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"J.D. Power" Gives The Auto Industry A Green Light On Digital Marketing

J.D. Power Gives The Auto Industry A Green Light On Digital Marketing image

You can’t turn on the television or open a newspaper without running into a car ad.

The auto industry and traditional advertising have always gone hand in hand, and that’s not likely to change. However, according to the new J.D. Power 2014 U.S. Automotive Media and Marketing Report, more and more new car owners are starting their content journeys via digital channels.

This comes as no surprise since nearly 65-90 percent of the buying journey (research, comparison shopping, consumer reports) is complete once a sales person is contacted and people in general are consuming content in a multitude of ways on various devices. However, the study could serve as an official stamp of approval for the auto industry to expand their digital marketing initiatives.

This was the first time in the 27-year history of the J.D. Power Report that digital media consumption habits, from search engine usage to social media activity, were even included (Hello Auto Industry! Meet Internet!) While their late-to-the-party efforts didn’t produce any Earth-shattering stats (93 percent of new-vehicle drivers still use a computer for Internet access, but 57 percent use mobile phones and 45 percent use tablets), to auto companies, it affirms the need to look beyond traditional medium to reach their prospective consumers.

One possible reason that it took so long to consider digital as part of the report is that car companies haven’t always aggressively targeted a younger demographic, assuming that older people are the ones making purchasing decisions. Thus, traditional marketing channels were the focus. Of course older people are using digital media just as much as the younger generation these days – 20 percent of those who said they used social media in the survey were 65 years or older.

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So what do these findings mean for car brands? Shifting gears to digital marketing is becoming more the norm. It’s happening already, according to eMarketer: “Automakers and dealers will spend $6.15 billion on US digital advertising in 2014, up 18.8 percent from the previous year. All told, substantial annual digital ad spending increases by the US automotive industry will continue for the foreseeable future.”

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Hyundai’s “Walking Dead” Chop Shop

Social media campaigns, interactive website tools, hashtags, and viral video production are dominating marketing meeting agendas across the country across all industries, and cars are no different. As such, there has been some really innovative digital content including Hyundai’s “Walking Dead” Chop Shop, a zombie apocalypse car-building site, and the Jean Claude Van Damme “Epic Split” video from Volvo.

Auto industry marketers haven’t exactly been waiting around for validation from J.D. Power, but now that they have it, digital marketing efforts should continue to accelerate.

This article originally appeared on The NewsCred Blog and has been republished with permission.

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How MobileEye Drives Auto Industry to Its ‘iPhone Moment’

NEW YORK (TheStreet) –– As driverless cars become more present over the next several years, Wall Street believes that MobileEye (MLBY) is best positioned to benefit significantly from this trend.

Several investment banks initiated coverage on the Israeli-based MobileEye, following its successful initial public offering earlier this month. MobileEye, which counts automakers such as BMW, Audi, Jaguar Land Rover, Tesla (TSLA)  , Ford (F) , Honda (HON) and Nissan (NSANY) as customers, shipped 1.3 million chips in 2013 to help automakers develop advanced driver assistance systems and semi-autonomous markets, noted Barclays Capital analyst Brian Johnson, who rates shares “overweight” with a $48 price target.

The company also believes its radar, sensor, microchip and camera technologies will allow it be the first to develop a semi-autonomous driving car at highway speeds. MobilEye is designing the first system for hands-free driving at highway speeds with two automakers, which it expects to launch in 2016.

Read More: Israel’s Mobileye Looks to Driverless Car after Record IPO

“Just as PCs and smartphones transformed computing, software will change the way we drive, and MBLY will likely be at the forefront of that change,” Johnson wrote in the note. “In our view, MBLY stock offers considerable upside potential given the company’s strong competitive position in the advanced driver assistance systems (ADAS) and semi-autonomous markets, which should drive a 45% revenue [compound annual growth rate or] CAGR through 2020 (largely from ADAS) and a 14% CAGR from 2020-2025 (as semi-autonomous kicks in at scale).”

Shares of MobileEye were higher in early Tuesday trading, up 4.2% to $39.80.

Currently, only around 3% of the automotive market uses ADAS, but that’s expected to move sharply higher within the next few years, as regulatory factors mandate it. Tesla CEO Elon Musk has talked about introducing an automated car in the past, potentially partnering with Google (GOOGL) , but noted that it would not come until at least 2016. 

Am a fan of Larry, Sergey Google in general, but self-driving cars comments to Bloomberg were just off-the-cuff. No big announcement here
— Elon Musk (@elonmusk) May 7, 2013

Mobileye, which generated $81.2 million in revenue in 2013 and $19.9 million in net income, has the chance to maintain its position in the Autonomous Emergency Braking (AEB) market, with its technology being at the core of 91% of the contracts won in the past three years, noted Deutsche Bank analyst Rod Lache, a position that is only like to increase. “And importantly, MobilEye appears to be expanding their lead by growing the functionality of their systems,” Lache wrote in a note. “This is expected to include sophisticated software that will serve at the core of the world’s first commercially available autonomously driving vehicles.”

Lache expects 2014 revenue of $131 million to reach $736 million by 2018, and ultimately reach $2.5 billion by 2025.

MobileEye, which expects to launch its autonomous driving system with six more automakers by 2018, is seen as the “Intel Inside” for ADAS, notes Johnson, but it could be much more, argues Citi analyst Itay Michaeli, who rates shares “buy” with a $48 price target. It could be the industry’s “iPhone moment.”

“Mobileye’s current ~80% share is staring at a $15+ billion LT addressable market (Citi ’25E rev = $3.3bln) with high entry barriers and a competitive edge from large unbiased databases,” Michaeli wrote in a note. “Mobileye
also sits in the most attractive leg of the supply chain; estimated NI margins 50%.”

Written by Chris Ciaccia in New York

Contact by Email.

Follow @Chris_Ciaccia

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Carbon Grabber campaign hunts for automotive industry logins

Europe’s automotive supply chain is being targeted by a malware campaign connected to the increasingly popular Carbon Grabber crimeware kit, researchers at Symantec have warned.

At first glance, what Symantec uncovered earlier this month when investigating a spam campaign spreading malicious attachments looks relatively innocuous, one of dozens of such incidents security firms pick up on in any given month.

The giveaway that there is more to this one is the unusual level of targeting which aims more than half of all spam at the at the car rental, insurance, commercial transport, and second-hand commercial and agricultural vehicle sales sectors in Germany, The Netherlands, Italy and to a lesser extent, the UK.

Using the lure of a bogus company called Technik Automobile GMBH offering to buy pre-owned vehicles, the attackers attempt to install the ‘Retgate’ credential stealer which monitors access to Outlook email accounts but can also be used to steal web logins from a range of browsers.

The attackers also directed the attack at customer service departments, a layer of SMBs that will enjoy good access to a range of company systems.

Symantec offers no information on the origin of the attack although a number of criminal gangs are known to use the Russian-developed Carbon Grabber toolkit that underpins it.

“One thing we know for sure is that if the attack is successful, the cybercriminals will have a foothold in the victim’s business. They would have the capability to send emails from the compromised Outlook account and to monitor for credentials entered into browsers,” said the research note.

The crimeware kit industry is still adjusting to the spectacular downing of the sector’s big daddy, Blackhole, late last year. Into the vacumm left behind it have emerged a number of other often very specialised kits, including the Magnitude kit used to distribute the CryptoWall ransom malware.

Carbon Grabber, first detected in January 2014, is small fry by these standards but a wave of attacks seems to have emerged from the kit all the same.

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The Global Auto Industry’s Recovery Gains Traction

DETROIT, MI–(Marketwired – Aug 25, 2014) –  Few economic sectors have mounted a more impressive comeback from the ravages of the financial crisis than the automotive industry. Both original-equipment manufacturers (OEMs) and component makers delivered five-year median annual returns that were well in excess of the median annual return for 26 industries, according to a new report by The Boston Consulting Group (BCG). The report, The 2014 Automotive Value Creators Report: A Comeback in the Making, is being released today.

OEMs produced a median annual total shareholder return (TSR) of 29 percent from 2009 through 2013, while component makers posted a median annual TSR of 33 percent. These results surpass the median annual return of 21 percent for the 26 industries tracked by BCG. The automotive industry’s recent performance represents an impressive recovery from the depths of the 2008 financial crisis, when the big three U.S. automakers alone posted nearly $75 billion in losses and unit sales plunged worldwide.

“The automotive sector has enjoyed a good run, but sustaining that standout performance will be a challenge,” said Xavier Mosquet, a BCG senior partner and a coauthor of the report. “OEMs and component makers will have to prioritize innovation to meet the needs of consumers.”

Important Sources of TSR: Focus and Scale
One of the report’s most striking findings is that OEMs’ country or regional focus influenced how they created value. OEMs that concentrated on emerging markets produced a median annual TSR that ranged from 36 to 49 percent, creating value primarily through a combination of margin improvement and sales growth. Automakers that focused globally on developed markets posted lower median annual returns that ranged from 23 to 35 percent, creating value in large part by expanding their profit margins, rather than increasing sales, and returning cash to shareholders through dividends and share repurchases.

“Our findings also highlighted the importance of global scale,” said Justin Rose, a BCG partner and a coauthor of the report. “It’s no accident that from 2004 through 2013, the five largest-selling OEMs posted a 47 percent increase in combined unit sales. Global scale not only helps OEMs remain competitive on costs but also positions automakers to capture share in high-growth markets and solidify their competitive advantage.”

Creating a Strategy for Sustainable Returns
To prepare a long-term value-creation strategy, OEMs and component makers should take into account all sources of TSR. “Global scale in itself is not sufficient to sustain performance, especially if growth comes at the expense of profitability,” said Rakshita Agrawal, a BCG principal and a coauthor of the report. “Both OEMs and component makers must also expand margins.”

Devising a long-term strategy will be an important challenge for industry executives. Analyzing a company’s performance in terms of its ability to deliver sustainable value creation is what investors do every day. Armed with the right tools, there is no reason why executives can’t develop an even better-informed perspective, given their intimate knowledge of their company’s plans and industry trends. When executives do, they can stay one step ahead of investor expectations and consistently generate superior shareholder value for many years to come.

A copy of the report can be downloaded at

To arrange an interview with one of the authors, please contact Eric Gregoire at +1 617 850 3783 or

About The Boston Consulting Group
The Boston Consulting Group (BCG) is a global management consulting firm and the world’s leading advisor on business strategy. We partner with clients from the private, public, and not-for-profit sectors in all regions to identify their highest-value opportunities, address their most critical challenges, and transform their enterprises. Our customized approach combines deep insight into the dynamics of companies and markets with close collaboration at all levels of the client organization. This ensures that our clients achieve sustainable competitive advantage, build more capable organizations, and secure lasting results. Founded in 1963, BCG is a private company with 81 offices in 45 countries. For more information, please visit

About features the latest thinking from BCG experts as well as from CEOs, academics, and other leaders. It covers issues at the top of senior management’s agenda. It also provides unprecedented access to BCG’s extensive archive of thought leadership stretching back 50 years to the days of Bruce Henderson, the firm’s founder and one of the architects of modern management consulting. All of our content — including videos, podcasts, commentaries, and reports — can be accessed by PC, mobile, iPad, Facebook, Twitter and LinkedIn.

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New rules mulled for the auto industry

12 Japanese suppliers fined a record $201 million for price manipulation

China is considering drafting new rules for the automotive industry on the basis of its Anti-Monopoly Law, according to an official at the nation’s antitrust regulator.

He made the comment on Wednesday after 12 Japanese auto suppliers were fined a total of 1.24 billion yuan ($201 million) by the National Development and Reform Commission for manipulating prices.

The fine is the largest handed out by the antitrust regulator.

Xu Xinyu, an official at the commission’s Price Supervision and Anti-Monopoly Bureau, said restrictions from automakers related to replacement parts in China had become extremely rigid and needed to be changed.

Xu said some car dealers had prevented auto parts from flowing freely, as in Europeor the United States, because automakers had set strict restrictions on prices, production quantities and the areas in which parts could be sold.

“We are not against franchise, but we are against abusing franchise,” Xu said.

Vertical price-fixing-setting the lowest prices for items resold to third parties, also called resale price maintenance,-would be a major target for antitrust penalties, Xu added.

An official, who declined to be named, told China Daily the antitrust regulator is also considering building a mechanism for the auto industry that would guarantee a level playing field.

Most major global automakers, including General Motors, BMW, Volkswagen’s Audi, Daimler’s Mercedes-Benz, Tata Motors’ JaguarLand Rover, Fiat’s Chrysler, Toyota and Honda, have been targeted in China’s antitrust probes. Most have announced price cuts for vehicles or spare parts in the past two months.

Fines for FAW-Volkswagen’s Audi division have yet to be announced.

Shen Jianjun, secretary-general of the China Automobile Dealers Association, said customers would benefit from the antitrust probes, which would inevitably bring more competition and lower prices.

Of the 12 Japanese companies involved, eight auto spare parts suppliers will be fined 831.96 million yuan, and four bearings suppliers will be fined 403.44 million yuan.

The commission said that from January 2000 to February 2010, the 12 Japanese firms, which included Hitachi and Denso, were found to have held bilateral and multilateral meetings to form horizontal-pricing agreements, which refers to concerted actions and agreements between actual and potential competitors, the most serious type of monopoly conduct.

Spare parts with fixed prices were used in more than 20 models of Honda, Toyota, Nissan, Suzuki and Ford cars, the commission said.

In July, Japanese automakers’ combined market share continued to drop, to 15.43 percent of the total passenger vehicle sector, compared with more than 20 percent in 2012, according to the China Association of Automobile Manufactures.

Major Japanese automakers all saw sales decline, while China’s passenger vehicle sector reported an 11.5 year-on-year sales growth during the low season.

“China’s enforcement of the Anti-Monopoly Law is in line with international practice,” said Deng Zhisong, an attorney at Dacheng Law Office in Beijing.

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Zeus Expands Into The Automotive Industry With Electrical Insulation Solutions

Zeus, a global leader in material science and polymer extrusions, has turned its attention toward supplying electrical insulation solutions to the automotive industry.

Orangeburg, S.C. (PRWEB) August 22, 2014

Zeus, a global leader in material science and polymer extrusions, and longtime partner in the medical, oil and gas, aerospace, electrical and semi-conductor industries, has turned its attention toward supplying electrical insulation solutions to the automotive industry.

Zeus has dedicated internal resources to investigating, understanding and solving the specific needs of the automotive industry. As a result, Zeus products and custom solutions are already being utilized for everything from wire harnessing and cable assembly to fluid management and sealing/filtration solutions.

“Zeus is a valuable resource for this market because of the variety of custom applications we’re involved with,” notes Benji Smith, automotive marketing manager for Zeus. “All of our polymers are chemically inert to typical automotive fluids such as fuels, ATF, PS and brake fluids, and capable of withstanding temperatures up to 260C. We’re seeing great interest in custom heat shrinks for harnessing and insulating wires, we can customize the dimensions and tolerance of our high-performance tubing for fluid handling applications, and we also offer dual-layered and co-extruded tubing as well as a host of optimization services.”

Smith notes most end consumers are unaware that advancements in passenger car technologies typically funnel down from top level racing programs.

“These cars are built for performance and must consistently deliver when pushed to their absolute limits,” says Smith. “Zeus has already succeeded in innovating for those markets. Now we’re looking to offer our solutions across a broader spectrum.”

For more information about Zeus’ capabilities, visit or call 800-526-3842.

About Zeus

Zeus is the world’s leading polymer tubing and material science innovator. Almost 50 years of experience in medicine, aerospace, oil and gas, automotive, fiber optics and more allows us to leap past can’t and move directly to how. Headquartered in Orangeburg, South Carolina, Zeus employs approximately 1,200 people worldwide and operates multiple facilities in North America and internationally.

For the original version on PRWeb visit:

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Europe: carbon market puts auto industry at odds with environmentalists

Europe: carbon market puts auto industry at odds with environmentalists

Green campaigners are set to clash big time with the forces of the automotive industry, as a debate over the inclusion of the road transport into the EU carbon market is expected soon.

European legislators are mulling the inclusion of transportation – the second-biggest polluting emissions source after the power business – into the EU Emissions Trading System (ETS), a move that follows in the footsteps of America’s greenest state – California. The inclusion into the ETS would help automakers across Europe save big on the cost they’re currently facing in the near future – it would allow them to more easily meet the existing regulations and also put their oversupply on the carbon market.

“Any new CO2-reduction policy should be cost-efficient, technologically neutral and balanced in achieving the aim of reducing CO2,” said Erik Jonnaert, secretary-general of ACEA, the European automobile manufacturers’ association.

“The carmakers would scream ‘double regulation’ and argue to weaken CO2 standards because emissions have been dealt with in the ETS,” responds Greg Archer from environmental campaigners TE.

EU’s executive arm – the Commission – is expected to make an announcement later this year on the new policy that would see another new standard for CO2 emissions set for the year 2025, with an overall new goal also targeted in 2030.

Via Automotive News Europe


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