| |
| Get Reel
VIDEO NEWS THAT MOVES PEOPLE & IDEAS | A Different Kind of Recovery | | In this recovery, new models are going to reshape the market. That means dealers and OEMs need to know who they're targeting. |
| | | | |
|
|
|
 |
| Table of Contents |
June 10, 2010 |
|
|
|
| |
|
|
|
Video News You Need
 |
|
Video News for Now: The Automotive Digest editorial and video team is always out filming timely video interviews with the leaders in the dealership and automotive industries. You can find these videos each day in Dealer Digest Daily and AutomotiveDigest.com - and each week in this publication (Dealer Management Weekly), Fleet Management Weekly, and Automotive Digest Weekly - Green Edition. ----------------------------------------------------------------------- Used Vehicle Reports You Need: Keep up with what's going on in the used vehicle market with two industry-leading used vehicle reports in each issue of Dealer Management Weekly - from companies like NADA Used Car Guide, Kelley Blue Book, OPENLANE, Manheim, ADESA, CentralDispatch and more. You can also find a full repository of these reports in the Studies & Reports section of AutomotiveDigest.com.
|
|
|
 |
Gene Cameron
J.D. Power and Associates
VP of Media/Marketing Solutions
A Different Kind of Recovery
In this recovery, new models are going to reshape the market. That means dealers and OEMs need to know who they're targeting.
- [Read More] |
|
Adam Boalt
GOSO, LLC
President
Social Media for Dealers
Social media is affecting dealerships more every day - and it's time you learn to use it to your advantage.
- [Read More] |
|
Paul Rubin
White Bear Lake Superstore
Owner
Dealer: GM Putting Out Better Product
One Buick/GMC dealer thinks GM is putting out better product, and paying more attention to parts & service.
- [Read More] |
|
Stats and Smart Charts
|
Supplier Working Relations Benefits For OEMs
[Click to enlarge graphic]
 Significance of the Data
- 10th annual North American OEM – Supplier Working Relations Study conducted by Planning Perspectives in Birmingham, Mich.
- As Working Relations Index increases, supplier trust of OEM goes up and OEM becomes more preferred customer
- Favorable supplier rankings of the automakers have a very real impact on the OEMs' future fortunes
- Suppliers more willing to share new technology with Honda and Toyota than with GM and Chrysler
- Suppliers more willing to invest in new technology for Honda, Toyota, and Ford than they are for Nissan, GM, and Chrysler
Source: North American OEM--Supplier Working Relations Study - May 10, 2010
|
|
Industry Conferences
 |
| |
 |
Novi, MI June 8-9, 2010
|
 |
|
Las Vegas, NV June 14-17, 2010
|
|
|
Dallas, TX June 29, 2010
|
|
|
Houston, TX June 30, 2010
|
|
|
Traverse City, MI August 2-5, 2010
|
|
|
Monterey, CA August 15, 2010
|
|
|
 |
|
|
 |
 |
|
|
|
|
|
|
|
Tom Webb
Manheim Consulting
Chief Economist
|
Manheim Used Vehicle Value Index
|
Wholesale used vehicle prices rose again in May; Manheim Used Vehicle Value Index was record 121.0, representing 10.9% increase from year ago; Before seasonal adjustment, prices declined 1% during month. After adjustment, prices rose 0.2%.
|
|
|
Dr. Nagi Palle
OPENLANE
VP of Analytics
|
OPENLANE Market Index
|
US auction prices stabilized in May, continuing sustained price increases seen 2010 year-to-date. May prices increased 8 percentage points year-over-year; Canadian prices showed downward trend in May ending the month 3 percentage points below April levels.
|
|
Market Strength in May:
Driven, in large part, by vehicles in lower and middle price tiers.
|
US Price Trend by Body Style:
Car and truck prices drop slightly, minivans and SUVs continue upward pricing.
|
Another Part of Strong Prices:
Also remained strong being helped by low levels of new vehicle inventory.
|
SUV Prices Showed a Upward Trend:
Ending 2 percentage points above April 2010.
|
New Vehicle Sales Boosted by Rental and Fleet:
Rental +56% year-to-date, and commercial fleet +28% year-to-date.
|
US Dealer Interest by Body Style:
Car and truck slight downward trend, upswing in minivan and SUV increased slightly.
|
Another Sales Benefit in May:
Sales benefited from presence of 5 weekends during month.
|
US Dealer Interest in Cars:
Dropped 2 percentage points last month, exceeded May 2009 levels by double digits.
|
New Vehicle Inventories Way Down:
Below 2M units on 12-month rolling average, lowest level in more than 35 years.
|
Dealer Interest in Minivans Spiked:
15 percentage points in May, exceeding May 2009 levels by 30 percentage points.
|
Rental Risk Volumes at Auction High:
Average prices were flat sequentially, but up modestly year-over-year.
|
Canadian Market Index Year-to-Date:
Prices have arrested steep declines from December 2009 to February 2010.
|
No Surge in Availability of Fleet Units at Auction:
Fleet managers wished they had more units to sell given prices were so strong.
|
Canadian Price Trend by Body Style:
Minivan and truck prices end flat, car and SUV pricing drop from April levels.
|
|
|
|
 |
|
|
|
People Going Places
 |
Jon Brancheau
Nissan North America
VP of Marketing
Nissan North America, Inc. recently announced that Jon Brancheau has been named VP of Marketing, Nissan Division. Most recently Brancheau was director, Global Infiniti Marketing Communications and Media where he was responsible for the strategic development and execution of Infiniti's marketing communications, brand management and strategy on a global scale. Brancheau brings 26 years of automotive sales and marketing experience to his new assignment.
|
|
Kerri Martin
BBDO
After a series of high-profile marketer roles in the auto world at BMW and Volkswagen, Kerri Martin is taking on her first post on the agency side at BBDO West, where she will develop advertising in a very different category: wine. Ms. Martin most recently served as chief marketing officer at Coda, a Santa Monica, Calif.-based electric car and battery start-up, a post she held for less than a year.
|
|
|
| The Next Big Thing |
Geely Gleagle IG Concept Set to Challenge Tata Nano
|
|
Chinese automaker Geely showed off the Gleagle IG subcompact concept at the recent Beijing auto show. The IG is designed to challenge the Tata Nano in the cheap microcar segment. Its expected price of $2,250 is lower than the Nano's current $2,700 to $3,800 tag.
|
|
|
Toyota Image Problems Spill Over Onto Honda
|
|
Honda must be wondering why consumers are drifting away from the brand in the same way they are deserting recall-plagued Toyota. A recent study by Cars.com indicated leads for the two Japanese automakers are down significantly year-over-year and continue to slide month-to-month in 2010. Other automakers, particularly Hyundai, are gaining ground and full-size trucks are seeing a resurgence.
|
|
|
 |
| Internet Sales & Marketing |
GM Marketing Flounders
|
|
The executive shuffling at GM has not gone unnoticed, particularly in the marketing division. Now that Joel Ewanick has been brought in to create a plan where there is none, observers hope the remaining GM products will get a well-deserved marketing boost.
|
|
|
Toddler Touts Benefits of Interactive Media
|
|
Columnist's 18-month-old son is already exploring the iPhone and iPad. Mike Henry says that watching his boy leads him to believe there is no future for passive video consumption and the ramifications for programming and advertising is significant.
|
|
|
 |
| The Green Dealership |
May Hybrid Vehicle Sales Surpass Conventional
|
|
U.S. sales of hybrid cars and trucks did well in May, reaching their best numbers since last August. They increased 18.7% from April to May, compared to 12.5% for conventionally-powered vehicles. Much of the bump came from the Prius, Ford Fusion hybrid, and the limited-market Nissan Altima hybrid.
|
|
|
Tesla, Toyota Agreement Contingent on EV Maker Going Public
|
|
Tesla Motors filed regulatory papers saying it has agreed to pay Toyota $42 million from its upcoming IPO as the electric vehicle maker goes public. This will pay for Toyota's former NUMMI plant in Fremont, CA, and 207 acres of property. The filing says Toyota agrees to invest $50 million in Tesla contingent upon the filing happening by year's end.
|
|
|
 |
| F&I Administration |
Chrysler Hangs on 0% Financing
|
|
Chrysler will offer zero-percent financing on much of its lineup and also "attractive" lease rates on several models. The deals run through June 30 and are similar to the May incentives.
|
|
|
Prestige Financial Expanding as Recession Bottoms Out
|
|
The subprime finance industry certainly took a huge hit during the last few years. It appears, however, that credit is loosening up and the surviving financial institutions are re-emerging. Prestige Financial is adding dealers and planning to double originations.
|
|
|
 |
| Used Vehicle Sales and Remarketing |
May Wholesale Prices Slip as New Vehicles Look Attractive
|
|
With incentives helping boost the new-vehicle market, wholesale prices dipped slightly in May. The drop was expected and may continue through year's end. Analysts also noted that some segments like midsize vans and large pickups outperformed expectations.
|
|
|
ALG Looks at $4 Gas Impact on Trucks
|
|
ALG believes gas will go over $4 in 2013, so it's looking at the long-term impact on two segments. The company says its outlook for mid-compacts is upbeat with auction values 13% higher than overall industry. But premium fullsize SUVs are likely to drop 20%.
|
|
|
 |
| Aftermarket Trends & Issues |
Chrysler Recalls Dodge, Jeep Vehicles over Accelerator Pedals
|
|
Chrysler says it's recalling more than 25,000 units of the Dodge Caliber and Jeep Compass to check for faulty accelerator pedals. The company that made the pedals, CTS Corp., also made the pedals associated with the Toyota recall.
|
|
|
Jiffy Lube Wins Training Awards
|
|
Jiffy Lube recently received outstanding recognition for its signature, ASE Certified training program, Jiffy Lube University. The program was ranked 50th in the 11th Annual Training Top 125 Awards, conducted by The Training Magazine. Jiffy Lube states it was one in just a handful of retail companies and the only automotive services company in the Top 125.
|
|
|
 |
|
 |
 |
|
