Automotive News - March 24, 2008 - (Page 14)

14 • MARCH 24, 2008 Detroit 3 can learn from the Marlboro Man Tobacco industry could teach autos a lesson in credibility Barrett Kalellis For more than 30 years, the tobacco and auto industries have faced tons of bad publicity about their products and their motives. In their responses to political and public pressure, one industry might learn from the travails of the other. In the face of increased calls for more expansive government controls, can the U.S. auto industry ever regain enough popular support to fend off crippling overregulation? Now that the products are better — and even Consumer Reports says so — the Detroit 3 need to recoup their reputations. The experience of one tobacco company suggests that a tide of ill will can be turned by being proactive. It ought to work for automakers, too. Probably no U.S. industry has been so demonized as the tobacco industry — the result of a century-long shift in popular opinion as tobacco products have been shown to cause poor health and death. The U.S. auto industry has become almost as unloved as the tobacco industry, starting with the bad publicity about auto safety issues raised by Ralph Nader in the 1960s. Like the tobacco bigwigs, auto barons were dragged before congressional hearings at various times. Automakers had to answer charges that they were intentionally making unsafe cars just to save some bucks. More calls for regulation came from the National Highway Traffic Safety Administration, the EPA and consumer groups after air pollution and fuel consumption became hot topics. EDITORIAL STAFF 313-446-0361 E-mail autonews@crain.com Web site www.autonews.com Keith E. Crain Publisher and Editor-in-Chief Peter Brown Associate Publisher and Editorial Director DETROIT 313-446-0361 Fax: 313-446-0383 1155 Gratiot Ave. Detroit, MI 48207-2997 David Sedgwick Editor dsedgwick@crain.com Edward Lapham Executive Editor elapham@crain.com Richard Johnson Managing Editor rjohnson@crain.com John K. Teahen Jr. Senior Editor Mary Beth Vander Schaaf Deputy Managing Editor Charles Child International Editor David Kushma Retail Editor Dave Guilford News Editor Philip Nussel Special Projects Editor James B. Treece Industry Editor Karen Faust O’Rourke Insight Editor comment Why not take a lesson from Philip Morris? Rather than challenge public expectations, the Detroit 3 should lead the way with candid and open communications. When higher gasoline prices drove many consumers toward more fuelefficient vehicles, Detroit scoffed and did little to develop alternative-fuel technology, calculating that the market would return once fuel prices stabilized. 5. Have the product lineup reflect the messages you are sending. If a vehicle manufacturer declares it is committed to improving fuel efficiency and driver safety, the ultimate proof will be in the products presented to consumers, not in the declarations themselves. In recent years, in spite of financial difficulties, Detroit carmakers have made significant strides in meeting the needs of consumers and the expectations of the general public. If they continue to do so, car buyers will predictably beat a path to their doors. That will change public perception remarkably and help them regain consumer trust and confidence. Barrett Kalellis is a Detroit-area freelance writer. Faced with mounting public pressure for government to get into the act, executives from both industries at first resisted change by denials and stonewalling — using all their legal, lobbying and public relations resources. Courting credibility The Detroit 3 fought unsuccessfully against the recent change in corporate average fuel economy requirements in order to protect their profitable truck market. They relied on their friends in Washington to keep the status quo — friends who have become increasingly sidelined. Why not take a lesson, then, from Philip Morris? Rather than challenge public expectations, the Detroit 3 should lead the way with candid and open communications. 1. Strive for openness and transparency. Make the company’s position consistent and crystal clear, particularly on controversial issues. Do not have one set of messages for the general public and another set for lobbyists and company attorneys. 2. Try to make common cause with adversaries. 3. Resist the temptation to use the CEO as an advertising mouthpiece. Bill Ford, Jacques Nasser and Dieter Zetsche all suffered from marketing overexposure, which led to loss of perceived credibility. 4. Make sure your reputation isn’t ruined at the dealership. Stone wall crumbled Both tobacco companies and auto manufacturers felt the lash of public disapproval, whether by government-mandated regulation or massive legal settlements that changed the way they did business. Tobacco giant Philip Morris USA, the maker of Marlboro cigarettes, responded to public expectations by pursuing reduced-harm products and by creating educational initiatives to curb youth smoking and by rigorously enforcing the ban on tobacco sales to youth by retail dealers. In addition to eliminating cigarette print advertising and branded race car sponsorship, the company now supports federal legislation for a comprehensive national tobacco policy regulated by the Food and Drug Administration. For their part, American carmakers were earning a terrible reputation for producing vehicles of poor quality, compared with new Japanese offerings. Market share declined. What do you think? We would like to hear from you. Send a letter to the editor via e-mail (autonews@crain.com) or to the Detroit address near the top of the box at right. Here’s what we need. No more than 250 words Your name and title, company name if we can print it, city and state; or tell us about your connection to the auto industry Your phone number or e-mail address Your permission to print it COPY EDITORS: Bob Allen, Tom Fetters, Patricia C. Foley, Kenn Jones, Gregory Skwira Susan Zavela Bamford/Graphics Editor Rick Kranz/Product Editor REPORTERS: Leslie J. Allen, David Barkholz, Mary Connelly, Ralph Kisiel, Jamie LaReau, Arlena Sawyers, Robert Sherefkin, Richard Truett, Bradford Wernle, Amy Wilson Mary Raetz Director, Automotive News Data Center Debi Domby, Camille Pippen Research Assistants Dan Jones Office Manager Robertta Savage Editorial Assistant Corinne M. Price, Michael Garrison Information Center LOS ANGELES Mark Rechtin/Bureau Chief 310-739-8009 Fax: 310-832-6362 Kathy Jackson/Reporter 323-370-2481 Fax: 323-655-8157 6500 Wilshire Blvd. Los Angeles, CA 90048-4947 NEW YORK Diana T. Kurylko/Reporter Phone/fax: 908-273-6059 dkurylko@crain.com WASHINGTON Donna Harris/Reporter 540-668-7295 Fax: 540-668-7296 Harry Stoffer/Reporter 202-662-7212 Fax: 202-638-3155 814 National Press Building Washington, DC 20045-1801 MID-SOUTH Lindsay Chappell/Bureau Chief 615-371-6654 Fax: 615-371-6655 April Wortham/Reporter 615-371-6617 104 East Park Drive, Suite 315, Brentwood, TN 37027 TOKYO Hans Greimel/Asia Editor +81-3-3828-9060 Fax: +81-3-3828-9061 hgreimel@crain.com Yurakucho Denki Bldg., 20th Floor 1-7-1 Yurakucho, Chiyoda-ku, Tokyo 100-0006, Japan SHANGHAI Alysha Webb/Bureau Chief +86-21-6226-9485 Fax: +86-21-6226-9483 alyshawebb@yahoo.com TURIN Luca Ciferri/Reporter lciferri@craincom.de +39-011 961 0194 Fax: +39-011 961 0113 Viale Cavaglia, 8 10029 Villastellone (TO) Italy STAFF CORRESPONDENT: Eric Freedman/Legal file, 517-337-0269 www.autonews.com DETROIT Victor Galvan/Web Editor vgalvan@crain.com 313-446-0345 Scott Kennedy/Multimedia Editor bought the cars. I doubt we will be exporting any finished Jeeps to India. BRAD SCHMIDT Sales Manager Air & Liquid Systems Rochester Hills, Mich. The company supplies auto assembly plants. continued from Page 12 slow the inevitable depletion of oil. The most efficient power sources available right now are turbodiesels. With the addition of hybrid technologies, brake regeneration, lightweight materials and aerodynamic efficiency, we could possibly double our fuel efficiency, effectively doubling our remaining supply of fossil fuels. That might keep us mobile long enough to develop acceptable solar energy sources. T.C. KLINE President TC Kline Racing Inc. Hilliard, Ohio Wait 3 years, then judge Ford “Toyota cannot build the Prius fast enough,” a letter writer says. The Prius is a phenomenon To the Editor: Regarding John K. Teahen Jr.’s Feb. 11 SalesTales column (“Hybrids: A curiosity, not a phenomenon”): I think the hybrid market is a phenomenon. The reason sales of the Toyota Prius are not higher is that Toyota cannot build the Prius fast enough. The Prius is not that small. It competes easily with the Chevrolet Malibu, the Honda Accord and the new Ford Taurus. Nor do people buy the Prius just because it is green. It is economical, especially on depreciation. I sold one of mine for a profit after a year’s use. The routine 40 mpg is true. PAUL WOUDENBERG Yarmouthport, Mass. The writer is the car announcer at the Pebble Beach Concours d’Elegance in California. How many Jeeps will India buy? To the Editor: “Chrysler throws out purchasing rulebook”: Save a penny, spend a fortune and take jobs away from people who buy your cars (March 3). How much does it cost when you idle a plant because the boat from India didn’t leave on time or encountered bad weather and you To the Editor: I read John K. Teahen Jr.’s column in which he maintains that Ford doesn’t get it (“Ford, Dodge foolishly pin hopes on pickups,” Feb. 4). I don’t know where he has had his head for the past few months. In case he doesn’t know, Ford Motor Co. has introduced several new car models and has more to come. I believe they are what the public wants and will want. I have been selling Ford products for 38 years, and I couldn’t believe what I was reading. Teahen should check out the real world and in three years remind us that he thought Ford made a mistake. He might be surprised; Ford may even be making a profit. ROBBIE ROBINSON Robinson Motors Yankton, S.D. have no seats for your vehicle? http://www.autonews.com http://www.autonews.com

Table of Contents Feed for the Digital Edition of Automotive News - March 24, 2008

Ford lists 6 to succeed Mulally GM pushes luxury superstores Industry straps in for rough ride Bob Irvin is a worthy addition to Hall of Fame Debate at Scion: How to grow Ford moves executives in Asia to new jobs CEO of lanelogic: We're still here Kia's N.Y. duo Chrysler's exec trio: Reports of friction mostly fiction Where others see gloom, Honda chief sees boom in U.S. Fukui: Nickel battery is best bet for hybrid Beijing conference explores key issues in China market Planworks keeps its role as buyer for GM ads Lincoln: MKS will make up for brand's slow start in '08 Deal's no big deal: Styling top reason to buy GM Penske's Smart start: He'd like 15,000 more Dodge's pitch for Challenger: A halo that you can afford Chrysler plans 'We listen' ads You go, Bob With zest, activist Ditlow remains on lemon patrol Autos did the job after 9/11; don't bet on that now Chinese cars? Dealer beware Solar power is the only answer Where will we get power for the Volt? Want higher CAFE? First, do this In N. California, hybrids are hot Detroit 3 can learn from the Marlboro Man The Prius is a phenomenon Wait 3 years, then judge Ford How many Jeeps will India buy? Lithia looks into improper sales reports at dealerships AutoNation's lead shrinks as largest U.S. dealer group Honda ad agency creates unit to build Acura brand Study: Consistent theme in auto ads builds viewer recall Big-truck sales continue slide in Feb. -- off 27.1% MazdaSpeed revs up racing accessory sales Calif. company eyes electric charging stations for Volt, Vue Indictment: Bribe scheme cost GM $83.3 million The greening of Toyota dealerships 6 more finalists in race for PACE recognition Tenneco expands Japanese work, seeks more Bosch buys diagnostic equipment firm in China JV will design vehicle platforms Citation moves headquarters NxtGen tests emissions system VW stake may help Porsche on fuel economy rules Chrysler's Project Genesis wins over Ore. dealer Germany, new EU members send up European sales Saturn will choose store system soon VW thinks modular for flexibility at auto plants Automakers eager as axles turn high-tech Talking drivetrains with American Axle Dollar halts U.S. retail sales of Audi Q7 hybrid Hyundai: Genesis Coupe offers more go for dough Maxima's target: Luxury Euro makes Pontiac adds 3 sporty variants Outsider Elmer Johnson shook up GM Importer Yanase was Hall of Fame member Obituaries Redesigned TSX has many Acura firsts Dealers Certified sales up 7.5% in Feb.; Audi leads the way eBay's new Web site has new look, more features Big pickups and SUVs lead plunge in used-vehicle prices Ex-Reynolds CEO O'Neill joins J.D. Power Auto Hall of Fame will induct 8 Liberatore looks beyond Daimler Molina gets the top job at GMAC F&I pioneer Pat Ryan to retire from Aon Study: Hydrogen research worth the cost Gulf States trial halted As yuan rises, so do prices of Chinese parts Personnel exec Laymon: Ford still seeking outside talent GE gives supplier credit Dana CEO wants Asian growth Tesla launches production Todt steps down as Ferrari CEO Union pursues Toyota effort Chrysler offers spiffs for military Land Rover ads focus on heritage Mark Rechtin Fresh heir: To turn green, must BMW create brand? GM ponders mini-muscle Camaro New Ford ads coming in April With a spiffier image, Lincoln would rock abroad Rival says Nardelli's OK Ford hails its cab, but mpg is an issue

Automotive News - March 24, 2008

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