DEALER WEEKLY -- GM-Ford Merger Idea "Just Banter"; Detroit's Summer of Discontent; More

Tuesday, July 01, 2008

LATE & BREAKING NEWS

BMW CALLS CAFE PLAN 'NOT FEASIBLE': BMW of North America is calling on the Bush administration to create an alternative fuel economy program for companies that would be hardest hit by proposed new standards in the 2011-15 model years. The alternative would allow a company such as BMW to comply by raising the fuel efficiency of its products by 4.5 percent a year over the standards in effect in 2010, the automaker says in comments submitted to the National Highway Traffic Safety Administration.

Automotive News, June 30, 2008

FORD HAS HAD TALKS WITH RENAULT TO SELL VOLVO: Ford Motor Co has had exploratory talks with French automaker Renault SA (RENA.PA: Quote, Profile, Research, Stock Buzz) to sell Volvo, but the talks ended quickly due to price differences, sources briefed on the matter told Reuters. The two parties have spoken again after their initial discussions, which were held last fall, the sources said.

Reuters, June 30, 2008

Videos & Voices of Significance This Week

OneCommand EVP Allan Cooper on new connectivity between consumers and dealers.

Sonic VP Rachel Richards talks about customer advocacy.

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This Week: Sean Bradley

Sean Bradley
CEO
Dealer Synergy

www.dealersynergy.com

Sean V. Bradley has over 8½ years of automotive experience. He is currently the Founder and CEO of two companies, AutoCreditApproved.com Inc., a Special Finance lead generating company; and Dealer Synergy Inc., an international training and consulting agency, focused on Internet Sales and Business Development.

What do your dealer clients tell you are their biggest concerns today?

Many are concerned about the economy. Consumers in transition have higher priorities than buying vehicles. Finding a job or a place to live are high up on their list of things to do before considering that new SUV. Problems in the housing markets and election year issues also make people nervous. In reality I do not think it matters who wins the next election, but we just want to get it behind us so we can move forward.

It’s this uncertainty that triggers fear in many dealers. They need to see the opportunities that are available to them during these times. This can be a great time to rebuild and fortify the business strategy while investing in dealership employees for the long haul. Now is not the time to cut back on training, education and mentoring programs, but exactly the time to invest heavily so we are all prepared for the renewal that will be here within the next nine months to a year.

What do the training programs offered out there look like?

There is no shortage of training solutions available in our industry, and there are certainly the hot "flavors of the day" programs, but the value both short- and long-term of some programs is questionable at best. Just as there are various cultures in dealerships and ways of doing business there are old school training regimens that are still talking about techniques used 20 years ago. They tout controlling the customer, misleading them and tricking them into buying items they do not need and very often can't afford. Lots of other training is available including the manufacturer programs, in-house dealership programs, online "learn-at-your-own-speed" programs, and the onsite multi-day hands on training. They all work to some degree, but for long term results the dealership management team needs to inculcate a daily discipline that insures everyone is responsible and accountable for their activities and results.

Are dealers buying into that philosophy?

Too often they accept mediocrity. I know a lot of people who don't lift weights because they're heavy. But it's that effort that others are unwilling to do that will make all the difference in someone's success. It takes a dedication and a proactive action plan to achieve great results. I also feel that domestic stores really need to develop some bench strength in their sales efforts and in building the skills of their teams. Their product is improving in quality to compete with European and Asian brands, now they need to work on the customer experience in their stores. Surveys continue to show that consumers want a smooth, worry-free purchase transaction and that they are not hesitating to leave the stores that do not provide that experience. Having a trained and focused team with a clear way to measure those results will insure steady sales growth and less employee turnover in the dealership.

What is Dealer Synergy doing to help their dealer clients in this area?

We start by analyzing their current situation and "start with the end result in mind." We completely create a custom program to fit the needs and culture of the dealership. What works in New York City is not going to play in Grapevine, Texas. So we work with our clients to identify their culture, wants, needs, and expectations while taking into account their strengths, weaknesses, opportunities, and threats (SWOT). Our team also helps craft a long-term plan that the dealership can implement to insure everyone stays on track. We help them develop the daily discipline to make sure everyone is working on the items that will provide the most value to the store.

Can dealerships on a budget still afford a quality training program?

That’s the beauty of many solutions today. They often combine in-store training with online follow-up courses and videos to reinforce the behaviors and activities shown during training. When a dealership spends $20,000 on an ad campaign or weekend tent sale then balks about a $5,000 to $10,000 training program for their sales and management team, it tells me they are looking to treat the symptoms and not cure the disease. Smart dealerships know how important training is and incorporate a budget for it every year.

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SIGNIFICANT NEWS

News digested 06/23/2008 -- 06/27/2008

1)	Idea of GM-Ford Merger Dismissed as Banter
2)	Nightmare Summer Unfolds for US Auto Industry
3)	Dealer Web Sites Should Highlight F&I
4)	Electric Vehicle Dealership Makes Deal for Battery Charging Station
5)	GM Touts 0% Financing in 72-Hour Sale
6)	Small, Fuel-efficient Used Cars Find New Life
7)	JD Power: Satisfaction Scores Slip Over Poor Fuel Efficiency
8)	Strong Global Market Fuels Growth for Japanese Manufacturers
9)	Senator: Plug-In Strategy for Off-Peak Hours
10)	Fitch Cuts Automaker Ratings on Gloomy Forecast
11)	PIN: Domestic Vehicles Losing Retained Value
12)	Chrysler Touts Liquidity, Says No Intention of Filing Chapter 11
13)	Hard Times for Detroit Automakers but They Can Survive
14)	Ad Agency Teams With Dealers to Assist Flood Victims

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DEPARTMENTS

	Industry Conferences Coming Up
	Press Releases Worthy of Read
	People Going Places
	What Industry Leaders are Saying
	"Elite Wheels" Vehicle Reviews

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Industry Conferences Coming Up

PAACE Automechanika Mexico
Mexico City, Mexico, July 9 - July 11, 2008

General Motors Minority Association
LaJolla, CA, July 9 - July 12, 2008

GIADA 53 Annual Convention
Ponta Vedra Beach, FL, July 13 - July 16, 2008

Visit Calendar of Industry Events for More Information on These Events
http://www.automotivedigest.com/calendar.asp?mod=calendar