Posts tagged ‘GM’


Fun for car anoraks—till you get to the factual errors

08.07.2017

I bought Steven Parissien’s The Life of the Automobile: a New History of the Motor Car, which started off as a good history. I’m 300-odd pages in now and the mistakes are really worrying. There’s also a shocking lack of editing (one part repeated, albeit in different language, and spelling and grammatical mistakes) in the parts I’ve got to now; it’s as though the editor got tired after the first 10 chapters and stopped caring. But the biggest errors are factual.
   I am astonished to learn, for instance, that Harley Earl was responsible for the concept of the Ford Thunderbird (p. 255), that Triumph TR7 production was transferred to Speke in 1982 (p. 293, though Parissien later contradicts himself with the correct fact), and that John Z. de Lorean was a protégé of Lee Iacocca (p. 309). I really have no idea how, but as far as I know, de Lorean was never at Ford, and he had a Chrysler stint long before Iacocca got there. I also never knew that ‘In 1968 the Toyota Corolla became the first Japanese car to be manufactured in the US’ (p. 314; that was the year it went on sale there, and from memory the Corolla didn’t get built there till the NUMMI deal in the 1980s) or that the Opel Ascona C was also sold as the Opel Vectra (p. 337). The Italian Job was released in 1969, not 1967 (p. 224).
   I am frustrated with this book—and now it makes me wonder if the stuff earlier on, which I know less about, was accurate.
   I can understand an editor not grasping the subject as well as the author but there is less excuse in professional publishing for the other problems. Maybe there are few professional proofreaders left, now that spellchecks have been around for a generation or more. I was prepared to recommend this book even a week ago and tolerated the spelling and grammar, but these factual mistakes are worse than what can be found in Wikipedia, and I often label parts of that site as fiction.

PS. (September 17): How much worse can it get, as I continued through? A lot.
   On p. 320, we get an admission that Parissien was wrong on p. 314: the Honda Accord was the first Japanese-branded car to be made Stateside. At least an earlier error was corrected. But they begin again on p. 321: Parissien claims the V30 Toyota Camry dominated the US mid-size car market (it was never sold outside Japan; he’s thinking of the XV10, or the Japanese-market Scepter, which was badged Camry). Correcting his error on p. 322, the Camry was not specifically targeted at the US; it was Toyota’s attempt to create an efficient car from the ground up, and it was not done in 1980, but 1982 (the 1980 Celica Camry was not sold outside Japan). The Paykan deal was cemented long before George Turnbull got to Iran (p. 324), though local content rose in the 1970s for it to be truly Iranian-made and Parissien might mean the shifting of the engine tooling there, if I’m being generous. There is only one world, not multiple ones (also p. 324), unless Parissien knows something about parallel universes that the rest of us don’t. Surely Chrysler managed to launch its T-115 minivan (Dodge Caravan, Plymouth Voyager) before Renault launched the Espace (p. 330), and the Triumph Acclaim was never called the ‘Ronda’ (p. 334), though its successor was.
   On p. 360, in a single paragraph, Parissien makes several errors. The MG 6 launched as a five-door car, not his claimed four. There is no such thing as the Roewe 150, in China or elsewhere. The MG 3 has five doors and is not a three-door counterpart to the 6. The five-door MG 6 launched not in 2011, but in 2010, and the Magnette name was only used in the UK for the four-door. The founder of Chrysler was Walter Chrysler, not Walther (p. 364). The Lancia Delta only became a Chrysler in the UK and Éire, as far as I know (p. 365), and remained a Lancia in most countries. The Belgian designer is Dirk van Braeckel, not van Braeckl (p. 368); Mercedes-Benz never bought an 18·53 per cent stake in Volkswagen (p. 369); and Citroën’s BX was not the last car in that range to have ‘pneumatic suspension’ (p. 372). The Malibu was not a Saturn, but a Chevrolet (p. 375), and Buick was never sold off (p. 376). The Ford Mondeo did not replace the Telstar in all Asian markets (p. 377), and it shared far more than the ‘windscreen, front doors and rear’ with the Contour and Mystique (in fact, the rear was not shared, though there were common engines, platform, and plenty more). It’s not entirely certain that the US market judged the Contour to be too small (p. 378), but there was a lack of marketing (which would have made an even better story than the one Parissien writes about). Ford subsequently filled the Contour’s niche with the smaller Focus Stateside. The CD338 Fusion was never sold in Australia (also p. 378). Ford never resurrected the Taunus in Germany under Alan Mulally (p. 381)—this invention is incredible. VAZ did follow up the 2101 with something similar after it ended production in 1983 (not 1984, p. 382), viz. the 2105, which was about as similar as one could get to the 2101.
   On p. 384, Parissien claims Acura’s Legend sales were ‘disappointing’, after saying they were ‘beginning to sell rather well’ 50 pp. before. The Hindustan Ambassador was not based on the 1954 Morris Oxford (p. 389): that car was actually the Hindusthan Landmaster. The Ambassador was based on the 1957 Morris Oxford III, and was in production from 1959, not 1958. The Red Flag (or Hongqi) marque was not reborn on an Audi A6 (p. 391), but the marque had been used on a version of the Audi 100 C3 from 1988, and no Hongqi bore an Audi–Chrysler–Hongqi brand name. The Chinese company is Dongfeng, not Dongfen (p. 391), and Parissien’s claim that the Everus was sold in the west (p. 392) is news to me, as I am sure it is to its own management. I’ll stop there for now.

P.PS. (September 18): Some bedtime reading, or should I say error-finding, last night. On p. 394, Toyota and Aston Martin did not jointly develop the Cygnet: Toyota developed the IQ in 2008, and Aston Martin converted that car to become its Cygnet, and ‘hot hatch’ is a very optimistic description for a city car. Toyota did not launch the Cygnet in 2008 as Parissien claims, nor did it have a say in what customers were expected to purchase the Cygnet: it was aimed specifically at existing Aston Martin owners, not ‘Toyota and Aston expected initial demand to be limited to those who already owned an Aston Martin sports car.’ It was certainly no ‘eccentric experiment’ of Toyota, but of Aston Martin. Volvo never made a model called the A40 (p. 395), and I bet Nissan is surprised to find that the original Qashqai was designed ‘at the firm’s Milan design centre’ (p. 397) when it was designed in London. Maserati never launched a Jeep-based SUV called the Kubang (p. 397), but it did have a concept of that name, and the Levante appeared in 2016 after the book was published. There is no such car as the Porsche Cajun, and if Parissien refers to the smaller Porsche crossover, then that is called the Macan, and it has five doors, not the claimed three (p. 397). The Volkswagen New Beetle was not on a Polo platform (p. 399), but a Golf one, as was its successor (though a newer Golf); and Ford would dispute that its Mustang is a sedan (p. 401). If J Mays’s first name is J (as footnoted), then there is no need to refer to him as ‘J. Mays’ (p. 401). The Ford Ka’s name is not derived from StreetKa (p. 402): that was a model spun off from the Ka in 2002; and some would regard the Mk II model was being superior to the Fiat 500 on which it is based (especially as Fiat adopted some of the changes for its own model). I have yet to see a Smart with a Mercedes-Benz three-pointed star or marque anywhere, unlike Parissien who seems to think they are badged Mercedes (p. 403), and a Smart SUV does not exist unless Parissien is reporting again from his parallel universe (p. 403). There is also no such car as the Kia Exclusive (p. 410).

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Posted in cars, design, interests, publishing, UK, USA | 1 Comment »


Selling Opel: what’s good for China is good for General Motors

15.02.2017


Above: The Opel Astra K: on the roster.

I’m not so sure that GM going into talks to sell Opel and Vauxhall to PSA (Peugeot–Citroën) is that big a surprise.
   We obviously hold a lot of nostalgia for these brands, and it’s only right that we perceive GM as selling its family jewels. Opel has made some great cars over the years, and Buick in China and the US, Vauxhall in the UK, and Holden in Australia rely on this division to provide it with product.
   But it wasn’t long ago that I said I foresaw the next Holden Commodore being a four-door booted model based on a Chinese Buick Regal that’s on the same platform. While I’ve been proved wrong with scoop photos and inside information from journalists in the immediate term, longer-term this doesn’t look so far-fetched, in a future where Peugeot owns Opel–Vauxhall and GM has no choice but to consider Chinese sourcing seriously.
   Therefore, GM isn’t thinking that it’s selling off the family jewels, at least the GM where Chinese partner SAIC is overwhelmingly calling the shots.
   What they are thinking is this: ‘We should be able to develop the whole lot in China.’ They weren’t nostalgic over Holden, and they won’t be thrilled with the losses at Opel. It’s willing to sacrifice it to make its own position stronger. We’ve already seen that SAIC has called it quits when it comes to British assembly at Longbridge—that’s now all done back in China.
   There’s been such a massive technology transfer from the US to China over the last few years that Europe is seen as surplus by the folks in Shanghai. They have all the platforms on which they can make products globally. They may even, rightly or wrongly, think that the remaining brands can get them into Europe, even if GM had pulled its Korean-made Chevrolets out of there.
   Holden can be used to westernize the product and the Australians have shown they can do it well.
   I’m not saying I agree with this, as a long-time Opel fan. I was looking forward to the new Commodores coming out of Rüsselsheim. The car looks the business, it’s roughly the size of the recently deleted Ford Falcon (therefore, I’m not sure why people are so upset about its size), and the majority of buyers don’t even know which set of wheels the power’s going to. I’ve got an Astra K coming in a few months at Lucire.
   What you’re going to see is GM basically being a Shanghai-run firm with China supplying global markets and the US operations kept going for their brand cachet.
   In the meantime, a hypothetical PSA-run Opel will continue with the existing plans till the end of these models’ life cycles, then China will become the manufacturing hub for numerous markets.
   SAIC already makes a load of Cadillacs, Buicks and Chevrolets for the domestic market, and they’ll want to pump them out more widely.
   They’ve also shown that they can take new GM platforms and turn them into Roewes—or old GM platforms and turn them into Baojuns.
   PSA, meanwhile, with 14 per cent controlled by Chinese firm Dongfeng, will pursue a strategy of streamlining platforms and be focused more on Europe. It could pay off as cross-town rival Renault has done well with Nissan, Mitsubishi, Samsung, Dacia and AvtoVAZ, but it won’t nearly be as secure. The two French groups have been obsessed with one another for as long as I can remember, for years spending more time rivalling each other than actually coming up with what customers wanted.
   Dongfeng may have to cough up more lolly and it could become a larger shareholder than the Peugeot family or the French government. But will it have the sort of geographical coverage that Renault has?
   That’ll be what PSA will be asking itself, knowing that it’s reasonably strong in China—but also realizing that it hasn’t been clever at creating models that can be sold globally (the current Citroën C6, DS 5LS and the DS 6 among them, sold exclusively in China). Nevertheless, there are savings to be had, though the most obvious fear is that Opel and Vauxhall will go the way of Panhard and Talbot, brands that fell into either Peugeot or Citroën’s hands over the years and become defunct at the expense of the parent companies’. Is there a desire to extend the group’s brand portfolio beyond Peugeot, Citroën, DS, the various Dongfeng lines, and the ex-Hindustan Ambassador?
   The official statement is non-committal enough and gives nothing away: ‘PSA Group and General Motors confirm they are exploring numerous strategic initiatives aiming at improving profitability and operational efficiency, including a potential acquisition of Opel Vauxhall by PSA.
   ‘There can be no assurance that an agreement will be reached.’
   In any case, we always said that SAIC was playing a long game. MG was a toe in the water. GM is the real deal.
   Controlling GM means they can do as they please, and what’s good for China is good for General Motors.

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Posted in branding, cars, China, culture, design, leadership, marketing, media, USA | No Comments »


Why the next Holden Commodore will have a traditional boot

01.12.2016


Above: The Holden Commodore SS-V, facing its last year of manufacture.

The current wisdom appears to be that when the Holden Commodore VF leaves production in 2017, it’ll be replaced by the liftback version of the Opel Insignia B. After all, the only big sedan Ford Australia’s offering in place of the now-defunct Falcon is the liftback version of the Mondeo, a car that’s wider, taller, and with a longer wheelbase than the supposedly larger Falcon. I think the crystal ball-gazers are wrong.
   I could say that the Australian and New Zealand big car buyer is very traditional and would balk at the idea of the big Holden being a hatch. But that’s not the only reason. There’s a bigger one: China.


Above: GM currently makes the Opel Insignia A-based Buick Regal in China, after initially beginning with German production.

   At the moment, China makes a version of the Opel Insignia A locally, and it’s a four-door sedan with a traditional boot. They badge it as a Buick Regal, a nameplate that’s arguably got stronger goodwill in the Middle Kingdom than in the US, even if it’s been running Stateside since Kojak drove it on the streets of Manhattan. And the Chinese like their traditional sedans: it’s a market where liftbacks aren’t kosher.
   While Holden says the next Commodore will be sourced from Germany, and the media speculate that the Germans won’t get a four-door sedan, it’s not to say that one hasn’t been developed. And we’re not exactly missing precedent for a country to tool up for a body style that isn’t offered domestically. We need look no further than GM itself, which was selling the Opel Antara into Europe, exporting it from Korea, years before the same model was available domestically as a Daewoo.
   While Australia and New Zealand will account for quite tiny numbers, you have to think about where else a Stufenheck Opel Insignia B might sell. How about the Middle East, where it could complement the Chevrolet Malibu and Impala as a sportier counterpart? Or South Africa, which would also welcome right-hand drive? Could China take some as Regals in advance of SAIC–GM tooling up for its own version? It’s all conceivable.
   There’s also a possibility that Holden will start off sourcing the next Commodore from Germany, and switch to Chinese production when the Buick Regal is ready. SAIC owns the majority of its venture with GM these days, and calls the shots. What’s good for General Motors is good for China, as the saying goes. And it could well determine that one of its plants, either in China or in Thailand, where plenty of Australasian-market cars are sourced from, could be the production site of the 2019 or 2020 model. (Korea has been ruled out already, according to The Wall Street Journal.)
   GM has switched sources mid-run before, and happily used the goodwill of German engineering when introducing a vehicle made with cheaper labour. Forty years ago, after selling German Opels for years, it began selling the Opel Isuzu from Japan: it was the Isuzu Gemini, the Japanese counterpart to the Opel Kadett C world car. The following year, 1977, the Opel Isuzu became the Buick/Opel. The Japanese origins were eventually hidden. The 2008 Regal, meanwhile, was originally sourced from Germany until SAIC was ready with its locally made version.
   In this day and age, when global-market Renaults and Fords come from Turkey, Nissans and Suzukis from India, and Fiats and Volkswagens from México, no such name changes will be needed. If the quality is good enough, ‘made in China’ won’t be that strange a concept. No one seems to have much of an opinion, or a stereotype, over ‘made in Thailand’—yet we buy plenty of product from them.
   GM isn’t likely to sleepwalk into this transition as it did pre-GFC. Then, the company was ill-prepared, prepared to splash money around on different platforms. The leaner 2010s GM will want to grab every sale it can, and I don’t think Aussie or Kiwi buyers are going to flock to the showrooms for a Commodore hatch, even if it looks like a Porsche Panamera.
   They won’t necessarily care that the new model is a better handler, with powerful engines, better economy, a lighter weight, and a decent interior. They could notice that shoulder room has gone down a fraction. There’s a certain conservatism to this market, and the idea of a hatchback just might be too foreign for this group.
   And if they can supply it, with the Chinese Buick Regal waiting in the wings, then why not maximize sales?
   When the four-door Commodore débuts in Australia next year, after its début in Genève as the Opel Insignia, the General will again have one over arch-rival Ford when it comes to big cars.

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Posted in business, cars, China, globalization, marketing, USA | 1 Comment »


How can we help those fooled into believing what their local brands are?

06.01.2016

How interesting to see a silly Tweet of mine make the Murdoch Press and lead an opinion column—I’m told it even hit the news.com.au home page.
   It’s a very old joke that I’ve told since 2002, when I walked along Bay Road in Kilbirnie and saw a locksmith sign in Futura. Back then, Dick Smith Electronics had its logotype set in ITC Avant Garde Gothic. I really thought it was a Dick Smith sign at a first, fleeting glance, seeing CKSMITH. The joke was born.
   Most in my social media streams got it except a couple of Australians who had likely come across it via Murdochs a day late, one calling me ignorant (not sure how you can get that from one Tweet), and another ‘ahole’ (is this a misspelling of aloha?). As the funniest guy in their media is John Clarke, who was born in New Zealand, maybe humour doesn’t reach a couple of households there if it has to be imported. And the number of times John’s taken the piss about us, to my thorough enjoyment, means that some of us can take a joke. Perhaps we just have a sense of humour. We have to: it was the only way we could deal with our PM appearing on The Late Show with David Letterman. It is, to quote the man, ‘a bit of banter. No drama.’
   The false indignation “on behalf of others” is always a comical one, because it’s usually founded on a misplaced and unjustified sense of superiority. During a political campaign, they’re the ones I find the most humorous and least authoritative. Thick skin came with that territory.
   Neither deserves a response beyond what I said on Twitter, but the second one (with a fresh new account to troll from, always a good sign of someone who won’t stand by their words) highlights a point that I have made on this blog before.
   “Ruby Pond” notes, ‘The guy is pure Oz and started when you were in nappies and tried! Stick to your foreign companies, they really help Oz.’ I’m not sure what I was tried about, not having been to court while I was in nappies, but maybe she’s depending on the fact that not everyone remembers back to their infancy.
   Well done. She got this from an American-owned newspaper website (remember, Rupert’s no longer an Australian, nor is the HQ in Australia and hasn’t been for a long, long time), and, for the record, I’m not as old as the business that Dick founded. There’s also a suggestion that I must be Australian, because, after all, everyone on the planet must be. No other countries exist. I didn’t want to get into trans-Tasman rivalry in such a situation, nor was it appropriate to give a list of Australian corporate misdeeds in New Zealand. The term off-topic springs to mind.
   I told her, ‘Stick to your foreign media, they really help Oz.’
   Hers is that simplistic thinking that gets people supporting foreign-owned businesses when they believe they are supporting local ones.
   Dick’s been one of my personal heroes since his solo helicopter flight and I’ve been a customer of the chain he founded since I was old enough to buy my own tech gear. Entrepreneurs like him are the ones I’ve always encouraged, through mentoring and through my policies. However, the sad story of the company, no longer owned by Dick, is one of corporate greed—which the founder himself has been critical of. We haven’t learned the lessons of so many economic crises: Gordon Gecko’s mantra of ‘greed is good’ continues to drive the corporate world.
   The reason so many multinationals buy local brands is to fool the public into thinking they’re supporting their own. We’re guilty of it ourselves, and I recall using the examples of Just Juice and most of our local newspapers on this blog. People closed accounts at the National Bank when it became ANZ here, because of a suspicion of, dislike of, or rivalry with Australia, perceiving National to be a local bank. The problem there: ANZ had owned the National Bank for years before the rebranding of its own subsidiary, and prior to that it was part of Lloyds TSB in the UK. A lot of Australians think Ford and Holden are domestic players (though, oddly, not Toyota, which probably builds as many, if not more, cars there), just as many Britons still think they are buying British when they shop at Ford and Vauxhall.
   The situation with news.com.au differs slightly in that that business was started in Australia by Rupert Murdoch’s Dad, and it has grown from there—but the fact remains that its HQ is overseas and that’s where it pays its tax. Help to Australians: not a lot. The Murdoch Press’s globalization agenda won’t be one that the “buy Australian” crowd would support for the most part.
   But this is how brands work, because they encourage us to make mental shortcuts for the products and services we consume. I’ve devoted a good deal of my professional life to it. Some should encourage scrutiny because of the power they have (Wally Olins noted, many years ago, how some brands need to adopt notions that were once reserved for states), and it was hoped that, post-No Logo, we would be more inquisitive about the backgrounds to the organizations we support.
   Even though it’s our money and time, the sad thing is that this level of inquiry remains the province of the few, those people who are willing to scrutinize their own behaviour and practise what they preach. Social media have helped spread news of corporate misbehaviours (Volkswagen will attest to that) and more people are aware; but to counter that we get more information than we ever used to, and unless something resonates, will we just forget it?
   Therefore, it can only be something where people who have done the proper investigation get to have a say. And like all human endeavours, it can be scammed, so safeguards have to be built in.
   One of the reasons the Medinge Group awarded its Brands with a Conscience accolades for close to a decade was to champion the organizations that were getting it right, inviting transparency and scrutiny, championing good corporate citizenship, and engaging in socially responsible programmes. Among them were companies devoted to doing things right by the communities they were present in, whether it was Dilmah Tea, Tata Steel or Hennes & Mauritz.
   By our championing them, selected by a think-tank of leading brand professionals, we would be able to highlight shining examples of branding, as well as give them the sort of boost they deserved. If positive companies could increase their custom, and if positive non-profits could increase their influence, then we can do some good in the world.
   As people rightly want shortcuts in their busy daily lives, then the work at Medinge, if seen as an endorsement, would help them make a decision about whether to deal with that organization or not.
   It’s nice to be in that bubble, which makes me ever-grateful to get reminders that we still have a lot of work to do. If you’re genuinely desirous of helping your own, then we need to help create more ways of reminding people which organizations do just that. The Brands with a Conscience programme was definitely a very good way of doing it. What shall we do, in the post-peak-Facebook world of the second part of this decade, to get word out? Is it through video, thanks to greater bandwidth, that allows us to experience and understand more? Is this the coming of age of some form of virtual reality? Or, as we did when we first started exploring bulletin boards and email, time again for us to reach out to people in communities very foreign and different to ours through video chats—something like Google Hangouts but actually with people? (Yes, I know, Google fans, I was taking the piss.) Is Skype the service on which this can be built?
   I would have said that technology is the great democratizer, and maybe more of us should be giving out awards to truly deserving organizations, voted on by more of the public. But we come across the issue of quality versus quantity again: the Reputation Institute surveyed 60,000 people in 15 countries and still wound up with Nestlé among the most reputable firms in the world. Nestlé may do very good things in some quarters, but it hasn’t been able to avoid a lawsuit by environmental and public interests groups in California over its water-bottling operation there, or accusations by activists who believe the company wants to privatize water at the expense of public health. Volkswagen was there in the 2014 survey. We decide on image, and that image is the very thing that gets us making bad choices.
   The next innovators are already on to it, and we don’t even know that we seek it. But, in order to self-actualize, maybe organizing us—individuals, not corporations—into global communities is the next stage. We have seen Kiva work so positively, so how about making it more interactive? Naturally we will tend to choose to help those in our own countries first—crowdfunding campaigns show us that—but allowing us to understand another human being’s situation could be the challenge in a time when governments pursue their austerity agenda. Somehow, we can restore, at least to some degree, the optimism we had when we in the first world accessed the World Wide Web for the first time.

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It’s all going fines at Volkswagen

05.01.2016

Volkswagen Golf VIIGeneral Motors’ fine in 1995 for 470,000 cars using defeat devices against EPA testing: US$11 million. Volkswagen’s fine in 2016 for 580,000 cars using defeat devices against EPA testing: potentially US$40,000 million (or $40 billion, as the Americans say). The local companies get off far easier in the US. In fact, GM can even get a US$49,500 million bail-out from Uncle Sam. I realize there’s a difference between a settlement and a claim, but I wonder if Volkswagen’s going get away with paying less than a figure in the milliards.

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Volkswagen’s scandal won’t spread to other German car groups

24.09.2015


If you want a humorous take on what happened at Volkswagen this week, the above video sums it all up.

During my 2010 mayoral campaign, I noted that if New Zealand did not diversify its economy to have more of a focus on technology, there could be a problem. Relying on primary products (I didn’t say dairy specifically) wasn’t something a western economy should be doing and, of course, one signal that things would change in Wellington would be my idea for free, inner-city wifi. I wasn’t trying to be a smart-arse; I was just pointing out an obvious fact, one that has taken many years for others to be concerned about, with Fonterra payouts dipping. News travels slowly.
   Right now, this Reuter article (sorry, folks, having grown up in New Zealand where ‘NZPA–Reuter’ was in the newspapers every day, the plural form doesn’t come naturally to me) suggests that the Volkswagen débâcle could harm other German car makers. How great that harm is depends on how tied those brands are to the German nation brand. The danger is, according to the article, that with the German car industry employing 775,000 people, and car and car parts being the country’s most successful export, a dent in their reputation could have drastic effects for an economy. According to Michael Hüther of the IW economic institute, the car industry is at the core. Having other industries that are strong is important to any economy, and Germany has ensured that, despite one taking a knock, it has others that will keep it ticking over. Nearly 70 per cent of the German economy is in services. There will be worries in foreign exchange, but I doubt we’re going to see other German car makers tanking because of this.
   But Volkswagen, some argue, is very wedded to the German psyche. Its founding, which no one really talks about because you’d have to mention the war, ties it to the state, and its postwar resurrection was borne out of the British Army wanting to get the people of the former KdF-Stadt some gainful employment. It was the great German success, the company whose Käfer became a world-beater, overtaking the Ford Model T in terms of units made.
   The VW symbol is very German, borne from their graphic design ideas of the 1930s. The German name, the quirkiness of the Käfer, its relative reliability, and its unchanging appearance probably tied VW and Germany closer together in terms of branding. For years, you would associate Volkswagen with ‘Made in Germany’, just as you would with Mercedes-Benz and BMW, even if a sizeable proportion of their production is not German at all today. (Mercedes and BMW SUVs are often made in the US; Volkswagen makes its Touareg in Slovakia. Volkswagen is one of the biggest foreign players in China, and in Brazil it’s practically considered a domestic brand.)
   Think of the postwar period: Germans weren’t always smart about how to market their cars. BMW had a bunch of over-engineered cars that were completely unsuited to the market-place, such as the heavy, baroque 501; it wound up making the Isetta under licence toward the end of the decade because it was in such deep trouble. Volkswagen eschewed fashion in favour of a practical little car that, too, placed engineering ahead of marketing fads. From this, the idea of German precision engineering was enhanced from its prewar years, because engineering was, by and large, top priority. Mercedes-Benz, being far more successful at selling its luxury cars to the rich than BMW, cemented it and added cachet and snobbery.
   It was only the foreign-owned makers in Germany that went for fashion, such as Ford and Opel, selling convention to the masses wrapped in pretty clothes: the Ford Taunus TC had styling excesses demanded by Ford president Bunkie Knudsen at the time of its development, but it broke no new ground underneath.
   Nevertheless, any time Ford sources from Germany, whether it’s for the US market or here in New Zealand, the notion of “German precision” seeps through in the marketing; when the sourcing changed, as has happened with the Focus here, it’s very quietly dropped. The German car manufacturers carved themselves a nice, comfortable niche, thanks to an earlier era which, to some extent, no longer exists.
   Mercedes-Benz decided it was not about ‘Made in Germany’ some years ago, favouring ‘Made by Mercedes’, and turned itself into a marketing-led organization; quality suffered. Volkswagen, in its quest to become the biggest car maker in the world, and the master of everything from Škoda to Bugatti, did what GM did years before, by allowing each brand to maintain its character but sharing the stuff that customers didn’t see. It, too, became more marketing-led, and it’s not had a stellar performance in owner surveys for a while.
   You could say that there has been a gradual separation between the brands and what we hold about the German national image in our minds. The “Germanness”, which once accounted for the companies charging a premium, has been decreasing; Volkswagens, in many parts of the world, are affordable again, even in the US where the NMS Passat is built locally in Tennessee. South African- and Mexican-sourced Volkswagens in New Zealand are cheaper in constant dollars compared to their predecessors of a generation before. The German image is not gone altogether—the name, graphics and the æsthetic of the product see to that—but it does mean the effects of the scandal might not spread to other brands as much as some commentators think.
   The original study that showed Volkswagen was cheating on its emissions’ tests in the US, which is nearly two years old by now (it makes you wonder why it only surfaced in the media this week), also showed that BMW performed better than what it claimed. It’s not impossible for the other manufacturers to separate themselves from Volkswagen, because their individual brands have become strong. Thanks to the weaker relationship between Volkswagen and the German brand, this scandal will likely confine itself to the single car group. It’s not great news for the world’s biggest car maker, but its compatriots should see this as an opportunity more than a threat.

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Posted in branding, cars, culture, globalization, marketing, media, USA | 2 Comments »


Autocade hits 6,000,000 page views: a few quick figures

09.05.2015

The Dongfeng Fengshen AX7, or a Renault with a Peugeot engine (and I don’t mean the PRV V6 or the old Douvrin), entered into Autocade this week.

With Autocade hitting 6,000,000 page views earlier this week, here’s a quick anorak’s run-down on the rate of growth. In short: it’s about the same in terms of page views, one million every eight months.

March 2008: launch
July 2008: 500 encyclopædia entries (four months for first 500)
December 2009: 1,000 (17 months for second 500)
May 2011: 1,500 (17 months for third 500)
December 2012: 2,000 (19 months for fourth 500)
June 2014: 2,500 (18 months for fifth 500)
December 2014: 3,000 (six months for sixth 500)

March 2008: launch
April 2011: 1,000,000 page views (three years for first million)
March 2012: 2,000,000 page views (11 months for second million)
May 2013: 3,000,000 page views (14 months for third million)
January 2014: 4,000,000 page views (eight months for fourth million)
September 2014: 5,000,000 page views (eight months for fifth million)
May 2015: 6,000,000 page views (eight months for sixth million)

   I’m happy that it’s become a useful resource for so many people. Another blog update when we hit another milestone, but if cars are your thing, pop by to the website or the Facebook page (where there are more auto-trivia).
   The latest entries are from the Dongfeng range (the Fengshen AX7 SUV has just gone up as the 3,170th model line—or, as I cheekily put it, a Renault with a Peugeot engine): one model line short of having all the current ones up. With the growth of the Chinese market, it is important for one site, at least, to chronicle the changes there. We’ve steadily been filling some of the gaps at the old US Oldsmobile brand, too, with all the Toronados now in Autocade.

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Posted in cars, China, internet, media, USA | 1 Comment »


Reacting to AJE’s Broken Dreams: are there parallels between GM and Boeing’s 787?

12.09.2014


Simpsons fans should be able to connect the above scene with the post below.

I’m sure some of you watched the al-Jazeera English documentary this week on the Boeing 787, and how there are safety concerns over the models built in South Carolina. In summary, ‘Al Jazeera’s Investigative Unit and reporter Will Jordan investigate Boeing’s 787 “Dreamliner”, finding some workers with quality concerns, alleging drug use and fearing to fly the plane they build.’ Even if you don’t watch the full 48 minutes, the links on the page make for interesting reading.
   I’m not usually one to take a TV programme at face value, but I admit this one piqued my interest. Enough for me to Tweet Air New Zealand last night to ask them their thoughts and the airline responded this morning:

Safety is paramount and non-negotiable at Air NZ. We remain completely confident of the safety and reliability of the 787-9.

which does sound a bit like a press release. Hackneyed? Yes, and totally unlike the human face that Air New Zealand generally takes with its Twitter account.
   Call me cheeky, but I responded with:

That’s what BOAC said about the De Havilland Comet. Will you check into these new allegations about the Hillbilly 787s?

(I accept that that was not a good term to use and I apologize for it) and added later:

Can you guys at least watch the doco or confirm to me that someone senior enough has, and then convey your thoughts?

   The documentary was quite damning about the 787s, and the US system failing consumers these days (just think about GM), I think I’ve every right to be worried. Air New Zealand, even more so. When whistle-blowers like John Woods are fired, something is rotten. If consumers don’t trust ‘Made in USA’ any more, then we need to be assured that we’re getting the best planes made by the best workers—and traditionally, those workers are the Washington state ones.
   Surely there are parallels here. Here’s what happened to GM quality manager Courtland Kelley:

It described employees passing the buck and committees falling back on the “GM nod”—when everyone in a meeting agrees that something should happen, and no one actually does it …
   Kelley had sued GM in 2003, alleging that the company had dragged its feet addressing dangers in its cars and trucks. Even though he lost, Kelley thought that by blowing the whistle he’d done the right thing and paved the way for other GMers to speak up. Now he saw that he’d had the opposite impact: His loss, and the way his career had stalled afterward, taught others at the company to stay quiet …
   Kelley had been the head of a nationwide GM inspection program and then the quality manager for the Cobalt’s predecessor, the Cavalier. He found flaws and reported them, over and over, and repeatedly found his colleagues’ and supervisors’ responses wanting. He thought they were more concerned with maintaining their bureaucracies and avoiding expensive recalls than with stopping the sale of dangerous cars. Eventually, Kelley threatened to take his concerns to the National Highway Traffic Safety Administration. Frustrated with the limited scope of a recall of sport-utility vehicles in 2002, he sued GM under a Michigan whistle-blower law. GM denied wrongdoing, and the case was dismissed on procedural grounds.

and what happened to Woods (who also lost against Boeing and its team of lawyers):

There was some animosity between quality and production. I would bring up a quality concern and they would say, well, that’s not helpful to production.
   On several occasions, I would go check out these repairs while they were being done and after. There are inspection points all throughout the repair process where an inspector is supposed to come over and check something and mark it down that he checked it.
   You’re never supposed to go past an operation that’s not checked off. I would see a defect and I’ll look at the inspection sheet and there was no note of it, and I know in the specifications that all anomalies, even small anomalies, are supposed to be recorded in the inspection.
   So I would bring an inspector over and show it to him and say, “Could you please note this down in your inspection?” And they say okay, so I’d walk away. Then I’d come back later that day or the next day and it’s still not noted.
   So then I would go mention it to the supervisor and go back another couple of days and still not noted. It became very frustrating on several occasions, to the point where people were angry at me for bringing it up.

   If we cannot trust the NHTSA over GM, can we really trust the FAA?
   As a New Zealander, I would like our national airline to assure us that we’re not getting lemons, and just how we can be sure that we’re not the guinea pigs for testing the planes like those early Comet passengers were.

Boeing’s response to the al-Jazeera programme can be found here.
A review questioning al-Jazeera’s objectivity with claims there were biases can be found in Forbes.

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Posted in business, culture, media, New Zealand, TV, USA | No Comments »


Ford spoofs Cadillac with a more realistic commercial

29.03.2014

First up, the Cadillac ELR TVC, with actor Neal McDonough boasting about the US’s consumer culture and past glories:

   And now, Ford parodies it with a far more down-to-earth and realistic message about what we should be praising in the occident, starring environmental advocate Pashon Murray, who runs Detroit Dirt, a composting company:

   The parody is quite enjoyable and I’ve a feeling this will appeal to a wider audience than the original. However, for those who haven’t seen the original, it’ll up its views. GM is unlikely to be displeased, and the Ford Grand C-Max (or just C-Max in the US) is not a direct competitor.
   Even though it’s not original, the newer commercial—sans Muhammad Ali and the Apollo programme—feels more responsible and in tune with where we are in the 2010s.

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Posted in business, cars, marketing, USA | 2 Comments »


Flip-flop again: GM deems Chevrolet Europe strategy a failure

08.12.2013

GM has changed its mind again: Chevrolet will not be its global brand.
   The strategy, where Daewoo was rebadged Chevrolet in western Europe at the beginning of the century, has been deemed a failure, and GM will withdraw its core Korean-made models such as the Spark, Aveo, Cruze and Malibu, by 2015. It will return to where it was a few decades ago: a brand selling quintessentially American cars such as the Camaro and Corvette.
   For many years on this blog, I expressed my doubts on rebadging Daewoos, either as Holden or Chevrolet. If GM wanted a budget brand, it had one in Daewoo. With the exception of the Malibu, the cars always looked Korean anyway, despite some US (and Australian) styling input, and Kia and Hyundai demonstrate that there is no negative brand equity these days with ‘Made in Korea’.
   It was impossible for GM to shake off Chevrolet’s American country-of-origin effect in the last decade in western Europe. GM also believes that having Opel and Vauxhall as its mainstream western European brand is enough.
   The theory wasn’t all wrong though. In the last decade we’ve seen the continued rise of Škoda, and Dacia has managed to find buyers. Nissan has brought back Datsun in an effort to appeal to cost-conscious consumers who want a simple car. Daewoo could have had a role to play in Europe, if GM had got the marketing right.
   It also seem to have got things wrong with Opel in Australia, pulling out after an even shorter time.
   I seem to be correct again when I argued that brands like Holden could not be abandoned in favour of Chevrolet, because you can never rely on GM for a long-term strategy. There are no economies of scale in promotion when Chevrolet simply isn’t as well regarded outside the Americas, and where we consumers are still quite happy to use certain domestic or regional brands as mental shortcuts to cars being sold as domestic appliances. Levitt isn’t to be applied blindly.

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Posted in branding, business, cars, globalization, marketing, USA | 2 Comments »