Automotive News - March 31, 2008 - (Page 38)

38 • MARCH 31, 2008 CLASSIFIEDS 800-388-1800 313-446-6065 DEALER SERVICES ACCOUNTING PERSONNEL ISSUES? FINANCIAL STATEMENT ISSUES? Do you need training for office personnel? Do you need an interim controller or office manager? Do you need help with warranties, factory claims or reconciliations? Seek help from a CPA/MBA with over eighteen years of accounting and dealership experience to help with these and other managerial and financial challenges. Please contact Lisa McDonall @ 336-926-3115 or cfosolutions@triad.rr.com ProQuotes Forms Forms Building - All Systems We Support Reynolds Legacy www.proquotes.net 800 456-5178 Ex-Chrysler design chief John Herlitz dead at 65 Ryan Beene rbeene@crain.com John Herlitz, Chrysler’s former senior design vice president, died Monday, March 24, after a slip-and-fall accident at his vacation home in Florida. He was 65. Herlitz, a resident of subur- Herlitz: Key man in ban Detroit, is perhaps best ’90s renaissance known for his design work for the 1970 Plymouth Barracuda and 1971 Plymouth Roadrunner. “If you talk to any Mopar fanatic, those cars are downright iconic today,” Joe Dehner, Chrysler vice president of small, premium and family vehicle design and a former colleague of Herlitz’s, said last week. “They resonated back then just as they do today, and that just goes to show how well thought out and how instrumental those cars were in putting Chrysler on the map back then.” Herlitz also had a major hand in the Chrysler design renaissance of the 1990s, where his production teams gave birth to the LH platform’s LHS, Intrepid and Concorde, as well as the Neon and Intrepid sedans and other post-K platform vehicles. “The most excited we saw him get about a product line was when they introduced the concept of the cab-forward design on the LH platform in the early 1990s,” Herlitz’s son Kirk told Automotive News in an e-mail. Kirk Herlitz said it was not in his father’s nature to take personal credit for his design work. His humble, self-effacing manner always pushed Herlitz to credit his team of designers and managers. Said Dehner of the 1990s design successes: “It was a group effort with our advanced area and production, but really, at the end of the day it was John’s guys, the production guys, that really put the vehicles on the road. John’s guys made it happen, with a lot of his leadership.” Herlitz also designed a number of Chrysler concept cars over the years and aided in the creation of the Walter P. Chrysler Museum in suburban Detroit. Herlitz joined Chrysler Corp. in 1965 as a stylist. He was named styling studio manager in 1968 and moved up the design ladder, holding many design management and executive posts before retiring in 2000 as the Chrysler group’s senior vice president of design. “John made a significant impact on Chrysler, Dodge, Jeep and Plymouth vehicles’ design,” Trevor Creed, Chrysler LLC senior vice president of design, said in a statement. “He had a heartfelt passion for the automotive industry, and he will be greatly missed.” c Toll Free 877-830-3309 -Int'l: 864-232-1406 Call Doumis or Perry at Chapman Enterprise www.chapmanenterprise.com We accept all Major Credit Cards Automobile Display Ramps Since 1976 CHAMCO A dealer reflects on a deal gone sour continued from Page 8 PREVENT ACID RAIN DAMAGE! Boost Profits & CSI. Recognize by General Motors. 800/292-2515 or www.plastacise.com DEALERSHIP VALUATION / Succession Planning / BuySell Consulting / Profit Improvement / Litigation Support/ Internal Control Review / Tax Strategies. The DeValk Associates, Ltd., CPAs & Consultants. 847-255-1887. “ The payoff This deal makes me look pretty dumb, doesn’t it? LeaseMaker® NEW version for Palm Handhelds Retail Loans & Leases Fast, Accurate & Easyto-Use, Free Demo 800 843 7766 www.leasemaker.com lm Pa S O BUSINESS OPPORTUNITIES EARN $200K-$400K Realistic 1st year Income: The most powerful marketing system on the planet! After 4 yrs & $400,000 in research & testing we have the perfect online business opportunity. Our proprietary system generates $1,000s everyday, & 10 Million in commissions over past 8 mths. No calling - No selling; your Grandmother can do this! Join us http://www.DLW-Enterprises.com CLASSIC CAR DEALERSHIP, partnership opportunity, NE Ohio, worldwide customer base, excellent branding. Established concern working to take advantage of the bear market. Working partner a plus. many options. (330) 704-5271. $19K PROFIT MY 1st MONTH working from home in less than 25 hrs per week! $1K-$8K profit per sale. This is Not MLM! FREE Training & Support Provided. Call 1-888-880-1317 * 24 hrs shop — selling Toyota, Nissan, Honda, Hyundai and Subaru. By the mid-1990s, those once nearly bankrupt stores were selling 36,000 new and used vehicles a year. Thomason had a simple formula for success: He spent $6 million to $8 million a year on advertising on TV and radio and in newspapers. His slogan was: “If you don’t come see me today, I can’t save you any money.” Thomason appeared in many of the commercials, which were funny and irreverent. “I was on buses and billboards and was one of the most rec- SCOTT THOMASON Chamco investor ” ognized people in the state of Oregon,” he recalls. By the late 1990s, public companies were gobbling up car dealers. Thomason decided to cash in on the craze, hired an investment banker and sold his stores to Asbury Automotive Group for what he says was “a substantial amount of money.” He was 44 years old at the time. After working for Asbury for four years, Thomason retired. When retirement didn’t work out, he partnered with Ron Barber, a dealer in northern California who focused primarily on the fleet business. Thomason worked for Barber for three years and recently bought him out. The six California stores generate about $2 billion in annual revenues and make most of their money on fleet sales. The retail business generates sales of 7,000 to 8,000 new vehicles a year, Thomason says. Two other stores, which sold Volvo and Infiniti, were sold because they didn’t make enough money. “I love to develop people and sell cars,” Thomason says. “I love the retail side of the business. I tried to get out once and it didn’t work.” Perhaps that’s why a successful dealer like Thomason was willing to bet a few million dollars on an untried player like Chamco. Did the venture’s obvious risk add to the deal’s allure? Thomason says his lawyer advised him not to discuss the case. But he can’t resist asking: “This deal makes me look pretty dumb, doesn’t it?” c USED CARS Lanelogic shifts gears; dealers fret continued from cover 2 paths to trouble Lanelogic operated 2 programs that looked solid when the used-vehicle market was strong but led to problems when the sales got soft. Like a stock exchange Lanelogic’s used-car brokerage worked a bit like a stock exchange. A dealership client tells lanelogic it wants to sell a used vehicle. Lanelogic appraises the vehicle and sets its price. Lanelogic identifies a dealership that needs that car. Lanelogic picks up the car from the seller and ships it to the buyer. After the buyer receives the vehicle, he pays lanelogic for it. Lanelogic hands over the money to the seller. The seller transfers the title to lanelogic, which gives it to the buyer. The buyer and seller both pay lanelogic a $200 fee. If the vehicle does not sell after 45 days, lanelogic buys it back for the price the dealership paid, minus a depreciation fee ranging up to $600. Risk-free guarantee? Another program allowed dealers to lock in the wholesale price of any used vehicle on their lot, no matter where they had obtained it. The dealership asks lanelogic to appraise a used car on its lot. The dealership pays lanelogic an average fee of $400. Lanelogic appraises the vehicle and offers to pay a specified price for it if the dealer can’t sell it within 45 days. COMPUTER SOFTWARE FOR SALE WINDOWS F&I SYST. Lease & Loan Master & BHPH Inventory, Forms, Contracts, Stickers. F&I Menu Selling Web Credit Reports, Contact Manager, LA&H, Qbooks. From $299. L-master.com - 800 701-6686 - 818-591-0631 REAL ESTATE FLORIDA-HERNANDO COUNTY - Busy Hwy 19 Prime commercial corner. County approved automotive /auto dealer site - survey & proposed building plans avail. 3 acres zoned for commercial usage + 2 additional acres in rear zoned residential - total of 5 acres - only $525,000. Call or e-mail Florida Tropics Realty - 352-688-7997 or 800-592-9242 - floridatropics@tampabay.rr.com PARTS WANTED SELL YOUR PARTS! • Obsolete inventory? • Excess inventory? • Changing car lines? • Overstocked? • Inventory reduction? WE BUY PARTS! 651-777-5420 VANS FOR SALE DODGE SPRINTERS Dealer overstocked with Sprinter inventory. All configurations. Can deliver. Call Dave Skrocki @ 800-848-0623 It worked like this: A participating store would ask lanelogic to find another dealer willing to buy a particular used vehicle. Lanelogic would ship the vehicle to the buyer, who would write lanelogic a check. After lanelogic delivered the money to the seller, the seller would mail the vehicle’s title to lanelogic. The buyer and seller each would pay lanelogic a transaction fee of $200. To eliminate risk to the dealer, lanelogic offered a guarantee: If the dealership that purchased the vehicle was unable to sell it after 45 days, lanelogic would repurchase it, after deducting a fee for depreciation and another $200 transaction fee. In a separate program, lanelogic also allowed dealers to lock in the wholesale price of any used vehicle on their lot — no matter where they had gotten it — for a fee that averaged $400. If the dealer had not sold that car after 45 days, lanelogic would buy it for the prearranged price. Dealers told Automotive News that lanelogic generally offered inflated prices for vehicles. That worked OK for the company as long as used-vehicle sales rose. But when the usedcar market softened last fall, lanelogic ran into trouble. In October, its combined vehicle buyback rate for both prog http://www.proquotes.net http://www.chapmanenterprise.com http://www.plastacise.com http://www.leasemaker.com http://www.DLW-Enterprises.com http://L-master.com

Table of Contents Feed for the Digital Edition of Automotive News - March 31, 2008

Axle strike leads GM to alter production plan Industry expert Ferron joins Automotive News Group Hummer adds E85 models Lear expands in China Ford spills the beans on car seats Concern ... confidence ... curiosity — welcome to America, Tata Expect most Ford-bred executives to stay put Tip for Tata: Let British brands be British brands Dana CEO sees need for growth in Asia Chrysler: Any deal for partner would be done by Cerberus Farley retools Flex marketing strategy Malibu attracts import-minded buyers European purchasing execs to suppliers: Costs must fall Reynolds removes dealership modems New Saturn ads will promote Aura, Vue, Outlook This Spring Hill launch is a fraction of the first one GM works on small global car Hal Riney, Saturn campaign creator, dies Dealer sours on China importer Secret computer lets Nissan planner peek into future XM-Sirius merger: Lower prices, more choices? Key Chrysler product developer resigns Ford's new boss in HR plans no major changes Wagener to replace Pfeiffer as Mercedes design chief It's time to break the glass ceiling Autos don't cause all global warming Toyota plumbed the depths of Scion Customer loyalty is serious business Future bright for Tata brands Dauch sends wrong signals as Axle strike drags Yanase opened Japan to Western cars Fewer dealers, sure, but more brands What if Ahn falls short? Want to inspire Lori Queen? Just say no Hanwha to build GM Powertrain assembly line Toyota enters untapped Korea, home of Hyundai James O'Rourke Jr. Picture This -- March 31st, 2008 Lexus pays dealers for innovations Suppliers to the 2009 Dodge Journey Ricardo center has battery focus Howa USA opens interior parts plant in Kentucky N.Y. show suggests a future of smart powertrains, muscle BMW sees new models as sales saviors Ford contract has unique take on core jobs 6 more PACE-setters in auto innovation Buy-here, pay-here may grow Dealers Mercedes SL: A fresh face — with 1 flaw Ex-Chrysler design chief John Herlitz dead at 65 Future could be bright for Jag, Land Rover Land Rover in good shape, but challenges remain Fuel economy fines loom for Tata As segment shrinks, Chrysler minivan output takes a big dip Mercedes names 27 AMG dealers Continental to cut jobs Cobalt SS price: $22,995 Kia opens Ga. training center Nissan idles Mexico plant Plastech legal bill: $1 million for a month Magna will add 3 plants in Mexico El Camino diehards say Pontiac G8 should have been a Chevy No 2nd chance for Nasser, other Ford alums Buick grabs a name from the past After short list, a short stay for Laymon Lori Queen or Ellery Queen? Daimler's mum on BMW Southern supplier strategy Tracing the Camaro's bloodline Alfa searches for a U.S. factory

Automotive News - March 31, 2008

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