Tuesday, 11 March 2008

Volkswagen wants more U.S. sales, targeting more competitive price points

According to a recent Automotive News article, Volkswagen is setting its sights on serious expansion in the United States. Last year, the Audi and VW brands moved just over 328,000 units in the U.S. By 2018, that number will reach 1 million, if Group CEO Martin Winterkorn has his way. “"I am sure if we want to grow, we have to go to the United States," he said.

A first step of the plan involves building a production facility in the U.S., potentially in North Carolina, South Carolina or Georgia. VW’s product lineup will favor smaller and less expensive vehicles, with replacements for both the Jetta and Passat shrinking. A subcompact a la the Polo in Europe will compete with models like the Honda Fit and Toyota Yaris, while a body-on-frame pickup will fill out the larger end of the spectrum. "We need to produce cars that fit the American customer," explained Winterkorn. "The Jetta and Passat are too expensive. We need models that hit the sweet spot."

Source: Automotive News [Subscription required]

Posted by industry at 2:00 PM in Marketing strategy
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Thursday, 24 January 2008

Smart brand to rely on customer testimonials as major marketing strategy

With just about any new vehicle, auto dealers and manufacturers hope that positive word-of-mouth will contribute in generating sales. Smart USA, however, has a gone a step further and announced that customer testimonials will play a major role in marketing the new ForTwo microcar headed to the U.S. this year.

Dave Schembri, Smart President, told an Automotive News panel that, “consumer advocacy is most important right now. People love to discover new things and tell people about it." He went on to explain that Smart customers do not define an age range or demographic, but instead share sensibilities, attitudes and lifestyles. “Smart is the only car that doesn't define class,” he remarked.

It’s going to be interesting to watch not only the types of consumers purchasing Smart vehicles, but also how they go about spreading the word. Undoubtedly, the internet will play a huge roll in communicating the ForTwo’s virtues (and vices). Can we assume that Smart buyers are information-sharing types whose primary outlet for speaking is the web? Or will Smart cars operate as “rolling billboards,” generating buzz on the streets and initiating true word-of-mouth interaction? We’ll find out soon.

Source: Automotive News [Subscription required]

Posted by industry at 4:03 PM in Marketing strategy
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Tuesday, 8 January 2008

Kia set to launch Certified Used program this year; last among full-line auto manufacturers

Sales of Certified Pre-Owned (CPO) vehicles across the industry have grown steadily year-to-year since the beginning of the decade. Customers are not only attracted to the comprehensive inspections and warranties, but also many of the financing incentives offered by manufacturers. Beginning this year, Kia will embark on selling Certified Used models, representing the last full-line manufacturer to embrace this new “type” of retail vehicle.

For a Kia to qualify, the specific vehicle must be no more than five years old and have fewer that 60,000 miles on the odometer. The Certified Used warranty is a 10-year, 100,000-mile deal, beginning when the car was first sold as new. Kia hopes to sell between 13,000 and 15,000 certified autos in 2008, potentially bumping up the residual values of models across the Kia brand.

Source: Automotive News [Subscription required]
Image: Kia Media [2008 Kia Rondo]

Posted by industry at 2:42 PM in Marketing strategy
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Wednesday, 12 September 2007

Mercedes-Benz considering “performance potential” in new alphanumeric model naming; follows competitor BMW

Not too long ago, the alphanumeric trim model naming strategies at both BMW and Mercedes-Benz allowed consumers to discern quite a bit of information from the trunklid badges. A BMW 325i was a 3-series with a 2.5-liter engine, while the 530i displaced 3.0 liters in the larger 5-series body style. The Mercedes-Benz 240D was powered by a 2.4-liter diesel engine, while the 300TD ran via a, surprise, 3.0-liter turbo-diesel engine. There were of course some exceptions – the early 80s BMW 320i only displaced 1.8 liters – but for the most part, the model designations were intuitive.

Take a look at BMW’s lineup today, and the names reveal little. The 328i, 335i, 528i and 535i all displace 3.0 liters, although the 328i and 528i models are naturally aspirated while the 335i and 535i are turbocharged. A 4.8-liter V8 is fitted within 550i, 650i and 750i models, making 10 more horsepower than the 4.8-liter V8 in the X5 4.8i. BMW is clearly trying to delineate models based on relative outputs, but will likely confuse buyers accustomed to the previous displacement-determined strategy.

Mercedes-Benz’s 2007/2008 lineup in the U.S. still maintains a semblance of “honesty.” The C350, CLK350, E350, ML350 and R350 all include a 3.5-liter V6, while the CLK550, CLS550, E550, SL550, S550 and others are driven by a 5.5-liter V8. A 5.0-liter V8 powers the G500 SUV. AMG models with 5.5-liter and 6.3-liter V8 engines are also named appropriately (i.e. SL55 and E63, respectively).

But other current MB models are not as accurately descriptive. The E320, ML320, R320 and GL320 all include a 3.0-liter turbo-diesel engine, and the S600, CL600 and SL600 all go thanks to a 5.5-liter biturbo V12. The GL450 SUV is propelled by a 4.6-liter V8; Mercedes probably likes the ring of “450” better.

According to a recent press release by Mercedes-Benz, future models will be named based on “performance potential,” especially when accompanied by alternative fuel technology such as BLUETEC emissions treatment and hybrid-electric systems. The S400 Hybrid shown at the Frankfurt Auto Show only includes a 3.5-liter V6, but because of its electrical supplementation performs like a larger engine (without the fuel consumption). Lexux’s RX400h hybrid SUV is very similar, in that the 3.3-liter V6 is augmented by a hybrid system and thus earns the higher numerical distinction.

Source and image: Mercedes-Benz

Posted by industry at 3:32 PM in Marketing strategy
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Wednesday, 5 September 2007

Ford showing the proof, launches Swap Your Ride marketing campaign

Ford Motor Company has an ongoing problem with consumer perception. The automaker has quite a lot of new products hitting dealerships, but it seems that buyers just aren’t interested in Blue Oval-affiliated vehicles. FoMoCo’s overall August sales were down 14 percent, and in July the numbers plunged 19 percent. These degrees of loses have defined just about every month of 2007.

So the American automaker is attempting to pump some enthusiasm back into the core brand, Ford, by launching the Swap Your Ride marketing campaign. The program works like this: drivers of competing makes (Nissan, Honda, Toyota, Chevrolet) gave up their vehicles and drove comparable Ford products for a week. The participants were not informed that Ford was behind the switch; instead the program was presented as market research by “In Home Test Drive Experience, LLC.” Yeah, Ford REALLY wants people driving its vehicles.

Ford claims that respondents expressed both positive and negative sentiments about the Ford vehicles, so the videos on Ford’s website must have been hand assembled carefully: they are 100-percent positive endorsements of Ford products. Still, Ford says that after the affairs with Ford vehicles ended, those customers were about 80 percent likely to consider buying a Ford. Purchase consideration was about 40 percent before the drives.

For everyone else who didn’t get a chance to try a Ford for seven days, the company is offering another $1,000 cash-back on most 2007 and 2008 models through October 1, 2007, in addition to any other rebates and offers. Ford Fusions and Mustangs only return $500, and Shelby and Harley-Davidson Ford models are excluded.

Check out Ford’s website to see the videos, or read the company’s press release.

Source: AutoSavant
Image: Ford

Posted by industry at 12:48 PM in Marketing strategy
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Wednesday, 22 August 2007

Nissan warding off speculators, may void warranty for “flipped” 2009 Skyline GT-R sports cars

When a high-priced limited-production vehicle reaches the market for the first time, there is often a group of first-round buyers who never intend to drive the cars themselves. Instead, these “investors” scoop up early examples and sell them to enthusiasts willing to shell out more than the MSRP. As in the real estate business, it’s called flipping.

Nissan understands that the 2009 Skyline GT-R, reaching American dealerships soon, may be subject to this type of buying frenzy. And the company apparently does not approve. Edmunds Inside Line blog reports that Nissan PR officials have hinted at a warranty policy that voids coverage for second owners of GT-Rs who purchase the car less than one year after it was originally bought new. The company would prefer to see the car sell consistently, at dealers, around its $70,000 approximate price point. The decision is not final, but will be announced before the Tokyo auto show in late October.

Source: Edmunds Inside Line
Image: Nissan

Posted by industry at 4:45 PM in Marketing strategy
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Tuesday, 10 July 2007

Ford offers dealers special-edition Shelby Mustang as incentive to sell F-Series pickups

Ford Motor Company has reigned as the full-size truck leader for three decades, selling more Ford pickups in the last 30 years than any other nameplate. Although the Ford F-Series continues to lead the segment in 2007 over the second place Chevrolet Silverado, FoMoCo is pushing its dealers to keep pickup sales up and retain that top position. The latest incentive leverages an upcoming – and potentially very popular – Ford product: the 2009 Ford Shelby GT500 KR.

Dealers that meet or exceed their July F-Series sales goals will become eligible to receive one of 50 Shelby GT500 KRs that Ford will pass out via a lottery. On sale next spring, the GT500 KR is a variation of the Mustang delivering 540 horsepower. Only 1,000 units are scheduled for production, and they will certainly become quite desirable among Ford’s approximate 3,700 retailers in the United States. Ford calls the GT500 KR contest a piece of its “The Greatest of All Time … The Fight for F-Series Leadership” program. Through June of 2007 Ford delivered 355,438 F-Series trucks, while Chevrolet sold 310,896 copies of the newly-redesigned Silverado. Current cash incentives for consumers on the F-series total as much as $4,007.

Source: Automotive News [Subscription required]
Image: Ford media [2008 Ford F-150]

Posted by industry at 3:15 PM in Marketing strategy
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Monday, 25 June 2007

International Volvo treasure hunt delayed by actual sunken treasure

Back in March The View from Inside reported that Volvo was launching a “treasure hunt” to coincide with the release of Pirates of the Caribbean: At World’s End. After a successful program in 2006 promoting Pirates of the Caribbean: Dead Man’s Chest and involving a buried Volvo XC90 V8 SUV, Volvo set out to create the ultimate search experience. But the Swedish automaker never could have imagined the complications that would ensue.

See, Volvo hired Odyssey Marine Exploration to determine the best ocean location to sink a treasure chest filled with $50,000 in gold and a key to a new XC70 station wagon. The company ultimately settled on a location off the coast of Gibraltar. Problem is, Odyssey later discovered real treasure in the Atlantic Ocean, estimated at $500 million in coins. Since Odyssey will not reveal the exact location of its find – titled “Black Swan” – and is under an agreement not to disclose the spot of Volvo’s plunder, questions remain as to where this newly discovered half-a-billion dollar treasure actually is. Not taking any chances, the Spanish Guardia Civil has ordered any Odyssey ships leaving the port of Gibraltar to be detained, meaning that Volvo’s sunken chest is temporarily unobtainable. The Spanish apparently maintains a suspicion that since Odyssey was near Gibraltar in March, that spot could be the Black Swan.

Regardless, a winner has been chosen in the competition: 23-year-old Alena Zvereva from Russia. Zvereva will get the $50K and a new car from Volvo. You can bet Volvo will work pretty hard in retrieving the treasure that it now owns.

Source: The Detroit News and Volvo Cars media [Registration required]
Image: Volvo Cars media

Posted by industry at 1:41 PM in Marketing strategy
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Thursday, 14 June 2007

Ford emphasizing J.D. Power quality awards in car advertisements

Fresh off a display of dominance in the latest J.D. Power and Associates Initial Quality Study, Ford Motor Company will unveil a series of vehicle advertisements boasting its achievements in the 2007 survey. Highlighting both overall brand improvements and segment-specific victories, these ads emphasize the company’s success with taglines such as “Put the pedal to our medals.”

Many industry observers were surprised by Ford’s showing when the results were released last week, especially since four of the five top FoMoCo products displaced Toyota and Lexus vehicles that won last year. Granted, Toyota/Lexus still won four of the 19 segments evaluated, but all of those victories were in truck or Multi-Activity Vehicle (nice way of saying SUV) segments.

The best-selling passenger car Toyota Camry wasn’t even ranked among the top four this year in the Midsize Car segment, even though it won last year. Remember, however, that Toyota just released an all-new Camry and that first-model-year vehicles often struggle. According to J.D. Power and Associates, vehicle redesigns create 10 more problems per 100 vehicles on average.

Several runner-up Ford vehicles last year took top honors in 2007 including the Lincoln Zephyr/MKZ (Entry Premium Car), Ford Mustang (Midsize Sporty Car) and Lincoln Mark LT (Large Premium MAV). Ford has certainly hit a product quality sweet spot, and is eager to let the public know about it.

Sources: The Detroit News and J.D. Power and Associates
Image: Ford media

Posted by industry at 12:25 PM in Marketing strategy
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Monday, 11 June 2007

Saturn Aura challenging Honda Accord and Toyota Camry on dealership turf

Last month The View from Inside reported that Chevrolet was considering renting Toyota Camry sedans and placing them alongside new-for-2008 Chevrolet Malibus in Chevy showrooms for easy comparison by customers. The American manufacturer is apparently confident that the redesigned Malibu, when it goes into production this fall, will be so clearly superior to the Camry that buyers who experience both with chose the General Motors product.

Now Saturn is employing the same type of strategy in marketing the Aura sedan, according to Bloomberg, allowing prospective buyers to test drive both the Toyota Camry and Honda Accord at Saturn dealerships. The program begins today, June 11, and runs through the end of July. Of Saturn’s 430 U.S. dealers, all but around five have committed to take part in the campaign. Interestingly enough, Saturn is buying the vehicles from Honda and Toyota, although no one from Saturn has commented on the cost of the endeavor.

Source: Bloomberg
Image: GM/Saturn media [2007 Saturn Aura]

Posted by industry at 8:08 AM in Marketing strategy
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