truth in advertising
Posted by Dale Buss on November 5, 2012 03:20 PM
The basic facts have been established: Hyundai and Kia tested the mileage of most of their car fleets incorrectly and made false claims of 40 mpg — too high by 1 to 2 mpg — for a total of six of their nameplates. The U.S. EPA investigated, concluded wrongdoing and slapped the brands' wrists. The companies have admitted wrongdoing, moved to change their mileage ratings on stickers and other communications materials, and launched a program of reimbursing owner "victims" with debit cards for extra gasoline.
But what's more important about this incident is a big unknown: How will it affect the Hyundai and Kia brands in the U.S. market, which has been burgeoning for five years now as Japanese and American competitors each have encountered various sorts of difficulties? It could easily sour Americans on the two sibling brands. Clearly, someone at the company strained to deliver the 40-mpg ratings, because the mileage "gains" now shaved by correct testing procedures just happen to have dropped each of the models below the magic level of 40 mpg.
"We are extremely sorry about these errors," John Krafcik, head of Hyundai in the U.S., said in a statement. But apologies and gasoline cards alone may not cut it.Continue reading...
Posted by Dale Buss on November 5, 2012 09:01 AM
AB InBev sees continuing market-share losses by Budweiser in U.S.
Weather Channel hopes to maintain Sandy ad dollars.
Hyundai and Kia take hits on EPA mileage claims.
Amazon gets major push-back from traditional booksellers.
Best Buy may be facing existential questions soon.
Boeing to get big helicopter order from India.Continue reading...
Posted by Dale Buss on November 2, 2012 09:07 AM
Chrysler exec tweets a rebuff about Donald Trump comment on Jeep jobs, as UAW leads ethics complaint vs Romney over auto rescue remarks.
Apple's iPad Mini launches globally to shorter than expected lines; secures Lion trademark.
Barclays facing a $470 million fine for alleged energy market manipulation, and a corruption probe.
Australian court rejects free range trademark move.
BlackBerry 10 is on schedule for early next year, RIM says.
Bloomberg Businessweek pins Sandy on global warming in cover story.Continue reading...
Posted by Dale Buss on October 5, 2012 11:25 AM
Hyundai has accomplished so much in so little time in boosting sales and market share in the United States that the brand now has a new problem: It's bumping up against capacity restraints. With a 5-percent share of the American auto market, ranking it as the seventh-biggest seller in the U.S. behind the Detroit Three and the Japan Three, Hyundai can't get many more cars out of South Korea and is feverishly adding capacity in the U.S.
That means Hyundai Motor America CEO John Krafcik must advance the Hyundai brand in other ways, including social marketing moves such as a Re-Mix Lab sweepstakes on Facebook promoting the 2013 Elantra GT, and boosting transaction prices and profit margins, continuing to raise quality perceptions, and introducing still more nameplates. "I'd rather be a little bit short on production and long on quality," he told USA Today.Continue reading...
Posted by Dale Buss on October 3, 2012 09:43 AM
Toyota and Honda have come roaring back in the U.S. market this year, as many predicted when both big Japanese brands were hamstrung by last year's supply-chain disasters. Toyota's 42-percent gain in September sales and Honda's 31-percent increase underscored their resurgence.
The question now is: What's the long-term trend line? Are the Japanese Big Two going to manage not only to recoup the market share they lost last year but perhaps even renew their old practice of taking still more U.S. market share from other players?
It's too soon to tell. But over the last several months, Toyota and Honda have left no doubt that they are back indeed.Continue reading...
Posted by Dale Buss on September 28, 2012 08:54 AM
Facebook launches "Gifts" under crafty data play and deletes fake "likes," dropping page views, as it teams up with Gates Foundation to launch apps for future college students.
BlackBerry maker RIM reports loss but sees cash pile grow.
Chrysler backs Motown musical.
Coca-Cola partners with Olympic medalist for soccer camp.
David Beckham nets hugely from his sponsorship deals.
GE is upbeat on industrial outlook.Continue reading...
Posted by Dale Buss on September 27, 2012 06:18 PM
Auto executives from around the world, car journalists, and thousands of other hangers-on are flocking to the French capital for the Paris Auto Show which is kicking off with an end-of-the-week preview of new models and concept vehicles for the media.
One automaker after another is primping itself for the Parisian catwalk — such as the renascent Volvo, which is unveiling new variants of its V40 at the exhibition, and the snazzy new Jaguar F-TYPE, which was feted at the Musee Rodin Thursday night with celebs on hand including American chanteuse Lana Del Rey, above.
But unfortunately, a pall is hanging over the hall and the show's participants: the growing distress of Europe's auto market, which seems to be worsening not only quantitatively but perceptually every week.Continue reading...
Posted by Dale Buss on September 4, 2012 08:56 AM
Airbus sees demand in Asia driving future airliner market.
Apple sees rivals rush to make news before introduction of new iPhone.
Asia Pulp & Paper tries to improve green image against skepticism.
Baidu launches mobile web browser.
Bloomingdale's woos woos men with BMW cross-promotion.
Burt's Bees relies on consumer insights from "Burt's Buzz" community panel.
Chrysler posts 14-percent gain in August sales, leading parade of today's industry sales reports.Continue reading...