Leaf sales remain low. Nissan ads missing the target ?

[gbshaun]

Another disappointing month of Leaf sales (though around here I see several almost every day, with more every month)

But to what extent do you think Nissan's advertising is missing the mark?

eg:
I bumped into a couple at the weekend who asked how I liked my Leaf. So obviously is aware and has interest.
Turns out he commutes 28mi each way AND currently pays $7/day to use the carpool lane.
Run the maths on that and I pointed out how that was more per month than it costs with the new, lower lease rates.
"They lease them now? I'd heard they didn't do leases for the Leaf. That would be great if they do" .


So if lower total-cost-of-ownership is going to be the selling point, perhaps start by targeting that sort of commuter.


However, it seems to me that this "lower total-cost-of-ownership" angle has in fact been too much of the focus. We've all seen countless reports where the media has run some superficial numbers (rarely taking into account reduced maintenance costs) and almost always concluded that folks would never save enough to cover the extra cost c/w a Versa, or Honda Fit etc.

But have they ever said the same thing about a BMW Mini, or Porsche Boxter?
MOST cars that are sold are NOT the least expensive option. People willingly pay more, sometimes a LOT more, to enjoy a car with different features.

The Leaf may not have the same top speed or attract the ladies in quite the same way as the Boxter, but for me the Leaf's unique features are better than those of the Porsche (living on the coast in S.Cal. the top speed and handling are not something you can use anyhow). So if paying $30,000 more for a Boxter is ok, then what's the problem paying $10,000 more for a Leaf?
What I don't see is Nissan pointing out how and why its features are worth paying for. For me it's the most pleasant car to drive, especially for local trips. I could detail many reasons why.

There are only so many qualified potential customers out there who are motivated by environmental reasons, and only so many people for whom the Leaf would save money, but there are many many people (like me) who would gladly pay for some of the cool features of owning an EV.

Shaun

 

[cwerdna]

I think the California Leaf ads need emphasize eligibility for HOV stickers.

The current Volt ads do that and even have a picture of the green sticker in the ad. They obviously could only start doing this once the eAT-PZEV versions (eligible for the stickers) became available.

I don't live in WA anymore, but I'd imagine they'd want to emphasize the very low running costs. http://www.seattle.gov/light/accounts/rates/ac5_erps22.htm#rsc" onclick="window.open(this.href);return false; is an example of very cheap electricity. Puget Sound Energy (another provider up there) is more expensive but still cheaper than PG&E.

 

[smkettner]

And show the low maintenance costs. Let someone try to bum a ride from a co-worker back from the dealer to get a car serviced. Then on the ride back to work in a LEAF the owners can compare costs and frequency of maintenance. Or maybe an ICE driver sitting at a dealer on a Saturday to get serviced while the LEAF owner goes out and has some fun.

 

[EricBayArea]

I think the California Leaf ads need emphasize eligibility for HOV stickers.

The current Volt ads do that and even have a picture of the green sticker in the ad.

I've seen these ads too as well as heard the radio adverts.

I have to say though, if LEAF marketing is missing the target, what do you call Mitsubishi i-MiEV and Ford Focus EV?

I typically fast forward through commercials (DVR) but when a LEAF commercial is on I watch it and I'm not overly impressed. They were clever but are now kind of getting old. I think the Volt is better looking from the outside so shots of it driving around tend to catch my attention more than the LEAF (obviously this is personal opinion).

The LEAF ads are in line with the current Nissan marketing campaigns, so maybe therein is the issue.

 

[Herm]

Modern cars require little maintenance, an oil change around 5k to 10k miles or so.. not a strong selling point.

 

[gbshaun]

But if, after ALL the calculations, including insurance, maintenance, depreciation etc, you found your 5-Year Leaf cost-of-ownership was going to be higher than if you'd bought a Versa, or Fit, would you still have bought or leased your Leaf?

I would.

If so, how much more than owning/leasing a Versa/Fit would you have been prepared to pay ?
I'm guessing the Boxter drivers are happy with their ~$25,000 premium.

 

[Nubo]

I didn't save the link but I've seen videos of Ghosn speaking to this issue. As I recall the current constraint is battery manufacturing capacity. Keep in mind they are supplying packs for LEAF worldwide, and also for Renault. Add to that a very unfavorable exchange rate between Dollar and Yen and it's not surprising that US allocation of LEAF is low. I don't think it is from lack of demand. And of course if there aren't many cars available it may not be the time for an advertising push.

In the same video, Ghosn talked that the next wave of marketing would target "the pragmatic majority", making a move away from appealing strictly to environmentalists and early-adopters to stressing the many real-world advantages of the car with which we all have become enamored.

I'd expect that campaign to coincide roughly with the ramp-up of US production which will relieve the battery production constraints and also alleviate some of the currency exchange issues.

 

[smkettner]

The real shake out will be a year from now.

 

[JeremyW]

You know what would get people's attention? Do a TV ad with no sound. With how friggin jacked up the compression is on commercials these days, people will love the fact that they get 30 seconds of silence even if they don't care about the car.

Jeremy

 

[grommet]

In the same video, Ghosn talked that the next wave of marketing would target "the pragmatic majority", making a move away from appealing strictly to environmentalists and early-adopters to stressing the many real-world advantages of the car with which we all have become enamored.

I'd expect that campaign to coincide roughly with the ramp-up of US production which will relieve the battery production constraints and also alleviate some of the currency exchange issues.

They started this last month. The television version of this ad has a localized "actual price" after federal & state rebates, etc. bumper tagged on at the end. http://www.youtube.com/watch?v=f8LHX_ZexeI" onclick="window.open(this.href);return false;

 

[surfingslovak]

[youtube]http://www.youtube.com/watch?v=f8LHX_ZexeI[/youtube]

 

[nosuchthing]

The above ad is for the wrong crowd. Most Leaf buyers are for the middle-aged (or so it seems to me). Must be the initial outlay.

I have written a killer ad for the Leaf. Contacted higherups at Nissan, contacted the production company they used in the past (don't know if the above one is theirs) and got nowhere. Offered to sign release and all.

Nada. Got one email from Nissan - no can do - and no reply from the prodco.
Dumbasses...

 

[surfingslovak]

I have written a killer ad for the Leaf.

Sorry to hear that. Would you be able to give us a hint?

 

[Train]

Modern cars require little maintenance, an oil change around 5k to 10k miles or so.. not a strong selling point.

Agreed. $30 to change the oil every 7500 miles. The maintanance issue is a non starter. Petrol vehicles need little maintanance in the first 100,000 miles.

 

[Train]

I watched that ad posted above.

All that's not going to matter when the potential buyer goes to the Nissan lot and finds the range is 70 miles on a car that is stickered for $37,000.

 

[EricBayArea]

You know what would get people's attention? Do a TV ad with no sound. With how friggin jacked up the compression is on commercials these days, people will love the fact that they get 30 seconds of silence even if they don't care about the car.

I like it.

Scene: Person walks down the street with all the noises of the street.
Person: Press door handle to unlock LEAF and gets in - silence
Cut to: Person starts driving with a faint hum of the electric motor.
Cut to: Signal sound as person turns right
Person accelerates (bubbles visible at 50% power utilization) up a hill with still only the faint hum of the electric motor
Scene: Fade to white
Words appear: "The best kind of innovation is the kind which does not need to shout for attention"

Flash of Nissan logo with one of the obligatory underscore words "_Silence is Golden"

 

[EVDrive]

It would be fun to show the leaf with it's sporty creds. Show the leaf at a stoplight with a mustang and when the light changes, pan to the rear view mirror showing the ice car being left in the dust.

100% torque off the line.

I hope the sell the leaf nismo soon with the bigger motor and upgraded front and rear bumper.

 

[gbshaun]

All that's not going to matter when the potential buyer goes to the Nissan lot and finds the range is 70 miles on a car that is stickered for $37,000.

Of course they would, and many many more would if rebates brought the price down to $25,000, or $289/month- we all did.
70 miles covers 95% of my driving. For the other 5% I have my paid-off 11-year old caravan, or the wife's car, or a rental.

People are walking into Mini dealers and laying down a lot more for a car that STILL has a noisy ICE requiring you to buy gasoline. Even if it has a longer range, the owners are most probably using the "other" car for that anyway.

Or how about the Lexus CT Hybrid, about the same price as a Leaf pre-rebates. Now that has SOME of the benefits of the EV, but the ones I've seen still fire up the 4-bangerbefore they even make it half way up the hill.

The Leaf is a great drive, and should be very attractive to people who are willing to pay a little more for technological advances and a more pleasant experience, which MOST new car buyers are. So why then the obsession with "Does the Leaf save you money"?

BTW I think GM got it wrong too by releasing a $30,000 (after rebates) Chevy Cruze (as it's perceived). IMO a better place to start would have been a $42,000 Cadillac, then back into the Chevy version.

 

[cwerdna]

People are walking into Mini dealers and laying down a lot more for a car that STILL has a noisy ICE requiring you to buy gasoline. Even if it has a longer range, the owners are most probably using the "other" car for that anyway.

Or how about the Lexus CT Hybrid, about the same price as a Leaf pre-rebates. Now that has SOME of the benefits of the EV, but the ones I've seen still fire up the 4-bangerbefore they even make it half way up the hill.

The way hybrid synergy drive works and is calibrated on non-PHV cars is the ICE starts w/pretty light acceleration. On non-PHVs, it's generally bad to use the battery from an efficiency POV (either draw from it or regen into it). All the energy ultimately comes from gasoline and putting energy in or taking it out == conversion losses. It's the so-called hybrid paradox. You have the battery but yet need to minimize its use to get the best FE.

The Plug-in Prius (PiP) is calibrated to not fire the ICE up nearly as easily when running in "EV" mode. I've test driven them and test driven regular Gen 3s numerous times (and the Lexus CT once).

 

[LTLFTcomposite]

Modern cars require little maintenance, an oil change around 5k to 10k miles or so.. not a strong selling point.

Agreed. $30 to change the oil every 7500 miles. The maintanance issue is a non starter. Petrol vehicles need little maintanance in the first 100,000 miles.

Now they're all coming with synthetic oil, so $30 has become $75, but that's still not going to make a big impression on buyers. Since the Leaf calls for 7500 mile tire rotation and the annual battery check you're not really gaining much in convenience either. I don't know why the battery check can't be done OTA, but even if it could there's probably something to be said for putting a car up on a rack at least once a year and snooping around for problems like cracked CV boots, worn suspension, leaking fluids, etc, all of which the Leaf is not immune from.

As for the ad campaign they should turn it over to Sterling Cooper.