Will this cash infusion help GM sell the brand?
Saab's future continues its roller coaster ride by securing some much-needed funds...by selling a portion of their assets.

Let's start with a quick review. Right now, GM still owns Saab. Spyker is now the front-runner to buy Saab after the deal with Koenigsegg fell apart.

Saab has sold the rights to the current 9-5 and some technologies from the 9-3 to Beijing Automotive Industry Holdings Co. (BAIC). According to Saab, the new 9-5 is not part of this deal. What is included is the current 9-5's tooling, which BAIC will move to China. Saab will continue to produce the current 9-3 under its new owner, whoever that may be.

To the dedicated Saab fan, this deal may not add up. Why sell the rights to vehicles that make up Saab's core brand? Unfortunately, that brand is a bit tarnished. Saab desperately needs new models. They are banking on the new 9-5 to lead the way. This cash infusion will not only help the company develop those new models but I think it will help the company look more attractive to a potential buyer. More cash in Saab's bank means less out of a new buyer's pocket.

UPDATE
The president-CEO of Chrysler's brand division, Olivier Francois, announced today that Publicis Groupe's Fallon has been awarded the creative account for Chrysler, replacing Omnicom Group's BBDO which has had the account for many years.

Francois was apparently responding to the article on AdAge.com about the Chrysler TV spot that began airing yesterday. He explained that the commercial created by the Italian firm Armando Testa did not imply that Chrysler hired the agency.

It was a "one-time execution," Francois said.

Will Chrylser's new advertising push appeal to American buyers?
With Fiat now taking majority ownership in Chrysler, the Italian-based company is thinking globally regarding who they hire to take on the Chrysler advertising account, with BBDO Detroit set to lose the account and close their doors at the end of the year.

And with that, Chrysler Group's Olivier Francois, the president-CEO of the Chrysler vehicle brand, has hired Armando Testa, the agency used for Fiat's Italian Lancia brand.

The agencies first order of business was to take what they call a TV film they did for Lancia and re-purpose it for Chrysler. In both spots, the point of the commercial is not to advertise vehicles but call attention to the plight of Aung San Suu Kyi, Burma’s pro-democracy leader and Nobel Peace Laureate, who has been in and out of house arrest since 1989.

Convince Americans your brand is viable first
The point of the campaign will be a non-starter with American buyers. Do Americans care about the rights of others and the importance of their freedom? Of course. But do most Americans know who Aung San Suu Kyi is? Absolutely not. Will many Americans have a problem with an ad agency's Detroit office losing a lucrative contract with Chrysler to an overseas competitor, especially after providing the car maker billions of dollars of tax dollars? My guess, is yes, Americans will have a big problem with it.

In a prepared statement, Mr. Francois said, "We produced the TV film in honor of all those who put their lives at stake in the hopes of making the world a better place."

"For Chrysler, this is a chance to use our brand image to join with others in the fight for peace and to knock down the walls that divide us. We at Chrysler believe in doing the right thing and making a difference."

Social causes require a strong brand
Peter DeLorenzo, founder of Autoextremist.com and a former BBDO creative on Dodge, has an excellent idea.

"If Chrysler was bent on social causes, the brand should have contributed to food banks in the region surrounding its suburban-Detroit headquarters," he said. "At least there would be a shred of relevance in that gesture."

He went on to call the spot by Armando Testa "patently absurd." He said, "I'm sure the hundreds of people from BBDO who are being blown out the door are going to just love this, not to mention the U.S. taxpayer."

I think Mr. DeLorenzo has it right but it's very likely Chrysler management isn't listening. Any point Chrysler should be making in their advertising is convincing American buyers the brand is on track and to look forward to new and exciting models. Ford has come a long way to repair their image. Unfortunately, both GM and Chrysler have yet to present any viable plan in repairing theirs. This spot will only further muddle things with state-side consumers. Once Chrysler has rebuilt their brand, then they can use it to strengthen the causes they believe in.

I'll attach the new Chrysler spot here and you can decide for yourself. Does this do anything for Chrysler's brand? Does it make you feel better about buying a Chrysler product? Let me know with your comments below.

Armando Testa/Chrysler spot

UPDATE
Apparently GM still has hopes of finding a buyer for Saab.

"I talked to GM last night and my impression is that they have not given up hope," Joran Hagglund, state secretary at Sweden's Industry Ministry.

On Tuesday, the Swedish government ruled out offering any bailout cash to Saab. Time will tell but referring to my tweet yesterday, I think we may be seeing the end of Saab.

BREAKING NEWS
CNBC is reporting this morning that the deal that has been in the works since June for Koenigsegg to buy Saab has failed.

Koenigsegg decided to pull out of the deal which, of course, brings into question Saab's viability. Saab vehicle sales have dropped 61.5 percent this year with only 7,400 cars sold in the United States.

When this deal was announced, I thought this was an unlikely pair. Why would a small, boutique manufacturer like Koenigsegg take over a much larger company like Saab? Other than they are both Swedish-based, it didn't make any sense. I think most enthusiasts would agree that Koenigsegg should stick with what they know best and that's making high-performance exotics. Maybe Koenigsegg's management thought the same.

Do you think this is the end for Saab? It doesn't seem likely that GM will do anything to keep the make afloat. They have enough problems of their own to worry about.

Infiniti and Saab lead by example
There's no doubt the recession has hit world-wide auto sales hard.

With sales not meeting profit expectations, budgets are slashed in an attempt to cut costs. Marketing, of course, takes a hit as well. But sales are slowly returning, with new vehicle sales expected to rise in November from a year earlier.

I like to devote some of my time here on Ridestory talking about branding and how the manufacturers appeal to buyers and enthusiasts. I've always thought clever brand placement did more to appeal to consumers than the barrage of ads on network TV. I think it's safe to say that placing brands in recognized entertainment has probably been one of the few bright spots in automotive marketing.

Saab: Fiona's ride
One example, believe it or not, is General Motors. The auto maker showed some brand smarts when they successfully placed Saab in USA Networks 'Burn Notice'.

Advertising Age has an excellent article (subscription required) explaining Saab's success and how GM received some of it's best brand metrics ever. Brand integration into a popular TV show certainly proved to be a successful strategy.

Saab has a problem looming on the horizon, though. And that's a lack of cars.

As GM's sale of Saab to Koenigsegg continues, vehicle production has slowed due to cost cutting in preparation for the new 9-5.

"We have about 10 Saabs left, and they won’t last long,” said Ivan Goodwin, sales manager at Jim Ellis Saab in Atlanta. “It’s going to be a big problem, but there is nothing we can do about it."

In addition, Saab announced the closure of more than a third of their U.S. dealers. A limited inventory is going to hurt those dealers remaining open.

Infiniti and Elvis Costello's 'Spectacle'
Infiniti is taking advantage of their exposure on the Sundance Channel's 'Spectacle', hosted by Elvis Costello.

The Sundance Channel doesn't accept traditional advertising, so Infiniti's brand gets some more unique exposure through front-of-venue placement and title sponsorship on the show's marquee at the Apollo Theater.

'Spectacle' features Costello interviewing and performing duets with many talented guests. In addition, each show will feature Infiniti-sponsored "Inspiration Sessions," which pairs famous musicians with their producers. The show begins its second season December 9th.

Kathy Roznowski, Infiniti's senior media manager, said 'Spectacle' has become a large part of Infiniti's marketing strategy because the branded-entertainment matches the auto maker's promise of "inspired performance."

"We need to deliver inspiration in everything we do, from the performance of the vehicle to hospitality in consumers feeling they're getting peace of mind or quality," she said. "What these clips will be able to do is inspire fans to take them into the social space, to help us promote these artists pairings by sharing them with their friends."

"We ultimately want people to experience all our vehicles, so we're trying to talk more from the level of the brand itself. It's not about a sales event," Ms. Roznowski said.

I think the success both Saab and Infiniti are experiencing with their branded entertainment will spread to others. I'd much rather see cars used in an entertaining way, such as a series character driving it or as part of a musical diversion. It doesn't smack so much of advertising and can actually help support the content.

Yes, this is the diesel
Let me begin my review of the X5 Diesel with this: I'm not much of an SUV driver. I'd much rather drive a car, preferably one with a sporty nature. But I don't think I'm an atypical enthusiast. You know what I mean. It's much more fun to drive a car, even with just a hint of performance, rather than a truck or SUV.

The American market has struggled to accept diesel's, unless it's a pickup truck. The low-end torque makes diesel power ideal for towing trailers and hauling loads.

But when I heard I'd have access to a BMW X5 for a few days, I hate to admit it but I got excited. I have, of course, read a lot about the X5 and BMW's take on the world of SUV's. But I have never driven one, plus this was a diesel. Would driving a diesel be any different than a gasoline powered car or truck? What about the noise? And just how "green" would it prove to be?

What about today's diesels?
Some years ago, U.S. auto makers introduced buyers to diesel-powered cars with mixed results. Those 70's era Oldsmobile's and Cadillac's emitted such a clatter that it startled most potential buyers to dash the thought of better mileage for smoother running and quieter rides. Still land yachts, just not so noisy.

Any previous opinions I held regarding today's diesel vehicles were quickly dashed with this X5. Diesel engines have come a long way and BMW has done much to quell consumers fears about engine clatter and smelly exhaust.

Can you tell its a diesel? Well aside from the X5's graphics, you can when accelerating from a standing start. But the engine is at full grunt doing the job of getting the car up to speed. But standing outside the X5 as it idled or when at cruising speed, it was quiet and smooth.

The diesel X5 comes in two forms, the xDrive 30d or 35d. Each is powered by a turbocharged 3-liter in-line six, with the 35d bestowed with twin-turbos. The 30d has 235 horsepower and the 35d with 286.

BMW's diesel produces a hefty 425 lb-ft of torque at a low 1750 rpm. It accelerates to 60 mph in 6.7 seconds, impressive for a 5111-lb SUV. For those wondering about mileage, the EPA rates the diesel X5 at 19 mpg city and 26 mpg highway. I easily achieved these numbers, particularly on the highway where my local freeways are relatively flat.

The X5's handling easily rivals many "sports" sedans and is a ball to drive. The low end torque powers it through corners quite nicely and makes you think you're driving something other than a heavy SUV. Fun, yes, but the weight will catch up with you with a nod to understeer that is easily controlled and expected.

Electronic gadgetry
Hallelujah, I was able to pair my iPhone with iDrive! Or, more specifically, with the Communications center of BMW's disputed entertainment hub. I wasn't so successful with the 3 Series I tested not long ago so I was pleasantly surprised by my success this time around.

What I was disappointed with was the quality of the system itself. The iDrive control knob is nicely weighted and feels like it should be linked to a grade-A entertainment system. Unfortunately, the expected BMW quality ended there. The other buttons used to access the system were a hard plastic that didn't mesh well with nearby surfaces. The BMW standards guide may need a revisit.

I did find the iDrive system easy to navigate. BMW has taken much heat over the system since it was introduced and has simplified it. To those ends, they may have let the on-screen graphics suffer. A visual update is needed, especially in the age of computer gamers and hybrid "greenness" measuring dash displays.

How about the competition?
You can see how the diesel X5 faired against it's competition in this comparison published by Motor Trend. Based on their results, Motor Trend favors Volkswagen's Touareg TDI.

You benefit from German engineering in both the BMW and VW, but the Touareg seemingly wins out with a better designed interior. You want your time behind the wheel to be a great experience, not only in driving dynamics but in the quality of the environment. BMW may be lacking here, but first hand experience will be your best guide.

Any true-blue BMW fans out there? What do you think of a diesel BMW, particularly an SUV? Is it high time American buyers accept diesel, particularly with its miles per gallon advantage? Or will the higher showroom sticker price turn buyers away, not to mention the higher cost at the pump? Let me know what you think, especially if you are an X5 owner.

And does a fair job keeping up
Yes, this is a video produced to help garner sales but at least it's well done. And it's good to see Lincoln be competitive among a fair sampling of quality European sedans.

I won't spoil it for you but it's worth watching to see how far Ford has come in a tough market.

I've written before about the Lincoln MKS. I concentrate a lot on styling and branding. I'm of the opinion that the MKS has broken some new ground for Ford and recent sales figures seems to point to a receptive public. Ford is making money. Yes, the MKS is a bit more "shiny" than its European competitors but at least it doesn't look a slug. It's a car you wouldn't mind being seen in.

Let me know what you think. Are you willing to consider a Ford or Lincoln based on a video comparison such as this?