has never asked Americans to think of their cars in especially emotional, patriotic, or culturally significant ways. They’re just high value cars that have become better and better over time. For GM and Chevrolet’s new top marketing execs (freshly poached from Hyundai), the plan seems to be to follow the Hyundai “quality story” gameplan, with a little awkwardly hip flair. For a brand that’s been “the heartbeat of America,” “like a rock” and more, this latest video seems stuck in “excellence for everyone” (i.e. generic and directionless) territory.
Besides, when the word “solid” is used in marketing materials to describe a “3,100-3,300 lb” compact car, it sounds a little like a Mom calling her kid “big-boned.”
Why build the sexiest-looking “green car” to date, only to advertise it using cobbled-together promo clips and a royalty-free techno beat? Other than the fact that several production delays indicate that every available dollar should go towards actually making the Karma production-ready, of course. [via Jalopnik]
Hyundai’s most famous superbowl ad may have imagined executives at Lexus and BMW getting steamed at the success of the Genesis, but that’s not necessarily where the upstart Korean brand is making the biggest impression on competitors. In fact, it’s Hyundai’s ability to market value so successfully, even in the premium space, that’s got the other automakers steamed. But instead of getting mad at Hyundai’s building momentum and reputation, GM’s getting even. Having already poached away former Hyundai marketing boss (and the man behind this ad) Joel Ewanick to lead GM’s entire marketing effort, GM just snagged Ewanick’s replacement as VP Marketing at Hyundai, Chris Perry, to head up Chevrolet marketing [via Automotive News [sub]. That’s right, two VP’s of marketing from the same upstart Korean brand, both poached away by GM… You think The General might be looking for people who can tell the momentum-turnaround, finally-getting-some-respect-around-here storyline?
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The core consumers would be interested in technology and kind of early adopters
Coda Automotive senior VP for sales and distribution Mike Jackson (yes, the former GM marketing whiz) describes the market for his firm’s forthcoming electric car. So what is Jackson’s “kind-of-early-adopter” Californian consumer looking to get out of the Coda? A redesigned Mitsubishi platform, built and bodied in China for one thing. Chinese lithium-ion batteries delivering “90-120” miles of range, and guaranteed for eight years or 100k miles (3 years, or 36k miles for everything else) for another. 134 HP and 221 lb-ft, good for a top speed of 80 MPH. An 8-inch navigation screen with real-time traffic updates. And for you, they’ll throw in 17-inch alloy wheels. But the Coda EV’s most striking feature (at least in terms of appealing to tech-oriented Californians) is best summed up in the measured prose of AutoWeek
It has fairly bland, universal styling and is roughly the size of a Chevrolet Cobalt.
Holy unfortunate comparisons, Batman!
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We are not even considering abandoning our campaign. Like every guarantee offer, ours also has conditions and these conditions are presented very clearly.
Opel’s sales and marketing boss Alain Visser fires back at Germany’s Wettbewerbszentrale (competition authority), which recently accused Opel of misleading consumers with its newly-launched “Lifetime Guaranty.” The Wettbewerbzentrale had argued that Opel’s warranty was “a lie” because, despite having no time limit, it only applies for the first 160,000 kilometers… which by definition is less than a car’s lifetime, right? According to Opel’s Visser [via Automotive News [sub]], that might not be the case.













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