Automotive News - May 26, 2008 - (Page 10)

10 • MAY 26, 2008 This is Volvo? Ads sell chic, not just safety Mark Rechtin mrechtin@crain.com Ford predicts bigger demand for smaller engines in Escape 4-cylinder engine likely to be in half of ’09 models Amy Wilson awilson@crain.com LOS ANGELES — Volvo has long used its advertising to brag about safe, solid cars. Now the Swedish automaker wants to put the spotlight on cool-looking cars. Stepping away from its long-standing marketing message, Volvo Cars of North America has begun to focus on stylish design and smart packaging in its advertising. A trio of TV commercials for the S80 sedan, XC90 sport wagon and C70 convertible appeared briefly as part of the brand’s March sales event. But consumers reacted so positively to the spots that Volvo has decided to make the campaign its mainstream advertising. Rather than show cars in motion — or crashing, as Volvo has often done in the past — the new commercials depict vehicles at rest on an expanse of blond hardwood floor. The vehicles are approached leisurely by individuals who touch and dreamily caress them, sharing silent smiles. The Swedish folk group Melpo Mene supplies the background track: “I Adore You.” The models look Scandinavian, but the commercials will be used only in the United States. In an era of raw-edged advertising and the hard sell, there is a tenderness to the ads. The spots were created by Arnold Advertising of Boston and directed by Matthew Badger, who had produced successful campaigns for Target. “The question was how to give Volvo a consistent look and feel, where the car is the star, but Some former Volvo commercials may have seemed like term papers on safety; the new ones try to convey a sense of emotional appeal. The vehicles are approached leisurely by individuals who touch and dreamily caress them, sharing silent smiles. humanity interacts with the car, and there is desire,” said John Maloney, vice president of marketing at Volvo Cars of North America. Maloney said the spots will be used again for a summer sales event, with a different tag line, and background music by Swedish musician Nicolai Dunger. A commercial for the XC70 wagon will be shot as well. Despite the early success of the campaign, Maloney said Volvo isn’t through selling safety. But because safety traditionally scores below design, prestige and pride-of-ownership as reasons to buy luxury cars, Maloney says he felt Volvo needed to expand its reach. c DETROIT — With rising fuel prices and upgraded powertrains for the 2009 model year, Ford Motor Co. executives expect more Ford Escape buyers to choose four-cylinder engines. About 42 percent of Escape crossovers are sold with a 2.3-liter four-cylinder engine. Ford expects the four-cylinder take rate to increase to nearly 50 percent with the introduction of 2009 models in July, said Eric Loeffler, Escape chief engineer. For 2009, Ford increased the size of the Escape’s base engine to a 2.5-liter four-cylinder producing 171 hp. That’s an 11 percent increase from the outgoing model. Despite the larger engine, the four-cylinder model gets a 1 mpg boost in fuel economy — crucial in a market where gasoline is hovering at $4 per gallon. “We anticipate with the better performance on the I-4 that we’ll probably get another 5 to 7 percent” on the take rate, Loeffler said. “We’ve never provided an I-4 that is that capable, so maybe with fuel prices the way they are we may see a mix that exceeds our anticipation.” Ford also tuned the Escape’s 3.0-liter V-6 for 2009. It now produces 240 hp, a 20 percent improvement from the outgoing model. The V-6 model also gained 1 mpg in fuel economy, even with the 40-hp increase. Ford estimates the front-wheel-drive 2009 four-cylinder model will get 21 mpg in the city The base four-cylinder engine in the 2009 Ford Escape has more power and higher fuel economy than the base engine it replaces. and 27 mpg on the highway. Ford estimates the fwd V-6 model will get 19/25 mpg. Fuel economy on the hybrid model remains at 34/30 mpg. Another major powertrain addition — a sixspeed automatic transmission replacing a fourspeed auto — helps deliver that fuel economy gain. Ford engineers also credit improvements in aerodynamics and new low-rolling-resistance tires. The upgrades are effective on the 2009 Escape and its sister vehicle, the Mercury Mariner. In addition to the new powertrains, Ford made tweaks to improve ride and handling and reduce noise. The 2009 Ford Escape goes on sale in July at a base price of $20,410, including shipping. That’s up $575 from the outgoing model. Sales of the Ford Escape are up 9.6 percent through April. Ford says it is running its Escape and Mariner assembly plant in suburban Kansas City, Mo., at full capacity. c

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Automotive News - May 26, 2008 Bad times? Not for CEO paychecks GM seeks Volt tax break to avoid $40k sticker Ford's big cuts aim for a Honda-sized lineup Automotive News gets new marketing communications director Toyota pushes N.A. suppliers to match offshore prices VW predicts 5% U.S. sales gain Toyota plans 3 plants for hybrid batteries GM's American Axle strike tab: $2.82 billion Lawsuit in Florida targets congressman's dealership Orbiting the blogosphere Kia to build small cars in U.S. plant VW Mexico exec will run North American purchasing Fiat mulls 500 minicar for U.S. GM scraps big rwd sedans for Chevrolet and Buick Hyundai spends like never before to launch Genesis luxury sedan Surprise: Suzuki slides as fuel prices rise GM paid Walter Chrysler a whopping $600,000 a year Chrysler sends mystery shoppers to dealerships Toyota owes royalties on some hybrids GM, American Axle to resume output Ford predicts bigger demand for smaller engines in Escape This is Volvo? Ads sell chic, not just safety An overnight success in 50 years Obama's comments were out of line Japan does it; why shouldn't we? 25% is high, but Chrysler is wise to revisit SCORE Safety efforts must focus on the driver Blame the dealer for poor service Don't judge Ford quality by just one car Ford quality is best in many years Mitsubishi considers piggybacking with Caterpillar suppliers to cut costs Nissan to make lithium ion batteries 'Boss Ket,' Connery inspire Tim Jackson Germany leads rise in Europe sales Court: Buyers must act in good faith to win lemon law damages Nissan wants suppliers to reduce utility bills Bajaj: From scooters to autos The next $2,500 car? Infiniti will look different, add engine power in Europe Lamborghini boss wants to keep the big engines Lamborghini ups ante in 'entry' supercars Continental exec: We're done selling VDO assets Honda plans Fit hybrid Outgoing Visteon CEO to receive $2.5 million Audi production chief: Cooperation with Porsche will grow Picture this RV shipments fall in March M-B will buy Chrysler studio Supplier personnel VW expects to reap big share of U.S. diesel market Valeo CEO Morin: Pass rising costs to consumers Suppliers to the 2008 Nissan Altima Dealers Auction workshops demystify Web buying April used-vehicle prices: Light trucks fall and cars rise Volvo certified plan offers free satellite radio Mulally: Full speed toward smaller Toyota plans credit card Sanfilippo switches agencies International idles plant Honda Pilot starts at $28,230 Plastech plans assets auction What counts GM's 2-pronged strategy for Calif. rules: If you can't beat 'em . . . meet 'em New wheels for the cop shop The cost of luxury? For Hyundai, it would have been $2.5 billion New tools allow early design input from consumers Lexus in the sky with carbon: How ex-Beatle's PR effort tanked Buy an '08 . . . get a .44 $4 gasoline gives new cachet to aging econo-beaters Time tips its hat to Tata Car marketers: Magazines must widen ad reach Automakers seek 'one-to-one' approach to magazine ads Auto ads go to the movies Here's the next big thing: Ads tailored to you GMC courts women with Acadia

Automotive News - May 26, 2008

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