A Really Bad Marketing Idea

You can almost picture the scene: a group of automobile executives meeting in a lavishly appointed meeting room to discuss dramatically flagging sales. As impeccably dressed as they are out-of-touch, they seek to find fast answers to declining demand for huge – and hugely profitable - SUVs.

Average folks like us might guess the conversation might turn toward shifting production to smaller, more fuel-efficient cars. But no, this group of geniuses decides that bribing people with artificially low gas prices is the best solution.

That’s right, one of America’s “Big Three” automakers has a program that guarantees gasoline at $2.99 per gallon (with - of course – a number of restrictions).

Don’t get me wrong, I understand the need to reduce existing inventories until the product line can be shifted to reflect car buyers’ changing priorities. It’s just that the messaging is so very, very wrong. To me – and I suspect plenty of others – it says “Go ahead, waste fuel like there’s no tomorrow, we’ve got your back.”

I don’t claim to have any answers to fix the sad state of affairs that mires the domestic automobile industry. I do feel reasonably sure it’s going to take more than – please forgive the business cliché – putting some lipstick on the pig.

-Jim Katz