Did Mazda Canada Start Leasing Due to Twitter?

Tino Rossini is very interesting person I have come to know through social media. He is part of an automotive blog based in Canada called Strada: Energize Your Automotive Experience. The blog covers a lot of aspects common to most automotive blogs: reviews, thoughts on the industry, some motor-sports but what makes this blog a bit more unique is Tino who is a retiree with a lot of interesting perspectives and historical knowledge of the industry and also someone very engaged in social media.

Why am I sharing all this on an automotive marketing blog?

Well this morning Tino shared with me a post on his blog that shared an example of how a brand (@MazdaCanada), a dealership (@AchillesMazda), a user forum (@MazdaForums) and an automotive blogger (@stradablog) all conversed on a review of a Mazda 6 that possibly contributed to Mazda Canada offering leasing on the 6, which it wasn't doing until shortly after some exchanges on Twitter.

All of this could've just been coincidence, but it is an interesting tale and probably had some impact on the decision.

Read the article here for the full story.

This is interesting because it demonstrates a couple things 1) how brands are engaging online 2) how dealerships are actively participating 3) how forums are getting outside of message boards and on to Twitter 4) how social media can impact marketing sales strategy.

Auto Sales Forecast Hit By Analysts' Loss of Confidence

Automotive sales forecasts for 2009 are getting repeatedly slashed as consumer confidence plummets. New numbers from J.D. Power show an anticipated 10.4 million unit sales, that's 1 million less than the number they had going into 2009.

With the stock market falling to a number that is half from it's peak in 2007 and with mid-600,000 numbers of new people seeking unemployment benefits, no of this comes as a surprise.

From the Associated Press: "Automakers such as Kia and Subaru, which many car buyers view as high-value brands, could also outperform the competition, he said. Subaru is the only automaker that Toprak expects to post a sales increase for the month.

Sales of the automaker's top-selling all-wheel drive Forester, which starts at $19,995, more than doubled to 5,162 units in January." more.

One Marketing Campaign that Is Actually Working

When I saw Hyundai's Assurance campaign debut in late 2008, I knew Hyundai was going to hit a cord with the current economic climate. Several automakers were throwing more money and more money and yes... you guessed it, more money to entice new auto shoppers. Meanwhile, Hyundai started a program to put consumers at ease by letting them return their new lease within 12 months of purchase if they are laid off (some restrictions apply.)

No surprise auto sales were down significantly in January 2009, but one company shined with a 14.3% gain in a month where most automakers were taking a 30-60% decline in sales. Hyundai was the leader (Kia and Subaru did okay too) and after looking at the sales by model it is clear the sales jump wasn't isolated to the sales of their all new North American Car of the Year Genesis sedan.

The Hyundai Accent, Sonata, and Santa Fe all saw significant jumps in sales year-over-year. Since nothing is really pushing these sales other than Hyundai's Assurance campaign, it is clear this program is getting some great traction for budget minded consumers.

The next question is who will copy Hyundai's lead after seeing their January 2009 surge in a down economy. It definitely proves that saving thousands of dollars is not the impetus automakers expect it to be; it's taking on the elephant in the room - consumer confidence.

Is Smart the Right Product at the Right Time?

It was just announced today that the new Smart car fortwo surpassed the 15,000 units they expected to sale and not by an insignificant margin in a down market. They sold 25,000 units overall and had 100,000 people send in their $99 checks to reserve a Smart car in 2008.

The reservation approach was part of Smart’s marketing push to get people to pre-order a vehicle prior to the car’s launch in the United States. Smart did no TV and went with an online campaign approach, similar to what Mini did back when it launched its brand in the States. Apparently, if you are a stylish, European, small car you will launch with an online campaign and avoid the expense of TV since word of mouth is bound to drive your sales.

Smart is constantly hailed as a car for the consumer looking for high mpg economy in a world of unstable gas prices. But a lot of cars are being offered for this new shift to fuel economy conscience customers. Toyota has the Yaris. Honda has the Fit. The Yaris and Fit are not attractive cars. They are pure economical choices for a cost driven customer. Meanwhile, Smart and Mini offer high mileage choices but with the added benefit of being stylish and iconic.

After finishing a tumultuous 2008 in automotive sales and crazy up and downs at the fuel pump, it is interesting to see how a car is correlate to the gas pump. The Honda Fit and Toyota Yaris are definitely following the behavior of bouncing gas prices while the Smart and Mini keep a relatively steady, almost predictable, sales stream.

It really makes me wonder two things:

1.) Is stylish and fuel-efficient the perfect combination in today’s market?
2.) Do Mini and Smart simply sell a consistent number of vehicles because they limit supply so much that we do not see the sales swings found in higher production unit vehicles?

What are your thoughts?


Note: The chart's nameplate sales by month come from Automotive News and the gas prices come from the Energy Information Administration. Official Statistics from the US Government. 2008 Data on Average US Retail Gas Prices

Smug Shoppers Cutting Back

Oil has dropped considerably, losing 50% of its price since hitting $100 a year ago. A global economic crisis is setting in and consumers are cutting back on their auto buying in a dramatic way. This change has dramatically impacted hybrid sales. Yes, hybrids - the darlings of the automotive industry as consumers were supposed to move to green vehicles in a major way after seeing $4 plus gas prices in 2008.

Well guess what? Gas prices fell more than half in late 2008 and hybrid sales followed with a 53% drop in sales from a year earlier, compared to a 37% drop in car sales overall. Go figure, someone isn't as willing to pay a $3,000 - $5,000 markup for adding an electric engine to a gasoline powered car when their wealth is falling and their job stability is in doubt.

All of this change should shift how hybrid cars are marketed.

You have to wonder first if the hybrid message is losing its cache with the newer innovative technologies like Electric Vehicle (EV) cars coming in 2010 that will certainly be the focus, desire of the green consumers. I also question if hybrids will simply lose sales because its consumers are those in the lower $100k household income range that are being impacted considerably by the loss of value in their McMansions and stock portfolios and are already cutting back considerably on luxury labels like Coach, Williams-Sonoma, and Juicy Couture. Hybrids have come to be more of a status symbol than a true revolution in automotive design. Don't get me wrong, they are a step in the right direction, just not a major shift since they still require gasoline engines to function.

The marketing shift should focus beyond just green-minded consumers. I think Toyota has done well with their Lexus Power of h campaign, but it is solely tailored to a green consumer and does not extend beyond them. Certainly, green consumers are already aware of the hybrids and it is now more about reaching to the customer who isn't buying green products and showing them that hybrids aren't all flowers, blue skies and green valleys. It's about making hybrid a more intelligent choice (e.g. innovative technology, proven efficiencies) and showing hybrid isn't something that is just for wimps or smug greens.

It will be interesting to see how hybrid marketing evolves in the coming years, especially as hybrids start spanning different vehicle segments. Cadillac is definitely struggling with its Escalade Hybrid, but that doesn't surprise anyone. The good news is that cars like the Tesla Roadster (full electric) and the new Ford Fusion Hybrid aren't tin can econoboxes or vanilla looking sedans. Some style is finally coming into the green vehicle segment.