ON THE TABLE

February 17, 2010

Toyota dealers. Auto manufacturers competing in the U.S. market are girding for the mother of all Toyota-thons this spring as Toyota prepares to launch a "Scorched Earth" marketing and advertising offensive that will make all previous efforts pale in comparison. Toyota could spend as much as $2 billion dollars - a billion in advertising and a billion in incentives - to make things right for itself in this market. Even the dealers aren't sure just how big the campaign will be, but suffice to say, Toyota is going to come back with a vengeance and come out swinging with everything they've got, and then some. Toyota dealers are champing at the bit for the offensive to start because they firmly believe that with headquarters pulling out all the stops and with money being no object, they will be able to decisively crush their competition in the marketplace. We'll see.

Toyota. As predicted, the classic Washington question of "What did you know and when did you know it?" is being posed to Toyota as NHTSA regulators investigate whether or not Toyota acted in a timely manner in recalling 6 million vehicles here in the U.S. It's bound to get much uglier for Toyota before it gets better, "Scorched Earth" or no.

Akio Toyoda. Publisher's Note: Toyota President Akio Toyoda finally admitted today what I and others have been saying for months: the company's obsession with eclipsing GM as the world''s largest automaker - and its corresponding maniacal rate of expansion - caused them to take their eye off of the ball, which then led to the recall mess they find themselves in today. Toyoda has promised an all-out push to restore Toyota's quality performance and its reputation. But Toyoda will leave the Washington, D.C., hand-wringing fest to his chief lieutenant, Yoshimi Inaba, the head of Toyota's U.S. operations, because he's most familiar with the U.S. market. A good move on Toyoda's part, as being a punching bag in those Congressional hearings while having a less-than-commanding grasp of the language would be a train wreck. - PMD

Peter Arnell. From the "Oh, Just Shut The Fuck Up" File comes word that the disgraced design/marketing guru/shameless self-promoter is out to save Thailand. Yes, Thailand. According to a report by AdAge's Natalie Zmuda, Arnell is spouting off to The Nation that he will be presenting a new promotional campaign to the Thailand government this week as his way of giving back to a country that he fell in love with after a 12-day sojourn there last December. Or is it because his reputation is now so shot in this country he had to look elsewhere? Arnell tells the magazine that he can "make this place famous for what it's famous for, instead of what we think it's famous for." So you mean he's going to leave out the rampant corruption, unrest and political turmoil part? We guess so, because Arnell gushed to The Nation that Thailand "is a sensible, harmonious, calm, peaceful and respectful country driven by humanity and a soulfulness, unlike any other place in the world." Uh-oh, memo to the Thailand government: Duck and cover, boys and girls, because by the time Arnell gets through you'll be out five million bucks and left with an abstract fern logo and the catch phrase, "Thailand: Harmony for your soul." Ugh. And it gets worse, because Arnell told The Nation that he "swears he could single-handedly redeem" Toyota. Oh, that's a brilliant idea. We figure Arnell is the only guy who could turn a historic, defining crisis for the company into an unmitigated disaster and total annihilation overnight. Talk about train wrecks.

T. Boone Pickens. The Texas oil and gas billionaire's latest idea is to power heavy trucks in the U.S. with natural gas in hopes of eventually converting the nation's passenger car fleet. He was at the NADA convention in Orlando insisting that dealers needed to hear his “Pickens Plan,” because “this is an American issue,” Pickens told Automotive News . Without action, Pickens projects that the cost of oil from foreign countries will rise to $300 to $400 a barrel in 10 years, AN reported. Pickens also supports legislation in the House and Senate that would grant tax credits of $65,000 for purchases of new heavy-duty and some new medium-duty trucks that run on natural gas. He also thinks electric vehicles are an option, with one big disclaimer: “We've got to make sure that we don't get off Saudi oil and end up with a Chinese battery,” he told the NADA audience. And that's our AE Quote of the Week.

 

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Publisher's Note: Check-out John McElroy's daily news show covering everything about the auto biz by clicking on the graphic below. Good stuff guaranteed. - PMD

See another live episode of "Autoline After Hours" hosted by Autoline Detroit's John McElroy, with Peter De Lorenzo and friends this Thursday evening, at 7:00PM EDT at www.autolinedetroit.tv.

 

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