plus 4, GM Hopes Aggressive Ad Push Will Win Over Skeptical Drivers - YAHOO! |
- GM Hopes Aggressive Ad Push Will Win Over Skeptical Drivers - YAHOO!
- Good Samaritan donates car to arson victim - San Francisco Chronicle
- 1. Ron Whitton - Off-Road.com
- Glenn Wolhart - Jamestown Sun
- Fun for all - News-Herald
GM Hopes Aggressive Ad Push Will Win Over Skeptical Drivers - YAHOO! Posted: 21 Nov 2009 08:09 AM PST General Motors has emerged from bankruptcy. Now it must step out of the long dark shadow of its own reputation. For years, GM churned out sub-par vehicles that badly lagged Japanese rivals in reliability. Now, there is substantial evidence that GM is pulling abreast of Toyota (NYSE:TM - News) and Honda (NYSE:HMC - News). But nobody seems to know it. Or believe it. "The perception gap is a very real problem," said Jack Nerad, executive market analyst for Kelley Blue Book. "Old perceptions die hard." Bob Lutz, the 77-year-old vice chairman who recently took charge of GM's advertising, is determined to bring consumer perception in line with reality. Despite all its financial woes, GM has been moving up the quality charts for years. Ads can tell that story, Lutz believes. But for many years, he contends, GM's were weak. "Our prior advertising was frequently risk-averse. We didn't make any claims," Lutz told IBD. He recalls a top Procter & Gamble (NYSE:PG - News) executive telling him: "I don't know what it is about your advertising, but it's meaningless." Lutz is moving to change all that with a marketing blitz. Ad spending, which in recent years had fallen as low as 40% or 50% of average spending by rivals, will likely top rivals' spending by 20% in 2010 and 2011, Lutz says. GM will also target wealthy enclaves with promotions designed to get skeptical luxury car buyers to test drive GM's upscale, higher-margin line-up. Hard-hitting TV ads have already begun to directly compare GM vehicles with the competition. "May the Best Car Win" has become the slogan of a company on the attack. "We are going to continue letting the product do the talking," said Lutz. Don't expect montages of families packing their Chevy for picnics or wheeling their Buick along winding country roads. Lutz is convinced GM can and must sell on the specific virtues of its products. "We want an ad to have stopping power. It's got to grab attention," he said. "It must carry some new information when the bulk of viewers say 'Wow, I didn't know that.'" Bob Lutz, Myth Buster The aim is to address what Lutz sees as outdated myths: GM quality is suspect. All GM models burn more fuel than their Japanese rivals. Cadillacs are "big boats with no dynamic excellence." Ads will have to be convincing to reverse the decline in GM's once-dominant U.S. market share, now under 20%. But while the lemony after-taste of bygone GM models has soured many consumers, objective evidence suggests many newer models are world class. Indeed, by many measures, GM -- and Ford (NYSE:F - News) -- have pretty much closed the decades-old quality gap with Japanese automakers. Catching Up On Quality J.D. Power & Associates conducts an annual vehicle dependability study that measures reported problems for autos over their first three years of ownership. Based on responses from 46,000 owners of 2006 model vehicles, Buick tied (with Jaguar) for No. 1 among 37 auto brands for the most dependable. Buick has ranked among the top 10 nameplates since 2003. J.D. Power also tracks "initial quality," measuring the number of problems encountered in the first three months after new car purchases. Cadillac was No. 3 in the latest study and Chevrolet No. 9. Owners of these GM vehicles reported far fewer problems than the industry average. Over the last three years, GM has outpaced the industry in quality gains, notes Steve Witten, executive director of U.S. Automotive Research at J.D. Power. While the industry as a whole has reduced vehicle problems by 13%, GM has improved by 16%. In the last year, GM has improved by 10% vs. an average auto industry gain of 8%. And future numbers could show much stronger gains. Because of GM's desperate need to shed assets, Pontiac, Saab, Hummer and Saturn will be gone. These were GM's worst nameplates in terms of quality, notes Witten. The four remaining brands -- Cadillac, Buick, Chevy and GMC all rank higher. But just as it took years for Japanese carmakers to convince Americans of their quality, buyers nurse memories of trouble-prone GM cars. In 2004, 40% of polled auto shoppers said they would avoid GM for short- and long-term reliability issues. By 2008, the number had swelled to 42%, reports Witten. GM's bankruptcy and rebirth as "Government Motors" probably has not helped. Time To Hit The Beach Nowhere is this problem more acute than on the coasts. Driving a Chevy or Buick in places like Boston or Los Angeles is almost like wearing the Scarlet Letter. Patriotic sentiment and concern for American workers have motivated few in these hip cultural bastions to buy American cars. In the first nine months of the year, GM had an 18% market share, according to auto consultancy R.L. Polk. But it was just 9% in California and 10% in Boston. In L.A., Boston and other coastal urban areas, women and highly educated consumers have enormous spending power. GM's ads never properly addressed these demographics, Lutz agrees. "It was a Midwestern style advertising created by Midwestern-style people," he said. GM ads will not specifically target women. But GM will try to do a better job of appealing to both sexes. Lutz cites the Howie Long ads comparing GM and Honda fuel mileage as showing strong appeal with women. A former NFL lineman (and ex-Nissan (Other OTC:NSANF.PK - News) pitchman), Long delivers his pitch with a jaunty but light touch. Future ads will also emphasize safety and security features, which are "extremely important" to women, according to Lutz. Caddy With Your Coffee? GM also will target the high-end market. Cadillac has never fully recovered from its "big boat" image. But GM says once people sit behind the wheel, perceptions change. "The surest way to get people out of competitors' luxury cars is the driving experience," says Lutz. GM has identified "fewer than 10" zip codes in which 80% of all Lexus RX vehicles are sold. To get people in those wealthy enclaves to consider a Caddy, GM will set up tents near luxury malls and invite people in for coffee, canapes and a test drive of the Cadillac SRX. "We've got to go where these people shop, eat and work. We can't wait for them to come to us," he explained. Is Lutz overly confident of Cadillac's ability to challenge the revered Lexus line? A recent Motor Trend Magazine comparison of the Cadillac SRX with the Lexus RS 350, a pricey and profitable luxury crossover, suggests he's not. "The Cadillac SRX is more fun and rewarding to drive," Todd Lassa wrote in Motor Trend. The Lexus holds the edge in fit and finish, but Lassa chose Cadillac as winner of the road test showdown. "Simply put, the new Cadillac SRX drives the way it looks: sexy, fun, apart from the pack," he concluded. Making The Sale With auto buffs also applauding vehicles like the 2010 Buick LaCrosse and Chevy Malibu, GM may finally have the bullets to pepper the opposition. Witten applauds GM for challenging rivals with "May the Best Car Win." But he thinks GM must go even further. "They need to push it a little bit harder." One sign that the ads have some bite comes from Kelley Blue Book's Nerad: "I know for a fact they've gotten under the skins of people at Honda." The new GM ads must now prove that they are persuasive as well as provocative. Changing perceptions will be hard and GM needs a fast revival. It lost $1.15 billion in Q3, even with the Cash for Clunkers program. Q4 will be worse, the company says. Because of its bad reputation, GM often must sell its cars for less than those of its Japanese rivals. And the high-margin SUVs and large trucks that GM long relied on may never fully recover. This content has passed through fivefilters.org. |
Good Samaritan donates car to arson victim - San Francisco Chronicle Posted: 21 Nov 2009 06:50 AM PST The 32-year-old single mother, one of more than 20 victims of a serial arsonist who has set vehicles ablaze throughout west Contra Costa County, didn't carry car insurance. Suddenly, she had no way to take her children to school or go to class herself at a community college. Miles away in Oakland, day care operator Venita Satterfield, 56, heard about Castellon's plight on the news and was instantly reminded of her own situation more than 20 years ago, when she was a single mother of three, couldn't afford insurance and lost her car to an engine fire. This week, Satterfield opened her wallet. Now, Castellon is making ends meet in a used car, overwhelmed by Satterfield's generosity and the fact that a stranger would help her. "I can't believe that in this world, we still have angels, because she is my angel," said Castellon, who is now tooling around in a Chevrolet Impala, taking her daughters ages 6, 8 and 10 to school, attending culinary arts classes at Contra Costa College in San Pablo and working at catering events. The arsonist destroyed Castellon's car at 5:15 a.m. Nov. 10. It was parked outside her home on the 900 block of Appian Way. In describing her predicament to reporters, Castellon "reminded me so much of myself," Satterfield said. "When I saw her, she just touched me. I thought, 'Here but for the grace of God go I. I'm going to help this lady.' " She added, "Ironically, coincidentally, I had been looking for a new car for myself - I don't need a new car, just wanted one." So Satterfield got used-car dealer Rigo Mendoza involved. Mendoza gave Castellon her pick of six cars at a discounted rate. She chose a white 2004 Chevy Impala for $4,000. "I'm just a person who likes to help the community," said Mendoza, 52, of Hercules, who operates Rigo's Auto Sales in Richmond. "It could happen to my family. It just came to my mind that I should help her." Castellon was so overwhelmed that she promised to give her college diploma to Satterfield. But Satterfield told her just to finish school and help someone else if she gets a chance. "It was what I was born to do," Satterfield said. "I just hope that I start something and it stirs up that little bit of giving in all of us. It's the best thing I've ever done in my life." The serial arsons show no sign of letting up. The latest fire happened at 2 a.m. Friday at an apartment complex on the 2000 block of Vale Road in San Pablo, destroying a pickup truck and damaging another vehicle. Whoever is responsible for the rash of fires since Oct. 31 should "do something positive," Satterfield said, "versus something like this." E-mail Henry K. Lee at hlee@sfchronicle.com. This article appeared on page C - 1 of the San Francisco Chronicle This content has passed through fivefilters.org. |
Posted: 21 Nov 2009 05:31 AM PST Andy McMillin's last SCORE Trophy Truck victory came in 2006 when he drove with Robby Gordon. Although the two didn't race together this year, both were winners at the end of the 42nd running of the Tecate SCORE Baja 1000 in Ensenada, Baja California, Mexico. McMillin earned another Baja victory with his father Scott sharing driving duties. This was Scott's first Baja 1000 overall victory and third class win in SCORE Trophy Truck. Gordon entered the race with a massive points lead in the Trophy Truck class, so much so that he essentially needed to cross the finish line for the 2009 SCORE Desert Series Championship. But the competitive racer who splits his time between NASCAR and off-road racing wasn't looking to limp across the finish line at the 1000. Unfortunately Gordon had some technical issues that prevented him from staying at the front of the pack, whereas the father-and-son team of Scott and Andy McMillin scored their Baja 1000 win with a trouble-free day. "The plan was to kind of take it easy and let the race come to us," Andy said at a press conference after the race. "We knew Sal laid out a really rough, tough course this year. And we knew it was going to take one truck that didn't have any problems to get the win. So that was our plan all day was just to stay smooth, and not have any down time and no flat tires." Andy drove the first leg of the race to mile 200, and his father Scott drove the San Felipe loop and up past Mike's Sky Ranch, with Andy getting in and bringing it home the last 175 miles or so. "My dad got me a hell of a lead, so it was pretty easy," Andy said. Scott went on to thank the crew that worked tirelessly over the last year to help the team get to this point. "A Baja 1000, you just don't come down here and decide to race this thing a month in advance," Scott said. "This takes a whole year of planning. We have a dedicated team back at our shop of about five core guys that work full time on this, and plus there's another 20 volunteers that are with us at all the races, all the pre-running, all the planning … we just couldn't have done it without all of them." Despite having a major tangle with BJ Baldwin just after 100 miles into the race, the team of Roger Norman and Larry Roeseler were still able to put forth an impressive performance to finish in second place 31 minutes and 37 seconds behind McMillin. "Larry and BJ got their bumpers tangled," Norman said. "BJ Jumped out of his truck and ran down to some guys, and he came back with a Cherokee with a tow strap to help get us out. I think BJ lost his transmission after that. We just had handling problems the whole way. It felt like we had no rear shocks at all, like we were just on springs." Rick D. Johnson led much of the race, but like many other racers in the Trophy Truck field, the rough course took its toll on his vehicle. "It was a brutal day, we just had to fight some issues," Johnson said. "The steering, I got feedback so bad that I couldn't hang onto the wheel. We lost the GPS for a long time, in [San Felipe] I believe." Still, Johnson was able to bring his truck across the finish line to take the last podium spot in Trophy Truck. Robby Gordon crossed in fourth but actually finished in fifth place on corrected time behind Gustavo Vildosola, Jr. After the All German Auto Armin Schwarz led much of the race in the Class 1 field, the team of Jerry Penhall and Dan Martin moved into the lead after Schwarz had mechanical issues and maintained it to earn the Class 1 victory, finishing just 2 hours and 10 minutes behind McMillin on corrected time. Schwarz needed to finish in first place to win the overall championship, but a transmission leak took too long to repair and the team got behind and was unable to recover. Penhall, a reputed buggy chassis builder in the off-road arena, took the Class 1 win on the same night his nephews Ryan and Connor Penhall were runners up for the overall in the motorcycle class. Schwarz was the next Class 1 vehicle to cross the line behind the Penhall, but he was over 13 minutes behind the team. Here are the unofficial times from SCORE for the top five Trophy Truck finishers: This content has passed through fivefilters.org. This posting includes an audio/video/photo media file: Download Now |
Posted: 21 Nov 2009 04:34 AM PST Glenn Allen "Dingus Magee" Wolhart, 47, Valley City, N.D., died Thursday, Nov. 19, 2009, at Mercy Hospital, Valley City. Mr. Wolhart was born Feb. 12, 1962, in Valley City, the son of Arden and Doris (Faust) Wolhart. He was baptized Nov. 3, 1974, at First Baptist Church, Valley City. He grew up and graduated from Valley City High School, Valley City, in 1980. He married Becky Johnson on June 20, 1980. He worked at Dietrichs, D.L. Wiest Trucking, Triebold Farms (Altrans) and Truck and Auto Salvage, Valley City. He was a member of Valley City Eagles Club, where he called bingo, and First Baptist Church, Valley City, where he ran the sound board every Sunday and sang in the choir. He enjoyed collecting A&W memorabilia and miniature semi trucks and trailers. He is survived by his wife; two sons, Scott (Missy), Tower City, N.D., and Steven (Franki), Steele, N.D.; a daughter, Jennifer Wolhart, Valley City; his parents, Valley City; two sisters, Nancy Wolhart, Fargo, N.D., and Arlene (Kevin) Knudson, Larimore, N.D.; three brothers, Calvin (Jewel), Jamestown; Keith, Pacific Grove, Calif., and Neal (Heather), Fort Collins, Colo.; and four grandchildren. Services: 2 p.m. Tuesday, First Baptist Church, Valley City, with the Rev. Allan Gerber officiating. Prayer service: 7 p.m. Monday at the church. Visitation: 4 to 7 p.m. Monday at the church and one hour before the service at the church. Arrangements by Lerud-Johnson-Schuldt Funeral Home, Valley City. Burial: Memory Gardens Cemetery, Valley City. Online guestbook: www. lerudjohnsonschuldt.com This content has passed through fivefilters.org. This posting includes an audio/video/photo media file: Download Now |
Posted: 21 Nov 2009 03:44 AM PST Home for the Holidays, a special Third Friday event, is set for today in Wyandotte. This content has passed through fivefilters.org. |
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