Apple is entering the automotive space. What does it mean for auto dealers?
Apple has been working hard to develop its own autonomous electric car since 2014. However, the project has not been very successful. In 2016 there were rumors that Apple would cancel the program. At the end of 2020, however, new rumors began to surface and in February this year, they announced their deal with Hyundai fell through. So, what is the situation now with Titan and how will Apple change car sales?
Delight of Tesla and fear of Google
The reason why Apple began investing in entering the automotive industry in 2014 was clear. At that time, Elon Musk had been successfully producing and selling the Tesla Model S for two years. It changed the “user interface” of cars, and in October 2014 introduced its advanced assistance system, somewhat optimistically titled “autopilot.”
But there was another, much bigger threat for Apple, and that was Google. Google has been secretly supporting the Pribot project since 2008. This project aimed to transform the classic Toyota Prius into a fully autonomous vehicle. Unlike with Apple, Google’s efforts for secrecy were so effective that the project only came to light on October 9th 2010, thanks to an article in the New York Times.
When legislation for testing autonomous vehicles was introduced in Nevada on March 1st, 2012, Google was one of the first companies to obtain a testing license. However, as it turned out, Google never sought to build its own vehicle. It was mainly concerned with technologies for autonomous management, which today fall under its daughter company, Waymo. It has also been testing these technologies in collaboration with Fiat Chrysler Automobiles since July 2020, more specifically for Ram ProMaster deliveries (also known as Fiat Ducato, Peugeot Boxer, Citroën Jumper, Citroën Relay), for which it will deliver level 4 autonomous control.
Renewed hopes for a new car
After an embarrassing start, when in 2016 it looked like the Titan Project would be put on hold, Apple really leaned into the development of the car again in 2018. During the summer of that year, it recruited Doug Field, a Tesla engineer, raising renewed hopes in an Apple vehicle. But in January 2019, bad news struck again – Apple fired 200 people from the Tital Project, apparently a fifth of all project employees. That didn’t bode well for the future of the Apple electric car.
However, in December 2002, there were reports that Apple was not only working on an autonomous electric car but had come up with new battery design that would save space, creating the potential to install batteries with a higher capacity and therefore, a longer range. It has also been announced that Apple is researching a new type of lithium iron phosphate battery, which does not suffer from the typical problem of Li-ion batteries overheating, thus making it easier to recharge quickly and providing increased resistance to peak consumption, such as in sporty driving. Batteries are the key to success in electric vehicles, which Tesla, who has been cooperating with the Japanese firm Panasonic, knows very well.
Cooperation with Hyundai/Kia is not likely
But batteries alone are not enough. Nevertheless, by the end of 2020 it began to look like Apple had much more. They announced discussions with the automotive manufacturer Hyundai/KIA on the topic of an autonomous electric vehicle. But by February 2021 that proved to be a thing of the past. The South Korean carmaker said the talks with Apple were concluded without an outcome and it was negotiating with other suppliers of technologies for autonomous systems – here it is appropriate to recall Google (Waymo) as a key player. However, the shares of Hyundai and KIA did not react to the Apple news very positively with Hyundai dropping 6.2% and KIA even 15% just that day.
Will we see an Apple car?
The key question thus remains whether we will see a car with an Apple logo in the near future. According to many speculations, it seems like we will. The launch date usually oscillates between 2024 and 2025. The important question is whether existing car manufacturers and dealers should be concerned.
But is the automotive industry so similar to the tech industry? Elon Musk showed that the rules of the game can be changed even on the car market. Apple’s talks with Hyundai/KIA also suggest that Apple may not even want to produce cars on its own. Maybe they will want to transfer their business model, where they play the role of a design studio, to the world of electric cars. However, the question remains as to what their sales and service would look like. The most likely option are their own branded stores. But we’ll have to wait a few more years for that.
Sources:
https://www.autocar.co.uk/car-news/new-cars/200-staff-axed-apples-project-titan-autonomy-project
https://www.macrumors.com/2020/12/21/apple-car-production-rumored-2024/
https://www.theverge.com/2020/7/22/21334012/waymo-fca-ram-delivery-self-driving-van
https://en.wikipedia.org/wiki/Waymo
Hydrogen propulsion is being pushed among luxury limousines; will it succeed against BEVs?
Hydrogen propulsion has been talked about for decades. Daimler has given up while Toyota, Hyundai, and Honda are just kicking it off. What makes it better than electric drive by batteries and what does the future hold? And why is Toyota’s CEO warning against electric cars and talking about a new sales model?
The luster and misery of hydrogen propulsion
Hydrogen propulsion is not so much propulsion in the true sense of the word. Even hydrogen cars (FCV) are electric cars and are powered by one or more electric motors. However, the main difference is where the energy for the electric motors comes from. While conventional EVs (electric cars) reply on energy storage usually in the form of Li-ion batteries and a simple electrochemical reaction, hydrogen cars rely on fuel cells. The principle, invented in 1838 by Sir William Grove, relies on a simple redox reaction between compressed hydrogen in the car’s tank and atmospheric oxygen and takes place in the car’s fuel cell. The “exhaust” is then just ordinary water.
A clear advantage of fuel cells over batteries is the stability of their capacity regardless of the outdoor temperature and the stability of their “charging” rate (replenishment of hydrogen in the tank) regardless of the outdoor temperature or the previous load of the fuel cell. The obvious disadvantages compared to batteries are larger size for the time being, and especially the lack of a hydrogen fuel station infrastructure. In the entire United States, there are only a few filling stations in California. Hydrogen technology is also clearly more expensive to produce. With the first generation of the Toyota Mirai hydrogen, which sold 10,000 units, Toyota reported lost $100,000 on each unit delivered.
Why hydrogen can be interesting
Akio Toyoda, president of Toyota, is currently the only high-level manager in the ranks of the major car manufacturers to oppose electric cars. And he has his reasons. Electric cars are becoming heavily dependent on the world’s lithium reserves. However, the consumer electronics industry, and, to a lesser extent, medicine (specifically psychiatry) also needs large amounts of lithium. Demand for consumer electronics is growing even faster than for cars.
In addition, more and more countries, including Japan, are beginning to face problems with the power grid. This is due not only to increasing consumption, especially on hot summer days, but also to an increase in the share of renewable energy sources. Countries that regularly experience blackouts, such as Australia, are building gigantic and expensive lithium electricity storage. As Toyoda mentions, soon there may not be places to charge electric cars. Another factor (or maybe the consequence of above mentioned) is the ever-increasing price of energy at charging stations. Even Tesla has long ceased to offer charging to its customers for free, which has begun to fundamentally change their total cost of ownership (TCO).
Hydrogen is being pushed into buses and the military
For hydrogen propulsion to gain the traction it needs to survive, it will need massive support not only from carmakers, but also from customers and governments. After all, sales of electric cars were kickstarted by massive state subsidies. And it’s slowly starting to happen. Hydrogen is becoming part of regular bus transport in the Netherlands, and part of the US military. GM Defense, the General Motors division supplying military vehicles, is preparing the new SURUS hydrogen autonomous cargo platform and has successfully tested the Chevrolet Colorad ZH2, hyrdogen fuel-cell, with the US army. Joe Biden has made it clear that after his arrival, America would fight climate change like never before, so hydrogen fits right in.
The business model of “selling” cars will change
However, with the availability of hydrogen cars, Toyoda talks about one more thing that is important for car dealerships. The head of Toyota says that with the advent of FCV, the sales model will significantly change. And the sales of the Mirai testify to this. The first generation, similar in appearance to the Prius, could only be rented, and while the new upcoming luxury Mirai sedan can also be purchased, the TCO will be incomparably higher than renting.
In addition, Toyota will apply its new business policy in France. There, through its French joint-venture, HysetCo, founded with French gas concern Air Liquide, it wants to get 10,000 Parisian taxi drivers to switch to the new generation of the Mirai. HysetCo approached this through the acquisition of Slota Group, a small Parisian taxi operator with 600 cars, which they will now replace with the FCV. A model in which the carmaker delivers its cars directly to customers would be a double dose of bad news for car dealerships. For the time being, however, FCV sales are focused only in select locations, such as Paris or California, where hydrogen filling stations exist.
Sources:
https://cleantechnica.com/2014/11/19/toyota-lose-100000-every-hydrogen-fcv-sold/
https://www.wsj.com/articles/toyotas-chief-says-electric-vehicles-are-overhyped-11608196665
https://www.abc.net.au/news/2018-09-27/tesla-battery-cost-revealed-two-years-after-blackout/10310680
https://www.greencarcongress.com/2020/04/20200415-solaris.html
An unexpected problem of smart cars – a computer component failure
When the Tesla Model S first appeared on the car market, it was as if it was out of a sci-fi movie. Surprisingly, it was not because of its electric drivetrain. After taking over Tesla (already from the Roadster model), Elon Musk began to put an enormous emphasis on the “user interface.” It paid off. However, now the NHTSA has discovered a serious problem. Computer components may not be suitable for cars. This may, however, be a great opportunity for car service centers.
A new trend with new risks
Elon Musk came to the automotive industry from the internet world. He therefore knew that the user interface, or more precisely the user experience, plays an absolutely critical role not only for overall user satisfaction, but also in the way that the user talks about the service or product. In other words, word-of-mouth marketing. This is how Tesla built its success. His vision at the time was to make a car that is as user-friendly as the iPhone.
When, in 2012, Elon Musk introduced a passenger car with a gigantic vertical display instead of the usual series of displays, buttons, and controls, it was a shock. The shock paid off and today everyone, including the new generation of the Mercedes S class, are copying this setup. For the first time, Elon Musk decided to use the relatively cheap and readily available components from existing mobile devices, and it panned out. Thus, a de facto new trend began, where formerly purely computer companies such as nVidia suddenly began to enter the automotive industry.
Computer companies took the automotive world by storm
The arrival of computer companies was marked by another key trend in which Tesla was a pioneer – advanced driver assistance systems (ADAS) based on artificial intelligence. nVidia joined this trend only recently, at the end of 2018, and was able to gain the best position in just two years, when last year it signed an exclusive agreement with Mercedes-Benz, a company with a history of safety since the fatal accident at LeMans in 1955. The Mercedes S-class was in fact considered the benchmark of new driver safety technologies until the entrance of Tesla.
According to the NHTSA, 158,000 Teslas have a serious problem
While nVidia’s collaboration with Mercedes and other key players is a rather recent phenomenon, with Tesla it was different. Its technology, specifically the nVidia Tegra 3 processor used in mobile phones and tablets, was an integral part of the “tablet” user interface or MCU (Media Control Unit) in the Model S from 2012 to 2018 and in the Model X from 2016 to 2018. From 2018, with the new generation of Autopilot and AI (artificial intelligence) from nVidia, other on-board electronics have also been replaced.
But now NHTSA has come across a Tesla pain-point, that Elon Musk probably didn’t anticipate. The nVidia Tegra 3 tablet and smartphone processor was supplemented with 8 GB of flash memory, which was quite a common thing for Android phones and tablets at the time. However, the lifecycle of a smartphone and a car varies quite significantly. And the flash memory used in conjunction with the processor can “survive” an average of “only” 3,000 read-write cycles, which, according to the NHTSA, is enough for 5 to 6 years of use – plenty for a phone, but not enough for a car.
In the US, the NHTSA has already registered a total of 12,588 incidents involving the MCU, which controls the built-in screen in Tesla vehicles. The agency is therefore considering a full recall, in which Tesla would be required to replace the flash memory in the MCUs. This could mean up to 158,000 cars.
What will this mean for the future of smart cars?
According to the director of nVidia, smart cars will make up 20% of the total passenger car market by 2030. Onboard systems with computer electronics and touchscreens will be far more common. However, manufacturers will have to start paying close attention to the components used. They will clearly have to meet one more criterion in addition to the SAE criteria for automotive electronics – overall lifespan. And with the advent of coronavirus, this lifespan is increasing. There are a number of countries where the average age of registered passenger cars exceeds 10 years, sometimes even 15 years.
And here we come to the great news for automotive service centers and possibly also car dealerships. It is quite probable that the Tesla Model S will not be the first and only car with modern on-board systems, which over time will struggle with lifespan problems, for example with memory, disks, and SSDs. However, unlike with a tablet or laptop, the replacement of these components is not so easy for users to arrange on their own. The time will come for service centers, for which the replacement of on-board electronics will be an interesting growth opportunity. For example, services can record the status of electronic components in their CRM and recommend customers a timely replacement during a standard service interval. At the same time, it is an opportunity for car dealerships to offer their own special options in the form of extended warranties for electronic components in the on-board systems. Are you prepared to replace computer components in your service center?
Sources
https://www.eetimes.com/nvidia-enters-adas-market-via-ai-based-xavier/
https://www.motortrend.com/news/tesla-model-x-s-nhtsa-screen-recall/
https://europe.autonews.com/automakers/nvidia-ceo-says-software-will-soon-define-car-drive-profit
Photo by Chris Ried on Unsplash
Google: Coronavirus has changed the automotive market. But in a different way than you might think
The fact that Google is looking into the automotive market is nothing new. Today, however, we will not be speaking about their efforts to develop autonomous vehicles, but about a total of 11 market surveys that they conducted during the coronavirus pandemic. The results of these surveys are critical for car manufacturers and dealers, and quite surprising.
Customers are already looking for something else in their cars
Google is primarily a search engine. For a long time therefore, it has observed trends in what its users are looking for. In the area of car sales, much has changed over the past year. Google has seen an 80% year-on-year increase in searches for “best car under,” and even a 200% year-on-year increase in searches for “nearest RV (caravan) rental.” The pandemic has reduced family budgets for the purchase of new and used cars, and at the same time changed travel conditions. Many people, rather than book hotels (which were often closed anyway), began looking to rent caravans for longer trips to the countryside.
The pandemic attracted new interest to the automobile
However, these are not the only changes that coronavirus has brought to the passenger car market. In a survey from May 2020, PwC noted that 77% of American consumers perceive commuting by public transportation as a health risk in terms of the disease. In addition, 30% of Americans that took a trip by car, did so just for a “change in scenery.” A completely new segment of customers began to emerge, not only in America, for whom public transport or taxis were not sufficient for their needs. They no longer wanted to risk infection and/or they wanted to travel somewhere further out of town to clean their heads from the persistent lockdown and working from home.
During the coronavirus pandemic, cars were sold differently
All of us can probably guess that last year, cars were sold differently than in the showrooms of car dealerships. But Google took the trouble to measure what changed. While for the whole of 2018, only 1% of car sales took place online, in the first half of 2020 already 1/10 cars were sold that way. The big surprise, however, was the fact that 73% of buyers fully accepted this channel, and were able to easily negotiate all the conditions, including financing, fully online. As many as 24% of buyers received a dealer offer for a test drive from home. 98% of them considered it important for their final purchase decision.
As car sales shifted to online during the lockdown, customer expectations also changed. As many as 65% of buyers expected more options when shopping online. This is due to a much more competitive and less geographically limited environment. Suddenly, the approach to customers began to play a more important role. In addition, for new customers, the complexity of the pre-sales phase has increased. On average, while previous car owners are considering between fewer than 2 different models, new customers are considering more than 3 different models. The dealership is not only fighting on its behalf but must also be able to sell a specific type of model which is currently in stock.
The way car dealers communicate with customers has changed
Last year it became clear that customer communication played a very important role in sales. And especially the electronic communication channels – advertisements, social networks, newsletters, etc. And the Google data shows why. Every searcher needs their own messaging. Personalized advertising showed an 11% higher intent to purchase and a 7% higher clickthrough rate. In addition, meaningful messaging was 31% more important to brand love and 28% more important to brand trust than people realized.
The key to success were narrowly targeted offers, for example to new parents, a customer group that from 2021 has begun to grow rapidly worldwide. In 2021, it is not a question of selling a specific model of a specific brand, but of being able to responds to the needs of a specific SUV customer who wants the most rear space, the best family SUV, or the safest mid-sized SUV.
CRM in car sales brings measurable benefits
The only chance to succeed in a significantly transformed market is to have an accurate understanding of your customers’ needs as well as more flexible, targeted, and faster communication than your competition. This is impossible without the use of professional CRM software for car dealerships. If you do not have the tools in your dealership that provide a comprehensive view of each existing and potential customer while being able to incorporate data from social networks, you will have a problem in 2021. Google research has clearly shown that an investment into a tool like Automotive CRM from Konica Minolta, will pay off.
Sources
Think with Google, Rider to Driver Auto Trends 2020, https://www.thinkwithgoogle.com/consumer-insights/trending-data-shorts/rider-to-driver-auto-trends
Cars are starting to be dominated by software; will it be a new business opportunity?
Not so long ago, a new function could be added to a car just by having it installed by a service technician, such as parking sensors. However, with the advent of the Tesla Model S, the situation began to change. Cars have begun to acquire new features gradually, and they can be upgraded similarly to mobile phones or your TV. Traditional car manufacturers are now moving in the same direction. But what does this mean for car dealerships and services?
Tesla changed the rules of the game
The arrival of the Tesla Model S in 2012 literally revolutionized the automotive industry. However, it did not take place only on the vehicle side. The Model S came with a completely unknown phenomenon in the automotive industyr. Elon Musk, an “IT geek” brought to the world of cars something that was previously reserved for only smartphones and computers – his cars were suddenly able to acquire new, and often very attractive features, only thanks to software updates. As with smartphones, it is downloaded to cars via OTA (Over-the-air) updates, directly through a wireless internet connection. And so the on-board camera, the green traffic light warning, improvements to driver assistant systems, which Tesla calls Autopilot, and much more gradually appeared in the Model S. As more and more interesting features have increased over the years, so has the pressure on the competition.
Software access has moved from the computer to the automobile
However, the others could not react for many years. Why? The logic of their onboard systems was different. Whereas Tesla used a single computer for all key functions, from Autopilot, through pedal response control, to infotainment, other manufacturers opted for an architecture consisting of separate control units and independent infotainment, which often varied depending on the specific equipment level. But with the advent of intelligent assistance systems, this began to change. These systems need sufficiently strong and robust hardware and by definition are interconnected to the car’s onboard systems. In addition, technology that meets automotive industry standards has become widely available. The key role was taken over by the company Nvidia, whose platform Drive, has gradually made its way to Daimler, Toyota, Volkswagen, Hyundai, and Volvo in recent months, where it will cover systems and at least partial autonomous control.
From graphics cards to the onboard systems of the S-class
The first tangible results were not long in coming. Mercedes-Benz revealed in September 2020 that the upcoming seventh generation of its flagship would be able to expand its functions remotely. However, unlike Tesla, this will not be offered for free. While the abilities of the autonomous steering systém (SAE class 3) will be improved automatically based on new data for Nvidia’s onboard AI, customers will have to pay for new functions.
Mercedes, who is not alone in this, wants to open up the possiblity of direct upselling in the future, i.e. additional sales uplift for a given customer. However, it can be expected that dealers will also play an important role in these upsell activities, especially for fleet sales. After all, the transition to a new version of Microsoft Office is usually handled by a Microsoft partner, not Microsoft itself.
Who will care for the car software?
Velmi důležitou otázkou je také, jak bude vypadat vlastně ono rozšiřování funkcí na dálku, případně správa a údržba čím dál komplexnějšího software. V současné době jej provádějí servisy, a to včetně aktualizací software pro infotainmenty, řídicí jednotky motorů apod. Lze předpokládat, že ani s inovovanou architekturou aut, se část aktualizací bez servisů neobejde. Navíc, stejně jako v případě počítačů, telefonů anebo Tesly, ne každá aktualizace proběhne bez problémů.
Starost o software aut a přidávání nových funkcí tak bude do značné míry přenesena na dealerství a servisy. To je ale nová, velmi zásadní a patrně i lukrativní příležitost. Na rozdíl od prodeje fyzického příslušenství jako jsou koberečky a střešní nosiče vám totiž neváže ani finanční prostředky, ani místo ve skladu. Jen to bude vyžadovat nové prodejní dovednosti, nový přístup k zákazníkovi, a hlavně novou kategorii informací o každém servisovaném vozu a potřebách vašich zákazníků. Jste na novou kategorii prodejů připraveni? Počítáte s tím ve svém obchodním procesu? Využíváte nějaký specializovaný CRM software jako například Automotive CRM , který vás v příchodu nové obchodní příležitosti podpoří?
A very important question is also what the expansion of functions or the administration and maintenance of increasingly complex software will look like. Currently, this is performed by vehicle services, which also update software for infotainment, engine control units, etc. It can be assumed then, that even with innovative architecture, some partial updates will need to be performed at the service center. In addition, as with computers, phones, or even Teslas, not all updates go smoothly.
Concerns about automotive software and the addition of new functions will thus be largely transferred to dealerships and service centers. This is a new, crucial, and likely lucrative opportunity. Unlike the sales of physical accessories, such as carpets and roof racks, it does not require financial investment or even space in the warehouse. It will only require modified sales skills, a new approach to the customer, and most important, a new category of information about every serviced vehicle and the needs of your customers. Are you ready for this new sales category? Are you planning with it as part of your sales process? Do you use some kind of specialized CRM software such as Automotive CRM, which will support you in the arrival of a new business opportunity?
EV Revolution?
3 reasons why you might not need to sell electric cars
The McKinsey EV index shows that sales of electric cars increased by 65% in 2018. But last year, dealers showed sales of electric cars rising by onl y 9% more year-on-year, and in the first quarter of this year, even before the coronavirus crisis, sales of electric cars fell by 25%. And it will get worse. What is happening with the electric car market and why do people suddenly not want them?
Sales built on government subsidies
One of the main reasons why electric cars are starting to lose their momentum is a decline in subsidies. A typical example is Norway, a country with a huge landmass, low population density, and enormous distances between cities. The most electric cars are sold in Norway out of all of Europe.
Norway has been systematically promoting electromobility since 1990. During that time, it prepared a wide range of various incentives, which, however, made the purchase of an electric car economically beneficial the end consumer. In short, an electric car often has a lower TCO than a similar car with an internal combustion engine. The success of this strategy is also evidenced by the fact that in April 2020, 10% of vehicles on Norwegian roads were purely electric.
Tools to support EV sales included zero import duties, zero VAT on purchases and leasing, zero annual registration tax, zero tolls, zero or reduced ferry fees, free parking in cities, access to bus lanes, and reduced taxes for companies. However, some of these benefits have already been canceled or reduced by the Norwegians. In some cities, it has even become problematic to park a car with an internal combustion engines. And government support is changing even in other countries. An example is Hong Kong, a former exhibition of electromobility, where a significant reduction in government support for EVs in 2017 literally killed all sales of electric cars, especially Tesla, which had an 80% market share.
Tesla is a seller of user experience, not electric cars
It was Tesla who became a symbol of electromobility, although it has still failed to reach the first place in EV sales. According to JATO Dynamics, it has long belonged to the strategic alliance of Renault-Nissan-Mitsubishi. But Tesla does not owe its success to the chosen drivetrain. Its popularity is based on a completely different, and at the time, innovative user interface, on the user experience, when the car acquires new functions even after its purchase. And in recent years also on Autopilot. That is, on the relatively average set of assistance systems that are now offered by a number of other car manufacturers. Only Tesla can sell them much better. However, Tesla’s marketing also seems to have convinced a number of carmakers that the future must be electric. But sales numbers don’t show that, and in recent years there have been more and more pitfalls around EVs.
Where should I charge my electric car?
The main pitfall is already being shown to be charging. By this we do not mean the length of charging time, but rather the lack of charging points and the blocking of charging stations by cars with internal combustion engines or unruly EV drivers. The problem with charging stations is even more complex. The bottlneck is the electrical distribution network. Modern 350 kW and soon even 1200 kW charging stations need adequately dimensioned high-voltage distribution and, of course, energy sources.
Eco-EV myths
And this is where electric cars take a hit for a second time. It turns out that the illusion of zero CO2 emissions is really just an illusion. One after another, studies are showing that modern diesel or gasoline engines actually produce much less CO2 than EVs. The amount of CO2 / km produced naturally depends on the structure of energy sources. In India, EVs produce 370 g CO2 / km, in China 258 g CO2 / km and in the United States, 202 g CO2 / km. In France, where they have the highest share of nuclear power plants, their EVS produce “only” 93 g CO2 / km. Just a reminder – the limits set by the EU regulation EC 443/2009 for next year are 95 g CO2 / km. And when it comes to ecology, the issue of lithium, its mining and recycling cannot be avoided. And even that is now being addressed more and more. Does it matter thatWell, maybe in the next 10 years it won’t matter at all…
Sources:
https://europe.autonews.com/sales-segment/europes-no-1-selling-ev-isnt-tesla-or-vw
https://en.wikipedia.org/wiki/Plug-in_electric_vehicles_in_Norway
https://electrek.co/2017/02/22/hong-kong-electric-vehicle-incentives-tesla/
https://electrek.co/2018/02/28/hong-kong-electric-cars-incentives-tesla/
https://www.teslarati.com/tesla-supercharger-station-becomes-an-ice-parking-lot/
https://insideevs.com/news/347476/350-kw-12-mw-fast-charging-ess-norway/
http://shrinkthatfootprint.com/electric-car-emissions
Photo by Ralph Hutter on Unsplash
“Let your heart beat faster” or how not to advertise a car
The whole world knows about the ad for the new Audi RS 4. However, this is not due to the qualities of the car. The Audi brand has escaped relatively unscathed. However in the hands of dealerships, such advertising could have catastrophic consequences. How do you actually make a good advertisement, and what should you watch out for?
Just a bit of a pedo-feeling
“We sincerely apologize for this insensitive image and ensure that it will not be used in future. We will also immediately examine internally, how this campaign has been created and if control mechanisms failed in this case.”
Audi is eating a humble pie for their advertising campaign with a four-year-old defiant girl in a mini dress, dark glasses, and a large banana in her hand, leaning on the front of an Audi RS 4. All that with the title “Let your heart beat faster – in every aspect.” Audi was apparently referring to the fact that: “The Audi RS 4 is a family car with more than thirty driver assistance systems including an emergency brake system,” which incidntally will be required on all new vehicles in the EU from May 2022. However, it seems that the public, at least the one on Twitter, saw this advertisement as more of an attempt to transform a tiny girl into a kind of sexual symbol. This sparked an unprecedented wave of resentment. At first, Audi tried to “put out” the situation, by releasing an apology only 26 hours after publishing the advertisement.
We hoped we could convey these messages, showing that even for the weakest traffic participants it is possible to relaxingly lean on the RS technology. That was a mistake! Audi never intended to hurt anyone’s feelings. (2/3)
— Audi (@AudiOfficial) August 3, 2020
However, part of the public does not understand what is actually happening at all, because they do not see any phallic symbol in the banana and do not perceive a girl wearing certain clothes and posing as an adult as sexual. This is probably also the reason why this ad passed through Audi. No one realized another possible interpretation of what someone internally presented as the communication concept of the Audi RS 4 as a family car.
Advertising that can destroy you
In the days of coronavirus and the coming crisis, this exorbitance will be forgotten as quickly as it arose. For Audi, which produces almost 1.9 million cars a year, this is unlikely to have any economic consequences. But if it were to happen to a dealer, the consequences in the local market could be fatal. The dealership will get negative publicity for its target group, and the importer will be doubly unenthusiastic about the move. Regardless of whether he had previously approved the ad or not. So the first piece of advice is – show your ad to someone “on the street”. Someone who is unfamiliar with the creative process and who is ideally outside your target group. To be fair, most Twitter commentators in this case were also not high-performance Audi owners.
Three things to watch out for when advertising
This is certainly a question that many advertising agencies ask themselves. In reality, however, the preparation of an advertising campaign may not be as risky as it may seem in the light of Audi’s slander. Just follow three simple rules:
- Do not sexualize children, not even teenagers. People who have children of the same age will always be very sensitive to this.
- Don’t sexualize women. Yes, it is still true that sex attracts attention. But it no longer has to be true that it sells as well. Moreover, that interest has long been no longer positive. Sexism is not in. Photoshopping women in advertisements is no longer in. The former is awarded national and international sexist anti-prizes, and the latter is the subject of a number of influencers around the world. After all, women also buy cars, and not just family ones. So you do want to attract women with advertising, just not offend them.
- Forget about “funny” double meanings. As much as someone may like it, part of the audience will always be offended. Maybe also because they do not understand the joke straightaway.
Take advantage of the mistakes of automakers
And is there any guide on how to guarantee a “good” advertisement? Yes, just learn from the mistakes of automakers. There are highly rated ads, such as the one from Porsche. And sometimes you can use that disgrace to your advantage. More than one Audi dealer started offering free bananas with a purchase. Those who hate the advertising with a girl see this as a mockery of Audi. Those who do not see anything wrong then can make fun of those who find it offensive. And the dealers? They just make money on it…
