Fiat Five Year Plan: Cars Stay, Trucks and Tractors Go

Much of the speculation in the leadup to Fiat’s five year plan announcement centered on a long-rumored spin-off of Fiat’s auto business from the rest of the industrial conglomerate. Speculators even drove up Fiat’s share price considerably yesterday on hopes that the long-awaited spin-off would be announced today. And sure enough, Fiat did announce today that it would be spinning off part of its business. The only problem, according to Automotive News [sub], is that the newly-formed unit isn’t made up of Fiat, Alfa and Lancia, but Iveco and New Case Holland. Instead of its car operations, Fiat is bundling off its heavy commercial truck and tractor business into a new entity known as Fiat Industrial S.p.A. (Fiat-branded light commercial vehicles and Fiat Powertrain will remain behind).

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Fiat Five Year Plan: Alfa-Romeo Lives, Coming To America.

The last ten years have not been kind to Fiat’s Alfa-Romeo brand, as 2009 sales levels fell to about half their 2000 volumes. Having put Alfa on “strategic review” and stuffed it into a “brand channel” with Maserati and Abarth, CEO Sergio Marchionne has had a change of heart, and is now “determined” to build the brand into a “full-line premium carmaker.” According to Automotive News [sub]’s coverage of Fiat’s five year plan presentation, that means committing to a US presence targeting 85,000 annual sales by 2014. For a sense of scale, the Alfa brand sold a grand total of 103,000 units globally last year. And Alfa is going to have to kick ass around the world to meet Sergio’s goals. By the time Marchionne expects American Alfisti to buy 85k units each year, he wants the brand’s global sales to have increased nearly five-fold to half a million units. Ambitious doesn’t even begin to describe it…

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Fiat Five Year Plan: More Profit From Ferrari, Cheaper Maseratis

Given Ferrari’s pricing politics, it seems safe to assume that Ferrari/Maserati is a fairly profitable enterprise for its 85 percent owner, Fiat. Indeed, with over $2.5b in combined revenues last year and an 11.5 percent operating margin, the Italian sportscar brands aren’t exactly dying of economic downturn-related causes. But at today’s presentation of Fiat’s five year plan, CEO Sergio Marchionne revealed that his firm has big plans for Ferrari/Maserati, and gave unprecedented planning details as proof of the brands’ path towards even greater profitability.

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Ask The Best And Brightest: Is Toyota The New Buick?

On point as always, TTAC commenter ajla called it in today’s Camry review. In the comments after that tale of suburban anonymity and “the Marriot of cars,” he asked:

Wouldn’t you really rather have a Buick?

I figure Toyota thinks that, in their heart of hearts, many Americans do still want a Buick. Not an actual Buick, mind you, but a big, comfortable sedan that’s somewhat luxurious but not at all flashy. Over a year ago, I made the friendly recommendation that Buick ditch its explicitly youthful marketing message for “something along the lines of Canadian Club’s “damn right your dad drank it,” campaign.” This spot for the new Avalon probably comes closer to what I had in mind for Buick than anything I’ve seen since. The question then, isn’t so much “is Toyota the new Buick?” as where is Buick going to find its own niche? The wreckage of Acura?

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Senator Investigating The Death Of HUMMER

HUMMER fans have a new champion in Illinois Senator Roland Burris, who has agreed to investigate GM’s shutdown of the SUV brand according to Hummerguy.net. Attempts to keep the HUMMER brand alive are being fielded by Capital & Labor International Coalition, a recently-founded fund management firm created by Thane Ritchie, founder of Ritchie Capital Management, as well as failed HUMMER bidder Raser Technologies and The Electric Motor Corporation. According to Hummerguy,

CLIC is hoping for an “acquisition by coalition,” which would involve cooperation with private capital and U.A.W. resources. Union representatives from both HUMMER production facilities were on hand to hear the plan and are running the idea up the chain of command to the International U.A.W..

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What's Wrong With This Picture: Your Money's No Good Here Edition
Surely there was another brand that GM recently cut while saying it would support its former customers… was it LaSalle? Geo? Wait, no, it started with…
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BMW Holds Off Audi, Remains Top Premium Brand In Q1

Forgive Audi a little hubris. As Bertel Schmitt has explained, mere decades ago “the brand was thought ideal for high school teachers or tax collectors, who kept their hats on while driving.” To now be figuring in the nightmares of Daimler bosses clearly juices up the marketing staff no end. And though Audi may have won that MT comparo referenced in the ad above, BMW has held off the upstarts for at least one more quarter in the “friendly competition” over global sales numbers.

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Is Buick Backsliding In Its Quest For Younger Buyers?

Over a year now, the launch of Buick’s new LaCrosse gave us pause to consider the average age of Buick buyers, and the future of the brand’s demography. At the time, The Detroit New claimed the average age of Buick buyers was 63, a fact that gave the paper cause to celebrate Buick’s new lease on life. And considering that the brand once attracted buyers of an average age of 72, that wasn’t a bad trend at the time. Today’s DetN has a similar story, lauding Buick’s newfound youthful appeal with such quotes as this one from IHS Global Insight’s Aaron Bragman:

They are making definite improvements in the U.S. To kill Buick would have been crazy. It’s one of the most important brands in the Chinese market…. It’s still too soon to really come to a verdict on how Buick is doing in the U.S. But nobody can say those are old person’s cars anymore. Because they aren’t.

But this latest round of Buick-boosting is still based on the old reference point of a 72-year-old average buyer demographic. Compared to a year ago, Buick’s average buyer age appears to have crept back up again, as the Detroit News cites a current average demographic of 65.

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Saab-Spyker Is A Hot Mess

Where to start with Saab-Spyker CEO Victor Muller’s plans for world domination? Why not with the craziest part? Despite declining sales, the boutique supercar arm of Saab-Spyker claims to be developing a “Super Sport Utility Vehicle” in the mold of the D12 Peking-To-Paris showcar. Autoinformatief.com caused quite a stir when it revealed images of both a clay model and a test mule for this allegedly production-bound (yes, again) piece of madness. Moreover, news that Spyker won’t be invited to use Audi engines in forthcoming models caused at least one popular car blog to run the headline “Spyker’s New Ferrari-Powered SUV.” Because apparently Spyker can’t decide if it wants to use an AMG engine or a “supercharged Ferrari V8.” Does this give you a taste of just how goofy things have become ’round Saab-Spyker way? Well, it gets worse.

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Ask The Best And Brightest: Is The Renault-Nissan-Daimler Deal Smarter Than The Smart Brand?

As analyst comments on the freshly-announced Renault-Nissan-Daimler deal come in [via Automotive News [sub]], a consensus seems to be building around the notion that the tie-up offers few real advantages to the three firms outside the real of small-car development. The financial impact and opportunities for luxury-segment component sharing are constrained by the deal’s structure, meaning the stock-swap and attendant hoopla are little more than window-dressing for the real project: developing compact and subcompact cars for tomorrow’s C02 standards. As Bertel noted, rumors of a Daimler-Renault tie-up have always centered around the Smart brand, and today Daimler’s Dieter Zetsche told Automotive News [sub] that

We could not have found a feasible basis alone for the next-generation Smart family… Of course, we could do a next-generation Smart alone, but we would lose a lot of money

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Contemplating The Cadillac Future

I had the opportunity to visit with the Cadillac folks at a Pre-New York Auto Show Reception in West Village. It was a tasty cocktail gig with a trio of V-series models (CTS Sedan, Wagon and Coupe) available for closer inspection. Though nobody actually sat in them. But that’s not the point: marketing and re-branding the product was the topic of conversation.

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Quote Of The Day: Revisionist History Edition
Inspired by the Volvo-Geely deal, Automotive News Europe ’s Luca Ciferri contemplates the unthinkable:Back in 1986 Ford offered to buy nearly 20 perce…
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Wild Ass Rumor Of The Day: BYD After Maybach?

Chinese site auto.sina.com [via thetycho.com] has a belly-laugher of a wild-ass rumor: they say BYD has its eye on Daimler’s zombie luxury brand Maybach. The rumor is clearly based on the fact that BYD and Daimler recently closed a cooperation deal, in which they will jointly build vehicles in China for sale under a new brand name. But beyond that, there’s not much to go on. From what I can tell from the Google Translate version of the story, auto.sina.com seems to have an anonymous source in BYD that on March 23 divulged:

BYD is on the matter and approached Daimler, Daimler announced soon abandoned the brand, BYD Auto will soon be underway acquisition action.

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What's Wrong With This Picture: Six Of One, Half Dozen Of The Other Edition

Buick’s LaCrosse is dropping its little-loved 3.0 V6 base engine in favor GM’s direct-injected 2.4 liter four-banger, probably so it can use the magic term “3o MPG highway” in forthcoming marketing. The downsides? You mean, besides having to move over 4,000 lbs with a 182 hp, 172 lb-ft engine (compared to the 3.0’s 255 hp, 217 lb-ft)?

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Quote Of The Day: The Nightmare Continues Edition
BMW has filed trademark registrations for a series of new car names. According to reports, the names registered include i1, i2, i3, i4, i5, i6, i7, i8, i9 an…
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GM Approves Cadillac XTS For Production, Lincoln MKS/Taurus SHO Benchmarked?

Motor Trend reports that Cadillac’s long search for a flagship is over. After debating a number of options, including importing a stretched Chinese-market STS, GM has decided that the “Super Epsilon”-based XTS will be the future range-topper for its luxury brand. The XTS was developed on a stretched version of the platform that underpins GM sedans including the Buick LaCrosse, Chevy Malibu and the forthcoming Buick Regal, and was shown in concept form as the XTS Platinum concept at the Detroit Auto Show. That concept was shown with a theoretical plug-in drivetrain made up of Cadillac’s 3.6 liter DI V6 and the plug-in components from the canceled Vue plug-in, and according to MT, the recent cancellation of the Converj plug-in means “there’s profit and green image to be had in the plug-in XTS.” Until that technology is production-ready, choosing the XTS’s engine options will be an interesting challenge.

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Infiniti Version Of Straight-To-Rental Nissan Leaf Planned

One of the biggest conundrums facing the folks tasked with marketing the forthcoming first generation of mainstream electric cars is branding. On the one hand, firms want their mainstream brands associated with the green halo of having an electric car in its portfolio. On the other hand, electric cars aren’t cheap. From a pure pricing perspective, it makes more sense to brand expensive EVs as luxury products. GM struggled with this problem when it developed its Converj version of the Volt, ultimately deciding that the common-sense arguments for branding the $40k Volt as a Cadillac weren’t as important as boosting Chevy’s profile with an EV offering. Nissan, meanwhile, has decided that it has room for both a Nissan-branded Leaf EV and an Infiniti-branded luxury version.

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GM Chases A Buck Carroll Shelby-Style

Over the weekend I penned a screed calling baby boomers to task for embracing retro style over the the values that made the revolutionary cars of their era so revolutionary [editor’s note: there’s nothing like having a carburetor on your 35 year-old motorcycle magically fix itself to inspire faith in old, simple machinery]. The new New Beetle was square in my crosshairs over the weekend, but it’s hardly the only example of boomer retro-madness. Another favorite for nostalgic boomers are the legendary muscle cars that marked the high-water point for Detroit thunder, and this feverish demand combined with limited original runs have run the prices of famous muscle cars into the Barrett-Jackson stratosphere. It’s also inspired a legion of knock-off and replica manufacturers, who see huge money to be made by aligning supply with demand. They, in turn, have inspired a number of huge lawsuits from the original creators of the limited-edition legends. Carroll Shelby’s prolific legal battles against creators of Cobra replicas have given him the reputation of being a guy who never met a buck he didn’t like, and now GM has joined the Shelby legacy, suing Mongoose Motorsports for daring to produced replicas of the 1963 Corvette Grand Sport roadster.

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Bend Over: PSA To Change Name

PSA, Europe’s second largest car maker after Volkswagen (14.9 percent and 20.8 percent market share respectively in February 2010, as per ACEA) considers changing their name, says Bloomberg. There are several choices on the table, the front-runner appears to be …

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Volvo-Geely Deal: Trouble In Paradise?
We’re ready to seal the deal. If the deal fails, the problem is not on our side. We have not violated any part of the agreement. The situation is chang…
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McLaren Automotive: Racing Is Easy, Selling Cars Is Hard

Let’s face it: it’s not the best time to be launching any new automotive brand just now, let alone a brand built in Formula 1 and offering only a single, $250,000 product. Throughout the industry, OEMs are abandoning or distancing themselves from motorsport, as the old “win on Sunday, sell on Monday” logic proves to be an ever-fading anachronism. And yet here is McLaren Automotive, launching its first new road-going supercar in over ten years, with the the help of two F1 champs. Can an automotive brand survive selling high-priced symbols of racing prowess, at a time when racing (particularly Formula 1 racing) is becoming ever-more divorced from road car realities? More importantly, can it take on the lions of the supercar world with mere techno-wonkery?

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The Art Of Alfa Romeo
Alfa Romeo has launched an official fine art collection, which can be found at www.alfaromeoart.com. With their gracious permission, we bring you this select…
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They Live!: GM Adds Saturn Outlook and Vue To Zombie Production Roster
We knew that production of HUMMER H3 and H3Ts was continuing, as an unnamed fleet buyer has ordered the final batch of 849 units from GM’s Shreveport p…
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This Is What Happens When Sportscar Companies Stop Building Manual Transmissions

Or is it the other way around? Based on the latest readings from our official TTAC losing-the-plot-ometer, Porsche is still at least ten years away from matching this spectacular achievement in short-sighted brand narcissism.

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Quote Of The Day 2: Fold On Sunday, Market On Monday Anyway Edition
We still own the Ralliart name, and we still intend to brand our cars with it. The biggest change for us is that we won’t have to pay royalties to use…
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Requiem For A Dream: Maybach To Fold After One Last Facelift
Remember Maybach? With eight years and untold millions now spent in a futile attempt to dethrone Rolls-Royce at the tope of the automotive pecking order, it…
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Detroit's Small-Town Luxury Lament

It’s a little-known fact that nearly half of the 2,000 or so dealer franchises that GM began winding down during bankruptcy were Cadillac stores, most of them located in rural areas. The General’s plan was to focus Cadillac’s dealer network on standalone stores in major metropolitan areas, following the strategies of more premium luxury competitors like BMW and Lexus. But having marked 922 largely small-town Caddy dealers for death, GM saw 2009 sales of its luxury brand fall 15 percent, or twice the rate of Buick and Chevrolet in the same period. The lesson: small-town Cadillac dealers (like attempts to sell the brand in Europe) are worthwhile after all. Automotive News [sub] reports, the majority of those dealers being reinstated are small-town Cadillac dealers. Will Cadillac’s brand integrity suffer by having to serve the small-town American market as well as competing with the European brands? Probably, but at least Caddy dealers can take heart knowing that things could still be worse: they could be Lincoln-Mercury dealers.

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May Chevrolet's Best Tagline Win

In a recent Fastlane livechat, GM’s North American boss Mark Reuss revealed that:

Chevrolet re vamp in ads is well under way with Susan Docherty–you will like it a lot–shows the car, and uses “excellence for everyone”….you will really like it.

When asked if he was saying that “Excellence For Everyone” would be the new Chevrolet tagline, Reuss replied in the negative. Which makes it… a pickup line? Just a line? With “May The Best Car Win” having failed to make much headway, and “American Revolution” a pre-bankruptcy artifact, it wouldn’t be surprising to see this “Excellence for Everyone” briefly become Chevy’s main tagline. If only to give Reuss and Whitacre an excuse to fire Docherty when the campaign collapses under the weight of its own vacuity.

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Cadillac: What Is This GM You Speak Of?

In 1989, Toyota launched a new luxury brand that would go on to largely replace Cadillac as a vernacular term for excellence in luxury. Known as Lexus, this brand has spent the last 20 years making headway in the US market without ever publicly associating itself with its parent brand. Could this strategy have contained a lesson for the brand managers at GM who have spent the same 20 years fretting (or not) about declining Cadillac sales? Apparently so, as BusinessWeek reports that Cadillac is distancing itself from the corporate mothership in hopes of improving Cadillac’s aspirational appeal. And yet, strangely, it’s still not clear that the lesson has actually been learned.

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HUMMER Production Restarted. Yes, Really.
The Shreveport Times reports that GM will restart production of the HUMMER H3 and H3T starting April 12, for a batch build of 849 units. An unidentified &ld…
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Geely Has The Cash For Volvo… So Where's The Deal?

Reuters (which has been all over the Volvo-Geely deal) reports that Zhejiang Geely Holding has money “in the bank account,” to purchase Ford’s Volvo brand, citing Swedish press reports. And yet, despite having reportedly given Ford guarantees about the financing of Volvo’s business plan, and scheduled a formal deal signing for last month, a deal has yet to emerge. Last week, Geely’s chairman Li Shufu told Reuters from the sidelines of the National People’s Congress in Beijing that “we haven’t reached a final agreement so far,” but “everything is moving as planned.” Geely has also been talking up its “only one foreign brand” strategy and “new energy” car plans, while Volvo reps tell AM Online that a deal will be done by March 31 and that Chinese market access will save the brand [via The WSJ [sub]]. In fact, the only party involved that’s not issuing a steady stream of PR about the upcoming deal is Ford. Could the Blue Oval be getting cold heels?

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Saab-Spyker's Success Plan: New Cars, Cheaper Cars, And More Outlandish Cars

With Russian financiers offering up to $100m to back the new Saab-Spyker project, it’s not surprising that the internet is awash with glad tidings of new cars from the new Dutch-Swedish venture. On the Saab side, CEO Victor Muller and company are teasing analysts with news that Saab is “already working on plans” for a new compact car, tentatively named 9-1. Having quoted Muller as saying the 9-1 had a “better than average chance”of being built (whatever that means), Automotive News Europe [sub] filled in the blanks:

[The 9-1] would be needed to help achieve Saab’s stated goal of closing the gap with BMW and Audi. Saab debuted a concept for an entry-premium car at the 2008 Geneva auto show. ANE sister publication AutoWeek named the 9-X BioHybrid the best concept at that year’s event.

First of all, nice pimp there guys. Also, too bad the guy who led design on the 9-X BioHybrid (and most Saab design work of late) has gone to work for Renault. Especially considering the rumors are swirling that a deal already exists for GM to supply Opel Corsa components to Saab for the vehicle, which would theoretically debut in 2013. Even though the 9-1 is not part of the as-yet not completely funded $1b development program announced by Saab, meaning more money would have to be raised to go beyond Muller’s current in-house scribblings.
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What's Wrong With This Picture: The Pieces Fit But We're Still Puzzled Edition

It’s both annoying and strangely prophetic (we think) that Lancia and Chrysler don’t have one of those convenient “Brangelina” names, like Lancsler or Chrycia. Fiat’s execs aren’t exactly being subtle about the merging of the two brands, but then they’re also not giving us a lot of glimpses at the stunning execution that it will take to turn two marginal marques into a single, halfway viable brand. It’s almost as if the two are just being pushed together in a forced, unnatural manner, and the results thus far show a distinct lack of inspiration. Not convinced? Hit the jump for your morning glass of has it really come to this? [via unica-strada.com].

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Cadillac's European Vacation From Reality

Cadillac relaunched [release in PDF format here] its perennially disappointing European effort last week, revealing that a new sales and import firm, Cadillac Europe, had been formed. Why would Cadillac double down on a market that it until recently blighted with its ill-advised Opel Vectra-based BLS (which bizarrely still appears at the cadillaceurope.com website)? Caddy boss Brian Nesbitt explains:

Europe is an important market for Cadillac. Re-establishing distribution of our premium offerings is good news for those who seek import exclusiveness

Except that Europe and America are fundamentally different markets, with different tastes in luxury. Unless the Cadillac boffins have some kind of alternate explanation for why Lexus sells like hotcakes in the US, but can barely move the needle in Europe and is resorting to Euro-specific models to make headway. But apparently success in the US luxury market is just a few European sales away. Really.

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WSJ: GM Eying Two New HUMMER Offers
A “person familiar with the situation” tells the Wall Street Journal that GM is looking into two new offers for the HUMMER brand after a deal t…
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Spyker Confirms Saab Sale Closure
We are delighted – Saab’s future is now secure. From today we will be concentrating all of our efforts into reviving Saab and transforming it int…
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Time Running Out For The HUMMER-Tengzhong Deal

Although the Chinese government takes much of February off for New Year festivities, GM’s deal to sell HUMMER to Sichuan Tengzhong has exactly one week left before a self-imposed deadline for completion arrives. The deal is being held up by China’s Commerce Ministry which has publicly said that it wants the Chinese auto industry to consolidate and become “greener,” two goals that are severely at odds with Sichuan Tengzhong’s HUMMER aspirations. Now, the Financial Times reports that Tengzhong may be trying to pull an end-around on the Chinese government by pursuing a purchase via an offshore investment vehicle. This would (in theory) evade the requirement for the Commerce Ministry’s approval. In reality …

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Ask The Best And Brightest: Could The Toyota Recall Prove That There's No Such Thing As Bad Publicity?

The social media blog Mashable has an interesting theory: Toyota’s recall woes might actually be good (gasp) good for the brand. To back up this astonishing claim, they offer two premises, based on online social media data:

The first is that the increased number of conversations about Toyota are building greater awareness for the brand even though many of the mentions may be negative. While this may seem unusual, the fact that people are talking about the brand a lot more and sometimes in a neutral light (not just negatively) is increasing its exposure. More people are talking about Toyota than any other brand these days. And they’re talking about the recalls, but also the fixes being provided by the dealerships too. And some of the consumers are probably coming to the defense of the brand too. Maybe there is some truth to the adage that there’s no such thing as bad publicity after all.

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Lord Love A Lincoln

With news that Mercury will receive new product based on the forthcoming Ford Focus, the bandwagon to crown Ford as the new King of Detroit has halted briefly as its passengers take a moment to remember: oh yeah, Ford is technically still trying to compete in the luxury game. Ford’s recent luxury-brand efforts have been so half-hearted in comparison with its Ford-brand turnaround that many analysts simply overlook Lincoln and Mercury when proclaiming Dearborn’s momentum. As, apparently, have consumers. Neither Lincoln nor Mercury cracked 100k sales units in 2009, a feat achieved even by such marginal luxury brands as Buick, Cadillac, and Acura. And as the Detroit News details, the problems with Lincoln-Mercury run deep, and their solutions are far from obvious.

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Quote Of The Day: Say Anything Edition

The best stories are those where you can barely wait to find out more. There are new heroes, new ideas and new sources of suspense… actually, all typically Porsche

So goes the opening to this video, introducing the new base-model V6 Panameras. Though some might argue that Volkswagen-sourced V6 engines are not in fact “typically Porsche” (an argument that carried more weight before the Cayenne came to town), a 300 horsepower engine in a 3,814 lb, four-door Porsche does technically qualify as a “source of suspense.” And attempting to charge $75k for a base Panamera V6 certainly requires a perspective that might be charitably described as “heroic.” On the other hand, it’s hard to get too down on this poor thing. You can’t blame a lazy dog for a veterinarian’s (or in this case, a CAFE standard’s) work. Besides, it’s still not as embarrassingly neutered as the Cayenne V6.

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Alfa In America: Glorious Return or Cynical Ploy?

Fiat/Chrysler CEO Sergio Marchionne seems ever more committed to the idea of bringing the Alfa Romeo brand to the United States, telling Automotive News [sub]:

I’m a lot more confident now that Alfa Romeo will reconstitute a product offering that is acceptable globally, and more in particular in the United States and Canada. There is a strong likelihood that the brand will be back here within the next 24 months

Needless to say, this is the kind of news that gets automotive enthusiasts all hot and bothered: a European brand known for its small hatches and dynamic brio coming to a US market that’s not known for offering either. And though more choice for consumers is typically a good thing, Marchionne’s motivations for bringing Alfa to the US are less than entirely admirable. As with so many decisions made in the auto industry, keeping enthusiasts happy comes at the expense of smart business choices.
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BMW: Out With The "Ultimate," In With The "Joy"

BMW has ditched its long-running “Ultimate Driving Machine” tagline in favor of the vague, lifestyle-y “We Make Joy” promise. And though advertisers never tire of explaining that products themselves pale in comparison to the feelings they inspire in their owners, much of BMW’s (and most German luxury brands’) appeal comes from a projection of sachlichkeit, or single-minded obsession with something for its own sake. “The Ultimate Driving Machine” expressed the brand’s practical and emotional values in a simple, original phrase. The new line might open the brand to more non-enthusiast consumers, but it also reeks of the kind of marketing done by firms that don’t have top notch products on the market (usually because of a distinct lack of institutional sachlichkeit). For the closest analogue we could find on short notice, hit the jump.

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What's Wrong With This Picture: Fly Like Fiat, Sting Like A Dodge Edition

Last week we took the counter-intuitive step of calling out Chrysler for refusing to hype its forthcoming products. “Let’s face it:” we wrote at the time, “Chrysler needs buzz, hype, awareness, or some kind of excitement surrounding its future generally and its forthcoming products in specific (if only in the irritating “teaser” format) almost as much as it needs anything else.” Well our wish has been granted, sort of, as this rendering of a 2013 B-segment Dodge hatchback has hit the internet [via AutoBirdBlog] to inspire rare optimism about the Chrysler Group’s future. For a number of reasons though, this is not the buzz-builder we were looking for.

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Stop The Presses: Mercury To Receive New Product!

When GM axed four brands in bankruptcy, it seemed for one bright, shining moment that the era of America’s auto brand bloat was drawing to a close. No such luck. Both Chrysler and Ford passed up opportunities to hack off purposeless brands, and in doing so perpetuated some of the worst examples of brand engineering surviving in the US market. If there were one brand that needed the hatchet, it is and was Mercury. Now, after a decade of Jill Wagner-supplied life support, Ford is breaking the silence surrounding its entry-luxe brand, announcing that a Mercury-badged vehicle will be built “on the same platform” as the new Ford Focus. Put simply: the Mercury Tracer is coming back.

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Imitating Chrysler Is Not The Sincerest Form Of Flattery

The Orlando Sentinel reports that “a couple of years ago,” Seminole County’s Lake Mary High School made the curious decision to ditch its previous mascot (now known as “the old goat”), and adopt the Dodge Ram logo as its own. Chrysler only just found out, thanks to a local tipster, despite the logo’s presence on gym floors, t-shirts and athletic uniforms. Needless to say, a cease-and-desist showed up, and Lake Mary will be having to live with “the old goat” from now on. As Chrysler’s lawyer puts it [via Overlawyered]:

As I am sure you can appreciate from your years of work with the board, control of use of a mark by enthusiastic students and parents is quite simply not practical, and I know the school and board would not want to be in the position of censoring student expression associated with the design,

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Acura: All We Need Is Advertising

Despite spending $264.1 million on measured media in the first 11 months of 2009, up 16.5 percent from the year-ago period [per AdAge monitoring] while sales fell nearly 27 percent, Automotive News [sub] reports that Acura is upping its 2010 ad spend by 50 percent. According to Acura’s advertising boss Steven Center, Acura’s awareness levels have been consistently high, but consumers didn’t perceive it being as prestigious as other luxury brands. By boosting advertising of new products like the ZDX and TSX Sportwagon, Center hopes to close the gap with the premium perceptions of its German competitors. Center explains:

Our messaging for years has been too ill-focused and not about the product. The ads weren’t making the point and the point is: What is it about Acura that makes it better? We want to have the emotion of BMW without the hardware,

You know, instead of being seen as higher-content, uglified Hondas. Yeah, more advertising should help with that.

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Audi A1: What We Did Instead Of Rebadging A Polo
Like it or not, extending the concept of luxury into ever smaller classes of cars is the next big challenge for high-end auto brands. According to the latest…
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What's Wrong With This Picture: Dodge's Gender Issues Roll On

What do you sell if you can’t sell a car? Sophisticated commentary on the state of gender relations, of course. Hit the jump to see just how gendered one marketing campaign can get.

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Dodge's Last Stand

Furious Fuschia counterpoint after the jump.

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EU Approves Sweden's Saab-Spyker EIB Loan Guarantee
One more obstacle to the Spyker-Saab deal has been eliminated, as BusinessWeek reports that the EU has approved the Swedish government’s guarantee of a…
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Chrysler Group Launches Branded Merchandising, Hilarity Ensues

Sergio Marchionne’s misguided obsession with the alleged brand equity of his recently-acquired Chrysler Group marques has deepened, as Chrysler, Dodge and Jeep launched new branded merchandise today [hilarious press release here]. The funniest part of the whole cross-branding effort is the very idea that significant portions of the population want their day-to-day goods slathered with Chrysler Group brand names. The second funniest? The products themselves. The Chrysler Collection features such “luxury gifts” as an $11.95 leather calculator, a $199.95 mahogany humidor, and a $21.95 mini umbrella, all tagged with Chrysler’s new Aston-alike logo and doubtless finished in the same fine materials as the Sebring’s interior. If Davos had a Wal-Mart, this is what they’d sell.

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Why Can't HUMMER Kill Its Inventory?

HUMMER is the big loser of GM’s dead brand version of “The Biggest Loser,” with an epic 2,493 vehicles left on lots after 9 months of “winding down” (not to mention the two plus years with a “for sale” sign stuck on the brand). As this table from GM’s January sales release shows, even Saab has trimmed more inventory since GM announced the cut to four brands last May. HUMMER did beat the Swedes in sales last year, barely, clocking 9,046 units to Saab’s 8,680. But Saab also sold more 9-7x Trollblazers (2,218) than HUMMER sold H2s (1,513). Figure that out. And people wonder why the Chinese government doesn’t want Sichuan Tengzhong to buy this hummer of a brand. [UPDATE: HUMMER’s Communication Director responds after the jump]

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Spyker Claims 2012 Profit Goal For Saab

Spyker has set the goal of turning a profit with its newly-purchased Saab division by 2012, reports Automotive News [sub]. That effort will be led by a total of three Saab products: the existing 9-3 (with a new version rumored for 2011), the forthcoming 9-5 sedan and, later next year, the GM-built Saab 9-4X Crossover. Other models, including a 9-1 compact are being hinted at, but Spyker acknowledges that such a product would require about a billion dollars more than Saab-Spyker currently has access to. Meanwhile, those three vehicles will have to generate 100k-125k annual sales in order to keep the business plan rolling along. Saab-Spyker honcho Victor Muller has an almost shockingly confident take on this possibility, telling Reuters:

It’s all about the restoration of the confidence in the company. Customers have been very reluctant to buy because of the uncertainty surrounding the brand… Saab has to do nothing but regain its existing and old customers because that in itself would be in enough to create a very strong business model..

Saab sold a total of 8,680 vehicles in the US over the course of 2009. Globally, the firm sold 39,903 units last year, down from 94,751 in 2008. Perhaps the challenge is a bit more difficult than Muller lets on.

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Jeep Crossing Over To "Broaden Urban Appeal"

Having re-birthed themselves at the taxpayers’ expense, one of Chrysler’s top priorities is restoring the brand equity that has bled out since the Daimler takeover. First up was the move to spin “Ram” off as its own brand, and now it seems that no-one is safe from “re-birth,” as UPI.com reports that Chrysler are rethinking their strongest brand, Jeep. Unfortunately, one man’s brand rebirth is another man’s brand betrayal. Chrysler want to replace all of Jeep’s products, except for the Wrangler and Grand Cherokee, and the idea is to utilise Fiat’s experience of fuel efficient engines as the basis for it. That means Jeep is likely to become smaller, more fuel-efficient and less off-road capable [ rumors of a Fiat Panda 4×4-based Jeep (rendered above) date back to the earliest days of the Fiat-Chrysler alliance]. If you had to boil the proposed shift into a single word, UPI figures it would be “soft.” And the markets have reacted to this news in pretty much the same way you’ve probably just reacted: they think the idea is bad. Very bad.

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Toyota Launching "G" Sporty Sub-Brand

Oh how quickly things change! Just weeks ago, if you’d asked the average well-informed consumer what Toyota needed to change with its strategy, you’d have been treated to a treatise on how Toyota’s quest for quality and mass-market appeal had reduced its brand to signifying snooze-inducing appliances. Indeed, Toyota’s new CEO has emphasized enthusiasm as an area for improvement, waxing eloquent about the “splendid flavor” of the sporty vehicles Toyota doesn’t offer. Accordingly, Toyota is launching a sporting sub-brand àlá BMW’s “M” or Volkswagen’s new “R” line of high-performance vehicles according to Inside Line. Thanks to Toyota’s descent into recall hell however, boosting the brand’s sporty credentials is suddenly of highly debatable utility.

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VW Launching "R" Performance Sub-Brand

Volkswagen’s recent go-fast specials like the Golf R32 and New Beetle Rsi have typically been developed by a little-known branch of the automaker known as Volkswagen Individual. But performance isn’t necessarily VW Individual’s main focus, as the sub-firm also builds to-order customization of VW products, from police specials to to custom-built stretched Phaetons, and helps VW R&D on new products. In order to focus its efforts, VW is spinning the “R”-vehicle development program into its own unit: R GmbH. “BMW has its M, Mercedes has AMG, and our sibling Audi has Quattro. This new R division will be our Quattro,” an unnamed VW exec tells Inside Line. You know, because Audi and its Quattro performance division isn’t owned by Volkswagen or anything.

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What's Wrong With This Picture: The Journey To The Chrysler TC Begins With A Single Step Edition
The search for “potential synergies” between Alfa Romeo and Maserati has already yielded its first bitter fruits, as Auto Motor und Sport reports…
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Spyker Stocks Soar, But Sergio Isn't Buying

Here’s a situation in a hypothetical tense for you. If you were the CEO of a car company which never made a profit in 11 years and you offered to pay $74 million for a car company which hasn’t made a profit since 2001 and had a badly damaged brand, how would you expect your share price to go? Trust me, you’re not even close. MarketWatch.com reports that Spyker shares soared as much as 74% when they announced they had reached an agreement to buy Saab from General Motors. Spyker’s market capitalisation is now €107 million, four times more than when GM first put Saab up for sale.

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Mercury Retrograde: Alan Mulally Stands By His Brand

For all the praise and positive comparisons he earns, Ford’s Alan Mulally still refuses to man up and acknowledge that at least one of his firm’s brands is as meaningful to the American consumer as Kaiser or Cord. And it’s not like Mulally can just ignore the brand’s slide into ignominy: after all, people notice when you never introduce new products for a brand that was wholly comprised of cheap rebadges in the first place. Well, Inside Line noticed, and they cornered Mulally at the Washington Auto Show to get his take on the brand with no purpose.

“The plan right now is (to develop) Ford, Lincoln and Mercury,” Mulally answered.

He said Ford is working to more effectively position Mercury with smaller vehicles that occupy the void between the mainstream Ford brand and Lincoln, which directly targets the luxury-premium market. “That’s our plan — to continuously improve the Mercury and Lincoln brands,” Mulally said.

But after a little more discussion, Mulally felt compelled to reiterate: “That’s the plan right now.”

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What Is Dodge, And Can Wieden + Kennedy Explain It?

Based on these teasers for Dodge’s much-anticipated 60-second Super Bowl ad, we’d have to say they’re still working it out. One thing is for certain: if the point of spinning off the Ram brand was to broaden Dodge’s appeal, the new ad wizards aren’t trying hard enough. The ad above, like most of the latest tranche of Dodge ads, is from the old-school, knuckle-dragging, truck-alike, gender-role-based marketing school. In short, the new Dodge is nothing new…

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  • SPPPP I am actually a pretty big Alfa fan ... and that is why I hate this car.
  • SCE to AUX They're spending billions on this venture, so I hope so.Investing during a lull in the EV market seems like a smart move - "buy low, sell high" and all that.Key for Honda will be achieving high efficiency in its EVs, something not everybody can do.
  • ChristianWimmer It might be overpriced for most, but probably not for the affluent city-dwellers who these are targeted at - we have tons of them in Munich where I live so I “get it”. I just think these look so terribly cheap and weird from a design POV.
  • NotMyCircusNotMyMonkeys so many people here fellating musks fat sack, or hodling the baggies for TSLA. which are you?
  • Kwik_Shift_Pro4X Canadians are able to win?