#PR

If Ferrari is known for one thing, it’s super-fast, good-looking cars. But if Ferrari is known for two things, that second thing would be its uncanny ability to separate the wealthy from their hard-earned (or not) cash. And apparently the brand is so good at extracting revenue from its super-wealthy clientele that it doesn’t mind a little competition. The Wall Street Journal reports that, when asked by the Italian paper Republica how governments should overcome their budget crises, Ferrari Chairman Luca DeMontezemolo replied

You have to begin by asking it of those who have most, because it is scandalous that it should be asked of the middle class

Class warfare, or just the natural perspective of a guy who regularly charges the super-rich $2,300 for Alcantara trunk liner and $1,800 for a spare wheel? We report, you decide…

Please excuse the self-congratulation, but little breakthroughs like this are a big deal for a site like TTAC. The American Journalism Review has a fantastic piece by Frank Greve on the murky and corrupted world of professional car reviewing, which is well encapsulated in the piece’s subtitle

The world of car reviewing is replete with expensive perks and fantasy vehicles. Consumer advocates need not apply.

And after running through the litany of corruptions endemic in the system, Greve concludes:

Web sites like Jalopnik and The Truth About Cars deliver more independent, aggressive and timely coverage for car enthusiasts than traditional car magazines like Motor Trend.

With all due respect to MT (which is but one of many), that sounds like the truth to me. As does Greve’s description of how press cars are allotted (by the likelihood of a positive review). And for one of his examples of the system at its worst, Greve describe an incident involving TTAC’s own Jack Baruth and the aftermath of his no-holds-barred review of the Porsche Panamera.

It’s been 12 years since BMW offered a four-cylinder engine on a US-market offering, but starting this October, US dealers will begin offering new “TwinPower”four-pot versions of the Z4 roadster and 5-series sedan. And, as BMW’s US-market boss Jim O’Donnell explains to Automotive News [sub], there’s no reason to fear the four… anymore.

It wasn’t in line with our image, because it didn’t have the performance of the six cylinder. We were selling ourselves as the ultimate driving machine and really it wasn’t. Now that the engines have developed so far, it’s not an issue at all.

But now BMW is offering four-bangers because they offer an even better driving experience, right? Less weight, better turn-in, that kind of thing… right?

The Detroit News reports that former Vice President Dick Cheney claims to have opposed the decision to bail out GM and Chrysler, writing in his forthcoming memoir:

“The president decided that he did not want to pull the plug on General Motors as we were headed out the door… Although I understood the reasoning, I would have preferred that the government not get involved and was disappointed — but not surprised — when the Obama administration significantly increased the government intervention in the automobile industry shortly after taking office.”

Cheney notes he had voted against the 1979 $1.5 billion loan guarantee for Chrysler Corp. in the House. “I had continued throughout my career to be philosophically opposed to bailing out specific companies or industries,” he wrote.

Whether agree that automotive PR needs to take more risks or you think it takes more than enough risks already, we can all enjoy the outlandish quotes that do emanate from industry executives in spite of the protective PR-professional bubble that surrounds them. And though TTAC has only had the institutional follow-through to hold a single “Lutzie Award” in the past, I figured that next week (when I’ll be presenting a flood of content based on my extended rap session with Maximum Bob) would be the perfect opportunity to bring them back. And in order to do so, we need you, our readers, to make the nominations. So fire up the search engine of your choice, and hit the jump for nominating criteria and the rules of this year’s awards.

Knowing that some of the top PR professionals in the business are regular readers of TTAC (they could be anyone…), I can imagine a number of them shaking their heads in disapproval at the headline of this post. “It’s happened,” they’re probably muttering to themselves, “TTAC has finally lost the plot.” But instead of dismissing out of hand the seemingly preposterous premise of this post, I ask the assembled anonymous masses of PR pros to bear with me for a moment. As laughable as it might seem to postulate that the industry’s spin doctors can learn something from the most infamously “off the reservation” auto exec ever, the urge to write off this post is part of the very problem I hope to tackle. Allow me to explain…

Some things have been repeated so often that many people have come to accept them as facts. I tripped across one of these in Bob Lutz’s new book, Car Guys vs. Bean Counters (review on the way). Lutz offers “a curiosity I have observed several times at various stages of my career”: when the domestics rebadge an import, the resulting model has scored “way lower” in Consumer Reports reliability survey. This has been Exhibit A in the argument, also repeated by Lutz, that import owners under-report problems on surveys in order to “retroactively justify the wisdom of their purchase.” I’ve come across this claim about CR so many times in the past that it just had to be true. Then I checked.

Swedish radio cites an unnamed source close to Saab as saying the troubled automaker was preparing to file for court-protected reorganization, as it struggles to pay workers and restart production. Under that scenario, Sweden would pay worker salaries while reorganization takes place. But at the company’s official mouthpiece, inside.saab.com, a press release refuses to deny or rule out that Saab has chosen this route. The release reads:

Swedish Automobile N.V. (Swan) is aware of certain reports in Swedish media related to a possible filing by Saab Automobile AB (Saab Automobile) for a voluntary reorganization under Swedish law.

Swan confirms its earlier announcements that it is in discussions with several parties to secure the short and medium term funding of Saab Automobile to restart and sustain production. In order to secure the continuity of Saab Automobile, Swan and Saab Automobile are evaluating all available options. Swan will update the market in case of new developments.

This non-denial might be read as a confirmation that Saab is considering filing for court protection, but hasn’t yet decided on that course of action. Meanwhile, Saab has delayed its latest financial report, and its online PR rep continues to blame the media for concluding that because Saab can’t sell cars, pay suppliers, restart production or even pay salaries on time it’s destined for bankruptcy court.

In the interests of timeliness, we’ve been posting press shots of the latest unveils from Pebble Beach as they happen, but our man on the ground, Alex Dykes, is updating us with his own photos and commentary as well. In his latest update: live shots of the Cadillac Ciel, a 1931 ‘llac, the last of the four-cylinder Lotus Exiges, a $52k Rolls-Royce-trimmed MINI, a Spyker and the Landie Evoque. Ladies and Gentlemen, welcome to Pebble Beach.

Volt owners gather before their parade down Woodward

Photos courtesy of Cars In Depth

As part of the festivities surrounding the Woodward Dream Cruise, GM organized a parade down Woodward and back up again made up of 50 Chevy Volts driven to the event by their owners, at their own expense, from around the country. As far as car company promotional events go it was fairly low key (I was asked not to publicize the pre-parade reception for the owners) but it was clearly a high priority item for GM. The Volt marketing team was out in force and they brought in NASCAR champions Jeff Gordon and Jimmie Johnson, who are racing at Michigan International Speedway this weekend, to wave green flags at the start of the Volt parade. Gordon and Johnson both own Chevy dealerships and they both personally own Chevy Volts. They race for Rick Hendricks, who owns quite a few Chevy (and other GM) stores himself. There were news teams from at least two of the Detroit tv stations and a satellite truck that I believe was used for a national network or cable interview of the NASCAR drivers. GM also brought out a number of pace cars from their private stash of Camaros, Corvettes and even one Chevy SSR that paced races at Indianapolis and Daytona. There was also the ZR1 that set a lap record for production cars at the Nurburgring. Marketing being what it is, the parade also included 2 squadrons of Chevy’s most recent new product, the Camaro convertible and the subcompact Sonic. There were 100 cars in total, one for each year in Chevy’s current centennial.

There were t-shirts and baseball caps for the guests, and the Volt owners each got a nice die cast model of their car, but the Volt owners weren’t there for the swag or for autographs, though they eagerly accepted both. The Volt owners were there because they really, really, really like their cars.

The Detroit News’s David Shepardson reports that GM has requested the dismissal of a lawsuit alleging rear-suspension problems on 2007-8 model-year Impalas, on the grounds that

“New GM did not assume liability for old GM’s design choices, conduct or alleged breaches of liability under the warranty, and its terms expressly preclude money damages,” the response says.

The suit “is trying to saddle new GM with the alleged liability and conduct of old GM.”

With debt collectors closing in on all sides, Saab’s shaky PR took another hit today as the Swedish media repotred that members of the board of Swedish Automobile (SWAN), Saab’s parent company, received pay increases of some 633 percent over 2010. Thelocal.se reports that

New chairman of the board, Hans Hugenholtz, received a raise of 633 percent, from 147,150 kronor (about $23k) to 611,163 kronor (about $950k). Others also had their pay increased significantly.

Though the amounts are relatively small, and the dwindling ranks of unquestioning Saab supporters argue that the compensation is low compared to the Dutch average (SWAN is incorporated in The Netherlands), this is just the latest PR disaster to hit the struggling automaker. One Saab employee sums up the mood:

It feels like everyone is out to grab what they can get.

And no wonder they feel that way. Not only did worker paychecks arrive late, but Sweden’s national debt office has begun foreclosing on the first of its outstanding claims… and the initial amount (about $58k) could have been covered by the chairman’s pay increase alone. Sending the message that board compensation is more important than staying out of insolvency has to be some of the worst PR imaginable. Still, some will defend Saab no matter what…

Who’s ready for some politics? With the presidential election still over 14 months away, recent Iowa straw poll winner Michelle Bachmann is upping the campaign promise ante by telling a Greenville, SC crowd

The day that the president became president gasoline was $1.79 a gallon. Look at what it is today. Under President Bachmann, you will see gasoline come down below $2 a gallon again. That will happen.

Without even taking a side in the muck of presidential politics, it’s plain to see how ridiculous this statement is. As Politico helpfully notes:

Bachmann didn’t detail how she would cut the price of gasoline, which is tied to the global price of oil. [Emphasis added]

Personally, I think gas should probably be taxed to a point where Americans pay about what the rest of the world does, in order to pay for the externalities of oil consumption. Most auto execs agree, arguing that America’s artificially low gas prices play hell with product planning. But even (or is that especially) if you’re a hard-core anti-tax free-market fundamentalist, Bachmann’s statement should be treated with scorn. After all, markets, not presidents, should be setting oil prices. But what’s principle (or even good practice) when compared to the need for political pandering?

I’m sure this headline will get Mopar fans’ backs up, but it’s the cold-hard truth: the American Consumer Satisfaction Index rated the Chrysler brand lowest of all automotive brands, with Jeep and Dodge tied with Mazda for second-to-last place. And though the graph above shows historical scores, the latest rating is based on interviews with US consumers in the second quarter of this year. Hit the jump for a graph of the latest ratings, but first check out those historical scores. I’m not generally a fan of this kind of survey, as exemplified by the infamous JD Power “Initial Quality” survey, but the most dramatic line on this jumbled graph, belonging to Hyundai, matches that brand’s sales progress amazingly closely. That tells me this “satisfaction index” says something about how well each brand serves its intended customer… which, as Hyundai proves, can (but doesn’t always) lead to sales growth. The counter-example: Cadillac has long been a top contender, even when it sold less-than-entirely-competitive products and was losing sales. With that in mind, let’s take a look at this year’s results.

For some time now, there’s been something of a low-scale war going on between OEMs and aftermarket parts suppliers just below the national media radar. The issue: whether or not aftermarket structural parts are as good as OEM parts. Ford has been a major proponent of the OEM-only approach, making the video you see above in hopes of proving that aftermarket parts aren’t up to the job. But the aftermarket is firing back, and they’ve made their own video in direct response to this one, which you can view after the jump.