Anecdotally, it seems like almost everyone has had one of the “your vehicle warranty is about to expire” robo-calls sometime in the last year or so. Hopefully a civil suit by the FTC will cut back on some of the annoyance. Fox News reports that the scheme, allegedly perpetrated by Christopher Cowart, James and Maureen Dunne, and Kamian Kohlfeld, netted $10 million in fraudulent income. The scheme reportedly violated the Federal Trade Commission Act by misrepresenting or omitting material facts in their sales pitches, and that they violated the Telemarketing Sales Rule by “flatly ignoring” rules that prerecorded calls disclose the identity of the seller “promptly, and in a clear and conspicuous manner.” Read the whole sordid story at Fox to hear how these charming characters are trying to pass blame off on each other. And remember, there’s a special place in hell for people like this.
Category: Customer Relations
Ousted Tesla founder Martin Eberhart pens a paean to the blogosphere over at Tendo Communications‘ blog, arguing (among other things) that “blogging promotes transparency and builds credibility.”
“For blogging to ring true, it needs to be more than an exercise kept up for the sake of appearance. At Tesla, we began with my blog, which provided direct access to the company’s co-founder and CEO. From there, we expanded into a multi-channel approach until we had separate blogs for marketing/sales, engineering, and notable thought leaders/customers. So whether people had questions about the design of a component, the marketing of the Roadster, or what motivated folks to submit deposits, they could expect a straight answer right from the horse’s mouth.”
Unless your CEO happens to be a horse’s ass. Because if your CEO (Elon Musk) runs around spouting nonsense (via CNET) like “a Prius is not a true hybrid, really,” and “I’d like to take up some of [Detroit's] manufacturing plants. When the mess gets sorted out I’d like to have a conversation with whoever’s in charge,” blogs and bloggers tend to not be so helpful in the “building credibility” department.
This spot (which cribs the Allman Brothers tune that gearheads will recognize as the Top Gear theme) is part of what AdAge describes as the repair chain’s effort to attract customers from closing dealerships. After all, the service department is often where the real money is made at dealerships, and the race to snag shuttered dealerships’ business is on. Automotive News [sub] reports that CarsDirect is even offering free 60-day online listings for any dealership that is going out of business. “We hope this offer helps dealers sell more cars as they work to stay in business and remain fixtures in their communities during the transition,” says CarsDirect VP Ken Potter. Not to mention a little free publicity that comes with the charitable territory. Meanwhile, how are GM and Chrysler shoring up their PR after the nasty dealer shutdown debacle? According to a WaPo analysis, Chrysler is emphasizing product competitivity (huh?) and GM is emphasizing restructuring (why?). So much for putting the best foot forward.
According to a recent Rasmussen poll, 26 percent of those surveyed support the GM bailout. Yes, but 53 percent describe the bailout as a “bad idea,” and of that majority of respondents, 30 percent of those support a boycott. The idea of boycotting a government-owned GM was most popular among men and middle-income respondents. Also, 51 percent responded that they are “more likely” to purchase a Ford because the automaker has not received government funding. If popular sentiment is so set against GM and the bailout now, imagine what it will be like after a few years of government ownership. Especially if this anti-bailout attitude is affecting sales along the way. Fills one with hope, doesn’t it?
GM’s Fritz Henderson is trying on a paler shade of transparency over at ye olde Fastlane blog. With results that defy this blogger’s adjective collection. When asked whether the “new GM” should continue to employ the thousand authors of GM’s failure, Henderson replied with self-serving equivocation. “If I was starting a new company, which we are in fact, I would start with a blend of people that have been involved in winning businesses and outstanding people that learn from their failures. At least for me personally, I have been involved in both.” Well, isn’t that convenient? OK, Henderson, “what do you think is the most important change that needs to be made in GM’s corporate culture?” Modesty prevents even us from posting Henderson’s reply before the jump.
Shark number one is Ford, which is making a concerted effort to steal sales from its cross-town rival. Automotive News [sub] reports that Ford is rolling out a regional incentive program aimed at existing Chrysler owners. Ford is offering Chrysler owners an additional $500-$1,000 on the purchase of a new Ford to owners of Chrysler vehicles older than the 2006 model year who have had service work done at Ford dealerships in the past three years. However, Ford is keeping the program as targeted and low-profile as possible. “We’ve been very cautious and certainly not predatory with regard to this,” say Ford spokesfolks. Which is smart. Domestic buyers seem to prefer other domestics, and Ford can only benefit from the uncertainty surrounding the other Detroit firms. Still, Ford should probably consider sending Chrysler owners an update on ChryCo’s attempt to welsh on its legal liability. Meanwhile, Automotive News [sub] reports that Ford is increasing production, as it angles for Chrysler’s declining market share. Toyota is, too, says AN [sub]. Let the feeding frenzy begin!
The NYT Wheels blog reports that Judge Arthur Gonzalez has overruled pleas by consumer advocates and law professors by granting Chrysler’s request to exempt “New Chrysler” from any liability arising from “Old Chrysler.” Public Citizen, the Center for Auto Safety and Consumers for Auto Reliability and Safety have formally objected to the move on the grounds that current owners of Chrysler vehicles will have no legal recourse if they are injured because of a product defect. A lawyer representing these groups has said they will seek an appeal, the second objection to date to the Chrysler asset sale. According to testimony by Robert Nardelli, the idea of not allowing current owners to sue came up during the discussions between the Treasury and Fiat. Unlike the State of Indiana’s appeal of the Chrysler asset sale, this appeal has the potential to completely change the incentives for Fiat to take over Chrysler. If an appeals judge hears and approves this objection, Fiat could simply walk away.
Well, that’s how the Freep puts it. So will GM be leaving the toilet seat down? Will it apply for a separate credit card to pay for its extramarital liaisons? Will it be hiding its Playboy inside the latest Economist? Want to clear this up for us, CFO Ray Young? “As a privately held company, it’s likely we’re not going to disclose information except to the shareholders,” says Young. “We do not have to file all of the same documents that we do when we are a public company,” clarifies Chairman Kent Kresa. All of which creates more mind-benders than Will Shortz on a weeklong acid bender.
Chalk up another reason why Chrysler should have been allowed to fail. The New York Times reports that if Chrysler’s restructuring is approved it would allow the automaker to evade liability for injury-causing defects on its vehicles. An Automotive News [sub] write-up of Chrysler’s creditors reveals that the Ad Hoc Committee of Consumer-Victims of Chrysler LLC consists of 150 members seeking an estimated $650 million in damages allegedly caused by Chrysler vehicle defects. Under current reorganization plans, those creditors would be left with no recourse after Fiat assumes “good Chrysler’s” assets.
Toyota’s third-generation Prius hybrid launches in Japan on Monday, with a European rollout scheduled for July, and already they firm has amassed 75k pre-orders worldwide. Of course, Toyota won’t confirm the number, which originated in a Nikkei report printed in Automotive News [sub]. Honda’s Insight has already become Japan’s top-selling car, the first hybrid to hold such a title. And all this despite oil and gas prices that are significantly weaker than a year ago. But, as GM is currently proving, pre-orders can sometimes be more trouble than they’re worth.










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