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May 17, 2012
Need to Know
INDUSTRY NEWS IN THE LAST 24

nissan_altima2013_2a Nissan Pits Altima Against Camry for Top Midsize Spot

As the first all-new 2013 Altima rolls off the pro­duc­tion line, Nis­san is hop­ing to outdo its biggest rival in the Amer­i­can mid­size sedan seg­ment – the Toy­ota Camry. Other com­peti­tors on Altima’s heels include the Honda Accord and Hyundai Sonata. But Altima is count­ing on its 38 mpg high­way rat­ing to bring cus­tomers in as dealer deliv­er­ies begin on June 26.


The Detroit Bureau - May 15, 2012
bmw2_ultimate_service2a BMW Promotes Service Campaign

The aver­age cost of yearly auto own­er­ship reached $8,776 per year last year, accord­ing to AAA, and BMW wants to bring in sales by tout­ing its owner ser­vice pol­icy, “Ulti­mate Ser­vice,” aimed at cost­ing own­ers less. A BMW spokesper­son says the new cam­paign is about set­ting the automaker apart in the after-market ser­vice and care depart­ment. Jesse Toprak says their top war­ranty com­peti­tor is Hyundai these days.


Media Post - May 14, 2012
iihs_top_safety_pick2a IIHS Selects Top 2012 Safety Picks

New 2013 mod­els from Hyundai, Chevro­let and Prius have earned the cov­eted Top Safety Pick sta­tus from the Insur­ance Insti­tute for High­way Safety. IIHS crash tests are even tougher than the fed­eral tests and fam­i­lies buy vehi­cles for their safety fea­tures. Top rat­ings went to the 2013 Chevro­let Mal­ibu Eco, the 2012 Hyundai Azera and the 2012 Toy­ota Prius c.


USA Today - May 15, 2012
VIDEO: Vehicle Delivery Assurance
Video news that moves people and ideas
kolb_scott_unitedroad

More Control With Ownership

Find out what Scott Kolb of United Road has in store for clients that want more assur­ance on how their vehi­cles are delivered.

kolb_scott_unitedroad More Control With Ownership
SCOTT KOLB United Road
Lyboldt_John_NADA University Keeping Education Relevant
JOHN LYBOLDT VP Dealer Operations, NADA
Gilmartin_Dave_Cars.com The New Car Market Strategy
DAVE GILMARTIN Director of New Car Strategy, Cars.com
VIDEO: Keeping Up Appearances
granados_robert_dealertrack
  Integrating New Presentation
 

Appear­ance is impor­tant and Robert Grana­dos explains a key neces­sity with web mer­chan­dis­ing, and in-store merchandising.


Click here to watch video
VIDEO: Cars and History
Ryan_Pat_FirstLook
  The Car’s Greatest Moment
 

Man­u­fac­turer sites cre­ate a lot of enthu­si­asm for the prod­uct, but deal­ers don’t cap­i­tal­ize off of this because they often dis­play online inven­tory in an unin­ter­est­ing, generic manner.


Click here to watch video




Dealer Pain Points
BY NADA UNIVERSITY

online sales success Restructuring for Online Sales Success

The Inter­net cre­ated a whole new game, one that con­stantly evolves and involves a lot more than your web­site. Is your team orga­nized to play? Do you have peo­ple to fill the new posi­tions on the field of play?

 Click here to see a video where a lead­ing expert dis­cusses restruc­tur­ing your store for online success.

Parts Department batting average What’s Your Parts Department Batting Average?

In base­ball, a player’s bat­ting aver­age is a key mea­sure of suc­cess. But while a .300 bat­ting aver­age is ter­rific in base­ball, that would be an awful per­for­mance for your parts department.

Click here for a video that will teach you how to mea­sure your parts depart­ments bat­ting aver­age, and how to spot clues that it could be doing a lot better.

really old inventory ROI: Really Old Inventory or Return On Investment?

What does a deal­er­ship have in com­mon with the pro­duce sec­tion of a super­mar­ket? Both want only fresh inventory.

Click here for a video where you’ll learn how to improve the pace of the “turn” of your used inven­tory and your return on invest­ment at the same time.

Doing it Right
HOW-TO'S BY INDUSTRY EXPERTS
Poof! Your Last Excuse Against Blogging Just Vanished

Nearly every cus­tomer ser­vice evan­ge­list preaches the value of blog­ging.  You see oth­ers blog­ging about their busi­ness and gen­er­at­ing leads. So what’s stop­ping you?

The #1 excuse deal­ers and their staff say is, “We don’t know what to write about.” Of course not, this is all new and writ­ing witty con­tent has never been in the job descrip­tions of any deal­er­ship personnel.

You have, at your fin­ger­tips, a gold mine. An untapped reser­voir of not only out­stand­ing sto­ries and con­tent but peo­ple to do it for you!  It’s your own employ­ees. Almost no deal­er­ship has a short­age of raw mate­r­ial for blogs. It’s chan­nel­ing the mate­r­ial that’s the hurdle.

For auto­mo­tive Social Media mar­ket­ing to reach its full poten­tial, there are suc­cess fac­tors (in this order) that must be present:

• Chang­ing cul­ture is hard work.  This shift began with the cus­tomer and we must adapt. Some of your sales­peo­ple will love the idea of cre­at­ing con­tent and you’ll get major push-back from oth­ers. Many will say, “I can’t write.” but writ­ing is actu­ally just writ­ing down what’s in your head. Start with cus­tomer FAQs–each one is a blog post.

• Help your peo­ple remain aware of con­tent oppor­tu­ni­ties. Sto­ries hap­pen on the front lines where the cus­tomers are–in your show­room and ser­vice drive. Edu­ca­tion and train­ing are in inte­gral part of cre­at­ing aware­ness. Knowl­edge helps your peo­ple rec­og­nize an oppor­tu­nity and not be afraid to use the tools to pub­lish it.

• Cap­ture con­tent in their for­mat of choice. Make it easy for your peo­ple to be inspired. Some pre­fer writ­ing, some pre­fer video.  Some might just want to write you a long email. Along the way, they’ll get accus­tomed to search­ing for con­tent and with so many of them doing it, your blog will soon be gen­er­at­ing traf­fic and leads in ways you never imagined.

Your Turn: What’s pre­vent­ing you from shift­ing to this “all in” cul­ture and get­ting more par­tic­i­pa­tion and results from employees?

Kathi Kruse is an Auto­mo­tive Social Media Expert, Blog­ger, Author, Speaker and Founder of Kruse Con­trol Inc. Reach out to Kathi through her con­tact page or by call­ing 714–251-6440.

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In the Know
SIGNIFICANT NEWS THIS WEEK

mazda_cx52aMazda Launches CX-5 Amid Pranks and Truffula Trees

Auto­mo­tive jour­nal­ists invited to the offi­cial launch of the Mazda CX-5 recently were in for a jolt – done in a rural loca­tion where the com­pany treated its audi­ence to rugged land­scape of High­land Scot­land, dot­ted with fake road signs like ‘next charg­ing point 225 miles away’ – all intended to make fun of elec­tric cars (which Mazda doesn’t have) and the inevitable range anx­i­ety. Was this necessary?

toyota_pixis_epoch2aToyota, VW Venture into Niche Vehicles

The Toy­ota Pixis Epoch, a micro-vehicle for the home mar­ket of Japan, and the Volk­swa­gen Sha­ran NEF, a com­pact emer­gency vehi­cle based on the Sha­ran mini­van, indi­cate the will­ing­ness of major automak­ers that once shied away from pro­duc­ing any­thing but global vehi­cles to ven­ture into niche vehi­cles designed for a spe­cific mar­ket. Not intended for the U.S. mar­ket, and wisely so – Amer­i­cans seek a more functionality.

tpms_logo2aNHTSA: Tires Can be Hazardous to Your Health

A gov­ern­ment study, based on crash data cov­er­ing a three-year period from 2005 to 2007, prompted the warn­ing that “tire prob­lems are inher­ently haz­ardous to vehi­cle safety.” Specif­i­cally, under­in­flated tires pose an espe­cially high risk of caus­ing a prob­lem, says the agency. Recent laws man­dated all vehi­cles be equipped with tire-pressure mon­i­tor­ing sys­tems (TPMS) but false alerts have caused motorists to ignore the warn­ing. Bot­tom line: check those tires!

Smart Thinking – Pass it On
AUTO DEALERS SALES & MARKETING
Looking for a Strategy to Differentiate You From Other Dealers?

If that’s the case, it would be “smart” to check out United Road’s Dealer Link — CLICK HERE TO READ THE FULL DOCUMENT!

Stream­line your online mar­ket­ing, enhanc­ing your web­site by mak­ing it a “one stop shop” where users can buy and ship a car in one easy step.

Min­i­miz­ing the need for cus­tomers to go else­where for ser­vices helps improve reten­tion and close rates.

Avail­able bundling of ser­vices and poten­tially financ­ing to pro­vide a sin­gle one cost solu­tion to the customer.

As the Nations largest auto­mo­tive logis­tics provider we bring cred­i­bil­ity and rep­u­ta­tion to your ship­ping ser­vice offering.

With addi­tional cross-marketing oppor­tu­ni­ties we pro­vide even more incen­tive for your cus­tomers to visit your web­site and ulti­mately pur­chase from you!

How Does it Work?

  • United Road IT pro­vides the html code to insert in your web site – you just have your IT team copy and paste it in!
  • The link will launch our quote engine and pro­vide your cus­tomer with ship­ping options as well as the abil­ity to place the order directly on line!
  • No invest­ment on the deal­er­ships part to get started in the part­ner­ship with us.
  • Con­tribute a pre­de­ter­mined per­cent­age of our over­all profit directly back into the deal­er­ship or pass­ing along sav­ings to your customers.
  • Optional client brand­ing avail­able to dealers.
  • Stream­lined billing and con­sol­i­dated invoic­ing avail­able – or your cus­tomer pays direct.

And MORE! There are sev­eral addi­tional options for inte­gra­tion depend­ing upon your require­ments and marketing/sales strategy.

Across the city or across the coun­try, United Road is dri­ven to deliver! Call us at 734.947.7900.

 

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Dealer Compliance Issues & Answers

minimumWage Minimum Wage

The fed­eral min­i­mum wage pro­vi­sions are con­tained in the Fair Labor Stan­dards Act (FLSA). The fed­eral min­i­mum wage of $7.25 per hour became effec­tive July 24, 2009. Many states also have min­i­mum wage laws. Some state laws pro­vide greater employee pro­tec­tions; employ­ers must com­ply with both.

Visit the Com­pli web­site for more infor­ma­tion on this subject.



compliSupport Compli Dealership Programs

With ris­ing wage and hour claims and increas­ing employ­ment reg­u­la­tory require­ments, stay­ing com­pli­ant will all rel­e­vant statutes and reg­u­la­tions can be a daunt­ing task. Com­pli sim­pli­fies wage and hour man­age­ment by automat­ing crit­i­cal ADA and FMLA poli­cies, forms and trainings.

Visit the Com­pli web­site for more infor­ma­tion on deal­er­ship spe­cific wage and hour pay plans.



Minimum Wage and DOL Audits
HOW-TO'S BY INDUSTRY EXPERTS
Department of Labor

Min­i­mum wage is $7.25 an hour and when the Depart­ment of Labor comes in, they’re just enforc­ing the fed­eral law.  So if you’re in a state that has a higher min­i­mum wage, the DOL is not going to be con­cerned with whether or not you’re pay­ing the per­son appro­pri­ately under the state law.  Under­stand, though, that in any cir­cum­stance when­ever there are two sets of laws that apply to your busi­ness – a state and a fed­eral law, and even a local law – you always want to com­ply with the one that’s the most favor­able to the employee.  Under­stand that many states and local­i­ties have higher min­i­mum wages – so you want to make sure that your deal­er­ship pays that.

A lot of times, issues with min­i­mum wage hap­pen with­out the employer’s knowl­edge.  Many times, employ­ers make deduc­tions from an employee’s pay – this might be for uni­forms or clean­ing charges, or other things – that might have some ben­e­fit to the employer, as opposed to the employee.

When you bring employ­ees down below min­i­mum wage, when they are enti­tled to min­i­mum wage, then you run into an issue.  This is com­mon with sales peo­ple who work for car deal­er­ships:  they are exempt from over­time, but they’re not exempt from min­i­mum wage.  But most of these folks that are in these posi­tions are paid on a com­mis­sion basis.  And so it’s not gen­er­ally in the employee’s inter­ests to record the hours that they’re work­ing.  When the Depart­ment of Labor comes in, they want to see the records show­ing the hours they worked – so that your deal­er­ship can estab­lish that the amount those employ­ees received in com­mis­sions is enough to cover their hours worked times the min­i­mum wage.

This is a huge area to pay atten­tion to.  If you are not pay­ing atten­tion, you want to make sure that if your deal­er­ship has employ­ees who are work­ing on com­mis­sion, that work in a retail estab­lish­ment, even though it is on com­mis­sion, they still have to be paid a min­i­mum wage.

There is much more to learn on this topic, and we will be cov­er­ing the issue of Depart­ment of Labor com­pli­ance in the weeks to come. Mean­while, visit the Com­pli web­site to learn more.

 

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Events & Webinars
nada_logo_ncds_1_8_2008-12_47_pm.gif
Webinar: NADA University Now Offers Legal/Regulatory Webinars

* Dealer may also extend ben­e­fit to professionals *

NADA Uni­ver­sity, the edu­ca­tion and train­ing arm of the National Auto­mo­bile Deal­ers Asso­ci­a­tion (NADA), is now offer­ing all of its legal and reg­u­la­tory webi­nars – live and on-demand — at no cost to NADA and Amer­i­can Truck Dealer mem­bers and their staffs as an added mem­ber­ship benefit.

autobytel2a_2_24_2010-11_00_am.jpg
Webinar: Car Dealer Training

Coach­ing is a ser­vice Auto­by­tel pro­vides to assist deal­ers with con­sult­ing and guid­ance to get more qual­i­fied leads to the show­room floor. Learn to under­stand the psy­chol­ogy of the inter­net cus­tomer. Read more about Auto­by­tel Dealer Train­ing.

Intelligent Vehicle
DRIVING TECHNOLOGY IN AND AROUND THE VEHICLE
Technology Limitations
For all of our progress in adding communication technology to our cars, sometimes we need help

The trend these days is to load as much tech­nol­ogy into our cars and trucks as pos­si­ble. Dri­vers want to be con­nected at all times and to obtain direc­tions or other infor­ma­tion at a whim. But for all of the new gad­gets, some­times the tech­nol­ogy fails to live up to the hype and we need to talk to a real, live human being.

You’ve seen the tele­vi­sion ad, where some poor, clue­less guy must rely on his daugh­ter, sit­ting in her booster seat in the back­seat, to remind him of his wed­ding anniver­sary. Haven’t we all been there? Our hap­less dad, how­ever, does not panic. He sim­ply presses a but­ton on his Infiniti’s info­tain­ment sys­tem. He is instantly in con­tact with an oper­a­tor. The oper­a­tor is able to con­firm a din­ner reser­va­tion at the wife’s favorite restau­rant for that evening. Magic!

Wasn’t tech­nol­ogy sup­posed to make the human oper­a­tor obso­lete? Infiniti and Hyundai found that our tech­nol­ogy still has a few holes. Voice recog­ni­tion has come a long way, but the bet­ter the tech­nol­ogy got, the more we wanted. There are still prob­lems. The soft­ware some­times does not under­stand the per­son ask­ing a ques­tion. They can­not take infor­ma­tion and act on it, like mak­ing a din­ner reser­va­tion. Also cabin acoustics can be poor, result­ing in gar­bled communication.

Infiniti and Hyundai have adopted OnStar–like sys­tems that for a monthly fee will resolve these tech­ni­cal short­com­ings. For now, it is still pos­si­ble to talk to another human.

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Hitting the Links
DAILY CLICKS TO INCREASE DEALER REVENUE & PROFITS

open_roadNew Finished Vehicle Logistics


United Road is the country’s largest providers of fin­ished vehi­cle logis­tics, deliv­er­ing over 1.8 mil­lion vehi­cles from assem­bly plants, ports, rail dis­tri­b­u­tion cen­ters, auc­tions, deal­er­ships, and pri­vate res­i­dences across all mar­kets. EDI capa­ble with all domes­tic and global man­u­fac­tur­ers, our national qual­ity per­for­mance exceeds the goal set by most man­u­fac­tur­ers. Get a quick quote now!

trainingRequirementsAudi of America Partners with NADA to Achieve ‘Customer Delight’


“Audi of Amer­ica is very proud to be the first automaker to part­ner with NADA Uni­ver­sity that includes not only the OEM staff but takes it to a new level by mak­ing the edu­ca­tional offer­ings avail­able to all employ­ees of the Audi dealer net­work,” said Rein­hard Fis­cher, direc­tor of strat­egy, Audi of Amer­ica. “It’s a […]

nada_jd_power2aNADA, J.D. Power Team Up for LA Auto Conference


The National Auto­mo­bile Deal­ers Asso­ci­a­tion (NADA) in part­ner­ship with J.D. Power and Asso­ciates announced the cre­ation of the West­ern Auto­mo­tive Con­fer­ence, which will be held at the Bilt­more Hotel on Nov. 27, 2012. Press days at the auto show run from Novem­ber 28–29. For more infor­ma­tion, visit www.nada.org or fol­low NADA on Face­book.

In the Service Lane
BRINGING SALES INTO SERVICE AND SERVICE INTO SALES
Aging Cars Opportunity for Dealers

The reces­sion of 2007 and the extremely slow recov­ery may be hid­ing an impor­tant oppor­tu­nity for deal­ers. With the issues of tight credit, mort­gage fore­clo­sures, unem­ploy­ment and high gas prices fac­ing many Amer­i­can con­sumers, new car sales hit near record lows. Sales of new cars and trucks have only in the past sev­eral months begun to improve. As a result the aver­age of vehi­cles on Amer­i­can roads has reached a record 10.8 years.

The oppor­tu­nity for deal­ers is that dri­vers must keep these older cars in work­ing order. In a sig­nif­i­cant increase over pre-recession lev­els, 59% of con­sumers buy­ing auto­mo­tive after­mar­ket prod­ucts say they are for vehi­cles of eight years or older with 19% for vehi­cles 15+ years old, accord­ing to a sur­vey by Polk. For the fore­see­able future NPD Group believes this trend will con­tinue despite improved new vehi­cle sales.

Deal­ers who mar­ket to the own­ers of older vehi­cles stand to benefit.

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Getting on the Green
ENVIRONMENTALLY RESPONSIBLE DEALERSHIPS AND OEMS
CAFE Standards: The Unintended Consequences

It’s always the unin­tended con­se­quences that get you! As an illus­tra­tion of this piece of wis­dom, the Fed­eral Gov­ern­ment has real­ized that new CAFE stan­dards will have the effect of dras­ti­cally low­er­ing the amount of money col­lected by the U.S. Trea­sury from the gaso­line tax. They esti­mate that increas­ing fuel effi­ciency of cars and trucks on Amer­i­can roads will result in $57 bil­lion less in taxes col­lected through 2015.

Last sum­mer the Admin­is­tra­tion pro­posed rais­ing fuel effi­ciency stan­dards to 54.5 mpg by 2025. Automak­ers signed on to these new CAFE stan­dards and will need to offer con­sumers addi­tional elec­tric vehi­cles, hybrids and other tech­nolo­gies to meet these stan­dards. As Glo­ria Bergquist from the Alliance of Auto­mo­bile Man­u­fac­tur­ers points out, “There are always pol­icy trade-offs for CAFE standards.”

Cur­rently the Trea­sury col­lects an excise tax of 18.4 cents on every gal­lon of gas sold to con­sumers at the pump and 24.4 cents for diesel fuel. In addi­tion most states col­lect a gas tax with Cal­i­for­nia the high­est at 7.25%. The tax rev­enue col­lected by the U.S. Trea­sury goes into the High­way Trust Fund which is then spent by Con­gress by way of a bi-annual Trans­porta­tion Appro­pri­a­tion Bill.

Esti­mates are that the gas tax would need to be increased by 5 cents per gal­lon to make up for the shortfall.

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