We can’t ignore it anymore, alternative fueled cars are in desperate needs in the not so distant future. With mother earth’s limited oil supply, we are going to  see a steep oil price increase again once the economy has recover. Honda and Toyota effort of introducing hybrid technology in cars are still wayward in term of reception by the consumers… Mostly because of the price, but mostly because it’s still uses fuel. Logically speaking, rather than spending a US$20K  (in the United States) to buy a Honda Insight, most people can just do purchasing a Fit for US$5K less, and use that US$5K to fuel the car for years to come.

Let’s look back home here in Indonesia. Honda Civic Hybrid and Toyota Prius can be had for… Prepare… Rp. 500 Million or roughly US$50K!!! That’s more than twice the price of Yaris or Fit/Jazz! The Yaris can be had for Rp. 200 Million (US$20K), and the Fit/Jazz can be had for 220 Million (US$22K)… Let’s all relax and make a very simple calculation here…

You want me? Pay me…

My SX4 consumes around 1 Liter for 9 Kilometer (21 US MPG) of full inner city driving. With fuel price (grade 92) is hovering steady at Rp. 6500 (US$ 0.65) per Liter, I pay around Rp 300.000,00 (US$30) per week, and totaling Rp. 1.2 Million (US$ 120) per month. Considering that fuel prices might gone up in the next months because of recovering world economy, I might just bloat the number to 1.5 or Rp 1.8 Million (US$ 180) per month. Then, considering people uses a car up to 4 years (or until their lease is up), I’m  going to multiply my monthly fuel costs by 4 years (given I work somewhere near my old office, even then, 1:9 is already astronomically low)… And voila! I have to pay around Rp 108 Million (US$1008). Do mind I got the car for Rp 169 Million (US$16900), combined with 4 years of fuel, my operational and initial cost of ownership of my car is a measly Rp 277 Million (US$27700), still far less than buying a hybrid in Indonesia. So it goes to say, it’s silly to buy a hybrid, at least in Indonesia. Most people didn’t know this, they just arrogantly purchase the car to say they help the environment or crap… They certainly help made Honda and Toyota wallet grew thicker along the process.

Cheaper to own and fuel for 4 years than a hybrid… Figure it out yourself

Still though, price aside, Hybrids do return insane amount of fuel economy. Then again, it still rely on fuel… So it cannot have the “car of the future” title. One of the most hype alternative energy nowadays is the revival of electric vehicles. You take a hybrid, and lop off the internal combustion engine. Make the car plugable to any existing electrical terminal and voila! Electric cars.

Chevrolet Volt leads the way in this field. Volt is the first full electric vehicle with the biggest twist in the story as any M. Night Shyamalan movies. It is through and through an electric vehicle… But wait! It also has an internal combustion engine… Err… What’s an internal combustion engine doing in an electric vehicle? Ha! Told you it has a twist. The internal combustion engine is not called an engine because it doesn’t the drive the car, instead, it’s a generator that burns fuel to recharge the battery that propels the Volt electric engine. Crazy science! Thus, the car’s battery can be recharged through traditional home outlet, or it can be recharge along the way with its fuel burning generator.

Chevrolet claims 230 MPG or 1 Liter for 97 Kilometers for the car using US EPA estimate. Obscenely fantastic figure. But then, the Internet and automotive in general came with an uproar for the claim. Frankly I find it misleading too. Volt electric engine uses electricity (d’oh) which doesn’t equal to EPA measurement which measures a car’s fuel consumption using fuel. When the Volt is fully charged, it uses no fuel whatsoever, until the battery charge is at 30%, then the generator kicks in and recharge the battery. With that said, Chevrolet should just mention the range of the car using fully charged battery and full tank not the fuel consumption. But still, Chevrolet has the right to call the 230 MPG claim because the car after all consumes fuel (if needed), at least not as preposterous as our next subject…

A smirk of truth

Enter Nissan Leaf, a fully deck through and through electric car. It doesn’t have a generator built in like the Volt… And you know what? Nissan claims 367 MPG or 1 Liter for 156 Kilometers… *&*^%$*&$$#&^#$^*&~~~!!!This is the most atrocious marketing bullcrap I’ve ever heard. The car is an electric car and doesn’t use any fuel whatsoever, so why does there’s a fuel consumption estimate there? It’s freaky, it’s wrong, and it’s crap. Some people (probably a Nissan fan) argue that the claim is right. You take into account the KwH to charge the car, convert it into energy equivalent of fuel, mix it with the cost of life we pay to Jesus each day, divide it by Buddha equivalent of righteousness and subtract it by God’s holy power. Bill Ford, executive chairman of Ford motor company even had a say on this fiasco. He say that the rating is meaningless and “this question devolves into madness”. Madness…

Blue madness

I call this whole Electric Vehicle phenomenon as silly. Because before the Internet was a hit in the late 90s, Honda, Toyota , Ford and even GM already had Electric Cars back in 1997 in the States. Honda EV+, Toyota Rav4-EV, Ford Ranger EV and GM EV1 was at that time the pinnacle of electric cars breakthrough. The cars wasn’t made public, rather it’s available as a special lease for very special people (and rich people) in America. The cost of lease ranged from US$399 to US$599 monthly, a very pricey lease indeed. However, like Nissan Leaf, the cars have an average of 100 Miles of range… And that’s 12 years ago (does Nissan improves anything except adding another set of door on the Leaf?).

This dinky car served as Honda advanced future projects

However, America was only graced by the might of electric cars for just a short while… Shorter still than even Honda lease plan of three years. Introduced in 1997, Honda EV+ was canceled by 1999 to be replaced by first generation Insight. But the true story behind it was far more darker.

According to HondaEV website, there’s political force in play shutting down all oil independent cars in production. Back then, the amount of battery needed to solely power electric cars are a lot, and there’s only one specific battery that is capable to power these cars, and it’s called Toyota-Panasonic EV95. General Motors, back in 1994 bought the patent rights to these batteries, and with single low blow in 2000 sell the rights to Texaco, that’s right A FREAKING OIL COMPANY… GM sell alternative energy technology to a company that sells mainstream energy… Good work GM. The next move by Texaco for these oil free cars are to off course, SUE Toyota-Panasonic for the batteries, and Honda EV+ is floating around without a battery. A quote from HondaEV site couldn’t be more heartbreaking for electric car fans…

Honda EV+ was left without any battery, and Toyota bows down to the pressure, making the Prius without any ability to be powered by the battery alone even after US$30 Million settlement. So folks, this is why your beloved Prius cannot operate in full battery mode, politics, not technological limit.

There’s also another barrier for entry on these electric cars, and that’s price. Back in 1997, Honda EV+ was unofficially priced at US$53900 (based on calculation of lease). Probably because it was a limited production model, as only 300 or so models produced. Still, it’s 1997 and US$53900 is nothing to sneezed at, times inflation, today the EV+ would costs around US$72000 (US Bureau of Labor Statistics inflation calculator). Now, Nissan hasn’t disclosed any price yet for its Leaf electric car… But do they have the technology to mass produce cheap electric technology? The thing is, battery and  high output reliable electric motors are expensive because both didn’t had its spot on the stage yet, so mass production (economy of scale) hasn’t been achieved yet. Electric cars will be expensive that’s for sure. At the very very very very very very very least, Nissan will have to heavily subsidize the car, and even so, personally I think Nissan would have to sell the car at US$30000… And that’s quite a lot.

Still though, does electric car is our future? If anything goes by… Yes, you can just plug it in at your home and you drive it the next morning… But it does have its own drawbacks. What do you think current electrical power plant uses as fuel? Hydro? Wind? Geo thermal? Anything renewable? Not quite. Developed countries power plants uses nuclear which produces toxic waste, and most developing countries still relies on old fashioned fossil fuel and coal. If your community is powered using renewable power source then it’s fine and dandy if you use electric cars. But what happens when your community is still powered using fossil fuel? You just hide behind all those fancy electric car gimmick and behind that all, you are still contributing to the use of fossil fuel. Nissan account this notion, that’s why they put MPG rating on the Leaf… But how they come it with the number is between Nissan, the fans, mother earth, the hippies and God.

One proposed alternative energy is to use Hydrogen, as Honda, Mercedes Benz and countless automotive company has proven with their concept cars, it is the fuel of the future. Yes, hydrogen is converted to electricity, making it somewhat an electric car allover again but still, it’s hydrogen. Any 5th grader would know, hydrogen is two part of molecule that forms water (H2O), that’s right folks, hydrogen can be extracted from water (and the last time I waddled through flooded local roads, we have lots of it). However, producing hydrogen is not easy, and in regular cases it takes more energy to produce usable amount of hydrogen through the act of electrolysis. Advance research is underway to extract hydrogen from water with the help of algae, but still usable amount extracted using this method is still a long way down.

Blue Efficiency? The car is green, get it, green because it emits water vapor exhaust…

Honda, Mercedes Benz and leading automotive makers has interest on hydrogen powered economy. Honda already even made FCX Clarity, world first dedicated commercially available (although only through lease) vehicle to be powered using hydrogen. Dedicated because they built a car specific to the engine, with fancy aerodynamics. Unlike Mercedes Benz ’s F-Cell line of cars, which is an engine option on top of existing line of cars, primarily the A-Class and the B-Class (future dedicated model is coming based upon the B-Class though).

Honda FCX Clarity named 2009 Green World Car

So electric vehicles… Why forward to the past? Because technically, every known electric vehicle technology is just recycled or just improved upon from its predecessors. Nissan Leaf bull crap MPG comment aside, it has a range of 100 Miles, the same like Honda EV+ 12 years ago. The same technology can be found on FCX Clarity electric motor, taken straight from Honda EV+, although modified.

All in all, fancy terms and whatever, it’s nothing when real world driving experience falls short of the claims. Worse still, claims that are mind boggling to begin with. Nissan, stick to your GoTziRa.

Source:

Nissan unveils zero emission “Leaf”

Chevrolet “Volt” & Nissan “Leaf”  MPG claim under fire from Bill Ford

Honda EV+ complete history

US Bureau of Labor Statistic inflation calculator

Honda FCX Clarity Japanese website

Honda FCX Clarity named 2009 World Green Car

Here it is folks, real life consumption of Honda Freed ASEAN edition. One local Indonesian automotive magazine has extensively tested the car fuel consumption on highway and inner city driving. The result is mind boggling, but… Well, here it is…

The magazine test result nets 1 liter for 10-12 Km of inner city driving and 1 liter for 15 Km of highway driving. The fuel used is not mentioned, but safe to assume they use RON 91 92 (thanks Frozen_Heart) grade fuel, as previous road tests are done using RON 91 92. So the million dollar question is… Is it good enough? And the answer is a simple yes.

Mind you that the car is as aerodynamic as brick with slanted front window. No matter how hard Honda engineers try to make the car efficient with the standard 5 gear autobox, the car physiques is it drawback in term of fuel consumption. 1 liter for 10-12 Km of inner city driving is very very very respectable number… Hell, my automatic SX4 hatch barely manages 1:10 on perfect day. But the 1:15 for highway driving? Meh… This is where Freed users pays for its awesome interior space.

The Freed is taller and heavier than the Fit/City while still using the same engine (and detuned). Honda never stated its coefficient drag number for Freed, but let’s say that it’s not very good… And this goes to tall haulers like Elysion, Alphard and Elgrand for which Freed emulates. Wind resistance doesn’t take its toll on slow moving cars, it is when the car goes up to speed that you will feel the resistance. As such, Freed highway mileage suffers by a bit… Just a bit because most 1.5L haulers manages 1:16 at the minimum. To take into retrospect, my SX4 hatch manages 1:16 of highway cruise. This shows that the inclusion of 5 gear autobox on the Freed is a must, if not for the 5th overdrive, the car might be sluggish on slower speed (*cough*like my SX4*cough*).

All in all, the Freed is truly a must have. Tall cabin = very good shoulder and head room, something that few of its competitors manage to give but with a compromise. Although for its roominess Freed users must pay with slightly off highway cruise fuel consumption of its peers, the car still scores very well. Sure there’s that no rear aircon thing, but just turn the AC fan to 2 and put good quality window film.

Straight from Honda new President, Takanobu Ito, Honda cancels development of rear wheel drive cars.  A sad news for many enthusiasts because they balked at the fact that the previous Honda President, Takeo Fukui announced exciting projects for Honda, namely a new flagship rear wheel drive sedan, powered with a new V8 engine and the arrival of the most awaited replacement for Honda supercar, NSX. Spy shots of the new rear wheel drive mule car are abound, and the NSX replacement, sporting its V10 engine is screaming around the test track, everything is ready… Until Takanobu Ito arrives on the scene. Takanobu Ito is no stranger to Honda spirited roots, he is in fact, the guy in charge of creating NSX all aluminum body. So he knows a thing or two about what makes a great car (not an excessive engine).

The move is warranted though, not because Ito-san hates the enthusiasts or something, it’s just Honda couldn’t afford making these so called “question marks” products… At least according to BCG high growth/low demand matrix. The halo effect is there positively, but how is the demand? Let’s take a look at Honda profit ending 2008… 20 Billion Yen… WOWZA! A lot of cash no? No! Ending 2007, Honda profit is roughly 200 Billion Yen, 10 times of that last year. What Honda needs are cash cow products, products that makes profit like well, Fit/Jazz, Accord, Freed, and anything in between.

The new flagship sedan would just create costs and like any late comers, it will not sell well. Honda will need to cover for loss of the new car, something that Honda simply just couldn’t afford. What they can afford though is the creation of car variants from existing platform, that’s why the ZDX came to be, because it’s just a bigger Accord.

So what if Honda doesn’t have a 370Z, RX-8, ZR-1, SLK? What Honda needs now is to survive and that’s a priority over slow selling (albeit super sexy) cars anytime, anytime. Takanobu Ito will have a tough time and will have his photo on the target range of any misled Honda fans. But for true fans who understand the situation, he is actually a savior who dares to take the seat and all the responsibility (and one of the responsibilities is to take shit from enthusiasts).

But there’s still good news though; the NSX replacement is shelved, but that’s just the V10 version. There is news about Honda going to create another supercar… A hybrid supercar. Yep, Honda is rumored to scrap the V10 engine for a V6 hybrid system, just like Toyota planned hybrid Supra revival. But unlike Toyota’s hybrid 400 horsepower engine, Honda own super hybrid will generate up to 450 horsepower. This new bigger hybrid system will also found its way onto family friendly cars, probably destined to found its way under Acura hoods.

My take on the cancellation of anything rear wheel coming out from Honda is not the end all devastating news. So what if Honda or Acura is not becoming like Mercedes, BMW or even Toyota/Lexus? Honda well, they are going after Audi and Volvo… At least they both have the same front wheel vanilla cars and AWD spicier version. However both Audi and Volvo are not so stingy with their engine offering, at least there’s turbo and big V8s on Volvo side, and Audi have like what… V8, V10, W12… Acura could have gone the way of the Audis and I would care less just add more engines… A-VTEC would be nice Ito-san!

Source:

Rumored Honda super hybrid is coming

Takanobu Ito: FR Sedans are lame

Ito as new Honda President: Red marks all over

Tidak perlu diragukan, vitamin E adalah vitamin yang sangat berguna untuk tubuh. Khasiat antioksidan yang tinggi merupakan kunci menuju kehidupan yang sehat karena tubuh dapat dengan mudah bertahan akan radikal bebas. Akan tetapi, Universitas Berkeley negara bagian California Amerika Serikat yang menemukan vitamin E ini pada tahun 1922 menyatakan bahwa vitamin E dalam bentuk suplemen makanan tidak memiliki kegunaan sama sekali. Ingin tahu lebih lanjut?

Okay, since I have a lot of unapproved messages and readers asking about the new Honda Freed price in Indonesia, I’m going to one up Honda Indonesia and try to guess the Freed price. Frankly, I didn’t know the price, I have contacts in the “inner circle” but not that kind of inner circle, just friends at the dealership and media, so my best info will be your best info from local auto magazines.

I don’t know much how Honda Indonesia established their product price, but it is safe to assume that the Freed will be priced around Jazz price. Why? Because:

1. Honda Jazz and Honda Freed are both locally assembled.
2. Honda Freed is basically a stretch Jazz.
3. Both car shares the same engine and transmission.

The most expensive Honda Jazz, the RS, is priced at Rp. 221,5 Million. Now taking into account that the Freed is basically a stretched Jazz, the Freed shares most of its inner working with Jazz such as engine, transmission, and even suspension. The latter might be modified to handle Freed extra weight, but it is still the same McPherson Strut front and H-Shaped torsion beam back. So the changes might be just a different absorber and spring size.

So, the extra cost for Honda mostly comes in the form of sheet metal, plastics, and window, given as the Freed is bigger than the Jazz. Also for the automatic sliding door mechanism…

Do mind that Honda Indonesia only assemble the cars here, that’s why we call it CKD (completely knock down). So a lot of contents are still imported. Remember the basic economic equation of orders? When you buy something from period A, you sell it with period A price + margin. So if Honda purchases Freed components then when the dollar is at its highest, it’s not their fault… It’s the forex speculant’s.

So how much do you think the Freed will be priced? Personally, I guess the price will start at Rp. 240 Million, and topping out at Rp. 260 Million. This is actually a very conservative guess because even at Rp. 240 Million, Honda will sell a ton of this car. Because with just a premium of 8% from Jazz RS, you got a bigger capacity car and I see LOTS of Jazz RS running around Indonesia capital.

Why a conservative guess again? Because of the competition. At Rp. 240 Million Indonesian can just buy Toyota Innova, the venerable car of choice in Indonesia; 8 seater, 2L engine, enormous utility, high ground clearance. Then at Rp. 270 Million you can buy yourself an entry level Nissan Serena; 7 seater, 2L engine, bigger than Freed,  same exquisite FF platform. So, Honda Indonesia needs to play its card right. Thankfully, Honda brand equity in Indonesia warrant a price premium, although not much… Pricing the Freed over Nissan Serena level will be suicide, and Honda Indonesia should know better. So that’s why I personally guess the price will not go over Rp. 270 Million.

For trim level I’m guessing that Indonesian Freed will have two trims. The standard and top of the line. With automatic as standard, and the top of the line model featuring automatic sliding doors. The seating capacity will be strictly 7 seater captain seat variant.

With the economy is still in the red and buying capability of the market still low, it’s best for Honda to aim for the top with the Freed. 7 seater cars are synonimous with luxury people movers such as Honda Elysion, Toyota Alphard and Nissan Elgrand. With Freed’s premium pricing strategy, it’s best for Honda Indonesia to target a specific market than to cater to wider demographics.

But still, these are just plain guessing. I’m not affiiliated whatsoever with Honda Indonesia. So, the car is on track to its release date and the car is already booked in many dealers, have you booked yours today?

Hari minggu lalu, saya mendapatkan SMS dari Ibu mertua saya yang menyebutkan seperti ini:

PHENYLPROPANOLAMINE obat influenza(decongestant) ditarik oleh badan pengawasan obat dan pangan Amerika(FDA) pada tanggal 1 maret 2009 karena terbukti sebabkan PENDARAHAN DI OTAK. Berikut obat2 di Indonesia yg mengandung PHENYLPROPANOLAMINE 1.DECOLGEN 2.DECOLSIN 3.SINUTAB 4.ALLERIN 5.BODREXIN 6.CONTAC500 7.COSYR 8.FLUCYL 9.FLUDANE 10.FLUGESIC 11.INZA 12.KOMIX 13.MIXAFLU 14.MIXAGRIP 15.NALGESTAN 16.NEOZEP FORTE 17.NODROF 18.PARASUTIN 19.PROCOLD 20.RHINOTUSSAL 21.SANAFLU 22.SILADEX 23.STOPCOLD 24.TRIAMIN. Bri tau teman2 & saudara

Tampaknya, di era informasi ini masih banyak orang-orang yang tampaknya senang menyebabkan kegaduhan dalam sistem tatanan masyarakat yang teratur. Seperti film Batman: The Dark Knight, dimana sang pengurus rumah tangga setia, Alfred menyatakan bahwa ada beberapa orang yang ingin melihat dunia hancur tanpa keuntungan bagi pelakunya sedikitpun.

Berita hoax ini bahkan sudah menyebar melalui chat client populer… (gak mau promosi ah)… Cukup untuk dikatakan bahwa saya telah mendapatkan beberapa pesan yang diforward oleh teman-teman saya. Tentu saja, saya membalas pesan ini untuk menenangkan teman-teman saya yang kebingungan dan panik.

Phenylpropanolamine benar merupakan zat berbahaya, menyebabkan pendarahan otak, dan benar telah dilarang oleh pihak FDA.  Namun selain kenyataan pada kalimat pembuka paragraf ini, semua isi pesan mengenai Phenylpropanolamine tidak memiliki basis kenyataan. Phenylpropanolamine sendiri sudah dilarang digunakan semenjak tahun 2000, BUKAN 1 Maret 2009. Karena riset membuktikan bahwa bahan tersebut menyebabkan pendarahan otak pada kebanyakan wanita. Phenylpropanolamine BUKAN obat, melainkan sebuah bahan baku pembuatan obat saja, jelas… Kalimat pembukaan pesan hoax ini sudah salah.

Apakah Phenylpropanolamine digunakan oleh obat-obat yang digunakan diatas saya tidak tahu. Tapi yang jelas, saya baru saja sembuh dari pilek berkepanjangan dan saya selalu minum Stopcold. Mendapatkan pesan ini, saya langsung melihat daftar bahan pembuat Stopcold yang tertera pada bungkusnya. Cukup menenangkan bahwa Phenylpropanolamine tidak disebutkan dalam daftar bahan pembuat obat ini.

Yang perlu diperhatikan dan disimak disini adalah kondisi masyarakat kita yang mudah terpengaruh komunikasi getok tular tanpa melalui proses logika terlebih dahulu. Apakah Anda benar-benar percaya, bahwa Badan Pengawas Obat dan Makanan Indonesia begitu bodohnya untuk meloloskan sebuah zat yang sangat berbahaya ini 9 tahun lamanya? Aturan baku oleh BPOM, FDA dan badan pengawas obat dan makanan lainnya, menyatakan bahwa bahan baku pembuat obat dan makanan harus tertera secara jelas pada bungkus kemasannya. Penggunaan kata “bahan lainnya” pun sudah mulai jarang tertera pada bungkus obat dan makanan. Jadi, apabila perusahaan obat ataupun makanan gagal menyertakan informasi yang lengkap, maka perusahaan tersebut sudah melanggar hukum. Setidaknya, tidak ada bahan Phenylpropanolamine pada obat Stopcold.

Berikut adalah pernyataan resmi dari pihak FDA mengenai berita kebohongan yang beredar ini…

FDA is aware of emails circulating widely that list many products allegedly containing PPA. These emails, however, generally contain dated and inaccurate information and should be ignored.

Dan tanggal berapa pesan tersebut dilansir oleh pihak FDA? 23 Desember 2005. Jauh dari 1 Maret 2009 yang disebut dalam pesan hoax yang beredar.

Pesan saya hanya satu, stop menelan informasi publik secara bulat-bulat bila dilansir oleh sumber yang tak dikenal. Telaah informasi yang Anda terima dengan seksama, cari bukti pendukung lainnya, dan ambil kesimpulan dengan tenang. Saya yakin, Anda pun mencari opini kedua bila pergi memeriksa kesehatan apabila penyakitnya serius… Lalu, kenapa tidak mencari informasi pendukung kenyataan yang Anda dapatkan dari sumber tak dikenal? Mudah percaya bukanlah sebuah hal baik dalam dunia yang penuh dengan kebohongan ini.

Sumber:

Informasi resmi FDA mengenai Phenylpropanolamine

Pernyataan FDA membantah surat kaleng mengenai Phenylpropanolamine

Informasi hoax Phenylpropanolamine

Well, so much for the hoolabaloo… It seems that today is just the day Honda Indonesia sent out a press release about going to sell the Freed in Indonesia. At least we have a timeframe, it’s June and it’s confirmed the car would be available with i-VTEC engine and 5 speed automatic transmission. No further information is available regarding the car, on whether it will be offered with the 8 seat variant or the 7 seat variant nor would it be avaible in manual transmission.

For the time being, I’m going to write about Freed specification in comparison with its competitors, namely Xenia/Avanza, Grand Livina, APV and Gran Max Luxio.

Oh my… What a delightful turn of event this is… It seems that I mistakenly translate trimester with semester. Last night in a closed session, Honda Indonesia finally unveils its intention to sell Honda Freed in Indonesia and the official launching of the car will be held on 11th of March, next week! Wow! This is actually happening, Indonesia will be the first ASEAN country to sell the Freed… Wait… Actually, if you want to put more emphasis on that, Indonesia will be the first country in the world to produce and sell Freed outside of Japan.

Honda Indonesia is very bold, very very bold if I might add… The Freed target market in Indonesia is already saturated with Daihatsu Xenia and its clone, Toyota Avanza. Then the venerable challenger Nissan Grand Livina. Not counting Suzuki APV and the soon to be released Daihatsu Luxio. But should Honda be afraid? Not really… We are talking Honda here! Where engineers are part magician and voodoo doctors.

The Freed first of all, is a front wheel driven, front engine minivan where its competitors are more or less a crossover between two cars sans the Grand Livina. The Xenia/Avanza is a crossover between MPV and SUV, high ground clearance with front engine, rear wheel driven setup. The Suzuki APV and Daihatsu Luxio origins are semi pick up truck with engine underneath driver seat driving the rear wheel. This doesn’t mean a thing, but when you start to add up the fact that FF cars like the Freed and Grand Livina have ample interior room thanks to the lack of driveshaft running from the front of the car to the back… Then it start to makes sense.

The Freed main competitor will be Nissan Grand Livina with its similar FF drivetrain setup. Size wise, although the Freed is shorter compared to Grand Livina, it has longer wheelbase and is taller, these facts should lead to the Freed having more ample interior room than the Grand Livina… Although it remain to be seen.

The last sentence leaves a lot to be desired, and I smell a comparison is coming! Comeback soon, I’ll prepare a paper comparison between Freed competitors in Indonesia… And to some extent, the ASEAN.

Recession is here whether we want to accept that fact or not. Customers spending lowers, tertiary product prices gone up, massive financial institution layoff, undulating stock charts, and everything in between. So what should we, as a marketer has to do to face the crisis? The one thing big companies do when sales are down usually is to cut marketing budget outright, citing that sales makes the money, not advertising. Well, couldn’t be truer than that… Hell, as a marketing manager, I consider myself a second child to the product/sales manager as what they did is to sell products and create income for the company… Me? I’m spending that hard earned money to gain something that cannot be quantifiable in literal sense.

So what should we do? Well, I don’t know about you, but for me, its business as usual. Some seminars I attended about marketing cited that today is the best day to spend that marketing budget like crazy. Because everybody thinks just like what I wrote on the opening paragraph… Companies are afraid to spend money on unquantifiable things and are saving more for rainy days. That means, your competitors are likely to do the same. If your competitor cut their marketing spending, it means less noise on the market place now, so you can scream to your heart content in the middle of the market and net some considerable market share, at least if that market share doesn’t have the money to buy your product, you get some mind share and can reap the benefit at later date when the economy has recover.

However, maintaining that marketing budget is not the be all end all solution to maintain the needed market share today, especially in recession time. Customers just don’t have the money to spend, period. So rather than buying the unneeded tertiary products, people will opt to primary goods just to pass daily affairs. If you are let say… A fancy hair shampoo brand, you don’t spam advertising about fancy-all-natural-after-shower-anti-frizz-hair-conditioner-hair-coloring-combo, that costs a lot and is considered as tertiary product, you scale down and advertise about the basic necessity shampoo. At least you scale down the exposure level to that of your most mainstream product. It keeps your brand exposure level high enough with constant media frequency (if that marketing budget is maintained) and actually advertise something that people can still afford.

But what about companies that solely produce expensive tertiary products, like the automotive company? After all, car prices are going up especially for those countries which mainly import their products. Well, the mantra is still the same, you still burn that advertising budget, but with a little twist. You don’t allocate the entire budget into advertising, but move back a level and spend it on promotion mix level.

Remember the promotion mix? Advertising, Personal Selling, Public Relation and Promotion? Well, big companies often forget that a successful marketing campaign consists of all four of promotion mix elements. This is critical because when homogeneity is achieved especially as technology advances, there will be no more Honda’s i-VTEC, no more Toyota’s VVT-i, it would only be a car with variable valve timing technology. Thus, burning your marketing budget on expensive advertising about how advance your product is becoming a moot point. You can still advertise the expected perceived difference and market segmentation of your product, but not about its advancement anymore… Unless it’s very unique in a way no other competitor has something even remotely similar.

Then, you twist that marketing budget to leverage other key success factor of the company. Invest in Personal Selling, increase the training level and make sure that any people came in contact with your sales force immediately make your product as their point of reference. No need for sales to happen yet especially in this tough time, but do remember, for this to be successful you need to employ a super salesman. Spend on your Promotion, pull strategy is no longer working especially when dealers have exhausted their shared marketing budget. You push your marketing effort towards the customer, award your customers by buying your products with enticing yet attainable prizes… Not “buy a moose get (draw lottery ticket to get another) a moose“. It’s gambling! And not true marketing effort some say, and even I actually. Then, do some Publicity Stunt, make future customers literally fall in love with your company. In this tough time, nobody wants to part with their hard earned money especially to some jack ass company whose only purpose is to make their CEOs and owners fat. But if your company is the people’s company, giving out scholarship, increasing the livelihood of the surrounding community… People will literally threw money at you! Off course, there’s buzz marketing effect, do a perfect publicity stunt and watch how people will talk about your company and watch the the positive wind picking up.

Together, if you just came back towards your roots in the marketing front, I guarantee you will survive the crisis… Disclaimer: If your competitors doesn’t read this blog entry and have bigger marketing budget than you…  All in all, just do that integrated marketing stuff marketing people are raving about nowadays.

And… You’re still here… Which means, your boss still didn’t approve to maintain the marketing budget right? Don’t worry, there is still another potent way (read silently: cheap) to do marketing effort in this tough time. Embrace… The Internet.

Hell, there’s too much channel today that is free and targets effectively to groups of scrumptious target market on the internet. You can post free on interest group emails, forums, your own website, and every conceivable Internet channels. There’s them tube, that book of faces, that other social networking that used to be famous before that book of faces came, that multiplication thing, and many others… Fancy words for youtube, facebook, friendster, and multiply.

What is more important than all of the tactics used in this article is clearly your head and quoting Spongebob Squarepants, “a little bit of eee-magin-nation”. What’s written in this article is the basics of basics, you still can screw it up by following it blindly. Every company faces different sets of problems, and not every trick in the book is applicable, there’s still a mix and matching that needs to be done on reality side of things.

So… Research your customer/competitors, get back to SWOT analysis, adapt your strategy and like Takeo Fukui san, ex Honda President said and I would like to quote “Toward this end, Honda will closely monitor the marketplace and then carefully determine what actions need to be taken. Once decisions are made, Honda will take quick action as the company realizes the situation is very urgent and a slight delay in making management decisions could be critical“. So, if a multi[B]illion dollar company is doing it, so should your company.

So what I do then on my company? Did I get to maintain my marketing budget? Did I employ all this ridiculously basic marketing principle? Well, like I said above, every company faces their own set of problems… And with my imagination… Even children does not need to cry and scream for their parents to be noticed… It’s wordplay, if you know where I work… then that bolded sentence would mean everything.

P.S. Sorry for the lack of reference, I base it off my experience and from a marketing seminar which I couldn’t or don’t know how to refer here. However, the marketing term here are all basic marketing principle anyway.

The new Honda Insight is out in Japan and it’s hot, yup, witty title and witty comments ensues. Honda little baby that we saw a couple years back that took shape of a franken last generation Fit with the body of Honda Airwave now took the new corporate face of Honda. With Honda halting all of its luxury and performance models, all hopes are literally in the trunk of the new Insight… But does it have what it takes? Well, some say okay, and some say hell yeah! Read on for a paper review and witty comments.