January 16, 2014
Quick Reads: Six in 60

auto-production 1. Supply & Demand Concern & Risk of Overcapacity Confront OEMs

  • Com­ing off a profit and big sales year, talk of too many vehi­cles in pipeline
  • Trend to watch: New fac­to­ries are set to crank out vol­umes of new vehicles
  • Run­ning at 100% of full capac­ity presently but drop means price war


Wall Street Journal
cadillad-ats 2. Cadillac ATS Sales Get Braked by Residual Ratings Due to Over Production

  • Over­pro­duc­tion seems to be tank­ing the ALG resid­u­als of Cadil­lac Sedan
  • Recently severely adjusted resid­ual val­ues from opti­mistic lev­els earlier
  • ALG has now put ATS at the bot­tom of resid­ual list­ings for retention


GM Inside News
detroit-auto-shot 3. Detroit OEMs Find Hospitality & Blue Skies of Increased Sales & Profits

  • Atmos­phere at Detroit Auto Show is one of warm in a cold win­ter outside
  • 2013 recov­ered the sales vol­ume lost dur­ing eco­nomic collapse
  • 2014 is expected to slow, how­ever, even with appear­ance of smooth sailing


Wall Street Journal

VIDEO: LED Technology is a No-Brainer

More and more deal­er­ships are switch­ing to LED light­ing tech­nol­ogy every day. The rea­sons are that LED light­ing saves money and energy, low­ers main­te­nance costs, sells more cars, and pro­vides a pay­back in 36 months or less. Sim­ple as that.

VIDEO: What Good Lighting Can Do
  Auto Dealership Gets Cree LED Lighting Makeover

Watch how Reed Lal­lier Chevro­let in Fayet­teville, North Car­olina is sav­ing up to 55% on energy costs and reduced their out­door light­ing fix­tures by 20%. All made pos­si­ble by Cree LED light­ing with unprece­dented color qual­ity and pre­cise opti­cal control.

VIDEO: Consumers and Connected Cars
  Lots of Excitement, Confusion Among Connected Cars

Con­sumers have an enor­mous amount of inter­est in — and con­fu­sion about — con­nected cars. And depend­ing upon brand of vehi­cle, there’s a fairly high level of adoption.

More Six in 60

mike-jackson 4. Mike Jackson Sees New Car Supply Setting Up a Price War Shortly

  • Jack­son per­spec­tive putting pres­sure on OEM Pro­duc­tion to avoid price war
  • Sees 2014 as a “test” after 4 easy years of sales growth and profits
  • Growth rate expected to slow in 2014 with increas­ing competition


hackers 5. Hackers Selling “Zero Day” Solutions to Software Flaws; Dealers Next?

  • Hack­ers used to report that soft­ware secu­rity could be patched when reported
  • Now hack­ers can sell soft­ware fixes for old secu­rity prob­lems for six fig­ure sums
  • Boom­ing grey mar­ket for hack­ers with NSA and the gov­ern­ment major clients


EVs on road 6. OEMs Putting “Vroom” Back into Almost Silent Electric Vehicles

  • Mak­ers have to cre­ate sound to warn pedes­tri­ans that a car is coming
  • Putting a “vroom” using power train acoustics to avoid hit­ting people
  • Cars make vir­tu­ally no noise at slow speeds; Elderly peo­ple are vulnerable


Doing It Right  

Your Deal­er­ship is Energy Inten­sive: Auto­mo­tive deal­er­ships are an energy-intensive indus­try, with facil­i­ties con­sum­ing about 110 kBTU per square foot, com­pared to prime office space at 93 kBTU accord­ing to the EPA Energy Star Program.

Top Pri­or­ity for Dealer Man­age­ment: Light­ing effi­ciency should be a new-construction top pri­or­ity and a bottom-line upgrade for exist­ing facil­i­ties. Retail­ers using out­dated light­ing tech­nolo­gies are sac­ri­fic­ing sig­nif­i­cant energy and main­te­nance sav­ings along with aes­thet­ics. Now LED light­ing pro­vides light qual­ity equal to — and in most cases bet­ter than — incum­bent light sources, for a truly no-compromise solution.

LED Light­ing Sells More Vehi­cles: In the auto­mo­tive deal­er­ship indus­try, retail­ers depend on their abil­ity to beau­ti­fully dis­play vehi­cles where cus­tomers make their first impres­sions — on the front line. Until recently, color qual­ity and per­for­mance exceed­ing 90 CRI was not a prac­ti­cal option for many out­door light­ing applications.

How to Add Curb Appeal to Your Deal­er­ship?  Market-leading LED light­ing inno­va­tor Cree, Inc. under­stands the poten­tial sales ben­e­fits of dra­mat­i­cally enhanc­ing curb appeal with more vivid col­ors, allow­ing deal­ers to keep sell­ing cars long after dark.

What To Do Next: If your deal­er­ship need a whole need look, LED light­ing can make a big dif­fer­ence. To learn more about what your deal­er­ship should and can do about reduc­ing energy expense and using a new light­ing sys­tem, read the rest of Sean’s arti­cle and more action­able infor­ma­tion.


Build a Better Dealership

Toyota leasingWhat Could Off-Leasing Boom Mean in 2014?

Leas­ing turned things around for vehi­cle sales three years ago – fueled by low inter­est rates, ris­ing resid­ual val­ues, and sweet deals from automak­ers with lower monthly payments.

Now, more off-lease cus­tomers are start­ing to return to the mar­ket. Automak­ers, deal­ers, and lenders are start­ing to pon­der a few questions.

What does it mean for brand loy­alty and cus­tomer reten­tion? Off-lease cus­tomers tend to be good for reten­tion, but the com­pet­i­tive land­scape is get­ting intense with incen­tives and low-priced monthly pay­ments being promoted.

Gen­eral Motors entered the leas­ing race last month after being away for a long time.

Auto lenders have been soft­en­ing their under­writ­ing stan­dards this year. Leas­ing has been grow­ing in this envi­ron­ment. What if lenders have gone too far?

Click here to read about other issues being con­sid­ered includ­ing early buy­outs and the resid­ual value environment…….

Smart Thinking - Pass It On  
Case Study

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

The Back­story:
In 1990, when Michael Jor­dan Nis­san opened in Durham, NC, the facil­ity was state-of-the-art. But times change, and in 2010, the man­age­ment team part­nered with Gontram Archi­tec­ture, to begin plan­ning for a ren­o­va­tion using the architect-led design and build model.

When ren­o­vat­ing the car deal­er­ship, they chose inte­rior and exte­rior LED lumi­naires from Cree, Inc. to pro­vide the industry’s best color qual­ity, effi­cacy and enhanced inven­tory appear­ance with sig­nif­i­cant energy and main­te­nance savings.

READ ON to Learn What Cree Did to Improve the Deal­er­ship Lighting.

And be sure to visit Cree True­White light­ing solu­tions to get ideas for your dealership!

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