Marketing

NHTSA to Toyota: Stop Lying About Floormatgate

The Brits have an expression for this situation: “When you’re in a hole, the first thing you do is stop digging.”

The National Highway Transportation Safety Administration (NHTSA) issued a statement today correcting inaccurate and misleading information put out by Toyota concerning a safety recall involving 3.8 million Toyota and Lexus vehicles:

A press release put out by Toyota earlier this week about their recall of 3.8 million Toyota and Lexus vehicles inaccurately stated NHTSA had reached a conclusion “that no defect exists in vehicles in which the driver’s floor mat is compatible with the vehicle and properly secured.” NHTSA has told Toyota and consumers that removing the recalled floor mats is the most immediate way to address the safety risk and avoid the possibility of the accelerator becoming stuck. But it is simply an interim measure. This remedy does not correct the underlying defect in the vehicles involving the potential for entrapment of the accelerator by floor mats, which is related to accelerator and floor pan design. Safety is the number one priority for NHTSA and this is why officials are working with Toyota to find the right way to fix this very dangerous problem. This matter is not closed until Toyota has effectively addressed the defect by providing a suitable vehicle based solution.

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Posted in Marketing | News Blog | Safety | 31 comments

Chrysler: Refresh And Market Like Crazy

Are you seeing a pattern here? Although Olivier Francois is in charge of the most damaged brand in the Chrysler Group (and yes, that’s saying a lot), at least he’s been here before with Fiat’s problem brand Lancia. So it’s no surprise that Francois’s branding video for Chrysler is remarkably similar to a Lancia ad: it projects a kind of sophisticated sexyness, with lots of celebrities, architecture and passionate-sounding classical music. The only real difference is the copy that goes on and on about the good old days when Americans arrived in style. And unlike Ralph Gilles’ Dodge presentation, Francois’ vision of Chrysler’s brand actually works. But vision is only a tiny part of the battle for the Chrysler brand, and the rest is execution. On that front, things aren’t looking quite so good

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Posted in Branding | Marketing | News Blog | 12 comments

Dodge Versus Ram Case Study: Nitro

The problem with branding exercises like Chrysler’s decision to split Ram from Dodge, is that they tend towards abstraction. Luckily, the back-from-the-dead Nitro is a good case study for how this split will play out. You might think that based on its aggressive styling and upright stance that it would make sense as a Ram-branded vehicle. But you’d be wrong. It will actually be positioned as a youth-market vehicle, within the Dodge brand. Hit the jump for an official concept of the Nitro’s possible repackaging.
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Posted in Branding | Marketing | News Blog | 31 comments

Hi, My Name Is: Ram

Ram is brand. According to the new Ram CEO Frank Diaz, the Ram was “overshadowing” Dodge’s non-truck products… never mind that Dodge’s truck-cued car styling made that phenomenon unavoidable. There’s not much to say about the new Ram brand, except that it will include pickups, heavy-duty trucks and commercial vehicles (read: no SUVs), marketed with the usual John Wayne, hard-working, never quit attitude. Think of any truck ad you’ve ever seen, and you’ll understand everything there is to know about Ram’s branding.
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Posted in Branding | Marketing | News Blog | 28 comments

Dodge Marketing Explained. Sort Of.

This is the interior of the Dodge Caliber that’s currently on sale in the US market. Not particularly attractive, is it?
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Posted in Branding | Marketing | News Blog | 38 comments

Dodge: Refresh and Market Like Hell

Dodge brand boss Ralph Gilles has made his presentation on the future of the Ram-head brand. First up: it’s not the Ram-head brand anymore. Beginning next year, Dodge will be represented by the word “Dodge” in black with red accents. According to Gilles, the de-Ramification of Dodge was due to the fact that trucks were dominating brand perceptions. “Mojo” seems to be Dodge’s new buzzword du jour, along with the tagline cool × fun=Dodge. In addition, Dodge will be getting away from the “base, mid, high” trim level ladder to a “lifestyle-based” trim level system. In the future, Dodges will be available in the following trims: “sweet and simple,” “fun and practical,” “uptown luxury,” “thrill seeker,” and “cool extroverted.”

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Posted in Branding | Marketing | News Blog | 45 comments

Former GM Economist: Detroit Ignored Demands For Efficiency

Walter McManus, former GM economist and current head of the Automotive Analysis division of the University of Michigan Transportation Research Institute, wants you to know GM’s SUV strategy of ignoring efficiency as a marketing input was his fault. In an interview with Energy and Environment News [via Edmunds Green Car Advisor], McManus explains how surveys in the 1990s showing consumers did care about efficiency were ignored:

The survey would estimate that people would estimate fuel economy fairly highly. Being a good economist, I said, ‘No, they don’t,’ and I changed the results. There was a systematic bias against such results. Our job was not to seek the truth, but to justify decisions that had already been made… It’s my fault they had the wrong vehicles until now

Can you say culture issues? McManus’s explanation for the insular attitude is a familiar refrain, namely that decisions “are being made by upper-middle-class white males, by and large. They don’t understand that the customers are not the same as they are.” Now that gas prices have made efficiency impossible to ignore though, McManus sees change coming.

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Posted in Fuel Economy | Marketing | News Blog | 25 comments

Shock! Ford Showcases Modded Mustangs at SEMA

The Ford Mustang is not only Autoblog’s meat and potatoes, it’s also America’s most modded machine. Turning the relatively demure ox-cart suspended pony car into a overwrought, overpowered death car is big business. As our Best and Brightest know, the Las Vegas SEMA show is the temple of VTEC—I mean, modded motors. This year, Ford is sponsoring the show and bringing the noise (or whatever the current colloquialism may be). They’ve sent the usual herd of free ‘Stangs to the tuners with the inevitable results. White wall tires are in again? Who knew? “SEMA is important to Ford,” said Brian Wolfe, director of Ford Racing. “It’s not only about making great cars, but for those enthusiasts who want to take their cars beyond what manufacturers build.” So does that mean that people who take their cars beyond what manufacturers build are not making great cars? Perish the thought.

Posted in Marketing | News Blog | 7 comments

Ram HD Strategy: Preemptive Incentives

It’s 2009, and Chrysler Group is still hugely dependent on Ram sales to keep dealer volume flowing. Not that there’s anything wrong with pickups per se, but dependence on a shrinking market (down 34 percent year-to-date, compared to 27 percent reduction for all light-duty vehicles) is never a good thing. Cutting into profits to keep your share of said declining market is even less of a good thing. And yet Chrysler is planning on doing just that, cutting starting prices on 2500 and 3500 Heavy Duty Rams by $1,970. According to Automotive News [sub] Ram 2500 regular cab 4×2 with a 5.7-liter Hemi V-8 will start at $28,165, including shipping for the 2010 model year, despite offering more equipment than the outgoing model. Why? In a word, desperation. “There’s not a lot of strength in Chrysler’s portfolio right now, so they’re trying to give it its own identity,” says Edmunds Editor Karl Brauer. Except that “won’t sell unless they’re discounted to the hilt” was already part of the Chrysler portfolio’s identity. The only difference with the Ram is that it might just sell. As Cash-for-Clunker-era sales results prove, even huge rebates (on top of record manufacturer incentives) don’t do much to move Chrysler’s moribund car lineup. So why not try massive discounts on massive Rams?  How much worse could (will) it get?

Posted in Incentives | Marketing | News Blog | 7 comments

Quote Of The Day: Extension Cords Bad, Home Inspections Good Edition

Aldo: Hi Mr. Posawatz. I will be buying a Volt and wanted to know if an extension cord could be used to increase the reach for recharging, or if we are going to be limited to the length of the cord that comes with the car. Thanks!

[Chevy Volt Vehicle Line Director] Tony Posawatz: The EVSE or charge cord will be about 25 feet and designed to all relevant codes. We do not recommend extension cords but rather that when you have your home inspection, you reposition your outlet/charging station approproiately [sic].

From a recent Fastlane livechat on the Chevrolet Volt, ironically titled “Making Electric Vehicles Attractive to Consumers.” Which would you prefer?

Posted in Electric Vehicles | Marketing | News Blog | Quote of the Day | 30 comments