A Leading Edge

Brandweek, July 10, 2000 by Jeff Green, Tanya Irwin

DaimlerChrysler Minivans Tout 'Firsts'

DaimlerChrysler is scrambling to back up a series of boastful "first" claims it plans to use in a $100 million minivan launch campaign for the all-new 2001 models.

The launch is key for DaimlerChrysler because minivans are its most important, high-volume vehicle and it desperately wants to retain leadership status in the segment it created in 1983.

It's not clear which claims will ultimately make it into the new fall spots for its Chrysler minivans from FCB, Southfield, Mich., and Dodge models, via BBDO, A Troy, Mich.

But Chrysler has already begun touting the power liftgate in its minivans, as a "first" for the industry, and claims more than 50 other firsts for the vehicles--a tactic sources said will be stressed in the marketing launch. Final spots aren't expected for more than a month.

Like rival Ford, the DaimlerChrysler campaign will likely aim at women buyers and highlight mom-influenced features: a dual sliding door obstacle detector and pop-up rear cargo organizer, among them.

FCB and BBDO referred questions to Daimler Chrysler, which had no comment.

The minivan segment--powered by demographic trends of growing families--continues to be a highly profitable and increasingly competitive segment. Chrysler dominated the market for most of the 1980s and 1990s, but in recent years Ford has dramatically improved its Windstar, while Honda launched the critically acclaimed Odyssey last year. Toyota also has its Sienna and other automakers are offering better models.

What's more, style-conscious consumers have gravitated to SUVs and other outsized luxury nameplates, which now dwarf minivans in overall sales.

Through May, 2000 minivan sales were up nearly 10%, but DaimlerChrysler minivan sales were off about 5%, per Ward's Automotive Reports. More importantly the automaker's share has slipped from about half the market in May 1999 to about 44% so far in 2000--with most of the losses going to Odyssey which jumped from 4.5% last year to nearly 11% this year to date, per Ward's numbers.

"This launch is critically important because they have hardcore competition for the first time when they've launched a new model," said Jim Hall, vp of auto analysis at consultancy AutoPacific, Southfield, Mich.

Unlike Chrysler's first minivans, which were indeed a milestone for the industry, and the second, which came when others were still playing catch-up, the current minivans are only evolutionary at a time that Honda and Ford are strong, Hall said.

The power liftgate--which opens and closes via a button on a keyring--is an important difference, said Hall.And with the addition of a more powerful engine, the DaimlerChrysler vehicles now hold their own in the power category after lagging in recent years.

But are they true leaders? "I think the latest Chrysler minivans arguably are examples of underestimating the competition," he said.