February 9, 2016
Automakers Opt For Less TV Time During Super Bowl
The Super Bowl was a little less sleek, sporty and horsepowered this year, reports Automotive News. The portion of advertising time devoted to promoting cars and trucks during the pro football championship game – TV’s most-watched event – was at the lowest level since 2010. That’s not necessarily a reflection on the auto industry, which is coming off a banner year with record sales and low oil prices. But it is a window into the shifting strategies of advertisers who are trying to grab the attention of an audience increasingly distracted by social media. Automakers have long loomed large over the big game, accounting for more than one-fifth of total ad time and spending almost $97 million in 2015 alone, according to Kantar Media. The industry that once led the trend of cinematic – almost epic – spots, has been decreasing its Super Bowl ad air time and investing more in social media, pregame buzz and other sponsorships. In 2012, 12 brands bought a total of 13 minutes and 30 seconds of air time. This year, nine brands bought a total of nine minutes. For more on why automakers decreased their advertising time during this year’s Super Bowl, click here.
VW Quality Chief Quits
According to Automotive News, Volkswagen named company veteran Hans-Joachim Rothenpieler as head of group quality assurance, replacing Frank Tuch, who held the job for six years and, according to sources, was suspended amid the automaker's emissions scandal. Tuch, 48, is leaving VW at his request to take on new challenges elsewhere but will remain an advisor to the group, the automaker said in a statement yesterday. Tuch was one of nine high-level VW managers put on leave late last year after the automaker's diesel emissions cheating became public. He has not been accused of wrongdoing and VW said it regretted his decision to quit. A former head of corporate quality at Porsche, Tuch was picked for the VW Group quality post by former CEO Martin Winterkorn after playing a key role in the sports car brand's rise to the top of the J.D. Power and Associates U.S. Initial Quality Study. Winterkorn wanted Tuch to help the VW and Audi brands boost their rankings in the closely watched survey, German media reports said at the time. For more on Volkswagen’s management changes, click here.
With a Healthier Economy, More Teens Are Driving Again
It’s been well documented that the number of teenagers becoming licensed to drive began free-falling about a decade ago to record low levels. However, reports Forbes, it seems the tide has turned, and young people are again getting their licenses in earnest and gaining vehicular independence in the process. A recent analysis conducted by the Highway Data Loss Institute in Arlington, Va., credits this reversal of fortunes to a recovering economy and the concurrent boost in teenage employment. In a study of insurance policy data, the Institute determined that while the ratio of teen drivers to prime-age drivers fell from 0.042 in 2006 to 0.038 in 2010 and remained constant through 2012, this ratio increased to 0.041 in 2014. This coincided with a drop in the unemployment rate for teenagers during 2013-14. “It seems like many teens really do want to drive after all, and much of the earlier decline in driving was due to the disproportionate effect of the economy on teen employment,” says HLDI vice-president Matt Moore. “When teenagers have jobs, they have more of a need to drive, along with money to help pay for it.” For the latest research on teen driving rates, click here.
Why American Drivers Have Stopped Buying Small Cars
It's like we just went back to 2000. In the mid-2000s, gas prices and environmental concerns deflated the robust SUV boom had dominated since the late ’90s. Suddenly, a Hummer or a Ford Expedition was considered gauche, or even an ethical liability, and small and hybrid cars began taking over. That all seems to be over right now, thanks to extremely low gas prices and the rise of crossover vehicles, reports Time. The casualty list of small cars is staggering. For the industry overall, however, this is a boon. Big cars have a higher profit margin than little ones. At the same time, continued strong sales for big, gas-powered cars stokes our reliance on fossil fuels, a habit that takes time to wean off. This is a cycle that’s happened before: After the 1970s gasoline crisis, fuel economy was suddenly a national concern, but once gas prices retreated this concern was quickly forgotten and the SUV became the standard. Small, fuel efficient cars will most certainly return to a heyday, however. If the circle has indeed been completed, we’ll come back to our little hatchbacks when gas goes back to $4 a gallon. For more on why sales of small cars have tanked, click here.
U.S. News Announces the 2016 Best Cars for the Money
Honda Motor Company earns the most awards in the 2016 U.S. News Best Cars for the Money awards, unveiled today by U.S. News and World Report. Covering 23 automotive categories, the awards highlight a single vehicle in each class that provides consumers with the best combination of quality and value. Honda's six awards – the most awards won by a single brand in the last five years – include Best Compact Car, Subcompact Car, and Minivan for the Money. "Honda continues to impress reviewers with the quality and design of nearly all of their products," says Jamie Page Deaton, managing editor of U.S. News Best Cars. "No matter what kind of car someone is looking for, a Honda is almost always a good choice." Chevrolet and Toyota each won three awards. Acura earned two. The 2016 awards are the first to include the rapidly expanding affordable and luxury subcompact SUV classes, with the Honda HR-V winning Best Subcompact SUV for the Money and the BMW X1 winning Best Luxury Subcompact SUV for the Money. For more on the best cars for the money, click here.
AutoTalk Webinar: The State of Play On Oil Prices
Prices for gasoline have fallen for 63 of the past 74 days resulting in a national average of $1.88 per gallon, their lowest levels since February of 2009. Listen to Zain Hak, Shell General Manager, Fuel Pricing and Demand Management; discuss some of the factors that are driving these low price levels, along with contributing supply and demand trends. What can we expect to see at the pump in 2016? Join us for more insight into pricing at the pump! To register for the 10:00 a.m. EST session, click here. To register for the 4:00 p.m. EST session, click here.
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