Watch: Touch Screens Take on the World
External links are provided for reference purposes. ABC News is not responsible for the content of external Internet sites. Copyright © 2011 ABC News Internet Ventures.
External links are provided for reference purposes. ABC News is not responsible for the content of external Internet sites. Copyright © 2011 ABC News Internet Ventures.
External links are provided for reference purposes. ABC News is not responsible for the content of external Internet sites. Copyright © 2011 ABC News Internet Ventures.
External links are provided for reference purposes. ABC News is not responsible for the content of external Internet sites. Copyright © 2011 ABC News Internet Ventures. When NASA released the results of a 10-month study on Toyota vehicles on Feb. 8 concluding that the automaker’s cars did not have an electronics problem that caused unintended acceleration, one of Bloomberg BusinessWeek’s columnists said the media owed the company an apology. There is no ghost in the machine and the intense media coverage caused a frenzy, Bloomberg BusinessWeek columnist Ed Wallace wrote. I know Ed personally and have tremendous respect for him. But I must part ways on this issue.
Toyota may not have had electronic throttle issues. But certainly the company had plenty of other problems. Just today, Toyota announced its biggest recall in a year. The Japanese auto giant recalled 2.17 million vehicles because of carpet and floor mat flaws that could jam gas pedals. Toyota has recalled more than 12 million vehicles globally since November 2009, many of them related to unintended acceleration claims. Of those actions, 5.3 million vehicles were recalled to fix floor mat problems. Some of the cars were recalled because of a sticking accelerator pedal. It may not have been electronics, but there were problems.
Toyota has had other investigations and recalls not related to unintended acceleration. Last week, the National Highway Traffic and Safety Administration opened an investigation into the 2006 Highlander hybrid amid claims that the SUV stalls frequently. In January, Toyota voluntarily recalled 1.7 million vehicles for potential defects in fuel pipes and pumps, Bloomberg reported. On Jan. 10, Toyota CEO Akio Toyoda told reporters that the recalls have inflicted “big damage” on the company, but he maintained that its cars are safe, Bloomberg reported at the time.
Back to the apology. While it’s clear that there is no mystery magnetic glitch in Toyota’s cars and that they are as safe as anyone else’s vehicles, forget the apology. First of all, investigations are news. So long as the media reports the conclusion, it’s in the public’s interest to know what’s happening. Second, Toyota’s lost its once-astute focus on quality. Rapid expansion of its model lines and sprawling archipelago of factories has made it difficult to mind every detail, which was a principal tenet of the company.
Consumer Reports has found a decline in the quality of interior finishes in Toyotas for the past three or four years, David Champion, the magazine’s director of automotive testing, told Bloomberg for a Jan. 12 story. The company whose customers once relied on Toyota for bullet-proof quality and reliability suddenly suffered a rash of problems. In fairness to my old pal Ed, some media reports accepted the unintended acceleration claims as gospel. But that alone does not exonerate Toyota. Sorry Ed, but it’s the customers - not Toyota - who deserve the apology. Toyota’s executives have apologized, and justifiably so.
There’s a subtle rivalry brewing in the luxury car business. Audi and Cadillac are both hamming it up with television advertising to make the case that they’re the hip antidote to stodgy traditional luxury (read: Mercedes). In recent ads, both of them have new commercials loaded with imagery painting luxury as cold and stuffy as they take a fun stab at old money.
One of Cadillac’s newest ads depicts an older couple having an anniversary dinner at their long dining room table. Actor Laurence Fishburne intones, “blue-blooded, cold.” Cut to racy imagery: a motorcycle roaring down the highway, a young guy eyeballing a beautiful woman in a glass elevator. The ad eventually goes to a Cadillac CTS and Fishburne asks, “What happened to luxury? Where did the personality go?” The point, of course, is that Cadillac brings something new and edgy to the luxury market. The theme is “red-blooded luxury.”
Audi takes it a step further. On one of the German brand’s newest ads is an obvious play off the classic Margaret Wise Brown kids’ book “Goodnight Moon,” with a vaguely creepy animated fox fur and other classic luxury items such as a well-coiffed French poodle and gold cuff links. “Goodnight outdated. Goodnight stuffy,” the ad says. “Good night old luxury and all of your wares.” Then we see a Mercedes sedan. Its lights go out. The ad concludes with a beauty shot of an Audi A8 sedan and we hear, “good morning, innovation. Good morning, unequalled inspiration.”
Audi likes throwing down the gauntlet before its German rivals. The brand has taken on BMW several times. Audi actually staked its claim as the newest and coolest luxury brand several years ago with an ad that had an old rich man waking up to the grille of his big luxury car in his bed. It’s a knockoff of the horse’s head from “The Godfather.”
So who has the better shout? Both brands are growing fast, Audi sales rose 23% last year and Cadillac was up 35%. Cadillac sells almost 50% more vehicles. But in terms of burnishing the brand as the coolest newcomer, Audi has the edge. Its average buyer makes more money. The A8 is a legitimate competitor to the Mercedes S-class and BMW 7-series flagship sedans. Audi’s A4, which is smaller than the Cadillac CTS, attracts nouveau luxe buyers. Cadillac is still working on cars to battle it out in those two vital market segments. Plus, Cadillac marketers readily admit that they are trying to expunge the image of old, stuffy Cadillac. You have to appreciate the moxie shown by both brands.
It can only be a good sign that Detroit carmakers have the cash on hand to advertise in pricey venues like the Super Bowl. But in Chrysler’s case, the money for its “Imported from Detroit” ad for the new 200 sedan may have been better spent elsewhere. The commercial starts with gritty images of bleak urban ruins, smoke stacks and downtown Detroit set against a lead-grey sky. The narrator asks, “what does this city know about luxury?” As we see more images, rapper Eminem comes onscreen driving a Chrysler 200, which replaced the weak-selling Sebring sedan late last year. The opening riff to his tune “Lose Yourself” eerily starts in and Eminem cruises the city. By the end of the ad he walks into Detroit’s Fox Theater where a gospel choir is singing. He then points into the camera and says, “This is the Motor City. And this is what we do.” The imagery is nicely done and Eminem is cool, but this ad misses the mark for several reasons.
1. The 200 is the wrong car. No one confused the old Sebring with luxury and this car is an upgrade, but not a completely-new model. The 300 is Chrysler’s big, stylish, pseudo-luxury car for the gangsta set. No way Eminem drives a 200. His bag man probably wouldn’t drive a 200. The 300 would have been a better choice.
2. We didn’t see enough of the car. The ad is expertly shot and brings to life the idea of a tough and resurgent Chrysler and Detroit. It shows a side to the human side to Motown that most outsiders don’t know, but it shows so little of the car that it’s tough to conclude that Detroit, or more specifically Chrysler, can do luxury.
3. To the rest of the nation watching the Super Bowl, Chrysler is struggling to make it back and Detroit as a city has been left for dead. Trying to raise the prospects of both in one ad is, shall we say, extremely ambitious.
4. Troubled American car brands need to get away from gritty Detroit imagery. No one needs reminding that Detroit is a city in serious trouble and that two of the Big Three would have disappeared if not for a government bailout. Domestic brands have to change the conversation for generations of Americans who abandoned them years ago and for young consumers who don’t know them. Ford has been plugging quality and technology like Sync. Chevrolet and Buick have been talking about fuel economy, Bluetooth and 40-gig hard drives in the dash. Both ideas are getting traction.
Chrysler can boast that the 2-minute ad, which is long for a Super Bowl commercial, got the new car some much-needed attention. Auto research website Edmunds.com said that after the ad aired, 1,619% more people (about 8,300 in total) went to the site to look at the 200 than typically search for it on a Sunday evening. The problem with the comparison is that few people were looking at the car to begin with. Edmunds says that 681 people on average were shopping the car before the ad aired. An average of 15,911 typically shopped for the competing Hyundai Sonata. Will these new visitors buy the car? That will be the real test. The Sebring sold fewer than 25,000 cars last year. For comparison, Ford sold 219,000 of the competing Fusion. Chrysler got some sizzle with the ad, but there may not be enough substance to generate sales.
After my last missive gave a ‘thumbs down’ to Chrysler’s 200 ad, which aired during the Super Bowl, one reader asked for my take on Volkswagen’s “Darth Vader” spot for the Passat. Since more of you disagreed with my view on Chrysler’s Eminem ad than sided with me, I’m flattered. In VW’s ad, a young boy is marching around his house in a Darth Vader costume that must be the envy of the neighborhood. He tries to use The Force to get his dog to rise, open the dryer, move a sandwich across the counter, and all in vain. Finally, dad comes home in the Passat. Junior Darth starts with the Jedi gesticulations to get the car to do something. We don’t know what exactly. Dad uses remote start from inside the house to fire up the ignition. His son is shocked. He got the force to work. He thinks he started the car with Jedi mind tricks.
My take: It’s a great ad, and not just because I like John Williams’ score “Darth Vader’s Theme.” This ad is a lot of fun and shows once again that VW doesn’t take itself too seriously. VW’s marketing efforts have usually displayed some joie de vivre and consistently cast a fun image. They have done some more serious ads when talking about safety features, but generally VW’s marketing has been pretty loose. It’s a testament to VW marketing that the brand has so much recognition in the U.S., even though its actual sales presence is so small. About 19% of car buyers shop it, according to research firm Strategic Vision. But only 2% of Americans buy VWs. Fat sticker prices have long kept many buyers away. That may change as the new Passat starts around $20,000, which is a $7,000 drop from the last-generation car. Giving up so much price in the name of sales volume is a questionable strategy. For now, let’s stick to the ad. It was humorous and right for VW.
The Super Bowl is getting smaller in the rearview mirror at this point, but while I’m on it let me talk about one more ad. It must be said. Mini’s “Cram it in the Boot” ad was truly terrible. The theme is you can cram all kinds of things in the back of a Mini Countryman. But the fraternity house double entendre is beneath a car brand that has great cachet and appeals to a sophisticated buyer. They really missed the mark with that one.
When NASA released the results of a 10-month study on Toyota vehicles on Feb. 8 concluding that the automaker’s cars did not have an electronics problem that caused unintended acceleration, one of Bloomberg BusinessWeek’s columnists said the media owed the company an apology. There is no ghost in the machine and the intense media coverage caused a frenzy, Bloomberg BusinessWeek columnist Ed Wallace wrote. I know Ed personally and have tremendous respect for him. But I must part ways on this issue.
Toyota may not have had electronic throttle issues. But certainly the company had plenty of other problems. Just today, Toyota announced its biggest recall in a year. The Japanese auto giant recalled 2.17 million vehicles because of carpet and floor mat flaws that could jam gas pedals. Toyota has recalled more than 12 million vehicles globally since November 2009, many of them related to unintended acceleration claims. Of those actions, 5.3 million vehicles were recalled to fix floor mat problems. Some of the cars were recalled because of a sticking accelerator pedal. It may not have been electronics, but there were problems.
Toyota has had other investigations and recalls not related to unintended acceleration. Last week, the National Highway Traffic and Safety Administration opened an investigation into the 2006 Highlander hybrid amid claims that the SUV stalls frequently. In January, Toyota voluntarily recalled 1.7 million vehicles for potential defects in fuel pipes and pumps, Bloomberg reported. On Jan. 10, Toyota CEO Akio Toyoda told reporters that the recalls have inflicted “big damage” on the company, but he maintained that its cars are safe, Bloomberg reported at the time.
Back to the apology. While it’s clear that there is no mystery magnetic glitch in Toyota’s cars and that they are as safe as anyone else’s vehicles, forget the apology. First of all, investigations are news. So long as the media reports the conclusion, it’s in the public’s interest to know what’s happening. Second, Toyota’s lost its once-astute focus on quality. Rapid expansion of its model lines and sprawling archipelago of factories has made it difficult to mind every detail, which was a principal tenet of the company.
Consumer Reports has found a decline in the quality of interior finishes in Toyotas for the past three or four years, David Champion, the magazine’s director of automotive testing, told Bloomberg for a Jan. 12 story. The company whose customers once relied on Toyota for bullet-proof quality and reliability suddenly suffered a rash of problems. In fairness to my old pal Ed, some media reports accepted the unintended acceleration claims as gospel. But that alone does not exonerate Toyota. Sorry Ed, but it’s the customers - not Toyota - who deserve the apology. Toyota’s executives have apologized, and justifiably so.
Designed by Blogger Recursos created by ИЄИЄSIØ.