Selling New Cars in Economic Downstream

8/14/2019 Selling New Cars in Economic Downstream

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Automakers use innovative marketing to

sell new cars

Selling new cars in any economic downturn is notoriously tough.

By Jane Ferguson, Business Features Writer

Published: 23:24 August 19, 2009

GULF NEWS

As prospective customers mov from showroom to showroom this summer in the UAE,

they will encounter different pitches aimed at targeted audiences as new model

launches push for success despite the tough economic conditions.

Repeated buzzwords from sellers will likely include safety and lifestyle

The UAE is one of the most severely affected automobile markets worldwide, said

Tomas Ernberg, director of Volvo Cars Middle East.

The market for new cars and SUVs has dropped 40 per cent since January, he added,

Ernberg hopes Volves, marketing campaign based on raod safety will help with sales.

In January they launched the new XC60, a premium compact SUV. Before

explaining the shift in buying patterns from larger SUVs to the smaller models,Ernberg talks safety.

Seventy-five per cent of all accidents happen at 30 miles per hour or below. Said

Ernberg.

Volvos new XC90 features City Safety a laser beam at the front of the car which

automatically stops the vehicle if a collision seems imminent.

Volvo City Safety provides more security, especially in inner city traffic and in typical stop-

and-go situations, and is enabled at speeds up to 30 kph. It uses an optical laser for thecontinuous monitoring of the traffic.

For example, City Safety recognises a sudden braking by the vehicle in front of the car. If the

driver does not react, the system automatically triggers an emergency stop. If the relative

speed between the two vehicles is less than 15 kph, a collision is avoided completely. In the

range between 15 kph and 30 kph, the aim is to reduce the collision speed as far as possible,

minimising the consequences of the accident.

Safety is further enhanced by the interaction of the system, which functions both day and

night, with the electronic control elements for the airbags and the adaptive belt force limiters.


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Porsche took step closer to controlling the much larger Volkswagen AG by upping its share

holdings to 50.8%.

But actual formal control of management still eludes the company. Porsche plans to raise its

stake in VW to more than 75% this year, with which it expects to gain total control over the

Volkswagen Group, which includes Audi, Bentley, Seat, Skoda and Lamborghini. Havingmore than 75% of shares would allow it to seal a so-called domination contract giving it

full financial control.

As Porsche advances its strategy, it is truly the case of the goldfish swallowing the whale.

Porsche turns out roughly 100,000 expensive sports cars and sport utility vehicles a year,

while Volkswagen churns out about five million vehicles annually.

Toyota was able to greatly reduce leadtime and cost using the Toyota Production System,

while improving quality. This enabled it to become one of the ten largest companies in the

world. It is currently as profitable as all the other car companies combined and became the

largest car manufacturer in 2007. It has been proposed that the TPS is the most prominentexample of the 'correlation', or middle, stage in a science, with material requirements

planning and other data gathering systems representing the 'classification' or first stage.

A science in this stage can see correlations between events and can propose some procedures

that allow some predictions of the future. Due to the success of the production philosophy's

predictions many of these methods have been copied by other manufacturing companies,

although mostly unsuccessfully.

With over 30 million sold, the Corolla is one of the most popular and best selling cars in the

world.

Toyota's marketing efforts have focused on emphasizing the positive experiences of

ownership and vehicle quality. The ownership experience has been targeted in slogans such

as

"Oh, what a feeling!" (1978-1985, in the U.S.)

"Who could ask for anything more" (1986-1989)

"I love what you do for me, Toyota!" (1990-1997)

"Everyday" (1997-2000)

"Get the feeling!" (2001-2004)

"Moving Forward" (2004-present)

The Toyota Production System (TPS) is an integrated socio-technical system, developed by

Toyota, that comprises its management philosophy and practices. The TPS organizes

manufacturing and logistics for the automobile manufacturer, including interaction with

suppliers and customers originally called "Just In Time Production," it builds on the approach

created by the founder of Toyota, Sakichi Toyoda, his son Kiichiro Toyoda, and the engineerTaiichi Ohno.


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When these men came to the United States to observe the assembly line and mass production

that had made Ford rich, they were unimpressed. While shopping in a supermarket they

observed the simple idea of an automatic drink resupplier; when the customer wants a drink,

he takes one, and another replaces it.

The principles underlying the TPS are embodied in The Toyota Way.The main objectives ofthe TPS are to design out overburden and inconsistency and to eliminate waste.

The most significant effects on process value delivery are achieved by designing a process

capable of delivering the required results smoothly. It is also crucial to ensure that the process

is as flexible as necessary without stress (overburden).

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Selling New Cars in Economic Downstream