December 13, 2013
Top News Rewind

auto-dealership The Week’s Top Automotive News — Dec. 13, 2013

Indus­try Ana­lysts Love Mary Barra as GM Leader & Engineer

  • Edmunds Krebs says Barra an “Extremely com­pe­tent executive.”
  • Edmunds’ Vis­nic  says “New era with the choice of an engineer.”
  • Kelley’s Brauer – “Mary has the con­fi­dence of GM Board & is leader.”

Shop­pers 20% More Likely to Click on Vehi­cle List­ings with Video

  • Deal­ers are effec­tively using video to sell cars
  • Half of shop­pers view at least 30 min­utes of video prior to purchase

Would You Accept Bit­Coin Cur­rency for New Car Purchase?

  • Cus­tomers using hot new cur­rency in cof­fee shops & online
  • MSNBC reported that a cus­tomer used Bit­Coins to buy a Tesla

Four Rea­sons More Cars are Being Built in Mexico

  • Low labor costs – like $2.50 per hour
  • Close to U.S. –Nearly 70% of Mex­ico exports go to U.S.

Honda Bites on Pump­ing Up Sales with Cash Back Offers

  • Honda’s weak sales in Novem­ber caus­ing Decem­ber push
  • Has not offered big incen­tives – only $1,846 in November

Be the Smartest Per­son in the Room: get more in-depth (but still fast) run­down of the above-mentioned sto­ries RIGHT HERE.


VIDEO: A Fast, Smart Way to Assess Vehicle Values

Black Book offers a smart and fast way to deal with loss fore­cast­ing, orig­i­na­tions, and over­all port­fo­lio management.

SLIDESHOW: Beggs on the Used Car Market
Beggs_Ricky_site visit
  Smaller Changes During Traditional Softness

Ricky Beggs, Edi­to­r­ial Direc­tor at Black Book, digests what has been hap­pen­ing with the used car mar­ket since Black Fri­day. Click to learn more.

BLOG: Green Auto Market
  GenYers Want Driverless Cars / Best in Fuel Economy

Accen­ture recently con­ducted a sur­vey find­ing that young GenY con­sumers are very much into tech­nolo­gies nec­es­sary for cre­at­ing dri­ver­less cars. As a young man said to me recently, he would pre­fer doing some­thing else dur­ing the mobil­ity expe­ri­ence rather than dri­ving — watch­ing movies, gam­ing, tex­ting, and just kick­ing back — all of that sounds bet­ter than being enslaved by the steer­ing wheel. And, for those fol­low­ing fuel effi­cient and alter­na­tive fuel vehi­cles, two news items came out this past week that were worth pay­ing atten­tion to.

Dealer Pain Points

50-Person-with-Hamburger Time Wasters That Kill Service Profits

Do you put the ketchup on a burger before you cook it? Of course not. There’s a sequence to prepar­ing the burger and adding the fixings.

Ser­vice and parts depart­ments have their own sequence but some are out of whack. Watch this video and we’ll show you how improve pro­duc­tiv­ity and prof­its with advice on how to ensure you’re struc­tured for success.

49-Tech-working-on-engine-1024x576 Poor Parts Profits? Here’s the Fix.

You can’t rack up prof­its in ser­vice with­out parts. But too many deal­er­ships have too many parts that are obso­lete and quickly declin­ing in value, if not almost worthless.

Watch this video to find out how to sew up that hole to ensure that your pocket for parts is profitable.

Behind the Numbers  

Ricky Beggs wants to know: Are lower gaso­line prices caus­ing smaller used cars to see a big price drop?

Dur­ing the sum­mer and into the early fall, Ricky Beggs, Edi­to­r­ial Direc­tor at Black Book, was notic­ing that the typ­i­cal gas-price-to-small-car used vehi­cle value ratio was off kil­ter. Now it’s look­ing to fall in line with more typ­i­cal remar­ket­ing patterns.

Black Book just reported that Entry-Level Cars have depre­ci­ated –16.6% over the past year, and Entry Mid-Size Cars have dropped –16.9% dur­ing that same time. These have been the largest change lev­els of all car and truck segments.

As for gas prices over the past year, they’ve dropped from a high of $3.78 on Feb­ru­ary 25 to a cur­rent level of about $3.29.

There are some big ques­tions to be answered.…. Read all about it……


Build a Better Dealership

millennials_car_buying22Are You Ready to Capitalize on the Millennial Mindset?

The Back­story:

Auto­mo­tive deal­ers are being told to give up on Mil­len­ni­als, that group that encom­passes 18-to-34-year-olds, because they aren’t going to buy a car any­time soon. The truth is, you’re being mis­in­formed —because Mil­len­ni­als do what they want to do, and if they want a new car, you’d bet­ter be pre­pared to be on the front line.

The Sit­u­a­tion for Dealers:

Mil­len­ni­als have seri­ous pur­chas­ing power – about $170 bil­lion a year – accord­ing to a Com­Score report, but they aren’t fol­low­ing through on that power…yet. Auto­mo­tive deal­ers should be buy­ing into that pur­chas­ing power with strong dig­i­tal com­mu­ni­ca­tions that tap into Mil­len­ni­als where they make con­tact – through their mobile devices!

Deal­ers: Arm your­self with the strat­egy and know-how to deal with Mil­len­ni­als at the level they’re at – drill down and find out what you need to do to sell cars to the Mil­len­nial gen­er­a­tion right now!

Doing It Right  
Do or Do Not. There is No Try.
4 Rules for Responding to Angry Customers

In busi­ness, you are what you are per­ceived to be.  Your cus­tomers not only have their own opin­ions of your busi­ness, but they can also influ­ence other poten­tial cus­tomers. How you actu­ally run your busi­ness is cer­tainly impor­tant. Just as impor­tant, how­ever, is how cus­tomers that have never stepped foot in your busi­ness per­ceive you.

Before they ever step foot into your busi­ness, many con­sumers will research it online. Every sin­gle web­site that con­tains feed­back from other con­sumers about your busi­ness will help shape their per­cep­tion. Every review they read; Every com­ment on your Face­book page; What peo­ple are say­ing about you on Twit­ter; All of these will con­tribute to form a busi­ness pro­file for these new customers.

Most busi­nesses nowa­days under­stand the impor­tance of mon­i­tor­ing com­ments and reviews for prob­lems. Some will out­source this mon­i­tor­ing. Some will do it them­selves. Regard­less of who does it, if it’s not done prop­erly, you can do more dam­age than if you had done nothing.

Most of these upset cus­tomers can be dif­fused if the sit­u­a­tion is han­dled prop­erly. And a proper and appro­pri­ate han­dling will also show poten­tial cus­tomers that you care and are pay­ing attention.

Sara Calla­han, Carter­West PR pro­vides a few sim­ple guide­lines that you should take to effec­tively com­mu­ni­cate with, and dif­fuse, angry cus­tomers online.

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