Chrysler/Honda
Allen WELLS
With Sales Falling, Chrysler Takes on Honda in New Ads
Chrysler Corp. is launching a new ad campaign aimed at reversing
a sales plunge that has mystified and mortified top executives.
The ads, which begin today, claim Chrysler models are superior to
Honda Motor Co's much-touted Civic and Accord. The campaign is based on
recent tests with 200 car owners in California, a market dominated by
Honda and other imports.
The targets for the new campaign are customers Chrysler needs to
survive long-term: younger, more affluent buyers who currently own domestic
vehicles but are considering switching to an import.
The head-to-head comparisons ("Meet the Americans that beat the
Hondas") are an aggressive, high-stakes gamble for Chrysler, but it has
few other options. The company, which once seemed to able to fend off
every sales slump with a new advertising program or incentive gimmick, has
watched its U.S. car market share dive almost three percentage points in
only four months. [Note: Accompanying graph shows Chrysler's automobile
market share at 11% in 1988, 10% in 1989, and dropping from 10% to less
than 8% in Jan-Apr of this year. Their share of the entire market (including
light trucks and minivans) was at 14% in 1988, 13% in 1989, peaked at almost
16% in January (first minivan incentives), then dropped steadily to 10% by
April.] This happened despite some of the heftiest rebates in Chrysler's
history.
If current trends continue, Chrysler will wind up 1990 in fifth
place in U.S. car sales, behind Honda and Toyota Motor Corp. as well as
General Motors Corp. and Ford Motor Co. Chrysler still leads its Japanese
rivals in combined car and truck sales, thanks to its Jeeps and minivans.
but the company's share of total vehicle sales barely equals its share of
car sales alone in recent years.
one possible reason for the drop is that Chrysler, over the past
two years, has killed off some 20 nameplates, including what once were
its best-selling cars: the boxy Omni-Horizon subcompacts and the Aries-
Reliant compacts. These and other discontinued cars - larger, rear-wheel-
drive models including the Dodge Diplomat - appealed to Chrysler's historical
owner base of older, blue-collar consumers.
Chrysler may have moved too fast with the cuts, alienating its
traditional buyers ...
Other factors could be contributing to the dismal sales. One is
possible backlash over Chrysler Chairman Lee A. Iacocca's controversial
"board room" television commercial, which ran for three weeks in March.
...
Some critics have complained that hte ads are just the latest in
what they see as a long history of "Japan bashing" by Mr. Iacocca. Others
say Chrysler appeared to be blaming consumers for the auto maker's slow
sales.
But Chrysler has tested consumer reaction to the commercial ...
So the new ads again feature Mr. Iacocca, who gives the results
of tests Chrysler commissioned from U.S. Testing Co. Market Research ...
Two hundred owners of GM and Ford cars who said "they either definitely or
probably would consider buying a Japanese import" were asked to compare
Chrysler products with those of Honda.
Eighty-three out of 100 in one group judged Dodge Spirit and
Plymouth Acclaim "superior overall" to the Honda Accord in styling,
comfort, convenience, driving experience and riding comfort. Seventy-six
out of 100 in the second group ranked Plymouth Sundance and Dodge Shadow
ahead of Honda Civic on the same criteria.
Chrysler officials acknowledged that the new ads may test its
credibility with some consumers, particularily the comparisons with the
Accord ...
...
... reporters asked why Chrysler didn't run the tests with current
import owners. Mr. Damoose replied that Chrysler mainly is aiming to
attract some of the more than 60% of American buyers who still own
domestic cars but who are inclined to buy Japanese the next time around.
...
Chrysler needs a boost from this campaign to offset the anemic
sales of some other vehicles. The auto maker added several luxury
models ove ht epast year, for example, but its luxury car sales overall
are off some 30% from 1989 levels
And the Dodge Monaco, a derivation of the slow-selling Eagle Premier,
has proved to be a disaster. Chrysler has sold only 928 of the cars during
the first four months of this year; at the end of March, dealers had enough
Monacos to last more than 400 days. ...
Chrysler officials point to other factors that have cut into the
auto maker's sales. Chrysler is buying some 50,000 fewer vehicles this year
from Mitsubishi Motors Corp., its Japanese partner, to concentrate on sales
of vehicles it builds itself. Chrysler has also chosen to drop some fleet
business ...
...
As Chrysler executives search for solutions to the sales plunge,
the one thing saving the company right now from real disaster is is six-
month old, $1.5 billion cost-cutting program. ...
But cost-cutting alone won't be enough to get the company through
what promises to be a rough few months - and possibly years. ...
...
<end of article>
A few notes from me.
1) I found it amusing that they chose only current American car owners
who would 'consider' a Japanese car for their survey. Even back in the 70s,
the US auto makers were able to run surveys showing their small cars on top
by using people who currently own American cars. (Remember those old ads -
I think they were for Escorts - showing how they consistently topped the
Japanese?) I think that it is a clear sign of desperation that Chrysler has
resorted to that old trick again.
2) The most surprising thing in the article to me (I pretty much knew that
Chrysler was tubing) was that 60% of current American car owners are
considering a Japanese car for their next car. This shows that confidence
in American cars is decreasing, not increasing.
--
---------- "The UFOs have landed, and we'll tell you where they are."
Alien | - Wierd Al
---------- Microsoft has its own opinions. These are all mine, but I share.
Eugene Liu
writes:
>In article <11...@shlump.nac.dec.com> j_ma...@csc32.enet.dec.com (John Manning) writes:
>>Aren't the Dodge Spirit/Plymouth Acclaim/Eagle whatever really Mitsubishi
>>Galants?
>No. There is an Eagle sold that is a Galant (forget the model name),
Let's get this straight once and for all. The Eagle Summit is a Honda
Civic-sized clone of the Mitsubishi Mirage 4 door. The Mitsu Mirage
2 dr is sold in Dodge or Chrysler/Plymouth Dealers as the Colt. The
Galant is not sold by Chrysler or Eagle.
>On a similar vein, isn't the Plymouth Laser turbo really a Mitsubishi
>Eclipse turbo? If so, how can they claim in their commercial about the Laser
>and Nissan 300 ZX that the Laser is an "American" car?
>>The Laser is an Eclipse. It is an "American" car because it is built in
>>Michigan by a joint venture plant between Mitsubishi and Chrysler.
Yeah, but it's not really "American," since Mitsubishi did all of the
engineering and Chrysler can only claim to have styled the exterior.
BTW, it's built in Normal, Illinois, not Michigan.
Gene Liu
eug...@rcgl1.eng.ohio-state.edu
James Hansen
>>Aren't the Dodge Spirit/Plymouth Acclaim/Eagle whatever really Mitsubishi
>>Galants?
>No. First of all, which "Eagle" are you talking about? Eagle is
>the product line (as in Eagle Talon, Eagle Premiere, etc.).
>Like most of the current Chrysler cars, the Spirit and Acclaim
>are both built on the K-car chassis.
>>On a similar vein, isn't the Plymouth Laser turbo really a Mitsubishi
>>Eclipse turbo?
>Yes, and so is the Eagle Talon.
Close ...
The Mitsubishi Eclipse/Plymouth Laser/Eagle Talon are built by Diamond Star
Motor Company, a joint effort between Chrysler and Mitsubishi. All three
are based on the Galant platform.
--
James B. Hansen {sun,uunet}!jhansen!convex
Convex Computer Corporation jha...@convex.COM
3000 Waterview Parkway, P. O. Box 833851
Richardson, TX 75083-3851 Phone: (214)497-4802
Michael Waughn
>>*In article <54...@microsoft.UUCP>, all...@microsoft.UUCP (Allen WELLS) writes...
>>*Aren't the Dodge Spirit/Plymouth Acclaim/Eagle whatever really Mitsubishi
>>*Galants?
>>
>>the `eagle whatever' may be, if we ever figure out `whatever' it is.
>Replace "whatever" with "Summit", and you're in the money.
Actually, the Eagle Summit is a 4 door Mitsubishi Mirage not Galant.
The Dodge and Plymouth Colt are also based on the hatchback version
of these cars.
Does anyone know if the Spirit/Acclaim are offered with the Mitsubishi
6 cylinder that Chrysler is so fond of?
Mike Waughn
----------
Dave bd Hsu
>/ h...@eng.umd.edu (Dave "bd" Hsu) / 7:19 pm May 14, 1990 /
>>>*In article <54...@microsoft.UUCP>, all...@microsoft.UUCP (Allen WELLS) writes...
>>>*Aren't the Dodge Spirit/Plymouth Acclaim/Eagle whatever really Mitsubishi
>>>*Galants?
>>>the `eagle whatever' may be, if we ever figure out `whatever' it is.
>>Replace "whatever" with "Summit", and you're in the money.
>Actually, the Eagle Summit is a 4 door Mitsubishi Mirage not Galant.
Duhhhh...umm, I knew that. Really. Honest. :-)
>Does anyone know if the Spirit/Acclaim are offered with the Mitsubishi
>6 cylinder that Chrysler is so fond of?
I think the answer is no on the Mitsubishi, but a decisive yes on the
new Mopar 3.3V6. Check my rental car review from 2 months ago.
-dave
--
Dave Hsu Systems Research Center, Building 115 (301) 454 1845
h...@eng.umd.edu The Maryversity of Uniland, College Park, MD 20742-3311
"What kind of man would give a cigarette to a tree?"
Dave bd Hsu
>In article <276...@hpctdlo.HP.COM> m...@hpctdlo.HP.COM (Michael Waughn) writes:
>>Does anyone know if the Spirit/Acclaim are offered with the Mitsubishi
>>6 cylinder that Chrysler is so fond of?
>I think the answer is no on the Mitsubishi, but a decisive yes on the
>new Mopar 3.3V6. Check my rental car review from 2 months ago.
It has been pointed out to me that I've got this backwards; it's the
Mitsubishi 3.0 that's available, not the Mopar 3.3. If only I'd saved
a copy of the original review, I'd remember what I said.
Profuse apologies; I promise to refrain from commenting on Chrysler
until after I get a brain rebuild.
Joel Upchurch
> Does anyone know if the Spirit/Acclaim are offered with the Mitsubishi
> 6 cylinder that Chrysler is so fond of?
Yes I've got one in my 90 Acclain LE. It gives the car pretty good
pickup and I've got a speeding ticket to prove it :(
--
Joel Upchurch/Upchurch Computer Consulting/718 Galsworthy/Orlando, FL 32809
jo...@peora.ccur.com {uiucuxc,hoptoad,petsd,ucf-cs}!peora!joel (407) 859-0982
Jonathan D.
> >Does anyone know if the Spirit/Acclaim are offered with the Mitsubishi
> >6 cylinder that Chrysler is so fond of?
> I think the answer is no on the Mitsubishi, but a decisive yes on the
> new Mopar 3.3V6. Check my rental car review from 2 months ago.
Actually, the '89 models had the 3.0 v6.
BTW, if you order a Spirit or Acclaim with a v6, you can only get an
automatic transmission.
Michael Zimmers
>
> <23...@athertn.Atherton.COM>
>Distribution: usa
>Organization: Class of '91, Carnegie Mellon, Pittsburgh, PA
>Lines: 37
>In-Reply-To: <23...@athertn.Atherton.COM>
>
>
>>>remark that he loves import buyers: their so bent on buying Japanese that
>>>they don't flinch and pay sticker or better. You can claim that they
>>>were willing to pay extra to get that `quality' Japanese car, I say
>>they were taken for a ride.
>>>
>
>>Those customers have consistently been the most satisfied with their
>>purchases. Sounds like the ride they were taken on was better than most
>>USA car buyers.
>
>Because they are satisfied with their cars doesn't mean they couldn't
>have been equally as satisfied with something cheaper. Their is some
This MAY be true (though I doubt it), but to extend this argument to the
point that the customers are getting gouged requires insight into the
satisfaction criteria of those buyers. You and I don't have that.
>merit to the import buyers getting taken for a ride. They are similar to
>some of chrysler's claim. One example is the Chevy Nova ( Now is some
>GEO thing) I think three years back. They are the same car as a Toyota
>Tercel (I think) built in the same plant by the same workers (in
>California).The Toyota was ~$1000 more and had an inferior warranty but
>yet the Toyota sold well and Chevy could barely give the Novas away.
>
This is going to continue for awhile. The Japanese car industry had to
fight an American perception of inferiority for a looooong time. They
did it with superior products and a big hand from the Big Three, who for
whatever reason lost their competetive edge. Car buyers don't get many
sample points on their own, so their personally derived opinions change
slowly. It took the Big Three a long, long period of incompetance to
dig themselves into the hole they're currently in; it will take them just
as long to dig out (not allowing for senses of patriotism from the buyers).
>I personally am skeptical of customer satisfaction ratings and quality
>ratings. They are often based on short periods of time. Quality rating
>often talk about number of repairs in the first 90 days or something
>like that. That stuff isn't really a measure of quality. Quality is will
>this car still get me reliable from point A to B 8 years and 100000+
>miles later not whether it comes with a few bugs to be worked out. Take
This also adds to people's reluctance to "change colors"; it takes time
to evaluate changing quality. A certain amount of skepticism is healthy,
and I know that 90% of anything in print is BS, but input from R&T's owner
surveys, that ask people about cars they've had for years, can be very
valuable *if* you're interested in that car in the first place.
By the bye, waiting for a car to be around long enough for someone else
to drive 100,000+ miles before buying is a self-defeating strategy for
most of us: by then the car is probably obsolete.
>Ed
--
Michael | If you don't like looking at my words,
Zimmers | just lean on your space bar for awhile...
bmay
>Their is some merit to the import buyers getting taken for a ride. [...]
>One example is the Chevy Nova [...] three years back. They [were] the same
>car as a Toyota Tercel [...] The Toyota was ~$1000 more and had an
>inferior warranty but yet the Toyota sold well and Chevy could barely
>give the Novas away.
A current example is the Mitsubishi Eclipse/Plymouth Laser(?) which come off
the same production line. Two comments:
(1) Less-informed buyers go to a certain brand's dealers for certain types of
vehicles. People looking for economy cars may just go to Toyota dealers
more than Chevy dealers. Maybe Chevy was shipping too large a percentage
of Novas in its fleet mix (in hopes of pushing its CAFE up?).
(2) The (damn, blanked out on the name) Consumer Satisfaction Index that Acura
and others quote so much is a combined car/dealer index. In my limited
experience, I have always shopped for domestic models first and have been
totally disgusted with the salemen. E.g. they have never known all the
facts about the cars (don't know if it has fuel injection, the exact dis-
placement, etc.), on finding that the car I had selected doesn't have
enough headroom for me to even sit in the driver's seat, saying "We could
have made 2 inches more headroom, but instead we used that space to put in
more sound insulation for the quietest car in its class!"; and my favorite
from just a month ago, the salesman who said only GMC Astro vans have "All
Wheel Drive"--"the other vans only have four wheel drive, but four wheel
drive can only drive two of the wheels at once--only GMC has all wheel
drive !"
Does anyone know what the separate ratings are for cars vs. dealers? I
have always had only good experiences with salesman and service depts. at
Japanese dealers.
--
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