Automotive sector turns a corner?

Car industry commentators have drawn a line under recent safety concerns at Toyota as, for the first time since March more than 25% of all coverage focused on sales figures compared to less than 20% on safety issues.

Brand issues grew in importance this month as manufacturers turned to social media in their marketing mix and Ford unveiled pricing for its 2011 Explorer, which has a smaller engine but a higher price tag than its predecessor. (15%). Ford’s decision to risk market share for margins by not offering sales incentives also helped strengthen the quality perception of its brand amongst customers.

Toyota continued to dominate the automotive issues agenda thanks to the ongoing investigations into its safety record in the US. Although public interest in safety stories has waned (7th place- 8%), the continued association of the manufacturer with this negative issue does persist.

“Corporate and sales issues were naturally dominant during this busy period of financial reporting, reflected in our analysis of the automotive issues agenda in July” said Alberto Lopez-Valenzuela, CEO of Alva. “China is still perceived as the saviour for the global automotive industry as Europe looks set to struggle in the second half of 2010 following the end of government incentives. However upward wage and raw material costs, slowing growth coupled with real fears of overcapacity all mean that many manufacturers will continue to struggle in this competitive market.”

Looking forward, Alberto said that although financial results will continue to dominate news in August, the subject of electric vehicles is also likely to increase in prominence following the government backing of incentives for the technology and the release of pricing for GM’s Chevrolet Volt.

Each month, corporate reputation analysis company Alva reports on the biggest reputational risk issues in the Automotive industry using information collected from its daily Alva Automotive In Sight service.