The Truth About Cars » Sales and Marketing

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?

By the Numbers: July Sizzles, Sales Fizzle

Frank Williams — Wed, 06 Aug 2008 21:00:46 +0000

July's temperatures may have been hotter than Hell, but U.S. new car sales were in Hell. Rising gas prices have thrown the entire American auto industry into turmoil, flooding the market with used SUVs and pickups, cratering residual values and trapping millions of consumers in light truck limbo. At the same time, automakers can't ramp-up production quickly enough on those fuel-sipping models that are leaving the lots. Incentives aren't moving the metal, but NOT increasing them would be worse. The downturn is widespread. And despite what the automakers say, it's going to get worse. Soon. For now, here's the damage report.

The Dangers of Sciontology

Robert Farago — Mon, 04 Aug 2008 17:17:59 +0000

With great size comes great stupidity. General Motors' fall from grace-- from world's largest and most profitable company to bailout bait-- illustrates the point perfectly. And while it's about thirty years too early to suggest that GM's replacement will fall victim to the same size-related entropy, there are already hints that the profits powerhouse known as Toyota is capable of massive miscalculations. I speak here not of the full-size Tundra pickup, but of Scion, the brand that should have never made it out focus group.

The Truth About Leasing

Ken Elias — Tue, 29 Jul 2008 18:27:47 +0000

It comes as no surprise that GMAC and Chrysler Financial no longer offer leases in North America. Ford Motor Credit now joins the "no lease" club by pricing its leases sky high making them unaffordable. Why now? It's simple; the captive finance arms can't get the funding to support these transactions due to the deteriorating credit of the finance arms and their parent automakers.

Below the Radar No More: Hyundai/Kia Kick Ass

Paul Niedermeyer — Tue, 29 Jul 2008 16:31:29 +0000

In the aftermath of Black Hole Tuesday (June ’08 sales numbers), a big story got lost in the vortex. Yes, The Big 2.8 tanked, Toyota and Nissan took hits to the jaw and Honda was proclaimed the new Messiah. But June’s unsung winner puts Honda’s accomplishments to shame. In the midst of a violently contracting U.S. new car market, Hyundai-Kia (“HK”) kicked ass. And that butt-whooping is a direct threat to Detroit’s survival.

Forbidden Fruit

Paul Niedermeyer — Mon, 28 Jul 2008 15:56:56 +0000

In The Land of the Free our choice of automobile brands is highly limited. Well, relatively. Dozens of European import brands have long fled our shores, curtailing our automotive freedom of expression. What happened to all those storied marques, such as Alfa-Romeo and Peugeot? And what’s keeping American pistonheads from once again enjoying the forbidden fruit of Europe’s exotic brands?

As Go SUV Buyers, So Goeth Detroit

Andrew Dederer — Thu, 24 Jul 2008 14:51:46 +0000

Since this summer's sales slump, Detroit's stopped bitching about the so-called "perception gap." That's the alleged difference between consumers' idea of their vehicles' quality-- relative to their Asian rivals-- and "the reality." Suddenly, the concept is a lot less important than finding something, anything fuel-efficient to sell. Besides, there's a far more catastrophic "gap" in play, one that threatens Motown's very survival: the "gap" between what a SUV is worth new and its value come trade-in time.

The World Car is Not Enough

Paul Niedermeyer — Wed, 16 Jul 2008 14:16:45 +0000

Ford’s survival may depend on the U.S. success of the European-designed Focus and Fiesta. An embattled GM agrees with FoMoCo's "world car" strategy, talking up its "global platforms." Meanwhile, Honda and Toyota’s dominant Camcordias were designed predominantly with the North American market in mind. Does success in the brutally competitive American market demand specifically tailored designs? Or are “world cars” the salvation to Detroit’s passenger car woes?

Detroit’s Silver Lining

Andrew Dederer — Mon, 14 Jul 2008 16:40:26 +0000

Things are bad for Chrysler, Ford and GM. The Big 2.8 are burning precious cash, shedding valuable market share, choking on unwanted trucks, attempting to nurture (or excise) damaged brands and outmoded models, and struggling to bring relevant products to market. Bankruptcy looms large. And yet, there’s a silver lining to the recent, calamitous downturn in the U.S. new car market. But before we reveal the sliver of hope, let’s check in with the main engines of their destruction: Honda, Nissan and Toyota…

By The Numbers: What is So Rare as a Truck Sold in June?

Frank Williams — Wed, 09 Jul 2008 17:37:40 +0000

Everyone in the car biz knows that June was a catastrophic month for the U.S. new car market. Total sales dropped by 18.3 percent. The big change this time 'round: it wasn't just light trucks that took it on the chin. Car sales received some body blows, as well. If you're an auto industry exec [still] living in denial, it's best to stop here. If not, read 'em and weep. [NB: As per TTAC policy, sales numbers not adjusted for "sales days."]

Canadian Chrysler Dealer’s Firmly Held Belief in Brand’s Future

Samir Syed — Tue, 08 Jul 2008 13:21:15 +0000

Scott Held draws a line in the sand. “I firmly believe we will be selling Chrysler for quite a long time.” Held is the president and managing partner of Sherwood Partners. In the same year that Chrysler’s U.S. sales have shrunk by 35.9 percent, his group has just spent CA$18m on a new, super-sized Chrysler dealership in Edmonton, Alberta. What if Held’s wrong and Chrysler goes belly up? “I know I am taking a risk,” Held admits. "But I have faith."

Seven Classics Reissued for Today

Paul Niedermeyer — Sun, 29 Jun 2008 12:50:19 +0000

For the third time, a dramatic oil price spike has thrown the auto industry a curve ball. And once again, after years of supersizing, manufacturers are lacking the right-sized, economical products for which the market is desperate. Instead of spending three to five years developing new cars from scratch, it’s time to dust off the best from the past and put them back into production. An air bag here and some updated engines and technology there, and these seven classics are ready to save the day in each of the major categories:

TTAC Doesn’t Do Motorsports - Except When We Do

William C Montgomery — Sat, 14 Jun 2008 12:52:10 +0000

Few things in this world are as dramatic as the start of a NASCAR race. War, for instance. Or the launch of a Saturn V rocket. The crowd rises from their seats in anticipation. The starter stands in his box with flag in hand as the bestickered phalanx of cars rounds turn four. After the pace car scurries from view into pit lane the violence of dozens of highly tuned V8 engines is unleashed in unison. You can sense the invisible force of the sound approaching. Like others, I reverently remove my radio headphones so that I can fully ingest the aural assault. I feel the high frequency vibration in the aluminum stadium seats beneath my feet. And then it hits – a sound so big I hear it with my entire body. You don’t get that on TV.

Between the Lines: Berkowitz Hits the [Toyota] Open Road

Justin Berkowitz — Wed, 11 Jun 2008 16:32:26 +0000

As GM’s FastLane and GMNext blogs have demonstrated, the U.S. automobile industry has fully embraced the concept of blogging-- as press release. Toyota, of course, has entered the e-fray. Their Open Road blog may do little (as in nothing) to stretch the boundaries of Web 2.0-itude, but it offers the usual insight into the corporate culture from which it sprang. ToMoCo’s plugging the new Venza crossover, designed to fill the gaping hole in their lineup between the Camry, RAV4, Highlander, FJ Cruiser, 4Runner and Sienna. Into the depths we descend...

Saturn’s Sad Legacy: Nothing

Adrian Imonti — Mon, 09 Jun 2008 16:55:50 +0000

Saturn is dead. Despite a thoroughly refreshed line-up-- including a mild hybrid, a Lambda-dancing CUV, a sexy sports car and a cute ute-- the brand can’t get wood. In fact, Saturn’s sales are the very definition of flaccid. Year-to-date, they fell 19.9 percent. In May, sales sank 32.7 percent. In this process of final dissolution, the once autonomous upstart GM brand has become an irrelevant Opel outpost. Saturn’s Spring Hill, Tennessee factory is now in Chevy’s hands. Plastic body panels and unique designs have been swapped for rebadged leftovers from the GM parts bin. Saturn’s slow homicide is more than a shame. It offers a discouraging glimpse into General Motors’ dysfunctional culture.

The Truth About You

Michael Martineck — Tue, 27 May 2008 14:17:37 +0000

There are two kinds of people: people who split the world into two kinds of people and people who don’t. I usually consider myself part of the latter group. However, after spending a few years with The Truth About Cars, I’ve become fascinated by the variety of opinions from readers who share so much in common. Type in anything to do with the Prius and watch the battle lines form. Last year, The Cambridge Strategy Center published some ideas that go a long way towards explaining why this website isn’t always unified, taken as gospel and/or followed like law. It seems there are two kinds of car people.

The Truth About the Nissan GT-R and the Nürburgring Lap Record

James Ansell — Wed, 21 May 2008 15:13:45 +0000

I agree with TTAC reviewer Stephan Wilkinson : the new Nissan GT-R is the old Honda NSX. Once people actually start driving Nissan’s “everyday supercar”-- as opposed to simply jumping on the hype bandwagon and bench racing numbers supplied by Nissan-- they’ll appreciate the parallel. Although I'm still looking forward to my first hands-on experience with the GT-R, the reality of the car’s true nature and importance in automotive history is right under the fan-boys’ noses.

April Snapshot: Sales Tank, Inventory Bloats, Fire Sales Simmer

Frank Williams — Mon, 19 May 2008 10:54:55 +0000

Union problems, soaring gas prices and a faltering economy made April the worst month for new vehicle sales since 1995. Continued production in the face of diminished demand helped maintain the manufacturer's cash flow, but it lead to the inevitable: swollen inventories. In other words, even as U.S. new car sales go down the toilet, the toilet's backing-up. Fix the number 60 in your mind (the ideal number of days' supply for a new vehicle on a dealer's lot) and take a look at what's going down at your local dealer's lot.

Jeep: Off Road or Totally Off Track?

William C Montgomery — Mon, 05 May 2008 16:05:04 +0000

One year ago [Chrysler Suicide Watch 12] I opined that Jeep was morphing from the world's most uniquely-American brand into a schizophrenic abyss of muddled models. Of course, this analysis hardly required the keen insights of branding guru Al Reis. Jeep had just introduced the unconvincing Compass and platform partner Patriot to the market. And they were preparing to launch a re-skinned Jeep Liberty. The Liberty was the reigning best selling small SUV on the market. So one year later, how has the brand progressed? As a Jeep owner and acolyte of [what's left of] the brand, I'm sorry to say that Jeep's crisis is far deeper than before.

Buick and the Detroit Zombies

Andrew Dederer — Fri, 25 Apr 2008 20:44:15 +0000

There’s an often-repeated statistic: U.S. Buick dealers sell just four cars per dealer per month. It’s true, but c’mon; that was last year’s totals. In March, Buick sales slipped to three cars per dealer. Thanks to TTAC’s Frank Williams, I’ve had a chance to examine the exact dealer and sales stats for the Beyond Precision people. Having deconstructed the data, I can declare that this seemingly absurd three cars a month number, while strictly true, isn’t the whole story. The “whole story” is much worse.

VW’s “Max” Ads Miss the Mark

Andrew Dederer — Thu, 24 Apr 2008 14:26:15 +0000

You can argue who makes the best car in any given segment or genre ‘til you’re blue in the face. As for who has the best auto ads, there isn’t much debate: Volkswagen. Once again, the Boys from Wolfsburg have commissioned another Clio candidate. This time ‘round, it’s a talking (if ironically immobile) Bug named Max, starring as a talk show host. [Max ad not shown here; above is a vintage VW ad] The new ad, devised by Miami’s Crispin Porter + Bogusky agency, sums-up the automaker’s gestalt even better than “de-pimp my ride” and “Fast"-- and not in a good way.

The first thing that stands out about the new ad: the fact that the host is a Beetle. Roots, rock, reggae be damned. At the risk of stating the obvious, the Beetle isn’t even made anymore. Not here. Not Mexico. Nowhere. CP+G know what they’re doing though; in her more lucid moments, even Lindsay Lohan recognizes that old thing. The Bug’s iconic shape is an instant attention-getter.

The Joy of Branding or How I Learned to Love The Porsche Cayenne

Michael Martineck — Tue, 01 Apr 2008 10:13:14 +0000

One of the things I love about this site is the consistent welcome we all have to disagree with founding father, Robert Farago. He knows the truth about cars doesn’t come from pronouncements, but from productive exchange. Which is my slightly weasly way of saying: What’s with all this focus on brand dilution? Is it really the cancer of the car industry? Or, is it as misunderstood as Paris Hilton’s state of celebrity?

By The Numbers: No Valentines This February

Frank Williams — Tue, 11 Mar 2008 16:31:08 +0000

In February, lovers old and new turn their attention to matters of the heart. No 'bout a doubt it: automakers weren't feeling the love. Overall U.S. light vehicle sales dropped 6.3 percent in February and 5.3 percent for the year. With precious few exceptions, sales were down across the board. And this time, the usually impervious foreign nameplates and transplants felt the pain along with their Detroit counterparts (although not quite as badly). Let's take a closer look at the love's labor lost.

Geneva Auto Show 2008 Review: Das Show

Martin Schwoerer — Thu, 06 Mar 2008 17:22:10 +0000

If you’ve ever stood at a Swiss platform and watched a train pull in within seconds of its ETA, you’ll know that this small country knows how to get shit done. The Geneva auto show is no exception. Its precise schedule and small scale make it the crown jewel of car confabs. This year, there was enough greenwashing to scrub the Amazon clean. Where once style, performance and a beautiful babe made show cars sexy, halo cars must now wear a badge proclaiming “Saving the planet one car at a time.” As if.

TTAC Celebrates the Toyota Corolla’s 40th Birthday

Paul Niedermeyer — Wed, 05 Mar 2008 15:18:41 +0000

Forty years ago, Toyota’s invasion of America (and effectively, the world) began in earnest. In 1968, the newly-minted Corolla was sent stateside to do battle with the perennially best selling VW Beetle. Only two short years later, the Corolla was the second-best selling car globally. By 1975, Toyota surpassed Volkswagen as the top import brand. The Corolla has taken all the global production crowns (1.5 million sold in 2007; over 33 million total). It has been the engine powering Toyota’s rise to the world’s largest carmaker. Has the Corolla achieved immortality, or will it eventually lose its way like its spiritual predecessors, the Model T and VW Beetle?

The Big 2.8: Bury My Brand at Wounded Knee

Robert Farago — Wed, 27 Feb 2008 18:36:00 +0000

The automotive press is obsessed with new cars, and the automakers know it. As The Big 2.8 flounder on the shoals of their broken branding, badge engineering and bloated dealer networks, they highlight the latest bright shiny object as proof of future salvation. Jerry Flint: “The best news from the domestic industry is that the product, particularly at GM but also at Ford, is getting better.” Meanwhile, car hacks are ignoring the fact that the domestics’ business is collapsing, as startling new data from J.D. Power illustrates.

The Chinese Are Coming!

Andrew Dederer — Tue, 26 Feb 2008 12:11:13 +0000

Or not. Despite all the noise about a Chrysler - Chery hook-up, despite Chinese manufacturers' presence at the North American International Auto Show, we have yet to see a single Chinese-built (let alone designed) vehicle here in the U.S. So, are they really coming? The short answer is yes, some of them, eventually. But not for quite a while yet.

“On The Beach;” Is Ford and GM’s Future in Australia?

Paul Niedermeyer — Tue, 19 Feb 2008 20:17:09 +0000

Picture this: Toyota outsells GM and Ford combined. Chrysler is long gone, having sold their factories to a foreign automaker. Meanwhile, GM and Ford import all their products from low-wage countries except for large sedans, whose drooping sales figures are propped-up by fleet sales. Imports fill the top eight spots for retail sales. In the face of massive imports and a strong currency, the Big 3 (Toyota, GM, Ford) informs the feds that they’re considering ceasing all remaining domestic automobile production. Welcome to the Down Under (and out) car market of Australia.

Nissan GT-R: What Price New Hotness?

Jay Shoemaker — Tue, 19 Feb 2008 11:25:55 +0000

In Michelangelo Antonioni's film "Blow Up," Thomas (David Hemming) watches a rock guitarist smash his ax and toss the remnants into the audience. Caught up in the spirit of the moment, Thomas joins the scrum scrambling for a piece of the dead guitar. He grabs the lion's share and runs away. Dozens of fans give chase, attempting to wrest the prize from his grasp. Finally, Thomas is clear of the crowd. Alone with his treasure, he contemplates his booty-- and then casually tosses it into a nearby trash can. Nissan GTR anyone?

Can BMW Remain the Ultimate Money Machine?

Andrew Dederer — Tue, 05 Feb 2008 14:04:47 +0000

Yesterday, Consumer Reports (CR) rated Cadillac’s new CTS a better whip than both a BMW 328i and Mercedes C300. Never mind that CR preferred the Infiniti G35 and Acura TL. A Bimmer had been bested by a Caddy! This is news! Bimmers are the buff book benchmark! Yes, well, tying the commercial success of BMW’s 3s and 5s to their on-road abilities is a perfect example of false synchronicity. While many models are justly coveted for their dynamic delights, their on-road performance is tangential to their sales appeal. BMW’s mojo lies elsewhere, in a more precarious place.

Canadian Car Buyers Immobilized by Ignorance and Greed

Samir Syed — Mon, 04 Feb 2008 17:06:23 +0000

For four months, the Canadian dollar has been flirting with U.S. dollar parity. And yet the same vehicles cost more north of the border than south. As America’s NAFTA neighbor imports more and more American cars, basic theory holds that automakers would eventually cut Canadian prices to eliminate arbitrage. “Eventually” hasn’t happened. Just as it was back in October 2007, the Lincoln Navigator is still $28k cheaper in the U.S. than Canada. Why?

Whither Acura?

Andrew Dederer — Tue, 22 Jan 2008 13:25:06 +0000

Acura’s finest marketing moment comes halfway through “Pulp Fiction.” Our “heroes” have made a mess of things; the boss has called in “the cleaner.” Cut to an NSX (the sensible man’s Ferrari) pulling into the drive. Clearly “the cleaner” is well paid, always in a hurry and has no time to worry about his car. Who but car geeks remember this seminal moment? Where is the NSX these days? In fact, where’s Acura? As Consumer Reports (CR) reported, the answer is simple enough: nowhere.

Whither Cadillac?

William C Montgomery — Mon, 21 Jan 2008 23:56:03 +0000

Day three of the North American International Auto Show in Detroit is comparatively quiet. I took advantage of the lull to chin wag with Clay Dean, Cadillac’s Global Design Director and Dave Caldwell, Caddy’s top spin man. Both men were refreshingly candid. So I challenged the duo on the brand’s marketing mix: product, price, place, and promotion. While the adulation heaped upon the CTS, CTS-V and CTS Coupe indicate that Cadillac’s lineup is better off now than when ‘Slade sales started slipping, what of Caddy’s future?

Detroit’s International Award of the Year Awards

William C Montgomery — Sun, 13 Jan 2008 13:52:07 +0000

I’m not big on ceremony. Throw in a couple of blowhard politicians, a bevy of self-congratulatory industry execs and a swarm of self-important journalist jackals; and meetings like the 12th Annual International Car of the Year Awards are like kryptonite to my modest superpowers. The invitation from the friendly folks at Road and Travel Magazine read, “Regrets not Required.” In my case, regret was inevitable. Still, I donned a monkey suit and took one for the team with as much enthusiasm as I approached my first doctor’s visit after my fortieth birthday. Fortunately my doctor was quick and his gentle finger was warm, so that experience was not as bad as I had grimly anticipated. Unfortunately, I can’t say the same for the green-themed ICOTY award pageant.

Welcome to the Future: Tata Motors’ Disposable 1-Lakh Car

Samir Syed — Thu, 10 Jan 2008 12:17:32 +0000

Carburetors, fuel injection, headlights, satellite radios, ECU, ABS, air conditioning, drive-by-wire— today’s automotive technologies are variations on well-established themes. If “Crazy Henry” Ford resurrected, he’d have little problem driving-- or understanding-- a modern car. While automakers continue to tweak automotive systems for greater ergonomics, power, fuel economy and reliability; the improvements are evolutionary, not revolutionary. Even alternative powerplants aren’t game changers. But something else is…

Requiem for a Station Wagon

Andrew Dederer — Mon, 10 Dec 2007 12:19:01 +0000

One of the rare examples of altruism in pistonheads concerns the (nearly extinct) American station wagon. They passionately defend the one automotive genre that the vast majority of American consumers wouldn’t be caught dead in (excepting a hearse). Why so much love for a car shape that’s been fading from the American scene for the best part of 25 years? The passion comes from recognition. The reality we’ll have to blame on Darwin and his stupid birds.

Are Auto Ads a Forgettable Experience?

Frank Williams — Fri, 30 Nov 2007 11:58:36 +0000

Ad agencies evaluate the effectiveness of their artistry using a "recall score." The metric measures how well consumers remember a brand and/or product within 24 hours of having seen its advert. A high recall score means the commercial hot-wired the product into the consumers' minds. A low score means the sponsor wasted their money. Although I watch quite a bit of TV, this semi-professional pistonhead can't recall more than a handful of car ads. So much for carmakers getting their money's worth.

Volkswagen: The People’s Champion!

Michael Martineck — Thu, 29 Nov 2007 16:37:47 +0000

We here at TTAC spend a good part of our time trying to discern a car’s subjective worth. But the free market provides the final judgment. And when it comes time to rate an automobile manufacturer’s overall vitality, resale value is the way to go. Foresight, engineering and design all figure into what someone is willing to pay after the new car smell fades, when there’s a couple of Cheerios in the seat rails. Forget professional pundits and industry analysts; residual values are the ultimate arbiter of a carmaker’s strength. And guess what? Volkswagen is America’s most valued carmaker.

Feeling Used

Robert Farago — Tue, 27 Nov 2007 11:17:11 +0000

Money, like energy, is never lost. As the U.S. new car market heads down a hidey hole-- chased by high gas prices, a cooling housing market and a sluggish economy-- the used car business is booming. That’s because Ditech’s right: people are smart. OK, well, they’re not stupid enough to repeat expensive mistakes. In the last five years or so, tens of millions of American got burned by buying a new car. They’re mad as Hell and they’re not buying new anymore.

The Truth About the Chevrolet Malibu

Andrew Dederer — Tue, 20 Nov 2007 11:50:47 +0000

Stop the presses! GM has a hit! Well, at least a hit with the media. In fact, the mainstream automotive press loves the new Chevrolet Malibu so much they’re ready, willing and able to tell the world that this is it! The product-led turnaround that GM’s quintessential non-car guy, CEO Rick Wagoner, predicted seven years ago. Arriving as it does immediately after GM’s new two-tier labor contract with United Auto Workers, the new ‘Bu seems the literal embodiment of a corner turned. But is it? Is the new Chevy a harbinger of a new dawn for the beleaguered America automaker?

Pontiac: Always a Bridesmaid

Samir Syed — Thu, 01 Nov 2007 17:21:15 +0000

Whenever General Motors announces a hot, sexy sports car that’s supposed to dethrone BMW, a little piece of me dies. That’s the part of me that grew-up watching Smoky and The Bandit (over and over), yearning for my very own Trans Am adorned with a giant, screaming chicken. Nowadays, it seems everyone in The General’s army is allowed to have a bona-fide sports car except, ironically, their sports division. That ain’t right.

Canadian Imports Go Loonie

Samir Syed — Fri, 05 Oct 2007 14:28:21 +0000

The Canadian dollar is back. After a thirty-year slump, the “loonie” is now staring eye-to-eye at the American greenback. The strong Canadian economy, the worldwide thirst for oil, and George Bush using The Fed as a money tree have all converged to push the Canadian dollar skyward. The meteoric rise of the dollar has given Canadians incredible arbitrage opportunities with American products; especially cars. The Canadian car industry ain’t pleased-- and for good reason.

The Truth About GM’s Hybrids

Paul Niedermeyer — Tue, 02 Oct 2007 18:02:04 +0000

GM’s decline began fifty years ago, when the domestic automaker failed to repel import sales with competitive products. GM’s rear-engined air-cooled Corvair provided the template: technically advanced, but too expensive to provide profit. A string of over-ambitious and ultimately doomed imports fighters followed: aluminum-engined Vega, the Wankel, X-Body FWD, Olds Diesel V8, Cadillac V8-6-4 and EV-1. Now, when it can least afford a costly mistake, GM is launching a blitz of four different hybrid systems in a desperate attempt to counter Toyota’s successful Hybrid Synergy Drive (HSD). Is GM’s Volt the Corvair reincarnated?

Mercury Rising?

Sajeev Mehta — Thu, 27 Sep 2007 10:51:20 +0000

I recently found myself in London working on a large project for an even larger corporation. I took particular interest in the Ford models plying British roads. In contrast to America’s Blue Oval offerings, these Euro-Fords looked clean, modern and, above all, right-sized. And then, bombing around London in a Ford Mondeo estate (station wagon), the chariot’s gentle diesel clatter brought sudden clarity. If Ford hopes to preserve America’s mildewed Mercury brand, Euro-Fords are the way to go.

Cadillac Flunks History. Again.

Justin Berkowitz — Wed, 19 Sep 2007 11:01:52 +0000

Cadillac is something of a comeback kid. The first time the brand was on the ropes, its divisional president interrupted a GM board meeting with a winning proposal: sell Caddies to America’s burgeoning black population. In the ‘90’s, America’s African-American community once again rescued the struggling brand; their passion for a rebadged Yukon infused the ailing automaker with fresh marketing momentum and a pile of cash. Now that the Escalade’s a bomb instead of da bomb, and Caddy’s passenger cars can’t cut the transplanted and/or imported mustard, Cadillac has a new plan. I call it The Beginning of the End.

Lamborghini Reventón. No Really.

Stephan Wilkinson — Tue, 18 Sep 2007 11:03:41 +0000

About 20 years ago, my wife and I visited Japan on behalf of a travel magazine. We explored the area around rural Kyushu, Japan’s Polish joke. Back then, Japanese travel was still a little adventuresome. And it was hard to scope out Japanese customs in these hinterlands. After a couple of mornings at Japanese inns, we realized that we were the only guests who didn’t breakfast in our bathrobes (kimonos). The next day we came down naked as Britney under our bathrobes. For reasons I never discerned, everybody else was dressed in suits. Lamborghini must have felt the same way at the Frankfurt Auto Show.

Are the Dodge Boys Sexually Conflicted?

Robert Farago — Fri, 14 Sep 2007 14:39:07 +0000

Ladies' Home Journal, Parenting, Better Homes & Gardens, In Style, Cookie Magazine, Cooking Light, Domino, Health, Home, Nick Jr. Magazine, Pregnancy, Self, Working Mother and Babytalk. In case you were thinking Mr. Karesh's review of the new all-new Dodge Caravan indicated that Chrysler is targeting its Man-Van at a male demographic, those are the mags that will feature ads for the people mover. And yet, this Sunday, right in the heart of NFL TV time, The Dodge Boys are running ads showing Man-Van family bonding (with Dad at the helm) to entice "young families" into their Caravan of love. Is Dodge having problems with its sexuality? Perhaps. Remember the brouhaha about the Dodge Caliber, the fairy and the [alleged] fairy? Another clue: at the same time it's rolling out it's Man-Van, Dodge is introducing their new tagline. They're trading "Grab Your Package And Drive a Muy Macho Dodge You Horny Bastard" (or something like that) to the deeply androgynous "Grab Life." Yes, and then what?

Lexus F-Series: No Harm, No Foul

William C Montgomery — Thu, 13 Sep 2007 15:39:45 +0000

Bad branding was one of the prominent themes of TTAC’s 2006 Ten Worst Automobiles Today (TWAT) awards. No fewer than four vehicles on the list were derided for their corrosive effect on their brand. Ahead of our ’07 rundown (so to speak), RF has thrown a spear at Lexus’ decision to launch a performance-oriented F-Series sub-brand. The publisher claims a hot shit Lexus derivative is bad branding on wheels. So will a Lexus’ F-Series eventually find a place in TTAC’s Hall of Shame, or is it simply a case of line extension done right?

Frankfurt Auto Show: You Can’t Always Want What You Get

Martin Schwoerer — Thu, 13 Sep 2007 13:18:59 +0000

Carmakers spend millions of dollars on producing concept cars for the Frankfurt Auto Show et. al. But what is a concept car? Is it something a car company is going to do, wants to do, or might one day do? Yes. There are three main categories: teasers (cars that will eventually hit the market in castrated form), styling exercises (masturbatory, image-building efforts that showcase a carmaker's abilities) and science fiction (the shape of things not to come). Needless to say, teasers first.

Frankfurt Auto Show: It Ain’t Easy Not Being Green

Martin Schwoerer — Wed, 12 Sep 2007 01:32:43 +0000

If you’re a gearhead monitoring the international media, you’d be forgiven for thinking the Frankfurt Auto Show was run by and for Friends of the Earth. Low-emission Mercedes! Low-consumption VWs! Hydrogen Kias! Ethanol Saabs! Non-existent plug-in hybrids! A casual visitor to this event might wonder if he’d gone to the wrong show. Why is it that all the interesting new cars premiering in Frankfurt are non-green? Why do people crowd around sexy new cars such as the 1-Series BMW, while nobody (save the press) gather ‘round the various not-quite-developed Mueslimobiles?

Toyota’s Image at the Crossroads

Andrew Rush — Thu, 23 Aug 2007 15:10:17 +0000

For the last few years, the American public has embraced Toyota's products as clean, durable and efficient. Exhibit A: the demure Camry, which has maintained its position as America’s favorite automobile. Exhibit also A: the Hybrid Synergy Driven Prius; the poster child for environmentally and foreign policy-conscious consumers. No surprise, then, that Toyota's been held up as America's responsible automaker, the one who doesn't bitch and moan about federal regulations, but just puts its head down and does the right thing. And makes money doing it! And then Toyota released the new Tundra.

Bye American?

Tony Sterbenc — Tue, 21 Aug 2007 16:55:03 +0000

I grew up in a working-class town where “Buy American” ranked just above “Go to church.” Chrysler cured me of my automotive illusions. One day, the engine fell out of my first new car, a ’79 Plymouth Horizon. At 30k miles. The local dealer, the zone office, and then the factory solemnly informed me that my 12/12 warranty was over, so Up Mine. And yet I have family and friends who’ve kept the faith to this day. As The Big 2.8’s fuselage prepares for its final meeting with terra firma, I know it’s wrong to snigger at Detroit’s woes. But I’m laughing to keep from crying.

Where Have All the Good Brands Gone?

Robert Farago — Sun, 12 Aug 2007 11:19:10 +0000

In a video interview with Porfolio.com, Sir Nick Scheele explains how he turned Jaguar around. Well, not exactly; after all, he didn't. But the British brand’s former CEO did, as claimed, help raise Jaguar’s American JD Power quality rankings from second-to-last to first. In that regard, Sir Nick reveals that Jag’s ascension up the quality league tables hit the wall in ‘94. The breakthrough: after two years at the helm, Scheele realized Jag’s assembly line workers knew more about build quality than the suits. Scheele empowered the guys on the factory floor, left, ran Ford of Europe for a bit, collected a gigantic pension (and a peerage) and called it good. And now Sir Nick wants Jaguar back. Nooooooo.

The Truth About Intellichoice Awards

Frank Williams — Thu, 02 Aug 2007 12:10:51 +0000

TTAC has not been shy about its scepticism regarding the owner satisfaction and quality surveys produced by JD Power, and the commercial links to the industry that they monitor. We have also pointed out that Consumer Reports' "secret sauce" (i.e. their analytical formulae) have certain limitations. Until now, we've overlooked another source of auto manufacturers' braggin' rights: the Intellichoice awards. While you'll hear Intellichoice mentioned in the same breath as JD Power in more than a few automotive advertisements, Intellichoice's methodology doesn't get nearly the same scrutiny. It's time to correct this oversight.

Toyota: GM Redux?

Andrew Rush — Tue, 31 Jul 2007 12:30:30 +0000

There comes a time in many a life when an individual must prove to the world they are no longer the student, they have become the master. The transition usually arrives on the field of battle, whether it’s a real battlefield, competitive sports, academia, entertainment or business. In the case of Toyota, their moment of ascension arrived when their products outsold General Motors’ in the first quarter of 2007. Toyota bested The General by a score of 2,348,000 to 2,260,000. Toyota is the new numero uno. But it still has much to learn, if it is to avoid following its old, corpulent mentor's footsteps off the high tower of greatness.

For the Love of Jeep

Brad Kozak — Tue, 24 Jul 2007 12:27:03 +0000

The love of all things Jeep ranks high in the automotive pantheon of passion. Porschephiles, ‘Vettistas, Hemiheads, Scuderia-- they ain’t got nothin’ on Jeepaholia (Hi, my name is Brad and I love Jeeps.) Jeep devotees are a hardy breed, born to be wild. Other than domestic and commuter runs, they ALWAYS take the road untraveled; sneering at mud, chuckling at chuckholes, belly laughing at boulders. Hummers, Land Cruisers, 4Runners and other four wheel-drive pretenders to the throne are equally capable in certain situations, but they lack Jeep’s visceral appeal. So what is it about the brand that keeps the faithful faithful?

The iPhone Rocks! Apple Shows U.S. Carmakers How to Dial-up Profits

William C Montgomery — Tue, 17 Jul 2007 11:20:38 +0000

Cell phones cooler than cars? No way! Way. CNW Marketing Research recently reported that thirty-two percent of today’s 16 to 29-year-olds view Apple’s new cell phone as the hot ticket to campus stardom. Only twenty percent made the same claim for a car. In fact, the survey found that any kid fortunate enough to lift an iPhone to his or her ear was guaranteed a seventy percent popularity rating. If we accept that the iPhone is the King of cool, what does Apple know that has the U.S. automobile industry doesn’t, that allows a nerdy little electronic device to trump the [formerly] ultimate symbol of adult independence?

Buick: The American Lexus (or Not)

Justin Berkowitz — Sun, 08 Jul 2007 12:01:33 +0000

General Motors is a trash talker. The automaker brags about future show-stoppers, unveils concept vehicles with a sly wink (knowing full well they're stuck in development Hell) and offers press hacks "preview" drives of half-baked green machines. No GM brand has been more abused by these dishonest "you just wait" promises than Buick. The 2004 Velite was a glimpse of an alternate universe, where Buick made perfect sense. And as far back as 2003, board-certified spin specialist Bob Lutz was busy proclaiming that Buick will be "an American Lexus." As if.

Why Local Car Dealer Ads Suck

Brad Kozak — Sun, 24 Jun 2007 13:22:45 +0000

Even though automotive advertising is fleeing print for the Internet, national TV ads are still an automaker’s most important showcase-- and they know it. From GM’s levitating HHR’s to Jill Wagner’s Mercurial presence, car ads remain big budget productions from start to finish. Automobile manufacturers spend more time, effort and money (per second) to create your average 30-second car commercial than the networks spend to make an entire 30-minute sitcom. So why are viewers subjected to local dealer ads – touting the same products – that look like they cost a buck ninety-five?

Good Thinking: Porsche Pulls Out of the Detroit Auto Show

Robert Farago — Sat, 23 Jun 2007 16:12:43 +0000

One day, an admirer asked Herr Doktor Sigmund Freud if his favorite tobacco product was a phallic symbol. “Sometimes a cigar is just a cigar,” Freud reportedly replied. By the same token, when Porsche North America announced that they’d turned their back on the Detroit auto show because it’s a waste of money, the German automaker turned their back on the Detroit auto show because it’s a waste of money.

PAGitude: How Much Mileage is Left in Land Rover, Jaguar and Volvo?

Robert Farago — Mon, 18 Jun 2007 16:25:04 +0000

Now that Ford has put the remainder of its Premier Automotive Group (PAG) on EBay, it's time to evaluate the soon-to-jettisoned divisions' prospects. As "going concerns," Land Rover and Jaguar are like a cartoon character who just ran off a cliff; the only thing that keeps them from plunging into oblivion is [momentary] ignorance that they're about to plunge into oblivion. Business wise, Volvo is the Daffy Duck of the group: a major star that somehow graduated to the role of successful sidekick. As brands, well, that's a different matter. Or, as it turns out, not.

Saturn Aura vs. Toyota Camry vs. Honda Accord vs. Reality

Robert Farago — Tue, 12 Jun 2007 10:39:53 +0000

So Ford runs an ad campaign pitting an all wheel-drive Fusion against a front wheel-drive Toyota Camry and Honda Accord. An invited group of customers scores the Fusion tops in styling, handling, performance and “fun to drive.” Emboldened by Ford’s “dare to compare” strategy, Saturn decides to launch a “Side-by-Side-by-Side Test Drive.” Dealers are instructed to offer customers some seat time in the Aura, Camry and Accord. It’s gutsy! It’s feisty! It’s ridiculous.

The Toyota Prius Tips In at the Tipping Point

Robert Farago — Sun, 10 Jun 2007 16:20:52 +0000

The Toyota Prius hybrid has been the high-mileage low-emissions darling of the chattering classes and their Hollywood pals for some time. Now, suddenly, sales have shot up, and it seems that the Prius is about to become a mainstream motor. While the little eco-warrior that could still doesn't account for a significant fraction of Ford F-150 sales, the question remains: is the Prius' recent sales surge a fluke?

Toyota: Quality is Job Two

Robert Farago — Sat, 02 Jun 2007 14:58:21 +0000

Japanese society is known for its rigid social stratification. Depending on the listener’s relative status, there are four ways to say “this is a book." Individuals within this system are well aware that anyone who moves upwards from their "natural" place in the pecking order risks ridicule, jealousy and attack. Hence the ancient Japanese proverb: “The nail that sticks out gets hammered down." Automotively- speaking, Toyota is the tall nail these days, and boy, is it getting hammered.

Mahindra and Mahindra Set to Tackle U.S. Market with Diesel Power

Michael Martineck — Tue, 29 May 2007 16:37:58 +0000

Once upon a time, American stage magicians would assume Indian-sounding names, don turbans and claim to have mastered the mysteries of the Indian subcontinent. Automaker Mahindra & Mahindra (M&M) looks set to revive the country’s rep for astonishing feats. While industry pundits are busy anticipating Chinese automotive exports, M&M are about to sell their products stateside, preparing to enter America’s value-for-money, entry-level market. Will it be magic or a massacre?

Automotive Quality: Zen and the Art of Warm Fuzzies

Matthew Danda — Tue, 29 May 2007 11:04:44 +0000

During one of my first job interviews, the HR guy threw me a curve ball. How do you define quality? The question stopped me cold. I’d just read Zen and the Art of Motorcycle Maintenance, in which the main character went insane trying to answer that same question. I don’t remember what I said, but thus began a long-term intellectual exploration. I know this website has tried to define this seemingly nebulous term many times, but here’s what I’ve been thinking.

General Motors’ Branding Fiasco Part Six - Cadillac Falls Down

Paul Niedermeyer — Sun, 27 May 2007 10:38:50 +0000

There is no greater symbol of GM’s branding woes than Cadillac. During its formative years, the marque’s products stood at the pinnacle of automotive excellence. As The Grateful Dead would say, what a long strange trip it’s been: from coachbuilder to maharajahs to supplier of Chevrolet clones to America’s mid-market motorists. In a world of $30k Rolex watches and $500 wine, Cadillac no longer deserves to be called a luxury brand. Its failure epitomizes all that went wrong with GM’s branding.

General Motors’ Branding Fiasco Part Five - Buick, Fading Fast

Paul Niedermeyer — Fri, 25 May 2007 15:43:04 +0000

Buick was the special child in the GM family: the beautiful and temperamental second-oldest daughter that somehow always got the most attention from Daddy. Sure, oldest daughter Caddy got to wear the family jewels and formal gowns, but Buick was lavished with style. Whether it was Harley Earl or Bill Mitchell, GM’s top stylists always blessed Buick with their best efforts. For decades, Buick was maintained in the style to which she had become accustomed, and remained America’s fashion-conscious upscale buyers’ wheels of choice. And then, not.

GM Set to Kill the Hummer H2: Requiem for a Heavyweight

Robert Farago — Fri, 25 May 2007 10:48:43 +0000

Was the Hummer brand really born four years ago? The Army-inspired H2 now occupies a fading mindspace. It’s a relic from a time when America’s foreign policy problems were out there, somewhere. When gasoline was like Gatorade: a cheap, endless commodity that hydrated the hopes and dreams of a nation. Post-911, post-Katrina, post-Iraq, the H2 somehow remains. But not for long. According to our spies, GM has slated the gas-gargling mondo-SUV for termination. What’s THAT all about?

General Motors’ Branding Fiasco Part Four - Oldsmobile Pegs Out

Paul Niedermeyer — Thu, 24 May 2007 15:58:51 +0000

Of all of GM’s domestic brands, Oldsmobile most accurately represents everything that went wrong with GM’s divisional structure. Historically the most innovative GM division, its twilight years were spent pathetically proclaiming “This is not your father’s Oldsmobile.” Olds rode a roller-coaster in the sales charts, hitting glorious peaks before its final, fatal free-fall. But the tragedy of Olds is that it could have been the instrument of GM’s redemption.

General Motors’ Branding Fiasco Part Three - Pontiac Only Lived Twice

Paul Niedermeyer — Wed, 23 May 2007 10:28:40 +0000

Grand Prix, GTO, Firebird, LeMans, Catalina 2+2, Bonneville. The names evoke automotive magic— provided you were an enthusiast between six and sixty during the ‘60’s. For today’s pistonheads, these storied names; indeed, the entire Pontiac brand has lost its adrenal association. Even the drop-dead gorgeous Solstice can’t rescue a marque now known for budget-priced, badge-engineered mediocrity. Pontiac’s fall from grace may not be the worst (best?) example of GM’s branding cataclysm, but it’s one of the most emotive.

General Motors’ Branding Fiasco Part Two - Chevrolet’s ADD

Paul Niedermeyer — Tue, 22 May 2007 16:21:06 +0000

During the American car industry’s formative years, entrepreneurs started car companies left and right, jostling for quick profits and market share. Flint Rock native William Durant had a meta vision: agglomerate the best of the new automakers to create an empire called General Motors. This he did, through endless charm and clever financing. But Durant gambled too much too often, and lost control of his brainchild. The Chevrolet brand was born out of wedlock, to fund Billy Durant’s comeback.

General Motors’ Branding Fiasco Part One - Sloan’s Vision Betrayed

Paul Niedermeyer — Mon, 21 May 2007 16:08:11 +0000

Imagine a different GM from today’s confused and embattled automaker. A General Motors where each division has a clear and coherent brand, universally known and recognized by automotive consumers. Where each division’s image and related price range is unique, without overlap. Where each division is the dominant brand-- or at least highly competitive-- in its respective market segment. Welcome to General Motors circa 1930.

Car Buying Tips: Sales Prevention Officers and “Demand Pricing”

Justin Berkowitz — Thu, 17 May 2007 11:00:18 +0000

My father is a car guy in his late fifties. One day, he decided he wanted a sports car. Anyone who’s clocked the age of the men in the Viagra’s ads should realize this isn’t an unusual phenomenon. Men fifty and over are the heart and soul of the U.S. sports car market. And the Chevrolet Corvette occupies the bulls-eye center of that prime demographic. The ‘Vette is also one of GM’s few bright spots: the only world class car in Chevrolet’s showroom of mediocrity. Anyway, my father tried to buy a Corvette-- and failed.

Quality Schmality

Frank Williams — Thu, 19 Apr 2007 10:55:06 +0000

In a recent study of new vehicle owners, Ford products came second in "overall initial vehicle quality." According to Ford's PR release, Honda took the top slot, while Toyota and Nissan tied Ford for second (although Toyota actually beat Ford by three points). Yes, well, it turns out The Glass House Gang paid for the report, which mirrors the format of J.D. Power's Initial Quality Survey (IQS) without reproducing the results. Last year, JD's mob ranked Ford fifteenth in Initial Quality, one place beneath the industry average, nine places behind Honda and eleven places behind Toyota. Anyway, who cares?