Automotive News - September 1, 2008 - (Page 15) SEPTEMBER 1, 2008 • 15 Picture this You and your industry colleagues have just hung out at a party, raised a truckload of cash for charity or fired your best rounds of golf. Share your snapshots with us. When the celebration is over, e-mail your highresolution photos, IDs and a brief description of the event to autonews@crain.com. Reynolds to dealers: Replace aging servers by year end Ralph Kisiel rkisiel@crain.com Reynolds replacements Reynolds and Reynolds says aging servers on dealership management systems at about 120 stores must be replaced with new hardware — and new contract terms. Dealers are skeptical. Timing: Reynolds says the old servers can’t support new software. Some dealers would rather not spend the cash in a weak economy. Length: Reynolds wants up to 7-year contracts, replacing monthly contracts. Cost: Reynolds has quoted prices as high as $40,000. Similar servers can cost less than $5,000. ed 6,000 servers in U.S. dealerships. The group of servers in question is no more than 2.5 percent of the entire server base that Reynolds supports in the field, Schwartz says. That implies about 150 servers. “This has been an ongoing practice at Reynolds for decades — server life cycle management,” Schwartz says. “We’re approaching this set of upgrades the same way Reynolds has always done business.” Paul MacDonald, a Mazda dealer in Bountiful, Utah, and a dealership consultant, has two clients with the aging server. Reynolds first sought a five-year contract. When the dealer balked, Reynolds offered a three-year term, he says. Reynolds quoted one dealer just under $40,000 for a new server, says MacDonald, founder of the TriMac Automotive Advisory Group. A Dell server costs about $3,600 to $5,000, he says. “The dealer’s saying, ‘My business is terrible right now, and I don’t want to get in a commitment for a longterm relationship, especially with the changing market,’ ” MacDonald says. Bob Armstrong, business office manager at Patriot Buick-PontiacGMC in Williamsburg, Va., also must replace the aging Reynolds server. Reynolds is asking about $5,000 for the new server, Armstrong says. “They are throwing in some incentives to continue to stay with Reynolds,” he says. “All in all, we’re OK with this.” The servers in question are 6 to 14 years old and will not support new software from Reynolds, Schwartz says. Reynolds is offering options, he says, so customers can make the transition to a new server seamlessly. “This has no connection to the old UCS server arbitration issue,” Schwartz says. “Different circumstances: Apples and oranges.” c ■ Saddle up! When Toby Breeden, center, owner of Breeden Dodge in Fort Smith, Ark., and part owner of another Dodge store in Missouri, celebrated 30 years with Chrysler Financial recently, the folks at the finance company wondered what to get him. They found out that Breeden loves horses and riding and owns a large cattle ranch in Charleston, Ark. Plus, Breeden Dodge is a sponsor of the Old Fort Days Rodeo in Fort Smith. So Tim DeNomie, left, sales manager at Chrysler Financial’s Southwest Business Center, and Willis Holland, a dealer relations manager there, came up with the perfect gift: a Taylor trail-riding saddle with matching tack. Reynolds and Reynolds Co. has told about 120 auto dealerships that the aging server for their ERA dealership management system has become too costly to support and must be replaced. In letters, Reynolds told dealers it will end support for the LP1000r ERA server on Dec. 31. The dealers with the server are on month-to-month contracts, but Reynolds is asking at least some of them to sign long-term contracts of as long as seven years with their new servers. Some dealers would prefer to stick with the server they have. Others question the cost of a new server. “They are trying to put me in a long-term contract, and that’s what I don’t want to do,” says Patricia Sofia, office manager at Becker Motors Inc., a Lincoln-Mercury dealership in Canandaigua, N.Y. For some dealers, the letter revived memories of a dispute between scores of dealers and Universal Computer Systems Inc. over replacing aging servers. Universal Computer Systems purchased Reynolds in 2006. Reynolds spokesman Tom Schwartz said the company is working with a small number of customers on a server upgrade. Reynolds has an estimat- http://www.pick-n-clickads.com http://www.pick-n-clickads.com
Table of Contents Feed for the Digital Edition of Automotive News - September 1, 2008 Automotive News - September 1, 2008 'Mr. Big Volume' hit again Auto ad spending plummets American Axle to grow outside U.S. Nissan, Renault aim to share more parts Steven Ribet joins Automotive News in Shanghai Salaried workers face the ax Asbury to challenge verdict Lutz wants loan guarantees VW passes Ford as No. 3 global seller in 1st half Suzuki in disguise Dodge hopes smooth ride of coil springs will distinguish Ram Candidates split on union organizing bill Check in the mail? Toyota, Ford can tell 10 CTS stays true to concept GM shifts some vehicle design work to U.S. Infiniti may add cars, big and small BMW slashes production of big engines Toyota cuts sales forecast Chrysler: Viper lures suitors Honda hybrid plan bets big on small cars Ford starts L-M consolidation meetings Obama renews aid offer — industry wants it now Honda taps rainwater to create wetlands U.S. loans could make sense, but can't be a bailout Wanna buy a car? Wanna buy a brand? PPG story recalls Exner's Imperial Toyota goofed on Scion; is Prius next? Editor grows up; import vet pleased Field reps blamed for GM's problems Honda Insight engine isn't noiseless Trucks, Vette fine; rest of GM, blah Reynolds to dealers: Replace aging servers by year end Saddle up! Dem delegates honor slain Arkansas dealer Kia makes a mark of its own Koreans step up; Indians step cautiously; Chinese step back The next batch of new Hyundais: Smaller, more fuel efficient To give fuel economy a boost, Hyundai spends big on r&d U.S. plans fizzle for most Chinese vehicles Mahindra delays U.S. retail launch until 4th quarter of '09 Dealers Personnel Despite tough times, Galpin profits by pimping rides Web service leads grow Uh, I didn't mean to say you should retire Remembering Phil Hill, racing's modest giant Mulally to speak at gadget show GM picks Volt battery supplier Split verdict in fraud case July auto output was up in Japan Bob Fisher Dems reopen the CAFE Hummer, king of the desert? MG remains a no-show in North America Mustang silly Protests could bring ta-ta from Tata The politicians (and I) need a new road map Welburn's design journey began in Philly Automotive News - September 1, 2008 Automotive News - September 1, 2008 - (Page Intro) Automotive News - September 1, 2008 - American Axle to grow outside U.S. (Page 1) Automotive News - September 1, 2008 - American Axle to grow outside U.S. (Page 2) Automotive News - September 1, 2008 - Suzuki in disguise (Page 3) Automotive News - September 1, 2008 - 10 CTS stays true to concept (Page 4) Automotive News - September 1, 2008 - 10 CTS stays true to concept (Page 5) Automotive News - September 1, 2008 - Chrysler: Viper lures suitors (Page 6) Automotive News - September 1, 2008 - Chrysler: Viper lures suitors (Page 7) Automotive News - September 1, 2008 - Obama renews aid offer — industry wants it now (Page 8) Automotive News - September 1, 2008 - Obama renews aid offer — industry wants it now (Page 9) Automotive News - September 1, 2008 - Honda taps rainwater to create wetlands (Page 10) Automotive News - September 1, 2008 - Honda taps rainwater to create wetlands (Page 11) Automotive News - September 1, 2008 - Field reps blamed for GM's problems (Page 12) Automotive News - September 1, 2008 - Field reps blamed for GM's problems (Page 13) Automotive News - September 1, 2008 - Trucks, Vette fine; rest of GM, blah (Page 14) Automotive News - September 1, 2008 - Saddle up! (Page 15) Automotive News - September 1, 2008 - Dem delegates honor slain Arkansas dealer (Page 16) Automotive News - September 1, 2008 - Koreans step up; Indians step cautiously; Chinese step back (Page 17) Automotive News - September 1, 2008 - To give fuel economy a boost, Hyundai spends big on r&d (Page 18) Automotive News - September 1, 2008 - Mahindra delays U.S. retail launch until 4th quarter of '09 (Page 19) Automotive News - September 1, 2008 - Personnel (Page 20) Automotive News - September 1, 2008 - Web service leads grow (Page 21) Automotive News - September 1, 2008 - Web service leads grow (Page 22) Automotive News - September 1, 2008 - Web service leads grow (Page 23) Automotive News - September 1, 2008 - Web service leads grow (Page 24) Automotive News - September 1, 2008 - Uh, I didn't mean to say you should retire (Page 25) Automotive News - September 1, 2008 - Uh, I didn't mean to say you should retire (Page 26) Automotive News - September 1, 2008 - July auto output was up in Japan (Page 27) Automotive News - September 1, 2008 - Bob Fisher (Page 28) Automotive News - September 1, 2008 - Bob Fisher (Page 29) Automotive News - September 1, 2008 - Welburn's design journey began in Philly (Page 30) Automotive News - September 1, 2008 - Welburn's design journey began in Philly (Page 31) Automotive News - September 1, 2008 - Welburn's design journey began in Philly (Page 32)
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