On Tuesday August 23^rd, Toyota unveiled the redesigned 2012 Camry via live webcast and a live Twitter chat session. This is the 7^th generation Camry, which is a front-drive, four-door, mid-size sedan. The Camry has been America’s top selling car for 13 of the past 14 years, and Toyota is hoping to maintain that title with this “reinvented” model. Toyota can also boast that this new model is the most American-made car. It is manufactured entirely in North American plants in either Kentucky or Indiana, and more than 80 percent of its parts come from American suppliers. Perhaps this will be a key selling point in upcoming marketing communications.

While critics have already come out to say that the new design doesn’t set it apart from previous models on the outside, it’s the inside changes that Toyota is hoping will attract renewed attention. One exciting update is the optional Entune telematics system, a similar system to OnStar, which uses your phone’s data capabilities to connect the car with the cloud, and can be controlled through voice commands or the touchscreen. Entune comes with three years of free access to services such as fuel guide, sports scores, stocks traffic and weather and it is anticipated to include mobile apps for Bing, OpenTable, Pandora and more. Another big change in the 2012 Camry is the gas-electric hybrid option. According to Toyota, the new hybrid system is more powerful than before, promising 0 to 60 in 7.6 seconds, which relatively fast compared to other hybrid options on the market.

The 2012 Toyota Camry is expected to go on sale this October for the gasoline models and in December for the gas-electric hybrid models. According to Toyota the four-cylinder models and hybrids are going to be priced less than the 2011 models, but the V-6 prices will remain the same. The LE with four-cylinder gas engine — the version most people are expected to buy — has an anticipated price tag of $23,260, including $760 shipping. While the top-of-the-line XLE with V-6 will start at $30,605. The new LE hybrid model will start at $26,660 and the supped-up XLE hybrid will be $28,160.

Many P&C insurance carriers now offer some kind of Roadside Assistance Program — you get access to a 24/7 Nationwide Roadside Network in case you have a flat tire, dead battery, lockouts, empty gas tank, etc. Some have no annual fee. I found that auto insurers generally offer cheaper roadside plans than those of motor clubs, (i.e., Motor Clubs plans offer more full service plans for an annual charge — mine was $86/yr). I recently dropped my Motor Club policy once I realized that my Auto insurance policy will now offer Roadside assistance. My speculation is that a lot of you will do the same when your Auto carrier announces they now offer this, too. Why are carriers being so generous? Or are they?

Now for the $64 question: Will one of these roadside assistance claims eventually go on the insurers’ record? It’s not out of the question to be concerned that multiple claims for roadside assistance may cause the insurance company to raise rates or maybe even decide whether or not they want to retain a customer.

So I followed my hunch, researched my thoughts and it was confirmed. I found that car insurance companies report roadside assistance claims to ChoicePoint (a company in Georgia that collects claims information for the auto insurance industry) and using it too much may increase your rates, (see below).

“Using an insurance company’s roadside assistance or towing benefits too often could affect your rates or even your eligibility for coverage. Some auto insurers consider your calls for roadside assistance to be negatives, just like accident claims. One of the nation’s largest insurer says the use of roadside assistance is a very small factor in calculating rates or considering a driver’s insurability. Some insurers report roadside assistance calls made under their policies to ChoicePoint, an Alpharetta, GA. company that compiles claims information for the insurance industry. Other carriers say they report the information but don’t use it in their policy decisions. Another carrier says it doesn’t report usage by members of their Motor Club, but it does report towing claims made under its insurance policies” (Source: ConsumerReports.org)

As my mom always told me “nothing in life is free.” While these programs are great and can get you out of a bind if your car ever breaks down – be aware that there may be hidden risks/gaps in these programs. The consumer may pay by occurrence in some cases and may even pay the ultimate price of increased rates or drop of coverage if the utilization exceeds a certain level. My policy has this program and I’m grateful for it as we ran out of gas on a family trip recently. The Calvary came within 30 mins and we were be back on our way Disney to see Mickey and his friends…

Let me know your thoughts or comments…

The summer driving season is upon us. What is it about slipping behind the wheel that drives Americans to the open road? For me, trips to the beach, weekend getaways, or a ride down Lake Shore Drive on a sunny day is enough to make me hunt down my car keys.

Given that the entire country takes to the streets during the warmest months, and there’s always an increase in gas prices around Memorial Day – how will driving trends be affected in the wake of unrest in the Middle East and the tragedy in Japan? Experts are already forecasting high gas prices for the summer, on top of recent increases. Here in Chicago, the cost of regular unleaded gas is already hovering dangerously near $4/gallon. Budgetary concerns could very well curtail my summer driving.

I do own my car, and being free of a car payment feels like a luxury. But I’m reminded almost daily of the other costs associated with owning a vehicle. Sometimes I wonder if car sharing is the way to go, considering the cost of insurance, city parking stickers, license plate fees, etc. All those costs are covered by the car sharing membership and usage fees. It seems like a sweet deal and a nice perk of living in a major metropolitan area. As car sharing companies promote more hybrid and electric vehicles, will their membership levels increase as summer approaches?
Of course there are caveats to everything: possibly dirty cars or being without a car in case of an emergency, but on the whole – car sharing programs do appear to be a valid option for city dwellers who like the convenience of driving but not the headaches of finding parking (I can count myself among the latter).

Readers, what are your thoughts? At what price per gallon would you be more likely to switch to a car sharing program?

Honda, Toyota, Nissan and Subaru – reliable and affordable. Japanese carmakers (through the miracle of integrated supply chain management) have built the cars that people feel safe in and don’t break the bank. The recent tragedies in Japan may have a much larger impact on the automotive manufacturing industry than several weeks of limited production. These companies are truly global and built on complicated production and logistics processes that get us our cars (and most of our electronics) “just-in-time,” with few wasted raw materials or fuel, and almost no need for inventory storage. Even though Japanese carmakers have plants all over the world, a lot of those complicated bits are still built at home. Slowed production in Japan slows production everywhere. Regardless of short-term supply interruptions, people still demand Japanese cars.

With so many plants around the world, these companies can ramp up production in alternate locations (even the Prius is now being built in Thailand and the U.S.) to meet current demand. Through practice and ingenuity, they know how to open new plants for new models and parts in short(ish) order. Plants in Japan are already starting to build again, but, in the medium term, will the carmakers who flourished through flexible manufacturing models continue to build so much at home?

Maybe not:

•  Re-tooling an auto plant is a complex and difficult task – after setting-up other locations carmakers may not want to reverse the process and bring production back to Japan.
• A forward-thinking company may not want to reopen plants in places where there may be a risk of a tragedy repeating. Like American property and casualty insurance companies fleeing Florida, Japanese carmakers may not want to risk their plants and employees.
• And finally, building a car uses a lot of electricity. The price of electricity in Japan is about to go up. Almost 30% of Japan’s power was supplied by nuclear power plants in 2010 (IAEA – PRIS). After the size of this tragedy, popular opinion is shifting against nuclear power. Building new alternative facilities, importing more power, or living with lower supply is going to be more expensive. Carmakers may shift more production abroad because they don’t have a choice.

What effect would increased international production of Japanese cars have on the automotive manufacturingindustry?

In 2010, 38% of new cars bought in the U.S. were Japanese (Ward’s Auto). If even more cars were produced in the U.S., would Japanese cars capture an even greater U.S. market share? Would shifting production to their secondary markets lead to dominance in those markets as well? Could we see ‘80s style growth again? Japanese carmakers have proved smart, innovative and flexible; how they bounce back from a national tragedy might turn them into the local giant in every market.

For the past three months, I have begun to walk, bike, bus, and train my way to the office. So far so good, considering I spent three hours a day in the car commuting to and from my former job. The transition wasn’t easy considering I was completely dependent on my car for the past three years. But, I can now say I am officially reliant on other means of transportation.

Because of this, my Jeep has stood still for 5 weeks and counting. So I ask myself…why should I be paying for parking and auto insurance if I don’t even use my car?

The Jeep is paid off, but between a monthly parking fee of $150 and a monthly auto insurance cost of $100, I am pushing $3,000 a year on car expenses. With minimal options for parking in Chicago, parking companies have the ability to charge outrageous prices for monthly parking. So that brings me to auto insurance…Is there a way I can cut my cost without cutting my insurance coverage?

Before my research began, I contacted my current auto insurance provider to see if they could help answer some of my questions. My current auto policy has a short mileage rating factor calculated into my premium, but every policy holder that drives under 30 miles a day is given this rate reduction. What about somebody like myself who drives once a month? A person with my driving frequency and habits has a much lower risk of a claim, so why isn’t this reflected in my auto premium?

I’ve seen advertisements promoting “name your price” auto insurance, but as I said, I don’t want to be underinsured. Are there any other discounts or options in the marketplace that reward lower risk consumers by minimizing their insurance cost?

I begin my quest, and will follow up with my findings…

The Chevy Volt! Motor Trend Magazine has named the Chevrolet Volt as the 2011 Motor Trend Car of the Year. I’m not even a car enthusiast and I found this interesting.

This car of the future is the industry’s first “electric vehicle with extended-range capability” and is scheduled to be available in the United States as early as next month. A true hybrid, the Chevy Volt uses electric and gas power but gets plugged in to charge the battery.

Experts are saying it can go as far as 40 miles on just battery power alone. There is of course a lot more science behind this unique vehicle, such as a lithium-ion cell battery and a liquid thermal cooling and heating system. And it’s no surprise it was a Motor Trend winner with an overall fuel economy of 72.9 miles per gallon. According to Chevrolet’s website, the average person’s commute in the Volt will cost around $1.50 per day – that doesn’t even buy me a Pumpkin Spice Latte!

Chevrolet, a brand owned by the General Motors Company, is in recovery mode now after receiving a $9 billion government bailout at the end of 2008, only to be forced into bankruptcy by spring 2009.

The old General Motors brand was recreated into the new General Motors Company and seems to be doing well enough. As word has it, the new GM will soon be looking to sell some of the government’s majority stake in the company (61%).

Perhaps this industry-changing new vehicle will be the boost the company needs to put itself back on the map. The starting price of the Chevy Volt is expected to be around $32,780, but the savings in gas make it more than a great deal. This is certainly the kind of car that could get me more interested in cars.

As a follow up to my blog post from June 21, 2010 about Ford’s decision to discontinue the Mercury brand and focus on making Lincoln the luxury brand for Ford Motor Company, I thought I would provide more details about the company’s future plans.

Ford announced that it has set a meeting with its Lincoln dealers for October 4, 2010, with the purpose of providing dealers more information on how the company plans to phase out Mercury and direct focus to the Lincoln brand. The company’s spokesman stated that the meeting “will be a Lincoln update. It’s more about giving dealers a look how Ford will now work with Lincoln as an exclusive, luxury brand.”

Hopefully, this meeting will help address the current concern dealers have about how they are going to survive when the Mercury brand is completely phased out, especially for the 264 Lincoln-Mercury dealerships currently in business (based on a most recent data). Those dealerships depend on the sales of Mercury vehicles to remain profitable. Because of this, many dealers are leery about the ability to survive solely with the Lincoln brand.

Also, ongoing discussions are taking place about compensation to be made to Mercury dealers. Ford Motor Company hopes compensation payouts will avoid any legal battles down the road. However, since those discussions are still in the works, many Lincoln and Lincoln-Mercury dealers are in the dark about Ford’s short-term and long-term plans.

Do you think Ford is doing enough to provide comfort and security to its dealers? What other concerns do you think might be out there for the dealers? Do you think the business plan to eliminate Mercury and focus on Lincoln is still a good idea (or bad idea for those who didn’t buy into the business decision in the first place)?

I’m sure Toyota executives were relieved when the focus and scrutiny of the American public shifted away from the Japanese automaker to other “newsworthy” issues in recent months (the Gulf of Mexico oil spill jumps to mind).

After the fallout of safety concerns, Toyota implemented an aggressive marketing plan to regain the loyalty of past customers and to prove to the American public that it is focused on safety. Toyota began to reassure consumers of the safety of its vehicles, with recent marketing that revolves around steps it has taken to improve the safety experience. The marketing campaigns also note the safety accolades Toyota’s vehicle line-up has accumulated. The company seemed to be on the path of recovery, and out of the spotlight.

But unfortunately, it seems like the company’s troubles may not be over. Toyota recently announced a voluntary recall of over 1.1 million Corolla sedans and Matrix hatchbacks because of a “defective engine module.” There have been three accidents and one minor injury reported, but Toyota has not confirmed that these problems were caused by the faulty engine module.

Toyota has been plagued by quality issues for almost a year, with more than 10 million vehicles being recalled since October 2009. Do you think this recent move will continue to tarnish the company’s image? Or do you think this approach will help rebuild loyalty since Toyota has been quick to respond before a widespread problem? How does this announcement affect the company’s past efforts in improving its quality image?

Please visit Toyota.com to learn more about this recall.

As we come close to the introduction of the Chevy Volt, individuals who have been putting off the purchase of a new car in order to get one of the first electric cars available to the public may have to wait even longer.

GM recently announced that it plans on producing 10,000 Chevy Volts in 2011, with plans to increase production to 30,000 in 2012.

According to the blog GM-Volt.com, there are 53,000 potential buyers who have shown interest in purchasing a Chevy Volt, meaning that demand for the new car far outstrips supply at the moment.

It appears that GM’s approach is one of caution, which I think is a calculated move as the company enters uncharted territory. The company needs to ensure that dealerships have been educated and are prepared for a new set of questions and potential issues related with a new car, even if they will have few to sell at first.

However, do you think that GM could be too cautious? What happens if one of its competitors announces a similar product, causing individuals to wait instead for that release? Nissan already plans on producing more Nissan Leafs during the first year of production than GM. Could GM’s caution be the company’s Achilles heel?

Further evidence that the “Great Recession” has had a significant effect on consumer behavior:

– In a recent Mintel consumer study, a substantial 76% of respondents state that they are “smarter shoppers” than they were a year ago.

– Almost seven in ten say they are trying to buy only necessary items, such as food (and that last number includes about half of those households earning more than $100k annually).

But price is not the only consideration. Only half of the consumers in the survey say that low price is more important than good customer service, while seven in ten say they only buy brands they trust.
What does this mean? It means that the definition of “smart shopper” is not just about price, it is more and more about value. And the concept of value has been extended to include trust in the brand, as well as good customer service.

These numbers look very much the same as they did a year and even two years ago, when the recession was just beginning to alter consumer behavior. This means that consumers are settling into a “less is more” mindset, while expecting more from their brand and shopping experiences.

Anyone in Financial Services (along with other industries) who is not conducting branding studies and consumer experience research should probably take note.