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Chrysler Group’s “Imported from Detroit” ad campaign grabbed top honors Wednesday night in New York City, winning the North American Grand Effie Award as the most effective ad in the nation.

“Imported from Detroit was the Grand Effie winner because they sold the product, the category and the city,” said Deborah Sandler, President, Mars Chocolate North American and a Grand Effie jury member, in a news release.

Indeed. The two-minute Super Bowl commercial, titled “Born of Fire”, created a huge buzz for the city and for the Chrysler 200. The agencies Wieden+Kennedy and Universal McCann created it and Chrysler capitalized on it.

“The success of this campaign has contributed significantly to the company’s sales growth over 2010, and as a result of this success, Chrysler has paid off their government bailout six years early,” Chrysler said in its entry.

Other automotive winners at the Effie Awards included Porsche grabbing second place in the automotive category for “How Porsche created new relevance for a revered icon,” and Chevrolet taking third for “Chevy Volt, it’s more than electric.”

Kia also grabbed a third-place honor in the Single Impact Engagement category for its “Not your average slam dunk” commercial.

And for those feeling nostalgic, scroll down and check out the original commercial. It still gives us chills. You can also read more about the Effie Awards in the included press release.

Continue reading “Imported from Detroit” wins Grand Effie award for effective advertising

“Imported from Detroit” wins Grand Effie award for effective advertising

The overhaul of General Motors‘ marketing battle plan isn’t finished. The Wall Street Journal reports that Joel Ewanick, GM’s global marketing chief, is giving the brand a hiatus from Super Bowl advertising, believing it’s just got too expensive and that variety is called for. Thirty-second spots for next year’s big game are projected to cost $3.8 million.

The development comes quickly after GM decided to stop buying ads on Facebook citing a lack of effectiveness (to which Ford responded), and comes during a year of realignment efforts throughout the company: a global review of accounts began earlier this year and some were quickly let go, a brand new agency was created for Chevrolet and set up shop in Detroit, and personnel are being realigned.

The General’s global ad spend in 2011 was $4.7 billion, and word is that GM doesn’t plan on spending less, it only wishes to spend better – Ewanick says the changes made so far will net the company $2 billion in savings over the next five years. It’s clear he’s looking to unlock more efficiencies; observers say that GM is also trying to improve its ad performance overseas and find better ways to reach demographics that have migrated in all directions and to all media.

GM pulls advertising from next Super Bowl after Facebook exit

Fiat, in an attempt to make its purchase of Chrysler more profitable, has been marketing rebadged Dodge and Chrysler models in Europe with mixed results.

Europeans apparently love the Fiat Freemont, known as a Dodge Journey here in the States. Fiat sold almost 6,500 of the crossovers over there in the first quarter and hopes to move 30,000 by year’s end. Sales were helped by Fiat’s large European dealer network as well as an MSRP lower than the model it replaced. Since the Journey is built in Mexico, it can be imported into Europe tariff-free, which helps keep the sticker price lower.

On the other hand, sales of the Lancia Thema (Chrysler 300) and Lancia Voyager (Dodge Grand Caravan) are not doing so well due to several factors. One is the limited reach of the Lancia brand outside Italy. Then there’s the 10 percent import tariff since they’re both built in Canada, a yearly 500 euro luxury tax (about $630 USD) on the Thema, and a limited advertising budget for the two cars.

Only 1,342 Voyagers were sold in Europe in the first quarter of this year, which means the 11,000 unit goal for the year will probably be missed. Lancia sold only 480 Themas during the same period, well short of the 2,500 Fiat had hoped to sell.

Rebadged Dodge, Chrysler model sales a mixed bag in Europe

Frenemies Ford and General Motors have taken to cyberspace for a little verbal sparing, trading snarky shots this week over which company is more likeable on Facebook.

GM set itself up Tuesday after news broke that the carmaker decided not to spend $10 million on Facebook advertising the same week the social media juggernaut prepares for its initial public offering expected to raise $100 billion dollars.

Ford used the opportunity to tweak its crosstown rival, tweeting: “It’s all about the execution. Our Facebook ads are effective when strategically combined with engaging content & innovation.”

GM couldn’t leave that alone, going onto its Facebook page, “Just wanted to let our millions of Facebook fans know, we’re still here, and we ‘like’ you back!”

Both carmakers will continue to use Facebook, where both have millions of followers of their brands and vehicles. And, really, they are both right.

Ford has done an extremely good job incorporating Facebook into its marketing strategy. When it came time to launch the new Ford Explorer, it did it through Facebook reaching millions of people.

GM has determined its money will be better spent in other areas. A recent Associated Press-CNBC poll showing more than half of all Facebook users never click on sponsored ads and only 12 percent said they felt comfortable to buy anything over Facebook. Google, The Wall Street Journal points out, is much more effective.

Ford and GM in Twitterfight over Facebook advertising?

The Internets are buzzing over the upcoming initial public offering of Facebook, but General Motors doesn’t seem all that impressed. The Huffington Post reports that The General has pulled its Facebook ad campaigns just days before the social media site is scheduled to officially hit the stock market.

The pricey ad buy reportedly wasn’t paying sufficient dividends for GM, which spends billions of dollars on advertising every year. GM Spokesperson Pat Morrissey confirmed that Facebook was being reassessed, but added that the automaker routinely reviews where it is spending its ad dollars. Morrissey then added that GM is looking for effectiveness when it doles out marketing cash, which doesn’t bode well for Facebook’s ability to draw clicks.

If GM’s decision sounds at all irrational, the statistics seem to show that Facebook isn’t exactly an ad-click magnet. A recent CNBC poll showed that 50 percent of all Facebook users never click on any ads, and only 12 percent of those polled feel comfortable purchasing anything through Facebook. Google appears to be more effective at attracting clicks, as The Wall Street Journal cites a click-rate that is seven times that of Facebook.

Regardless of GM’s decision to break up with Facebook, we’re guessing that the news probably won’t drown out much of the anticipation for the IPO. After all, it isn’t every day that an Internet site with 900 million mostly addicted users goes public.

GM says Facebook ads not effective, pulls campaign ahead of IPO

What are you going to do, sue? Good luck.

This week’s Superior Court verdict suggests there’s little to no recourse for consumers.

As Autoblog readers likely have already learned, a Superior Court judge in California has tossed out a judgment issued by a small claims court earlier this year awarding nearly $10,000 to Honda Civic Hybrid owner Heather Peters. She had taken the Japanese maker to court claiming it used misleading advertising promising the sedan would get significantly better mileage than proved true in the real world.

In overruling the lower court, Superior Court Judge Dudley W. Gray II wrote that, “Federal regulations control the fuel economy ratings posted on vehicles and advertising claims related to those fuel economy ratings.”

Well, um, no. That was my understanding, too, until I had the chance to pursue the matter with the EPA a couple years back. In fact, I was told, the law simply sets an upper limit. If the tests determine a new model gets 50 mpg – as with Peters’ Civic Hybrid – that’s the most a maker can advertise or use on the Monroney window sticker. But should a manufacturer like Honda realize through its own tests that the vehicle’s real-world mileage might be noticeably less they can mark it down to whatever they think is valid.

Of course, who would do that? With mileage now one of the top things on the consumer’s shopping list, who can blame a manufacturer for wanting to put the prettiest lipstick on a gas hog. And this week’s Superior Court verdict suggests there’s little to no recourse for consumers who only discover that fact after they’ve given it a big smooch.

Paul A. Eisenstein is Publisher of TheDetroitBureau.com and a 30-year veteran of the automotive beat. His editorials bring his unique perspective and deep understanding of the auto world to Autoblog readers on a regular basis.

Continue reading The case of Heather Peters and the Honda Civic Hybrid sets an alarming trend

The case of Heather Peters and the Honda Civic Hybrid sets an alarming trend

Automotive News reports Lexus may use the company’s new GS to put some distance between itself and parent company Toyota. Buyers have snapped up a total of 4,900 GS models in just two months, breezing by year-long sales estimates in the process. The company attributes much of that success to non-traditional advertising efforts, including the Tori 500 iPhone and iPad app, and says that it could use similar tactics in the future to lure buyers in based on traits like “character and handling.” Traditionally, consumers have turned toward Lexus because of Toyota’s reputation for efficient and reliable machinery.

The GS, with its hour-glass grille and aggressive front fascia, is a first-step in giving the luxury automaker a more distinct brand image. In the past, Lexus has had trouble keeping buyers coming back, and the company believes that’s partly due to the fact that luxury consumers are more interested in owning a brand than a particular vehicle. As such, we can expect to see more corporate design cues across the company’s portfolio in the near future. The move may help set Lexus apart as something other than a slightly nicer Toyota in consumers eyes.

Lexus looking to distance itself from Toyota, move more upscale

Chrysler and Pure Detroit have agreed to a settlement in the legal wrangling over Chrysler’s “Imported from Detroit” tagline. According to The Detroit News, the automaker and T-shirt purveyor have asked a judge to dismiss the lawsuits against one another. Terms of the agreement were not disclosed.

Chrysler had sued the entrepreneurial company in March 2011, after Pure Detroit sought to cash in on the popularity of the phrase following last year’s Super Bowl ad featuring Eminem. Chrysler has its own line of “Imported” merchandise, which it has used to fund charitable organizations. Pure Detroit counter-sued and went on selling its wares after a judge refused to grant Chrysler an injunction against the smaller company in June 2011, according to the report. Pure Detroit maintained that Chrysler’s campaign “amounts to false advertising,” said the News, because none of the vehicles (the 200, 300 and Town & Country) shown in the ads are built within Detroit proper.

The pair of legal combatants had agreed to mediation in March. Their resultant deal should preempt a trial that would have taken place in August.

Chrysler vs. Pure Detroit “Imported From Detroit” legal dustup settled

Do you spend a lot of time pinning your favorite things on Pinterest? Honda may be looking to hand you $500 as part of the company’s first campaign on the social outlet. Honda is singling out active Pinterest users and handing some of them $500 to indulge in a “Pintermission” to make a visit to the places they’ve been pinning or pick up some of the retail items they’ve highlighted.

Honda is making its CR-V the focus of its first foray into Pinterest because it’s a vehicle with a lot of appeal to women, much like Pinterest itself. So far, two of the women that have been handed a big, shiny check by Honda are putting the funds toward travel. One’s going to London, the other is headed to Hawaii, according to Lauren Ebner, American Honda Motor Company’s assistant manager of social media. We’re watching Honda’s board waiting to see what kind of artisanal luxury goods the CR-V inspires.

Honda wants to give you $500 to take a “Pintermission”

We’ve seen plenty of discussion on the merits of pedestrian warning systems for hybrid and all-electric vehicles. From synthesized engine sounds to the noise of George Jetson’s flying car, automakers and the aftermarket industry have worked to come up with a way to keep people aware of a vehicle’s presence.

Now it looks as if Domino’s Pizza is having some fun with a safe sound system for the company’s electric delivery scooters in the Netherlands. Using a human voice to replicate the sound of a small-displacement gasoline engine, the scooter is both hilarious and safe.

It also makes for good advertising, though we’d hate to be the guy behind the handlebars after a few hours on the job. Between synthesized revs, the “engine” exclaims “Domino’s!” and “Pizza!” in what can only be described as the perfect Netherlands accent. Scroll down for a quick chuckle.

Continue reading Domino’s Pizza Safe Sound scooter is the funniest thing on two wheels

Domino’s Pizza Safe Sound scooter is the funniest thing on two wheels

As we’ve reported in the past, one major issue confronting the U.S. auto industry is its ability to recruit talent to live in Detroit, home of General Motors and spiritual birthplace of Chrysler and Ford. According to the Detroit Free Press, advertising cooperative Commonwealth, a joint venture between San Francisco-based Goodby, Silverstein & Partners and New York-based McCann Erickson Worldwide, isn’t having the same problem.

Commonwealth plans to embed itself in the middle of Detroit with 280 workers mostly imported from such marketing powerhouse cities as New York and San Francisco. The firm has already begun moving into the Palms Building which also houses the popular Fillmore Detroit performance venue. Says Todd Grantham, associate partner and Goodby’s managing director for Detroit:

“You just have to be the type that comes in here and knows, I can build something here. That’s how we attract people. What we want is the people who come in here and go, ‘Wow, this is a blank canvas. It’s all around me and now I can do something.’”

Whether or not the advertising firm will be successful in its ploy to bring more young professionals to Detroit remains to be seen, but Quicken Loans’ Dan Gilbert seems to be making a pretty good go of it with his various operations. So far, there are at least three such willing transplants interviewed in the video down below. It’ll surely take a lot more than three enterprising transplants to succeed, but at least it’s a start. If nothing else, we’re certain that there are already a good deal of talented individuals already in Detroit waiting for a chance to prove their worth.

Continue reading Chevy’s new ad agency Commonwealth picks downtown Detroit as home [w/video]

Chevy’s new ad agency Commonwealth picks downtown Detroit as home [w/video]

Freshly Tweaked For A Second Life

Ford has not been long known for polarizing design. The company’s styling philosophy has read more closely along the lines of “cheap and cheerful.” But when it brought out the Flex in 2008 as a 2009 model, Ford started down a road of trying to be more expressive, emotional and evocative in the design of its crossovers and SUVs, not just with the Mustang.

For Ford, the Flex has been one of those hollow victories. The people who buy it love its Mini-Cooper-on-a-high-protein-diet look, especially with the available two-tone paint jobs, and the comfortable packaging and cruising ride they get without bumping up to a frumpy minivan. The trouble is that there haven’t been enough of those happy buyers taking the plunge.

Ford sold just 27,000 Flex models last year, down 20 percent from the year before – not exactly one of CEO Alan Mulally’s homeruns. Also, its marketing has been confused since its debut. Ford initially pitched it as a cool urban crew wagon – think Funkmaster Flex. The advertising Powerpoint presentation actually said “No dog drool.” No kidding. The high-concept ads were all shot at night on city streets. It bombed. Soon after launch, we saw families and even a dog or two in ads.

Continue reading 2013 Ford Flex

2013 Ford Flex

In general, car dealers have reputations just below personal injury lawyers and politicians, so it’s no surprise that most consumers are naturally wary whenever they engage in the process of buying a new vehicle.

As part of an effort to restore consumers’ faith in the auto buying process, the Federal Trade Commission is intervening, calling out five dealers from around the country for what it says argues is deceptive advertising. According to the FTC, the dealer ads in question promise to “pay off your car” and to “pay off your trade no matter what you owe” when, in fact, they either rolled the balance of customers’ trades into a new loan or just outright demand would-be buyers pay the difference out of pocket.

Tempting, yes, but anyone with a half-full brain cavity would almost certainly start asking questions before signing such paperwork, right? Well, maybe, but these sorts of tactics have spread among auto dealers, likely because they have proven effective.

The dealers named by the FTC include Billion Auto, Inc., in Sioux Falls, South Dakota; Frank Myers AutoMaxx, LLC, in Winston-Salem, North Carolina; Key Hyundai of Manchester, LLC and Hyundai of Milford LLC, of Vernon and Milford, Connecticut and Ramey Motors, Inc., of Princeton, West Virginia.

The FTC’s wrist slap settlement requires that for the next 20 years, the above dealers not run deceptive ads, keep copies of the ads they do run, and file reports with the FTC showing their compliance.

If they violate the FTC order, the dealers will be fined up to $16,000 for each infraction. Read all the details in the official press release after the jump, and while you’re there, check out an example of one of one of the dealers’ advertising handiwork as well.

Continue reading FTC steps in to curb deceptive car dealer trade-in practices [w/video]

FTC steps in to curb deceptive car dealer trade-in practices [w/video]

Infiniti has loosed the hounds of advertising on behalf of its new three-row, seven-seat crossover, the 2012 JX. The four spots, set to run throughout NCAA March Madness, are focused on features like a novel Backup Collision Intervention System, live personal assistant and tri-zone entertainment. They aren’t the most creative spots we’ve ever seen, but they do a good job of showing a number of the CUV’s unique features while placing the vehicle in a luxury context.

Infiniti also teamed with GILT yesterday, the same luxury-minded e-tailer that sold Volkswagen Jetta sedans for $5,995 for a day back in 2010. This time, there was only one loaded JX35 up for grabs, but the lucky buyer got the luxury ute for half price: $27,425. Follow the jump to watch the ads and check out the press release.

Continue reading 2013 Infiniti JX ad blitz to tip off with NCAA March Madness

2013 Infiniti JX ad blitz to tip off with NCAA March Madness

It reported a record profit margin, but BMW still wasn’t as profitable as its rival Audi. According to a report in Automotive News, BMW booked an 11.8-percent profit margin, up from eight percent last year. Audi, however, managed 12.1 percent.

Both figures were calculated using the earnings before interest and tax method (EBIT).

Audi and BMW have had a blossoming rivalry since Audi began directly targeting BMW, both in the development of its products and in its advertising. The two ultra-competitive German luxury brands most famously clashed in a series of billboard ads in Southern California.

Analysts had forecast an 11.9-percent profit margin for BMW, according to AN. Despite this “mild disappointment,” as one analyst called it, BMW still led Audi and Mercedes-Benz as the top-selling luxury brand in 2011.

The company expects to set another annual sales record this year, besting the 1.67 million units it moved in 2011, thanks largely to it’s new-for-2012 F30 3-Series.

BMW reports record profit margin, but Audi’s is better

Automakers are engaged in a constant struggle to get their products noticed. From clever advertising to sneaky movie deals and wild stunts, putting a vehicle in front of the public is the first step toward wrangling better sales figures. Mercedes-Benz recently took a different approach for the upcoming hydrogen fuel cell vehicle, the F-Cell. While the company rolled out a special version of the car in front of the public, it did its best to hide the hatchback behind a veil of special LED matting. The LEDs were paired to a Canon 5D Mark II on the other side of the car, which supplied video.

As a result, the LEDs project an image of what’s on the other side of the vehicle, making the F-Cell effectively invisible. Why hide a new car behind a curtain of techno wizardry? Mercedes-Benz wants to underscore the fact that the F-Cell is a zero-emission vehicle, making it practically invisible in terms of pollution. We see what you did there, Mercedes-Benz. Check out the video for yourself below.

Continue reading Mercedes-Benz attempts to make an invisible car

Mercedes-Benz attempts to make an invisible car

Chevrolet has added another new direction to its advertising, this one inspired by the show The Office: when the boss at a dealership gets the idea to create a workplace comedy, it becomes a series called “Under the Blue Arch.”

The campaign was created by Goodby, Silverstein & Partners and directed by Randall Einhorn, veteran of The Office and Parks and Recreation, among other shows. Actual 30-second television spots will be created based on the “show” to run in support of local dealership groups.

You’ll find the premiere episode and a press release on the campaign and the characters after the jump.

Continue reading Chevy recreates The Office for new local dealer ads

Chevy recreates The Office for new local dealer ads

While the headline might seem shocking, given the circumstances of the 2009 global economic meltdown, it only makes sense. Ford’s dealings with two of its biggest competitors were centered around mutual self-preservation in the form of trying to keep a beleaguered supplier base afloat, according to The Detroit News. According to the report, Ford, Toyota and Honda cooperated to buy from common suppliers in a bid to keep those parts-makers from going under, which would have threatened the automakers’ viability. That revelation comes courtesy of a new book, American Icon: Alan Mulally and the Fight to Save Ford Motor Company by Bryce G. Hoffman.

The auto industry is far more complex than many people realize, especially in this modern era, with ever-more demanding regulations and brutal competition from all corners of the globe. Tier One suppliers, as the biggest parts companies are known, have assumed much of the engineering and product testing and development work for new vehicles, even including big chunks of assembly.

When times get tough, as they most certainly did in late 2008, suppliers are often the canary in the coal mine. At least 27 automotive suppliers filed for Chapter 11 in 2009, meaning that Ford had good reason for taking such precautions, referred to as “Project Quark” internally, according to the report.

Interestingly enough, General Motors and Chrysler, the pair that eventually sought bankruptcy, chose not to participate in the alliance, with GM allegedly expressing concerns over the legality of such a maneuver. The book says Ford’s antitrust attorneys were careful to avoid setting foot on the wrong side of such laws, which prohibit collusion on pricing, among other restrictions on cooperative behavior by competitors.

There are quite a few other interesting anecdotes in Hoffman’s book, including a heated argument between Mark Fields, Ford’s President of the Americas (now said to be in line to succeed CEO Alan Mulally), and Don Leclair, the company’s then chief financial officer. According to Automotive News, a passage in the book declares that Leclair suggested that Fields cut the advertising budget for Ford’s Bold Moves campaign in 2006. This led to heated argument, that ended up with Fields making a move toward Leclair while spouting some choice four-letter words. The altercation was broken up by none other than Bill Ford Jr.

Book: Ford secretly partnered with Toyota, Honda during economic crisis

Jaguar’s turnaround has taken its next public step with a new global brand direction and a marketing campaign called “Alive.” The marketing will lock in on Jaguar’s visceral connection with buyers, “positioning the brand as animate – seductive, emotional, unique, energetic and high-performance – while asking consumers, “How alive are you?”

It will be supported on television, in print, on the web and with events, and will attempt to explain to younger buyers not only why they should be considering a Jaguar, but what Jaguar means as a brand. The overhaul will even dig into the roots of the marque by making changes to both the Growler and the Leaper icons.

The campaign is meant to give people a reason “to own, not just buy” a Jaguar.

Jaguar Land Rover North America President Andy Goss says the campaign is meant to give people a reason “to own, not just buy” a Jaguar. Before Goss arrived last year from Porsche, he says the national, so-called “Tier One” advertising, was too “transactional,” pushing lease deals instead of the brand message and experience.

Prior to that phase of Jaguar advertising, national ads by agency Euro RSCG could have been confused with women’s fashion advertising.

“We need to create some blue sky between Jaguar and the Teutonic brands,” says Goss. The new effort is the coming out party for ad agency Spark 44, a new ad shop formed specifically to handle Jaguar advertising globally with offices in London, Germany, China and the U.S. Jaguar Land Rover, a division of Indian company Tata Motors, owns a stake in Spark 44.

Besides airing on TV, the campaign will run heavily on the Internet, and in magazine ads starting in April. The same ads are going to be adapted for different countries and languages around the world. Jaguar is also driving up its social media presence, now with over 500,000 Facebook followers, with 70,000 of those coming last November alone. The company is also running driving events in 20 cities this year through which it intends to put 20,000 keesters in Jaguar driver seats.

There’s a press release with details on the initiative and the rollout after the jump, as well as the first commercial that will hit airwaves in March.

Continue reading Jaguar unveils new global brand direction with “Alive” commercial

Jaguar unveils new global brand direction with “Alive” commercial

Yesterday’s outrageous attack on electric vehicles didn’t come from the GOP (for a change), but from a seemingly disinterested blogger, one Michael Degusta. His charges against Tesla include suggesting that its cars will have “eventual, inevitable, catastrophic battery failure,” lambasting the company for poor warranty service, accusing Tesla of tracking its owners without consent, and intimating that the company is not only failing to provide owners with proper notice of this phenomenon but also covering up the whole sordid affair. Serious stuff, this post of his that’s rippled through the automotive web with the force of a 185-kW electric motor.

Yet all may not be what it seems. Late yesterday, an e-mail surfaced on Green Car Reports, in which a disgruntled owner who bricked his battery pleads his case to Tesla CEO Elon Musk. The e-mail, sent by one Max Drucker, CEO of Santa Barbara-based Social Intelligence Corp, is a clear plea for assistance in the repair of his car. Drucker identifies his car as Roadster #340, the same car that serves as the primary example in Degusta’s piece. Drucker has since spoken with Autopia about his car, admitting that he drove his Roadster down to a 25 percent charge, then left it parked for six weeks, something the owner’s manual specifically warns against.

Now, let’s turn our attention towards Degusta, who noted at the end of his screed, “No one has paid me to write this article” and pointed out that his blog is not advertising-supported. That’s an important point, as it’s clearly designed to give readers the impression that Degusta is an unbiased outsider, something of a modern-day Upton Sinclair, defending the poor, innocent owners of $100,000 sports cars from the uncaring electric car company and its billionaire co-founder.

Yet, a few minutes spent with Google shows that Drucker and Degusta are also business partners, having registered at least four corporations together in California, according to Corporationwiki. It also turns up this article, from the November 15, 2000, issue of Insurance & Technology magazine, a profile of Drucker, in which he is quoted describing Degusta as his “partner in crime.” Indeed, we wonder if the famously litigious Tesla might be considering another libel lawsuit against this muckraking duo.

Tesla bricked battery story may have a short circuit