Posts Tagged ‘GM’

SAAB is re-building its brand after years of neglect.

Wednesday, July 7th, 2010

Now that SAAB has shed the shackles of General Motors they are getting on with the business of re-building the brand.

Two weeks ago they announced (NYT’s 6/22/10) that they have hired a new head designer who has said that: “We want to return to the Saab DNA.” Just last week they announced (Media Post 6/29/10) that they were ramping up marketing investment, going back on TV and in print with a new campaign.

After years of being part of GM where the SAAB brand was neither appreciated nor nourished it appears to be getting it’s footing back. The SAAB brand has always stood for independence and a willingness to break convention.  SAAB has always had a devoted group of loyalists, some of whom played a vocal role in the brand’s most recent resurrection, PGM (Post General Motors).  Historically, SAAB has had all the foundation stones of a great automotive brand; a point-of-view, good interesting product, a genuine enthusiast group willing to proselytize, a group of loyal owners and marketing that conveyed its essential character.

As part of the GM stable of brands, SAAB’s essential character became a barrier to increased sales volumes.  “Different” didn’t mean special or unique, it became “quirky” or “weird.”  As we all know, very few people buy “quirky” or “weird.”  So SAAB product became less distinct, not necessarily bad, just less unique.  SAAB’s marketing also became more expected, more traditional.  Consumers were subjected to campaign after campaign that hung its hat on the idea that SAAB also makes jets…as if that was ever what the car company was about.

Last week this all changed.   (more…)

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The “Chevy” vs. “Chevrolet” dust-up. What it means for a global brand.

Friday, June 11th, 2010

The last twenty-four hours has been full of articles, blogs, tweets, surveys, all questioning the wisdom of the folks at Chevrolet who were apparently seeking to remove “Chevy” from the brand’s lexicon (NYTs 6/10/10).  Predictably, people were shocked and the Chevrolet folks accused of varying levels of insanity, some even questioning their patriotism.

Thankfully, as the day wore on, Chevrolet made an effort to explain that it had been mis-understood (see the press release) and that the memo leaked to the New York Times had been “poorly worded.” Unfortunately for the folks at GM, this whole incident has just added fuel to the fire for those folks who want to find fault with every thing the company tries to do.  If you take the GM folks at their word, what they were trying to do really isn’t crazy.

At the heart of this dust-up is a real issue.  How to most effectively manage a global automotive brand.

Here’s a video of Alan Batey explaining that indeed “Chevy” is just fine but that “Chevrolet” is the global brand:

Put aside Mr. Batey’s understandable defensiveness and his desire to assure us that “Chevy” is OK.   (more…)

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New ideas from Chevy and Cadillac. We’re still waiting for a brand idea.

Wednesday, May 12th, 2010

Last year, fresh out of bankruptcy, General Motors ran the first ad with Ed Whitacre.  At the time, GM rationalised the Whitacre ad by saying:

“The spot will set up a wider TV campaign featuring commercials about each of GM’s four surviving brands: Chevrolet, Buick, GMC and Cadillac.”  Automotive News, 9/10/09

The implication being that the brand advertising would clarify the brands’ identities. Almost three heads of marketing later, we still have yet to see an ad  or an idea that positions these brands clearly in the marketplace.  Three of the four GM brands have not put a stake in the ground telling us what they stand for (GMC is the exception and that work was done years ago).

Last week it leaked out that Chevy was going to have the tag-line “Excellence for all.” That idea has been roundly criticized as a strategy looking for an execution.  We used to describe an idea like this by saying its “strategy is showing.”  The point of course is that it lacks passion, emotion, bravado, something magical that makes you feel something about the brand, rather it’s as if research wrote the line. Chevrolet is truly one of America’s most storied and iconic brands, surely it deserves better.

Predictably the industry was quick to blame Publicis (Chevrolet’s new agency), I think that’s misplaced.

Ironically, exhibit number 1 in defense of Publicis is the new Cadillac campaign from Bartle Bogle & Hegarty.  Just announced yesterday, here are a couple of the commercials: (more…)

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What to do about automotive marketing?

Friday, April 30th, 2010

What a difference a year makes.  It’s 2010 and the auto industry is beginning to recover.

After an incredibly tough 2009, consumers seem to be coming back.  For the first time in recent memory, Americans’ perception of domestic automobiles seems to be on the mend (Business Week 4/23).  Ford’s bet that Americans will buy smaller, fully featured automobiles looks like it may pay off.  GM’s product plan created by soon-to-retire Bob Lutz is leading a resurgence for the General.  Hyundai and Kia, supported my excellent product quality, have taken advantage of recessionary sensibilities and grown share of market.  Audi , Subaru and Mini have come out of the recession on a tear.

On the other side of the ledger, Toyota continues to struggle with recalls and concerns about quality.  This has led to unprecedented incentives by Toyota and the predictable response by competitors to match them.  So a good number of consumers who had been sitting on sidelines during the recession have come back to dealerships looking to for a good deal.  After 2009, it’s a relief to see traffic in the stores but at the same time if the incentives continue that will not be good for the industry long term.  In 2009, some progress had been made at reducing the use of incentives, but the moment Toyota jumped in to defend its franchise, that opened the floodgates again.

So the good news is that customers are returning to the stores, but are they coming back for the right reasons?

(more…)

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GM paid back the $6.7B loan, bring in the marketing guys?!

Tuesday, April 27th, 2010

I know we live in a world dominated by spin and soundbites but there is something cynical about GM making a big deal about repaying the “loans” and “early” no less. GM has the marketing & PR folks going 24/7, they’ve even made a commercial:

I think it’s great that they have repaid the loan and are showing progress, but this PR/advertising effort seems a little misplaced. Does GM think that we’ve forgotten that the taxpayers provided another $43B for which the government got stock and now owns 60% of the company?

It’ll be one thing when there’s a public offering, the government sells it’s stake and gets its investment back plus interest. That will be something to crow about. In the meantime making a big deal out of the fact that they paid us back roughly 15% of what we put in feels a bit like they’re trying to “sell” us something.

Rather than “sell” us that they’re succeeding, just get on with it, and when they’re no longer Government Motors, bring in the marketing guys.

In the meantime, marketing should be working on clearly positioning their remaining brands. That will help sales and create value for the shareholders.

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Responding to Toyota’s troubles. With incentives!!??

Thursday, February 11th, 2010

Toyota has been very successful in the US and has undeniably eaten Detroit’s lunch. Now Toyota has stumbled and you can hardly blame its competitors for attempting to take advantage of the situation.

That said, it’s a good time to pause and take a deep breath, because as so often is true, it’s not what you do but how you do it that matters.

Today’s New York Times has an article headlined: “With Toyota in trouble, rivals gain.” Manufacturers are offering incentives to encourage Toyota owners to come in their stores, trade-in their Toyota for a new whatever. Supposedly these incentives are not being widely advertised and dealers are being encouraged not to “try to take a predatory stance in this type of environment.”  According to GM and others, their dealers have requested incentive support.  Of course they wanted incentive support, there’s blood in the water.

There are a couple of good reasons to push back against this knee jerk reaction to offer incentives. (more…)

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Muller said Saab can be “very, very profitable,” partially by staying true to its own DNA.

Tuesday, January 26th, 2010

Mr. Muller and Spyker have finally got a deal to buy SAAB from GM (Automotive News 1/26/10).  It sounds like Mr Muller and his team understand the importance of a brand’s DNA.

By rebuilding the uniqueness of the SAAB brand they will be able to re-ignite the passion of their enthusiasts and build the business. SAAB will never be a quarter of a million unit business in the US but it can be successful.  Forcing SAAB into GM’s”success” model was the problem, now it has a second chance.

Congratulations to Mr Muller, Spyker, and SAAB loyalists everywhere. Finally, an automotive brand that will be coming back rather than disappearing.  Like Audi before it, bringing SAAB back in the US market place will be a labor of love and a “mission from God.”   Sign me up.

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SAAB and the commoditization of automobiles

Monday, December 21st, 2009

The SAAB brand is fighting for its life.  After being pronounced dead last week, there is a glimmer of hope this morning.  I think it’s important that SAAB survive.  Not just because thousands of jobs depend on it but because we need brands like SAAB to push back against the commoditization of the automobile industry.

There are lots of reasons to let SAAB go.  It hasn’t made money in years.  It doesn’t sell enough cars to compete in the global auto industry.  GM has starved it for product.  It lost its uniqueness years ago.  It was really never “iconic,” just “quirky.”  The list goes on and on, and many of the reasons are very sound.

I hope that GM will allow Spyker to buy SAAB.  An independent company like Spyker could enable SAAB to reclaim its position as a niche brand with a unique product and a loyal enthusiast base.  We need a brand like SAAB to prove that interesting, well engineered products still have a place in the industry and can be successful.

In its effort to make SAAB appeal more broadly and therefore justify volume levels that would make it “viable,”  GM turned it into just another undifferentiated near-luxury entrant.  The world does not need another undifferentiated automotive brand and from that perspective I understand why people think SAAB should go away. SAAB would be yet another automotive brand that was once distinctive, chased volume using the MDIBTYD volume forecasting methodology and ultimately failed because it lost sight of the core values that actually made the brand “viable” in the first place.

(more…)

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A resurgence for Cadillac?

Sunday, November 8th, 2009

Last year when I was considering what new luxury segment vehicle to purchase I had an experience that I think bodes well for Cadillac.

Keep in mind that my family has a long history with European imports.  In fact the last domestic product we bought was a 1986 Jeep Cherokee, just before the SUV craze really took hold.

Since that time we have had Volvos, a SAAB, a Mercedes Benz, half a dozen Audis and a couple of VWs.  For the last fifteen years my family has been happily ensconced in a series of Audis. As great as our experience has been with our Audis (we still have 2 in our household fleet) I thought it might be time for something new.

Growing up in my household, my sons could not help but pay attention to the automotive industry and both of them love cars.  So as I went through my deliberations concerning a new car, two conversations with my sons illustrated the change that is about to take place in the luxury segment.  The first with my then 22 year old, who when told I was thinking about a Mercedes-Benz, dismissively said “don’t buy a Mercedes-Benz, that’s an old man’s car.”

The second conversation, this one with my 25 year old, didn’t demean the possibility of a Mercedes-Benz, but concluded with “Dad, you should take a look at the Cadillac CTS, I think they’re cool.”

Now it was my turn to be surprised.  I admit that I have impressed by the design direction of Cadillac and I certainly recognize that the product is greatly improved but  “cool” from a twenty five year old’s point of view?

For 30+ years we have watched the Europeans and Japanese recreate the luxury segment as the domestics lost favor.  Very few baby boomers thought of Cadillac or Lincoln as marques they wanted in their garage.  Mercedes-Benz, BMW and Lexus have been their first tier luxury brands of choice.   However, the preeminence of these brands is being challenged.

There are three reasons why the “Tier 1″ luxury brands are under fire:

(more…)

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The Buick brand and the 2010 Lacrosse

Wednesday, November 4th, 2009

Last weekend, I did something I haven’t done in recent memory…I went to my local Buick dealership. I’ve read good things about the new Lacrosse and I wanted to see it for myself.

The dealership had one car. It looked terrific. The salesman said that it was “more European in its styling” and I agree with him. No land yacht here. My one gripe was the “portholes” on the hood, if that is a Buick styling cue, it’s one they should let go (one man’s opinion).

Regardless of the “portholes,” it was hard not to be impressed by the car. If the 2010 Lacrosse is indicative of where they are taking the Buick product line then I’m already thinking about the brand a little differently.

As impressive as the product was, that was not the most interesting part of the dealer visit. I asked if I could drive the car and was politely told, I’d have to “wait my turn.” People were lined up to drive the new Lacrosse! The best news…they weren’t all 65 and older, quite a few were 10-15 years younger.

Based on one dealer visit and the crowd around the 2010 Lacrosse, perhaps the Buick brand is going to surprise us.

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