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Hyundai and Kia Mileage Credibility Gap Affecting Purchase Intent

Posted by Dale Buss on November 28, 2012 04:04 PM

So far, the brand brain trusts for Kia and Hyundai have been keeping their own counsel about how they might react further to the equity damage done by their gas mileage misstatements that surfaced earlier this month. But early returns suggest they might not want to wait too long.

The sibling Korean-owned brands are suffering declines in "purchase intent" as measured by Edmunds.com, with most Hyundai and Kia models taking hits in that specific indicator for the few weeks ending November 18, a couple of weeks after the brands disclosed that they had mistakenly inflated gas-mileage ratings for several of their most fuel-efficient vehicles, admitted it to the EPA, and began reimbursing owners financially for the violation.

The errors reportedly arose from procedural errors, as Canada's Globe and Mail noted: "The joint testing operations in South Korea led to incorrect fuel consumption ratings. Hyundai and Kia have revised upward their average combined fleet fuel consumption ratings by 0.3 litres/100 km for the 2013 model year. 'I sincerely apologize to all affected Hyundai and Kia customers, and I regret these errors occurred,' said Dr. W. C. Yang, Hyundai/Kia’s chief technology officer."

As part of the response, Hyundai US created a website explaining the adjusted fuel economy reimbursements, as did Kia. Kia also released a nostalgic TV commercial, above, evoking its 60 years in the US and "how far we've come since that first bicycle." But it may need to do more to reassure car buyers.Continue reading...

brand news

In the News: A&P, Coca-Cola, Wal-Mart and more

Posted by Dale Buss on December 13, 2010 09:00 AM

In the News

A&P files for bankruptcy.

Amazon reveals holiday boom in Kindle sales.

Apple reveals its top-selling apps of the year.

Buick underwrites travel series on MSN.

BYD seeks to charge up its U.S. business.

Carlsberg innovates global growth.

Coca-Cola and Apple lead global “word-of-mouth” brands.

Coty and L’Oreal snap up prominent local brands in China.Continue reading...


Chevrolet Goes Hunting

Posted by Shirley Brady on September 14, 2010 12:00 PM

The Chevrolet brand is on something of a hunting expedition lately, rolling out three hunting-themed campaigns so far this month.

On Sept. 1, a series of spots for the Silverado rolled out, targeting US deer-hunters.

Last week, in a takeoff on the HGTV series House Hunters, Chevrolet launched the Car Hunters Challenge with "third-party independent research firm, GfK, to conduct drive clinics with customers who are shopping for a new vehicle."

Today sees the latest chapter in its hunting expedition: the Chevrolet Cruze putting Honda in its sights with the "Dear Civic" (Deer Civic?) spot above.Continue reading...

start your engines

Camaro Wins Edmunds’ Nod

Posted by Dale Buss on July 16, 2010 05:30 PM

Though it remains for now a stripped-down, sales-deprived ward of the state, General Motors has been getting lots of good news about its products lately.

On Friday came some more: the new Chevrolet Camaro won Edmunds.com’s first-ever Launch Breakthrough Award.

The leading automotive-information web site selected the redesigned Chevy sports car as the best-performing launch vehicle of the last year, judging by a formula that includes factors ranging from five-year projected residual value to dealer profit margin.Continue reading...

brand roadmaps

Sensing Recovery, Automakers Revive Gasping Brands

Posted by Dale Buss on December 2, 2009 06:31 PM

As U.S. auto sales continued their slow creep back toward recovery last month, yet another glimmer of hope emerged from the industry’s long period of carnage: hints of revival of hot products and torrid vehicle brands in a very old-fashioned display of pure consumer passion, as well as modern-day practicality.

Remember a couple of years ago, when new vehicles like the completely overhauled Chevrolet Malibu and the Honda Fit routinely created brand excitement among American consumers? The industry’s epochal collapse and the nation’s long-running recession quenched such fires for a while.

But in the details of the November sales results reported yesterday – with industry-wide results about flat with a year earlier – it was possible to find some encouraging returns about individual new vehicles that honestly have little to do with stratospheric fuel-economy numbers or low monthly payments.

Take the Lexus RX, for instance. Earlier versions of this rakish SUV established a design template for the segment that competitors are still imitating. And yet a recently introduced new version of the classic model is leading a renaissance at Toyota’s luxury division, which had been suffering for many months along with the rest of the high end of the American automotive market.Continue reading...

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