WHAT’S HAPPENING

WHAT THIS MEANS TO BUSINESS

• The more information U.S. Latinos have about big-ticket items, the more empowered they feel. By linking up with a group whose aim is to help Latinos make informed decisions in a wide range of categories, Ford has a better chance of moving product off the lot.

RESOURCES

• Ford
• SABEResPODER

by Stefania Revelli

WHAT’S HAPPENING

• Think of it as community car sharing. RelayRides is a person-to-person car-sharing-service enabling users to rent their underused vehicles to others who need a ride (Springwise.com 1.28.10).
• Car owners simply need to register online and arrange for a keyless system to be installed in the automobile. Owners determine rental fees, locations and availability and can rate renters based on their experience.
• Renters are pre-screened for driving records and can book the vehicle by the hour or day. Suggested hourly rates are between $6 and $12 per hour, including gas and insurance (RelayRides.com 2.10).
• The company will launch in the Baltimore area, with plans to expand to other major cities throughout 2010.

WHAT THIS MEANS TO BUSINESS

• As ridesharing establishes itself as a viable form of commitment-free car “ownership,” those who own but under-use are finding ways to get in on the game.
• Sharing is saving — and nothing is seemingly off limits.
• A community-based problem-solving approach is proving to be an efficient and savvy strategy.

RESOURCES

• RelayRides

WHAT’S HAPPENING

• Think small. That’s the Millennial mantra when it come to cars. Half of today’s young adults are buying compacts or subcompacts, while only one in five are choosing a midsize model (New York Times 11.19.09).
• With Millennials poised to become the largest car-buying cohort, Ford is betting its future on small cars; it’s actively courting the demo with viral marketing campaigns like the Ford Fiesta Movement.
• Millennials may be driving the trend, but they’re not the only ones thinking small. Market share for subcompacts like the Fiesta grew from 21% in 2003 to 31% in 2008.

WHAT THIS MEANS TO BUSINESS

• Detroit automakers have to reinvent themselves or die. Tapping into the Millennial mindset with high-tech features and soc net campaigns gives Ford a competitive edge.
• In or out of a recession, saving money at the pumps and reducing planetary impact are now powerful motivators for consumers forced to tighten their seatbelts.
• Eco-savvy young adults don’t need to be convinced that small is beautiful. With a little nudging from the grandkids, older drivers are likely to follow suit.

RESOURCES

• Ford Motor Company

WHAT’S HAPPENING

• It’s a trend we’ve been watching: Some businesses are no longer accepting bills and coins, only plastic. First the airlines discontinued cash for onboard service, then a restaurant in Manhattan. By 2011, a section of the Florida Turnpike will have its tollbooths torn down and replaced with EZ-Pass-style readers and surveillance cameras (MiamiHerald.com 10.26.09).
• Out-of-states and other drivers who don’t subscribe to SunPass, Florida’s automated toll system, will still be able to drive the 47-mile segment of highway between Miramar and Florida City. They’ll just have photos taken of their license plates and receive a bill in the mail (plus a servicing upcharge, naturally).
• The main reason for the switch? Safety concerns, as full-stop tollbooth accidents have been both costly and deadly.

WHAT THIS MEANS TO BUSINESS

• In most cases, limiting payments options to convenient, high-tech systems still does one bad thing: limits options for consumers who may prefer to pay in cash for a variety of reasons, including privacy.
• Safety is a significant benefit that will require some public education.
• Going cashless could punish low-income drivers who can’t afford SunPass nor the extra cost of the pay-by-mail option.

RESOURCES

• SunPass is Florida’s prepaid toll program

WHAT’S HAPPENING

• For those who fear deplaning with bugs they originally didn’t board with, global defense and aerospace company BAE Systems and Quest International have joined to develop a filtration system that removes viruses, bacteria and pollutants from cabin air (TimesOnline.co.uk 9.15.09).
• AirManager, which can be retrofit to existing airline air conditioning systems, zaps particles with electrons, effectively sterilizing air and reducing the spread of disease on-board. Quest claims AirManager destroys swine flu, avian flu, MRSA and other airborne bugs.
• One European airline has already placed an order for AirManagers: Quest hopes demand from health-conscious passengers will spur more sales (more surplus charges, anyone?).
• Hospitals are also considering AirManager as a health precaution.

WHAT THIS MEANS TO BUSINESS

• Flu-freaked passengers breathe easier when airlines take responsibility for their in-flight environment and practice preventative medicine.
• Good idea, bad timing? Health-conscious consumers might not mind shelling out a few extra dollars in the name of prevention and peace of mind, but one AirManager costs about $16,000 and a large jet could need 8 of them.

RESOURCES

• Air Manager
• BAE Systems
• Quest International
  

WHAT’S HAPPENING

• Popular in Mexico and in Latino barrios of L.A., makeshift tin men called monos, made of old car parts, are being used by muffler shops, junkyards and auto repair garages as a way of promoting their business and appealing to their Latino clientele.
• The funky aesthetic behind these marketing tools have some asking whether they should be considered folk art, but most mono artisans simply view their creations as a practical way of practicing their welding skills and of keeping busy when business is slow.
• Monos have inspired a children’s book, El Homber Mofle — Muffler Man, and an exhibit at UCLA’s Fowler Museum

WHAT THIS MEANS TO BUSINESS

• As a way of letting people know about local neighborhood services, muffler monos have also become a cultural signature. While their creators may not think of themselves as artists, to outside eyes, monos set a cheerful tone to what are utilitarian necessities.
• Brands that attempt to emulate the folksiness of monos to market their wares should watch for the authenticity factor.

RESOURCES

• El Homber Mofle – Muffler Man by Titus “Tito” Campos (paperback), Del Sol Books 2009

WHAT’S HAPPENING

• At 48 miles per gallon, the Toyota Prius is currently the gold standard in fuel efficiency (FuelEconomy.gov 9.09).  But it may not be for long.
• General Motors announced that its Chevy Colt EV, scheduled to be released in 2011, will get 230 city miles per gallon. Using the same (blurry at best) methodology created by the Environmental Protection Agency, Nissan claims its 2010 all-electric vehicle, the Leaf, will get 367 MPG (NYTimes.com 8.12.09).
• Given that much of city driving in EVs will rely heavily on battery charges, these triple digit efficiency claims are abstract, inaccurate and lead drivers down the wrong road, according to some experts (WSJ.com 8.26.09).

WHAT THIS MEANS TO BUSINESS

• EV and MPG = square peg, round hole? Consumers who are mixing up fuel sources and fleets don’t want to be confused; they want industry standards and performance metrics to change along and align with the times.
• Savvy consumers get it: hybrids and electric vehicles are both more fuel-efficient options. But tell them the Leaf will be seven times as efficient as driving a 50 MPG Toyota Prius hybrid and their red flags will go up. Consumers put a high value on transparency and trust; it’s the personal measure of credibility.

RESOURCES

• Chevrolet Volt

• Nissan Leaf

• Toyota Prius

WHAT’S HAPPENING

• Cash for Clunkers may grab all the headlines, but Free Charity Cars has the gratis whips. After donating more than 4,000 cars to consumers since 1996, the service is now expanding its operations into the social media sphere with FreeChartiyCars.org.
• In order to get in on the free auto action, users must create a profile and share their wheel-less story. Consumers then earn points by getting others to join the site and cast a vote for them.
• Applications are reviewed and cars are doled out based on most deserving candidate, number of votes and geographic matches between donors and applicants.
• While their votes are piling up, candidates are also eligible to get other bennies like gifts and automotive-related help.

WHAT THIS MEANS TO BUSINESS

• Plain old philanthropy receives a welcome PR push when moving into the social media space. Consumers are more likely to donate generously when they feel a personal connection with the needy.
• Just because times are tough doesn’t mean carless consumers are abandoning their dreams of auto-ownership; many are actively carving out new pathways to reclaiming four-wheeled fun.

RESOURCES

• Free Charity Cars

WHAT’S HAPPENING

• Far-fetched flying fantasies will soon become boutique thrill realities thanks to JetLev, a personal jet pack company whose motto says it all: “Stop dreaming! Start flying!”
• Superman needn’t look over his shoulder just yet; JetLev can get consumers airborne, but flying heights max out at 30 feet and any aerial maneuvers must take place over bodies of water (the jet pack is actually a tethered water propulsion unit).
• Soaring-obsessed consumers with serious scratch can get their hands on a JetLev starting in September 2009 for approximately $129,000. No one ever said flying was cheap.

WHAT THIS MEANS TO BUSINESS

• It’s hard to conceive of a more frivolous purchase than a personal jet pack. Still, the prospect of being the only house on the block with a truly personal jet is thrilling.
• Products conceptualized during flush times — JetLev development started in 2000 — sometimes hit the market facing a far grimmer economic picture. Products with long development cycles can’t rely on stable market conditions throughout their journey.

RESOURCES

• JetLev

WHAT’S HAPPENING

• OnStar has revved up their driver services with Remote Ignition Block, which prevents a subscriber’s stolen car from starting (Autoblog.com 7.21.09).
• Together with OnStar’s existing Stolen Vehicle Slowdown, the GPS-guided crime-stopping features prevent dangerous high-speed chases and increase the likelihood the car will be abandoned and recovered.
• OnStar estimates their services have helped in the recovery of 28,000 stolen vehicles over the past ten years.
• Remote Ignition Block will be available in select GM 2009 and 2010 vehicles in the US and Canada.

WHAT THIS MEANS TO BUSINESS

• For Control Freaks, knowing the good guys are one step ahead of the bad provides remote control even when circumstances are way out of control.
• From directions to crime prevention to emergency assistance, drivers are increasingly relying on the accessibility and expanding scope of GPS-enabled enhancements.

RESOURCES

• OnStar