Ad Spend Well Spent, Decline In Reliability, Fisker’s Quality Issues

02/13/24 • 13 min

We’re rolling into Tuesday talking about some impressive ad results for some automakers after the big game. We’re also talking about JD Power’s latest report showing a dip in quality as well as Fisker’s specific quality challenges.

The numbers are in...after the auto industry’s Super Bowl commercial showing VW, Kia, Toyota and BMW ads for their latest EVs drove a notable surge in online interest, with VW's nostalgic journey capturing the most attention.
- VW's ad, celebrating 75 years in the U.S., topped search traffic increases on Cars.com, Autotrader, and Kelley Blue Book. The ad that tied the development of VW with the development of America earned the third highest engagement among all advertisers
- VW accounted for 69 percent of all search activity after the big game, followed by 15 percent for Kia, 10 percent for Toyota and 6 percent for BMW
- Search for the ID Buzz increased 13x on Kelley Blue Book
- Both Kia and VW made it into the top 10 list for all Super Bowl ads
- Brian Moody, executive editor at Autotrader and Kelley Blue Book said, "Volkswagen specifically has woven their vehicles into the tapestry of the American experience...They not only captured that sentiment, but used it to introduce VW and the ID Buzz to an entirely new generation of drivers."
The latest J.D. Power study reveals a declining trend in vehicle dependability, as vehicles experience more problems in their first three years.
- The 2024 study reports an increase in vehicle problems to 190 PP100, with nearly two-thirds of brands showing more issues that previously
- Infotainment systems are the most problematic area, with connectivity and voice recognition leading in complaints
- Electric vehicles, including battery electric and plug-in hybrids, report more problems than gas-powered and traditional hybrids
- Lexus, Toyota, and Porsche lead in dependability rankings, with Toyota vehicles winning the most model-level awards
- "A deterioration of vehicle dependability is unusual," noted Frank Hanley, J.D. Power's Senior Director of Auto Benchmarking
Fisker's all-electric SUV, the Ocean, has been plagued by reports of sudden power loss, braking issues, and other technical problems since its launch, challenging the company's quality assurances and customer service capabilities.
- Fisker Ocean owners have reported over 100 incidents of sudden power loss, with issues extending to braking problems, glitchy key fobs, and hoods flying open.
- The National Highway Traffic Safety Administration is investigating the braking issues, which Fisker claims have been resolved through software updates.
- Despite these challenges, Fisker delivered around 4,900 Oceans in 2023 but faces customer lawsuits and growing complaints about vehicle quality.

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The numbers are in...after the auto industry’s Super Bowl commercial showing VW, Kia, Toyota and BMW ads for their latest EVs drove a notable surge in online interest, with VW's nostalgic journey capturing the most attention.
- VW's ad, celebrating 75 years in the U.S., topped search traffic increases on Cars.com, Autotrader, and Kelley Blue Book. The ad that tied the development of VW with the development of America earned the third highest engagement among all advertisers
- VW accounted for 69 percent of all search activity after the big game, followed by 15 percent for Kia, 10 percent for Toyota and 6 percent for BMW
- Search for the ID Buzz increased 13x on Kelley Blue Book
- Both Kia and VW made it into the top 10 list for all Super Bowl ads
- Brian Moody, executive editor at Autotrader and Kelley Blue Book said, "Volkswagen specifically has woven their vehicles into the tapestry of the American experience...They not only captured that sentiment, but used it to introduce VW and the ID Buzz to an entirely new generation of drivers."
The latest J.D. Power study reveals a declining trend in vehicle dependability, as vehicles experience more problems in their first three years.
- The 2024 study reports an increase in vehicle problems to 190 PP100, with nearly two-thirds of brands showing more issues that previously
- Infotainment systems are the most problematic area, with connectivity and voice recognition leading in complaints
- Electric vehicles, including battery electric and plug-in hybrids, report more problems than gas-powered and traditional hybrids
- Lexus, Toyota, and Porsche lead in dependability rankings, with Toyota vehicles winning the most model-level awards
- "A deterioration of vehicle dependability is unusual," noted Frank Hanley, J.D. Power's Senior Director of Auto Benchmarking
Fisker's all-electric SUV, the Ocean, has been plagued by reports of sudden power loss, braking issues, and other technical problems since its launch, challenging the company's quality assurances and customer service capabilities.
- Fisker Ocean owners have reported over 100 incidents of sudden power loss, with issues extending to braking problems, glitchy key fobs, and hoods flying open.
- The National Highway Traffic Safety Administration is investigating the braking issues, which Fisker claims have been resolved through software updates.
- Despite these challenges, Fisker delivered around 4,900 Oceans in 2023 but faces customer lawsuits and growing complaints about vehicle quality.

JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/

Previous Episode

Used EV Pricing, Rivian’s Pricing Adjustments, A Waymo on Fire

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It’s Monday and now that the Superbowl is over, we can get back to the real game! Today we are talking about more shifting dynamics in both the new and used EV segments. We also talk about a rather fiery incident involving a Waymo vehicle in San Francisco.

At the NADA Show we heard all types of conversations around EVs as the volatility of the entire segment is real. Let’s talk about the used market first.
- With prices heavily influenced by fluctuations in new EV pricing, the used market has seen a sharp drop of around 30%. Despite a small market share, used EVs are becoming more accessible. Franchise dealerships sold around 180,000 used EVs in 2023, less than 1% of the market.
- Price adjustments in new EVs and government incentives are expected to further drive down used EV prices as well as the addition of affordable new EVs later this year
- The federal tax credit, under the Inflation Reduction Act, is offering up to $4,000 for EVs at least two model years old and under $25,000. With Hertz recent decision to liquidate one third of its EV fleet, a flood of eligible Tesla’s have flooded the market.
Now on to the new side: Rivian has reduced prices on its R1T pickup and R1S crossover base models by $3,100, aligning with federal tax incentives and introducing a new battery option to stimulate sales.
- The price adjustment reflects the broader challenge of slower EV market growth, with Rivian aiming to make its vehicles more accessible amidst competitive pricing pressures.
- Rivian's introduction of a "standard-plus" battery option offers an additional 45 miles of range at previous prices, highlighting the company's response to consumer demand for greater value and range.
- "Like every electric vehicle producer with a U.S. presence, Rivian has to reconcile past expectations with current market realities," notes Karl Braueran, Executive Analyst at iSeeCars.
Apparently a crowd in San Francisco found a use for a Waymo, driverless EV as it was set ablaze by a crowd using fireworks in San Francisco's Chinatown during Lunar New Year celebrations.
- The incident involved some smashing windows, with the car eventually engulfed in flames as someone threw a firework into the stopped vehicle
- Waymo reported no injuries as the car was not carrying passengers at the time, and the company is collaborating with local authorities to address the situation.
- "This was a one-off event," stated a Waymo spokesperson, amidst concerns over increasing public hostility towards driverless cars, highlighted by recent accidents involving autonomous vehicles.

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Next Episode

GM To The Middle, World’s Largest Superchargers, Radio Flyer Innovates

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Welcome to Wednesday as we talk about what GM talked about in their private NADA meeting. We also spill the details on the world's largest Supercharger station, as well as a new retail experience from iconic Radio Flyer.

Show Notes with links:
During their private meeting at this years NADA Show, GM has signaled a strategic pivot back to plug-in hybrid-electric vehicles, sparking enthusiasm among dealers as part of a more measured approach into the all-electric future

GM announced plans to reintroduce PHEVs in the U.S., aiming to bridge the gap between current internal combustion engine vehicles and future all-electric mandates, amidst concerns over aggressive EPA timelines
As opposed to one similar meeting a few years back where Buick dealers stood up and left en masse, this year’s meeting struck a different tone as Dealers expressed a positive outlook, highlighting GM's global experience with hybrids and PHEVs as a strong foundation for reintroducing these vehicles in the U.S. market
Earlier in the week at the JD Power Summit, GM President Mark Reuss said of hybrids, “PHEVs are still two powertrains on one car,” and added that they are expensive to make. On the plus side, he pointed out that “regulators treat PHEVs the same as EVs.”
Dealer Donald Hicks told Ward’s Auto, "The market is going to tell us what it will buy. The government can tell us what we have to build, but the market will tell us what we can sell. It’s that simple. Nobody is bigger than the market".

Tesla is planning the construction of the world's largest Supercharger station in California, contributing some fresh ideas into the future of EV infrastructure

The new Supercharger station will feature over 160 stalls, becoming the largest of its kind globally, and will be located in Kern County, near the intersection of the 5 freeway and the 46 highway.
Tesla is also incorporating a microgrid with batteries and solar canopies, aiming to cut peak demand costs and promote sustainable energy use within the Supercharger network

Radio Flyer, the iconic brand known for its red wagons, has opened its first store in Chicago, featuring a unique race track for kids to test-drive products

The new store in the Woodfield Mall includes an adult-sized wagon and a race track for product testing, aiming to reignite the joy of play for both children and adults.
Despite concerns around safety and insurance, the store has been a hit, with features like helmet requirements for kids showcasing Radio Flyer's commitment to safety in their ride-on product range
EV’s make an appearance as there is a display of several kid sized Tesla’s to try
"When we’re in the store, we’re wearing a red t-shirt, but we’re really wearing a white lab coat," said Chief Wagon Officer Robert Pasin, emphasizing the experimental and adaptive approach to the store's design and layout.

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Automotive State of The Union - Ad Spend Well Spent, Decline In Reliability, Fisker’s Quality Issues

Transcript

Kyle Mountsier00:00:00.000

All right, good morning. Oh, Paul's mic isn't working. So I'm talking if he thought he was talking, I thought I was talking. We're talking about Fisker and declines in ADS. Stuff People really want to know. Can

Paul J Daly00:00:26.820

you hear me?

Kyle Mountsier00:00:28.410

We can hear.

Paul J Daly00:00:29.250

Oh my gosh. You know, this. This is t