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 Volve’s, 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.

Volvo’s 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 the
continuous 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.
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. Having
more 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 prominent
example 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 engineer
Taiichi Ohno.
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 of
the 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).