Posts Tagged ‘GM’

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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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Posted in Auto manufacturers, Automotive Retail, Branding, Retail, Strategy | 1 Comment »

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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Posted in Auto manufacturers, Branding, Strategy | 3 Comments »

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.

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Posted in Auto manufacturers, Branding, Communications, Strategy | 2 Comments »

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:

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Posted in Strategy | 1 Comment »

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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Posted in Auto manufacturers, Automotive Retail, Branding, Strategy | 5 Comments »

Jury is out on GM’s new marketing effort

Tuesday, September 15th, 2009

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General Motors Co.’s most recent marketing effort has taken off in the form of a 60-day return policy and a :60 second spot featuring Chairman Whitacre.

Both the automotive and communications industry pundits have had a lot to say about the commercial featuring Mr. Whitacre and I think it fair to say that most of it has been critical.  Bob Lutz’s defense of using Whitacre struck an odd cord when he said that “we were looking for was a highly credible spokesperson who would be a new fresh face” and followed up by describing Whitacre as  “the new guy in town. He’s tall, good looking, has impeccable white hair and has this nice soft Texas drawl and limps a little bit when he walks, which sort of gives him this old cowboy look.” (Advertising Age 9/10/09)

I’m not sure that did much to build his credibility, but I think we need to wait before we pass judgment on this marketing program.

In Automotive News on September 10th, the Whitacre spot was put into context:

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

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Posted in Auto manufacturers, Branding, Communications, Strategy | No Comments »

Looking for a new agency partner? 8 critical things auto manufacturers should consider.

Tuesday, September 15th, 2009

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The following article first appeared in BusinessWeek’s “Brand New Day” blog on September 7, 2009

Volkswagen has announced that it is looking for a new advertising/communications partner.  Chrysler has just announced that they are considering non-roster agencies for projects.  Bob Lutz at GM has said that the agencies for the remaining GM brands have six months to demonstrate that they have the chops to remain part of GM’s stable of agencies.  A rash of car companies re-evaluating their agency partners.

So what should these companies, or for that matter any automotive manufacturer, look for in an agency?

The next five years are going to be the most competitive in a generation.  The “new normal” annual sales volume for the US will be 14-16MM units, nowhere near the 18MM the market achieved a few years ago, let alone the 20MM+ some forecasters anticipated.   The “new normal” is a mature market where the fight for share will be intense, the risk of commoditization ever present and the winners will be those companies who recognize that the only thing standing between them and commodity status is terrific product and a carefully crafted brand reputation.

The “winners” will be those companies with clearly differentiated brands.  Those companies that make establishing and/or nurturing their brands a priority will see their share of market grow, those who focus only on retail will be treated like commodities.  Automobile manufacturers do need agencies that can manage the retail side of the business but more than ever they need to take brand building seriously.

So here are some suggestions on what to look for in an agency:

1. An agency must demonstrate the ability to build a brand over the long term. Look for relationships and case histories that span years not months.  Look for strategic consistency that is grounded in a deep understanding of the client and its customers.  Make sure that knowledge turns into core values that form the bedrock of the brand’s communications.  Look for the “red thread” that holds all the work together.  Ask 2nd and 3rd level questions about the company and its brand.

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Posted in Branding, Communications, The Agency Business | 1 Comment »

“GM must change perception to halt decline”

Wednesday, July 8th, 2009

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This bit of understatement came from Steven Rattner and was quoted in a July 6th article in Automotive News.  He went on to say that “There’s often a lag between perception and reality.”  He was referring to the “fact” that GM’s products  and product quality would surprise many people.  Based on JD Power’s most recent IQS study where both Cadillac (#3) and Chevy (#9) were well above industry average, he seems to have point.  GMC and Buick were just a couple of notches below average.  By the way, the GM brands are ahead of many well respected marques like Audi, Volvo, Subaru, Jeep and Mini.

So, as the new GM comes out of its speedy bankruptcy there seems to be general acknowledgement that it needs to deal with this “perception problem” which means that the marketers are going to get their chance to help change the fortunes of GM.

Another Automotive News article declared:  “The New GM needs marketing blitz, experts say.”  The question that comes to mind is what is the “marketing blitz” going to consist of.  There’s a body of opinion that says that GM should lower its prices to get people in the showroom where they will see the quality of the products and be compelled to buy.  Some folks are suggesting that the message should be “Come give us a chance and see what we’ve got, because we’re going to grow.”  Others are saying that GM needs to take advantage of a growing “new nationalism” and Americans’ willingness to buy American.

This sounds to me like Detroit pulling pages from its traditional playbook.  What happened to “re-invention.”

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Posted in Auto manufacturers, Communications, Strategy | No Comments »

I wish I had a Saturn dealership

Tuesday, June 9th, 2009

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This week it was announced that Roger Penske had cut a deal to buy the Saturn brand from General Motors.  What a terrific development for Saturn and the Saturn brand.

A few weeks ago I was with a GM marketing guy and he made the observation that “you can tell that finance guys made all the decisions about the future of GM, because marketing folks would have kept Saturn and Hummer.”

The point he was making is that a marketing person would have recognized the inherent value in the Saturn and Hummer brands.  It looks like Hummer is going to get a second chance with a new Chinese owner and it remains to be seen if Hummer can successfully navigate changing consumer sensibilities to build a solid and profitable business in the US.

Saturn on the other hand grabbed the brass ring.

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Posted in Auto manufacturers, Automotive Retail, Branding | No Comments »

re-invention

Thursday, June 4th, 2009

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Let me start by pointing out that I am not a GM basher.  I think the government was right to help and I want the company to succeed.

Having said that, the new GM advertising and website  (http://www.gmreinvention.com/) which seeks to convince us that there is a new company called GM and that it is re-inventing itself is lame at best and insulting to our intelligence at worst.  Here’s the new commercial/video:

If you go to the website, there are quite a number of interesting videos and lots of information designed to make the reader feel confident that this is a company that is changing and that it has a bright future.

Here’s what bothers me, the same GM team using the same agencies have cranked out another big production anthemic commercial and a bunch of videos…where’s the “re-invention” in that?

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Posted in Auto manufacturers, Branding, Communications | No Comments »

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