Meyer Unveils Corporate Push Touting 'New' Day at the 'New' Automaker

When people look at American cars, they just assume they might break."

That was the response of Deborah Wahl Meyer, VP-CMO at Chrysler, when she was asked to cite consumers' greatest misperception about its vehicles.

It is the job of Ms. Meyer, the former VP-marketing of Toyota's luxury Lexus brand, to turn that notion around. Chrysler's auto recall rate is about the same as those of Detroit's other two car makers, she said.

Motor City will be watching closely next month as Chrysler breaks an ad campaign from BBDO for all its brands estimated at $25 million. Ms. Meyer showed the new commercial at the Detroit Adcraft lunch last Friday which is themed "the new day" at the "new Chrysler." The spots use third-party testimonials to tout Chrysler vehicles' interiors, quality, warranty and value. The idea is to show that the automaker has changed.

And indeed it has. Private-equity firm Cerberus Capital Management bought a majority interest in Chrysler from Germany's Daimler last year and took the company private.

More than perception
This marks the third time since the late 1970s that the carmaker has advertised itself as "the new Chrysler," according to Todd Turner, president of consultant CarConcepts. "If it was only a perception problem, they could fix it with communications, and even so, that takes a lot of time and money."

Mr. Turner said auto recalls aren't a true barometer of quality since they apply only to safety-related problems. He recommended that Chrysler officials focus on all aspects of their products, including fit and finishes, ride dynamics and interiors -- citing the rattling and vibrating of the rear axle on an all-wheel-drive Dodge Caliber he recently rented.

It is clear Chrysler has a way to go in convincing consumers. Its three vehicle brands, Chrysler, Dodge and Jeep, all rank below the industry average and near the bottom among the 35 nameplates in consultant J.D. Power and Associates' 2007 Initial Quality Study. The study is based on responses from 97,000 buyers of '07 model cars and trucks 90 days after purchase.

Power's latest Vehicle Dependability Study, which surveyed more than 47,000 original owners of 3-year-old models, ranked the Chrysler nameplate just below the industry average, with Dodge and Jeep further down the list.

Newcomers
Chrysler's new models should help, since consumers tend to believe fresh products are improvements over older offerings, said Pete Hastings, senior VP and analyst at Morgan Keegan & Co.

Ms. Meyer said Chrysler's major launches this year include the all-new Dodge Journey crossover this quarter, the return this spring of the Dodge Challenger coupe muscle car after nearly 35 years and the redone Dodge Ram pickup this fall.

Chrysler will show the Challenger at the Chicago Auto Show next month. Ms. Meyer said the 9,000 preorders for the car, done via dealers, exceeded expectations.

She said the biggest difference between Chrysler and her former employers Toyota and Ford is how quickly the automaker can make decisions. A verdict on a new campaign or strategy can come within three days instead of three to six months. The coming ad campaign took less than two months to put together, Ms. Meyer added. "The pace of change is exciting."

Ad Age - Jean Halliday

Chrysler Turns Sour Over State Lemon Law Decision

HARTFORD, CT — The state Supreme Court has ruled the Chrysler auto company can't get sales tax refunds on clunkers that it has to buy back under the state's Lemon Law.

The high court unanimously held that the state government's general immunity from lawsuits trumped the legal claims that Chrysler made.

Under the state's Lemon Law, a buyer may return a defective new motor vehicle to a manufacturer, who must then provide a refund or a comparable new vehicle and reimburse the buyer for certain other charges, including sales taxes.

Chrysler argued the state government is penalizing the company and unjustly profiting from its compliance with the Lemon Law.

The company contended that it loses sales tax on every vehicle it must buy back, but the state keeps the original sales tax, and it collects new taxes paid when a consumer uses a refund to buy a new car.

The state Department of Revenue Services and a Superior Court judge both ruled against Chrysler. The company appealed to the Supreme Court. The appeal sought to revive its legal challenge.

Paul Hughes - Republican American