Automotive marketing – marketing in general, really – fascinates me. I have a business degree with a focus on marketing and spent many years studying the commercial machine of capitalism, along with the psychology behind getting you to buy. The whole thing is extremely thought-provoking (such as Mike Rowe) and often more than a little spooky. Such as a penis with warts … (Read More…)

Bob Lutz may have left GM, but TTAC’s not through with the man of Maximum just yet. One quote in particular, from an “exit interview” with gm-volt.com, exemplifies the kind of candor that seems likely to disappear from GM along with Lutz. Possibly for good reasons. Well, good PR reasons, anyway. After all, with Lutz unable to deny that GM will lose money and/or battle sticker shock with its forthcoming Volt EREV, he’s the kind of guy who will tell the unspeakable truth instead of playing coy like a good PR man. To wit:

How do we get the cost down without in any way diminishing the value of the car in the eyes of the customer? By just doing some more elegant engineering than we did the first time around where we inadvertently did some belt and suspenders stuff because we wanted to move fast. Now as we look back at the car we say ‘gee I wish we’d done his different,’ …’ gee I wish we’d done that different’ because this is a very expensive solution and we could have done that for a lot less money.

That faint sound you just heard was Ed Whitacre expelling fillet of rattlesnake out his nose after reading that little nugget. Meanwhile, you’ve heard it from the horse’s mouth: the Mk.1 Volt will be expensive, unprofitable, and unpolished. Or, to use a PR term, “belt and suspenders.”

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Buick has confirmed long-standing rumors that it will offer a compact (Delta II) sedan (likely a rebadge of the Opel Astra) and a subcompact (Gamma II) MPV “in the near future,” reports the Detroit News.With the Regal launching this year, these two vehicles will create a Buick lineup with twice the options of its current three-car lineup. That current lineup competes in only two vehicle segments, whereas by 2013, Buick expects to compete in 47 percent of market segments with a lineup of vehicles that will all be newer than the Regal. In other words, if you think Buick’s problem is product, GM agrees with you… and it’s revamping the brand’s entire lineup over the next three years.

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Lithium-ion batteries aren’t the only automotive cleantech that appears to be getting cheaper. Toyota’s head of advanced autos, Yoshihiko Masuda, tells Bloomberg that the Japanese automaker has cut the cost of hydrogen fuel cell vehicles (FCVs) by 90 percent in the last five years or so. Mid-decade, Toyota’s per-car estimates for FCVs ran near a million dollars per car. With costs now closer to the $100k mark, Toyota says it plans to cut that number in half by 2015. If they can make that happen, Masuda says, a $50k hydrogen FCV will be on like Donkey Kong.

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Maybe I’m showing my age here, but my definition of the term “younger” clearly doesn’t match that of The LA Times (though the age of the driver pictured is not given). And it’s not just the photo editor either… (Read More…)

To say that Chrysler’s 25 percent year-over-year sales increase last month came as a surprise would be pushing the boundaries of overstatement. Chrysler’s sales and market share have been in decline for a long time, but over the past several years, the tailspin seemed to have become terminal. So, how did the Pentastar (barely) make its 95k minimum volume level and increase sales by 25 percent over April 2009? Fleet sales, for one thing: according to The Freep, TrueCar.com estimates that a full 40 percent of Chrysler’s April sales went to fleet customers.No wonder made a big deal about publicly finding Jesus on the fleet sales issue… at the end of the month (to say nothing of the conspicuous absence of retail sales numbers in its April report and massive increase in Sebring sales). And the bad news doesn’t end there. Not only did Chrysler top all automakers in per-vehicle incentives last month according to Edmunds’ monthly True Cost Of Incentives index with $3,374 on the average Mopar’s hood, they’re actually increasing incentives even further.

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Ousted GM marketing boss Susan Docherty came into her own at GM as General Manager of the HUMMER brand. How well did her stewardship of that brand work out? We’ll let this picture do its thousand-words thing on that question [HT: AsianMartin’s Twitter feed, via SpeedSportLife].

Since GM Chairman/CEO Ed Whitacre began firing holdover executives, starting with former CEO Fritz Henderson, TTAC has argued that VP for Marketing Susan Docherty is a prime example of a GM lifer who “owes her career to GM’s timid and inept culture.” Having already lost the Sales VP position to GM’s rising star Mark Reuss, “leaving Docherty time to focus on the marketing side and polish up her resumé,” we figured she was on her way out. And sure enough, several embarrassments later, the announcement came today. What we didn’t expect: that former Hyundai “Marketer of the year” Joel Ewanick would replace her.

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The Competitive Enterprise Institute, a public interest group dedicated to free enterprise and limited government, has filed a complaint with the Federal Trade Commission, alleging that a recent advertisement from GM claiming to have “paid back government loans in full” is deceptive [full complaint in PDF here]. You might be able to guess why the CEI finds the GM ad so misleading, but if not, their explanation is after the jump.
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Imagine you’re an automaker which enjoys an unprecedented drivetrain technology advantage over all other manufacturers. Imagine you build a brand around that drivetrain that becomes a cultural touchstone, a symbol of your firm’s technical prowess and commitment to the environment. What do you do next? The obvious answer is to build a luxury version to help make the extra profits needed to pay for the drivetrain’s development, right? Well, Toyota did just that, piggybacking the Lexus HS250h on its strong Lexus brand and Prius technology. The only problem? It’s not working.
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The ironic rap video… yeah, there’s something the potential minivan driver will find hip and edgy.

Personally, the lack of a blue “Mark of Excellence” was the last thing I noticed about GM’s latest advertisement. Over at GMInsidenews.com, however, they picked up on it a little quicker. GM’s trademark “chiclet” has already been removed from all of its future vehicles, and Cadillac has publicly announced that it’s distancing itself from the GM name. In fact, post-bankruptcy, everyone at GM has said that the “GM brand” should take a backseat to Chevrolet, Buick, Cadillac and GMC. But will The General go as far as get rid of its little blue box altogether?

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You can already buy a BMW 3-Series in sedan, coupe, station wagon and X3 “cute-ute” bodystyles, and for some automakers that might be enough. For niche-crazed BMW though, it’s just the beginning. A 3-Series GT is planned in the mold of the 5-Series GT, as a midway-point between the coupe, sedan and station wagon versions. You know, in case you can’t decide which you want. “This has never existed!” screamed Autobild… back in 2008. Of course, now it does exist in the form of the 5-series GT, which could actually end up replacing the 5-series wagon in the US market. And as the march of the niche vehicles rolls onward, there’s one more segment that the 3-series architecture still hasn’t capitalized on: the jacked-up midway point between coupe and SUV. That’s right babies, the X4.

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Chrysler won’t officially confirm it, but the Detroit Free Press cites Chrysler dealers who say that the tarnished-to-death Sebring nameplate will be replaced with the name “Nassau,” when Chrysler brings out a Fiat-facelifted version of the midsized sedan later this year. The Nassau name first entered Mopar history with the 1955 Windsor Nassau, a a two-door coupe advertised as having “the 100 million dollar look.” After a mere two model years as the Windsor Coupe nameplate, the Nassau name lay dormant for decades before returning as a 2000 styling buck for the Chrysler 300, and again as a midsized sedan/wagon concept in 2007.
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Fleet sales were up 47 percent in the first quarter of this year, driving sales at a number of automakers. Ford, in particular, is targeting fleet sales unapologetically by touting a recovery in resale values for the Blue Oval Brand. Ford’s Mark Fields tells the Freep:

We love fleets at Ford…Ford remains focused on our disciplined approach to daily rental, making sure we help keep growing residual values

At Chrysler, which suffers from some of the lowest resale values in the business thanks in part to a longtime addiction to fleet sales, the response seems a bit more… conflicted.

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