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| In defense of pivots |
The word “pivot” is getting scorn from wordsmiths these days.
It even made an Atlantic magazine story on overused buzzwords this year: “If there’s anything corporate America has a knack for, it’s inventing new, positive words that polish up old, negative ones,” a staffer wrote. “If you mess up and need to start over, just call it a ‘pivot’ and press on.”
I’m usually all for nipping potential cliches in the bud. But “pivot” remains a pretty good way of describing the strategy shifts we focus on in Monday’s issue. And each of them is being spearheaded by a new leader.
For example:
■ American Honda is rolling out a number of structural changes to its sales and manufacturing organization. The goals are more intriguing than the details. Simply put, Honda wants to be less bureaucratic and more open to trying new things.
“We can’t afford anymore to have a dealer talk to a field rep, who talks to an assistant manager, who talks to his own manager, and then that gets kicked around here among a whole bunch of layers before we get a response back,” said sales chief Dave Gardner, who took over in May.
■ Mercedes-Benz is giving its U.S. retailers greater control over how they manage regional marketing funds and how they execute their digital sales efforts. We’ll save the details for Monday’s story, but it’s safe to say the move unwinds some long-established industry practices.
AutoNation CEO Mike Jackson referred to the new approach as a “benchmark” for the industry. “It will be a win-win-win for Mercedes, its partner dealers and customers for the long term,” the former Mercedes exec said.
And it’s all unfolding under an interim CEO, Drew Slaven, a marketing veteran who stepped up in August to bridge a gap between chief executives.
■ Jeeps aren’t known for their ability to make sharp turns. But the brand is about to embark on a second big shift in direction in a decade.
The first was after the Great Recession, when it shot for global status. The result: a fivefold increase in annual sales to about 1.5 million last year.
The next move: turning an off-road American icon into the world’s “greenest SUV brand.” Making that push will be Jeep boss Christian Meunier, the former Nissan exec who left for Fiat Chrysler 18 months ago.
His pitches include a YouTube spot called “Pale Blue Dot.” It features the late Carl Sagan waxing dramatic about the need to protect the planet, “the only home we’ve ever known.”
For Earth’s sake, and ours, success on that front would be the best pivot of them all.
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Coming Monday in Automotive News:
Jeep’s global ambitions: Brand boss Christian Meunier is on a mission to transform the image of the iconic American off-road specialist into that of the “greenest SUV brand” in the world. That will involve leveraging synergies with merger partner PSA Group, electrified vehicles and a new marketing campaign.
GM manages tight inventory: After both the pandemic and last fall’s UAW strike halted production, General Motors dealers continue to cope with low inventory levels. And GM doesn’t plan to get back to pre-COVID-19 levels of about 800,000 per month. Even the scenario laid out in the second quarter — 600,000 vehicles by year-end — is out of reach as vehicles sell within a few days of arriving at dealerships. But slim inventory could be an asset, as long as it’s the fast-turning and profitable configurations dealers need.
Help wanted to make batteries: One of the biggest industry hiring programs right now is going on at SK Innovation’s battery plant project in Georgia. The South Korean battery supplier explains how it is recruiting, interviewing and training under the constraints of the pandemic.
Weekend headlines:
Aston Martin Americas head Laura Schwab steps down: The departure of Schwab, who had been with the ultraluxury brand for five years, occurs in what has been a tumultuous year for Aston, which has struggled financially since going public in 2018.
COVID-19 outbreaks reported at 2 Mich. dealerships: Public health officials identified eight recent cases among employees at Shaheen Chevrolet in Lansing and 13 cases among the staff at Sundance Chevrolet in nearby Grand Ledge.
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BMW reloads for EV battles: The German automaker is forging back onto the EV battlefield with the iX, a full-electric utility vehicle that will become its new technology flagship. The 500-hp iX is set to go on sale in Europe at the end of 2021 and in the U.S. in early 2022 with a projected driving range of more than 373 miles in Europe’s WLTP cycle and more than 300 miles according to U.S. EPA test procedures.
GM on hiring spree: General Motors plans to hire 3,000 software engineers, designers and IT professionals by the first quarter of 2021 to accelerate electric vehicle production and enhance vehicle software. The additional jobs, many of which are related to GM’s proprietary Ultium batteries and EV development, will help the automaker stick to the new EV standard set by the electric GMC Hummer pickup, which was developed in 18 months.
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A selection from Shift and Daily Drive:
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Nov. 19, 2018: Carlos Ghosn, chief of the Renault-Nissan-Mitsubishi alliance, is arrested on the tarmac of Tokyo’s Haneda airport and charged with financial abuses.