Tag Archives: automobiles

by | Tuesday, September 10, 2024 · 6:40 am

What Happens to Cars after the SUV Craze?

Automobiles are a big part of the global economy and global infrastructure. How big? In 2021 it was valued at $2.86 TRILLION, and in 2023 it was valued at $3.56 TRILLION.  That’s Trillions with a capital T – and certainly an industry that is future-focused.

In the 1960s there were station wagons, which were replaced in the 1980s with mini-vans. Then, in 2000s, the Sport Utility Vehicle took over the mini-van market. According to Edmunds automotive research company, the SUV accounts for 60% of the U.S. market. However, with the rise of new car prices to an average of $50,000, the industry needs to re-think the products that consumers want.

What comes next after the SUV? Does it have:

  • Batteries.
  • Different driving modes.
  • Dashboards and steering wheels.
  • Voice controls.
  • Emotions.
  • Form and shape.
  • Storage.
  • Speed.
  • Environment concerns.

After all, the increasing use of AI along with autonomous driving options makes this an amazing age of technology and innovation. And of course, challenges abound as well.

Take a few minutes and think about it. What are the problems with today’s cars? Then think about solutions – crazy ideas are welcome. What would your car of the future look like?

Let’s go for a ride.

Group Activities and Discussion Questions:

  1. Discuss the framework for innovation. 
  2. Show the IDEO video about innovation for a shopping cart: https://youtu.be/izjhx17NuSE?si=gy8a-Mcpi6xMnoy7
  3. The original design was from 1999. Why do students think it never caught on?
  4. Have the class execute the IDEO process for car design: problems, ideas, crazy ideas, etc… Use large white poster paper for this exercise.
  5. Describe the final future car based on student ideas.
  6. Show video of possible future cars: https://youtu.be/D-f0yVjYBRQ?si=5lpHH2VxGYMGc38p

Source: Berk, B. (8 June 2024). The auto world’s next obsession: What comes after the SUV? Wall Street Journal.

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by | Thursday, June 6, 2024 · 11:06 am

Chevy Malibu comes to the End of the Road

It seems that all good things must come to an end. And one of those things, Chevy’s Malibu sedan, is nearing the end of its life cycle. The model was first launched in 1964 and was marketed as the Chevy Chevelle, before eventually becoming the Chevy Malibu in 1978. Over the years, Malibu sold 10 million cars and was the choice for a family sedan.

But now this car model is entering its twilight time as GM announced it would end production later this year. Taking its place, GM is preparing to launch new electric vehicles (EV) including the new Chevy Bolt EV. The Malibu was the last car/sedan sold by Chevy in the U.S. Only the Corvette remains – and that’s definitely not a sedan.

GM isn’t alone; Ford and Stellantis have also stopped making sedans as consumers’ taste has moved on to SUVs and trucks in the U.S. Last year, only 8% of new car sales in the U.S. were mid-sized, down from 22% in 2007.

Bye, bye, Malibu. We’ll miss you.

Group Activities and Discussion Questions:

  1. Discuss the stages in the product life cycle. What are the marketing objectives in each stage?
  2. Show Chevy Malibu website: https://www.chevrolet.com/cars/malibu
  3. What stage of the PLC is the Chevy Malibu now entering?
  4. Divide students into teams. Have each team draw a product life cycle and place various products and services into each stage.
  5. Next, have students brainstorm on how to reposition or revise products/services to that they can move into an earlier stage of the life cycle.

Source: Associated Press. After 60 years, Chevrolet Malibu rides off into the sunset (10 May 2024).; Boudette, N. (8 May 2024). G.M. will retire the Chevrolet Malibu to make more electric cars. New York Times; Windolf, J. (9 May 2024). The Chevy Malibu was so uncool it was cool. New York Times.

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by | Thursday, April 25, 2024 · 9:46 am

Tesla is Now Spending on Advertising

Times are changing. Habits evolve. Products adapt. And, what worked in the past might not work today.

Here’s an example: Tesla has long avoiding the costs of advertising in any traditional way. Its own CEO, Elon Musk, has stated that he hates advertising. To date, Tesla has depended on its own social media accounts, consumers’ social media, stores, press coverage, and strong word-of-mouth branding. Plus, Elon Musk has access to a very large social media platform/followers and uses it to the company’s advantage.

But, Musk has changed his mind and spent about $6.4 million on digital advertising in the U.S. in 2023. While this is definitely an uptick from spending of only $175,000 in 2022, it pales in comparison to other automotive companies’ spending. For example, General Motors spent $3.6 BILLION on advertising and promotion in 2023.

 So, where is Tesla advertising? Well, it is spending primarily on digital advertising on X (another Elon Musk company), Facebook, Instagram, and YouTube. Tesla has also bought Google search ads. Current Tesla advertising focuses on family and safety – this repositions the company from a sports car to family car.

And, why is Tesla advertising now? Perhaps it’s because its stock price is down, growth has declined, and competition has increased. Some of its ads even included promotional pricing to lower the cost of buying.

What do you think?

Group Activities and Discussion Questions:

  1. Poll students: How has Tesla historically marketed its vehicles?
  2. Why is Tesla now advertising?
  3. View Tesla YouTube ads: https://youtu.be/L2fticPH-to?si=6Q4zwI6gXHaHryLh  
  4. View Tesla ads on X: https://twitter.com/Tesla/status/1770846108098375680?s=20
  5. Poll students: Who has seen an ad for Tesla on any of their social media feeds?
  6. Discuss the Product Life Cycle (PLC) and how advertising is used at each stage.
  7. Have students draw a PLC and place the EV industry. Then have them place other automobile companies.
  8. Given this, have the teams develop a marketing program for Tesla.

Source: Haggin, P. & Coffee. P. (29 March 2024). Tesla dives into advertising after years of resistance. Wall Street Journal; Kafka, P. (5 March 2024). Elon Musk has a unique plan to solve Twitter’s ad problems. Business Insider; Quiroz-Gutierrez, M. (29 March 2024). Tesla scraps Elon Musk’s no-advertising mantra as stock nosedived nearly 30% this year. Fortune.

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