Autoblog

Qoros could finally be the Chinese brand to fear in the west

David Kiley — Wed, 24 Apr 2013 19:00:00 EST

Filed under: Sedan, China, Europe, Marketing/Advertising, MISC

Can Qoros Make A Difference Outside The Walls Of China?

I know of no sober industry executive who fears a Chinese entry into the US.

Qoros is a venture between the Israeli Israel Corp. and state-owned Chinese company Chery. Chery, up to now, has been known mostly for "appropriating" western designs and having an ill-fated, ridiculous and half-baked venture with Malcolm Bricklin to bring Chery vehicles to the United States a few years ago. Bricklin was an original distributor of Subaru and Yugo in the US. The only people to find any success in that venture were the lawyers.

But what gets my attention now with Qoros is that the company seems to be addressing the cultural mistakes and barriers that have bedeviled every other Chinese automaker with aspirations to be successful beyond China. It is using non-Chinese executives - people with legitimate experience in the Western auto industry - in the areas of design, engineering and distribution.

Heretofore, I have been bored silly watching Chinese automakers like Chery, Great Wall and BYD either come to the Detroit Auto Show with a car, or strike some preposterous distribution deal with the hacks and ne'er-do-wells of the western auto retailing space. It's been all for naught. These cars and ventures have been so inept and awful that I know of no sober industry executive who fears a Chinese entry into the US.

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Qoros could finally be the Chinese brand to fear in the west originally appeared on Autoblog on Wed, 24 Apr 2013 19:00:00 EST. Please see our terms for use of feeds.

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Romney doubles down on auto bailout opposition?

David Kiley — Sat, 18 Feb 2012 11:05:00 EST

GOP Presidential candidate Mitt Romney is trailing in the polls in Michigan ahead of that state's February 28 primary, and the former Mass. Governor thinks the way to close the gap is to bash the bailout of the auto industry in 2009 that saved General Motors and Chrysler from being broken up and liquidated in bankruptcy court.

Romney's timing is tough, what with GM's setting an all-time record profit for 2011.

Polls have suggested that despite the obvious benefit from the bailout to Michigan, state residents have been divided about whether Uncle Sam should have stepped in to keep the automakers in tact.

My big beef with Romney is not that he opposes the bailout in principle (though he did support the bailout of Wall Street), but that he fictionalizes events of 2009 when GM and Chrysler went through bankruptcy. Romney asserts that the companies could have gone through a managed bankruptcy without the help of the federal government. Not true.

Perhaps a better tack for Romney would be to suggest that as long as GM is making such huge profits the company might pay back some of the loans granted it under President Bush. GM got billions before the bankruptcy that it is not required to pay back.

Read my entire column about Romney's odd take on history at HuffingtonPost Detroit.

Romney doubles down on auto bailout opposition? originally appeared on Autoblog on Sat, 18 Feb 2012 11:05:00 EST. Please see our terms for use of feeds.

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AdSpotting: Jennifer Lopez and Fiat "Back To The Bronx"

David Kiley — Tue, 11 Oct 2011 16:56:00 EST

Filed under: Convertible, Marketing/Advertising, Videos, Hatchback, Celebrities, Fiat

Company: Fiat USA

Brand: Fiat

Medium: TV

Ad Agency: Doner, Southfield,MI

Product: Fiat 500C

Campaign: Life Is Best When Driven

What We Like: Technically, this is the first ad shot by Fiat with Jennifer Lopez. The first airing of the J. Lo/Fiat partnership was last month when the Italian automaker began running a cut-down version of a new Lopez video that features the 500. That video drew fire from some of the blogosphere. One wag actually said it was the worst car ad he had ever seen. Really? We don't think so. Fiat is chasing awareness, and fast. What better way than to link up with one of the hottest music, film and TV pop stars. The video and this ad don't get into the performance or experience of driving a 500C, but this is meant unabashedly to drive pure awareness, curiosity and conversation. Based on online search data and YouTube views, the strategy is working. Since Lopez has a big crossover audience among both Latinos and non-Latinos, she is also a pretty logical medium through which to attract people. Latinos are also arguably more aware of Fiat as a brand than U.S.A. drivers since the brand has long been distributed in South America. Fiat has for years retained the top spot in Brazil's auto market, which is among the world's fastest growing.

The ad features Lopez driving the 500C through the Bronx where she was born. It has a bit of the feel, in terms of the way it was shot, of the "Imported From Detroit" ads Chrysler is now running with gritty looking shots of Detroit.

What We Don't Like: The opening of the video has J. Lo saying, "Here... this is my world..." Lopez was born in the Bronx in 1969. And while we have no doubt that she has a soft spot for the Bronx, she has, according to online reports, been living in a gated house in Long Island and just recently bought an $18-million place in the Hamptons. These neighborhoods - pickup basketball games, break dancers, barbershops and graffiti - may be in the veins of Lopez, in her roots, but they aren't much a part of her life today. The closing scene of the ad with kids running after her car? What's up with that? How about pulling over and hanging out? She does get out of the car and hug a few kids in front of what we are led to believe might be the building in which she grew up.

We figure Lopez exerted script approval before shooting the ad, but we might have suggested writing more honest sounding prose - and maybe just a little something about the car - for her to say in the voiceover.

Strategy: Fiat has been out of the U.S. for 25 years, and is unknown to most U.S. car buyers - unless they are from or have spent a lot of time in Italy and Latin America - under the age of 40. The company is trying to get people talking about and recognizing Fiat. The company was slow to open its Fiat studios since launching last spring, so it is behind in meeting its U.S. sales target. With a high-profile media buy on the NFL, and getting 500s into rental fleets, it is trying to jumpstart its awareness.

The Fiat 500 has a lot of potential. The engine is a little under-powered, the backseat a bit cramped, and the fuel economy under-delivers a bit on expectations for a car this small. But the design of the car inside and out is just plain fun. And the 500C, the cabrio, is a blast to drive with the cloth roman-shade-style top retracted. Fiat did a nice job of preserving the elements of the 500 that make you feel like you are driving a cool little European car, which, of course, you are.

Grade: B+

Watch the ad after the jump and give it your own grade below.

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AdSpotting: Jennifer Lopez and Fiat "Back To The Bronx" originally appeared on Autoblog on Tue, 11 Oct 2011 16:56:00 EST. Please see our terms for use of feeds.

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AdSpotting: Prius goes funny... At Last

David Kiley — Fri, 22 Jul 2011 19:00:00 EST

Filed under: Hybrid, Marketing/Advertising, Videos, Hatchback, Toyota, Humor

Company: Toyota Motor Sales

Brand: Toyota

Medium: TV

Ad Agency: Saatchi and Saatchi

Product: Prius

Campaign:"What Happens After Practice"

What We Like: Going to back when Toyota launched its very amusing campaign for its Sienna "Swagger Wagon" TV ad and Youtube videos, the Japanese automaker has been looking for ways to engage consumers by not taking its very practical models so damn seriously. The Prius is an unabashed market success. It defines the hybrid segment. And it is the market leader in fuel economy. It does everything but run on actual crunchy granola in the gas tank. Prius ads do not need to play up the fact that they are super fuel efficient. Everyone knows. So, as we showed you a few days ago, turning to this approach of having NBA star Steve Nash talk about how driven he is, as if it was a Nike ad, is a creative homerun. His deadpan monologue about how competitive he is, talking about making constant adjustments and improvements to his game, while driving a Prius and finally edging out a grandma for a parking space is a way to stand out from the usual hybrid ad that merely screams the highway fuel economy rating. Gotta love Nash's trash-talk dance at the end too.

What We Don't Like: Tough one here. The agency nailed it.

Strategy: Prius has owned the hybrid market. But it is undeniable that Ford Fusion Hybrid and the Dearborn, MI automaker's coming C-Max all hybrid brand will begin to cut into Prius's perceived leadership. If there is a weakness in the Prius brand at all, it is that it is widely viewed as a car for celery eaters. Honestly, the current Prius is a bit bloodless to drive. Pumping some hemoglobin into it via clever advertising that doesn't take the car so deadly serious seems like a decent idea for a brand that is this mature.

Grade: A

Watch the video after the jump and give it your own grade below.

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AdSpotting: Prius goes funny... At Last originally appeared on Autoblog on Fri, 22 Jul 2011 19:00:00 EST. Please see our terms for use of feeds.

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AdSpotting: Kia "Joyride II" is warm, fuzzy and memorable

David Kiley — Wed, 22 Jun 2011 18:58:00 EST

Filed under: Marketing/Advertising, Videos, Crossover, Kia, Humor

Kia Joyride II - Click above to watch the video after the break

Company: Kia Motors America

Brand: Kia

Medium: TV

Ad Agency: David & Goliath

Product: 2012 Kia Sorento

Campaign: "Joyride II"

What We Like: It's getting pretty hard to stand out. Seriously... another crossover? Kia has established a signature sound, look and feel for its ads. This ad, in fact, is a sequel to a TV ad that ran last year, and scored well with consumers. And anyone who knows anything about advertising will tell you that establishing a recognizable ad signature is very important if a brand wants to have an ongoing dialogue with car shoppers. Agency David & Goliath has done a really nice job the last two years of creating a presence on the airwaves for Kia. The ads are silly, of course. But they are fun to watch, and give you the idea that this is a premium outfitted vehicle with a decent interior and all the connectivity you really need. Lots of brands struggle with what they want to say and be. Kia is not one of them.

What We Don't Like: It's guilty pleasure, like actually opening the link of the kitten video one of your friends posted on Facebook.

Strategy: Over here! Over here! Notice me! Pay attention! When I come on the screen, pause and watch. Don't get a soda, or go to the john! Kia's vehicles have come a long way. The Optima, for example, is a huge surprise and for our money is actually better fitted out than its Korean cousin - the Hyundai Sonata. Kia's problems are two-fold: It still lags in third party quality rankings from outfits like J.D. Power and Associates, and it is not getting enough serious consideration from people who have decent credit scores.

Seriously, why else would you turn to hamsters and stuffed animals in commercials? It's to be remembered, and liked, especially by female buyers. After these ads run, online searches for Kia go up, and that's exactly the point of the exercise.

Grade: A-

Watch the commercial after the jump and give it your own grade below.

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AdSpotting: Kia "Joyride II" is warm, fuzzy and memorable originally appeared on Autoblog on Wed, 22 Jun 2011 18:58:00 EST. Please see our terms for use of feeds.

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AdSpotting: Lexus Declares Itself "Future-Proof"

David Kiley — Fri, 17 Jun 2011 18:55:00 EST

Filed under: Hybrid, Marketing/Advertising, Technology, Videos, Lexus, Luxury

Lexus declares itself Future Proof - Click above to watch the video after the break

Company: Toyota Motor Sales

Brand: Lexus

Medium: TV

Ad Agency: Team One

Product: Lexus Brand

Campaign: "Engineering Amazing."

What We Like: There is a swagger in the ads, and a tone and creative quality that hearkens back to when Lexus was launching as a new luxury brand in 1989 and 90. Call us car geeks, but we like the stories of how Lexus had to invent new processes, like a 3D loom to weave carbon fiber that is strong enough for its intended purpose. Innovating plastic that can be recycled infinitely sounds pretty cool, too, though we would discourage the company from using the stuff over and over again in its interiors, some of which lately seem to look like they were designed at the Igloo Cooler company. The close of one ad just released, titled "A New Era of Lexus Innovation," finishes on the track, and gives the brand a youthful energy - not unimportant since the vast majority of Lexus buyers lately also reap AARP discounts. In "Wall," a Lexus LS crashes a wall of beakers and vials each holding a different "alternative" fuel, such as bio-diesel, algae, liquid hydrogen, and so on. Lexus makes the point that its Hybrid Drive technology will optimize any fuel system on the planet, and that its technology is "future-proof." That's swagger.

What We Don't Like: Lexus has a way of making its ads sound like the brand is the last word in innovation. We guess that's what they were shooting for. It is, after all, advertising. But it's hard not to react with a bit of a jaundiced eye when we stop to consider just how pointless the hybrid system actually is in big cars like the Lexus LS. The fuel economy gain is negligible, and at a lot of extra cost. Seriously, $112,250 for the LS600h, about $45K more than an LS460? Want to impress us? Start mating your bigger vehicles to a diesel engine, which would be far more appropriate to the vehicles than hybrids. Also, you could work on the plastics aesthetics on the lower-priced Lexus models.

Strategy: Lexus has a well-known age problem. The age of its buyers has crept consistently over 60, and it muffed its cycle plans by having too many new core models come out at the same time. Some of the vehicles are long in the tooth. This campaign is filled with tech, messages about sustainability, race-track footage. We aren't saying Toyota is trying to out the brand on roller skates, but it is clearly using story-telling techniques to give fresh life to its innovations. That's a good idea, and they should keep at it.

"This isn't just a campaign, it's a statement that, for Lexus, the best is yet to come," says Dave Nordstrom, vice president of marketing for Lexus. "It's not about simply making incremental strides and improvements, but about taking giant leaps in innovation." These ads and this approach is slated to run through January, so it is a major push to super-charge the way customers think of Lexus.

Grade: B+

Watch five of the commercials after the jump and give the campaign your own grade below.

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AdSpotting: Lexus Declares Itself "Future-Proof" originally appeared on Autoblog on Fri, 17 Jun 2011 18:55:00 EST. Please see our terms for use of feeds.

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Ad Spotting: VW Gets Serious About Pushing Diesel

David Kiley — Thu, 19 May 2011 16:58:00 EST

Filed under: Sedan, Marketing/Advertising, Videos, Volkswagen, Diesel

Volkswagen Jetta TDI "Can I Drive" - Click above to watch the video after the break

Company: Volkswagen of America

Medium: TV

Ad Agency: Deutsch/LA

Product: 2011 Jetta TDI

Campaign: "Can I Drive"

What We Like: That VW is putting some money behind marketing its clean diesel models. VW's sister company, Audi, has long been pushing its diesel offerings, while VW seemed to be mostly letting its enthusiast audience do word-of-mouth for the TDI line. The focus of this ad is on the fuel economy, 42 mpg on highway, which is simple, told through a brief story about a teenager who wants to take his turn driving.

What We Don't Like: Not much at all. We see the data point on 42 mpg, which is an eye-catcher. But maybe ad agency Deutsch could have dialed in an extra graphic or data point that shows how far one can drive on a full tank.

Strategy: Clean diesel is much misunderstood by the general consuming public, as well as 99 out of 100 legislators who, it seems, would rather be caught in a New Orleans hotel room with an escort than photographed promoting diesel cars. Hybrids, electrics and even hydrogen cars we will never drive? Members of Congress flock to those photo ops faster than they do a Wall Street hedge fund manager with his checkbook open. But diesel, their campaign managers, tell them doesn't sell. To hell with them. TDI vehicles rock, and get much better mpg than a Camry Hybrid.

This ad is squeaky clean and is as sparkly and wholesome as a hybrid ad. The 42-mpg figure is meant to get TV viewers to search on the car when they see it on TV. There, they will see several links to VW-created content before they get to a Car and Driver review of the car. They'll have to go a lot further into Google to find carping from anti-diesel bloggers or belly-aching from the uninformed who think if they gave a diesel car they will find themselves stranded in the middle of Idaho with no way to fuel up. Good job on the search-engine-optimization VW!

Grade: A -

Watch the commercial after the jump and give it your own grade below.

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Ad Spotting: VW Gets Serious About Pushing Diesel originally appeared on Autoblog on Thu, 19 May 2011 16:58:00 EST. Please see our terms for use of feeds.

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AdSpotting: BMW 5 Series "Refuel" reintroduces us to The Ultimate Driving Machine

David Kiley — Fri, 29 Apr 2011 18:58:00 EST

Filed under: Sedan, Performance, Marketing/Advertising, Videos, BMW, Luxury

Company: BMWa

Brand: BMW

Medium: TV

Ad Agency: Grey West

Product: 2011 5 Series

Campaign: 5 Series "Refuel"

What We Like: The swagger is back at BMW. After more than a year of fooling around with "Joy" as a lead ad positioning, a new marketing team at the German automaker is re-emphasizing "The Ultimate Driving Machine" as the brand's central positioning. The 30-second ad contains what many BMW followers like - a fast car and a big plane. No, the plane, which looks to be a Boeing KC-135 Stratotanker, is not hovering so close to the 5 that it could fill the guy's coffee cup. But the CGI is good enough to pull off the visual trick.

What We Don't Like: Not much at all. Getting a story and message across in a 30-second TV ad is not easy. But BMW and this ad agency, Grey West, did a nice job of conveying a fuel efficiency story.

Strategy: BMW marketing chief Dan Creed, who took over at BMW North America a few months ago, is all about re-affirming "The Ultimate Driving Machine" as Bimmer's main message. At the New York Auto Show, he walked us to the front of BMW's stand to look at a giant rendering of the ad slogan, which dates back to the early 1970s. At last year's show, there was a giant banner that proclaimed "Joy of Driving." "We know there is a lot of joy in driving a BMW, but we are going to show it in pictures and film rather than say it," says Creed.

It's worth noting that as fun as this ad is, the message is about the 5 Series' fuel economy, not the horsepower. BMW is trying to broaden its message to be more inclusive of men and women, as well as tell its story about its investments in the South Carolina plant that produces X3 and X5. But Creed also wants the brand and the cars to show some leg when it comes to marketing and advertising. BMW remains an exciting brand, and a premiere stable of driving machines. That shouldn't be lost when telling the broader story.

BMW is kicking off a review for a new ad agency. It parted ways with Austin-based GSD&M late last year. New York-based Kirshenbaum Bond Senecal + Partners produced last February's Super Bowl ads. Grey West, which has handled BMW's retail and pre-owned advertising since 2008, produced the ad and will presumably get a crack at the whole enchilada.

Grade: A-

Watch the commercial after the jump and give it your own grade below.

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AdSpotting: BMW 5 Series "Refuel" reintroduces us to The Ultimate Driving Machine originally appeared on Autoblog on Fri, 29 Apr 2011 18:58:00 EST. Please see our terms for use of feeds.

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Opinion: Is BMW becoming too soft?

David Kiley — Wed, 09 Mar 2011 17:29:00 EST

Filed under: Etc., Marketing/Advertising, BMW

"Happiness isn't around the corner. Happiness IS the corner." So said an ad for BMW created in 1996 for the Z3. In the TV version (see the video at the very bottom after the break), a heavy-metal music track underlined the idea, which was carried over to magazines and billboards.

I'm reminded of that ad, one of the more perfect expressions of the BMW brand I have ever seen, this week as I take in the Bavarian automaker's plan to launch vehicles powered by "alternative" powertrains under the "i" sub-brand: as in, yes, iPad, iPod, iMac. So far, I'm not hearing about Apple filing trademark infractions. It is, I believe, also "i" as i Isetta, the last time BMW brought out a mini city car. "I" for innovation probably figures into the choice, as well.

The campaign was literally meant to attract more people who were not necessarily driving enthusiasts to the brand.

BMW has brand issues. Take the Super Bowl on Feb. 6. BMW ran two ads in the big game for a cost of between $5 and $6 million. One ad was to push diesel engines. Another was to push the fact that all X3 crossovers are now being built at BMW's plant in South Carolina. "Designed in America. Built in America," says the voiceover at the end of this ad. How about using the big game to push the core of your brand equity - driving excitement. How about an ad that says: "aspire to own and drive this marvelous machine."

Something has gone horribly wrong at BMW. And I think I know what it is. Back in 2006, then- BMW marketing director Jack Pitney (who tragically died in 2010) shared with me a Powerpoint strategy showing how far too many people, in his mind, weren't considering a BMW because they were intimidated or otherwise put off by the performance image of the brand. It was this finding that led BMW to first do a corporate ad campaign touting BMW's independent ownership, and then the softer "Joy of Driving" campaign that ran most of last year. It was literally meant to advance a "softer side" of BMW, and attract more people who were not necessarily driving enthusiasts to the brand.

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Opinion: Is BMW becoming too soft? originally appeared on Autoblog on Wed, 09 Mar 2011 17:29:00 EST. Please see our terms for use of feeds.

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Is the New GM a Buy?

David Kiley — Fri, 22 Oct 2010 13:30:00 EST

Filed under: GM, Earnings/Financials

After next month's elections, General Motors will rev up its engines to go on the road and try and sell its initial public offering of common stock to savvy investors, especially the big institutional investors with millions of dollars, hundreds of millions in some cases, to put into a stock they like.

So, is the new GM a buy? Let's look at some facts. It has had four CEOs since Spring 2009. It has gone into and come out of Bankruptcy. And it's current chairman, Edward Whitacre Jr., tapped by the White House because of his extraordinary history of management and corporate governance, apparently is so checked out already, despite the fact that he has the job until the New Year, that he yammered to a reporter about details of GM's stock plans despite the fact that the company is in a Securities and Exchange Commission-imposed "quiet period." Oops.

"It's a little too early to say, but it is going to be somewhere in the $20 range ...$20 to $25, something like that would be my guess," Whitacre told Reuters. Reuters also quoted Whitacre as saying, "I can't say how much we'll sell, but I can say we'll have a successful IPO sometime in November." GM has had to distance itself from the comments of its own chairman.

While these facts don't necessarily inspire confidence, hold your judgement. Stock market investing can be an emotional game, especially for amateur individual investors. But it pays to look at stocks and the future with a more unemotional view.

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Is the New GM a Buy? originally appeared on Autoblog on Fri, 22 Oct 2010 13:30:00 EST. Please see our terms for use of feeds.

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