Auto Industry

Hyping the Chevy Volt

Is GM setting a new record for vaporware peddling?

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Hyping the Chevy Volt

Chevy Volt screenshot

Is General Motors setting a new record for vaporware peddling? Given that Farhad Manjoo opened up the Machinist to auto coverage a few weeks ago, this seems fair game: Like me, you may have noticed during Olympic TV coverage the nonstop GM commercials touting the coming pinnacle of automobile evolution, the Chevy Volt. (Is there any ad that doesn’t run nonstop during the Olympics? What happened to our endemic advertising diversity?) Aiming to be the first commercially available plug-in hybrid, the Volt — as the ads inform us — will travel 40 miles without using a drop of gas. “That’s an American revolution,” it concludes. USA! USA! Let’s all head out and buy one…in 2010.

I’m no advertising historian, but I can’t think of another example of new technology being hyped with paid advertising a full two years before it is supposed to hit the market (a date that seems, given the delays in battery technology central to the car, a bit aspirational). Don’t get me wrong, I’m quite exited about the prospect of the Volt — even if the maker doesn’t inspire much confidence on the car-of-the-future front – and its competitors. But can anyone think of a technology touted with a nationwide ad campaign that far in advance of its release date? Maybe Windows XP or Vista? They certainly had the advance hype, but I don’t recall early ads.

It certainly goes to show how much pressure gas prices are putting on automakers to rebrand themselves as part of the fuel-efficient future. And GM does seem to be making a legitimate bet on this car. Here’s hoping it doesn’t become the company’s Chinese Democracy. For a great in-depth read on the whole Volt gamble, check out this fantastic Jonathan Rauch story in the July/August Atlantic. This guy also seems to be on top of all things Volt.

Evan Ratliff is a contributing editor to Wired magazine, and the co-author of "Safe: The Race to Protect Ourselves in a Newly Dangerous World."

Films in Progress: Detropia

Oscar-nominated directors are seeking help to release their new film independently. Check out this exclusive clip

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No city has experienced the highs and lows of capitalism like Detroit. So what does it mean to the country when the most epic of epicenters of American industrial might falls to its knees? And can it rise again? “Detropia” is a haunting portrait of a city on the brink of collapse, told by a chorus of weary but optimistic citizens who have no plans to join the hundreds of thousands who have already defected for easier corners of the country. “Detropia,” which won the editing award at the 2012 Sundance Film Festival, will make its way into movie theaters this fall … with your help. Dissatisfied with the limitations of traditional distributors, award-winning filmmakers Heidi Ewing and Rachel Grady have launched their first-ever Kickstarter campaign to raise distribution funds to take the film far and wide in the fall.

More about the film

Detroit’s story has encapsulated the iconic narrative of America over the last century — the Great Migration of African-Americans escaping Jim Crow, the rise of manufacturing and the middle class, the love affair with automobiles, the flowering of the American dream, and now the collapse of the economy and the fading American mythos.

With its vivid, painterly palette and haunting score, “Detropia” sculpts a dreamlike collage of a grand city teetering on the brink of dissolution. As houses are demolished by the thousands, automobile-company wages plummet, institutions crumble, and tourists gawk at the “charming decay,” the film’s vibrant, gutsy characters glow and erupt like flames from the ashes. These soulful pragmatists and stalwart philosophers strive to make ends meet and make sense of it all, refusing to abandon hope or resistance. Their grit and pluck embody the spirit of the Motor City as it struggles to survive postindustrial America and begins to envision a radically different future. (Caroline Libresco, 2012 Sundance Film Festival)

Links:
Kickstarter
Official Website
Detropia on Facebook
Detropia on Twitter
Loki Films

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Mitt Romney driving uphill in Michigan

Another month of great numbers for car-makers exposes Romney's failed message on interventionism

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Mitt Romney driving uphill in MichiganA Chrysler dealership in San Jose, Calif. (Credit: AP/Paul Sakuma)

Dueling pundits, start your engines: The auto industry kicked off 2012 with a turbo-powered roar, and Democrats won’t wait long to make hay out of the impressive numbers. The question of the day: How will the GOP respond to one of the most successful displays of forceful government intervention in the economy the U.S. has witnessed in decades?

The numbers are hard to argue with: After the major automakers released their January sales figures, Autodata Corp. estimated cars raced out of lots at an annualized sales rate of 14.18 million vehicles for 2012. That’s the best month of sales — excluding August 2009′s Cash-for-Clunkers — since April 2008. GDP forecasters are likely rejiggering their first-quarter estimates even now.

Among domestic auto manufacturers Chrysler led the way, with sales surging 44 percent from a year ago. GM dipped 6 percent — but that was actually less than analysts expected, since GM’s numbers a year ago were boosted by big discounts and other incentives. Ford’s sales rose 7 percent.

Further underlining the good news, Chrysler CEO Sergio Marchionne announced that, as a reward for the company’s first profitable year since 2005, all hourly workers would be receiving a $1,500 bonus. Meanwhile, GM announced plans to invest $200 million in a new stamping plant in Arlington, Texas. Oh, and Michigan’s unemployment rate declined again in December, to its lowest point in more than two years.

Chrysler’s numbers are particularly noteworthy, because without the Obama administration’s combination bailout/managed bankruptcy, Chrysler almost assuredly would not exist. Indeed, on Tuesday, while Florida Republicans were smacking Newt Gingrich around, Obama attended the Washington Auto Show and delivered a none-too-subtle jab at his likely Republican opponent, Mitt Romney.

“It’s good to remember the fact that there were some folks who were willing to let this industry die,” said Obama.

The president was clearly referring to the infamous New York Times Op-Ed piece written by Mitt Romney in Novmber 2008, “Let Detroit Go Bankrupt.”

That’s a headline that Romney probably would like to take back, in light of the success of Obama’s auto rescue, as well as the electoral importance of Michigan, a key swing state. You could argue that it sounds, you know, a little callous, along the lines of “I like firing people” or “I’m not concerned with the very poor.”

But this is Mitt Romney we are talking about, an absolute master at the facile reinvention of his own history. In fact, he’s been arguing ever since it became obvious that the White House strategy was working that what he had really been advocating in his Op-Ed was exactly the kind of managed bankruptcy approach that the Obama administration ended up pursuing.

Romney’s revisionist history, strictly speaking, doesn’t hold up. Romney wanted Chrysler and GM to go through a bankruptcy process that was organized out-of-court, by the private sector, and involved no new federal loans. The most he was willing to entertain, as far as government intervention was concerned, was a federal pledge to guarantee the debt of any new equity investors who might be willing to pump fresh cash into the troubled car companies. His criticism of the Obama strategy throughout 2009 was unremitting. As he wrote in the National Review’s The Corner blog, “What is proposed is even worse than bankruptcy – it would make GM the living dead.”

The problem, however, was that at the time, in the spring of 2009, credit markets were effectively frozen. There were no prospective new investors willing to take any risks at all, even with a government backstop. Instead, hovering over the quickly decaying corpses of the two automakers were a flock of GM and Chrysler bondholders and creditors all desperate to grab whatever cash they could from what would have been a very, very messy liquidation. And the downstream impact of liquidation on the automotive supply chain and Midwestern Rust Belt state economies would have been a catastrophe.

Without federal loans the automakers would not have survived. As Chrysler’s Marchionne told CNN when questioned about Romney’s critique:

Whoever told you that is smoking illegal material. That market had become absolutely dysfunctional in 2008 and 2009. There were attempts made by a variety of people to find strategic alliances with other car makers on a global scale and the government stepped in, as the actor of last resort. It had to do it because the consequences would have been just too large to deal with.”

It’ll be fun to see how all this plays out as Obama and Romney make their visits to Michigan in upcoming months. Obama will point, with justice, to his own record. Romney will try to pretend that Obama actually was following Romney’s advice. Voters will have to decide whom to trust: A president who took enormous political heat for saving the auto industry, or a former private equity wheeler and dealer who said government should have just let the market work its destructive magic.

Romney considers himself a “favorite son” in Michigan — his father was governor and the president of an auto manufacturer. But his position seems like a tough sell.

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Andrew Leonard

Andrew Leonard is a staff writer at Salon. On Twitter, @koxinga21.

How Ford built the ultimate lemon

A look at the design and promotion that went into the company's biggest flop: the Edsel

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How Ford built the ultimate lemon
This article originally appeared on Imprint.

Imprint
The purpose of this piece is less about the actual history of the Edsel and more about the design and promotion of the car. I’ve always thought that it was one of the most outrageous looking automobiles to ever roll off an assembly line, and the name “Edsel” (Henry Ford’s son) hardly does a lyrical dance off one’s lips… What also intrigues me is how much money and effort was spent on the beast and how terribly wrong everything seemed to go. To help put things in perspective, I’ve included a good postmortem analysis from a 1959 article in Business Week below.

From Business Week November 28, 1959

My relationship with the Edsel started in 1968 when my dad made a film called, “Because That’s Why.” In this short film, there’s a sequence where two men stalk and hunt a pink 1959 Edsel. They end up “killing” the automobile and triumphantly pose with it strung up like one would with a Great White Shark. At 12 years old, I think I felt sorry for the beast, and it became a dream of mine to someday own an Edsel of my own. That never happened, but I was able to gather a lot of material on the car and actually used it in as a basis for papers I wrote in high school and college…

Shot from Joe Sedelmaier's short film "Because That's Why" 1968

In the annals of automobile history there are few sagas so fraught with failure as the Edsel. Ford spent $250 million to develop the car and lost another $200 million during the three-year existence of the car. Soon after its launch, unflattering nicknames like “Oldsmobile sucking a lemon” followed. Developed over a period of almost 10 years, the Edsel was Ford Motor Company’s answer to the mid-priced slot. In the 1950s, the closest that Ford came to a medium-priced car was its Mercury. Problem was, when it came time for Ford owners to upgrade, they sidestepped the Mercury and hopped up to a GM car like an Oldsmobile, Pontiac or Buick, and to a lesser extent a Chrysler product. Ford’s strategy was to develop a new line that would inspire loyalty to the parent company. A “Special Products Division” was developed by Ford to research what would be the perfect automobile to effectively fill this void. The “E-Car” (for experimental) program grew out of this.

Roy Brown, Edsel's designer (p18 "Edsel - The Motor Industry's Titanic" Robert Daines)

One of the approaches the Ford Motor Company took when preparing for the Edsel’s launch was an extensive campaign to recruit and hire dealerships that would sell the Edsel exclusively – NOT in tandem with other Ford, Mercury, or Lincoln models. This ultimately involved training schools for sales and service personnel – even the most experienced journeymen found themselves required to participate and learn how Ford wanted their new line sold and serviced.

Announcement's opening with picture of Edsel Ford and a letter to stockholders from Henry Ford II.

Edsel dealer sales agreement 1957

First issue of the Edsel “Service Beacon” provided to service departments to keep them updated on product issues and how to deal with them.

Pre-launch "Edsel Marketeer" dealership magazine, with select pages included below.

First post-launch "Edsel Marketeer" with entire issue below.

Leave behind 1957 residential door-hanger card.

1957 scale model offer - these don't go for cheap on eBay !

 

1957 Edsel paint color chip wheel.

The Edsel’s pre-launch promotional campaign was so extensive that the eventual unveiling couldn’t possibly live up to the hype. The following are some examples of what was produced, and demonstrates how extensive the project really was. Viewmaster even issued a set of 3-D slide discs featuring the Edsel line of cars. It’s also a reminder of how much of a role illustration used to play in automobile advertising. Hardly the case now  … For those of you interested in the advertising end of the story, Foote Cone & Belding (now part of DraftFCB) was contracted to handle the Edsel advertising campaign for Ford. (First Edsel Ad, Edsel Demo Ad)

Pre-launch Edsel ad showing shrouded car. (www.oldcaradvertising.com)

Official FoMoCo press release shots. Ford was nice enough to send these to me for free in 1970.

Premium 1957 Edsel Sales Brochure with complete scans below.

1st Edsel Owner's Manual.

1957 Edsel Features booklet with complete scans below.

A 1959 Edsel.

1960 Edsel sales booklet.

In terms of its distinctive front-grille styling, it’s interesting to see the centered “horse-collar” grille element reduce in size and prominence during the three-year genesis. By the time its last model year arrived in 1960 all that was left was a small inches-high logo shield. It would take another decade with the introduction of the 1968 Pontiac Bonneville, before an American car resurrected this vertical design treatment.

1959 Edsel

1968 Pontiac

Magazines featuring Edsel launch stories 1957. (That's the Sept 1957 issue of Fortune Magazine at the top)

A big event associated with the Edsel’s unveiling was “The Edsel Show” on CBS. Frank Sinatra, Bing Crosby and Rosemary Clooney starred in a special live broadcast celebrating the car’s arrival.

Another televised reference to the car’s “distinctive” styling was a 1961 episode (Season 3/Episode 12) of “The Dick Van Dyke Show. ““The Sound of the Trumpets of Conscience Falls Deafly on a Brain That Holds Its Ears … Or Something Like That!” Rob Petrie witnesses a jewel robbery but can’t seem to remember any details about the crime. He later lets it slip  that the crooks were driving a fire-engine red Edsel – needless to say, it breaks the case. http://www.hulu.com/watch/113989/the-dick-van-dyke-show-the-sound-of-the-trumpets-of-conscience-falls-deafly-on-a-brain-that-holds-its-earsor-something-like-that#s-p17-so-i0

 

For a VERY brief time it was cool to be seen in an Edsel. From a late 1950's magazine on driving behavior for high school students.

Richard Nixon riding through Peru in an Edsel. (Intro page from "Edsel - The Motor Industry's Titanic" Robert Daines)

To learn more of the details behind the Edsel’s “colorful” history, here are several books I’ve found helpful and interesting:

“The Edsel Affair” – C. Gayle Warnock (1980)

“The Fate Of The Edsel & Other Business Adventures” – John Brooks (1963)

“Disaster In Dearborn” – Thomas E. Bonsall (2002)

“Selling The People’s Cadillac” – Jan G. Deutsch (1976)

“Edsel-The Motor Industry’s Titanic” Robert Daines (1994)

My Edsel Owners Club membership card circa 1971.

Thanks as usual go to Corrie Lebens here at JJSP for compiling all this material !

Copyright F+W Media Inc. 2011.

Salon is proud to feature content from Imprint, the fastest-growing design community on the web. Brought to you by Print magazine, America’s oldest and most trusted design voice, Imprint features some of the biggest names in the industry covering visual culture from every angle. Imprint advances and expands the design conversation, providing fresh daily content to the community (and now to salon.com!), sparking conversation, competition, criticism, and passion among its members.

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“Revenge of the Electric Car”: Why the automakers went green

Former gadfly Chris Paine goes inside the car industry for the cutthroat drama of "Revenge of the Electric Car"

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Never let it be said that activist documentaries don’t make a difference, even if the difference they make is never predictable. Filmmaker Chris Paine began as a gadfly outsider to the auto industry, capturing a distinctive strain of eco-grass-roots rage in his 2006 “Who Killed the Electric Car?,” which explored the short and unhappy life of the EV1, General Motors’ late-’90s all-electric vehicle. By 2004, G.M. had reclaimed and destroyed virtually all the EV1′s it had manufactured — they were leased to consumers, rather than sold — and the plug-in automobile, a long-cherished dream of environmentalists, seemed permanently entombed under parking lots full of Hummers and Escalades.

Even in writing about Paine’s first film for Salon five years ago, I got several angry letters from impassioned defenders of the internal combustion engine, who assured me that electric motors were for golf carts, and that the automotive future, like the past, belonged to petroleum. As we now know, the death of the EV1 was hardly the end of the story. Within a few months of releasing “Who Killed the Electric Car?,” Paine found himself watching legendary auto executive Bob Lutz, then G.M.’s vice chairman, drive a prototype of the Chevrolet Volt onto the floor of Detroit’s annual auto show. The widespread electrification of the passenger car, Lutz told him, was “a foregone conclusion.”

A cigar-smoking climate-change denier who’s long been seen as the car enthusiast’s car enthusiast, Lutz was about the last person in the world you expected to start shilling for electric vehicles. Then again, you wouldn’t have expected Chris Paine to make an insider documentary about auto industry competition. His fascinating and highly entertaining new movie, “Revenge of the Electric Car,” is almost like his first one turned upside down, with unprecedented access to the inner workings of G.M., Nissan and Silicon Valley start-up Tesla Motors as they battle to get new electric cars into production. His irresistible cast of characters range from Lutz, the crusty Detroit veteran, to Carlos Ghosn, the globetrotting, ultra-smooth Renault-Nissan CEO, to Tesla co-founder Elon Musk, who burned through his entire PayPal fortune launching his company, to Greg “Gadget” Abbott, a DIY Los Angeles engineer who has rebuilt vintage Porsches and Triumphs as all-electric vehicles.

Visionary entrepreneurs like Musk and Abbott, although they operate on vastly different scales, have been pursuing the electric-car dream for years. But as Wall Street Journal columnist Dan Neil explains in the film, guys like Ghosn and Lutz saw the light very suddenly in the late 2000s, when gas prices began to rise and the global economy slid into the crapper. The business case for building electric cars went from intriguing to compelling to irresistible, and the question rapidly became who was going to get it right and reap the eventual worldwide windfall. Paine seems delighted to root for all three companies and essentially declares a three-way tie, which may be fine for the moment: Both the Chevy Volt — a plug-in hybrid rather than a true electric car — and the all-electric Nissan Leaf have sold encouragingly, although both are very new to the market, and against all odds Musk has kept Tesla alive and hopes to start mass production of his $60,000 Model S sedan next year.

Those who are legitimately concerned about the environmental costs and potential drawbacks of electric vehicles — from the (so far) prohibitive pricing to the dirty electric grid to the limited battery range — will notice that Paine continues to skirt those issues. He’s a crusading journalist when he wants to be, but when it comes to large-scale questions about whether electric cars can really replace the ones we drive today, he’s more like a cheerleader. In “Who Killed the Electric Car?” he suggested that hydrogen-fuel technology, which is also being explored by the auto manufacturers and oil companies, is essentially a scam designed to ensure their long-term supremacy, but he does not revisit any of that here. (My 7-year-old son, who knows more about this issue than I do, forcefully disagrees with Paine on that one.) For whatever it’s worth, Dan Neil, the Journal’s astute (and always entertaining) auto columnist, is on board; he’s been “saying farewell” to a long career of owning and driving gasoline cars over the last few years, he says, and will never buy one again.

“Revenge of the Electric Car” is now playing at the Sunshine Cinema in New York, the Cinema Arts Centre in Huntington, N.Y., and the Nuart Theatre in Los Angeles. It opens Oct. 28 in Nashville; Nov. 4 in Boston, Phoenix, Portland, Ore., San Francisco and Santa Fe, N.M; Nov. 11 in Ann Arbor, Mich., Chicago, Detroit, Houston, Minneapolis, Sacramento, Calif., San Diego, Santa Rosa, Calif., and Seattle; Nov. 18 in Philadelphia; Nov. 23 in St. Louis; Nov. 25 in Denver and Washington; and Dec. 2 in Atlanta, with more cities to follow.

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Toyota Venza’s anti-hipster commercials

After years of trying to sell us cars to make us feel younger, advertisers are trying to turn old into the new cool

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Toyota Venza's anti-hipster commercialsWho wants to be a cool kid?

Car commercials typically come in two types: those marketed to “family adults” and those marketed to “mid-life crisis adults.” The first type of commercial will usually show a mother and father smoothly careening down a country road in their SUV, their 2.5 kids placid and safe in the backseat. Maybe they end up on a beach and take out their surfboards? Or at home, climbing out of their four-door Sedan.  And the tagline will be something along the lines of “Life is full of surprises. Your car shouldn’t be one of them.”

The second type of commercial will be full of hip, attractive people extoling the sleek virtues of the fast, sexy automobile. Since young people aren’t really the demographic for purchasing automobiles, these ads market to those suffering from too much money and Peter Pan syndrome.

The fact that these narratives are the two standards for car marketing is what makes the new Toyota Venza ads so appealing. Conceived by creative agency Saatchi & Saatchi LA, the spots feature aimless twenty-somethings snarking on their parents’ lame, boring lives. These monologues are juxtoposed with shots of older people (presumably the parents) driving around, mountain-biking, and generally partying it up while their progeny stay inside, checking their Facebook stats and rolling their eyes.

The message is shockingly subversive: young is no longer cool. Cool is no longer cool. “You know what’s cool?” says these ads, “Being a grownup.” “The Venza campaign goes directly against how marketers usually talk to boomers,” said Margaret Keene, Executive Creative Director, Saatchi & Saatchi LA.” We wanted to talk to them in a way that was relevant and honest.”

Considering the average age of a new car buyer is 43, the most interesting fact about this “revolutionary” campaign is how long it came for someone to come up with that concept.

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Drew Grant is a staff writer for Salon. Follow her on Twitter at @videodrew.

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