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General Motors (GM) pits new Chevy Malibu against Toyota (TM) Camry

General Motors Corp. (NYSE: GM) has announced that it will spend $100 million this year to advertise the Chevy Malibu as a suitable alternative to the best-selling Toyota Motor Corp. (NYSE: TM) Camry. Although GM recently lost the top global spot to Toyota as the world's largest automaker this year, this advertising bet sound a little hokey to me. Can GM really convince Americans that an aging nameplate like the Malibu can compete against the rock-solid image of the Camry? Although it's an all-new design, that may not be enough for most customers.

The Camry, I suspect, sells in such great volume because of the perceived reliability and reputation just the name has. I can't count how many times I've heard a "300,000 mile" story from a Toyota Camry owner. By my estimation, Camry owners (and even prospective buyers) have more loyalty to the Camry than all other cars combined -- ever.

What could GM pit against the Camry for a winning proposition, though? Invent a new nameplate (or re-badge one) and build a reliable and comparison-based marketing campaign? The perception of the "Malibu" nameplate is not even in the same ballpark as the long-standing reputation the Camry enjoys. It may be true that GM's cars are just as reliable and as solidly-built as Toyota's vehicles (many of which are built in the U.S. by Americans). But I'm not sure that's how people buy cars in most cases. Past reputations, word-of-mouth and perceived benefits are incredibly strong here. Can the Malibu dethrone that thinking from a prospective Camry owner? I doubt $100 million will even make a dent.
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Last updated: November 26, 2009: 06:19 PM

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