Omni Automotive Advertising Blog

I’ve been seeing a lot of movies recently (Dark Knight, Step Brothers, Wall-E) and I always arrive a few minutes before the movie starts, during the commercials before the other commercials section. It is during this time that I have seen the commercial below for the all new Kia Borrego, a luxury Kia SUV.

Now I like the commercial. I really do. I think it’s smart, funny and attention grabbing without being in your face.

What I don’t like is the timing. This is probably the worst time to introduce a new SUV into an already bloated sport utility market. I understand that this vehicle was in the works long before the gas and home crisises, so it is not the fault of Kia. Even the great Toyota made the ill-fated decision to dive into the big truck business at a bad time.

So, here’s the question… Can a good advertisement make up for a poorly timed product release? I don’t think so, but only time can tell.

In a previous blog, AOLs Best April Picks, we saw a list of great finance offers for April, as well as some green cars. Now lets focus on The Ten Least Expensive Cars Sold in the US by CarandDriver.com. As the article points out, in today’s tough economic times, when people are tightening their money belts, perhaps it’s time to look at less expensive, more fuel efficient vehicles. And inexpensive doesn’t always mean cheap when it comes to safety and reliability. So, here they are.

• 2008 Chevy Aveo
• 2008 Hyundai Accent
• 2008 Kia Rio
• 2008 Toyota Yaris
• 2008 Smart Fortwo
• 2008 Kia Spectra sedan
• 2008 Nissan Versa
• 2008 Suzuki Reno
• 2008 Hyundai Elantra
• 2008 Mazda 3

The Detroit News recently posted an article about Ford’s decision to enhance it’s certified used car program. Partially due to the recent slump in the economy, Ford’s decision should offset the decline in sales of new cars and trucks. Recent surveys by J.D. Power and Associates and Wachovia show overall demand for used cars, and for certified used-car sales particularly, is increasing.

The latest initial quality study commissioned by Ford shows the automaker in a statistical dead-heat with Toyota and Honda.

Toyota, which also saw a decline in new car sales, is also focusing on their certified used car plan to boost sales. Meanwhile, just announced, Toyota Motor Corp. beat General Motors Corp. in first-quarter sales by 159,000 vehicles, challenging the U.S. automaker’s 77-year reign as the global leader with gains in emerging markets that offset U.S. declines.

Ok, I understand that some car dealers are in panic mode. Car sales are off and the competition is tough, expenses keep growing, and you have to look hard at your financial statement. I understand there are a lot of tough decisions to be made, but what I do not understand is why some dealers cut back on service marketing and advertising that obviously creates traffic and makes them money.

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AutoNation, the largest U.S. auto retailer, announced a 31% fourth-quarter drop in profits . AutoNation Chief Executive Mike Jackson connects the drop in vehicle sales to the housing market problems in California and Florida, where AutoNation is headquarterd. In addition to the housing market issues, American have been delaying big purchases, all of which contribute to the 12% decrease in automotive retail sales.

Read more about this here, here, and here.