August 18, 2010

Auto Industry Satisfaction is Down
Americans' satisfaction with domestic automobiles has stabilized, and in a few cases climbed, despite an overall decline for the industry over the past 18 months, according to an annual report released Tuesday by the American Customer Satisfaction Index. Overall, automobile satisfaction dipped from an all-time industry high of 84 in 2009 to 82 this year on ACSI's 0-100 scale. Automotive News reports that the American Customer Satisfaction Index survey is conducted by phone, and each company's score is derived from 250 interviews with respondents aged 18 to 84. Overall, 14 of the 19 biggest brands dropped in customer satisfaction over the past year. Of the few nameplates that held steady or improved, Nissan made the biggest stride, up four points, to match the industry average at 82. Even though satisfaction with most domestic and international automakers declined in 2010, U.S. brands showed the smallest drop, while Japanese and Korean brands fell the most. A year ago, in the middle of the recession, generous discounts and the government's Cash for Clunkers program helped many auto brands post record levels of satisfaction with U.S. consumers. But the gains have not been sustained. Click here to read the full report on the latest U.S. customer satisfaction numbers.

S. Korean Ambassador to Meet Auto Executives
The South Korean ambassador to the United States will meet with top executives at Ford Motor Co. and Chrysler Group LLC today during a day-long visit to Detroit to discuss a free trade agreement. According to The Detroit News, South Korean Ambassador Han Duk-soo, a former prime minister of South Korea, will speak to the Detroit Regional Chamber of Commerce and address concerns raised by U.S. automakers about the long-stalled Korea Free Trade agreement. The ambassador also is meeting with Hyundai Motor Co. officials in Michigan and will attend a dinner with auto executives at the Henry Ford Museum, said Eric Thomas, a spokesman for the Korean Embassy. "He's going to be talking about the auto issue. The Koreans are willing to listen. That's why they are in Detroit. They want to hear what the car companies want to say," Thomas said, adding they are committed to making the agreement a "success" for both sides. Last month, U.S. Trade Representative Ron Kirk said the government would push for changes to make it easier for U.S. automakers to compete in Korea. The agreement, as it now stands, "isn't sufficient to break down the barriers that the Koreans have put in place," said Stephen Biegun, Ford's vice president of international governmental affairs, last month. Click here for more on the South Korean Ambassador's visit to Detroit. For more from AIADA on the importance of a U.S.-Korea Free Trade Agreement, click here.

Sales Stalling, Smart Takes to the Street
Just 61 inches high and 106 inches long, the two-seater Smart fortwo is not exactly a family car, or the sort of vehicle you'd use to travel across the country. Its diminutive dimensions are designed for the tight squeeze of city driving, and for potential buyers like David Carroll, who is definitely not diminutive, it's hard to know whether they'll fit inside comfortably. He personifies the problem faced by Smart USA, the U.S. distributor of the fortwo minicar. According to MSNBC, many potential customers who thought the fortwo was a neat idea as a second city car when the vehicle was first splashed across the media a few years ago feared the car wouldn't suit them in reality. Now the company, a unit of Penske Automotive Group, is aiming to restart stalled sales with a reinvigorated marketing effort that puts Smart in front of the kinds of consumers who are apt to be interested. Recognizing the need for Smart to start selling its cars rather than just taking orders from consumers, Smart has hired Jill Lajdziak, formerly general manager of GM's Saturn division, to boost its marketing effort. With her new vice president of marketing, Kim McGill, Lajdziak has plotted a strategy of focused web and print advertising plus product placement in movies and TV shows. Click here for more on Smart USA's new approach to marketing its vehicles.

How Companies Get Us Excited About Their Cars
How would you like to build your own Corvette engine, at the plant? Or maybe you'd like to badge your Subaru the way a Girl Scout might adorn her uniform? Or maybe you'd like to play a version of the old classic "Slug Bug"? According to AOL Autos, these are some of the latest tactics employed by some "old" automotive brands to win the attention of new customers. Among the newly-employed tactics, Subaru has introduced a novel idea with its Badge of Ownership. In a social network-like fashion where drivers join groups or "like" various ideas or products, the badges are less vehicle-oriented and more about representing one of your personal interests, while also telling the world how many Subarus you've owned. Click here to check it out. Volkswagen was hoping for a viral hit with its Punch-Dub game, a "reboot" of the original "Punch Buggy" game of the 70's. It launched this campaign during this year's Super Bowl. Click here to watch the commercial. While it is unclear whether this really took off, it was a clever way to try and extend the brand experience. The television commercials were fun, including the one for the VW minivan taking a tour through the neighborhood so the kids can watch the pedestrians sock each other. Click here to read AOL Autos' full review of the latest and greatest in auto marketing.

Pump Prices Fall as Crude Oil Declines
USA Today reports that there were some smiles at the gasoline pump on Monday as the average price of a gallon of unleaded regular dropped a couple of cents across the country. The average retail price of gasoline is $2.75 a gallon, according to AAA, Wright Express, and Oil Price Information Service. That's down 2 cents from Friday and 2.4 cents from a week ago. Gas is 11.3 cents a gallon higher than a year ago. Gasoline prices have dropped as crude oil prices fell from about $81 a barrel in the past week, mostly on worries that the U.S. and global economic recoveries are losing steam. On Monday benchmark crude for September delivery fell 15 cents to settle at $75.24 a barrel on the New York Mercantile Exchange. Click here for state-by-state gasoline average prices from AAA. Some analysts think that economic data, lower stock prices and an abundance of oil could keep crude prices from rising much soon. "There is plenty of oil available right now, and oil market fundamentals are bearish," said energy consultant Cameron Hanover. "The question for (this) week is whether they will be allowed to further develop their theme of weakness through lower prices." Click here for USA Today's coverage of gas prices.

Around the Web
More Audio, Mileage for the 2011 Honda Accord [Exhaust Notes]
Dogs Behind the Wheel [CNN Money]
Ferrari, by a Hair [Wheels Blog]
Cars that Just Won't Die [Car and Driver]