December 12, 2013
Need to Know

auto_dealerships22 Today’s News in Context – Thursday, December 12

Hybrids Dri­ving Auto Mak­ers into Alliances & Partnerships

  • Nearly all 34 Vehi­cle Man­u­fac­tur­ers Oper­ate Some Form of Alliances
  • Badges look dif­fer­ent, but Engines, plat­forms, & designs are shared

Chrysler Can’t Make Mileage Man­date With­out Fiat

  • Jeep Chero­kee get­ting rave reviews despite SW for Transmission
  • Chrysler is con­cerned about meet­ing future fuel mileage requirements

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

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

Sil­i­con Val­ley Cyber­se­cu­rity Com­pa­nies Gain Big Investment

  • Cyber­crime and hacker attacks are mak­ing the Inter­net dangerous
  • Com­pa­nies, includ­ing auto deal­ers, suf­fer­ing losses

50-plus Peo­ple Work­ing Out to Drive Longer & Keep Driver’s License

  • Study says cer­tain work­outs help 50-plus adults to drive better
  • 4 types of exer­cise involv­ing strength train­ing & range of motion help

Will Ferrell’s Ron Bur­gundy Boosts Durango Sales 36%

  • Anchor­man 2 movie promo is sell­ing Duran­gos: Traf­fic is up 36% on Durango site.

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


VIDEO: Measuring Success in a Changing Internet Landscape

The Internet-based sales land­scape is always chang­ing. Luck­ily, NADA offers a manager’s group to show­case Inter­net man­agers who are win­ning online.

VIDEO: A Few Words from David Westcott
  NADA Chairman Speaks to Detroit Auto Press on CFPB

NADA Chair­man David West­cott deliv­ered a major speech to Detroit’s Auto­mo­tive Press Asso­ci­a­tion, dis­cussing the Con­sumer Finan­cial Pro­tec­tion Bureau (CFPB) and the essen­tial ser­vices pro­vided by fran­chised auto dealers.

VIDEO: Up-to-Date with Legislation
  Keep Staff Up to Date on Legislation

Keep your staff up to date on leg­is­la­tion and trans­late process to prof­its by enrolling staff in NADA’s online or on-site classes.

Dealer Pain Points

pp35_babies Family Leave is for More Than Childbirth

If you thought the Fam­ily Med­ical Leave Act is just for employ­ees who are going to have a baby, think again.

NADA Uni­ver­sity has a course on the sub­ject, and you can click for a video that briefly cov­ers your responsibilities.

Crook Insider Crime: How to Handcuff a Crook

A “trust but ver­ify” pol­icy with employ­ees at your deal­er­ship may save you a lot of money and headaches when it comes to a uniquely Amer­i­can phrase: The Five Fin­ger Dis­count. Act now before the police string up the yel­low crime scene tape at your store.

Click here to learn more.

mechanic Boosting Service Profitability

You ser­vice the vehi­cles you sell. Every­body gets that. But you have the best trained ser­vice tech­ni­cians in town. They can fix any­thing. Why not let them?

Click here to see a video that show­cases a deal­er­ship that uti­lizes its ser­vice techs tal­ent to the max.

Doing It Right  

Dri­ven Man­age­ment Guides

Now avail­able at NADA Uni­ver­sity Online, seven new or updated Dri­ven guides:

  • Parts Checkup: Per­for­mance Level Analysis
  • A Dealer Guide to Parts Inven­tory Management
  • A Dealer Guide to The Effec­tive Ser­vice Advisor
  • A Dealer Guide to Improv­ing Parts Inven­tory Efficiency
  • A Dealer Guide to the Fam­ily and Med­ical Leave Act
  • A Dealer Guide to Appraisal-to-Trade Ratios
  • A Dealer Guide to the OSHA Sin­gle and Multi-Piece Rim Ser­vice Rule

There’s no charge to NADA and ATD mem­bers for the guides! Non-members may pur­chase them for $20 each in the NADA U Store.

Upcom­ing Webinars

Click here to reg­is­ter for the last webi­nar of 2013, on Decem­ber 18: Haz­mat and You: Unwind the Acronyms, pre­sented by Char­lie Ayers of CCAR and Steve Hunt of Ship­Mate, Inc.

2014 NADA-ATD Con­ven­tion Workshops

New Orleans, Jan. 24–27: 100 speak­ers will present 64 work­shops in 174 excit­ing ses­sions and 7 work­shop tracks. To access the com­plete work­shop sched­ule, visit the NADA Con­ven­tion web­site and click on “Workshops.”

NADA ACADEMY Accept­ing Appli­ca­tions for 2014 Classes!

Go to to down­load sched­ules and appli­ca­tions for all pro­grams, or call 800.557.6232 for dates and availability.

READ MORE about the above-mentioned NADA Fea­tured Train­ing and Resources.


Build a Better Dealership

auto_dealerships22Dealer Alert: OEMs Making Management, Design, Pricing & Product Moves

Here is the Sit­u­a­tion as seen by your Dealer Digest Daily Press Corps:

Pickup up the Busi­ness sec­tion of the WSJ, Finan­cial Times, your strug­gling home town news­pa­per, or even Auto­mo­tive News– or go online –and you will see arti­cles and announce­ments in almost every daily issue about an OEM mak­ing some major change in some as aspect of their mar­ket pres­ence or orga­ni­za­tional structure..

Some Exam­ples of head­lines and fea­tured arti­cles in just the last week:

  • Nis­san Pins Hopes on a Man­age­ment Trio
  • Daim­ler Open to China Stake Sale
  • Mar­chionne Gains Room to Maneuver
  • VW Poised to rein in costs after sales growth stalls
  • Rolls-Royce & Mini Look into Mak­ing SUVs
  • Hyundai Bets on Gen­e­sis in Lux­ury Path

What does this mean to you & your deal­er­ship? READ MORE about how all these news devel­op­ments might impact your deal­er­ship, its sales, and prof­its – and maybe your job.

Smart Thinking - Pass It On  

A slip-up on the cir­cus high wire can be deadly; slip­ping up in parts will kill your profits.

Suc­cess­ful parts depart­ments keep enough of the right parts to meet con­sumer demand while avoid­ing the over­stock issues that can destroy your cash flow. To strike that per­fect bal­ance, it’s cru­cial to mon­i­tor a lot of daily and even hourly activ­ity in parts. Care­fully mon­i­tor lost sales—each lost sale. Should it have been a stock­ing part? Why wasn’t it one?

Ser­vice techs often ask for parts that are not in stock. Every minute that a ser­vice tech waits for a part to arrive is a minute when you’re los­ing money. If this sce­nario sounds strangely famil­iar, take a look at your DMS set-up. It may be out of date.

Active parts man­age­ment means:

  • Updat­ing re-order points
  • Adjust­ing phase-in and phase-out criteria
  • Prop­erly record­ing in the DMS when a requested part num­ber is not in stock

Be sure to record each demand in the DMS in the lan­guage that your inven­tory con­trol sys­tem speaks. If you don’t, that’s a lost oppor­tu­nity. KEEP READING to get started.

Instruc­tor Chris Bavis teaches Fixed Oper­a­tions Parts in week 2 of 6 in the NADA Acad­emy pro­gram. Reach him at Call 800.557.6232 or visit NADA Acad­emy o down­load the sched­ule and appli­ca­tions for all programs.

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