Tag Archives: automobiles

by | Monday, November 14, 2022 · 8:36 am

More Electric Vehicles Make it to Market

There is no doubt that electric vehicles (EV) are seeing an increase in inventory and sales. Globally, electric vehicle sales doubled in 2021 and sales are still strong in 2022. In the second quarter of 2022, EV sales were 5.6% of the total auto market, up 2.7% from the same time a year ago. Consumers are embracing the EV market for its clean energy and solid performing vehicles.

Pricing remains a sticking point with consumers though as many EVs are priced in the range of $50,000 – $100,000 and up. Sure, consumers want to help the environment, but they also face a very real limitation on spending for EVs.

To help position it as a more general option, General Motors plans to release an EV Chevy Equinox in fall 2023 at the lower price point of $30,000. Today, there are few models of any type of EV below $35,000. Complicating the pricing, the costs of battery materials (such as lithium and nickel) have risen significantly. On average, U.S. buyers paid $66,000 for an EV, an increase of 28% from a year ago according to J.D. Power research.

The Inflation Reduction Act is one option to help consumers lower the costs. It offers up to $7,500 in federal EV tax credits, but only for models that meet certain domestic-production requirements. While both new and used cars qualify, there are other restrictions that can limit how much tax credit a consumer receives including income limits and vehicle list prices.

Are you ready to make the leap to an EV vehicle?

Group Activities and Discussion Questions:

  1. Poll students: What is their perception of pricing for EVs in today’s market?
  2. Have students research prices for EV automobiles and SUVs. Build a spreadsheet with information about select vehicles such as Volkswagen, Tesla, Kia, and Toyota.
  3. Have students research the Inflation Reduction Act for federal EV tax credits. What are the caveats?
  4. Show video from WSJ about the EV discounts: https://www.wsj.com/video/series/george-downs/the-climate-bill-unlocks-new-ev-discounts-but-not-everyones-a-winner/26F2FC57-3150-4311-AE3E-705E554AB4D6
  5. Another classroom discussion can focus on how the Inflation Reduction Act fits into an environmental scan for the EV market.

Sources:  Colias, M. (8 September 2022). GM courts mainstream buyers with $30,000 electric Chevy Equinox. Wall Street Journal.; Forbes growth sector: Electric vehicle sales and the new electric economy have arrived (24 September 2022). Forbes.

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by | Tuesday, August 16, 2022 · 7:46 am

Datsun and Internet Explorer Bite the Dust

As we’ve written in previous articles, no product lives forever. There are always new innovations, trends, social forces, competition, and technologies that push products forward. Ultimately, every product eventually reaches its final stage in the Product Life Cycle (PLC) – decline/harvest – when the product is put to sleep and resources are reallocated to up-and-coming new products.

Two more products joined the eliminated list: Microsoft Internet Explorer and Datsun cars.

Datsun helped Japanese car manufacturers break into the American and European market after World War II. In its heyday, 20 million Datsun cars were sold in 190 countries across the world. The Datsun name was phased out in the 1980s, only to be revived 30 years later as “an important part of Nissan’s DNA.” However, Datsun eventually reversed the decision, making Nissan the primary company brand for the auto maker.

Joining Datsun on the gone-but-not-forgotten product list is Internet Explorer – the Web browser that many say really started the popularity of the Internet. First launched in 1995, IE was the dominant browser for many years, reaching 90% of users in early 2000s. But competition from Google Chrome, Apple’s Safari, and Mozilla’s Firefox finally proved to be too much. All is not lost however; in its place will be Microsoft Edge browser.

Farewell to our old favorite brands.

Welcome to the newcomers!

Group Activities and Discussion Questions:

  1. Discuss the stages in the product life cycle. What are the marketing objectives in each stage?
  2. Divide students into teams. Have each team draw a PLC and place various products and services into each stage?
  3. How are cars moved through the PLC?
  4. How does technology move through the PLC? What are the adoption cycles?
  5. Show video of Internet Explorer death: https://youtu.be/wZoZV6GjzPA
  6. We’ve seen other products revived after being declared “dead.” What would it take to revive these two brands?

Sources:  Jacobsen, R. (15 June 2022). Internet Explorer has retired. Associated Press.; Nissan signals end of road for Datsun cars. (25 April 2022). BBC News.; other news sources.

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by | Monday, May 30, 2022 · 7:35 am

Car Washes That do More than just Wash and a Buff

I don’t know about you, but I love a good car wash. Nothing beats taking a dusty, dirty car and turning it into a clean and shiny car.

But, car washes are pretty boring fare. Just basic. Wash and dry. Maybe a little wax. And we can do this ourselves (if lucky enough to have a house and yard), or we can go to a car wash for different levels of service from self-serve to full-detailing.

One of the problems with car washes is their total lack of appeal for customers while waiting for the car to be cleaned. Bored patrons. Utilitarian building. No appeal. No community. Wouldn’t it be nice if car washes were, well, attractive and welcoming?

Some car washes have seriously upped their game, adding coffee shops, bars, food, hookah bars, and more. The result is to make it more like a club – and keep customers there to spend more money and time.

One car wash in Sioux Falls, S. D., offers locally roasted coffee along with sandwiches and pastries. Another business offers pet-washing stations plus doggy snacks. A car wash in Zurich, Switzerland, has a dance club on the second floor so that customers can dance while they wait. And, a car wash in Plano, Texas, uses advanced technology in its $5 million facility with a luxury lobby complete with televisions and café

Lest you think car washes are small potatoes, a research report shows it growing to a $38 billion market by 2030. However, start-up costs for an express exterior car wash can be several million dollars. Businesses need a little competitive edge and better services could help differentiate car washes.

Care for a latte while you wait?

Group Activities and Discussion Questions:

  1. Start with a poll. What do students dislike about car washes? What amenities would they like to see in an upscale car wash?
  2. Discuss competition: Who are the direct competitors for this service? What are the points of difference?
  3. Discuss the four I’s of services: Intangibility, inconsistency, inseparability, inventory.
  4. Where on the service continuum is a car wash?
  5. Service encounters: Develop a customer contact audit for a luxury car wash.
  6. Divide students into teams and have each team develop their own car wash service.
  7. Who is the target market? How will they promote it?

Sources:  Jordan, M. (26 April 2022). The luxury car wash: Dog spa, hookah and even lamb chops while you wait. Wall Street Journal.

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