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LATE & BREAKING NEWS
 GM'S RISKY CHALLENGE: A look of disbelief crossed Karen Smith's face as a Saturn salesman handed her the keys to a shiny new Toyota Camry...Off she drove, rolling out of a Saturn dealer's lot in the hot-selling Toyota, her two sons and their grandmother in the car...The unlikely exercise is part of a new promotion from General Motors Corp.'s Saturn brand that pits the new Aura four-door against American car buyers' perennial favorites -- the Camry and Honda Accord -- in Saturn showrooms across the nation.
Detroit News, July 9, 2007
 FORD EXTENDS INCENTIVES TO AUG. 31: Ford Motor Co. is extending its end-of-the-model-year U.S. incentives that offer buyers 0 percent loans on every 2007 Ford, Lincoln and Mercury model. Pickup and SUV buyers will get the free loan and a check for $2,007. The program was scheduled to expire today, July 9, but Ford will keep it going until Aug. 31.
Automotive News, July 9, 2007
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This Week: Kevin Distelhorst |
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Kevin Distelhorst
General Manager
IntegraLink
614.324.7800
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Kevin Distelhorst is GM of IntegraLink, a division of The Cobalt Group since 2000. He co-founded IntegraLink in 1998 to fill the automotive industry's need for a professional data collection firm. Before this, he held a number of positions in which his primary focus was using technology to solve business problems, including vice president of sales and marketing at Management Computer Services and GM of two divisions within Reynolds and Reynolds. Distelhorst holds a BS/BA in accounting from Ohio State University and an MBA from the Wharton School.
1. Tell us the history of IntegraLink
I co-founded IntegraLink in 1998. Our goal was to become the leading independent provider of DMS data collection and normalization services. We achieved that goal. In 2000, we were acquired by the Cobalt Group.
We operate as a division of the Cobalt Group from our headquarters in Columbus, Ohio. IntegraLink collects and normalizes DMS data from over 15,000 dealers in North America. We're proud to serve four of the five largest OEM's and dozens of other marketing and service companies.
IntegraLink is for companies that are looking for a single partner that can manage a turnkey collection and normalization process for DMS data from a company that's successfully scaled to serve thousands of dealers and still be responsive to the customized needs of an individual company.
2. How many dealers do you provide services to today on behalf of your customers?
We have a significant footprint, with over 15,000 of the roughly 22,000 dealerships. That certainly works to the advantage of our new clients, because we already have an established presence with dealers and we know how to get data. As long as the dealership grants access to the new client, we can very quickly help the client get the data they need.
3. Is the trend more for end-to-end service suppliers rather than partial solution providers?
The trend that we've seen has been kind of a flight to quality. Over the past year, we've seen significant sales growth from companies that are looking to move into utilizing DMS data. They have sought out established and proven leaders so that they can have the assurance that the service will continue.
4. What do you see as the greatest challenge that dealers are facing regarding their DMS data?
The greatest challenge they have is maintaining and managing open and secure access of that data to external companies. There are more and more companies who want access to that data, and there's an increasing need, both legally and ethically, to safeguard the data. It's really becoming difficult for dealers to keep track of whom they are providing access to, and whether or not that access is secure. Without open and secure access, those dealers would be shut out of the opportunity to use some of the most innovative and valuable marketing services being offered to dealers today. Those products rely on access to the DMS data.
5. Can you give us an example of some of those marketing programs?
Vehicle inventory is a key example. If you can't get your inventory made available for your dealer website, you're at a real disadvantage to the rest of the market. Consumers expect fresh, up-to-date information, and we focus extensively on timely and accurate data.
6. Do you think the trends overall favor the single supplier as opposed to multiple suppliers?
Our customers are the OEMs and marketing companies. There will continue to be consolidation as more companies choose to use the market leaders. That, in itself, will favor consolidation.
7. What is your most outstanding corporate achievement in the last year?
Over the past year, IntegraLink and The Cobalt Group took a leadership position in forming Open Secure Access. Initially, the OSA was a coalition of companies that were concerned about the future of open secure access of DMS data. Since then, the OSA has evolved into an organization that includes dealers, dealer groups, OEMs, and DMS companies. Through the OSA, several of the leading DMS providers have in fact taken steps to continue and enhance the opportunity to provide open and secure access to their dealers. Frankly, I don't think that would have occurred without the OSA.
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| SIGNIFICANT NEWS |
News digested 07/02/2007 -- 07/06/2007 |
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Industry Conferences Coming Up |
FedFleet
Orlando, FL, July 24 - July 26, 2007
2007 I-CAR International Annual Meeting
ChampionsGate, FL, July 26 - July 28, 2007
NAFC 2007 Fall/Winter Meeting
Boulder, CO, August 6 - August 10, 2007
Boulder, CO, August 15 - August 18, 2007
AAMVA 2007 Annual International Conference
Rapid City, SD, August 19 - August 22, 2007
Great American Trucking Show
Dallas, TX, August 23 - August 25, 2007
39th Annual AFLA Conference
Tucson, Arizona, September 5 - September 7, 2007
13th Annual Fleet Fueling Conference & Exhibition
Dallas, TX, September 9 - September 11, 2007
CVSA 2007 Fall Workshop
Pittsburgh, PA, September 15 - September 19, 2007
NAAA 59th Annual Convention & Equipment & Services Expo
Chicago, IL, September 18 - September 23, 2007
23rd Annual Clean Air Conference
Breckenridge, Colorado, September 24 - September 27, 2007
International Trucking Show
Los Angeles, CA, September 28 - September 30, 2007
Visit Calendar of Industry Events for More Information on These Events
http://www.automotivedigest.com/calendar.asp?mod=calendar
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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: | John Lyboldt |  |
| WHERE: | National Automobile Dealers Association |
| WHAT: | The National Automobile Dealers Association recently named John Lyboldt as its new VP of Dealership Operations, replacing Carl Ragsdale, who is retiring. Lyboldt's previous experience includes serving as president of the Rochester Automobile Dealers Association for the past 17 years and being elected as the president of the Automotive Trade Association Executives in 2005. Among his new duties will be directing programs to help dealers become more profitable and efficient. |
| | READ ABOUT MORE PEOPLE! |
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What Industry Leaders are Saying |
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Dealers Start Applying Lessons Learned at NIADA Convention:
- "Go into high schools, bring some credit applications and tell the kids how to fill them out. Then teach them how to buy a used car. The earlier you can recruit students into your store, the longer you will have them as an older consumer later on." -- Joe Lescota, chairman automotive marketing, Northwood University
- "At least 40 percent of our sales staff are women. I'm thinking of opening up another lot, and we'll staff it totally with women. I think it's the right idea, and I'm willing to try it." -- Jon Linnehan, CEO, Credit Now Auto Company
- "The worst decision I've ever made is hiring those older people who think they know all the angles, all the tricks. We've had tremendous success hiring college graduates. The car business is a great springboard for them, and they learn how to speak to people." -- Don Fincher, owner, Fincher Motors
- "The Internet is the greatest matchmaking device that God ever gave to marketing. The sales process has started online. Dealers need to understand how to demonstrate the car online, how to get your customers over to your store and transfer that sales process to the store where you can close the deal." -- Dennis Galbraith, cars.com
Sourced From: Auto Remarketing, July 5, 2007
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Elite Wheels Vehicle Reviews |
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BMW Roadster Convertible is Premium 2-Seater Standout
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1) GM Trucks Take Big Hit in June |
Situation
- GM's sales plunged in June as demand for its small cars sagged
- Unusually aggressive discounting by Toyota hurt GM's pickup sales
- Sales down 21.3% in market that was slightly weaker than previous June
- GM truck sales fell 22.9%, reflecting big declines in relatively new pickups
- Ford sales down 8.2%, for 8th consecutive monthly decline; DCX sales slipped 1.8%
- Honda sales rose 11.5%, Nissan jumped 22.7%, Toyota sales increased 10.2%
|  2007 Chevy Silverado |
Significant Points
- Of major automakers, GM suffered biggest monthly decline
- Fierce competition in truck segment illustrates difficulty US automakers face
- GM anticipated slowdown; scaled back its business w/ rental car companies
- Toyota offered big discounts on Tundra to put truck's launch back on track
- Overall, car and truck sales fell 3% from year-earlier levels
- Annual selling rate fell to weak 15.6M vehicles in June from 16.2M year earlier
Read Quotes
Click Here for Full Digest and Source Article:
Sourced From: Detroit News, July 4, 2007
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2) CallCommand Buys Autobytel's Retention Performance Marketing Business |
Situation
- CallCommand recently purchased Autobytel's Retention Performance Marketing (RPM) business for $7.6M
- Autobytel says move lets them focus on becoming leading online automotive site for customers, premier marketing partner for dealers and OEMs
- W/ specific focus on their newly-launched MyRide.com consumer site
- CallCommand says RPM will arm their dealers w/ marketing advantages over competitors
- RPM offers personalized communications through voice, direct mail, email, Web sites, mobile marketing, and other channels
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Significant Points
- RPM also features reporting and analytics
- CallCommand says addition of RPM makes them "one stop shop for all customer communications"
- RPM's 53 employees also acquired by CallCommand
- MyRide.com designed to offer up relevant, organized search results from around the Web
- Along w/ multimedia, user-generated content on various topics related to automotive purchase and ownership
Read Quotes
Click Here for Full Digest and Source Article:
Sourced From: CallCommand Press Release, July 2, 2007
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3) US Automakers Gearing Up To Meet 4-Cyl Demand |
Situation
- Increasing number of US car shoppers picking thriftier small engines
- Shift comes in face of gas prices that continue to hover around $3 / gal
- Percentage of 4-cyl engines in US rising slightly since 2002; only 25.4% of engine mix in 2006
- In midsize vehicles where consumers have choice, majority picked 4-cyl engines in 2007
- Before recent gas price spike, buyers of midsize cars made by Detroit-3 typically bought V-6
- Those who bought Japanese midsize cars usually bought more 4-cyl engines
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Significant Points
- Persistently high gas prices driving move to thriftier vehicles
- Four-cylinder engines generally get better gas mileage, pollute less
- Often are noisier, don't accelerate as well
- In many cases, sticker price of 4-cyl lower than V-6 version, sometimes by $1K+
- When gas prices drop, demand will move back toward 6-cyl engines
- Automakers improved 4-cyl engines in recent years; more powerful and quieter
Read Quotes
Click Here for Full Digest and Source Article:
Sourced From: MSNBC, July 6, 2007
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4) New Ford Taurus X Earns Top Safety Pick from IIHS |
Situation
- 2008 Ford Taurus X is Top Safety Pick
- Honor given by Insurance Institute for Highway Safety
- Taurus X is renamed Freestyle
|  2008 Ford Taurus X |
Significant Points
- To earn award, vehicle must perform well in front, side and rear crash tests
- Also be equipped w/ electronic stability control (ESC)
- Previous Freestyle earned top crash ratings but didn't have ESC
- 22 vehicles have earned Top Safety Pick honors
- 7 are Fords or Volvo
Read Quotes
Click Here for Full Digest and Source Article:
Sourced From: IIHS, June 25, 2007
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5) Dealers Start Applying Lessons Learned at NIADA Convention |
Situation
- Dealers had many seminar choices at recent NIADA convention
- Following are pearls of wisdom that dealers can apply at their stores
- Women are powerful sector; make 50% of buys, influence 80%
- Latino buyers need bilingual switchboard operator, sales people, Web site
- Reach out to college students; help teach high school students about buying used vehicle
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Significant Points
- Hire personalities, then train them how to sell cars
- Consider college grads for sales jobs; they don't have old habits, good or bad
- Look at other lots in area; buy what they don't have
- Think about powersports division that sells ATVs, boats, etc
- Increase Internet efforts to attract customers, then close deal
- Consider cybercam on dealer lot, showroom
Read Quotes
Click Here for Full Digest and Source Article:
Sourced From: Auto Remarketing, July 5, 2007
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6) Honda Hybrid Mileage Subject of Lawsuit |
Situation
- Civic Hybrid driver averaging 32 mpg city/highway files class-action suit; Honda claims 49/51
- Frustration w/ actual mileage of hybrid vs advertised mileage; echoes that of other owners
- Lawsuit claims American Honda Motor misled consumers in advertisements and on Web site
- One Honda magazine ad claimed owners could get up to 650 miles on single tank of gas
- Web site features fuel-savings calculator; assumes Civic Hybrid drivers will average 51 mpg
- Civic Hybrid delivers higher numbers than comparable non-hybrid vehicles in real world driving
|  Honda Civic hybrid |
Significant Points
- Appears to be 1st legal challenge to mileage claims of hybrid vehicles
- Reflects findings of some independent tests, including Consumer Reports
- Consumer Reports found in Oct 2005 Civic Hybrid averaged 26 mpg in city
- EPA tests overstated average fuel economy for all vehicles
- EPA revising testing procedures to better reflect real world driving conditions, 2008MY
Read Quotes
Click Here for Full Digest and Source Article:
Sourced From: Detroit News, July 6, 2007
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7) Want a Discounted Trip to Europe? Buy a Car |
Situation
- European delivery programs offered by handful of Continental carmakers
- These money-saving trips are often an insider's secret
- One of those things that you need to know about to ask about
- Procedure is similar at Audi, BMW, Mercedes-Benz, Porsche, Saab, Volvo
- Programs started between 30 and 40 years ago, conceived as sales enticement
- Biggest challenge may be finding salesperson at local dealership who knows about program
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Significant Points
- Often lurks below dealers' radars despite enthusiastic responses from owners
- Local dealer sells vehicle; prices preset, usually slightly discounted from MSRP
- Take delivery of car at factory in Europe, pick up export registration and plates
- Maximum time limit in Europe w/o being taxed usually 3 to 6 months
- Drop off car at predetermined locations for shipping to US
- Pick up vehicle at US dealership several weeks after return from Europe
Read Quotes
Click Here for Full Digest and Source Article:
Sourced From: Forbes Autos via MSNBC, July 6, 2007
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8) Ford Sees Flat Retail Sales for June |
Situation
- Ford still on track w/ recovery efforts, though June sales down 8% vs 2006
- Ford maintains 13% retail market share, on track to profitability in 2009
- Latest figures take into account reduction of rental fleet sales, mostly unprofitable
- GM also seeks to wean itself from unprofitable rental car sales
- Demand for Edge, Lincoln MKX crossover SUVs results in sales increase
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Significant Points
- Troublesome issues still on horizon for Ford, struggling to become profitable
- Cash burn issue sends Ford looking for buyers for Jaguar, Land Rover, maybe Volvo
- Rising incentive-spending by Asian automakers also Ford concern
- Toyota Tundra sales rise on discount offers, eat into F-series market
- Ford most anxious for UAW healthcare concessions in 2007 contract of Detroit-3
Click Here for Full Digest and Source Article:
Sourced From: Business Week, July 3, 2007
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9) Built in China, Sold in US, Soon to Become Reality |
Situation
- Chrysler Group CEO Tom LaSorda: deal set to export Chery autos to Europe, N America
- 1st autos will go to Latin America, eastern Europe, will hit US by 2010
- 1.3L Chery A1 sedan would be sold in US under Dodge brand, joint venture to follow
- 1st vehicles out of China likely to cost $10K, not $7K, as originally advertised
- High-end model could sell for up to $15K, all targeted at younger generation buyers
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Significant Points
- Chrysler-Chery venture could be 1st vehicle exported to US from China
- Major automakers have factories in China, becoming 2nd-largest market after US
- Up to now, China production concentrated on meeting booming local demand
- Chrysler-Chery deal will help Chrysler Holding turn profit, get back on track
- Under 80% ownership by Cerberus, Chrysler will quickly establish partner-alliances
Read Quotes
Click Here for Full Digest and Source Article:
Sourced From: Detroit News/AP, Wall Street Journal, July 4, 2007, Detroit Free Press, July 6, 2007
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10) Detroit 3 See Sales Slide, Asians up in June |
Situation
- GM June sales down; light trucks fell 23%, cars down 19%, due in part to rental sales
- Ford June sales down 8.1% overall; cars sales slide 25%, but trucks sales up 2.9%
- Ford sees sales of Edge crossover, Lincoln MKX rise 83% from year ago
- Chrysler Group sees small 1.4% decline overall as passenger car sales rise 55%
- Toyota sales up 10.2%, Honda up 11.5%, Nissan up 22.7%, Hyundai up 10.9%
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Significant Points
- Industry-wide sales fell 3.1% in June 2007 to 1.4M, from 1.5M in June 2006
- Asians post double-digit gains amid rising rebates: Toyota up 56.5%, Honda up 17.4%
- Incentives for domestic automakers declined, also down 4% for Nissan
- Jim Lentz, Toyota sales VP: Tundra sales helped by $3500 cashback/0% financing
- Chrysler credits June sales improvement to "Maximize Your Miles" program
Read Quotes
Click Here for Full Digest and Source Article:
Sourced From: Wall Street Journal, Detroit Free Press, July 4, 2007
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11) Prius Becomes Enviro Status Symbol For Those Who Care |
Situation
- Toyota Prius only sold as "hybrid," delivering message of 'keen on green'
- GM has "mild hybrid" in Saturn Vue, but cannot run exclusively on electricity
- Ford relies on Escape, Mercury Mariner hybrids now, has more models planned
- Ford has pulled back on goal of putting 250K hybrids on US roads by 2010
|  2007 Toyota Prius |
Significant Points
- Bullish on hybrids, Toyota may introduce stand-alone hybrid for Lexus
- Toyota plans to hybridize every model made worldwide, on market as soon as 2010
- Prius sells so well, 750K worldwide, could become separate brand w/ several models
- GM promoting Chevy Volt concept hybrid car, still in need of proper battery
Read Quotes
Click Here for Full Digest and Source Article:
Sourced From: The New York Times, July 4, 2007
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