ON THE TABLE

November 11, 2009

  Chrysler's Hyper-Inflated Aspirations. Publisher's Note: I took a lot of heat from irate Chrysler loyalists for last week's column, but guess what? Get over it. For those guys to get up in front almost 400-something analysts and media-types last week and suggest with a straight face that they're going to sell enough vehicles to capture 14 percent of the market by 2014 is flat-out ludicrous. Insane even. The realistic number? It will be between 6-7 percent, tops. With dismal quality numbers, a woeful, out-of-touch presence in the market, highly questionable strategic positioning and new - and painfully bad - advertising that does absolutely nothing to revitalize the image of any of the brands, it's notgonnhappen.com. Or as Dr. Bud says, "That dog won't hunt even with a T-bone wrapped in prosciutto." These guys are dreaming. The problem is that we have to be subjected to the gushing coverage of Chrysler by some of the lesser lights in our local media for the foreseeable future. And that's a heaping, steaming bowl of Not Good. What should Chrysler be aspiring to? Survival. And they have an excellent shot at that, if they don't hype themselves to death first. - PMD

Sergio Marchionne. Publisher's Note: Sergio seems like an interesting guy, and I'd like to share a bottle of Gaja with him one evening, but he has delusions of grandeur with this Chrysler deal that are bordering on the fanciful. To wit, one comment that he made to the assembled multitudes last week (after quoting Machiavelli): "The 2010 - 2014 plan at Chrysler, when all is said and done, is a commitment to build an enterprise of men and women of virtue." Huh? That's nice, but how does that translate into a 14 percent market share of the U.S. market by 2014? It is our AE Quote of the Week, however. - PMD

Takanobu Ito. The newly-minted president of Honda was asked the following question by Automotive News in an interview: If the yen gets even stronger, would you ask the Japanese government to intervene to weaken it? His answer? "We have not requested the Japanese government to intervene in the market in the past." No, but you, Toyota, Nissan, et al have quietly watched as the Japanese government, acting as Japan Inc., has done it for years and years as part of national policy, right? Nicely done.

BBDO. Publisher's Note: The longtime Chrysler advertising agency - and one one of my advertising alma maters - is being forced to close the doors of its Detroit office at the end of January due to the change in regime at Chrysler, leaving 485 jobs in jeopardy. For years BBDO sucked the profits out of the Detroit office treating the people there like the "little people" who needn't be heard from, as long as the money rolled in. As a matter of fact, the profits generated by BBDO Detroit back in the day were responsible for more than 90 percent of Omnicom's - BBDO's holding company - net  profits. A perfect example? The profits generated by BBDO Detroit single-handedly paid for BBDO's lavish corporate offices in New York back in the mid-80s, which were rumored to have cost $21 million, all in. But times change, and Chrysler's fortunes spiraled downward, and there just isn't the money associated with Detroit auto advertising accounts like there was in the old days. For the people who toiled at BBDO Detroit all of these years it's a bitter end to a tortured relationship. It's especially painful when the new overlords at Chrysler apparently aren't capable of finding a marketing clue, even when spotted the "cl" and the "e."

Cadillac. Reports suggest that after gaining approval from the GM board of directors, Cadillac will build the Converj Concept that was unveiled last January at the Detroit Auto Show. The Converj is based on the Chevrolet Volt extended-range electric vehicle platform, and it made quite a splash at the show. Good news? Absolutely. Well-off Greenies will be salivating over the car - which looks stunning in the flesh, by the way - as long as GM doesn't screw it up on the way to production. But when can they get it to market? Based on everything we've pieced together so far, not before the spring of 2012, an excruciatingly long wait. Oh, and one more thing? They better come up with a real name for the machine, because Converj ain't makin' it.

(Photos courtesy of GM)

(Gooding & Company)
This 1956 Jaguar D-Type Sports Racer is one of five exceptional collector cars that will be auctioned as part of Gooding & Company's annual Scottsdale Auction this January. The D-Type, chassis XKD528, began its racing career in 1956 with driver Pearce “Pete” Woods at popular racing events throughout California. A podium finisher at Santa Barbara, Bakersfield, Palm Springs, Riverside, Paramount Ranch and Pomona, XKD528 retired to street car status in 1964. Following a recent comprehensive restoration, the Sports Racer will be offered for sale in its original appearance of cream over blue. The Jaguar will be joined at auction by a rare Pinin Farina 1959 Ferrari 250 GT Series I Cabriolet, a 1956 Maserati A6G/54 Berlinetta with coachwork by Allemano, a 1934 Hispano-Suiza J-12 T68 Cabriolet with coachwork by Saoutchik and a 1932 Alfa Romeo 6C 1750 Series V Gran Sport with coachwork by Zagato. The auction will be held on Saturday, January 23, 2010.

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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