December 7, 2011

GM, Toyota Top Automakers with Biggest Ad Outlays
Four automakers – led by GM and Toyota – are among the top 15 global marketers, as ranked by Advertising Age. The automakers spent a combined $10.83 billion on advertising during 2010. The 25th annual report represents figures from 2010 measured-media ad spending. Automotive News reports that General Motors, Toyota Motor Corp., Volkswagen AG, and Ford Motor Co. ranked fourth, sixth, 12th, and 13th, respectively, among 100 companies in the study. The Fiat-Chrysler Group ranked 16th in the study of major corporate advertisers with operations worldwide. Sixteen automakers made the list. GM spent the most among automakers – $3.59 billion – on advertising, and that was up 11.5 percent from 2009. Toyota spent $2.86 billion, up 19.3 percent; Volkswagen spent $2.24 billion, up 14 percent; and Ford spent $2.14 billion, up 7.5 percent. Kia Motors Corp. posted the biggest percentage increase in ad spending among the automakers – nearly 48 percent – to $775.7 million. Hyundai Motor Co. was runner-up, increasing spending 42 percent to $1.26 billion. Nissan Motor Co.'s advertising rose 36 percent to $1.5 billion. The top company overall was Procter & Gamble with $11.43 billion spent on advertising, a 31.4 percent jump. Read more about automaker advertising here.

2012 Toyota Camry Earns 5-Star NHTSA Crash Rating
The National Highway Traffic Safety Administration released its first batch of 2012 model year ratings this month. Under the stricter guidelines, only three 2012 models – the Chevrolet Camaro, Cadillac CTS, and Toyota Camry – have earned five-star composite scores from the safety agency. According to USA Today, NHTSA's composite scores are composed of five-star ratings for frontal, rollover, and a combined side pole and barrier tests. The side pole test, which is new, simulates a 20 mph side-impact crash into a 10-inch-diameter pole or tree at a 75-degree angle just behind the A-pillar on the driver's side. The redesigned 2012 Camry earned a five-star overall rating, getting four stars in the frontal test, five stars in the side-crash test, and four stars in the rollover test. Of the 22 trucks, SUVs, crossovers and passenger cars tested, most received four stars in frontal or rollover tests. Surprisingly, most vehicles – including the 2012 Fiat 500, Kia Sorento, and Honda Pilot – conquered the more rigorous side-crash test with a five-star rating. The 2012 Mazda3 and Chrysler 200 had the worst side-impact rating of the bunch, earning three stars. Click here to see a chart of the tested vehicles and their ratings. For more on NHTSA’s crash tests, click here.

Americans Embrace SUVs Again
The sport-utility vehicle is making a comeback, reports The Wall Street Journal. After being largely shunned during the recession, high-riding SUVs and workhorse pickups are regaining favor as U.S. consumers grow more confident and fuel prices remain below the $4 a gallon level that triggered a shift away from larger vehicles. The rebound was clear last week as U.S. auto sales in November hit a 13.6 million annual pace, the strongest in more than two years, with sales of trucks and SUVs surpassing cars at many auto makers. "I travel a lot with my kids and my kids' friends. I can put all my friends and family in here and haul them around but with reasonable fuel efficiency. I needed something big, something solid, something reliable," said Andrea Maggioni, a physician from Miami who recently bought a 2011 Honda Pilot. "I needed a car where I could envision myself and a bunch of kids driving around." In part, last month's gain reflects end-of-year purchases by tradesmen who tend to favor bigger vehicles. But consumers are also embracing pickups and small SUVs. For more on the SUV’s resurgence, click here.

Car and Driver Names 10Best Cars of 2012
As one model made the cut for the 21st consecutive year, Car and Driver unveiled its 10Best list for 2012, recognizing what the publication believes are the best vehicles costing below $80,000. According to Auto Remarketing, the list consists of seven foreign models and three domestic offerings, half of which cost less than $40,000. Officials highlighted the BMW 3-Series/M3 Tuesday as a selection for 21 years in a row. “After 21 consecutive years on the 10Best list, BMW continues to evolve the 3-series toward some platonic ideal of sportiness. You don’t notice the seats, the steering, the suspension, or the brakes because everything feels natural. Everything feels right,” wrote the publication. Click here to see the list at Car and Driver’s website. Other international nameplates making the cut included the Audi A6/A7 3.0T Quattro, Honda Accord, Honda Fit, Mazda MX-5 Miata, Porsche Boxster/Cayman, and Volkswagen Golf/GTI. “As in years past, the cars on this year’s list represent the best overall vehicles on the market today,” stated Eddie Alterman, Car and Driver editor in chief. “Out of 68 contenders, these are the ones that consistently perform the best, are a good value and are engaging, fun-to-drive vehicles.” Read more about Car and Driver’s list here.

Why Nissan's Disaster Recovery Bested Rivals
There's no doubt that 2011 is turning out to be one of the toughest years on record for Japanese automakers. They have contended with two major natural disasters, a supercharged yen, strong and increasing competition from rivals in the United States and Korea, and sales in their perpetually moribund home market continue to shrink. How Japan's “Big Three” – Toyota Motor Corp., Nissan Motor Co. Ltd. and Honda Motor Co. Ltd. – have reacted to address the challenges has put them at center stage, working overtime to overcome. According to Edmunds Auto Observer, industry analysts noticed that in terms of recovery from the two natural crises, Nissan has fared better than its rivals. Within days of the March 11 quake, Nissan CEO Carlos Ghosn was on television, a film crew following him around the automaker’s stricken Iwaki engine plant as he surveyed the damage. Speaking to reporters, Ghosn was clear and decisive in assessing what had happened, what needed to be done – and even was ready to say precisely when the engine-making plant would be operating again. Such openness and clarity is rare in the corridors of power of corporate Japan. Click here to read more on how Nissan is recovering from the challenges of 2011.

Don’t Miss Your Chance – Register Today for AIADA’s 42nd Annual Meeting and Luncheon
Join AIADA, fellow dealers, and industry leaders at our 42nd Annual Meeting and Luncheon on February 6 in Las Vegas. Together, we’ll consider the Legacy of Leadership that is inspiring today’s international dealer community and what it means for the future of our industry. This year's meeting will include keynote remarks from Mark Templin, Group Vice President and General Manager at Lexus. “Lexus has proven itself a leader in the U.S. auto market, and Mark Templin has played a central role in making it one of today’s most popular luxury brands,” said AIADA President Cody Lusk. “His remarks will provide invaluable perspective for dealers considering how our industry can continue to lead in the U.S.” Read more about Templin and AIADA’s 42nd Annual Meeting and Luncheon here. In addition to Templin’s remarks, the event will include the presentation of the David F. Mungenast Lifetime Achievement Award and the passing of AIADA’s chairman’s gavel from the current chairman, Jim Smail of Pennsylvania to Chairman-Elect Ray Mungenast of Missouri. Don’t miss your chance; register today by clicking here or call 1-800-GO-AIADA.

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