Marketing Automotive

Canadian Finance Minister Jim Flaherty announced on July 21, 2011, Canada had sold to Fiat for US$ 140 million, from 1.5% stake in Chrysler he had since his rescue in 2009.

Canada will receive 125 million US dollars for its remaining 1. 7 percent ownership stake in Chrysler. This allows Fiat to hold 53.5% stake in Chrysler.

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The Japanese automaker said on Monday June 27, 2011 it would raise its global market share of 5.8% to 8%.

The company hopes, in collaboration with its French partner Renault, selling 1.5 million electric cars by six years.

In December 2010, Nissan has given Japan and the United States the first units of the Leaf, presented as the first electric car produced and sold in bulk.

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The Boston Consulting Group has published recent findings about innovation, marketing and consumer trends. Alongside the “immeasurable” human cost of the recent natural disasters striking the country, the Consulting Group suggests damage to roads, buildings and communications lines could soak up between ¥10tr and ¥25tr. The impact of power shortages and failures, declining production and the lack of demand in the areas most heavily affected may sit in the ¥4tr to ¥15 range.

In an example of such processes in action, adspend contracted as Japanese automakers reined in their commercial communication budgets.

BCG said shoppers are economising, “cocooning” at home, reading, purchasing energy-efficient goods and buying offerings online, while cutting back on travel, leisure, cars and other durables. Japanese consumers of all ages are modifying their daily routines in response to the increased stress that they are facing.

A wider problem, tied to the Fukushima Daiichi nuclear power plant, links to worries about the safety of certain items.

In addition to thèse trends, the negative publicity regarding Japanese products that may have been tainted by radiation could well hurt the reputation of ‘Made in Japan’ brands for the foreseeable future.

Inflation might become an issue in Japan, rather than deflation, although the likely transformation of the trading climate is also set to offer previously unexpected opportunities. Certain businesses – those focusing on infrastructure investment; energy-saving products; construction of ’smart’ buildings; or consumer products that address home, convenience, or safety concerns – can expect to expand.

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Toyota Motor Corp., hit hard by last March Japanese earthquake, announced it will take until end of 2011 for production to return to normal – overseas and at home. This announcement makes the world’s biggest automaker the first to publicly forecast a return to pre-quake levels and offers a peek at how long it may take other Japan carmakers to recover.

Akio Toyota, Toyota President, expects output overseas and in Japan to return to pre-quake levels in November or December. In Japan, output that currently hovers around 50 percent of the normal rate will start increasing in July as the final kinks in the supply chain get worked out. Factories in other countries will begin ramping up production from current levels in August.

Toyota recently has announced several production cuts for plants in the United States and Europe. Assembly plants there will operate for only three days a week. And when they are running, they will work at only half the normal pace. That brings total output to about 30 percent of pre-quake levels.

Like other Japanese automakers, Toyota has been suspending production amid global parts shortages triggered by the March 11 earthquake that hammered Japan’s supply chain. Toyota also announced this week that it would slash utilization of its plants in China to as low as 30 percent.

Akio Toyoda stressed that his comeback plan is still very fragile.

“Just last night in the area around Tokyo, we had another aftershock,” Toyoda said. “Because of such things, it can reverse the progress being made. So it is difficult to read what will happen.” Through the end of April alone, Toyota expects to lose 500,000 units globally.

Shinichi Sasaki, Executive Vice President in charge of purchasing, said models that share many commonized parts will be first returning to normal production.

Many car brands are betting on the electrical vehicles.Why do they enter this race ? We can, sum up the rising prices of oil prices,the public awareness on climate change, air pollution problems, cars cost of use, technological advances, new emission régulations,…

First estimation by industry experts, shows that pure battery electric vehicles could account for 12 per cent in 2020 and 32 % in 2030. Over 30 % pénétration would mean substantial changes in the world’s largest automotive markets – 30 %in the U.S.A – over 50 % in Japan and China.

How to get there ? Advances in batteries will be critical. Lithium-Ion batteries (the kind used in mobile phones,or laptop computers – have improved the economics, safety, reliability and range. Everything is not yet settled. Indeed electrical vehicles have still disadvantages in termes of cosqt, range and performances. Improving batteries in terms of energy density, charging time and lifetime will be key. But,optimizing all these different pièces will take money, brains and a bit of luck. Governments will also play a driving role in the process by pushing there lo,ngterm objectives. Research funds are already présent en tax crédits will promote the use of electrical vehicles by car owners.

Almost all major car companies have announced plans to sell electrical vehicles between 2012 and 2014.

Nissa-Renault CEO, Carlos Ghosn, has predicted that one in 10 cars globally will run on battery power alone by 2020. Additionally a recent report from Deloitte’s global manufacturing industry group, claims that by 2020 electric cars and other « clean cars » will take a third of the total of global car sales (read more).

Electrical vehicles : nothing really new !

At the early days of the automobile industry, electric cars enjoyed High popularity. Between the mid 19th century and the early days of the 20th century electricty was considered as providing better comfort and ease of use than the gasoline cars. Later advances in internal combustion technology offered interesting advantages (quicker refueling time, good gasoline infrastructure, mass production factories, reduced prices,…) and pushed the development of gasoline vehicles.

At the end of the 19th century, electric automobiles held many speed and distance records of which the breaking of the 100 km/h speed barrier, by Camille Jenatzi on April 29, 1899 in his ‘rocket-shaped’ vehicle « La jamais Contente ».

Already at that time, the main handicap of electrical vehicles was the lack of recharging infrastructure.

Among the advantages, the electrical vehicles could bring forward that they did not have the vibration, smell, and noise associated with gasoline cars. They did not require gear changes, which for gasoline cars was the most difficult part of driving.