The political campaigns are in full force and once again I’m disappointed by the lack of branding by both parties in trying to get their candidates elected or re-elected in. November. The incessant battering of the opponent, I believe, does nothing more than turn off the voter and hide the qualifications of the candidates to lead our country. But, I’ve said this before in these articles–four years ago to be exact–so I won’t belabor that point. Which brings us to the subject of car advertising. Huh?
The good news from Motown, my hometown, is that car sales for all U.S. brands is up. And the threat of once-strong corporations going out of business has subsided for the time being. Of course, our political candidates credit the government bailout for saving the companies (GM and Chrysler ) and the thousands of jobs (not to mention the survival of our entire middle class society ). No doubt the millions of dollars in “loans” helped resuscitate the two struggling companies, but I believe that their recovery has more to do with branding than financing. Let’s take look at Chrysler to see how branding and inspired leadership made the recovery possible.
Three years ago, Chrysler was all but given up for dead. With bankruptcy looming and sales and market share dwindling, it certainly wasn’t a good investment much less be the first choice of car shoppers. While the bailout by the government was critical, more important for the recovery was the merger with Fiat of Italy and the new CEO, Sergio Marchionne. He had led Fiat’s recovery and every time I see a little Fiat 500 on the road today, I think back to the 1960’s when the same model was more like a toy than an economy car. They were small, Spartan, and didn’t really work too well. And they disappeared from the American marketplace. Fiat recovered by adding in exciting brands like Ferrari, Maserati, and Alfa Romeo, the company is a European powerhouse today despite the economy over there.
The key to Chrysler, however, was the arrival of Marchionne as CEO. He set new standards, shook up the organization, formed a new leadership team reporting directly to him, and restored confidence to the work force at the company. More important, he revitalized the brands—focusing on the strengths of the Jeep, Minivans, and Dodge light trucks. Once the strategies became more focused and the people became motivated and confident, the company started to re-brand itself to the consumers. It’s “Imported from Detroit” set a new standard for the company—and its hometown. The super bowl spots of a couple years ago took a no nonsense approach. Brand advertising for its models was creative and on target. Most important, the cars lived up to a brand promise of style and quality as well as performance that comes with an Italian influence.
And it’s working. Sales are up in double digits. Income was up $900MM for the first half of this year even while paying off the $6 Billion in loans to the federal government (early). The launch of the new Dodge Dart (definitely not the same Dart that my parents owned in the early 60’s) looks promising with exciting touches from their new Italian relatives. The brand is creating believers in the company, and by doing so is on the way to recovery. Marchionne says part of his plan was to move out of the Chairman’s Ivory Tower offices in Auburn Hills and down on the floor with the people building the cars and the brand. His influence is working and the brand is alive and exciting again.
Recent Comments