October 20, 2011

Small Cars with Personality Attract Younger Buyers
The Kia Soul has become a star on YouTube: In a television advertisement, the small, angular Soul is driven by hip-hop hamsters through a world of dull cardboard box cars. The Soul stands out as the only cool one – a truck-like car with a pugnacious appearance whose offbeat, almost cartoonish character appeals to young drivers. Click here to watch one of the Kia hamster commercials. Designers are increasingly turning out small cars with quirky characters to woo young drivers, reports The Detroit News. This year's quirkiest new vehicle may be the Nissan Juke crossover, whose hood-mounted headlights and haunchlike rear fenders make it resemble an aggressive bullfrog. Such strikingly individualized small cars contrast with the reliable but unadventurous economy models of the past, like the Toyota Corolla, a world sales leader for generations. Now Scion offers the tiny but friendly iQ, and Chevrolet is rolling out the Sonic (whose name even sounds like a video game character). Ford has replaced its bland small cars of the past with the Fiesta and Focus: sportier, more sculptured models introduced in Europe, where small cars are given more design attention. Read coverage of quirky, small cars and their appeal to younger buyers here.

Fed Spots Stronger Auto Markets for Dealers in Most Districts
The auto market has been among the bright spots for many parts of the country lately, as most Federal Reserve Districts saw car sales climbs and improvements in new-vehicle supply following disruptions earlier this year. Auto Remarketing reports that these were just two of the findings in the latest Beige Book report from the Federal Reserve Board, which delved into how dealers throughout the country have been faring in recent weeks. Overall, the San Francisco and New York districts have shown the greatest uptick in new-car sales, the Fed reported. Meanwhile, on the used side of the market, three districts – New York, Philadelphia, and Dallas – were still seeing high demand as well as tight supply for some models. The Fed broke each of its 12 districts down. In the Second District, which includes New York, sales were “brisk.” For upstate New York, thanks in part to inventory getting back on track, sales for this reporting period improved compared to the previous one. On the west coast, in the 12th District, there were significant gains in new-car sales, thanks to hearty demand and restocked supply following the Japanese disaster. See how your district fared in the latest Beige Book report from the Federal Reserve Board here.

BMW Aims to Maintain Dominance with New 3-Series
In an era of product proliferation, few vehicles better define a brand than the BMW 3-Series. According to MSNBC, it’s not only the best-selling line in the compact luxury segment, it’s also the top seller in the Bavarian maker’s product portfolio. So there’s good reason for all the attention being paid to the all-new 2012 3-Series that's making its formal debut this month. With new products also on tap from other key competitors -- notably including the Mercedes-Benz C-Class – this could be one of the most important launches BMW has had in a number of years. The sixth-generation model is the direct descendant of the 2002, the car that put BMW on the map and helped justify its corporate tagline as “the ultimate driving machine.” Click here for a picture. “We are confident that the new BMW 3 Series will build on the tremendous success of its predecessors,” proclaimed BMW Chairman Norbert Reithofer during a premiere in Munich where he described the line as “the world’s most successful premium vehicle.” With a more sporty design, better mileage and improved performance, analysts are betting that the new 3-Series will maintain, if not gain, momentum. For details on the newly redesigned BMW 3 Series, click here.

Expenses Fell Mercedes Boss
Daimler AG dismissed the chief of its U.S. Mercedes-Benz operations earlier this week over the company's allegations he paid for personal expenditures with company money, reports The Wall Street Journal. The German luxury car maker this week unexpectedly removed Ernst Lieb – a well-regarded, 36-year company veteran who took over its U.S. operations in 2006 – from his post. It provided no explanation for the move. He remains at the company in an undisclosed role, Mercedes said Tuesday. The action came after questions were raised about the 56-year-old German executive's adherence to its expense and compliance policies, those people said. Daimler last year settled a bribery investigation by the Securities and Exchange Commission. Since then compliance matters have become a top priority at the automaker, executives said Wednesday, and it has become more vigilant in responding to potential transgressions. While the company has replaced Mr. Lieb in the interim with Herbert Werner, Mercedes's U.S. finance chief and another Daimler veteran, analysts say the German auto maker will be pressed to tap a permanent successor with as deep an understanding of the U.S. market and Mercedes's dealer network there as Mr. Lieb. Click here for more on reasons for the dismissal of Ernst Lieb.

Hyundai Marketing Boss Wants to Fuel Passion for the Brand
Just two weeks into his job as head of marketing for Hyundai Motor America, Steve Shannon scrapped a campaign for the 2012 Veloster developed by the company's ad agency, Innocean. "I thought we could do better," he said. He developed an idea of 15-second spots to grab the attention of Gen Y buyers, consumers born between the early 1980s and the early 1990s. Each spot emphasized a different feature of the car, which includes a front-seat screen to watch movies and the ability to play Xbox video games. Automotive News reports that the ads, unveiled this month, represent Shannon's first substantial marketing effort at Hyundai. He takes the reins at a time of unprecedented sales success for the company. Shannon said his goal is to build on the "truth, candor and conversation" foundation established by former Hyundai marketing chief Joel Ewanick, while "innovating and pushing the brand forward." To that end, he's focused on creativity and concepts "that don't just support the Accent or Sonata, but sell the Hyundai brand." His goal is to have potential customers check out Hyundai first, instead of being drawn to the brand because of one particular car. Read more about Hyundai’s new marketing boss here.

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Around the Web
See What an F1 Driver Really Sees While Racing [Autoblog]
Kia Wants to be the 'People's Car' [The Car Connection]
Study Shows When Teen Drivers Most Likely to Crash [Forbes]
Ferrari FF Stars in Neiman Marcus Christmas Book [DriveOn]