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| Video News & Views
PEOPLE & IDEAS TO WATCH | Better Third-Party Leads | | A focus on quality is leading to more emphasis on actionable third-party leads. |
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| Table of Contents |
July 08, 2010 |
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Industry-Wide Analysis
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Featured Webinar - Exclusive Look Into Recent Automotive Market Trends: As the automotive market continues to stabilize, get the latest in-depth look into recent automotive trends to be better positioned for success. Understand vehicle buying habits as they shift between different generations and see how those differences impact brand loyalty. Wednesday, July 14 at 2 p.m. Eastern / 11 a.m. Pacific. Click to register. ----------------------------------------------------------------------- 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.
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Jeff Coats
Autobytel
President and CEO
Better Third-Party Leads
A focus on quality is leading to more emphasis on actionable third-party leads.
- [Read More] |
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Damon Johnson
Kelley Blue Book
VP of Business Development
Dealers-Only Social Media
Another valuable sort of social media for dealers: KBB Dealer Voice, where dealers can come together to talk about the industry.
- [Read More] |
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Kevin Collins
Fiserv
President of Originations and Automotive Solutions
Dedication to Automotive Finance
How powerful software works to efficiently drive automotive loan and lease originations - a rules-based technology allows clients a lot more flexibility to make changes themselves and enables greater integration to other systems.
- [Read More] |
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Stats and Smart Charts
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Drivers Think Ability to Surf Internet in Car is Significant Safety Issue
[Click to enlarge graphic]
 Significance of the Data
- Not only are phoning and texting while driving still serious issues, but distracted driving has potential to exponentially increase
- Drivers continue to be conflicted between desire to be "plugged-in," w/ 40% overall wanting Internet in their vehicles
- Have concerns about safety, w/ 87% believing in-vehicle Web access is safety issue
- Over 50% still admitting to illegally texting/phoning while driving even though 95% want Internet banned or restricted in vehicles
- Autobytel "What's Hot Now?" report, Wired-in-the-Car, released as part of National Safe Driving Month
Source: Autobytel - June 28, 2010
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Industry Conferences
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Chicago, IL July 22-24, 2010
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Traverse City, MI August 2-5, 2010
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Monterey, CA August 15, 2010
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New York, NY September 7-10, 2010
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Detroit, MI October 12-15, 2010
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Las Vegas, NV November 2-5, 2010
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Jonathan Banks
National Automobile Dealers Association
Sr. Director of Editorial and Data Services
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NADA Used Car Guide Industry Update
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For certain brands and models real rate of recovery in new vehicles consumer demand has been masked by disproportionate number of sales to daily rental fleets; Offers clear benefits when volume, build, and remarketing are handled in responsible way.
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James Clark
Automotive Lease Guide
President
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ALG Residual Value Report
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After strong finish for vehicle sales in Q4-2009 and continued growth in Q1-2010, new sales expectations looking brighter. ALG's long term sales expectations for 2013 show moderate increase from 15.3m expected in August 2009 to 15.9m for April 2010.
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Risk of Used Value Erosion Higher:
Large volumes of dispossessed rental units begin to enter used market in fall.
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New Sales Forecast:
New sales expected to recover to 2007 levels within next 4 years.
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Manufacturers Have Another Channel:
Prices and volumes negotiated, enabling production and sales forecasting.
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Recovery Long Term:
Increasing used supply for overall industry, will put negative pressure on resale values.
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Strategic Volume Planning and Remarketing:
LPreserves used vehicle value retention, which is a positive for all parties.
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CUV Segment:
In particular, will be impacted by expected used supply growth from now until 2014.
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High Fleet Penetration Rates and Used Wholesale Price:
Negative correlation is clear, especially when rates exceed 30%.
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Domestic Brands:
Expected to have stronger YOY sales growth compared to import counterparts.
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Consistently High Rental Fleet Penetration Rates:
Can create a negative perception for a particular model in the consumer's mind.
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Concerns over Rising Fuel Costs:
Domestic brands now focusing efforts on producing competitive, fuel-efficient cars.
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Manufacturers Recognize Rental Fleet Over-Exposure:
Truck market is benefiting from resulting diminished supply.
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Residual Values Coming Back:
Increasing now, decline in used supply will boost residuals an additional 3% by 2013.
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Easier for Domestic OEMs in Post-Bankruptcy Era:
As production capacity is better aligned with overall demand.
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Long Term Used Supply:
Picking back up in 2015 as result of forecasted growth in new market sales.
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People Going Places
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Craig Samara
IMN
Executive Director, OEM Development
IMN, provider of Loyalty Driver, the most widely-used e-communication service for automotive dealerships, has named Craig Samara as Executive Director, OEM Development. Samara brings more than 20 years of automotive industry experience to IMN position and will be responsible for building new partnerships with automotive manufacturers. His extensive experience leading OEM brand development for premium luxury and mass market brands will be a valuable asset as IMN builds brand loyalty and market share for OEMs and their dealer partners. Prior to joining IMN, Samara spent 20 years with Ford Motor Company, most recently in the roles of Vice President of Retail Operations and Vice President of Franchise Operations for Jaguar Land Rover LLC.
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Alan Haughie
Federal-Mogul Corporation
SVP and CFO
Federal-Mogul Corporation has named Alan Haughie to the position of Senior Vice President and Chief Financial Officer. Haughie will continue to serve as a corporate officer and member of the Federal-Mogul Strategy Board and will report directly to Jose Maria Alapont, President and CEO. Haughie had been Vice President, Chief Accounting Officer and Controller for Federal-Mogul since 2005.
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| The Next Big Thing |
Terrafugia Transition Could be First Mass-Produced Car-Plane by 2011
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Terrafugia has cleared a major FAA hurdle to producing its $194K Transition car-plane by 2011 to over 70 waiting customers. Transition is being marketed as the next "wow" vehicle to private pilots who want a plane without the added cost of storing it at a hangar and having to find ground transportation on both ends of a trip.
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BHPH Dealers Still in Government Crosshairs
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The death of Senator Robert Byrd (D-WV) may delay the final vote on the massive financial regulations legislation working its way through Congress. Democrats do not have the sixty votes necessary to overcome Republican objections. If passed and signed into law, auto dealers will be exempted from regulation by the new consumer protection agency. Buy Here, Pay Here dealers were not so lucky.
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| Internet Sales & Marketing |
Ford's UK Customers Can Buy Direct Online
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A new Ford website in the UK allows consumers to purchase new and used cars directly online. Ford is using research that shows 40% of customers say they don't need a test drive. They can work with 50 Ford-owned dealers and take delivery at one of 12 pickup points. Various franchise laws killed a similar effort in the U.S. 10 years ago.
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Incentive Spending Down Even as Economic Recovery Slows
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Automakers have kept inventories low allowing them to lower incentives and still sell vehicles. Domestic automakers increased incentives slightly from May to June, but overall they dropped as European and Asian automakers decreased their incentives.
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| The Green Dealership |
X Prize Competition Offers $10M in Prizes to Stimulate Fuel-Efficiency Race
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Prudential Insurance is sponsoring an X Prize competition with $10M in prizes to stimulate innovation in vehicle design to achieve 100+ fuel efficiency, no more than 200 grams per mile CO2 running viable fuels, and can hit the market in 4 years. Twenty competitors entered the qualifying rounds hoping to move on to the finals July 19-30.
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Consumer Reports Staff Take Chevy Volt for Test Drive
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As the Chevrolet Volt moves forward toward dealer lots by the end of this year, many people are anxious to test out the extended range plug-in hybrid. The staff at Consumer Reports Automotive Test Center had their own curiosity and tested out two Volts at its Connecticut test facility. Editors were impressed with the cars' on-road behavior, space, and comfort.
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| F&I Administration |
Auto Loan Rates on the Rise
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Bankrate.com published its weekly look at auto loan rates. The group surveys large banks and thrifts to collect the information. According to the group, rates were up across the board.
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Financial Overhaul Legislation Delayed
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The House approved new financial regulations Wednesday, but Senate leaders postponed a vote on the bill, preventing the landmark legislation from reaching President Obama's desk until at least mid-July. The legislation has been a focal point of lobbying by auto dealers seeking exemption from oversight by the new consumer financial protection agency.
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| Used Vehicle Sales and Remarketing |
Manheim's Tom Webb Sees Mixed Messages in Latest Economic News
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Gallup poll on U.S. retail sales citing household incomes suggests conflicting messages from a used-vehicle perspective, says Manheim's Tom Webb. Retail sales up, then down, suggesting lack of strong consumer confidence in a shaky economic recovery.
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Used Vehicle Prices Remain Strong
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On average, a three-year-old used car is 11.1 percent higher than it was last year, and General Motors has some of the most dramatic examples of this trend, according to Edmunds.com. All types of used cars are up 5.5 percent. The normal trend is usually just 3.5 percent.
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| Aftermarket Trends & Issues |
Affordable TRW Collision Mitigation Braking Alerts Drivers to Potential Collisions
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Luxury car safety features using radar to sense up-coming crashes and cruise control that adjusts to traffic ahead are now more affordable with TRW's 24GHz sensor. These features could find themselves in more vehicles providing all-weather safety improvements.
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BMW Looking to Mexico for More Parts
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BMW may invest more than $1 billion in Mexico-based suppliers to keep parts shipping to its U.S. assembly plants. The German automaker is going outside its home country more for parts in an effort to lower costs and reduce the impact of foreign currency swings.
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