ON THE TABLE

April 28, 2010

Ford. From "The Plan Is Working" File, The Dearborn-based automaker posted net income of $2.1 billion in the first quarter - almost doubling projections of financial analysts - powered by a eye-popping 37 percent increase in U.S. sales. "Our plan is working, and the basic engine that drives our business results -- products, market share, revenue, and cost structure -- is performing stronger each quarter, even as the economy and vehicle demand remain relatively soft," CEO Alan Mulally said in a statement. What's going on at Ford this morning? A few smiles and then right back to work. Thanks to Alan Mulally, Ford at this moment is the most focused car company on earth.

GM. Publisher's Note: The GM corporate ad now running with "Big Ed" Whitacre talking about how GM has paid the government loans back is misguided at best and flat-out misleading in reality. GM gave the government back TARP funds that were parked in an account that was there for the company's use, if needed. So, in effect, GM didn't pay a damn thing back, instead they returned money to the government that had been already earmarked for them. What part of touting this "accomplishment" seemed like a good idea? GM should have quietly notified the government that they we were giving the funds back and then gotten on with their business. But, no. Desperately trying to get out from under the tainted "GM took government money" stigma that the consumer car-buying public has emblazoned in their brains whenever they think of the company, GM shouts from the rooftops that they've paid all the money back "five years early." Uh, really? The company still owes $50 billion or so to the U.S. and Canadian governments, and to the UAW. GM, with one remarkably ill-conceived ad, has managed to dig themselves a deeper hole with the American car-buying public. Just off the top of my head, when does it get better? Or are you guys going to keep wrecking trains until there are none left to derail? Pathetic. - PMD

Publisher's Note: More on the GM marketing Train Wreck. The other time-honored adage in the ad biz is that clients get the advertising they deserve. What does that mean? It means that if you - as a company - have smart, savvy, talented people working on your behalf in your marketing department who have had actual quality experience in the field of advertising - and no, that doesn't mean having taken a few marketing classes in college - or who have had the opportunity to be mentored by people who have had quality experience in the entire process, then you have a solid foundation to build on. From there, you work with the ad agency to arrive at the right strategic framework for the ad assignment at hand, let's say, in this case, a launch TV spot for a new vehicle. Once that strategic vision is articulated and agreed upon (a very crucial part of the process) - and all essential company constituencies are briefed and get on board - then the agency creatives are given the assignment. It is at this point that smart clients allow the agency to soar creatively and take some risks, encouraging the creative team to explore all dimensions and possibilities. (Advertising 101? It's much easier to pull back on the creative throttle a little bit then it is to drag it out of the agency after the fact. This is how great ideas get born, and smart clients understand this.) Once the vetting of the spectrum of creative ideas is finished, and the creative direction is agreed upon, then the agency - working with a chosen production company and director, etc. - delivers the right look, feel, sound and tone - based on that input - in the final execution of the spot. From there, smart marketers are careful as to how the creative is shepherded through the company system so that the wrong people - meaning the people who have no business getting involved - are not allowed to have input or derail the finished execution. That is a very brief and general outline of how advertising gets done, and I'm leaving out countless nuances and steps too. (For example, in car companies, that last point - who gets a crack at having input into the advertising - is a minefield unto its own and another dimension of shit entirely, a discussion I'll save for another day.)

So, given the above, how do companies get it wrong? Well, first of all, they stock their marketing departments with ill-qualified people who have no business being there. They have either been rotated through from other parts of the company as part of an ill-advised attempt at executive "seasoning" and exposing them to a side of the business they're not familiar with, or they have been "parked" there for no other reason then it's a temporary bus stop on a career track going nowhere, or they simply have been plopped down into marketing because someone thinks they might be good there. Note that there's not even a whiff of qualification or experience mentioned at this juncture, which, as you might imagine, is a guaranteed recipe for total disaster. When you have people who don't have the first clue as to what they're doing bringing all of their so-called "gravitas" to bear on multi-million-dollar launch advertising campaigns, things go very, very, wrong, and in a big hurry too. Because once you start with this fundamentally flawed foundation, then the rest of the process is tainted from the start and going nowhere good. The strategy gets sidetracked and off-course (there's a shocker), which totally upends the creative process, or what's left of it anyway - not that the aforementioned "executives" would even recognize good creative even if it hit them in the forehead with a 2x4 - so that even if excellent creative does get presented  it's lost in a swirling maelstrom of hand-wringing and serial incompetence. And once the hand-wringing begins, and the sniping from the peanut gallery - those who have no business "weighing-in" on the process but who feel compelled to anyway because, after all, they're no more or less qualified than the people who allegedly have the responsibility - intensifies, then the entire process is derailed and you end up with stupid, dim-witted advertising that has no business seeing the light of day.

It's not difficult to see which side of the spectrum GM marketing is constantly operating in. - PMD

 Armchair Advertising “Experts.” Publisher’s Note: I refuse to sit back while the armchair “experts” out there in Internet-land who have felt compelled to comment on the C-E/Chevy situation - like they even have a shred of an idea as to what it’s really like to have worked there, or work on the Chevrolet account, or worked anywhere in the ad business for that matter - spew their relentless, embarrassingly ignorant commentary on this subject unfettered by the least bit of accuracy or fundamental understanding. Suffice to say, if you’ve never played a down in this business you don’t have a fucking clue as to what you’re talking about. The advertising biz is one of the most challenging endeavors you can be involved in - especially in this climate, and in this town, and in the automotive space in particular - so perhaps the more pathetic of you would be better suited to do your verbal jerking-off on the next cool iPad app or some such nonsense. Because when it comes to this subject, you’re totally out of your league. - PMD

GM. The automaker is investing $893 million to dramatically improve five North American factories in order to make its more efficient, next-generation, all-aluminum, directed-injected V8 engines. The powertrain factories getting upgrades are in Bay City, Mich.; Bedford, Ind.; Defiance, Ohio; St. Catharines, Ontario; and Tonawanda, N.Y. The investment will secure or solidify positions for around 1,600 workers, according to GM. This is a good move. And being V8 enthusiasts here at AE, it's nice to know that the V8 is going to be around for a long, long time to come.

Bob Lutz. We're giving "Maximum Bob" one final "up" arrow on the eve of his retirement from GM, but we can't say we're heartened by one of the parting shots he delivered on the future of automotive transportation in an interview with Automotive News, to wit: "I say this without a great deal of joy, OK, but it's going to be individual transportation pods that are charging in your garage. You hit one of your normal programs, like your 'go to work' program. And the thing goes out into the street -- GPS-guided or wire-guided -- blends into traffic, consolidates, goes to some sort of mass-transit station, converges onto a train and parks itself along with all the other little modules. At some station, your module gets off. There will be no driver involvement. The automobile is a transient stage in the evolution of mankind's ability to transport oneself to any other place rapidly. And, ultimately, as we evolve, I think physical travel will become less and less important. Because if you can bring 95 percent of the experience in virtually -- in, let's say, a 360-degree, full-screen, three-dimensional environment -- you get 95 percent of the experience instantaneously. The need to travel goes down drastically. And ultimately I don't think humanity is going to be able to afford a situation where every citizen of the Earth has a car and is zooming around all over the place on concrete highways. It's just not going to work, and at some point it's going to stop." And that's our very depressing AE Quote of the Week, and a giant downer of Not Good.

Porsche. Bloomberg Berlin is reporting that Porsche is saying that it has almost 900 potential buyers for its 918 Spyder hybrid, the prototype super sports car with the 500-horsepower V8 engine augmented by electric drive systems. Porsche's development chief, Wolfgang Duerheimer, said in an interview with Bloomberg at the Beijing auto show that, “I'm confident that we will soon reach the threshold of 1,000,” he said in an April 24 interview. “We need 1,000 seriously interested people to make a sound business case.” Sounds like you can book it. We expect to see the 918 for sale by 2013.

Publisher’s Note: And on the 8^th day… God created the Bentley Continental Supersports. How can one possibly be objective about such a magnificent beast as the Bentley Continental Supersports? Oh, I tried. I started to think about what else could be had for the $287,385.00 sticker, but then again, why bother?

The "Fastest, most powerful Bentley ever" as the Crewe crew calls it, the Continental Supersports isn’t about political correctness. It isn’t about registering your carbon butt-print (although it’s a flex-fuel capable vehicle). It isn’t about participating in a hand-wringing discussion about what the real market penetration of electric cars will be. It isn’t about I-better-keep-a-low-profile-because-I-don’t-want-anyone-to-know-that-I-had-a-pretty-good-year. It isn’t for the apologetic - or the burgeoning Legions of the Meek for that matter - those unfortunate group-hugging, entitlement-embracing, woodwork-dwelling fans of mediocrity among us. No, the Bentley Continental Supersports is about pure, unbridled, hammer-the-landscape, OMG speed.

With its Twin-Turbocharged W12-cylinder delivering 621HP and a mind-boggling 590 lb-ft of torque, the Bentley Continental Supersports is more than a mere torque monster – after all there are plenty of those out there – rather, it’s an exuberant homage to thrust, a fleeting notion from an industrial age that’s rapidly fading in our rearview mirrors (and depressingly so, too, I might add). What makes the highest-performing Bentley so amazing is that for all of its mass (it weighs well over 5,000 pounds) it pushes you back in your seat like you’ve just been launched from a catapult in your Tomcat fighter, and as your speed effortlessly pushes into the triple-digits - and the sensational W12 transitions from its guttural, nasty, urban-brute persona into a shrieking, Mulsanne Straight-worthy wail – it is right about then that you realize that this is one of the all-time great enthusiast machines ever built. (Oh, and by the way, you’ll need every inch of those massive carbon ceramic brake rotors that are as big as large pizzas and which almost fill up the 20” 10-spoke alloys. Boy, will you ever.)

Our (very) brief time with the Beluga/Beluga (with Red interior accents) Continental Supersports (that’s Black/Black in Bentley speak) was vividly reassuring. It was an emphatic reminder to us that if there’s enough unfettered passion and a desire to create the very best - and the means and the will to execute against that vision down to the very last detail – then great machines will still be built. Exuberant, memorable, dramatically visceral machines that capture our hearts and speak to our souls.

If you crave one and have the requisite credentials to acquire one, by all means go for it. When the rest of us are being forced into pre-programmed clown cars that are deemed “acceptable” for the increasingly dim, government-orchestrated masses, I want to know that there’s at least One Last True Believer out there flogging one of these magnificent beasts for all its worth - flat-out into the inky dusk - leaving abject mediocrity and the sniveling apologists in the dust. - PMD

(2010 Bentley Continental Supersports: Base Price: $267,000.00; NAIM Premium Audio System: $6,900; Comfort Seat Option – 4 seats instead of two sport seats - $5,250; Rear View Camera: $1,320; Massage to both Front Seats: $580, 3-Spoke, Two-Tone Steering Wheel: $540; Valet Parking Key: $210; Mulliner Alloy Fuel Filler Cap: $290; Gas Guzzler Tax: $2,600; and Destination Charge: $2,595)

Editor’s Note: Coming back to earth now, our second “quick take” this week is on the 2010 Audi S5 Cabriolet, in Ibis White (Brown soft top), with a Black/Tuscan Brown Interior. (Full disclosure: My first ‘grownup’ car – as in, the first brand-new vehicle I ever bought – was an Audi 80, way back when. This, after also having had an Audi 5000S among my endless rotation of cool but definitely used European beaters.) The Audi S5 Cabriolet is a car that just feels right to me. Superbly put together and exceptionally well thought out, it does everything effortlessly so that you can focus on the business of driving. And drive I did. I have a bit of a lead foot, and the S5’s 333-hp supercharged V6 did not disappoint. I loved putting my foot into it and having it take off – and I loved the sound of the engine as it goes through its paces. Peter has raved about Audi’s dual-clutch automatic, and now I see why – it dramatically alters the driving experience with crisply precision shifts and not a fraction of wasted motion. I loved the sport seats and everything about the cockpit – I was surrounded by understated luxury and functionality in true Audi fashion. There were a few things that were less than stellar for me, however. There’s a giant blind spot caused by the C-pillar, which I found very annoying (the car does have all sorts of backup assist warnings, but I prefer to see things with my own eyes, thank you very much). And the back seat is a joke. I didn’t do the split-folding thing to take advantage of the trunk pass through, but suffice to say this is not your best choice for a Costco vehicle or for people who have more than one friend. I also didn’t care for the brown soft top, although that’s a very minor nitpick on my part (but oddly enough, I don’t see where brown is an option with Ibis white on the Audi website – only black, which is as it should be). But the convertible top itself? Now, that is a marvel of German engineering. The touch of a button makes everything happen – no need to do anything but sit back and anticipate the open-air experience (which, given our temps in the 50s, was a bit of a brisk one – but fun nonetheless). The Audi S5 Cabriolet is about luxury high performance in an extremely competent package. I prefer the look of the coupe over that of the cabriolet – the car just doesn’t look as sexy or sleek with the soft top. But if you crave some fresh air with your supercharged jaunts around town, the S5 Cabriolet will do just fine. - WG

2010 Audi S5 Cabriolet: $69,625 ($58,250 base price, plus Prestige Model goodies – premium sound system, advanced keyless start/stop, nav, etc., $5,700; Audi drive select – adaptive suspension damping, dynamic steering, sports rear differential, $3,950; driver assist package – Audi side assist, backup camera, rear sensors, $900; destination charge, $825).

(Ford)
The Ford Start Concept was revealed at the 2010 Beijing Auto Show on April 22.  The Ford Start Concept is a preview of what's to come from Ford in terms of future engine development with its groundbreaking 1.0-litre, three-cylinder Ford EcoBoost engine.The powerful new Ford EcoBoost 1.0-litre three-cylinder gas engine is engineered to bring the EcoBoost promise for fuel efficiency to small cars with compact engine compartments. This technology will come into production in the near future to deliver CO2 emissions of less than 100 g/km while delivering power and drivability comparable to larger four-cylinder engines. (BMW is also moving to three-cylinder engines for its next generation 1 and 3 Series models.) The Ford Start was designed under the tutelage of Freeman Thomas in Ford's California design studio, and it's targeted at the fast-growing mega cities of the future with their heavy traffic and congestion, limited parking and demands for high fuel efficiency by urban dwellers. Ford says that, "the Ford Start concept provides a vision into a future sporty, small-car package that meets a multitude of primary driving objectives, particularly among first-time buyers."

(Photos courtesy of BMW)
Last weekend’s Concorso d’Eleganza Villa d’Este was another magical, sell-out event by all acounts. Here's what BMW had to say about it (they sponsored the event for the 12th time): “Once again the Concorso has borne impressive testimony that cars have lost none of their fascination,” commented Karl Baumer, President of the Concorso d’Eleganza Villa d’Este and Director of BMW Group Classic. Dott. Jean-Marc Droulers, President of Villa d’Este S.p.A., looked back on two extraordinary days: “The Concorso is ruled by a constellation that could hardly be bettered: heritage, elegance and a passion for cars create the perfect foundation for a weekend such as we have been privileged to experience once again.” In addition to the classic car contests and the competition featuring concept models of the future, highlights of this year’s Concorso included the “100 Years of Alfa Romeo” special exhibition and the world premiere of the BMW 328 Kamm Coupé. Named Best in Show was the 1938 Talbot-Lago T150 C SS Teardrop Coupé (shown above) with Figoni & Falaschi bodywork, owned by Oscar Davis, USA.

(Audi)
Robert Downey Jr. arrived at the world premiere of Iron Man 2 at the El Capitan Theater in Los Angeles on Monday driving an Audi R8 V10 Spyder, his ride as "Tony Stark" in the movie.

(Ford)
The 2011 DUB Edition Mustang is based on the new 3.7-liter, 305HP, DOHC Mustang V-6 and will be available in coupe, convertible and Glass Roof body styles. A collaboration between Ford, DUB and Roush Industries, the DUB Edition Mustang features 20-inch TIS wheels and Pirelli tires, Roush front fascia and splitter, Roush quarter window louvers and windshield banner, Roush lowering springs, a 3.21 rear axle ratio, and it will be available with either a six-speed manual or automatic transmission. You get a choice of Black, Grabber Blue, Race Red or Ingot Silver exterior colors to go with the Black interior. It's topped-off with a DUB stripe package and DUB logos embroidered in the front headrests.

(Audi AG)
Audi has announced a limited-production version of its R8 high-performance sports car - the R8 GT. With a detailed mass reduction program that cut the R8 GT's weight by 220.46 lbs. - it's still no lightweight at 3,362.05 lbs. - and an increased output of its 5.2-liter V10 to 560 hp, the R8 GT accelerates from zero to 100 km/h (62.14 mph) in 3.6 seconds and reaches a top speed of 198.84 mph. The R8GT features quattro permanent all-wheel drive and the R tronic sequential manual transmission and a bunch of detailed improvements, which are standard, including a carbon ceramic brake package. Audi has never been shy about asking for all of the money when it comes to pricing, so the new R8 GT will sell for €193,000 in Germany. And in typical Audi fashion, there will be many "exclusive" options available for the R8 GT.

WE'RE OPENING THE VAULT!

The AE wearables are back - and only in extremely limited quantities and sizes, we might add - and once they're gone, they're gone! We're starting with our most popular items, the classic AE Sweatshirt and AE Hat. Click on a PayPal button below to order yours now! (If you prefer to pay by check, please send us an email with AE STORE in the subject line, and we'll reserve your item.)

AE Sweatshirt - Crewneck, sturdy 80/20 cotton/poly, in black with throwback lettering - the original AE logo in our Chiller typeface shown above. Size XL only. 40 bucks, including shipping. US orders only.

AE Hat - Black with throwback lettering - the original AE logo in our Chiller typeface shown above. 25 bucks, including shipping. US orders only.

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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