GM has announced pricing on its next small thing, the Cobalt-replacing Cruze compact, and the new price of entry is $16,995. That’s about a $2,000 premium over the base Cobalt (which starts at $14,990), a price hike that is justified by Chevy’s high expectations for the Cruze. As Chevy’s Jim Campbell puts it

For the price of a compact car, Cruze offers the styling, safety features, roominess, amenities, and refinement of a much more expensive car.

Base prices for the Cruze’s main competitors are $16,200 for a Corolla, $16,415 for a Civic, $16,095 for a Mazda3, $16,170 for a Sentra, $17,040 for a Focus, $178,485 for a Jetta, $14,865 for an Elantra, and $14,390 for a Forte (including typical destination fees).

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Coda Automotive may not be claiming to have paid back the US government, but this video [via greencarreports] sure is one of the more misleading spots we’ve seen in a while. The term “all-American innovation” probably does great with focus groups, but it’s hardly an accurate description for a rolling-chassis Chinese sedan with some Chinese-made (unless the DOE gives Coda a loan for US cell manufacturing) lithium-ion cells bunged into it somewhere in California. Likewise, the fact that internal combustion engines operate at relatively low efficiency is fascinating, but it’s hardly relevant to potential customers. Especially considering this Coda EV is likely to cost about $45k before tax breaks. At that price point, a Chinese-market sedan should run at 110 percent efficiency, and be powered by melted-down AMG tires. And its makers should still have the decency to admit that, like so much in life, we’re entirely dependent on the Chinese to actually build the damn thing.

A lot has changed since 1978… and not all of it for the better. One undeniable trend: young folks just aren’t that into the cars anymore. Automotive News [sub] takes on this, the greatest challenge facing automotive marketers in a lengthy piece that asks

Is digital revolution driving decline in U.S. car culture?

The implicit answer: yes. As a member of the generation that will doubtless be blamed for the decline of the auto industry for decades to come, I think the root causes of Millennial carlessness are a bit more complicated than mere progress in digital technology. And though the causes may be complex, the reality couldn’t be more clear. Want to know how this dynamic plays out? Take a look at Japan. If the car industry doesn’t find a way to re-associate its products with more positive connotations than debt, traffic, commuting and pollution, it’s going to face an increasingly tough slog as the Millennial generation comes into its own.

As yesterday’s sales graph proves, this is not the greatest time to be re-launching an entry-luxury brand. With Kias and Fords offering the kind of tech gadgets once found only in the upper echelons of true luxury brands, and with well-regarded import luxury marques moving into the front-drive, mass-market, the so-called “premium” brands are finding themselves caught in the middle and losing sales. But in spite of these damning dynamics, GM is moving to overhaul its entry-luxe Buick brand at top speed. Why? Because it can…

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As the Dodge brand redefines itself with new lifestyle packages, new ads, events and sponsorships, and a slew of upcoming new products, it’s using its brand name to send a clear message that its “forever young” attitude and performance-driven history will drive the brand into the future.

The new Dodge brand logo features the DODGE name with a pair of red racing stripes relative to the “E,” suggesting speed and agility. Dodge designers sketched the new logo after Dodge and Ram Truck were clearly defined as separate brands with their own identities and consumers, each needing a logo that represents the character of the brand.

The twin red graphic stripes will be used in communications, advertising, internet and merchandising. They will not appear on Dodge products or on the dealership signage.

From a recent Chrysler Group press release. Confused? Yeah, us too.

Bloomberg is reporting that anonymous sources tell them

[Ford’s] top executives are preparing a proposal to kill Mercury to be presented to directors in July

The rumor has yet to be confirmed, but the decision is clearly a sound one. We’ve written at length about Ford’s premium-brand problems, and Mercury is easily one of the weakest brands on the market. With Lincoln said to be going global, it makes plenty of sense to kill off Mercury. In fact, axing the purposeless entry-luxe brand might just be one of the single smartest moves Ford could make right now.

UPDATE via Twitter’s @davidshephardson(also of the Detroit News): “Mulally says he didn’t read Bloomberg report on Mercury. Says Ford has ‘nothing new to announce.'”

Albert Einstein may have once said that:

Anyone who has never made a mistake has never tried anything new

But the Hebrew University of Jerusalem, which owns the rights to Einstein’s likeness, had this to say about this GMC ad which appeared in People Magazine’s “Sexiest Man Alive” issue:

The tattooed, shirtless image of Dr. Einstein with his underpants on display is not consummate with and causes injury to (the university’s) carefully guarded rights in the image and likeness of the famous scientist, political activist, and humanitarian

According to the Detroit News, the University is suing GM “more than $75,000” for the Leo Burnett-produced ad. GM spokesfolks insist the company purchased the right to use the Einstein image from a “reputable firm.”

So, the voiceover is wrong. Chrysler Group and its brands are too badly in need of credibility to be narrating an ad this good with a voice that sounds so similar to this guy’s. Otherwise, this spot is nearly flawless. Especially in comparison to other recent Wieden + Kennedy Dodge efforts like this one. But you all have longer memories than I… so when was the last time you saw a Dodge ad that hit the nail so directly on the head?

Automotive News [sub] dug through Infiniti’s patent filings, and came up with an unexpected find: a filing that reserves the terms “Infiniti Performance Line” and “IPL” to market

the brand’s use of “high-performance motor vehicle parts,” including turbochargers and superchargers for engines, cat-back exhaust and muffler systems, shifter knobs, suspension parts, brakes, sports seats and off-road headlights.

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With Susan Doherty removed to a safe distance from Chevy’s marketing efforts, the “Excellence for Everyone” tagline that emerged during her brief tenure as VP for Marketing is already on its way out. Chevy spokesman Klaus-Peter Martin tells Automotive News [sub]

It’s not something you’re going to see for much longer

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Nearly a month after ditching Chevy’s longtime ad agency Campbell-Ewald in favor of Publicis, GM management is said to be eying another change in strategy for its most important brand, as new Marketing boss Joel Ewanick begins making his presence felt. Sources tell AdAge that Ewanick is considering moving creative responsibilities for the $600m Chevy account from Publicis to Omnicom Group’s Goodby, Silverstein & Partners, although GM has not yet confirmed any such move. Anonymous GM execs tell AdAge:

They told him he could have virtual carte blanche in decision-making, and he’s already exercising his power to do so. He’s surrounding himself with people he feels most comfortable with and trusts… He didn’t pick Publicis, he inherited it.

Focusing on Chevy, and not being afraid to shake things up are two very encouraging signs from Ewanick. Having inherited former Marketing boss Susan Docherty’s gestating campaign centered around the line “Excellence for Everyone” and some intensely unmemorable Publicis ads, Ewanick clearly needs to bring the thunder, and according to AdAge, all of GM’s agencies are in a tizzy over the shake-up.
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About a half-hour after TTAC’s 15 Years of Compact Car Sales graph went up today, the normally enthusiast-oriented car blog Jalopnik gave the internet its own take on compact-car segment analysis with a post titled The Ford Fiesta Will Dominate The Small Car Segment. Some might question how this is supposed to jive with Jalopnik’s alleged commitment to “awesomeness,” but our concerns are far more prosaic. Examples: the absence of the Fiesta’s actual competitors like the Honda Fit, Nissan Versa and Toyota Yaris, and the absence of interior volume comparisons which would expose this “comparison” for the fraud it is. And that’s just for starters…

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As non-executive vice-chairman of the Swiss bank UBS, Chrysler CEO Sergio Marchionne has deep connections with the European banking community. Now, under threat of losing its primary lender Ally Financial to GM’s dreams of a return to in-house, subprime lending, Marchionne has leveraged that experience into a non-prime lending deal with a US division of Spain’s Banco Santander. Automotive News [sub] reports that Santander and Chrysler have reached a deal to provide loans to Chrysler customers with sub-650 credit scores that ChryCo reckons could result in an additional 2,000 sales each month.
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Sadly, my internet came crashing around my ears just as GM’s Q1 results conference call was getting interesting. Typical Monday. I’ll rock myself to sleep tonight with a recording of the call and report back tomorrow, but at this point the big news is plainly visible on this single slide. Yes, GM finally got control of its incentives and wrestled them below the industry average… for a month. That month (March) also just happened to be the worst month this year for GM market-share wise. The next month (April), the incentives went back over the industry average, and market share increased once again. The lesson seems obvious: GM won’t gain market share on promises of high-quality cars and taxpayer payback alone.

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Automotive News [sub] highlights a new trend in the car sales game: the luxury dealership destination. This picture was taken at Lexus of North Miami, which its owner describes thusly:

The new state-of-the-art dealership not only provides the ultimate in automotive service but also provides unrivaled personalized service, catering to all of your needs with luxury amenities via the Club Lexus Lifestyle and Fitness Center. The innovative, resort-like center is designed to accommodate and enhance your everyday lifestyle by allowing access to the finest facilities for consultation and first class amenities.