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.
Last updated: February 13, 2012: 07:59 AM
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Reader Comments (Page 1 of 1)
8-21-2007 @ 3:46PM
A D said...
Considering the sludge prone Camry already has the advantage of a government that lies about currency values, what's a few more lies?
Why won't any of the so called experts that post on these blogs tell the truth? That Japan is looting the United States and doing it with the backing of subsidies from not only their lying governement, the've bought off "ours" too.
Yes the truth is, currency manipulation is an indirect subsidy being given by the taxpayer to help destroy the American workforce. And it's gotten so bad that the Japanese don't deny they are doing it, congress know it's happening but the pathetic consumer Wal Mart "mentality" over rules intelligence. Big box forever, middle class Americans to hell.
BTW, there are three million Toyotas running around with thousands that have sludged their motors. Toyota refuses to fix them. Blog that.
8-21-2007 @ 4:29PM
realist0000 said...
American's love value more than anything.... who gives a sh*t about what our economy is going through... Awww.. Poor GM... This was never an issue before, but now that Toyota is about to put GM to shame.. all of a sudden we're calling out the Government??... GM has outsourced to preserve their money hungry exec's salary.. Shame on them! It's not Toyota's fault that GM, FORD, and CHRYSLER have been over paying their workers for years now and now that it's hard to be competative... don't cry now... TAKE IT LIKE A MAN!
8-21-2007 @ 5:22PM
Al said...
How can a company like GM dethrone the almighty Camry Toyota? Oh Oh! A little company like GM can not dethrone the almighty Toyota! What does GM know?
What a laugh. This writer is an ignoramus!
GM was building cars when Toyota was making bicycles. GM now has some of the best cars in the world. GM is not idling anymore! Check out their new products and the soon to be products. You'll be amazed.
8-23-2007 @ 5:49AM
Gumby said...
It is now America's turn to make kamikzee runs against Tokyo, inc. We are losing the car wars fast! UAW is still digging heels knowing full well that they will still be working for bankrupt GM and Ford. UAW will do anyting to screw shareholders!! Where is our shareholders' recourse?? Where is the SEC where we need them?? UAW must have learned from the bankrupt airlines that stewadresses and pilots are still working for bankrupt airlines. UAW just dont care about GM and Ford shareholders. UAW is in no mood to fight for propserity let alone survival... Shareholders are in a funky dilemma about whether to keep holding shares or not.... When ? when? when? If? if? if? not?not?not?
8-21-2007 @ 7:31PM
Gumby said...
I trapped several rats scurrying around my garage. I took close up photos of them with their mouth opening and bleeding out. I am thinking of them as GM and Ford shareholders. The rattrap is made by UAW!!
6-25-2008 @ 10:48AM
Gumby said...
UAW traps GM and Ford shareholders and skin them for fur (pensions and benefits). That is all UAW is good for...
8-21-2007 @ 7:39PM
Gumby said...
Management ought to stop pussyfooting around with lame job buyouts.. Just lop the whole friggin UAW and save our shareholders who can then save GM and Ford. I dont care about the damn old Labor Code of the 1930's. UAW is going too far overboard and making fools out of GM and Ford shareholders that means mostly the mutual funds that many of us own . Why are those mutual funds still holding GM and Ford until they go bankrupt eventually. What are those mutual fund managers gonna tell us?? Just shrugging shoulders??
8-21-2007 @ 7:41PM
Gumby said...
I jumped in and out of GM and Ford stock repeatedly trying to out guess UAW's intents. UAW is not a reliable workforce and I would like very much for UAW to go home, yankees!!
8-21-2007 @ 8:28PM
Al said...
Hey Gumpy, have you written enough anti UAW comments? I thought the subject was about Camry versus the new 2008 Chevy Malibu. Has the UAW personally done anything to you? It sure looks like it. It too bad you don't work for GM Ford or Chrysler, then you could really hurt the UAW!
8-21-2007 @ 8:29PM
geisemann99 said...
I looked at the 2008 Accord. One word super boorign.
Now that GM builds the best ( Buick is better than Lexus in JD. I get a GM knowing it will have less problems than a Toyota and Honda.
I look at the 2008 Fresh New GM wow fun!
I buy the GM over the Accord any day.
8-22-2007 @ 4:41AM
Gumby said...
Al
UAW hasnt personally done anything to me directly, but I can tell you that UAW had been ripping GM and Ford shareholders off for years ..
UAW doesnt want to see stock go up and split and split so that they dont have to work harder for more dividends to be paid to shareholders. UAW prefer that GM and Ford be treated like yo-yos so that it is more convenient for UAW to keep more for themselves in their huge pension plans passing $100 billion each in GM and Ford.
Dont you know that GM had last paid $5 dividends way back in 1989? Had GM not cut it until today, GM sharehlders would be ahead by $30 billion in dividends alone or equivalent to $60 a share in dividends. Wher do you think the cut dividends go to ??? Guess again, to UAW pension fund.
No wonder GM and Ford tanked in stock prices. I am amazed at where they could find money to upgrade their factories. GM and Ford had to sell assets to modernize their plants and to fill up UAW pension coffers. UAW kept on thinking that they could do without shareholders.
It is flatly dangerously wrong for UAW to take that attitude toward shareholders. GM and Ford is so worthless today.
UAW still wont give an inch yet despite recent job buyouts. UAW must surely get somehting in return for that job buyouts in form of other things. UAW will never concede defeat. UAW is just stubborn.
My eyes glazes over whenever I read about latest exciting models coming out of GM or Ford as long as UAW is still dragging testicles balls around...
8-22-2007 @ 4:53AM
Gumby said...
Al
I kept on hearing about UAW grumblings about shoddy management. I am telling you straight that the management just knew that if they work harder then UAW will take that for granted and keep on making unreasonable demands for more wages and benefits ... GM prefer to invest overseas but I am telling you that GM will eventually be compelled to sell them in the future to pay up UAW benefits obligations years later. GM basically is farming assets overseas only to be harvested (sold) like GM is doing with GMAC, locomotives, and Isuzu , etc. UAW want to make sure that every dime be kept inside the company and for themselves.
In other words, there is no spirits left at GM and Ford. Everyone is demoralized and damped down by UAW. It is like an unwelcomed guest at the party and you know how it is like....
I just cant understand why UAW still has some beef to share with management during this contract talks. I dont think there is anything to talk about as long as Toyota and others are taking market shares away from GM and Ford. There is no sense of urgency or action. UAW just knew that all is lost and they are gearing themselves up for eventual GM and Ford bankruptcies like Delphi. Even at Delphi, UAW still used negotations with Delphi. That is insane for an unioin like UAW...
We can win back market share without UAW hanging at our backs....
UAW just dont care about stock price which is the backbone of prosperity. UAW is still not concerned with the depressed stock values of GM and Ford.. They are really crazy and stupid!!
Yet, we are still discussing about latest models and I dont pay attention to them as long as UAW is still sticking it out ...
8-22-2007 @ 5:00AM
Gumby said...
Al
We just cant pussyfoot around UAW anymore, we gotta to confront UAW and talk them down or drag their asses out the doors at once. That is how it is today... UAW got to understand that they got to keep shareholders in mind the whole time... UAW just cant just talk to management alone. Management is really working harder for UAW than shareholders which is very wrong!! It just cant continue like that. It is a small wonder that UAW had been getting away with this for so long. UAW are basically saved by mutual funds which is obligated to buy GM stock according to prospectus requirments. It is UAW's only saving face left ....
Individual investors are not likely to go back to GM stock again ever as long as UAW still stick it out...
8-22-2007 @ 5:06AM
Gumby said...
UAW You are finally screwed!@!!
8-22-2007 @ 5:10AM
Gumby said...
I dont carte whether UAW thinks they are right or wrong. Just simply look at GM and Ford share prices. UAW is not paying enough attention to it.. If UAW think they can wait until I lose patience and sell them, well it is your pregrogrative not mine. I do what I damn please. If you choose to bankrupt GM and Ford, fine with me!! UAW , you cant just keep GM and Ford low for too long, anyway. It is either up or down from here. If you want up from here, then stop talking tomorrow and come out and tell the world that you want to make shareholders happy !!!If not, mutual funds will just lose money on GM and screw mutual fund investors one way or another... What a pity!@!
8-22-2007 @ 7:33AM
Al said...
Gumpy, You hold enough hatred against GM and Ford for all of us. GM and Ford, especially GM, are making great cars today and they are not selling like they should. Would you say that is the UAW's fault today? Maybe it's because in the past 20 years, they did not make any outstandy vehicles. I don't see that to see the UAW fault. By the way, the GM stock has been one one the best for the year. I don't know what your grumbling about.
8-22-2007 @ 2:22PM
John said...
U.A.W ROCKS DA HOUSE! Yes pay living wages so people can buy homes and releive us of that scare. The U.A.W workers did not create the credit crunch that is killing the stock market .your screaming about people who make $28/hour +benifits. U.A.W workers now hae made so many concessions many are under $20/hour. it is time for the "investors" to give a little back to the working man. The useless Warren Buffets and Karl Ickans can afford to pay a few thousand workers for a few decades the U.A.W did not hurt this group of trashey Americans know as investors, who in realitie are no more than parisites on the working American.