Bob Lutz Retires From General Motors

Bob Lutz, after a colorful 47-year career in the global automotive industry, retired from General Motors on May 1st and gave his employee farewell speech earlier this week. The 78 year old Lutz, born in Zurich, Switzerland, began his automotive career in 1963 at GM, after serving as a jet-attack aviator in the United States Marine Corps. Lutz held held a variety of senior sales and marketing positions at GM in Europe until 1971 when he went to BMW in Munich for the next three years serving as executive vice president of global sales and marketing and Board member. In 1974, Lutz started a twelve year run at Ford, followed by twelve years at Chrysler where he held executive and Board positions at both companies. Prior to rejoining GM as vice chairman of product development in 2001, Lutz was chairman and chief executive officer of Exide Technologies. Shortly after rejoining GM, Lutz was named chairman of GM North America and served in that capacity until April 2005, when he assumed responsibility for Global Product Development. 

Lutz was a jet-attack aviator in the United States Marine Corps from 1954 to 1965 while earning his bachelor's degree in production management in 1961 and master's degree in marketing in 1962 from the University of California-Berkeley.

I've heard Bob speak many times in multiple languages and he's truly a one-of-a-kind straight shooter who had simple common sense goals to make the best vehicles. He is a great friend of the media and may be retiring, again, but we'll keep hearing from and quoting Bob for a long time. All the best Bob - see you soon!

(photo at North American International Auto Show - Detroit, January 2010 - with yours truly)

2011 Ford Fiesta In Idol Tonight, In Showrooms This Summer

Ford is launching the all-new 2011 Ford Fiesta with an ad campaign built around "It's a pretty big deal" theme and it debuts with a new 60-second tv spot tonight during  "American Idol," which airs 8 to 9 p.m. on FOX. It opens with two people sitting in a Fiesta talking about the vehicle's push-button start feature. The 60-second ad also will be running in cinemas this summer, appearing on the big screen just before the movies start. The campaign includes national broadcast, print, digital and out-of-home components as well as a multicultural marketing strategy.

The print ads get straight to the point with headlines like, "The Fiesta gets 40 miles per gallon. 21 hybrids do not," and "The Fiesta has enough new-world technology to put a 50-grand car to shame." The ads will be featured in a variety of publications – from women's magazines like "In Style" to men's lifestyle titles like "GQ." 

In addition to television commercials, print ads and billboards, the new campaign also includes extensive digital advertising, which directs consumers to the website.  There will be a total of 16 webisodes. The first set is already online with more than 500,000 people having viewed the first six webisodes since they debuted last week. The second group will post in June.

To illustrate the benefit of having Intelligent Access with push-button start, one of the agents decided to put the Fiesta up against the Toyota Yaris, which doesn't even have keyless entry, and the Honda Fit, which has keyless entry but doesn't have push-button start. In "Dawn of the New Key Fob," a zombie chases all three drivers through the woods. The Yaris and Fit owners don't make it into their vehicles in time, but the Fiesta driver gets into his car and drives away before the zombie attack. Fiesta agent Brittani Taylor (above) appears in a webisode titled "Fiesta vs. Lamborghini," which pits the Fiesta against a $200,000-plus Lamborghini sports car.

Ford has developed a multicultural marketing and advertising campaign designed specifically to communicate the Fiesta message to young African Americans and Hispanics which research shows are two of the largest consumer groups in the small car segment.  Ford will increase Fiesta awareness in the Hispanic community through print and broadcast advertising predominantly Spanish with some English phrasing.

Hyundai Veteran Chris Perry Moves Up to VP of Marketing

Chris Perry, a 10 year Hyundai Motor America veteran, moves from Director of Marketing Communications to Vice President of Marketing replacing Joel Ewanick who jumped to Nissan in February then General Motors a few weeks ago.

Perry will be responsible for all Hyundai marketing communications and brand development in the United States and report to Hyundai Motor America President and Chief Executive Officer John Krafcik. Prior to joining Hyundai in 2000, Perry worked in strategic planning and advertising for Isuzu, and held marketing positions at the Della Femina McNamee agency. Prior to that he worked at the consulting firm Diagnostic Research. Perry received a Bachelors of Science in Marketing from California State University Northridge. He lives with his wife and two children in Irvine, California.

All-New 2011 Volvo S60 Will Start At $38,550 In Late 2010

The all-new 2011 Volvo S60 sport sedan will start at $38,550 including the $850 destination charges. VCNA President and CEO Doug Speck says "When you consider you can own an extremely well-equipped 2011 Volvo S60 for only $41,400, and that you will pay nothing to repair or maintain the all-new S60 for 5 years or 60,000 miles, it really becomes a no-brainer."

The all-new Volvo S60 sport sedan comes standard with a new infotainment system which includes a 7-inch high-definition color monitor accessed through steering-wheel mounted controls. Information regarding the audio system, in-dash DVD video player, climate and vehicle settings are monitored and controlled through a thumb-activated rotator. Other standard features include a six-speed Geartronic transmission, 18-inch alloy wheels, a sport-tuned Dynamic chassis, speed sensitive steering with driver-selectable settings, Bluetooth, HD Radio and Sirius Satellite Radio with a complimentary six-month subscription. The all-new Volvo S60 comes standard with City Safety, an auto braking system which is active from 2 - 18 mph and automatically stops the S60 if the car in front unexpectedly stops.

Volvo will also offer Pedestrian Detection with Full Auto Brake in which radar- and camera-based system can detect pedestrians in front of the car, warn the driver if anyone walks out into its path - and then automatically activate the S60's full braking power if the driver fails to respond in time.

The all-new 2011 Volvo S60 sport sedan goes on sale in late 2010 around the time when Geely of China completes its purchase of Sweden-based Volvo Car Corporation.

2010 Lexus GX 460 SUV Lift-off Oversteer Problem Corrected

Consumer Reports is lifting the Don't Buy: Safety Risk designation from the 2010 Lexus GX 460 SUV after recall work corrected the problem in a test where the vehicle is driven through a turn and the driver quickly lifts his foot off the accelerator pedal to see how the vehicle reacts. Consumer Report's testers found the GX460 rear end slid out until the vehicle was almost sideways. Although the GX 460 has electronic stability control, which is designed to prevent a vehicle from sliding, the system wasn't intervening quickly enough to stop the slide. Lexus duplicated the problem on its own test track and developed a software upgrade for the vehicle's ESC system that would prevent the problem from happening. The software fix takes about an hour and a half at the dealership.

After the fix, Consumer Report's engineers again put the SUV through the full series of emergency handling tests and found that this time, the ESC system intervened earlier and its rear did not slide out in the lift-off oversteer test.

2011 Jaguar XJ Is Hitting U.S. Showrooms Now With a Media Blitz

The all-new 2011 Jaguar XJ, which was first introduced in London last July and officially shown at the Frankfurt Auto Show in September (see photos), is hitting U.S. showrooms now. Along with their U.S. launch is City Takeover, a national marketing initiative that consists of extensive broadcast, print, digital and outdoor advertising across the U.S. with a focus on sponsorship and public relations initiatives in Los Angeles and New York and Miami. Also, a new national television advertising campaign and branded entertainment initiatives are hitting the airwaves, including an appearance in JAY-Z's music video, "On to the Next One." 

Jaguar will execute more than 50 events, media and consumer test drive events, partnerships and collaborations in each city with an emphasis on engaging consumers and tastemakers in the areas of fashion, design and entertainment.

The XJ has a starting price of $72,500 MSRP with standard (XJ) and long wheelbase (XJL) models and three engine choices for the U.S.:
* 385 horsepower 5.0 liter V8: XJ $72,500 and XJL $79,500 MSRP,
* 470 horsepower 5.0 liter supercharged V8:  XJ $87,500 and XJL $90,500 MSRP,
* 510 horsepower supercharged 5.0 liter V8: XJ $112,000 and XJL  $115,000 MSRP.
All prices include an $850 destination and delivery charge. Tax, title, and registration fees not included.

Along with the XJ launch is the new Jaguar Platinum Coverage which features a five year/50,000 mile new vehicle limited warranty and complimentary scheduled maintenance for the duration of the warranty period, including no-cost replacement of select wear and tear components, and 24/7 roadside assistance.  This no-cost coverage includes oil changes, filters, brake pads, brake discs, brake fluids and wiper blade inserts.

Jaguar, like Land Rover, is owned by Tata Motors of India. The Jaguar name celebrates 75 years in 2010. 

Joel Ewanick Hired As VP Marketing At General Motors

After three years at Hyundai in Fountain Valley, California and a quick two month stop at Nissan in Nashville, Joel Ewanick (right) is headed for Detroit to replace Susan Docherty at General Motors as vice president, U.S. Marketing, effective May 24.  Ewanick, 49, will report to Mark Reuss, president, GM North America.

As the single point for marketing, Ewanick will have responsibility for improving the positioning of the Chevrolet, Buick, GMC and Cadillac brands and consumer consideration of GM vehicles in the United States.

If awards mean anything, during his three year tenure, Ewanick earned industry recognition as the most impactful automotive marketer in America; Automotive News’ 2009 Marketing All Star of the Year; Brandweek’s 2009 Marketer of the Year; and Forbes’ Chief Marketing Officer of the Year.

Ewanick joined Hyundai in 2007 from The Richards Group, an ad firm, where he served as director of Brand Planning responsible for overall brand and advertising strategy. Ewanick has held executive-level positions at Porsche Cars North America, Yamaha Motor Corporation, U.S.A., Hinckley Yachts and Saatchi & Saatchi Team One Advertising where he led the Lexus account as planning supervisor.

Ewanick earned his Bachelors of Science in Marketing from California State University, Northridge and attended the Wharton School of Executive Training at the University of Pennsylvania.

Susan Docherty's new position at GM will be announced soon.  With extensive sales, service and marketing experience, Docherty has held positions of increasing responsibility in Canada, the U.S., Europe and Asia. Most notable is her brand work, including the launch of the 2010 Buick LaCrosse and GMC Terrain.

"Susan has been deeply involved in GM's sales and marketing initiatives for many years," Reuss said.  “With her drive and focus, she has laid the groundwork for solid plans and rejuvenated our agency relationships, placing us in good stead for the future. We look forward to her contribution across the business moving forward.”

I got to know Joel while he was at Hyundai and he's a very likable, easy to talk-to executive but how Nissan let him slip away after just two months is somewhat of a mystery we'll have to investigate.

Top 10 Selling Vehicles in 2010 Through April - Ford Leads With 3

TOP 10 Vehicle Sales In 2010 Through April

1. Ford F-Series                 143,985
2. Honda Accord                104,101
3. Chevrolet Silverado         102,098
4. Toyota Camry                   96,509
5. Toyota Corolla                  91,672
6. Honda Civic                      78,669
7. Nissan Altima                    74,245
8. Ford Fusion                       70,382
9. Chevrolet Malibu               65,875
10. Ford Escape                    64,237

The Ford F-Series is the top selling vehicle overall, the Honda Accord is the top selling sedan and the Ford Escape has surged to the top of the SUV/CUV race after four months of sales in 2010, almost 9,000 ahead of the Toyota RAV4 and more than 11,000 units ahead of the Honda CR-V.

Chrysler's top seller is the Ram pickup truck at 51,707, slightly more than Hyundai's leading seller, the Sonata at 50,283 in the first four months of 2010.

April 2010 U.S. Auto Sales - Big Gains Over April 2009

General Motors combined April sales for Chevrolet, Buick, GMC and Cadillac was 183,091, a 20-percent increase from a year ago. For the calendar year-to-date, combined total sales for Chevrolet, Buick, GMC and Cadillac are 652,444, up 31 percent from the first four months of 2009.

Ford, Lincoln and Mercury dealers delivered 162,996 new vehicles in April, a 25 percent increase versus a year ago. It marks the fifth month in a row Ford sales have increased more than 20 percent. Year-to-date sales totaled 591,592, up 34 percent.   

Toyota Motor Sales, U.S.A. reported April sales of 157,439 vehicles, up 24.4 percent over a year ago. Year-to-date Toyota sales are 543,125, up 12.8 percent.
   
American Honda posted April sales of 113,697, an increase of 12.5 percent compared to April 2009. American Honda year-to-date sales of 370,109 represent an increase of 12.6 percent.

Chrysler Group LLC reported total U.S. sales for April of 95,703 units, an increase of 25 percent versus April 2009. Year-to-date Chrysler has sold 329,918 vehicles, a 2 percent gain over 2009.

Nissan North America reported April 2010 sales of 63,769 units, an increase of 35.1 percent, compared with April 2009.  Nissan Division sales rose 33.8 percent for the month, while sales of Infiniti vehicles were 46.2 percent higher than a year before. Year-to-date Nissan has sold 291,998 vehicles, a gain of  31.6 percent over 2009.

Hyundai Motor America announced an all-time sales record for the month of April selling 44,023 vehicles, up 30 percent versus one year ago, marking the sixteenth consecutive month of year-over-year retail market share gains for Hyundai. Year-to-date, Hyundai sales are 155,532, up 19.8 percent over 2009.

Kia Motors America announced April sales of 30,036 units sold, a 17.3 percent increase over the same period last year. Year-to-date sales are 106,732, up 12.9 percent from the first four months of 2009.

Volkswagen of America reported April 2010 sales of 23,135 total units, for a 42 percent increase over April 2009, and its tenth consecutive month of sales growth. For the year-to-date, Volkswagen's sales are 81,418, up 39.4% versus the same time frame in 2009. Separately, Audi reported record April sales of 9,319 in the U.S., an increase of 32.9 percent compared to April 2009. This topped the previous record, set in 2007, of 8,106 vehicles sold.

Subaru of America sales for April 2010 were up 48-percent over April 2009 with 23,198 units sold. Year-to-date sales increased 41-percent with 80,692 units sold over the same period last year.

The BMW Group in the U.S. (BMW and MINI combined) reported April sales of 21,111 vehicles, an increase of 9 percent from same month of 2009.  Year to date, the BMW Group total sales volume is 76,162 vehicles, up 7.9 percent compared to the first four months of last year.

Mazda North American Operations reported its seventh consecutive month of sales increases with April 2010 sales of 18,935, an increase of 17.3 percent versus April 2009. Year-to-date, Mazda sales are 74,876, up 7.1 percent.

Daimler AG reported U.S. sales of 18,908 Mercedes-Benz and smart vehicles. smart USA recorded 680 sales in April 2010. On a year-to-date basis, the company sold 68,794 new vehicles, an increase of 25.5% over last year.

Mitsubishi Motors North America April 2010 sales were 3,932, 0.3 % higher than April 2009 and for the year Mitsubishi has sold 17,555 vehicles a drop of 1.1 percent from 2009.

Jaguar Land Rover North America April U.S. sales for both brands totaled 3,645 units, a 10 percent increase from 3,324 in April 2009. On a calendar year to date basis versus 2009, Jaguar Land Rover North America sales are up 7 percent to 12,736 units. Jaguar sales in April were 896 units, down 30 percent  from  April 2009, Land Rover sales were 2,749 units, up 35 percent from April 2009. 

American Suzuki sold 1,950 vehicles in the U.S. in April down 23 percent from April 2009 and year-to-date sales are 7,661, a 57 percent drop from the same four month period.

Sales will be updated as manufacturers report.

American Suzuki Offers "Free Gas for Summer" To Boost Sales

 American Suzuki "Free Gas for Summer" sales promotion offers car buyers three months of free gasoline on retail purchases of any new 2010 Suzuki model, including the all-new Kizashi (above), SX4 SportBack, SX4 Sport sedan, SX4 Crossover, Grand Vitara and Equator. The Suzuki "Free Gas for Summer" sales program kicks off May 1  and runs through Aug. 31. Customers will receive a stored value debit card, ranging in value from $280 to $442, which can be used for fuel purchases. The amount of each stored value gas card is determined by several factors, including an assumed three-month timeframe for summer driving, the car's EPA estimated highway mpg, the Federal Highway Administration's estimated average of 1,000 miles driven per month and the U.S. national average price of one gallon of regular gasoline as determined by the U.S. Energy Information Administration.

The 2011 Kizashi Sport, shown in New York International a month ago, is offered on Kizashi GTS and SLS trim levels and goes on sale in the United States this August. Pricing will be announced closer to the vehicle's arrival in dealer showrooms. Features include a more muscular front fascia with chrome accents and lower grille, body side sill extensions, lower body side molding with chrome accents, a trunk mounted spoiler, custom light weight 18-inch alloy wheels and a 10mm lower ride height.

American Suzuki sales in March were a dismal 2,246, a 72 percent tumble from March 2009 and year-to-date sales through March are 5,661, a 63 percent drop from 2009. We'll find out Monday how the month of April treated Suzuki sales in the U.S. and we'll see how the just-announced free gas for summer promotion and the Sport version of the Kizashi will help move metal.

2010 Saab Aero Sedan Starts At $49,900 In July

The all-new 2010 9-5 Saab top-of-the-line Aero Sedan, arriving in U.S. dealer showrooms in July,  will be priced at $49,990 MSRP.  The Aero will have a 300 horsepower 2.8-litre V6 turbo engine with dual overhead camshaft valvetrain and a twin-scroll intercooled turbocharger mated to the Sentronic six-speed automatic with transmission with paddle shifting. Then it will be shortly followed by the 9-5 Aero introduction with a 2.0-litre turbo variant. Pricing for these 2011 model year vehicles will start at under $40,000 MSRP.

Volvo's VP Design Peter Horbury

2011 Kia Sportage Goes On Sale This Summer

The all-new 2011 Kia Sportage compact CUV, drawing from the styling elements of the Kue concept, is longer, wider and lower than the previous model and displays the new face of Kia, or the “Schreyer” line, coming from its designer Peter Schreyer who joined Kia almost 4 years ago after a long career at VW/Audi where he was famous for his A6 and TT designs. The 2011 Sportage, on an all-new platform, has an overall length of 174.8 inches, overall width of 73 inches, wheelbase of 104 inches, and utilizes independent front-and-rear suspension systems. The all-new Sportage comes standard with a 176 horsepower 2.4-liter DOHC 16-value four-cylinder engine with Continuously Variable Value Timing. A more powerful fuel efficient 2.0 liter Gas Direct Injected turbo powerplant will be available in the 2011 model year. 

 Offered with two-wheel or all-wheel drive configurations paired to either a six-speed manual transmission (base) or a six-speed automatic transmission, Sportage is available in two trims, LX and EX. Sportage EX models have available features, including leather-trimmed seats, heated and ventilated front seats, push button start, rear sonar detector and a panoramic sunroof. The 2011 Sportage will be the second Kia model to offer UVO powered by Microsoft®3, the hands-free in-car communication and entertainment system (standard on EX models) enabling drivers and passengers to answer and place phone calls, receive and respond to SMS text messages, access music from a variety of media sources and create custom music experiences.

MINI USA President Jim McDowell On Countryman Coming Feb. 2011

2010 Lexus GX 460 A Don’t Buy: Safety Risk Says Consumer Reports

Consumer Reports Press Release:

Consumer Reports has judged the 2010 Lexus GX 460 SUV a Don’t Buy: Safety Risk because of a problem we experienced during our standard emergency-handling tests. When pushed to its limits on our track’s handling course, the rear of the GX we bought slid out until the vehicle was almost sideways before the electronic stability control system was able to regain control.

We believe that in real-world driving, that situation could lead to a rollover accident, which could cause serious injury or death. We are not aware, however, of any such reports.

All four of our auto engineers who conduct the test experienced the problem in an exercise used to evaluate what’s called lift-off oversteer. In the test, as the vehicle is driven through a turn, the driver quickly lifts his foot off the accelerator pedal to see how the vehicle reacts.

We perform this evaluation on every vehicle we test, which includes the 95 SUVs in our current auto Ratings. No other SUV in recent years slid out as far as the GX 460, including the Toyota 4Runner, which shares the same platform as the GX.

To confirm our results, we paid for the use of another GX 460 from Lexus and experienced the same problem.

In real-world driving, lift-off oversteer could occur when a driver enters a highway’s exit ramp or drives through a sweeping turn and encounters an unexpected obstacle or suddenly finds that the turn is too tight for the vehicle’s speed. A natural impulse is to quickly lift off the accelerator pedal. If that were to happen in the GX, the rear could slide around far enough that a wheel could strike a curb or slide off the pavement.

Either of those scenarios can cause a vehicle to roll over. And because the GX is a tall SUV with a high center of gravity, our concern for rollover safety is heightened.

Like almost all current SUVs, the GX has standard ESC. That system is designed to prevent a vehicle from sliding out in a turn and has generally worked very effectively in the vehicles we’ve tested. It does that by applying individual brakes and cutting engine power to help keep the vehicle on its intended path. But the GX’s system doesn’t intervene quickly enough to stop the slide, and the rear end swings around too far.

As a result, we are urging consumers not to buy the GX 460 until the problem has been fixed. The GX 460 has been on sale for about three months and about 5,000 vehicles have been sold. We have notified Toyota, Lexus’ parent company, of the problem. We urge the company to develop a remedy as quickly as possible and implement it in new vehicles produced at the assembly plant and those already purchased.

In an e-mail response, Toyota spokesman Joe Tetherow said, “We’re concerned with the results of Consumer Reports testing on the Lexus GX 460 and their suggested buyer recommendation. Our engineers conducted similar tests during the development of the new GX and had no issues. However, we will try to duplicate the Consumer Reports’ test to determine if appropriate steps need to be taken. Please keep in mind that the 2010 GX 460 meets or exceeds all Federal Government test requirements. Customer safety and satisfaction remain our highest priorities. We take the Consumer Reports’ test results very seriously and appreciate them bringing it to our attention.”

We have also informed the National Highway Traffic Safety Administration.

The designation is rare for Consumer Reports; the last time we judged a vehicle’s performance not acceptable was with the 2001 Mitsubishi Montero Limited in the August 2001 issue of Consumer Reports magazine.

Current GX 460 owners: If you own a 2010 Lexus GX 460, we recommend exercising care when exiting the highway or traveling twisty roads. Obeying the speed limit and being alert for potential road hazards should limit the risk of experiencing a problem, like that recorded at the test track. We hope that Toyota can quickly develop a software update for the stability control system and update current models with revised programming.

Lexus response:

"For more than 20 years, Lexus has made customer safety and satisfaction our highest priorities. We are taking the situation with the GX 460 very seriously and are determined to identify and correct the issue Consumer Reports identified. At this time we have asked our dealers to temporarily suspend sales of the 2010 GX 460.

Lexus' extensive vehicle testing provides a good indication of how our vehicles perform and we are confident that the GX meets our high safety standards. Our engineering teams are vigorously testing the GX using Consumer Reports' specific parameters to identify how we can make the GX's performance even better.

For any customer who has purchased a 2010 GX 460 and is concerned about driving their vehicle, we will provide a loaner car until a remedy is available.

As always, Lexus is committed to providing our customers with outstanding products and service.

Nissan Exec. VP Carlos Tavares on JUKE

Scion's Dawn Ahmed On New iQ and tC

Volkswagen's John Ryan On All-New Touareg

Hyundai Equus Product Manager Derek Joyce

BMW's Jim O'Donnell On New 5 Series