August 9, 2010
Automakers Pulling Out Stops to Re-Image Minivan
According to the Houston Chronicle, when it comes to marketing the all-American family van to the all-American family, automotive companies seem well aware that they need to, well, compensate. Toyota created a YouTube video about the Swagger Wagon, a tongue-in-cheek series for the Sienna in which a nerdy couple raps. Click here to watch the video. Sara Pines, spokeswoman for American Honda Motor Co., considers the hurdle the misperception that "anything that offers so much function may not be as much fun." Honda releases the 2011 Odyssey, the country's top seller, in the fall. Pines said vans offer fun as well as function. "We think you can have both," Pines said. "I think most of our competitors in the market agree." The attempt at both was part of the Odyssey's marketing campaign for its last iteration of the Odyssey, the Respect the Van marketing plan. If not exactly testosterone-fueled, the idea was to make sure the world was giving the van its props. As part of that campaign, Honda produced a funk-themed commercial now available on YouTube that announced: The Van is Back. Click here to watch the commercial. With some lava-lamp lighting and help from the George Clinton P-Funk classic Give Up the Funk, the minivan seemed to get its groove back. Click here to read more on what automakers are doing to reposition the minivan in the minds of consumers.
Electric Cars Face Bumpy Road to Acceptance
MSNBC reports that skeptics question the viability of electric vehicles, citing their high cost and limited range as factors that could minimize demand. Analyst Joe Phillippi of AutoTrends Consulting said he was surprised by GM's decision to price the Volt at $41,000. There's no question the price tag is high, especially when compared with the other major battery car launch scheduled for late this year. The Nissan Leaf will come in just under $33,000. Like Volt, it will also be eligible for a $7,500 federal tax credit, which will bring the Nissan offering down to around $25,000, while Volt will have a transaction price of around $33,000 after the credit. The near-simultaneous launches of the Leaf and the Volt will give the industry a chance to see how potential buyers receive two very different approaches to battery power. Volt, often referred to as a plug-in hybrid, or PHEV, is vaguely similar to current hybrid vehicles, such as the Toyota Prius, in that it combines a gasoline engine and electric drivetrain under one hood. The Leaf, on the other hand, is a pure battery-electric vehicle, or BEV, which is expected to get nearly 100 miles of range per charge. At that point, should it run out of power, it could be stuck without a place to plug in. Part of the challenge will be educating the public on the advantages of specific battery-based products. There is also, of course, the basic question of whether either model will make financial sense. Click here for the challenges awaiting electric vehicles GM and Nissan bring their models to market.
Upbeat Toyota Raises Sales Forecast for N. America
An increasingly confident Toyota Motor Corp. has boosted its North American sales forecast. According to Automotive News, Toyota now expects to sell 2.17 million vehicles in North America in the fiscal year that ends March 31, 2011. That's up from its previous forecast of 2.13 million units and would be a 3 percent increase over last year's sales of 2.098 million units. The company is recovering steadily from its first operating loss in seven decades. Toyota has recalled 11.2 million cars worldwide since last fall to fix a variety of problems. In the first quarter of its fiscal year Toyota returned to the black in North America. Toyota's positive outlook comes as the automaker begins production of its Tacoma pickup truck in San Antonio, Texas. The Detroit News reports that Toyota has hired 1,000 new workers and invested $100 million to produce Tacomas on the same line as Tundras, bringing the total investment in the plant to $1.4 billion. The Texas factory now employs 2,800 "team members," as the workers are called. Toyota stopped making the Tacoma and other vehicles in Fremont, Calif., after General Motors, its partner in New United Motor Manufacturing Inc., quit the venture as part of its bankruptcy in 2009. Click here for more on Toyota's North American sales forecast at Automotive News. To read more on production of the Tacoma in San Antonio, Texas, click here.
The Top 10 Cheapest Places to Buy a Car
It's just plain human nature: Every day, buyers across the country drive their shiny new vehicles off dealership lots, and immediately get the sinking feeling that they could have gotten a better deal somewhere else. But where would that somewhere be? How about Tampa, Atlanta, or Washington, D.C.? According to AOL Autos, a few other cities, such as San Francisco, Dallas, and Los Angeles might have done the trick, too. These and a few other metropolitan areas boast the greatest discounts off a vehicle's manufacturer's suggested retail price, according to data analyzed from the AOL Autos Best Deal Program. New vehicle prices in the Tampa-Orlando area, the top discount market, averaged 10 percent below their manufacturer's suggested retail price (MSRP). Prices averaged 9.9 percent below MSRP in the Baltimore-Washington area, and 9.4 percent under MSRP in Atlanta. The study also found that best states for car shopping were Maryland (with an 8.1 percent discount off MSRP), Virginia (with 7.6 percent), and Florida (with 7.5 percent). The best metro markets were all areas with lots of dealerships. Also, in some cases, the best prices are found on the outer edges of metro areas. Click here for more from AOL Autos on the best places to buy a car.
Sportier but Thirstier, a Hybrid Honda Tries to Be Hip
When Honda showed the CR-Z concept car at the Tokyo Motor Show in 2007, it appeared alongside some of the wacky Japanese design exercises that the biannual show is known for. One difference between the CR-Z and the Nissan Pivo 2 (with a pivoting cabin), the Toyota Hi-CT (with styling akin to a shrunken Zamboni) and other flights of fancy is that the CR-Z actually goes on sale Aug. 24, looking pretty much as it did on stage. Click here for a photo gallery. According to Richard S. Chang at the New York Times, the CR-Z doesn't resemble anything else in the Honda (or Acura) lineup. The automaker clearly intended the CR-Z to evoke warm, fuzzy memories of its CRX, a vaguely similar two-seat slice of hatchback that Honda sold in the 1980s and early '90s. With the CR-Z, Honda is also targeting a young demographic with what it says is a first: a sporty, fun hybrid. By hybrid standards, the CR-Z is a fairly zippy ride. Honda says the car can go from zero to 60 miles per hour in 10.1 seconds or less. The CR-Z combines a 1.5-liter 4-cylinder 16-valve gas engine making 122 horsepower with the automaker's Integrated Motor Assist system. Click here to read about Chang's experience with Honda's latest hybrid vehicle.
Around the Web
Is This the Most Beautiful Car Ever Produced? [DriveOn]
First Drive: 2012 Infiniti M35 Hybrid [Motor Trend]
First Top Gear USA Trailer [Jalopnik]
Audi Creates Petition to Bring TT RS to U.S. [Autoblog]
Would You Buy a Nissan if it Helped Moisturize Your Skin? [Advertising Age]