Automotive News - July 14, 2008 - (Page 8)

8 • JULY 14, 2008 advertising GM ads will push mpg for 90 days Jamie LaReau jlareau@crain.com DETROIT — General Motors will intensify its fuel economy marketing campaign over the next 90 days, marketing chief Mark LaNeve says. GM plans to use targeted media to tout compact, small and mid-sized cars and crossovers, he says. “I told my teams, ‘Don’t think conventionally that you’ll do the same pallet of traditional advertising,’ ” says LaNeve, GM North America’s vice president of vehicle sales, service and marketing. LaNeve wants advertising targeted to the areas where it will generate the most consumer interest. “I liken it to the presidential campaign. The candidates will focus on Mark LaNeve: GM plans to use targeted media to tout compact, small and midsized cars and crossovers. the states where there are swing votes,” LaNeve says. Last week GM started airing new national TV spots for Buick, Pontiac and GMC. The spots, called “The Fuel Guy,” feature a man who asks viewers to rethink their idea of fuel efficiency. In the GMC Acadia spot, for exam- ple, GM benchmarks the Acadia against the Toyota 4Runner. The tag line is “Less pumping, more driving,” touting both the fuel economy and range of the Acadia. There are two GMC spots, one Buick spot, one Pontiac spot and one that incorporates all three brands, says Debbie Frakes, a GM spokeswoman. All are 30-second spots. “If you think about the market right now, it is being flooded with fuel economy messaging, and so that’s why BPG tried to put a spin on it,” Frakes says. “It focuses not just on miles per gallon but on range.” There is also a Buick-Pontiac-GMC print campaign. Chevrolet has started airing a TV campaign called “Trade in to trade up.” It emphasizes trading in a nonGM car for a more fuel-efficient Chevrolet. Saturn launched a new ad campaign a month ago with a heavy emphasis on fuel economy. This campaign will run for the rest of the year. Saab will run ads that talk about its turbocharged engines, LaNeve says. The ads will emphasize the performance and fuel economy of Saab’s small-displacement engines. LaNeve says GM will stress fuel economy because “our research has shown us that up until recently, people only had a vague idea of what they were spending on gas a month. Now they know for sure.”c A missed opportunity GM lacks small cars because execs didn’t listen to Europe Jason Stein Should Rick Wagoner have spent a little more time in Europe? Four years ago, General Motors chose a gorgeous setting near Fayence, France, to unveil its future strategy to the world’s journalists. There were new Corsas, new Astras, new diesels and new plans for GM to stake its claim as an international powerhouse. A barrel of oil was under $40. Gasoline was about $2 a gallon. Full-sized trucks and SUVs were delivering barrels of cash. Would North America need the small stuff? Nah. Not invented in America. Not necessary in America, Wagoner’s team seemed to say. Hindsight is better at $4 a gallon. Last month, sales of new cars and trucks in America plunged to their lowest level in more than a decade. Car companies (read: GM) cannot meet the surging demand for those pint-sized European cars that are small and fuel-efficient. The downturn is drastic: GM is burning cash at an alarming rate; its shares are at a level not seen since the 1950s; and its market capitalization has dropped to $6 billion — or less than Starbucks. Four years later, it’s obvious GM Jason Stein is publisher of Automotive News Europe. didn’t spend enough time driving the French countryside. “What if?” wasn’t part of the equation. European fuel prices have been the stuff of legend in America. But long ago European carmakers looked at their products and asked a simple question: Is the car too big? In America it was never big enough. GM Europe has figured out a formula to make small cars and make money. But something got lost in the overseas connection. It’s simple: GM is not offering what Americans want because it misread its domestic market and didn’t listen to its brethren. Yes, the Astra and Corsa are coming — but two years after Toyota’s Yaris and Honda’s Fit. Maybe it would have made sense to follow the world’s most profitable carmaker by preparing for doomsday a little earlier. You know, just in case. You may e-mail Jason Stein at jstein@craincom.de DAVID McNEW/GETTY IMAGES GM to build Volts in U.S. for Europe Jens Dralle and Jamie LaReau jdralle@craincom.de comment Revision: Bosch still tops Auto News supplier list Bosch is still No. 1 after all. On June 23, Automotive News published its annual list of the top 100 global suppliers. We ranked the suppliers by worldwide sales of original equipment in 2007. To our surprise, Robert Bosch GmbH fell to second place behind Denso Corp., a fast-growing supplier of small motors, engine controls and electronics. But then each company submitted revised data, and Automotive News converted their sales from euros and yen into dollars in a consistent fashion. The new results are in: Bosch reported sales of $36.16 billion, up nearly 22 percent from the previous year. And Denso recorded sales of $35.70 billion, up 25 percent. Both companies appear likely to dominate for years to come. Magna International trails both by $10 billion in annual revenue. Revised data and rankings are available in the Data Center portion of autonews.com. — David Sedgwick General Motors will build Opeland Vauxhall-branded versions of the Chevrolet Volt in the United States for export to Europe. GM will introduce the European versions of the plug-in electric car in 2012. The Opel electric vehicle essentially will be the Volt with different styling, says a source familiar with GM’s plans. Opel, GM’s German brand sold in most of Europe, and Vauxhall, its British brand, have wider dealer networks in Europe than Chevrolet does. The first of the vehicles sold in Europe will be built in the United States, Carl-Peter Forster, president of GM Europe, told Automobilwoche, a Crain Communications publication that covers the German auto industry. GM will build the Volt at its DetroitHamtramck assembly plant. It has a target date of late 2010 to launch the gasoline-electric vehicle in North America. “The first generation of E-Flex models is based on GM’s compact class,” Forster said. Yet these cars won’t be especially affordable, he said: “Customers will have to adjust to a substantial surcharge.” The price could be “up to 10,000 euros more than a comparable model with a conventional powertrain.” That’s about $15,738 at current exchange rates. In the United States, GM executives expect the Volt to cost more than $40,000 unless the government offers a tax incentive. But Forster sees an advantage for the customer. “At the gas prices that we now have, an electric car would be significantly less expensive per kilometer driven.” The purchase price also is expected to fall “dramatically” as volumes rise, he said. E-Flex models store energy in a lithium ion battery, charged when necessary by the vehicle’s gasoline or diesel engine. Forster says projections about the market size for electric vehicles are “purely crystal-ball gazing. Demand depends on the price of oil.” But inside GM, management expects the Volt to be a high-volume vehicle.c http://www.zadv.com http://autonews.com http://www.zadv.com

Table of Contents Feed for the Digital Edition of Automotive News - July 14, 2008

Small-car boom misses Chrysler Ford's large rwd car plan is iffy Suppliers: Inflation is looming Hummer H3T price: $31,495 VW may build next Passat in U.S. plant Glut of trucks pulls Prius to U.S. Ford sues U.S. over taxes Restyled Ridgeline Volvo will tighten U.S. dealer network As BMW's chief in N.A., Purves got biggest thrill out of Mini Despite pricey fuel, Jetta diesel in demand Everybody's a critic: How dealers cope with online reviews Hyundai goes big on Genesis lease The shift to automatic: A transmission transition Jaguar-Land Rover dealer: Stand-alone would bankrupt me Chevy christens compact Cruze Fiat, BMW will team up on platforms, parts Revision: Bosch still tops Auto News supplier list GM to build Volts in U.S. for Europe GM ads will push mpg for 90 days A missed opportunity 2008 sales forecast? 14,652,757 Suzuki cuts U.S. work force 8% CAFE standards: Stop whining and get to work Uncertainty is the name of the game Honda dealer rubs salt in a wound Careless driver was to blame for crash Unsafe driving wasn't Ford's fault For doomsayers, business is booming again Best ad slogans have staying power Bird Dog Club creator hunts dealer poachers Dealers How to design a Lamborghini? Passion for speed certainly helps Dressed to kill Check for children Delinquency rate on indirect loans skyrockets Group promotes payment assurance Ford has big plans for small vehicles in North America Mulally pushes Ford toward fuel efficiency Ford brand will draw on European lineup With no new vehicles planned, Mercury's future is bleak Engines promise power plus fuel economy Horbury: We'll keep our vehicle designs fresh Ford aims to move Lincoln upscale Toyota's Lentz: Don't panic over collapse; market will stabilize Personnel Chrysler's car sales sag in June — even more than trucks PG sells majority of auto glass business to private-equity firm Chrysler's Campi makes nice Suit against Ford is reinstated BMW reassesses Mini demand JCI plant cuts shift, work force CAW board endorses local president Purves: Thumbs-up for BMW innovations Current trend in Europe: Electric cars Solid reviews for Ford's new Flex Philosopher has insight for ailing U.S. auto industry The 'B' word brings media deathwatch at GM Chrysler to dealers: Don't panic

Automotive News - July 14, 2008

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