15 August 2006
Words from the Duke
What is your sense and do you have any data to support if MG has any brand equity left, particularly after being out of the U.S. since 1980? And if it has any, who is that equity with? Mostly older people?
I have looked at research done by a European-based firm that definitely indicates there is positive equity in North America with the 40-plus crowd. It certainly has more positive equity in Europe, where MGs were sold up until about 10 months ago in the range of 120,000 cars a year. It's been 25-plus years since the MG was sold in North America so people as young as in their late 30s and early 40s still remember the brand. Younger than that, they don't. But look at the Mini Cooper. That was never as strong a brand as MG. I hardly remember the Mini Cooper. But look at what they've done, selling 200,000-plus a year. I think we can learn from Mini on how to not only appeal to the 40-plus crowd, but also how to tap into the 22-40 crowd. We'll tear a page out of Mini's playbook.
Why Oklahoma? General Motors recently closed the state's only assembly plant there.
The opportunity in Oklahoma is immense. The Ardmore Air Park, where we will build the coupe, is a 3000-acre parcel. Some of the land is sovereign Indian state. We are partnered with Mark Nuttle. [Editor's note: Nuttle is manager of the Oklahoma Sovereign Development LLC, which has a joint venture with the Chickasaw Nation to develop the land into an international trade and distribution center. Nanjing would benefit from tax advantages, including property tax exemptions, accelerated tax depreciation and employment tax credits if the tribe purchases 650 or more acres for the Ardmore Airpark and leases it to Nanjing.] Let imagination run and you can think of creative ways that allow the business to be more efficient and profitable to the point that one might be able to build vehicles in Oklahoma nearly as cheaply as China.
There is, of course, a lot more being discussed, but these were the questions I most wanted answered.Posted at 3:52 PM to Driver's Seat , Soonerland