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.

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?

If your fortunate enough to live in or visit the Phoenix area shortly after the new year, your always in for a car enthusiasts treat. The auction houses have begun announcing their upcoming events, with some truly fantastic cars set to cross the block.

Gooding & Company recently introduced their 2010 Scottsdale Auction with five one-of-a-kind European cars for sale.

The consignments include a winning 1956 Jaguar D-Type, a rare Pinin Farina 1959 Ferrari 250 GT Series I Cabriolet, a beautiful 1956 Maserati A6G/54 Berlinetta, Hollywood’s 1934 Hispano-Suiza J-12 T68 Cabriolet and a 1932 Alfa Romeo 6C 1750.

Gooding & Company will hold its auction event at the Scottsdale Fashion Square Mall on Saturday, January 23, 2010, beginning at 11 a.m.

The Five
Beginning with the 1956 Jaguar D-Type Sports Racer, chassis XKD528 began its racing career in 1956 with driver Pearce “Pete” Woods at popular racing events throughout California. A podium finisher at Santa Barbara, Bakersfield, Palm Springs, Riverside, Paramount Ranch and Pomona, XKD528 retired to street car status in 1964. Since then, it has been featured in countless magazine articles and proudly rallied in the Colorado Grand, Terry Larsen’s C & D-Type Rally, and Copperstate 1000. Following a recent comprehensive restoration, the Sports Racer will be offered for sale in its original appearance of cream over blue.

"According to Jaguar historian Andrew Whyte, this Jaguar D-Type Sports Racer’s victory at the Pomona Six-Hour Enduro in November 1958 is widely considered the last big win for a D-Type in the US," says David Gooding, founder and president of Gooding & Company.

The 1959 Ferrari 250 GT Series 1 Cabriolet may be best known as one of only 40 Series 1 Pinin Farina Cabriolets ever built, the last car of its kind to wear the famous covered headlights. At one time, this car was a daily driver for Marion Chinetti, the wife of legendary Italian race car driver Luigi Chinetti. Gooding & Company expects this Ferrari to be a bright star in Arizona this January.

David Gooding said, "This is the first time a Series 1 Cabriolet has been presented at auction in many years and Gooding and Company are honored to be representing it."

The 1956 Maserati A6G/54 Berlinetta, with coachwork by Allemano, was originally owned by Giulio Dubbini of Padua, Italy, a renowned collector of significant Italian racing cars. One of only 15 examples of Allemano-bodied Maseratis built in 1956, this rare gran turisimo retains most of its original components, including its Verde Suro (Mackeral Green) livery, original coachwork and matching-numbers engine. The A6G/54 is estimated to sell for $375,000 - $450,000.

Formerly the property of Alfa Romeo enthusiast Ralph Stein, this 1932 Alfa Romeo 6C 1750 Series V Gran Sport is a comprehensively-documented touring car that has participated in some of world’s most renowned events including the Mille Miglia Storica, Colorado Grand Rally, Pebble Beach Concours d’Elegance, and Laguna Seca’s Monterey Historic Races. It is being offered for sale with accompanying reports from experts Angela Cherrett and John Boer, FIVA paperwork, original bumper and engine components, and an extensive file of receipts from Jim Stokes’ comprehensive mechanical work that included the build of a Vittorio Jana-designed, supercharged twin-cam engine.

“From the moment we climbed into the car and slid into the low bench seat, it was apparent that the Alfa was a true driver’s car,” says David Gooding.

One of only nine original-bodied open J-12s in existence and also one of the most attractive, this 1934 Hispano-Suiza J-12 T68 Cabriolet became famous when it appeared in the popular 1979 James Bond film, Moonraker, starring Roger Moore. This car is one of only 120 twelve-cylinder models ever built and with a massive engine displacement of nearly 9.5 liters, it has been enjoyed by its owner for thirty years. During this time together, the owner toured numerous Hispano-Suiza rallies around the world as well as CCCA CARavans and the Colorado Grand. One of the most coveted of all classics ever built, this car is eligible to be shown at every major classic car event in the world.

If you were a money-no-object collector, is there any car listed or pictured here that you would just have to own? I love the little blue Porsche but I'm also a fanatic for the classic 356 models. Let me know what you think with a comment below.

Photos by Hugh Hamilton © 2009 Courtesy of Gooding & Company