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Personally, I don't get it. According to the latest report on domestic auto sales by J.D. Power & Associates, US auto makers saw an 11 percent decline in retail sales through the first 15 days of January when compared to the same time period a year ago.
GM and Ford retail sales declined when compared to early January 2005 with GM down 28 percent and Ford down 25 percent. DaimlerChrysler was also down 13 percent when compared to the same period in 2005. Among the nine multi-franchise new-vehicle manufacturers, Hyundai and Toyota have had the best retail performance thus far in January. Retail sales for Hyundai were up 19 percent (Go Bevis! Go Bevis!) and Toyota Motor retail sales were up 9 percent compared to the first half of January 2005.
Paul Taylor, the chief economist for the National Automotive Dealers Association, forecast that 2006 light vehicle sales would slip to 16.8 million units, down from 16.94 million in 2005.
Taylor states that while U.S. economic indicators were mostly positive, higher financing costs would start to weigh on sales. He notes that it took over 26 weeks of the average worker's pay to buy a new car in 2005, a sharply higher reading for a key index of affordability that had been flat or falling over the prior eight years.
Surveys show that when consumers are past the awareness stage, they are more engaged in the buying process. Traditionally, auto advertising has been most effective at this point. Especially print advertising. But in fact, internet advertising on auto sites is nearly five times more effective at improving purchase intent/consideration than the average impact on consumers from print and television advertising.
Since these on-line messages reach consumers while they are further along the purchase funnel, it is not surprising that advertising on auto sites can have a greater persuasive impact then on every other media. People who are in the market to buy a vehicle are more likely to be receptive to messaging about pricing deals and product differentiation on their primarily source for auto purchase info. Duh. So on one hand we have Americans working harder to pay for a new car than ever before, and on the other we have the slide of print and television advertising into online. And what do we have from the auto makers? Blah, blah, blah.
I mean, have you seen some of this crap? First of all, I defy any sane human being to delineate the difference between a Camry and an Elantra. Or their advertising for that matter.
Now I've worked on Ford, Chevrolet and Chrysler. I have sat in the mind-numbing meetings where engineers went to great lengths to explain product differentiators that defy detection with a fucking microscope. These "car guys" are all talking to themselves. And with the exception of Hummer, Land Rover, Corvette and perhaps Jeep, everybody else is "me too" whitebread.
I remember applauding the Miata, until I saw James Bond driving a BMW that looked just like it with the exception of a cleft lip grille. Ridiculous.
All it boils down to is that, with perhaps the exception of the advertising for the Mini, everything is a blur. The nameplates are a blur. The creative strategies are a blur. The product styling is a blur. The price point positioning is a blur.
I remember how excited I was at seeing the PT Cruiser when it was unveiled at the Los Angeles Auto Show. "Now here is a car an agency can do something with. I was waiting for them to hire Robert Stack (Elliot Ness) or Warren Beatty (Clyde Barrow) as the launch spokesman. Get Frances Ford Coppola or Marty Scorsese to shoot the first spots. It was a no brainer, I thought. And of course there were no brains used in the marketing effort. The car was successful in spite of the lackluster marketing effort that supported it.
A car is no more than a family tool. It is depended upon to perform a number of jobs. Yet no automobile advertising addresses that fact. It is the second most expensive item that most of us will ever purchase. Yet no automobile advertising addresses that fact. Once there was tremendous brand loyalty among automotive consumers. My father was a "Buick man." Smokey Robinson's father was a "Caddy Daddy." I've owned eight Corvettes in my lifetime. (Two marriages forced me into a Volvo station wagon and a Toyota SUV. Blech.) Now, brand loyalty has gone the way of tail fins and spinner hubcaps.
The great American love affair with the automobile is on the rocks. Now it's just a way to get from point A to point B.
At last week's Square Table discussion in the Red Room at GASP, one of the participants remarked that the only car he had ever held an affinity for was the BMW that saved his life when it DIDN'T swerve off the road and down a 30 ft embankment when he pounded it through a rain slicked curve up in the Angeles Forest. He gave the Beemer the job of getting him home safely. It did its job well. For him it was, as my buddy Tom Thomas penned, "The Ultimate Driving Machine".
Stay
tuned.
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