The Truth About Cars » Sales and Marketing

Editorial: The Carless Kids

Edward Niedermeyer — Sun, 25 Oct 2009 21:27:49 +0000

We’ve seen the signs coming for some time: rumors from Japan, declining car sales at home, advertisments selling cars as “the ultimate mobile device.” And the picture that’s beginning to reveal itself is a challenging one for fans of four-wheeled transport. Young people, once a deep well of enthusiasm and sales growth for the car [...]

The Carless Generation

Jim Sutherland — Sat, 24 Oct 2009 21:31:45 +0000

There is always going to be a generation gap. The term “generation gap” was coined in the 60s when it became evident that Baby Boomers had developed a whole new set of rules for themselves that put a significant chasm between them and their parents in terms of interests and values. Generation gaps will always [...]

The Truth about the TATA Nano

Sajeev Mehta — Sun, 27 Sep 2009 16:05:01 +0000

Why is a soon-to-be success story gathering dust at TATA dealers across India? Much like the initial growing pains of the Ford Model T, the $2000 Nano currently lies on waiting lists. Given the lopsided supply/demand and construction conflagrations with the government, I reckon enterprising Indians are flipping the Nanos living in parking lot limbo [...]

Editorial: Honda Crosstour: You Can’t Fix Ugly. Or Can You?

Robert Farago — Mon, 07 Sep 2009 01:32:10 +0000

Beauty is in the eye of the beholder. Beholders have beheld the new Honda Crosstour and found it not beautiful. Ugly, in fact. Ten years ago, this condem-nation wouldn't have been a problem for the vehicle's manufacturer. At worst, a few aesthetically-offended members of the automotive press would have nibbled the hand that feeds, gently alluding to the vehicle's "challenging" exterior. Otherwise, the illusion that the Honda Crosstour isn't a Gorgon-on-wheels would have been maintained---at least until "disappointing" sales proved the point. Those days are gone. These days, Honda's decision to green light an ugly automobile has unleashed a major PR debacle. Welcome to the Internet, fellas. I did warn you.

Editorial: How GM Tried to Win Me Over, Part Two

Darwin Hatheway — Sat, 15 Aug 2009 22:04:06 +0000

Like many American car buyers, I place reliability near the top of my "must have" list. Over on GM's FastLane blog, I told GM they'd conquer [some] Toyota and Honda customers when the American automaker's ten-year-old cars offered the same service as ten-year-old Toyotas and Hondas. Truth be told, New GM may not HAVE ten years. So it's no surprise that they tried to wow me with tail fins and technology. When the speeches finally ended in the Proving Ground auditorium, I was invited to sample New GM in the "now." Our PR handlers gave us a quick safety talk (don’t do anything stupid, obey the traffic wardens) and turned us loose.

eBay’s “Auction Insurance Agency” to the Rescue

Nick Naylor — Sat, 01 Aug 2009 16:42:05 +0000

Like tens of millions of American consumers, I shop for my cars online. I do due diligence; working hard to filter-out fraud and minimize the unavoidable unpredictability inherent to such transactions. My methodology is far from perfect---as my recent experience will attest. In fact, my tale of woe provides a real life example of how the biggest online seller---eBay---responds to fraudulent transactions.

Editorial: The Truth About J.D. Power’s Vehicle Launch Index (VLI)

Michael Karesh — Fri, 24 Jul 2009 11:32:49 +0000

Earlier this week, J.D. Power gave the automotive world a new score to ponder: the Vehicle Launch Index (VLI). This addition to the survey giant's quality canon aims to measure how well manufacturers launch new or redesigned models. It's a worthy endeavor; a new model’s success in its first few months often predicts its long-term sales and profitability. But what do these new J.D. Power scores tell us? In the immortal words of Jeff Spicoli: I don’t know.

Editorial: The Truth About Car Awards

Edward Niedermeyer — Wed, 01 Jul 2009 15:43:19 +0000

In the wake of JD Powers' Initial Quality Survey, several other lesser-known awards are giving OEMs a whole new reason to cobble together a press release touting their top place, improvement or mere presence in one of these meaningless satisfaction surveys. And why not? It's summer, and things (sales, in specific) are slow. And the award fandango is win-win. The awards allow OEMs to ridiculously inflate the importance of their results, while publicizing the research firms that created the awards. Case in point, the Dodge Ram.

Editorial: The Truth About Cash for Clunkers

Ken Elias — Thu, 18 Jun 2009 12:34:45 +0000

The so-called “Cash for Clunkers” legislation demonstrates everything that’s wrong with a political process playing in the market arena. It’s legislation that will do little to improve car sales. But it will drive traffic to dealers – mostly credit bandits scurrying around trying to buy new cars they can’t really afford.

Automotive Web Marketing Sucks, in General

Martin Schwoerer — Mon, 25 May 2009 15:33:55 +0000

The Web as we know it is a teenager, but car makers seem to think it's a baby: cute, with much potential, but inscrutable and insomnia-inducing. One could think of numerous, obvious new applications for automotive marketing, but we don't see them in practice. Click on a manufacturer's site to get an instant, confirmed test drive appointment for a car of your ideal configuration? Nope. Can you publicize your satisfaction or disatisfaction with a dealer on a maker's site (similar to what yelp.com is enabling for all kinds of services)? No dice. Indeed, most commercial car stuff on the web is conventional, and boring. But recently I've heard of some Web-based brand-building that is supposed to be better. Here are three examples from the UK.

Editorial: And Now for a Word from Our Sponsor . . .

Frank Williams — Thu, 21 May 2009 14:25:10 +0000

How many Mercedes owners change their own oil to save a few bucks? The latest "Meet the Volkswagens" TV ad doesn't just insult Benz owners--- and everyone else's---intelligence. It's also racially insensitive. By depicting a middle class white guy with his face blackened with oil, it raises the specter of 19th century minstrel shows. OK, that's a stretch. But so is VW's supposition that reminding customers of their over-familiarity with their local dealer's service department is a good thing. And what does a Microbus sliding out of a nearby garage have to do with anything, Amigo? Wait . . . cue-up the Routan commercial . . .

Editorial: The Truth About Turtle Wax

Sajeev Mehta — Fri, 08 May 2009 17:20:48 +0000

All's not well with Turtle Wax. To wit: in a recent Piston Slap article, numerous commentators made less-than-flattering remarks about the brand's products and image, indicating that Turtle Wax is suffering a dramatic loss of brand equity. It's a big problem at a bad time. Last October, 3M acquired Meguiar’s. Barry Meguiar is a tireless and charismatic promoter who's deeply in tune with care care gestalt. With the normally staid Triple M's enormous resources behind him, the Divine Mr. M could put a serious hurt on Tommy the Turtle. It's time to put the terrapin's marketing under the microscope.

Editorial: Britain Makes Scrappage Schemes Euro-nanimous

Edward Niedermeyer — Thu, 23 Apr 2009 18:21:45 +0000

Britain's new budget, recently presented by Minister of The Exchequer Alistair Darling, contains a vehicle scrappage incentive that makes Old Blighty the final major European economy to jump on the alleged "green stimulus" bandwagon. 13 other European nations, including France, Germany, Italy, Spain and Poland have introduced similar measures, which provide government incentives to new car buyers who scrap an older vehicle. But will Britain's new program (which offers up to $2,900 in incentives) have the same salutary effects on new car sales as France (March sales up 8 percent) and Germany's (March new registrations up 40 percent)? Closer to home, how will the solidified Euro-consensus on scrappage schemes affect the chances of a similar program in the US? Although the schemes have already been hailed as the saviour of European new car-sales, such plans don't always translate well across different markets. Under a critical lense, issues with the latest British plan indicate a number of problems in bringing such a program stateside.

Editorial: Volt Syndrome Strikes In China

Edward Niedermeyer — Mon, 20 Apr 2009 17:23:13 +0000

A few weeks of vacation from the blogosphere's non-stop news cycle can leave a blogger feeling a bit behind the times. Two weeks is an eternity in internet time, but stepping away from the barrage of news, spin, hype and hysteria is good for the sense of perspective. Especially if the down time is spent exploring countries on the local typical family vehicle, complete with two wheels, four speeds and about 100ccs of thundering power. Beyond the sheer novelty of seeing entire families commuting on a moped ("Daddy, Nguyen isn't staying on his side of the pillion seat"), travel in the developing world shows how insulated America is from the transportation realities of the rest of the world. If the $1,000 entry to the world of moped ownership is a major (if attainable) hurdle for workaday Vietnamese, even sub-$10k vehicles face what a GM sales release might call "a challenging sales environment." Try to explain the "green premium" for hybrids and plug-in vehicles to an auto-aspirational third-worlder, and watch as the idea of paying more for less room and power draws only puzzled bemusement. Hair shirts, it appears, are strictly a fad for the western and wealthy. Case in point: the world's first plug-in hybrid, the Chinese BYD F3DM.

Editorial: VeeDub Rules Ze Vorld?

Bertel Schmitt — Sat, 18 Apr 2009 14:28:18 +0000

In November 2007, VeeDub head honcho Martin Winterkorn announced his version of the Schlieffen Plan. Dubbed "Strategie 2018," Winterkorn plotted the overthrow of GM and Toyota from the top of the worldwide sales charts. Winterkorn called for VW to rule the world in sales, profits, innovation and customer satisfaction by 2018. When the plan was announced, the MSM feted it, insiders (this reporter included) rolled their eyes and denounced the announcement as the usual hubris of an incoming CEO, a suit who'd be busy collecting his pension by the time 2018 rolled around. In any case, by 2018, the Generalstabsplan would long be forgotten and superseded by at least five other grand strategies.

Editorial: Taurus Taurus Taurus! Or . . . SHO Me the Money!

Sajeev Mehta — Fri, 27 Mar 2009 15:23:12 +0000

Our president recently hit the late-night talk show scene, giving all a taste of the “Washington Bubble.” He’s not alone: Judging by the comments around the Interweb, every red-blooded American automotive journalist totally hearts the 2010 Taurus SHO. But does the journos’ wish for a reincarnated SHO jibe with the harsh reality of Ford’s market demographics? Or to paraphrase Norm MacDonald, “while the SHO may not prove anything, it certainly does nothing to disprove the theory that Volvo-based Fords are a waste of money." Yeah, it takes brass balls to knock a car you’ve touched, but haven’t driven. But the circumstances around the all-new Taurus give me pause . . .

Editorial: Has Aston Martin Shot Itself in the Foot?

Kristjan Ambroz — Thu, 05 Mar 2009 19:27:36 +0000

Was Aston Martin's expansion into lower reaches in the luxury automotive food chain a good idea? The development of the AM V8 Vantage was at best a dangerous move. Why risk devaluing a storied brand? Looking at top line figures, it seems as if Aston's "entry level" model is a solid success. Aston Martin's sales have increased to levels the company hasn't experienced since... ever. Thanks in part to the AM V8, Aston Martin turned a profit in the two years prior to its removal from the FoMoCo family. But looking one level deeper, the British automotive brand's move down market triggered several less than savory consequences. They may be returning to bespoke, fragrant leather coops, but the prodigal chickens are back, and they're bad.

Editorial: Car Dealers Suck

Marcus Topia — Wed, 25 Feb 2009 16:28:48 +0000

Over the years TTAC has witnessed many skirmishes in the war between those who support car dealers (mostly car salespeople) and those who oppose car dealers (the rest of the known sentient universe). It's time to put this particular argument to rest. Car dealers suck. Here's why: buyers never know what kind of deal they got.

Our Man Monty Reports from the Dallas Auto Show

William C Montgomery — Sat, 21 Feb 2009 22:19:05 +0000

Public relations people say the darndest things. Shills for the car companies that chose to speak to the press at the 2009 Dallas Auto Show were no exception. The folks at Chevy are still, "excited about the Camaro," a full three years after they excitedly announced the product. What impressive stamina they have. Buick intends to, "shatter the myth that Buick only builds sedans for old people." Good luck with that. Chrysler Corp. claims twenty-four new cars and trucks under development. "If tax payers can support us, we'll have some sweet products for you to test drive." Goodie, maybe I'll get to drive another redesigned Sebring. That'd be super sweet! But the biggest story coming from the show is what the PR refused to talk about.

TrueDelta Does Detroit

Michael Karesh — Mon, 12 Jan 2009 13:51:59 +0000

Well, the first day at the 2009 North American International Auto Show wasn't such a bust in the end. I began the day by attending the Intro and North American Car of the Year Awards. During the intro talk the Detroit show sought to demonstrate that it was still relevant by trotting out senior executives from the auto companies that didn't opt to skip this year's show. Among the execs from GM, Ford, Toyota, Honda, VW, and so forth was... Henrik Fisker. "Which one of these is not like the others..." started running through my head. Pretty good for a guy who reskinned SL's and 8's until he figured out it was better to ride the green gravy train. But that's the way Detroit rolls these days.

Honda Exec VP: Market May Never Recover to ‘07 Levels

Robert Farago — Mon, 12 Jan 2009 01:11:59 +0000

Not only does Richard Colliver admit that ’07’s sales were a bubble– a bubble that has permanently popped– but the executive vice president of Honda America says the bailout billions thrown at banks, aspiring banks and automakers hasn’t had any impact on the credit availability underpinning the U.S. new car market. Colliver also told Reuters that HoMoCo’s [...]

The Truth About Automotive Marketing

Jack Baruth — Sat, 03 Jan 2009 15:10:59 +0000

Maranello, we have a problem. Ferrari sales are down – way down – and waiting lists are evaporating. It’s not difficult to lay the blame for the sales meltdown on the “global credit crisis.” But the Scuderia must shoulder a good portion of the blame. Demand for the F430, particularly the Spider, has virtually disappeared following the arrival of the Ferrari California retractable hardtop. As it turns out, most F430 buyers didn’t care so much about the F430’s mid-engined balance, peerless on-track performance or Schumacher-tested suspension. They were buying the F430 because it was the cheapest Ferrari. And now that there is a cheaper one, they’re buying that instead. What we have here, as Strother Martin might say, is failure to understand the customer.

Editorial: Things Are Not Always What they SEMA

Edward Niedermeyer — Thu, 06 Nov 2008 10:48:38 +0000

Environmental exploitation is here to stay. Even the threat of industry collapse has failed to take the collagen out of American automaker's eco-friendly lip service. In this they are hardly alone. The litany of firms running advertisements professing their undying love for our Mother Earth, and building concept cars to show their unconsummated devotion, continues apace. 2008 is the first year that the SEMA has set aside a portion of its annual show for green trendiness. It's not a concept that sits well with the show's ethos of excess. But never underestimate the power of hypocrisy. And America's ability to co-opt controversy to unite our society under the banner of the almighty buck. Amen.

The Truth About Honda’s U.S. Success

Andrew Dederer — Tue, 19 Aug 2008 17:38:29 +0000

With Chrysler’s slide well underway, it’s only a matter of time before Honda becomes America’s fourth largest automaker (behind Toyota, GM and Ford). Honda will then hold the same rank stateside as it occupies in Japan-- behind Toyota, Nissan, and Suzuki. While Honda’s relative success in its home territory may surprise some American industry watchers, the automaker’s contrasting strategy in the Japanese Domestic Market (JDM) reveals a hidden “secret” to their U.S. success.

Fleet Enema Helps Sales Backlogs

Frank Williams — Fri, 15 Aug 2008 15:14:10 +0000

All car manufacturers would like you to believe they're turning their back on fleet sales. It simply doesn't pay to be known as a "pile 'em high and sell 'em cheap" automaker-- even if that's exactly what you are. Hence manufacturers' quarterly reports that highlight models whose rental sales have fallen. I repeat, rental. Lest we forget, companies and government agencies are also significant bulk buyers. So, BS aside, who leads the pack in the fleet sales that all carmakers say they don't rely upon to drive up their numbers and keep the factories humming?