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The Persuader

My personal blog, started in 2006. No paid or guest posts, no link sales.



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16.07.2022

If corporate America says it, it’s probably untrue


Le dernier.
 
I see the Le Snak range has now left us, after its US owner PepsiCo cited a lack of demand. I call bullshit, since during 2021 it was becoming increasingly difficult to find them on the shelves. Throttling distribution is not the same as a lack of demand, something you see time and time again with corporate claptrap.

It’s like the myth that New Zealanders all prefer automatic transmissions. No, not supplying manuals will inevitably force people to change. Has the industry done a survey as I have? Last time I conducted one, in the 2010s, we were still running 50–50, with a lot of people saying, ‘I prefer a manual, but I had no choice but to buy an automatic.’

Ford is a useful example of US companies citing reduced demand but doing things behind the scenes to ensure it. The line that no one was buying big cars saw to the end of the road for the Australian Falcon and the closure of its Broadmeadows plant. Did any of you see any advertising for the Falcon leading up to that? Or see many Falcons on dealer lots? It seems to me that a corporate decision had been made, and steps taken to guarantee an outcome. Throttle the distribution (‘We’re out of stock’) and of course demand falls.

Get your tape measures out, and you’ll find the Falcon was smaller than the Mondeo (which at that point was still selling) on key measures other than overall length and, presumably, boot volume. The two-litre Ecoboost Falcon with its rear-wheel drive was promoted with all the energy of a damp squid, but it had all the ingredients for success as a decent-handling sedan. But Broadmeadows was an inefficient plant, from what I understand (from hearsay), and bringing it up to speed would have cost more than a bunch of Pinto lawsuits. ‘But there’s no demand for what it builds anyway!’ they cry. Then they can justify the closure.

Go back to the 1990s and the same thing happened with Ford’s Contour and Mystique twins in the US. People were buying BMW 3-series in droves, cars the same size as the Contour. But Ford claimed there was no demand, leading to its US cancellation after the 2000 model year. Reality: I say the Dearborn fiefdom didn’t like the fact the Contour was part of a world-car project (which gave us the original Mondeo) led by Ford’s Köln fiefdom. Not-invented-here killed the Contour, and a relative lack of promotion also guaranteed its fate. (Ford would wind up contesting the segment again later in the 2000s with the Fusion and Milan, but put far more effort into promoting them since they were US-led programmes. I actually saw advertising for them in US magazines! I saw a Milan in Manhattan with Mercury encouraging us to try it out!)

If you take the line that anything a big US firm utters is an utter lie, it keeps you in good stead. Use that approach with Facebook, for instance, and you’ll find things make sense more often than not. And of course we all knew what Elon Musk meant when he said he wanted to buy Twitter.

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Filed under: business, culture, marketing, New Zealand, USA—Jack Yan @ 23.53

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