Automotive News - April 14, 2008 - (Page 42)

42 • APRIL 14, 2008 HONDA Campaign includes TV, radio, outdoor continued from Page 4 good example of what can happen when ads are tailored to a specific market.” There are about 45 Honda dealer ad associations throughout the country, says Steven Jaros, senior marketing manager for American Honda Motor Co. Other ad associations get money only when they participate in the nationwide sales that Honda holds three times a year. Those dealership groups must adopt Honda’s marketing theme and ads. The “Honda Helpful” campaign in Southern California is different. The dealers — not Honda — chose the ad agency and approved the strategy. Jaros says it’s a test. “This is a way to see if we can have an impact using the dealer association’s” ads, he says. “We want to learn something from this.” Jaros says Honda could take the program nationwide but will not make a hasty decision. “We want to get the research back,” Jaros says. “We’re very protective of the brand. We will be cautious.” Secret Weapon The “Honda Helpful” campaign was created by Secret Weapon, a small agency in Santa Monica, Calif. For Honda dealers, who have a much smaller ad budget than dealers of archrival Toyota, Secret Weapon wanted to do something unusual. The TV commercials feature actors in blue Honda shirts and khakis who visit depressed consumers who have complaints about the car-buying process. The Honda people apologize and say they want to help. The consumers sometimes ask the helpers to handle menial and offbeat chores like cleaning toilets or getting kicked in the groin by kids in karate classes. “We came up with the ‘Honda Helpful’ campaign because studies show dealers are disliked,” says Patrick Adams, managing director of Secret Weapon. “It gives the buyer a chance to take advantage of the seller.” The campaign includes TV, radio, outdoor and online. The Honda dealers also hired 20 people to do good deeds such as helping people load groceries or pumping and paying for gasoline for Honda vehicle owners. Dealership personnel also wear blue shirts and khakis like the actors in the commercials wear. John Hawkins, owner of two Los Angeles-area Honda stores, says the ad campaign is working. “Sometimes customers come in and say ‘Oh, you’re being helpful,’ ” says Hawkins, who also is chairman of the American International Automobile Dealers Association. “Then I catch on. Helpful Honda gives you a little bit of a warm, fuzzy feeling.” c Ford wants word-of-mouth campaign Amy Wilson awilson@crain.com LAS VEGAS — Ford Motor Co. is trying to create a 750,000-strong army of advocates to get consumers to reconsider its vehicles. That’s the number of employees, retirees, dealers and dealership employees that Ford is charging with spreading the word about the automaker’s quality gains and new products. That person-to-person outreach is the backbone of Ford’s multimillion-dollar “Drive One” campaign, which started this month. The automaker started early this month by briefing employees and retirees on the plan. Last week, Ford told 3,500 dealers about the new campaign in sessions in Las Vegas. For the first time ever at a dealer show, Ford brought in more than 60 company engineers to share specifics of the automaker’s technological and product accomplishments with the 100,000 Flex sales a year? Farley: ‘Absolutely’ LAS VEGAS — Ford Motor Co. is looking to sell 100,000 units annually of the new Ford Flex crossover. The 100,000 threshold “absolutely” is possible for the 2009 Flex, said Jim Farley, Ford group vice president of marketing and communications. “That’s what we’re looking at productionwise,” Farley told reporters at a press event here. The Flex goes on sale this summer. Ford is counting on new products such as the Flex, the 2009 LinIndustry sales are shaping up to be toughest of the year during the ongoing second quarter, Farley said. The Flex will benefit from the natural traffic historically generated by Ford’s Explorer and Expedition SUVs, he said. “Flex will find a lot of full-sized SUV customers, and a lot of people who haven’t bought Fords are going to buy it,” he said. “So I think that will really help us in the third quarter.” — Amy Wilson The Flex goes on sale this summer. coln MKS sedan and the revamped 2009 Ford F-150 pickup to help lift sales in the second half of this year. people who are trying to sell vehicles. Most of the engineers had never met a dealer before in their career, said Jim Farley, Ford’s group vice president of marketing and communications. Farley offered this example of how the new approach is forging connections that can be used in the sales field: An engineer demonstrating Ford’s soybean-based seat foam got more than 100 requests for samples from dealers. Many are in farming com- munities but never knew that Ford was using material grown by their potential customers. Now that they know, the dealers can market that connection more directly to local consumers. Ford employees are appearing in advertisements and Internet videos. The campaign is focused on telling people about Ford’s accomplishments in four areas: quality, safety, technology and the environment. Ford surveyed more than 700 dealers as it developed the campaign. When including regional and local advertising by dealers, Ford says it spends $1.5 billion annually on marketing in the United States. The company isn’t disclosing the specific budget for the “Drive One” campaign. The biggest difference at this dealer meeting is that Ford executives really listened to what dealers had to say, said Jeff Robberson of Robberson Ford-Lincoln-Mercury in Bend, Ore. “It’s incredibly frustrating to be a Ford dealer and know we have the best showroom we’ve had and yet we don’t have people coming in to consider us,” Robberson said. “The need for this campaign was huge.” c WARRANTY Dealers: Mo. attracts hard-sell vendors continued from Page 1 Hard sell The Missouri attorney general has cited other misleading marketing practices by some independent vendors of vehicle service contracts. Promoting a service contract as an “extended warranty” Contacting customers who are on federal or state “do not call” lists Failing to honor money-back guarantees for canceled contracts Source: Missouri Attorney General’s Office tract vendors, alleging deceptive sales tactics. He has settled similar charges with two other providers, who did not admit wrongdoing. Nixon’s office has gotten complaints from more than 200 consumers around the country, says a spokesman, who adds that the investigation has not uncovered any fake contracts. Several companies named in the lawsuit told Automotive News they are cooperating with Nixon to resolve the matter. to expire when that is not always true. “We target owners of vehicles that are 2 years and 3 months old,” says Billy Bell, president of Certified Auto Warranty Services. “Depending on their driving habits, they could be out of warranty. We have no way of knowing the mileage on the vehicle.” Good behavior immediate sale, they tell vehicle owners their warranty coverage is exhausted or soon will be. In many instances the customers have more than a year left on their manufacturer warranties. “Customers say, ‘I thought my warranty is still good,’ ” dealer Broome says. “Or, ‘You already sold me a service contract, so why is someone telling me the warranty is about to expire?’ ” Dave Robertson, executive director of the Association of Finance and Insurance Professionals, says such scare tactics have “long been the staple of the junk mail and recorded phone solicitation trades.” The association trains and certifies dealership F&I managers in law and ethics. Complaints have escalated with the rise of automated telemarketing and online commerce, dealers say. Three of the vendors named in Nixon’s lawsuit say they are cooperating with his investigation. They are Service Protection Direct, of St. Louis; Dealer Warranty Services, of St. Charles, Mo.; and Certified Auto Warranty Services Inc., of Lenexa, Kansas. The vendors admit mislabeling service contracts as “warranties” and claiming factory warranties are about Certified Auto Warranty Services and Dealer Warranty Services say some consumers who filed complaints with Nixon confused them with vendors that market service contracts with similar names. They say they typically honor money-back guarantees and government do-not-call lists. They deny claiming ties to dealers or automakers or improperly charging customers. Ted Conrad, administrator for Dealer Warranty Services, says disreputable vendors have “ruined the industry.” “We try to do our utmost to satisfy customers, but others do not,” he says. ‘Official’ warnings Dealers and regulators say rogue service contract vendors churn out “notices” to consumers that look and sound official. In an effort to make an John Hamill III, a lawyer for another defendant — National Auto Warranty Services Inc., of Wentzville, Mo. — says the company does not discuss pending litigation. Calls to the other defendants — National Dealers Warranty Inc., of St. Peters, Mo.; and Direct Dealer Warranties, of St. Louis — were not answered. Dealers say hard-sell vendors of service contracts gravitated to Missouri because the state’s regulation traditionally has been loose. The Missouri Automobile Dealers Association lobbied for tougher regulation that took effect in 2007, says Sam Barbee, the association’s executive vice president. Missouri now requires service contract vendors to register annually with the state’s department of insurance. They must show that they have enough insurance to pay claims, place a reserve fund in trust with the department, document net worth of at least $100 million or prove that a parent company has agreed to cover claims. c DODGE New products offer boost for the brand continued from Page 8 The Chrysler Aspen and Dodge Durango hybrids will be part of a product offensive that will keep Chrysler dealers busy training their employees to sell and service new vehicles. For

Table of Contents Feed for the Digital Edition of Automotive News - April 14, 2008

Dealership jobs hit 8-year low GM is the wild card in axle war Service contracts: Hard-sell tactics plague dealers, customers TV auto ads shift to online, mobile venues At seminar, marketing execs to discuss new ways to reach customers Better get to know the Nano — it's set to change the world Veteran Detroit 3 dealer: 'The future is quite bleak' Poll: Dealers scrounge for cuts Locals closer to GM strike Scion xB price rises $100 Valeo CEO: No breakup Tata Nano changes low-cost development Hyundai tailors TV, Web ads for Hispanics Study: Ads focused on vehicle qualities won on Oscar night Post-Celine, Chrysler ad guru seeks right note Chrysler's quest for quality lured Nissan exec Betts Search starts for in-vehicle alcohol detectors After S. Calif. success, Honda may fund ad groups Computer images gain ground in TV ads Web TV offers automakers new ad, sales options BMW: X6 will bring brand new buyers Diana T. Kurylko Chrysler fields 'dream' ads Nissan seeks dealerships for trucks Honda will export Alabama-built Pilots to Russia Toyota, Subaru work on 'affordable' sports car Cadillac's ad agency savors the sweet life Some stores may not sell Chrysler hybrids GM hybrids get off to a slow start in first quarter Lexus adds a personal touch to pamper owners, prospects What they're buying — and what they're not The age of fuel innovation is here Approaches to r&d vary Nano brings credibility to Indian engineering Honda must revisit online dealer sales of service pacts Chrysler got it right Mandates, markets and buyer demand For Detroit, some things never change Buick: As Chicago goes, so goes the nation Auto industry has lost a good man Accentuate the positive Ex-Porsche CEO: Cayenne spiced up sales Green programs shape battle for engineering grads Tata rewards suppliers with ties to India Bill aims to set minimum sound levels for vehicles Industry lobbyists step up emissions fight Seeking wider market, Nissan equips sports car for snow New chief of SAE has D.C. skills China and GM's answer to Nano — sort of $2,500 car is Ratan Tata's personal quest NADA offers training in risky credit Donna Harris Deal's goal: Widen appeal of dent-repair coverage Title committee created Vehicle loan delinquencies rise from 2007 Suppliers to the 2009 Tata Nano Odd China combo: Fuel sippers, SUVs Pontiac Vibe: A sporty hauler with Toyota touches Dealers J.D. Power III named tracking company partner Toyota will buy back rusted Tacomas 100,000 Flex sales a year? Farley: 'Absolutely' Ford wants word-of-mouth campaign Small suppliers feel the pain of axle strike Plastech tries to sell 2 units TRW plant will build Ford gears Toyota plans 2nd India plant Dodge launch goes digital Toyota, GM recall 660,000 vehicles for window flaws Lear announces white-collar layoffs March output drops 23.6% New Ford ads tout quality improvements Tata dealers must be handy with a wrench Can the Greens slow down the autobahn? Racy scandal for race exec Echoes from the grave: Olds still has cachet The Final Say

Automotive News - April 14, 2008

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