November 20, 2013
Need to Know

ethanol22 EPA Proposal Set to Cut Ethanol Mandate

The Envi­ron­men­tal Pro­tec­tion Agency wants to reduce the amount of ethanol and other bio­fu­els the cur­rent law ini­ti­ated in 2007 requires to be blended with gasoline.

Learn more about the EPA’s rever­sal in its ethanol man­date. [More]

Green Car Reports
los_angeles_auto_show22 Auto Shows: Reflection of Economic Mood

Automak­ers will unveil at least 56 new mod­els at the Los Ange­les Auto Show, includ­ing 22 world debuts, in another indi­ca­tor of the industry’s broader recovery.

The num­ber of new mod­els and world debuts is indica­tive of the eco­nomic upswing. [More]

Detroit Free Press
nissan-3E-glasses-db02 Nissan to Offer Cyborg ‘Infotainment’ Tool

Nis­san has adver­tised a set of in-car info­tain­ment glasses – even as Google is sur­rounded by con­tro­versy over the Google Glasses. Is it street legal? Do we really need Nis­san 3E?

But you may want to watch the Nis­sanbirthing video” any­way! [More]

Digital Trends

VIDEO: Dealers Increase Focus on Customers

Dealer sales man­age­ment and auto­mo­tive lenders are seek­ing to find, under­stand, and do bet­ter with the sales and financ­ing process sur­round­ing the sale of a vehi­cle. By focus­ing even more one the cus­tomer, deal­ers are con­tin­u­ing to real­ize the value of each cus­tomer and how this level of ser­vice and com­mu­ni­ca­tions affects prof­its, ser­vice, refer­rals and total sales vol­ume of the dealership.

BLOG: Automotive Digestibles
  Have Dealers Had Enough of New Mouse Traps, Evangelical Trainers, Etc.?

The Sit­u­a­tion: Have you had enough? In lis­ten­ing, infor­mally sur­vey­ing, and observ­ing what is hap­pen­ing with dealer adop­tion of ven­dor sys­tems, sales pitches, mag­a­zine mar­ket­ing, and con­stant con­fer­enc­ing – not to men­tion how-to arti­cles by eager con­sul­tants, train­ers, and hun­dreds of sales­peo­ple – one can begin to con­clude that dealer man­age­ment & their team are “maxed” out on the appli­ca­tion of tech­nol­ogy sys­tems, overnight trans­for­ma­tion of their sales teams and the day-to-day man­age­ment of a typ­i­cal deal­er­ship in general.

Click here to read more
VIDEO: KBB's Name Builds Confidence
  The Confidence to Buy

Kel­ley Blue Book lever­ages it’s name to increase a customer’s con­fi­dence to the point where they will move offline and pur­chase from a dealer.

Click here to read more

Dealer Pain Points

magic Magic of Disappearing Profits

Magic acts are for the circus—not your deal­er­ship. Every­one knows they’re not cut­ting a woman in half but you won­der, “How did they do that?”

Do you have magi­cians mak­ing prof­its “dis­ap­pear” in the ser­vice department?

You can find out and cor­rect it.

Click here to learn more.

Bermuda trianle swallows parts profits Bermuda Triangle Swallows Parts Profits

Whether through theft, fraud or sim­ply poor prac­tices and processes, it’s easy for prof­itabil­ity to erode in the ser­vice department.

But when it hap­pens, it’s a stealth attack. No alarms blare. No one dials 9–1-1. In fact, nobody notices a thing.

Click to learn more.

Free inspections the cure for low service sales Free Inspections: The Cure for Low Service Sales

When peo­ple go to the doctor’s office, they get a free inspec­tion, which some­times results in more tests and reme­dies, and bet­ter health out­comes. Plus, the nec­es­sary addi­tional work increases the doctor’s revenue.

The same process in your ser­vice lane can increase rev­enues and cus­tomer satisfaction.

Click here to learn more.

Doing It Right  

Many deal­ers with their eye mainly on com­pli­ance, set up a Red Flags Pro­gram that cre­ates a “look, I tried” paper trail. But the real cost when some­one dri­ves away with a vehi­cle, is to the dealer. And what might pos­si­bly prove ade­quate processes to the FTC, isn’t ade­quate to actu­ally pro­tect against today’s ID scam­mers at dealerships.

“The ID thieves hit­ting deal­er­ships today are super-sophisticated and so is their tech­nol­ogy. But dealer ID ver­i­fi­ca­tion processes aren’t. With all that end­less pho­to­copy­ing, barcode-scanning and ver­i­fi­ca­tion call­ing, they have remained in the Dark Ages, pow­er­less against this fast-growing and incred­i­bly costly prob­lem,” said Pete MacIn­nis, CEO of Deal­er­Centric. “ID Drive may be small and sit on a desk, but it’s the most potent anti-fraud and test-drive secu­rity solu­tion ever invented for dealerships.”

Deal­ers need to adopt tech­nol­ogy – and extreme tech­nol­ogy — to fight the fake ID wave. If deal­er­ships made every test-driver – and every per­son that walks into their store – sim­ply swipe their license/ID at such a state-of-the-art scan­ner, ID fraud would be rad­i­cally reduced.

The tech­nol­ogy is here. How does it work?

Behind the Numbers  

Ser­gio Mar­chionne, chief exec­u­tive of Fiat and Chrysler, is count­ing on a merger of the two com­pa­nies as Fiat’s finan­cial per­for­mance gets hit.

Fiat’s third quar­ter prof­its were hurt, but Chrysler had strong results.

Mar­chionne would like to see the two com­pa­nies merge to bet­ter com­pete with global majors GM and Volk­swa­gen.

His efforts have been under­cut by union health­care trust Veba, which owns 40.5% of Chrysler not held by Fiat; Veba wants to see an ini­tial pub­lic offer­ing that Mar­chionne would rather avoid.

Mar­chionne has been cred­ited for cre­at­ing a part­ner­ship and inte­gra­tion between Fiat and Chrysler, avoid­ing the mess that hap­pened not long ago with Daim­ler not treat­ing Chrysler as an equal part­ner. Read all about what’s next for the Fiat and Chrysler merger.

Build a Better Dealership

bad-credit-scoreWhy Should You Care About Five Subprime Auto Loan Predictions?

Just as pay­day lend­ing evolved to bet­ter meet the needs of the under­banked, so will auto lend­ing change to meet the needs of non-prime customers.

That indus­try is large, it’s grow­ing, it’s incred­i­bly frag­mented, it’s inef­fi­cient, it’s lop­sided (the house mostly wins), and it’s one of the largest yet worst con­sumer finan­cial experiences.

New tech­nol­ogy, new busi­ness mod­els and new reg­u­la­tion rep­re­sent an enor­mous oppor­tu­nity for incum­bents and entre­pre­neur­ial thinkers to cre­ate a more effi­cient and more trans­par­ent marketplace.

Here’s what we could see in five years…

Smart Thinking - Pass It On  
Transforming Your Dealership with the Right Lighting

At Issue:

At Michael Jor­dan Nis­san in Durham, NC, folks were con­stantly replac­ing bulbs and bal­lasts and tol­er­at­ing the color shift­ing lights that made the deal­er­ship inven­tory look incon­sis­tent – all while pay­ing a pre­mium price to run and main­tain them.

“There’s noth­ing worse than cus­tomers walk­ing out into a dark lot to look at a new car and they can’t see.” – Man­ag­ing Part­ner Ray Vrscak

When Michael Jor­dan Nis­san decided to update their deal­er­ship with new light­ing, they had no idea how sig­nif­i­cant the improve­ment would be. Drill down fur­ther to find out what improve­ments took place and how the same ben­e­fits can be applied to your dealership!

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