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LATE & BREAKING NEWS
J.D. POWER AND ASSOCIATES REPORTS: OLDER VEHICLE BUYERS ARE LESS LIKELY TO CONSIDER IMPORT BRANDS, WHILE YOUNGER BUYERS ARE MORE LIKELY TO AVOID DOMESTIC MODELS:
While older buyers who purchase domestic vehicles are more likely to avoid purchasing certain models because they are imports, younger consumers who purchase import vehicles are more likely to avoid models because they are of domestic origin, according to the J.D. Power and Associates 2007 Avoider StudySM released today. The study, now in its fifth year, examines the reasons consumers fail to consider particular models when shopping for a new vehicle, and finds that pro-domestic and pro-import purchase sentiment is strongly tied to the buyer’s age.
J.D. Power and Associates, November 29, 2007
HOT CARS FOR LEAN TIMES:
With a housing bust, a slowing economy, and maybe even a recession around the corner, consumers are eyeing expenses more carefully, especially when it comes to big purchases like cars. For many shoppers, the strongest instinct is to simply put off a purchase until the clouds pass.
US News & World Report, November 28, 2007
Videos & Voices of Significance This Week
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Neal Gann
Vice President of Strategic Relationships
Autobytel
nealg@autobytel.com
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Neal Gann is responsible for managing and maintaining high level relationships of Autobytel's major dealer group customers to help these groups sell more vehicles online. Gann started with Autobytel in May of 1997 in sales and moved into the role of Regional Sales Director - East Coast for several years before taking on the role of Director, OEM/Large dealer group development.
What do you do at Autobytel and how do you build strategic relationships for the company?
I've been at Autobytel for more than ten years and am actually employee number four in seniority. My role at Autobytel is to work with the large dealer groups, such as AutoNation, Asbury, Lithia, Penske Automotive Group, Sonic, Van Tuyl and many others. Autobytel currently has relationships with nine of the top ten dealer groups. Dealer groups are perfect customers for Autobytel, as they understand the importance of the Internet customer in today's market. My team and I are laser-focused on expanding those relationships from the top down.
What is the current focus of your management team? Your objectives, challenges, and why these opportunities are so important?
Our current focus is showing dealers and OEMs how MyRide.com can take their Internet strategies to the next level by attracting consumers throughout the entire purchase cycle-not just new and used leads-and that we are creating a brand new online environment that will drive more value for our member dealers.
What is your assessment as far as how things are going in the industry with dealers and the adoption of Internet technologies and the delivery system that Autobytel provides?
It is common industry knowledge that the faster a car dealer responds to an online customer lead, the more likely that customer will purchase at the dealership. We have a program called Rapid Response, which is designed to connect dealers to customers via phone within seconds of the customer's initial online contact to the dealership. Some dealers using the program have increased their closing ratios by more than 50 percent. Some member dealers have reported getting 17-30 additional online sales per month and closing ratios for consumers contacted through Rapid Response have more than doubled the dealership's average for online leads.
Furthermore, our Email Manager program is another delivery system that has created significant results for dealers. Email Manager is designed to automate long-term dealership follow up for customer leads generated through our services. In general, dealers who conduct regular e-mail follow-up within 90 days typically see close rates 30 to 50 percent higher than the average.
What gives Autobytel an edge in the marketplace right now?
First, our market history and the relationships we have built with dealers over the last ten years offer a big advantage for us. We provide the leverage of a national marketing network to capture customers through search, and our closing ratio is consistently higher than any other large new-car lead service
Secondly, Autobytel recently launched MyRide.com, a brand new experience for consumers. MyRide.com is an automotive vertical search experience that returns relevant results for consumers from across the automotive Internet in one, easy to use, convenient location, making the research process much easier, faster and more manageable. Dealers are excited about MyRide.com because it gives them new ways to reach consumers by attracting them throughout the entire purchase cycle, which ultimately drives more long-term value for them.
We have also launched one of the largest and most sophisticated used vehicle programs on the web that features nearly four million used vehicle listings. We think the result will be more, and higher quality, leads - which will be mostly backed by a pure performance-based pricing model.
MyRide sounds wonderful. What is it all about, why is it so important and how is it going to change things?
MyRide.com provides car shoppers, owners and car lovers one ultimate destination for anything automotive. Don't get me wrong, we are still sending serious customers to our dealers-but we are also building relationships with future customers that are 30,90, or 120 days away from the purchase. Planting the seeds for more revenue down the road is part of the value we offer our dealer and OEM customers.
What concerns you about the industry?
What personally worries me right now is what is happening in other areas of the world, especially in the housing market. You wonder how much trickle-down effect it is going to have on the automotive industry.
The good news is that the Internet continues to grow in influence. For example, nearly 70% of auto researchers who purchased a vehicle said Internet search was the first place they turned for research and 67% of new vehicle buyers use the Internet in their shopping process. Also, in the past five years, the percentage of buyers finding their used vehicle from a traditional newspaper or magazine classified has been cut in half, while buyers who found their vehicle online has doubled.
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| SIGNIFICANT NEWS |
News digested 11/19/2007 -- 11/23/2007 |
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Industry Conferences Coming Up |
The Green Marketing Conference
Chicago, IL, November 29 - November 30, 2007
Los Angeles Auto Show (PUBLIC DAYS)
Los Angeles, CA, December 1 - December 10, 2007
Navigation & Location 2007
San Jose, CA, December 4 - December 5, 2007
20th Annual Performance Racing Industry Trade Show
Orlando, FL, December 6 - December 8, 2007
DEFENDING PRICE WITH THE OEMS - Quantifying & Documenting the Full Value of Your Offering
Livonia, MI, December 12, 2007
Visit Calendar of Industry Events for More Information on These Events
http://www.automotivedigest.com/calendar.asp?mod=calendar
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Stock That's Idle Here Isn't Idle There
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Buyer Information
Seller Information
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Press Releases Worthy of Read |
This Week's FEATURED Industry Press Releases
Click here for more Industry Press Releases!
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People Going Places |
| WHO: | Kevin Phillips |  |
| WHERE: | Recreational Vehicle Aftermarket Association |
| WHAT: | Kevin Phillips, VP of Sales and Marketing for Thetford Corporation, has been appointed to the Recreational Vehicle Aftermarket Association's board of directors and appointed co-chairman of the organization's education committee. Formed in 1971, the Recreational Vehicle Aftermarket Association (RVAA) is a national trade association comprised of RV suppliers, distributors and manufacturers. |
| | READ ABOUT MORE PEOPLE! |
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What Industry Leaders are Saying |
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Automobile Magazine Announces 2008 All-Star Winners:
- "[The Malibu is] the best Chevrolet family sedan Automobile Magazine's staff has ever driven. Smooth, quiet, well-finished and more than able to keep up with more powerful cars, it represents a true sea change in what GM is offering the public." -- Editors of Automobile Magazine
- "These 10 cars are year's most exciting cars, our picks for the vehicles we'd most like to personally own in our dream garage." -- Jean Jennings, editor-in-chief, Automobile Magazine
Sourced From: Auto Remarketing, November 21, 2007
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Elite Wheels Vehicle Reviews |
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Subaru Legacy 2008 Adds Increased Performance
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1) Cadillac CTS Wins Motor Trend's 'Car of the Year' 2008 Award |
Situation
- Motor Trend Editor-in-Chief Angus MacKenzie: Detroit back in car business
- CTS won top honor out of field of 18 contenders from US, Japan, Germany, Sweden
- W/ base price of $32,990, Cadillac CTS competes w/ best from Germany, Japan
- Toyota Camry last year's winner; 5 models from Japanese competed against CTS
|  2008 Cadillac CTS |
Significant Points
- MacKenzie: appearance, fit, quality, materials, performance rival all competitors
- Motor Trend says CTS chosen from among 1 of toughest fields in award's history
- CTS tested, developed in US, Germany, China before coming to market
- 1st time in decades American car designed, engineered w/ eye for global market
Read Quotes
Click Here for Full Digest and Source Article:
Sourced From: Detroit Free Press, MSNBC.com, AutoRemarketing.com, November 20, 2007
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2) Ads for Imports Most Cost Efficient |
Situation
- Research firm Compete says import car manufacturers most cost efficient w/ their advertising
- Import manufacturers spent $182 per shopper last year, compared w/ $223 per shopper for domestic makes
- Honda spent least per shopper, at $118 in million-plus sales range, while Toyota trailed in 2nd at $158
- Ford was highest in million-plus sales range, at $240 per shopper
- Small brands w/ defined targets like Mini, Scion performed best of all
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Significant Points
- Saturn costs per shopper tumbled 35%, from $187 per shopper in 2005, to $121 per shopper last year
- Scion fell from $44 per shopper in 2005 to $30 per shopper last year
- Kia fell from $191 per shopper in 2005 to $144 per shopper in 2006
Read Quotes
Click Here for Full Digest and Source Article:
Sourced From: Adweek, November 21, 2007
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3) Washington Warns Dealers About Out-of-State Marketing Firms |
Situation
- Washington state attorney general warning dealers about promotion disclosures
- Specifically concerned about out-of-state marketing firms that don't know WA laws
- Promotions must follow guidelines of Consumer Protection Act
- Also Prizes and Promotions Act and all Dept of Licensing statutes
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Significant Points
- AG recently settled deceptive advertising complaints against WA dealer
- Bruce Titus Automotive Group, Level 10 Marketing from Louisiana were charged
- Neither admitted wrongdoing but paid civil penalties
- Were accused of ads w/ misleading prices, suggesting financing was guaranteed
- Also failing to state how many vehicles at advertised price
- Promotional mailers resembled official certified mail or looked like checks
Read Quotes
Click Here for Full Digest and Source Article:
Sourced From: Used Car News, November 19, 2007
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4) Automobile Magazine Announces 2008 All-Star Winners |
Situation
- Automobile Magazine announced 2008 All-Star Award winners, and 6 of the 10 are European
- American and Japanese vehicles each took 2 of the remaining spots
- List includes BMW 3-series, Chevrolet Malibu, Volvo C30
- Also includes Infiniti G37/G35, Chevy Corvette, Mazda CX-9, VW GTI, Mercedes S Class, Lotus Elise, Porsche Boxster/Cayman
|  2008 Chevy Malibu |
Significant Points
- Winners featured in Jan issue of magazine, comes out Dec 4
- Infiniti G37/G35 called "the yin to the BMW 3-series' yang"
- New Malibu touted by magazine as true sea change for GM
- Magazine also says Mercedes "got it right" this year
Read Quotes
Click Here for Full Digest and Source Article:
Sourced From: Auto Remarketing, November 21, 2007
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5) Loud, Positive Buzz for New Malibu |
Situation
- GM getting positive buzz it wanted w/ newly-launched Chevy Malibu
- Chevy Web site getting record number of hits, positive reviews from critics
- Bloggers generally giving kudos to the vehicle
- And vehicles are flying out of dealerships
- Whopping $300M GM spent to promote vehicle looks to be a success
- But vehicle's battle to pull market share from Toyota Camry and Honda Accord won't be easy
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Significant Points
- Vehicle seems to be living up to its "The car you can't ignore tagline"
- One tactic used in Malibu advertising launch was 1-day "blanketing" of the Web
- Along w/ TV spots during key events like World Series, and oversized billboards
- True results for new Malibu will be known in about 6 months
- Numbers will show whether buyers are trading in another Chevy, or getting rid of Camrys and Accords
- Chevy.com logged massive 3.7M hits on Web takeover day, 3 times their previous record
Read Quotes
Click Here for Full Digest and Source Article:
Sourced From: Detroit News, November 19, 2007
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6) Lincoln Hopes Rapper Common Will Connect with African American Men |
Situation
- Lincoln ads feature rapper Common as spokesperson w/ hope of reaching younger, hipper African Americans
- Specifically 30- and 40-something African American males w/ understated style
- Common known for his focus on social causes, including AIDS awareness, children's self-esteem
- Lincoln thinks he's right balance between authenticity and aspiration to connect w/ African Americans
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Significant Points
- Lincoln recently announced alliance w/ Common at Los Angeles Auto Show
- Common known as a "conscious" rapper whose lyrics are of the streets, but w/ a social conscience
- 35-year-old rapper is proof that some hip-hop has definitely become more grown up
Read Quotes
Click Here for Full Digest and Source Article:
Sourced From: Detroit Free Press, November 22, 2007
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7) Automakers Must Use Caution in Getting Green Message Right |
Situation
- Creating automotive advertising and marketing w/ environmental messaging is tricky endeavor
- Honda recently shelved its "Environmentology" campaign
- Even though Union of Concerned Scientists named it greenest car company for 4 straight years
- Toyota facing issues due to its new "Why Not?" ad campaign
- One key conflict is need for automakers to create cars that generate high profits
- Which frequently are not their greenest vehicles
|  2008 Toyota Princess |
Significant Points
- Toyota ad agencies Saatchi & Saatchi, Dentsu are at odds over automaker's ad direction
- Primary agency Saatchi & Saatchi has created ads positioning the Prius as mainstream
- They prefer to step back from strong environmental messages
- Dentsu is behind the environmental-centric "Why not?" campaign
- Has irritated environmentalists who are unhappy that Toyota fighting new CAFE bill
Read Quotes
Click Here for Full Digest and Source Article:
Sourced From: Brandweek, November 19, 2007
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8) New 'Red-Tag' Incentive Campaign from GM |
Situation
- New "Red Tag Event" from GM will give 0% financing for 60 months on many 2007 models
- As well as discounts on several just-launched 2008 models
- Goal is to offset lower demand set in motion by higher fuel costs, problems in housing market
- Company claims event "is another example of GM using appropriate strategic and tactical incentive offers"
- Emailed statement contends that other manufacturers, like Toyota and Chrysler, run similar programs
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Significant Points
- Newly launched campaign will run through Jan 2
- Program covers Chevy, Pontiac, Buick, GMC brands
- Saab, Cadillac will run separate programs that center around the holidays
- Discounted prices include "factory-to-dealer" incentive up to $1K on certain 2008 models
- Most remaining 2007 models offer cash rebates and no-interest loans, usually 5 years in duration
- GM has posted 3 months of sales gains after terrible June and July figures
Click Here for Full Digest and Source Article:
Sourced From: The Wall Street Journal, November 20, 2007
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9) Edmunds.com Upgrades True Market Value |
Situation
- Edmunds.com announces enhancement to True Market Value Deals of the Month list
- Analysis will now include special loan rates, lease rebates
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Significant Points
- Previously, Edmunds.com only reviewed cash payments for category selections
- Now will include special loan, lease incentives, then compare w/ current MSRPs
Read Quotes
Click Here for Full Digest and Source Article:
Sourced From: Auto Remarketing, November 21, 2007
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How does AutoMart.com bring value to dealers?
