January 23, 2014
Quick Reads: Six in 60
TODAY'S TOP 6 STORIES, IN 60 SECONDS

crash 1. Subcompacts Fail Institute’s Crash Test, with Poor Grades

  • Of the 11 tested, only the Chevy Spark gained “accept­able” rating
  • None of other 10 sub­com­pacts earned even a “good” mark
  • Honda Fit and Fiat 500 were worst performers

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Los Angeles Times
cadillac-ats 2. Cadillac’s Inventory Glut Makes Global Sales Numbers Challenging

  • Cadil­lac seeks to triple global sales in next 10 years
  • But will have to clear out 105-day dealer inven­tory first
  • Sales grew 22% last year with new prod­uct announcements

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Wall Street Journal
pinterest-reader 3. Pinterest to Sell Ads, Giving Dealers Another Media Channel

  • Scrap­book site has expanded it quirky model into social media
  • Hopes to start gen­er­at­ing rev­enue this year
  • Must build an ad busi­ness to under­write rapid growth
  • Peo­ple, par­tic­u­larly women, inter­act with pins and interests
  • Deal­ers can reach women through Pin­ter­est model

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Wall Street Journal
coats-jeff

VIDEO: Year 2013, Setting Up 2014

Over­all, 2013 was a great year for deal­ers and the indus­try in gen­eral. Con­sumer demand for new and used vehi­cles con­tin­ued to grow through­out the year for both new and used vehi­cles. Pent up demand and the need to replace aging vehi­cles and the come­back of auto finance lead set the tone and direc­tion for 2014.

VIDEO: New Ways to Shop for Cars
pechstein-scott
  Car Shopping is Changing
 

One of the ways car shop­per behav­ior is chang­ing is that nearly all con­sumers are going to the Inter­net for vehi­cle infor­ma­tion. Just as deal­ers sought to have a “bullet-proof” process for get­ting con­sumer prospects in the show­room, now they need the same solid process to get con­sumers to their websites.

VIDEO: At NADA 2014 in NOLA
pechstein-nada
  Check Out Autobytel’s Booth at NADA 2014
 

Deal­ers attend­ing and walk­ing the floor at NADA this year are invited to make an appoint­ment to setup a demo of Autobytel’s Mobile, iCon­trol, Sale­Move, and meet the new com­bined AutoUSA and Auto­by­tel teams in the booth.





More Six in 60
MORE OF TODAY'S TOP 6 STORIES

ferrari 4. Classic Car Auction Clean Up, with Scottsdale Sales of 2,321 Vehicles

  • Sales of clas­sic and high-end Fer­raris set sales record at annual car sale
  • Nearly $249 M in rare and clas­sic cars were sold in Scottsdale
  • Barrett-Jackson, Good­ing, RM and Bon­hams were sell­ing in volume

GET MORE INFO

Marissa 5. Yahoo Still Working on Advertising Model, Including Dealer Marketing

  • Yahoo los­ing mar­ket share and razzle-dazzle in dig­i­tal mar­ket­ing market
  • Whiz bang tech­nol­ogy announce­ments & Alibaba wear­ing off
  • Has allowed rela­tion­ships with adver­tis­ers & agen­cies to deteriorate

GET MORE INFO

New-Car-Buyer 6. Auto Lending Has Strongest Origination Volume in Eight Years

  • Auto delin­quen­cies have declined to lev­els last seen in mid-2006
  • More credit is widely avail­able to those with higher-risk credit  sub­prime borrowers
  • Con­sumer choices and vehi­cle demand for new cars is rising

GET MORE INFO

Doing It Right  

What does the acqui­si­tion mean to deal­ers?
The trans­ac­tion sig­nif­i­cantly expands Autobytel’s Dealer Net­work, will bring a full suite of new dealer sales and mar­ket­ing tools, and is expected to deliver more ser­vices, more prod­ucts and mean­ing­ful increases in rev­enue and cash flow for man­age­ment and the investors.

This is some of what Auto­by­tel Man­age­ment had to say about the deal:
 “AutoUSA rep­re­sents an out­stand­ing fit with Auto­by­tel. In addi­tion to its core leads busi­ness, AutoUSA’s suite of com­ple­men­tary third-party, Web-based ser­vices includes payment-based pre-qualification tools, incen­tive pro­grams and other prod­ucts and ser­vices designed to help dealer cus­tomers and man­u­fac­tur­ers increase their sales.”

The Addi­tional Resources & Tools for Dealer:
Auto­by­tel said the acqui­si­tion expands its reach and influ­ence in the indus­try by increas­ing its national new and used car dealer net­work to more than 5,200 from approx­i­mately 3,800, while boost­ing its busi­ness with auto man­u­fac­tur­ers. It also enables the com­pany to offer its new mobile and Sale­Move prod­ucts to a larger cus­tomer base, while con­tin­u­ing to build on rela­tion­ships with OEMs and large dealer groups, includ­ing the Auto­Na­tion fam­ily of dealers.

The AutoUSA Team & Ser­vices are join­ing Auto­by­tel:
The great news is that Phil DuPree, Pres­i­dent of AutoUSA, has joined Auto­by­tel as Exec­u­tive Vice Pres­i­dent, Pres­i­dent of Dealer Ser­vices with the pos­si­bil­ity of mov­ing to Cal­i­for­nia. AutoUSA rep­re­sents an out­stand­ing fit with Auto­by­tel. In addi­tion to its core leads busi­ness, AutoUSA’s suite of com­ple­men­tary third-party, Web-based ser­vices includes payment-based pre-qualification tools, incen­tive pro­grams and other prod­ucts and ser­vices designed to help dealer cus­tomers and man­u­fac­tur­ers increase their sales.

To get more info and back­ground on this major indus­try devel­op­ment, read the orig­i­nal Auto­by­tel press release.

Want more info? Keep reading!

 
 



Build a Better Dealership
SMART INSIGHTS FOR SMART DEALERS

Chrysler Jeep Dodge dealer lotAuto Sales Return to Pre-Meltdown Days – But How Long Will It Last?

What a great year for auto sales in 2013 – the best since 2007 before it all plum­meted with a gaso­line price spike and eco­nomic meltdown.

Ana­lysts and indus­try exec­u­tives do see growth com­ing this year.

Light-duty pick­ups and sport-utility/crossover vehi­cles saw a very strong year. That should continue.

Incen­tives have been restrained and that may continue.

Chrysler is see­ing bet­ter times as Fiat answered the own­er­ship ques­tion – and its credit rat­ing has improved.

Ana­lysts will be watch­ing how the mar­ket per­forms this year and next – if this growth con­tin­ues, flat­tens out, or reduces.

Here are a few trends that auto ana­lysts are watch­ing to see how the mar­ket per­forms in 2014 and beyond…..

  1. Ana­lysts and indus­try exec­u­tives do see growth com­ing this year – up to about 16M new vehi­cles expected.
  2. Light-duty pick­ups and sport-utility/crossover vehi­cles saw a very strong year. That should con­tinue. New pickup truck mod­els are rolling out, which is expected to strengthen inter­est in the prod­ucts. Gaso­line prices aren’t expected to increase by very much this year, which should help light-duty truck sales.
  3. Incen­tives have been restrained and that should con­tinue. Much of it came through very com­pet­i­tive lease deals in 2013. With a high vol­ume of off-lease units com­ing back to remar­ket­ing chan­nels this year, much atten­tion will be given to how new vehi­cle leases will be incentivized.
  4. See more of the Top Trends for 2014 and beyond…..

Smart Thinking - Pass It On  
CASE STUDY

GE Light­ing helped high­light the 350 vehi­cle inven­tory at a dealer’s new location.

Suc­cess Story:  Kia AutoSports of Colum­bus, GA

The Deal­er­ship:
When Mon­roe Lee, owner of KIA AutoSport, began design on a new KIA deal­er­ship in Colum­bus, Ga., he inves­ti­gated light­ing solu­tions that deliv­ered bright, high-quality light while help­ing to reduce energy con­sump­tion in one of the facility’s key areas: dealer lots.

The Sit­u­a­tion:
Out­door light­ing in lots is one of the most impor­tant areas to con­sider when upgrad­ing auto dealer light­ing, as it is often the first impres­sion cus­tomers see when enter­ing the facil­ity, as well as one of the largest users of elec­tric­ity at a dealership.

The Solu­tion:
After review­ing light­ing options, Lee chose GE’s Evolve™ LED Area Lights rec­om­mended by Geor­gia Power for their reduced energy con­sump­tion, long rated life and sleek design.

• Sixty-nine 202-watt Evolve LED Area Lights were mounted on 30 25-foot poles, with a com­bi­na­tion of one, two and four fix­ture mount­ings per pole.

• GE’s out­door LED light­ing fix­tures at KIA AutoSport have a cor­re­lated color tem­per­a­ture (CCT) of 4000K and a color-rendering index (CRI) of 70.

“The new LED light­ing show­cases the cars indi­vid­u­ally, and really high­lights the color of the vehi­cles on the lot,” con­tin­ued Lee. “Plus, GE’s thin Evolve light­ing fix­tures have a more ele­gant look com­pared to bulky metal halide fixtures.”

The Results:
“When com­pared to a sim­i­larly sized deal­er­ship that I built five years ago using metal halide fix­tures, it appears I’m sav­ing between 20–33 per­cent on energy costs as a result of the LED light­ing,” Lee explained. “I have had no main­te­nance with the light fix­tures since instal­la­tion a year ago. That was one of the main sell­ing fea­tures that put me over the edge.”

READ the entire suc­cess story!

ge kia

For more infor­ma­tion about energy-efficient GE LED light­ing options, visit www.gelighting.com/auto






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