The Truth About Cars » Branding

How Did We Miss This? Ford Trademarking “Fun”

Robert Farago — Tue, 02 Dec 2008 15:22:02 +0000

And there we were saying Ford doesn’t have branding. Anyway, fun is a serious business, apparently. Bloomberg reports that Ford has been trying to trademark the word “FUN” (all caps?) in connection with “some” of its European automobiles since 2005. In 2007, the EU courts said, in effect, geddowdahere. And while we’re dealing with the [...]

Tiger Uncaged

John Horner — Mon, 24 Nov 2008 20:09:53 +0000

Tom Krisher with the AP reports that Tiger Woods and Buick are making their rumored divorce official. The $7m/year endorsement deal was supposed to end sometime next year, but both sides have agreed that enough is enough. GM is looking to save pennies wherever it can, and it seems that the Buick-Tiger [...]

Fiat Kills Yugo. Dozens Bummed.

Martin Schwoerer — Thu, 20 Nov 2008 20:42:55 +0000

Brand management can be so easy. Take car brands. You take a good clear look at your portfolio, you write down in simple language on one piece of paper what positives, negatives, and potential of each brand. Kill the brands that are below par, lack a USP (Unique Selling Point) and/or wouldn’t fetch chump change [...]

When Maximum Men Meet Minimum Times

Edward Niedermeyer — Wed, 19 Nov 2008 15:34:06 +0000

Bob Lutz rode to Motown greatness on a wave of bombast, charisma and general maximum-ness. And his ability to act like Patton in full advance, even in the face of dismal business results, has been crucial to GM’s several year long “product revolution” denial offensive. But when the war is over, and the other general’s [...]

Scion Coming to Canada… in 2010

Justin Berkowitz — Tue, 21 Oct 2008 10:39:31 +0000

Toyota’s announced that Canadians will no longer have to spend $30k to import a grey market Scion xB from The Land of the Free. Soon they can overpay for a Scion at their very own local Toyota dealer. Maybe. In 2010, Toyota will open Scion sub-stores at Toyota dealers in Toronto, Montreal, and Vancouver. Unfortunately, [...]

Mid-Engined Vette? Yeah Right…

Edward Niedermeyer — Tue, 07 Oct 2008 16:13:07 +0000

According to Motor Trend, none other than Maximum Bob Lutz (or his mouth, which is independently operated) was behind plans to convert the C7 Corvette to a mid-engined layout. And from certain perspectives (albeit not the traditional one) such a move would have made a lot of sense. Besides putting Ferrari on notice, a mid-engined 'vette would be easier to convert to a fuel-saving cylinder shutoff system, since the current front-engine, rear-transaxle layout necessitates a separate clutch to disengage cylinders. The extra weight of a mid-engine cowl and the complication of reeingineering the entire platform has killed plans for a mid-engined Corvette, and GM has pushed the C7 model release back to 2014. In other words, unless GM seriously gets its shit together ASAP, the current 'vette could be the last model ever made. In any case, the C6 will likely be the last V8-only Corvette, since CAFE standards will likely necessitate a V6 base engine. And you thought a mid-engined Corvette was sacrilege...

GM Cuts Advertising Spend. Again.

Robert Farago — Mon, 22 Sep 2008 12:08:11 +0000

“Their overriding challenge is: How do you manage eight different brands?” Well exactly. Dan Gorrell, founder of consultant AutoStratagem, understands that there’s only so much GM can do to promote any one brand or model when there are eight (minus HUMMER seven) hungry mouths (with over 40 models) to feed. No news there. The General’s [...]

Scion-ara to Toyota Branding?

Robert Farago — Wed, 17 Sep 2008 11:31:49 +0000

First, Toyota decides it needs a U.S. luxury brand. It builds an S-Class killer, then repackages its mass market products for upmarket tastes. Then ToMoCo decides it needs a U.S. “youth brand.” It imports quirky, customizable, low-cost Japanese market vehicles; then sells them to older people (and repackages them for their in-house designers’ college professors). [...]

GM Car Czar Reveals Real Reason for Viper Sale

Robert Farago — Mon, 08 Sep 2008 18:42:16 +0000

I never considered the California Air Resource Board (CARB) a motivating force for Chrysler’s Viper model sale– until I read this WardsAuto story. “The new minimum CAFE standard of 35 mpg (6.7 L/100 km) in 2020 and additional pressure from California and 15 other states to limit carbon dioxide is part of [...]

Scion Ad Just a Little Bizarre

Justin Berkowitz — Mon, 08 Sep 2008 14:43:47 +0000

Scion is still pushing the individualist, customized youth brand schtick. The melodramatic ad above– which one can only hope is meant in a tongue-in-cheeck tone– once again flogs the tuner car image and notion of a Scion owners’ community. There’s no question that Scion’s lineup has some character– even if the linch-pin xB was diluted [...]

Hyundai ix55: Worst Alphanumeric Name Ever?

Justin Berkowitz — Fri, 05 Sep 2008 15:31:44 +0000

Yes, we all hate the alphanumeric nomenclature, snaking over the auto industry like poison ivy. And with only so many letters and numbers, we always expect some repeats (Lexus LS/Lincoln LS, Chrysler 300C/Mercedes C300, BMW X5/Mazda MX-5). Has Hyundai gone a character too far? The car we North Americans know as the Veracruz is being [...]

Return of the Zombie Brands, the Sequel: Talbot

Martin Schwoerer — Thu, 04 Sep 2008 14:46:22 +0000

It was Marx who said that history repeats itself – albeit the first time as tragedy, and the second time as farce. Between the World Wars, Talbot built cars that were among the most expensive in Europe, and most beautiful ever. The post-war period of austerity was hard on Talbot, and the company was integrated into what was later the European affiliate of Chrysler. When Peugeot bought Chrysler's European operations in 1978, it unearthed this proud but almost dead brand, and sold some undistinguished cars for a few years until it changed its mind about the whole idea. Fast forward: according to Automobilwoche, PSA Peugeot Citroen is now planning the add further disgrace to injury. Renault-Nissan's Dacia marque of superaffordable cars is a runaway success, which Peugeot would like to emulate without damaging its present brands. So it is thinking of importing cheapo third-world-built cars and marketing them under the Talbot name. Aaargh! Dacia is a great idea whose time has come, and is managed with considerable skill. No wonder the concept is attracting copycats. But some marketing people have no respect for historical significance. Why not just think up a new brand name? Personally, I'd rather drive something called Guglhupf or Superfromage than a made-in-India Talbot.

Chrysler Thinking About Selling Viper

Frank Williams — Wed, 27 Aug 2008 15:02:27 +0000

Rumors have been flying for quite a while that Cerberus would sell off parts of Chrysler. Most of the conjecture centered around Jeep being the first to go. However, Automotive News [sub] reports the Dodge Viper could lead the exodus through the gates guarded by the three-headed dog. This morning Chrysler [...]

Lincoln-Mercury Dealers Facing Extinction

Frank Williams — Mon, 25 Aug 2008 12:09:21 +0000

Ford says it's not killing Mercury but their actions indicate otherwise. In the past two years, The Blue Oval Boyz have cut their ranks by 400 dealers, mainly by merging the three brands under one roof in many areas. Automotive News [sub] reports that starting this week, Ford execs will tell the remaining stand-alone [...]

Question of the Day: Brands or Products?

Jonny Lieberman — Tue, 19 Aug 2008 20:30:56 +0000

Hang around Herr Farago long enough and you'll eventually hear, "The Brand isn't everything; it's the only thing." Of course I've made a pretty good career out of disagreeing with Farago about nearly everything. See, I believe that products trump brand. Case in point, Porsche. The Cayenne was a brand killer, right? A travesty [...]

Pontiac names Pontiac G8 ST concept Pontiac G8 ST

Justin Berkowitz — Thu, 14 Aug 2008 14:25:40 +0000

Memo to car manufacturers: naming contests don't work, except to grind my gears. It didn't work for Alfa Romeo, who had to ignore contest results for the car we now know as the MiTo (fan chosen name was Furiosa). And now General Motors has revealed that the production name of the Pontiac G8 ST concept [...]

Volvo Turnaround Plan: To Save The Brand We Must Destroy The Brand

Edward Niedermeyer — Wed, 13 Aug 2008 19:25:37 +0000

We've been helping to circulate rumors of possible Volvo sales recently, most of which have centered on Chinese firms as the potential buyer. All the while Ford has insisted that Volvo isn't for sale; statements which we've treated with the incredulity that all pre-sale denials deserve. But it seems Ford's sticking with [...]

Lexus: Performance Out, Hybrids In

Edward Niedermeyer — Tue, 12 Aug 2008 17:27:40 +0000

ToMoCo's fears of "big company disease" seem most credible when looking at its non-Toyota brands. While Scion fails to capitalize on increased demand for smaller, more efficient cars, Lexus is struggling to adjust to the changing market conditions. Automotive News [sub] reports that Lexus has relied too heavily on SUV and [...]

Optional Jaguar XF Hood Ornament Looks Horrid

Justin Berkowitz — Tue, 12 Aug 2008 13:50:51 +0000

The Jaguar XF was meant to be a clean sheet car for Jaguar - a reboot of the brand, to use filmmaker parlance. With that in mind, Jaguar was planning on ditching the 'Leaper' hood ornament altogether. But old habits die hard, as I observed in my local shopping mall today. Presumably, too many people [...]

Automotive News Letter Tells The Tale of Motown Myopia

Stephan Wilkinson — Thu, 07 Aug 2008 15:58:41 +0000

There's a Letter to the Editor in the current issue of Automotive News that encapsulates everything that's wrong with the North American automotive industry. It's even the letter of the week, boxed and highlighted in GM taupe, given special prominence and headlined “Why won't consumers buy Detroit cars?” The letter is from a third-generation Canadian [...]

New Abarth Sports Car Signals Lotus Elise Platform OD

Edward Niedermeyer — Wed, 30 Jul 2008 19:13:40 +0000

Autocar UK reports that Fiat's performance brand Abarth is developing a mid-engined sports car. The restyled next gen Lotus Elise will feature a next gen Fiat turbo-charged, direct-injection, air-valve four-cylinder engine with 240hp. So, where are we? Lotus makes several Elise variants, from the Exige (racer) to the Europa (chiropractor's [...]

Tata Reviving Daimler Brand For Upmarket Ambitions

Edward Niedermeyer — Mon, 28 Jul 2008 20:29:33 +0000

We reported earlier that new Jag and Landie owners Tata Motors want to take its once-proud luxury brands back upmarket. According to Auto Motor und Sport, boss Ratan Tata has suggested to investors that Jaguar could revive the Daimler brand to take on Bentley and Rolls. Daimler as in Mercedes? Nein. A [...]

Bob Lutz: “Pontiac will be nourished with products”

Frank Williams — Tue, 15 Jul 2008 16:58:23 +0000

After Rick Wagoner's announcements this morning, GM Car Czar Bob Lutz was bubbling over with product news. Of course, Maximum Bob overlooked the fact that someone else's year-old warmed-over Pontiac leftovers may be nourishing, if they're seldom appetizing or appealing. Anyway, MB revealed that the Chevrolet Cobalt will be around for a lot [...]

Volt Birth Watch 65: Damage Control

Frank Williams — Mon, 14 Jul 2008 15:51:51 +0000

Automotive News [sub] reports that the plug-in electric - gas hybrid Volt will be sold as a Chevrolet in the U.S. only. When they go on sale in Europe in 2012, they'll have different styling and wear Opel and Vauxhall badges– even though they'll be built on the same assembly line in Michigan. [...]

Why The Chinese Aren’t Coming

Edward Niedermeyer — Wed, 09 Jul 2008 19:17:46 +0000

Automotive News China [sub] managing editor Yang Jian has a column warning Chinese firms not attempt to buy Volvo anytime soon. Yang considers the Shanghai Automotive Industry Works (SAIC) and First Auto Works (FAW) as the most likely suitors for Ford's Swedish division. They alone have access to the state-controlled bank financing needed to make the deal happen. Never mind that, Yang says, there are a wealth of lessons that China is still not ready to buy-up western car brands. The first-ever Chinese purchase of a western brand, Nanjing Auto Group's takeover of MG, led to an overleveraged NAG being bought up by SAIC. When SAIC bought Korean firm Ssangyong, it had to endure labor walkouts over plans to shift production from Korea to China, followed by a slide into unprofitability. As a friend of Yang's at SAIC puts it "SAIC certainly won't consider buying (Volvo) since we know how much hassle an overseas acquisition could create." So it turns out that a booming market isn't enough for Chinese firms to overcome their unfree-market disadvantages.

Fiat, BMW to Collaborate on Platform, Engines

Justin Berkowitz — Tue, 08 Jul 2008 16:16:39 +0000

Fiat makes some really wonderful small cars. But as always, it's more fun to do it with someone else! And so Fiat likes to take lovers, much like the Italian Prime Minister does (e.g. former topless model/current Minister for Equal Opportunities Mara Carfagna, Ministers of Parliament Gabriella Giammanco, Micaela Biancofiore and Nunzia De Girolamo and Venezuelan Model Aida Yespica). Consider: The Fiat Panda and 500 share a platform with the upcoming Ford Ka. Fiat partnered with PSA Peugeot-Citroen for the (these are real names) Fiorino, Bipper, and Nemo small vans. In Europe, Fiat sells the car us North Americans know as the Suzuki SX4 as the Fiat Sedici. And Fiat has been rumored to be talking to Tata about accessing Jaguar's RWD platforms for future models. And now, BMW! Automotive News reports that Fiat is looking to hook-up with BMW for future platform engineering and powerplants. In particular, BMW and Fiat may co-develop the next gen Fiat 500 and MINI. Considering the 500 is reported to be not the most phenomenal car to drive, this would be good news for the Italians. For its part, BMW realizes the importance of collaboration. The current MINI Cooper's 1.6-liter mill was co-developed with PSA Peugeot-Citroen, which also makes a home in a number of small French car-things. And BMW has declared that future BMW branded 4-cylinder engines will be shared with PSA. So how long is it, really, before there are just two car platforms in the world: one RWD, one FWD, with 30 different badges?

CAW’s Basil “Buzz” Hargrove Gets Canadian Gong

Samir Syed — Thu, 03 Jul 2008 13:21:59 +0000

Amidst all the buzz surrounding controversial abortion activist Dr. Henry Morgantaler's elevation to the Order of Canada, you may have missed the fact that the same honour has been bestowed on long-time Canadian labour leader Basil Hargrove, or 'Buzz' as we know him 'round here. The Order of Canada is Canada's highest civilian honour. The National Post reports that Buzz was given the award for "his contributions as a labour leader who is respected on both sides of the bargaining table, and for his advocacy for equality and human rights in Canada and abroad." Though many will argue Buzz was intensely active in keeping Canadian labour costs artificially high, and thus, shares some responsibility for the current decline of Ontario's automotive sector, Buzz's long and illustrious careers remains one of great renown. From his humble beginnings as a Chrysler line worker, to his soldiering for the then-CAW leader Bob White in the 80s, to obtaining his own mandates as leader since 1992, Buzz was instrumental in every major CAW negotiation for the last twenty years. History will judge Hargrove harshly, though, for the closure of GM-Oshawa and the decline in the CAW's bargaining power during his reign.

Outlook’s Not Good for Acadia. Or GMC.

Frank Williams — Mon, 30 Jun 2008 16:36:38 +0000

When GM announced the Traverse, they insisted the new Chevy was different enough from the GM's three Lambda-platformed CUVs that it wouldn't cannibalize sales. It looks like they were right; there won't be anything left to cannibalize. GMINsidenews is reporting that neither the GMC Acadia (the best-selling Lambda flavor) nor the Saturn Outlook (the worst selling) will make the cut. That'll leave only the Buick Enclave and the Traverse to carry the Lambda Gen 2 banner. GM's answer to the slow-selling Honda Ridgeline, the Lambda SUT (due in 2011-2012) will also lose the GMC variant; the Chevy SUT will be GM's only entry in the almost-but-not-quite-a-pickup-truck market. All this leaves only one new GMC product in the pipeline: the GMC version of the Pontiac version of the Chevy version of the Theta CUV (Equinox). Clearly, GM's decided to starve GMC to death. The question is: do they have enough time?

Volkswagen to Make it Simple Stupid!

Justin Berkowitz — Wed, 25 Jun 2008 14:17:36 +0000

Parlare con CAR, VW design guru Walt de'Silva admits he isn't exactly thrilled about VeeDub's current design direction. Pensare? The Jetta looks like a Corolla and the Passat looks like a bar of soap. So VW’s styling will "return to simple design language that’s easy to understand - a clear hierarchy of grilles and rear-end treatment." Scribe Adam Towler says "Expect the next generation of VWs to have spiritually more in common with the late 1990s range of cars rather than the current set." For those of us that have long lamented the descent of VW into aspirations of ascent, this is fantastic news. The biggest question: where will this makeover leave the Volkswagen brand in the European market? When Ferdinand Piech decided to take VW into Mercedes territory, matching the Mercs models for model, Skoda and Seat filled VW's cheap and cheerful, honest and robust, everyday car remit. Maledetto! It sounds like someone has too many brands.

Wild Ass Rumor of the Day: Mahindra (and Mahindra) to Buy Hummer?

Frank Williams — Mon, 16 Jun 2008 19:08:47 +0000

As Mark Phelan pointed out, GM would dearly love to unload the unloved HUMMER brand on some overseas ~~sucker~~ investor. The rumor mill is gristing the idea that India's Mahindra and Mahindra may scarf the tree hugger's least favorite vehicle of all time, ever. It seems only natural; the company's been building the AXE, a Humvee knockoff, for the Indian Army. Just-Auto cites an anonymous "senior official at M&M" who told them "Mahindra is very keen on acquiring the Hummer, because of many reasons, but I can't go into all of them but for one it is the most seen vehicle on TV in any country, these days at least the military version of it. It is still too early to talk of prices and timeframes but we are in the process of designing a civilian version of the Mahindra AXE and owning the vehicle it was modelled [sic] after would make a lot of sense." Not only that, HUMMER would give them a well-known premium brand to compete against rival Tata's recent Land Rover acquisition. Analysts think the HUMMER brand could put about $750m into GM's coffers. Or not.

Humbled Hummer Hearts Hope

Edward Niedermeyer — Mon, 09 Jun 2008 19:50:10 +0000

They say hope dies last, and GM's damned-to-strategic-review HUMMER brand certainly doesn't have much else to run on. Accordingly, HUMMER GM Martin Walsh has posted a reality-efficient, truth-sipping take on his brand's beleaguered fortunes to GM's Fastlane blog, utterly confirming that website as the place bad spin goes to die. Anticipating "speculation" about HUMMER's future, Walsh wants us to know that in his opinion, "the HUMMER name, and it's line-up of iconic vehicles, will still be purchased and enjoyed by customers around the world." In fact, Walsh seems to think the overseas market will rescue HUMMER. "Outside the US, where the world has been living with high fuel prices for the past decade, 2008 sales through April were up 34.8% compared to 2007." Yes, well, as Bloomberg reports, these sales spikes are the result of recent introductions of the brand to countries like Japan, complimenting a steady trickle of sales from gas-subsidizing countries like China and Russia where HUMMERS are still nouveau-riche icons. Walsh trots out every possible reason to think HUMMER isn't completely effed-- truck mags love HUMMERS, there's a HUMMER biofuel concept, etc. He finally concludes that he "wholeheartedly believes that HUMMER can have a bright future." So is Walsh trying to stimulate pity-purchases of H2 and H3s, or is this just brand inflation leading up to a sale to Mahindra or Tata? Or is this just empty reassurance to HUMMER dealers that their recent million-plus dollar GM-mandated dealership upgrades were not complete wastes of money? Hand the guy some jam. HUMMER is toast.

Listen to the Ferrari California. You may need a cigarette afterwards.

Justin Berkowitz — Wed, 04 Jun 2008 19:41:05 +0000

This is just prurient, base, vulgar car lust in action. I have no cutting analysis to offer you, no insightful realizations, not even a regurgitated press release from a manufacturer intent on wowing you with numbers. Nope, it's just the sounds of Ferrari's new California model. OK, a couple of stats. The engine giving pistonheads eargasms is a fresh 4.3-liter V8 with direct injection, making 460 horsepower, routed to a seven-speed dual clutch transaxle. I think the Ferrari California is a good looking model but it's not breathtaking, and the folding hardtop is the kind of embarrassing mainstream compromise that should be outside of Ferrari's brand profile. Nevertheless, it's coming. (Make your own damn pun.)

GM to Rebadge Korean Daewoos as Chevys?

Frank Williams — Thu, 22 May 2008 13:33:55 +0000

GM Daewoo (GMDAT) builds cars in South Korea, and then sells them as a number of different brands around the world. In most markets they're rebadged as Chevrolets-- in an attempt to make Chevy into GM's "global" brand (excluding the Corvette, which is a standalone brand in Europe). In South Korea, Daewoos are Daewoos. Blogging Stocks reports that GM is considering introducing the Chevrolet brand in Korea. If they do, what cars will they sell as Chevys? Do they change the "home team" GM Daewoo brand into an "import" brand? Do they introduce Daewoo-built models not currently sold as domestic models under the Chevrolet name? Or do they import cars built elsewhere to carry the brand? Who knows... maybe they'll introduce Korea to American full-sized pickups and finally have something to with that four-month inventory of Silverados they're sitting on.

Lexus Supercar to cost $200,000+

Justin Berkowitz — Wed, 21 May 2008 17:45:53 +0000

Edmunds' Inside Line quotes Lexus' corporate product planning manager as saying the price of the new Lexus' LS-F price will "begin with a 2." We're guessing the V10 supercar won't be $29,995. In honor of this news, I've hit up the thesaurus: brainsick, off, daft, absurd and whack. See also: dismal failure, stillborn. Newsflash to Lexus. You're not Ferrari. This won't be a performance halo car (reference Acura's NSX and the amazing effects it had on making people think the RL was sporty). Also, people buying summer Sunday cars for $200k aren't motivated by factors like "reliability," especially when this hand built carbon fiber monster will likely not maintain the brand's hallmark reputation for non-breakage and low maintenance. And, because I especially don't care for this LF-A supercar, here's a list of cars that cost half as much with better looks (extrapolating), heritage or fun: Porsche 911 Turbo ($135k), Nissan GT-R ($70k + ?), Corvette Z06 ($77k), Corvette ZR1 (estimated $100k), Ford GT (slightly used, $150k), Ferrari F430 ($175k), Aston Martin DB9 ($175k), and BMW M6 ($100k).

“But the reality was that we couldn’t actually achieve global integration because it was at odds with the image of our brands”

Jonny Lieberman — Fri, 16 May 2008 16:34:51 +0000

No, we're not talking about Tony Romo and Jessica Simpson's impending breakup. We're quoting directly from the mustachioed horse's mouth. The headline my friends, is none other than Daimler CEO Dieter Zetsche (Dr. Z to you and me) discussing why the 1998 "merger of equals" between Mercedes-Benz and Chrysler failed so miserably. To refresh your memory (in case your life is filled with more interesting activities than watching the disintegration of poorly planned global corporations)... Daimler sold Chrysler for billions and billions less than they paid for it to a hedge fund last year. Our favorite David Cross-lookalike CEO was speaking to gathered business leaders at a symposium about "Global Capitalism, Local Values" trying to explain exactly went so badly. He points to the level of cooperation between MB and Chrysler as being "less" than he would have liked. Dr. Z goes on to say that Daimler learned a valuable lesson. "It's fair to say that we overestimated the potential of passing leading-edge technology from Mercedes-Benz to Chrysler. Unlike premium brand customers, American volume brand customers are far too price-sensitive to absorb its cost." To which TTAC says, "Duh!" And of course, know thy brand.

BMW Commits Brand Sacrilege. Or Not.

Martin Schwoerer — Thu, 15 May 2008 12:14:48 +0000

Old fogies like me remember when BMW's GM-sourced automatic transmissions caused sturm und drang. Brand dilution! How can we Germans rely on a foreign competitor [at least in theory] for a key technology? So much for that. So why all the hubbub when BMW reveals they'll share engines with another carmaker? At last weekend's annual shareholder meeting, CEO Norbert Reithofer caused an uproar by announcing that the next-generation 1-Series will have a four-banger developed with PSA (Peugeot/Citroën). Reality check: BMW's MINI started life with a Brazilian-built Chrysler-designed Tritec engine. The MINI One D used a Toyota-built diesel engine. From November 2006, the MINI Cooper and MINI Cooper S models have been powered by a 1.6 litre engine co-developed by BMW and PSA Peugeot-Citroën. But propeller-heads don't want a Bimmer-badged car to mix genes with the French. The Financial Times Deutschland calls the move a "taboo breaker," while shareholders bemoan the brand's move from "class to mass." Ever the beancounter, Reithofer prefers to focus on saving money: "A car's engine is responsible for 25% of the car's total manufacturing cost." So that's alright, then.

GM Moving Opel Upmarket

Edward Niedermeyer — Tue, 13 May 2008 17:18:40 +0000

Automotive News [sub] reports that Opel is moving upmarket. It's GM's attempt to "democratize technology" and emphasize their Euro-brand's "traditional German manufacturing attributes." The new strategy is designed to move Opel away from its image as "the European Chevrolet"-- so that Chevrolet can become the European Chevrolet. "Opel and Chevrolet will be bookends with a clear position for both," GM-Europe President Carl-Peter Forster promises. "Over time, we will emphasize Opel's German heritage, engineering and design." But don't worry: GM plans to keep the German domestic affordable. "We are not talking about a premium price for Opel," Forster said, "but a one percent to three percent increase is foreseeable." Design, technology and image are all part of the brand touch-up-- not, Forster insists, a "reinvention." Yes well, Europe is facing a premium small car glut as Fiat, MINI and others seek full-sized profits from compact cars. With GM dependent on overseas sales to keep the wolf from the door, Opel had better hope this gambit pays off.

BusinessWeek’s Michael Frank Holds an “I-told-you-so-a-thon” for Saab and Volvo

Frank Williams — Thu, 08 May 2008 14:58:11 +0000

Has BusinessWeek been reading TTAC? Writer Michael Frank's assessment of Saab and Volvo sounds extremely familiar... Frank places Saab's problems right where they belong, stating GM "hasn't let Saab do anything creative, let alone steer itself in any direction other than toward total irrelevancy, for a good decade." But what's wrong with Volvo? "[L]ike famously angst-ridden compatriot filmmaker Ingmar Bergman, Volvo fears sexy... its slammed and ultra-turboed R-edition cars... are, for all intents and purposes, neutered and dead [because] Volvo is worried about fuel economy." The biggest problem for both, though: they've lost their brand distinction. As we've pointed out, Volvo no longer holds the upper hand in safety. Turbocharging is no long a Saab distinction. He wants something new from both automakers but concludes, "Oh, right, neither Volvo nor Saab has a new story to tell. And until they do, neither carmaker will have much of a future." To which all we can add is "Amen."

Kia Wants to Increase Its Brand Awareness

Glenn Swanson — Thu, 01 May 2008 19:12:28 +0000

Kia wants to cut back on its reliance on ye olde cash on the hood and increase its brand awareness in the U.S. To that end, the Korean automaker is launching a new ad campaign today that "continues to emphasize the thriftiness of its product line in times of escalating gas and food prices." BrandWeek reports that one ad shows a Kia Spectra in front of a gas station while a narrator proclaims: "Now, more than ever, you want to get the most for your money." And an ad for the Kia Sportage claims the CUV is priced "about $6,000 less than the Toyota Rav4 Limited; or, to put it another way, a whole year worth of groceries less." Kia's marketing director is suitably upbeat about the downbeat American economy. "It's not all doom and gloom; in fact we believe the opposite," says Tim Chaney. "People are still shopping for cars, albeit less than before, and we are in a good spot." Chaney took over as marketing maven back in February when his predecessor, along with CEO Len Hunt, "were let go." Time will tell if this new team can pull Kia's image out of the background noise.

“Certainly, the lessons of the past, we don’t forget them when we come here”

Robert Farago — Tue, 22 Apr 2008 16:22:19 +0000

Here being China. We being GM. The speaker being GM CEO Rick Wagoner. And yet... Automotive News reports that The General is deploying Ye Olde "A Car for Every Purse and Purpose" strategy developed by Alfred P. Sloan-- and then annihilated by every cash-grabbing, corner-cutting CEO since, sending the former world's largest automaker sliding towards bankruptcy. Never mind; it was implementation that killed the golden goose. "The China market also gives it a rare chance to try to repeat the business past with a happier ending for investors... GM introduced Chevy to China just three years ago after concluding its Buick brand was over-extended by a product line-up that had saddled it with everything from a minivan marketed as a kind of executive taxi to a cheaper hatchback. 'We could see Buick was being stretched,' [GM's head of Asian operations Nick] Reilly said." Uh, hello? Buick still sells the same product line-up in China as before. They've simply added Chevy (i.e. rebadged Daewoos). Oh, and Cadillac's in the People's Republic as well. What are the chances GM will show the same branding discipline in China that they've shown in the U.S.? And if it's good enough for China...

GM Excelles at Brand Dilution in China, Too

Justin Berkowitz — Mon, 07 Apr 2008 10:33:02 +0000

You know how awesome the GMDAT Suzuki Forenza sedan is? Unfortunately, we've never reviewed it here at TTAC, which is mostly due to our intimidation by the 127 horsepower engine. Still, the car has a real global role. In Canada (where it was recently discontinued) it was known as the Chevy Optra. In the UK, the Chevy Lacetti. And in China? It's a luxury car! The Buick brand, very strong in China, is offering this same car as the Buick Excelle, and they've just released pictures of a refresh. What a travesty that they would dilute the absolutely crucial Buick brand name in its only viable market - China - with a car like this. I spoke with Ash Sutcliffe of the China Car Times website, who responded to my brand dilution concerns as such: "...it could be that the Excelle is very cheap, and they feel that they are getting an American car for a Chinese price." In fact Sutcliffe says the price is in the heart of "first new car" territory. It's too bad that what's exciting for the first new car buyer is bad for the guy considering a Chinese Buick Park Avenue that costs 5 times as much as the Excelle.