By on September 3, 2017

Subaru Dog Ad

Automotive advertising has always been an amalgamation of information and hype. Carmakers use commercials to inform the public of what makes their model different and new, while simultaneously promising an intangible goodness. Mid-century ads were less specific, reassuring prospective customers of a nondescript better way of life, but modern marketing has become much more focused. If ads are to be believed, buying a car today means purchasing more than just the hardware its comprised of — you’re buying an identity.

I’m reminded of a collection of car commercials from the 1960s that essentially vowed to nerds that, if they bought a specific car, they would be pursued endlessly by attractive women. It was a bold and extremely unsubtle way to kick off the new trend.

We’ve come a long way evolved slightly since then, but the concept of identity-focused advertising is more popular than ever. In fact, Subaru attributes a large portion of its own success to marketing that closely associates the brand with good values, family, lovable mutts, and the great outdoorsRead More >

By on August 11, 2017

Jeep Cherokee

Not to sound overly patriotic or offend my Canadian coworkers, but United States is responsible for giving the world so much greatness that it’s difficult not to get a little misty eyed when I stop to think about it.

America’s long history of inventiveness has blessed the globe with modern marvels like sunglasses, chewing gum, kitty litter, the atomic bomb and, of course, sport utility vehicles. While the atomic bomb doesn’t get much broad praise these days, the rest of the aforementioned items are exceptionally popular outside the nation’s borders — especially SUVs and their bastard offspring, the crossover.

In fact, they’ve been such a runaway success that SUVs accounted for over 25 percent of all European passenger vehicle sales in 2016. That’s up from 21 percent in 2015 and there’s no sign of it stopping anytime soon. Sport utility vehicles are expected to surpass a third of the region’s new vehicle market by 2020. Assumedly, America’s own SUV sales will be hovering around 100 percent by then — maybe more. But let’s not discount how crossover-crazy the rest of the globe has become or forget to remind ourselves that most of the world’s best-selling SUVs aren’t exactly “Made in America.”  Read More >

By on July 11, 2017

2018 Honda Odyssey Silver Driver Front quarter

Who knew the well-equipped 2018 Honda Odyssey was so… titillating? An unsuspecting journalist over at Forbes saw a few more — let’s call them entertainment options — than she expected while browsing through the video selection offered via her Odyssey tester’s rear media screen.

At that point, things became a little hot under the collar at Honda.

Read More >

By on July 9, 2017

Toyota Camry Assembly Factory Georgetown

Jim Lentz, CEO of Toyota Motor North America, is going to great lengths to tell the world his company is only going to get better in the years to come — proving to his employer that he knows exactly what his job entails. In addition to explaining how the brand’s new modular architecture will give assembly lines much-needed flexibility, this week also had him announcing Toyota won’t dawdle anymore on getting product into consumer hands.

“I think we’re going to be quicker to market,” Lentz announced to the press at Toyota’s brand new $1 billion Texas headquarters on Thursday. “Before if you were part of the sales organization, you had your own legal team [and] HR team, so there was a lot of redundancy across the organization … we were able to streamline that and, with a lot of the headcount changes, we were able to hire more engineers to our operation in Ann Arbor, as we continue to develop vehicles here in North America, for North America.”   Read More >

By on June 8, 2017

2017 Subaru Impreza 5-door Sport - Image: SubaruSubaru of America set an all-time annual sales record in 2009.

You remember 2009, though you’d likely prefer to forget it.

The auto industry all but collapsed as the global economy went into meltdown. After total U.S. new vehicle sales volume fell to a 25-year low in 2008, sales tumbled a further 21 percent in 2009, the worst year for auto sales since 1982.

And yet Subaru of America set a sales record in 2009.

2017 is no 2009. But after surging to record levels in 2016, the U.S. auto industry’s sales volume is once again shrinking, albeit modestly. But Subaru of America president Tom Doll told Automotive News, “We certainly think we’re going to have our ninth consecutive year of record sales.”

No doubt. Read More >

By on May 12, 2017

Confident car dealer giving a handshake car showroom on the background, Image: stockasso/bigstock.com

I spent 33 years in the automobile business, the equivalent of 96 human years. Having worked for car dealerships, manufacturers, an auction house, and an auto finance company, I’m convinced there is no other industry that attracts such a diverse cast of characters. Many of them defied stereotypes: I met car sales people who were honest, ethical and hardworking. I also worked with senior executives of well-respected automobile companies who were total sleazebags.

Throughout the years, I kept meeting the same set of six people over and over. These are their stories. Their names have been changed to protect the guilty. Read More >

By on May 3, 2017

Ford EcoSport guardians of the galaxy ad

Advertising isn’t designed to help you make an informed purchasing decision. While some auto ads occasionally cherry pick information to highlight a vehicle’s strengths, you see this tactic employed less and less lately. Pathos-driving advertising sometimes results in innocuous gems, like Subaru’s “Dog Approved” campaign. However, there has been an obnoxious trend where cars, which are presumably for adults, are being marketed as if they are children’s toys.

One of the worst offenders of this phenomenon was Nissan. It tied the Rogue to the Star Wars franchise as much as possible — issuing television spots set in a galaxy far, far away, a special movie edition variant of the vehicle, crossover swag, and even a car modeled to look like an X-wing to display at trade events. It potentially worked, too — Rogue sales skyrocketed.

Taking notice, Ford has similarly decided to link the upcoming EcoSport to the new Guardians of the Galaxy film. The Blue Oval is taking that concept a step further, however. Its downright egregious marketing campaign feels like it belongs in the ad space reserved for Saturday morning cartoons, circa 1992, right next to a sugary breakfast cereal with a cartoon mascot. Ford has sweepstakes, comic books and a film cameo planned. Read More >

By on April 10, 2017

police-responder-hybrid-sedan-6

Being first is a tricky business. As we all know, Columbus was the first to discover the Americas but we also all know that is an utter falsehood. In addition to people already living on the continent, there is plenty of evidence to suggest that Viking and Chinese sailors made the trip by boat long before Spain was even considered a country. However, Columbus is the smug-looking gentleman getting most of the exploratory credit in Western textbooks.

It’s a similar story with Ford’s new Police Responder Hybrid Sedan. The automaker is calling it the “first pursuit-rated hybrid police car,” but that’s a little like saying you are the best athlete in a sport you also invented.  Read More >

By on April 6, 2017

Peugeot 405

France’s PSA Group appears to be getting serious about its re-entry into the U.S. market, naming former Nissan executive Larry Dominique as the head of its North American endeavors. That means the possibility of seeing new Peugeots or Citroëns on the road is no longer just a pipe dream.

However, PSA hasn’t yet made up its mind on which brands will debut in America. The Peugeot lineup makes the most sense, as it’s the French brand most American’s actually still remember, but Citroen has more eccentric models that could appeal to a specific subset of customers. The latter also has the DS sub-brand that might appeal to upscale buyers, even if it were to come in on its own.

The final decision won’t come until PSA has spent time and money performing loads of consumer research and logistical analysis.  Read More >

By on March 20, 2017

Macan Porsche

While still exclusive, Porsche is gradually becoming a more populous and profitable brand. It delivered 238,000 vehicles last year and posted an operating profit of $4.1 billion — a 14-percent increase over 2015’s accounting.

A little back-of-the-envelope math places the per-car profit at roughly $17,250. As a premium automaker, you’d expect it to rake it in on every vehicle sold. However, Porsche doesn’t limit production to the same extent that Ferrari does in order to maintain artificially high prices. And it absolutely decimates other premium brands that offer exclusivity at a higher volume. BMW and Mercedes-Benz both hover at around $5,000 in profit per car.

Porsche seems to have struck an ideal balance. While its per-car profit was actually higher a few years ago — $23,000 in 2013 — it wasn’t making quite as much money overall. At the time, Bentley pulled in roughly 21 grand per unit and sold fewer vehicles overall. Since then, Porsche has shifted some of its focus downmarket, introduced the Macan, expanded its volume, increased income, and still managed to maintain a sweet profit margin on every vehicle sold.

How did it manage that? Basically, the same way Ford wrangles its F-150.

Read More >

By on March 20, 2017

2017 BMW 4 Series Convertible – Image: BMW

Choice is good for car buyers. But in the never-ending quest to produce incremental volume gains, the planet’s largest premium auto brands agree that certain niches are quickly becoming untenable.

Known for questioning in 2014 whether the global sports car market would ever recover from its post-recession collapse, BMW sales boss Ian Robertson told Car And Driver earlier this month that “some body styles will be removed in the future.”

Meanwhile, the head of Mercedes-Benz Dieter Zetsche said at the Geneva auto show that the lack of Chinese uptake for specialty cars “makes the business case for these vehicles less easy.”

Yet long before a model cull returns us to the days of tidy luxury lineups — 3 Series, 5 Series, 7 Series, and 8 Series as the 1990s intended! — premium German marques will first introduce a slew of new models. And the body styles destined for removal? Likely not the silly four-door coupes and impractical SUVs you love to hate. Read More >

By on March 17, 2017

2017 Acura MDX Sport Hybrid - Image: Acura

At American Honda’s upmarket division, the Acura MDX is the lifeblood; the premium crossover that keeps Acura’s trains running on time.

In 8 of the last 10 years — including each of the last 7 — the Acura MDX has been Acura’s best-selling model. Fully one-third of Acura’s U.S. volume over the last decade has been generated by the MDX.

Honda knows best of all just how important the MDX has been to Acura’s fortunes, having watched as the brand’s passenger car volume was essentially chopped in half over the last decade. Honda is removing the interference caused by the Pilot, Odyssey, and Ridgeline at the MDX’s Alabama plant by moving production of the big Acura to Ohio.

And more importantly for consumers, the first hybridized MDX — the 2017 Acura MDX Sport Hybrid — is launching now with a pricing scheme that evidently makes the hybrid the best MDX of all. Read More >

By on February 27, 2017

2017 Chevy Silverado 1500 W/T

The pickup is as much of a stereotypical American icon as gun ownership and throwing things away. Last year was a particularly good one for trucks, with Ford F-Series sales reaching pre-recession volume and a 10-year high and Ram recording a seventh year of growth. However, with sales peaking for the other domestic labels, General Motors’ share of the market shrunk.

What’s the solution to whatever consumers find lacking with GM’s product? A price war, of course. While Ford Motor Company and Fiat Chrysler Automobiles are scaling back, GM upped incentives from last February by 56 percent for the Chevrolet Silverado and 82 percent for the GMC Sierra. With the pickup segment being so important in North America, nobody wants to lose ground. Aggressive discounts are often the only way to overwhelm brand loyalty, but the practice is also guaranteed to eat into profits while annoying the competition. Read More >

By on February 24, 2017

2017 Jeep Compass

We knew that Jeep’s redesigned small crossover was going to be sized up, priced up, and niced up in order to avoid cannibalizing the Renegade. What we didn’t know was that Jeep would dump it into the KL Cherokee’s lap like a scalding cup of coffee. At $22,090, the base 2017 Compass is only a stone’s throw away from the larger model’s pre-destination price of $23,695 MSRP.

Worse still is that Fiat Chrysler’s inability to update or enhance the Jeep Cherokee in any meaningful way has helped sales implode in recent months. The KL was Jeep’s top selling model in 2015, with 220,260 units sold in the United States, but it took a sales hit of almost 30,000 vehicles the following year and saw a noticeably weaker beginning for 2017. Read More >

By on February 23, 2017

Dodge Challenger SRT Demon

Dodge has been parsing out minor details on the Demon, slowly shaping its identity, for what seems like decades, when it has actually only been about a month. In today’s publicity sprig, Fiat Chrysler indicated that — unlike the Hellcat — the Demon will be strip-focused with a suspension setup specifically designed exclusively for straight-ahead speed.

With Dodge claiming that the Hellcat is the “ultimate do everything muscle car” with an intention  “to strike that perfect balance between drag strip brute force, road course competence and street car civility,” I am left wondering just how streetable the Demon could possibly be. Like most purpose-built cars, dragsters are wonderful at doing exactly one thing and absolutely terrible at everything else. For Dodge’s new hype machine, the added forward momentum might come at the expense of hanging a right.  Read More >

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