July 23, 2010

International Car Culture...a brief tour around the world...in a car.

DESTINATION

✤ Explore the car ownership experience and culture for consumers in Dubai, Italy, Spain & The Netherlands

✤ Profile key consumer segments in each country

✤ Identify behaviors and processes paralleling U.S. automotive life cycle

✤ Highlight opportunities for (auto client) world strategy

FUEL (METHODOLOGY)

•6 in-depth interviews•155 survey respondents from countries of scope & U.S.

Secondary Research Sources:Domestic & International Databases:•Mintel, CMI, GMID, NU WorldCat, Euromonitor International

Primary Research Sources:

ROADMAP

✤ COUNTRY

✤ SNAPSHOT FACTS & FIGURES OF POPULATION

✤ CAR EXPERIENCE & CONSUMER SEGMENT PERSONAS

✤ KEY DIFFERENCES

✤ INSIGHT & (AUTO CLIENT) IMPLICATIONS

✤ KEY TAKEAWAYS FOR (CLIENT) WORLD STRATEGY

DUBAI, UAE

VISITOR’S GUIDE

✤ Located in the United Arab Emirates, one of 7 Emirates

✤ Has the largest population in the entire UAE

✤ Spoken language is English

✤ Lies within the Arabian desert - average temperature of 105 F

✤ Cosmopolitan “melting pot” of cultures from around the world - 80% Expatriates

✤ TREND: Many UAE nationals are undertaking professional education - making up a new generation of educated, working nationals, contrary to the past

#’s THAT MATTER

Cars

Consumer

Total spending on cars has grown from 3.7 billion to 7.7 billion in past 10 years

Males comprise 68% of population

Males represent 2.2 million of the 2.6 million employed population

Video clip next page...

WHAT’S IT ALL ABOUT?

MEET YASIR✤ 29 years old

✤ Local Emirate

✤ Speaks fluent English & Arabic

✤ Recently completed his Doctorate in International Relations

✤ Just bought a new BMW and uploaded pictures of him and friends in front of it online

✤ Comfort of car provides “escape” from hectic work day and city traffic

✤ Loves change

✤ Car helps define who he is

“I got the job, now I get the car, the house and the wife!”“...it’s like having another

degree.”

CHANGING LANES

“Window Shopping Socials”

Dealer determines

“do” or “don’t”!-usually only 1 dealer per car manufacturer

THE INSIGHT

He shops for confirmation and buys for everyone...else.

Who knows what he really wants - he listens to everyone else and goes by what’s “new” and trendy - he’s influenced by others’ opinions more than his

own preferences...if he even still knows them.

Why so social?

GREEN LIGHTS

Target the 20%! -they’re growing

Capitalize on dealer as Brand Ambassador - do more on-site events at dealership

Encourage a peer input platform online “Like” or “Dislike”

TURIN, ITALY

VISITOR’S GUIDE

✤ World’s 7th largest economy

✤ 70% of population lives in urban areas

✤ Free education system, universal free healthcare

✤ Slow to adjust to technology, mistrust of companies online

✤ Country relies heavily on automobile industry

✤ Western Europe’s third largest new car market

✤ Italians like it small!

✤ TREND: New Italian 2-person family emerging

#’s THAT MATTER

ConsumerNumber of two-person households increased by 27% in 10 years,

from 5.4 million to 6.9 million

Cars2.2 million people are employed by automobile companies“European Car of the Year Award” - Fiat Group 12 times in

40 years - more than any other manufacturer

Why? My Hypothesis: People are apprehensive about the large financial commitment involved in getting married, so they’re putting it off until later in life. At which point, having children may be a difficulty or maybe not an option, decreasing

household size.

Video clip next slide...

“OUR” Cars

“It’s understood, your getting a Fiat.”

MEET ROBERTO & EMILY

Working class newlyweds, no plans for children

Have a strict budget - just invested large amount of money on wedding & family house

Share a FIAT - trying to save money on expensive maintenance and insurance

Prefer driving their car over public transportation

Hope to purchase an Alfa Romeo in the next few years

Fear embarrassment of making the wrong choice

CHANGING LANES...HOW THEY SEE IT

“Italian cars are a reflection of Italian passion, and their personality is a

reflection of ours.”

“Cars have never been perfect...that’s exactly what makes them more genuine,

more Italian”

“Cars...imagine the humanity behind their making.”

THE INSIGHT

“A Sense of Home”

Supporting my own is supporting me.

GREEN LIGHTS

Highlight the man behind the brandMatch models with consumer personalities.

BARCELONA, SPAIN

VISITOR’S GUIDE

✤ 9th largest economy in the world

✤ Native Spaniards make up 88% of the population

✤ Made up of 17 Autonomous Regions with separate governments, budgets & resources

✤ Spanish is the official language of the nation, but there are 5 other officially recognized dialects of Catalan

✤ Major urban zones separated by long distances (Madrid, Barcelona, Valencia, etc.) - increased expenditure on fuel

✤ TREND: Go Green!

✤ European leader in developing automobile environmental protection policies

✤ Just surpassed U.S. as biggest producer of solar power

#’s THAT MATTER

Cars

Collective goal to have 6% of vehicles running on bio fuel by end of 2010

Consumer

93% of Spanish households own vehicles

HIS CAR...A CAR...JUST A CAR

“Simply a way to get me from one place to another...

...BUT I want to be responsible in my usage.”

MEET GARCIA

✤ 39 years old

✤ Moved to Barcelona 7 years ago with wife

✤ Visits parents twice a month in Madrid

✤ Concerned about fuel & maintenance expenses when traveling

✤ Beginning to use other forms of transportation to try to save money

✤ Strong supporter of country’s effort to slow global warming

✤ Community advocate for Bio-Fuel Initiative

CHANGING LANES (watch out!)

“IN MY LANGUAGE, PLEASE!”

THE INSIGHT

If everyone has a car, why is such a low value placed on it?

It’s not a reflection of me, or who I’m trying to be.

GREEN LIGHTS

Create a longstanding relationship that links the usage of a car with the ideals and values of the people.

Renault-Nissan, Enel & Endesa

Turn “A Car” mentality into “Purposeful Car” following green initiatives.

AMSTERDAM, THE NETHERLANDS

VISITOR’S GUIDE

✤ One of the founding members of the European Union

✤ One of the most densely populated countries in the world.

✤ Male/Female ration - 50:50

✤ More people live in small towns than in large cities

✤ Average adult makes his/her first major purchase in their 30s

#’s THAT MATTER

Car leasing makes up 50% of automotive financing business

Dutch commuters spend a total of 65 million hours stuck in traffic jams in 1 year

Cars

Consumer88.4% of population are internet users

Video clip on next slide...

CHANGING LANES

LUXURY ITEM = LUXURY TAXES!

MEET ISA

✤ 32 years old

✤ Grew up in Amsterdam with a family that doesn’t brag about money

✤ Been working in the city, and occasionally commutes to the suburbs

✤ Just got a new job and will be relocating away from the city in 6 months

✤ Has never owned a car - company always provided leased vehicle

✤ Likes to avoid traffic jams, so she rides her bike on weekends and after work

✤ Views cars as luxury, but necessary in her case

TEST DRIVE

“Businesses can’t plan too far in front at the moment, so the short term leasing is the way to go. It gives businesses

a chance to test the water with new members of staff or maybe even a new venture.”

-Paul Stone, Sales Director, Cocoon Vehicles Ltd.

THE INSIGHT

Why consumers love leasing?

You can have an ownership experience without actually purchasing.

A longer test drive is needed before committing.

GREEN LIGHTS

CAR + 19% SALES TAX + BPM LUXURY TAX BASED ON NET VALUE OF VEHICLE

=

BE UP FRONT WITH COSTS AT DEALERSHIP&

PROVIDE ONLINE ESTIMATOR FOR VEHICLE MODELS

WHERE DO WE GO FROM HERE?

SOUVENIRS

Dubai Social assurance

The Netherlands

Up front in total costs

Spain Create “Purposeful Car” experience

Italy “The Man” behind

the brand - car personalities

MAP IT OUT (future research)

✤ Change in life stages impacting possible life cycles

✤ Attitudinal & behavioral changes that may indicate distinct phase in automotive life cycle

✤ Impact of economic shifts on car ownership beyond purchase

✤ Cultural dynamics between urban and rural car owners

✤ Differences in length of ownership

QUESTIONS? IDEAS?