Monday, July 13, 2009

Which Hyundai "R" U. I am Nissan CRA2Y



Most of you would have noticed the "Which Hyundai R U" ad campaign banners running on many websites and blogs, including this one. It is not just a local effort but is actually part of a global effort by parent company Hyundai Motor Co (HMC). One of the parent company HMC's initiative for this year is to actually increased ad spending despite the on-going economic downturn and also to be more innovative in their marketing. HMC is following a typical advertiser's mantra - when others are cutting, you spend more on advertising and reap the rewards when the market picks up.

Locally, the local distributor of Hyundai vehicles Hyundai-Sime Darby started one of those "Snap-N-Win" contest offering a grand prize of a trip to Europe.


I can't help but noticing that this is one of those marketing efforts that looked good on paper but not enough thought is given on it and the end of the day, I doubt if it was money well spent at all.

Look at some of the photos submitted - some of these were obviously taken off the Internet, one even had China registration plate and is a left hand drive model. There should be a moderator to identify and remove these disqualified images.


Oh dear...

It would have been so much better if the contestants were asked to include a caption to the photos as well. Now the gallery is just filled with pictures after pictures, some of them are of really horrible looking souped up cars with tacky after-market parts. And I am not too sure what exactly is the story behind them or what was the photographer's idea / message? Shouldn't the objective of such a campaign is to build the brand profile? But all we are seeing is a gallery of poorly shot pictures with a Hyundai car in them. How different is this from what the public currently think of Hyundai cars on the road? Cars have an intrinsic appeal to them, people buy them not only for transport but also because they want to make their life better, and to make them feel better. Why not tell the story of how some people's Hyundai have somehow made their life better, how was the car being part of their life? Any car can tell that story, from a couple's first Kancil to high school student's first driving lesson in a Datsun.

Wouldn't it be better if the contest is about making a short video shot using a video-camera cellphone and a Hyundai car? Nokia did one such contest about a year ago. I also remember many years ago, the former DaimlerChrysler Malaysia held a short story writing contest on their memories of a Mercedes-Benz, I remember one was involving a Mercedes-Benz lorry! Nissan is now doing a similar thing with the "I'm Nissan Crazy" campaign.

But the problem with Nissan's campaign is that the testimonies sound like thinly disguised corporate advertisement and they all only feature the current latest models carried by ETCM. Companies and creative agencies need to realise that people, especially the Web 2.0 generation are increasingly suspicious of corporate sponsored endorsement. I read through I am Nissan CRA2Y "Real life Real stories" section and I don't find anything particularly "real" about them. Some of them have so many references to Edaran Tan Chong. Does anyone think real people talk like that in real life about their cars? Could have been easily written / scrippted by an ad agency / marketing guys. I don't see anything particularly negative about featuring older Nissan cars, I see it as a chance to remind the public of the company's heritage and the brand has grown along with them over the many decades. That sounds more real.

This is my favourite I am Nissan CRA2Y video of all. It sounds authentic and has a dose in humour in it. See what I mean that by any plain boring car can have an interesting story. It's all about the life that revolves around the vehicle. Many of the other videos make their owners sound more like Nissan salesman than a genuine owner.

Hyundai has been growing from strength to strength and it is one of the few car companies that actually registered positive growth last year. While its domestic market South Korean market has crashed, Hyundai sales performances were pretty encouraging in main export markets such as Australia, North America (up from 5.0 per cent light vehicle market share to 7.3 per cent), Europe (the only top-10 brand to lift sales this year) and China, where sales increased 69 per cent in what is now the world’s biggest market. The Avante / Elantra X20 is one of the best selling cars in China. Locally however, the Hyundai brand have suffered much neglect, with the brand seeing through 2 different distributors over the last 20 years (Berjaya Group, Kah Bintang) and at one time CKD and CBU Hyundai models were sold via different outlets and distributors. How the heck is average Joe Public going to know which dealer to go to? Some form of order was only brought back recently when Sime Darby assumed full control over the Hyundai franchise.

But the damage to the brand is too serious to be fixed over a short period. In its better days, the Sonata was seen as a decent cheap alternative to traditional Japanese mid-size sedans. But these group of early adopters to the Hyundai brand were not rewarded for their "faith" in a relatively new upstart in the market. There was little consistency and direction for the Hyundai brand locally when the brand kept changing hands and the negative effect of this can clearly be seen today. Sales of Hyundai vehicles is a far cry from its more successful early generation Sonata and Matrix days. Most of the early customers have since moved on to other family brands. Remember that it costs 3 times as much to attract a new customer than it is to retain an existing customer. Hyundai is faring quite well in neighouring Singapore, so there is nothing wrong with the product (the new generation of Hyundai models). But are local consumers ready to warm up to the Hyundai brand again?

2008 Top 10 Vehicle Companies by Sales : VW On A Roll To Overtake Toyota


VW Group CEO Martin Winterkorn have every reason to smile. Latest data shows that VW Group has once again inched closer towards challenging Toyota's world domination. Two years ago, Martin Winterkorn has set a challenge for the VW Group to surpass the current gargantuan of the automotive world Toyota Motor Co., by 2018. VW Group's total sales volume increased by 1.3% from the previous year. Sounds very little until you consider the fact that Toyota contracted 4.2% and Volkswagen is among the only 4 out of the top 10 car companies that bucked the negative industry trend by registering positive growth. The other companies that grew are Nissan, Honda and Hyundai-Kia.


Source : Automotive News Data Center and company sources, via Automotive News Europe.
Sales tally for Toyota is inclusive of Hino and Daihatsu subsidiary while Volkswagen includes Audi, Seat, Skoda, Bentley, Bugatti and Lamborghini.

GM's position at No.2 does not mean much anymore considering its European Opel (American Saturn) and Saab brands are being sold while Hummer has gone to the Chinese and Pontiac is already dead. It's sales tally in the subsequent years will be substantially reduced.

Volkswagen also announced today that sales in its China market (including Hong Kong), which is also VW's largest single market, jumped 22.7% from the year before. Volkswagen's subsidiary Audi is China's No.1 selling luxury brand and it registered 11% growth from 2007. Skoda jumped an even more staggering 46.2%. Volkswagen's dominance in the current world's largest automotive market have no doubt helped it close the gap with Toyota, which relied heavily on its North American market which has since tanked.

Three key Volkswagen Group executives were recently awarded the Automotive News Eurostar Award 2009.

Globally, Audi has registered 13 years of consecutive growth have since overtook BMW and Mercedes-Benz as Europe and China's leading luxury car brand. Its CEO Rupert Stadler was awarded Automotive News Europe's "Eurostars Award" for Car Division.


VW Groups's Head of Group Design Walter de' Silva was also awarded the same for Design Eurostar, largely for his work with the new Polo, said to be an almost perfect car for the current time - economical yet sophisticated enough. His work with the Audi A5 was also recognised.


VW Groups's Chief Financial Officer Hans Dieter Poetsch also received an award for Finance Eurostar. Under his leadership, VW posted a new sales record and also its best ever operating profit.


Let us not forget also that Volkswagen also dominated this year's 2009 International Engine Of The Year Award. The 1.4-litre Twin Charger TSI engine was crowned with three awards - the Overall Engine of the Year title as well as for the Green Engine of the Year and also in the 1-litre to 1.4-litre category. Audi's 2-litre TFSI engine also bagged the award for 1.8-litre to 2.0-litre category.

Sunday, July 12, 2009

Carlos Ghosn : 2010 to be just as bad as 2009


I'm expecting 2010 to be as difficult as 2009. I am not expecting an immediate recovery, said Ghosn in an interview with French Europe 1 radio station.
Ghosn also said he expects Europe and Japan to be the last automotive markets to recover from the current slump, by Q1 2011. He is more optimistic about United States and other emerging markets, which he expects to resume positive growth by Q1 2010.

He also expressed his concerns about the eventual end to the current old vehicle scrapping scheme that has temporarily boosted automotive sales in Western Europe, adding that a gradual end to the scheme is important to shield the industry from a brutal, sudden shock.

VW have also previously cautioned that it expects 2010 vehicle sales in Western Europe to slow again as the market normalises after the end of the scrapping scheme. The current record sales in Germany is artificially boosted by financial incentives from the German government to boost domestic automotive sales by encouraging users to trade in their old polluting clunkers.

Friday, July 10, 2009

All new 2010 Jaguar XJ Launch Gala


Not too many months ago I was out on a not so early night out with some buddies, a sleek white Jaguar XJ pulled out of a junction, and then wafted away as if it was carried on a magic carpet, glistening under the orange street lamps ever so elegantly in a way that only a Jaguar can pull it off. I wowed at the XJ, and then the rest of the guys in the car laughed at me saying that the fact that I find a Jaguar XJ appealing is another sign that I am getting old. That has always been the problem of Jaguars isn't it? Yes we have the fabulous modern looking XF sedan and XK coupe, but in the minds of the public Jaguar is still a car for old farts. I don't think I find Jags appealing because I am old, at least that's what I like to think. You see, I like to think of myself as a nice guy. I don't like barreling down the road bullying others in my angry looking car that screams "get out of my way I am more important than you." Thus I always feel very detached, very "not myself" when I am in a luxo-barge German limousine that is as imposing as a sea cruise liner on the road! I don't fancy Baroque-like heavy and imposing looking cars. I like things to be harmonious and blends in. But obviously I don't make enough money to be chauffeured in a German limousine. And those that do, want to shout their status, ego and impose their presence, which also explains the way these luxo-barges are designed.

So when celebrity car-designer Ian Callum took over the responsibility to redesign the new XJ, he made it very clear that Jaguar needs stop looking too much into its glorious past and make a car that is fitting for a 21st century Jaguar. I was afraid that he will make the XJ into another one of those luxo-barges.



So when the new XJ was finally unveiled on July-9 in a glitzy gala event, I wasn't quite sure how to react to the new XJ when I first saw it. The overall silhoutte and glass area has hints of an Audi A6 and Citroen C6 to it, which is not exactly a bad thing. Jaguars XJ are always known for a characteristically thin C pillar. The snout grille looks a bit odd at first but I do understand that this is partly due to crash safety regulation compliance. Every other new car from a small Peugeot hatchback to the "smiley face" Mazda 3 to Audi models have grown a monstrous whale like grille. What I am surprised to see most is that Ian Callum managed to avoid the "Bangle-butt / duck-tailed boot lid that sticks out from almost every modern large sedan (it's unavoidable - need to reduce aerodynamic drag by having a higher tail but yet to maintain overall proportion and maintain a low trunk height for easy luggage loading).

It's not exactly a design that will immediately win new fans. In fact I think Ian Callum made it that way on purpose. All new innovations are meant to push boundaries of acceptance, and change is not easily accepted by all. Just look at Chris Bangle era BMW models. When it first came out - purists moaned and started angry petitions. 5 years on everybody wants to follow it, even the Honda Accord carry very strong traces of the E60 5er's influence. And BMW's sales actually increased with these "ugly" cars. It is better to have a controversial design that polarises opinion and generates market buzz rather than one that is safe and is ignored by everybody. The keyword here is polarize - which means there has to be two camps. Just don't do what Ssangyong did with their Stavic and Actyon models, that's not polarizing, that just simply scares everyone away.

The earlier conservative Geoff Lawson era designed Jaguar cars played too safe, carrying over the decades old XJ6 lines, and as mentioned above, we have seen the effect of playing too safe in a luxury segment. Playing safe and appealing to the mainstream is the way to go if you are making a Corolla - something that has to appeal to a very wide range of people. But this is an XJ, it has to make people slightly uneasy with its presence, in the same way that you are never quite comfortable if Her Majesty the Queen of England is in the same room as you.

Previous generation XJ. Unlike most people, I actually quite like it.

Though the new XJ does not tick my feelings immediately, I have a strong feeling that this is one of those cars that I will grow to like eventually, and that will look a lot better in real sheet metal than on pictures. The new XJ was launched in a star studded event in UK, at the Saatchi Gallery in Chelsea, London. The glitzy hosted by American comedian, car nut and Jaguar fan Jay Leno. Supermodel Elle MacPherson was also there to unveil the car. Below are pictures of the new XJ launch gala. Watch the launch gala video here.




Elle MacPherson and Jay Leno


Elle MacPherson again.


L-R : Jaguar Design director Ian Callum, American talk show host Jay Leno, Jaguar Managing Director Mike O'driscoll.


David Hasselhoff

No idea who are they.




Ian Callum was most famous for his work on the Aston Martin DB7 and Vanquish. He was also said the lay down the foundation for the DB9, which was then finished by his successor Henrik Fisker when he left Aston Martin for Jaguar. The first Jaguar to be completely designed under his direction was the XK coupe, followed by the XF, which left the world in awe. A little known fact is that his brother Moray Callum was responsible for the Mazda MX-5, first generation Mazda 3, 5 and 6. All of which were very beautiful cars which turned around Mazda's reputation. Morray has since return to parent company Ford (Mazda is now independent) and was been succeeded by Laurens van den Acker. Car design genius runs in the Callum family.











The geeks can find the vehicle spec sheets here.