Automotive News - October 20, 2008 - (Page 8) 8 • OCTOBER 20, 2008 advertising Online inventory service aims to cut dealer costs Ralph Kisiel rkisiel@crain.com Used-car matchmaker A new Internet service, set up and managed by state dealer associations, matches used-car shoppers with dealership inventory. Until now, dealers went to companies such as Cars.com for that service. Here are details. Fees: State associations charge about $200 a month, vs. more than $1,000 a month by outside companies Participation: State dealer associations in Florida, Georgia, Iowa, Michigan, Nebraska, Texas and Wisconsin Source: Dealer associations and Offers Network Seven state dealer associations are rolling out an inexpensive online used-car inventory service to cut dealers’ costs to market those vehicles online. The associations think the new service can slash a store’s monthly cost of online used-car marketing from several thousand dollars to about $200. “It’s an enormous savings,” says Ted Smith, president of the Florida Automobile Dealers Association. Dealers eventually may opt to eliminate the cost of using similar commercial services, such as AutoTrader.com or Cars.com. Besides the Florida group, dealer associations in Georgia, Iowa, Michigan, Nebraska, Texas and Wisconsin are using the new system. Several hundred dealers now use it, out of about 8,000 represented by those associations. “This thing is going to be a function of how many dealers get excited about it,” Smith says. “We’re in the embryonic stage right now, but we’re going to see this thing explode as dealers recognize its potential.” The associations have partnered with Offers Network Inc. The private Seattle company has indexed 106,000 vehicles so that search engines such as Google and Yahoo can find the vehicles easier. AutoTrader.com, in contrast, aggregates nearly 4 million vehicle listings from 40,000 dealers and 250,000 private owners. members. The associations are marketing the service in part through Webinars with Offers Network. The Florida association, which helped set up the service, is not asking dealers to drop third-party sites. The program is so inexpensive that dealers should be able to add it to their existing advertising channels, Smith says. © GM CORP. Saturn’s house parties were scheduled to coincide with the TLC cable network’s premiere of the reality show “Real Simple. Real Life.,” whose main character drives a Saturn Vue crossover. First in line The Iowa dealers association, the first to partner with Offers Network, went live with the service in June, says association President Gary Thomas. About 100 dealerships in Iowa representing 35 percent of the association’s membership now use it. Mark Birdnow, owner of four General Motors stores and a used-vehicle outlet in Iowa, likes that dealers control this new inventory marketing service. “I’m hoping that enough dealers will get on board with this that it will, over time, become the premier site for Iowans, and for consumers in other states, to search for used vehicles,” Birdnow says. He plans to continue using AutoTrader.com along with the new service — for now. “If we could replace AutoTrader.com with an association-sponsored Web site that became the go-to place for consumers in Iowa, long range, that would be a great culmination of events.” AutoTrader spokesman Mark Scott says of the new service: “They’re definitely on our radar screen, so we’re paying attention to what they are doing as well as all the other competition out there.” c Party time: Saturn turns to grass-roots marketing Patricia Scott pscott@crain.com How it works Say a Jesup, Iowa, shopper uses Google to search for a 2006 Ford Fusion SE. After the consumer types “2006 Ford Fusion SE Jesup Iowa” into the search window and clicks the search button, Google finds that specific model and displays it at the top of the page of search results. That alone is a change from the traditional search result, where a sponsored search might display links to stores with new and used Ford Fusions. By clicking on the link, the consumer is taken to iowa.icarsandtrucks.com. The Web site shows a photo and information about that specific vehicle and links to all participating dealerships with that vehicle in stock. “The consumer doesn’t want to look at a dealership; they want to look at a car,” Smith says. “If you can sit down and punch in the type of vehicle you are looking for, and that inventory comes up, what a beautiful thing.” State associations manage the service and set the monthly fee for their ■ The new Prius A photo of the redesigned 2010 Toyota Prius leaked onto the Internet last week. The greenhouse and all of the sheet metal are new. The first 2010 Prius models will be imported late in 2009 from Japan. In 2010, Prius production will start at Toyota’s plant in Tupelo, Miss. This photo turned up on www.priuschat.com. Fed list promotes high-mileage cars Harry Stoffer hstoffer@crain.com Top 5 Most fuel-efficient vehicles in the 2009 Fuel Economy Guide, with estimated miles per gallon in city/highway driving 1. Toyota Prius: 48/45 2. Honda Civic Hybrid: 40/45 3. Nissan Altima Hybrid: 35/33 4. Ford Escape Hybrid*, Mercury Mariner Hybrid*, Mazda Tribute Hybrid*: 34/31 5. Smart ForTwo: 33/41 *2-wheel drive Source: EPA WASHINGTON — Jetta diesels, back in the United States in August after a hiatus of almost two years to clean up emissions, could get a sales boost from the government’s new fuel economy rankings, a Volkswagen spokesman says. Jetta diesels hold two of the top 10 spots in the government’s 2009 Fuel Economy Guide, issued last week by the EPA and Department of Energy. “It all fits together” with other marketing plans for the cars, Volkswagen Group of America Inc. spokesman Steve Keyes told Automotive News. VW expects 2009 Jetta sales of about 110,000 units and believes 30 percent or more will be diesels, Keyes said. The government guide, in its 32nd year, is expected to get increased attention from consumers, who are strained by high fuel prices and tough economic conditions. The other newcomer to the top 10 is the Smart ForTwo, ranked fifth with ratings of 33 mpg city/41 highway. The overall fuel economy leader is no surprise. For the third year in a row it is the Toyota Prius, rated at 48 city/45 highway. The Jetta diesel sedan and wagon with manual transmission rank seventh at 30 city/41 highway. The diesel sedan and wagon with automatic are eighth at 29 city/40 highway. For 2009 the government guide is in its second year using ratings based on revised testing and calculation methods designed to more closely reflect real-world driving. For nearly all cars and trucks, the new methodology means lower ratings than before. The full guide is available at www.fueleconomy.gov. c Saturn is test driving a new marketing initiative more associated with Tupperware: house parties. Across the country last Friday night, Saturn was to join House Party, a viral marketing group, and 1,000 volunteer hosts in featuring the brand’s new vehicles at the Saturn House Party. The event coincided with the TLC cable network’s premiere of the reality show “Real Simple. Real Life.” The main character of the show drives a Saturn Vue crossover. Steve Janisse, a spokesman for Saturn, said the company found that Saturn’s target market, educated women ages 18 to 39, isn’t familiar with the new Saturns. Through House Party’s selection process, 74 percent of party hosts fall into the brand’s customer demographic. “Our goal is to increase familiarity with the product,” Janisse said. The plan was for local dealerships to participate by providing Saturn vehicles for the party hosts and guests to test drive for 48 hours. About half of the parties were to have vehicles. A Saturn sales associate could stay at the party or drop off the vehicle, depending on the host’s preference. Saturn isn’t the only automaker to throw a house party. Ford Motor Co. and Oprah Winfrey’s “Big Give” — a 10-episode series where people competed to give rather than to get — hosted a house party April 6. According to houseparty.com, the event reached more than 1 million people and gave away a number of vehicles to charitable causes. Saturn will track the Saturn House Party’s success by the number of purchase incentive coupons redeemed and by host and participant comments on the House Party Web site. House Party Inc., of Irvington, N.Y., organizes these marketing events for various clients. Unlike Tupperware party hosts, House Party’s volunteer hosts are not compensated. Like the rest of the U.S. auto industry, Saturn is struggling. Sales for the brand fell 10.8 percent in September vs. September 2007. For the first nine months, Saturn sales plunged 15.5 percent to 158,721 vehicles from the same period a year ago. Saturn has been known for a broad range of marketing incentives, such as mobile event trucks, marathon foot race sponsorships and community-based programs. c http://www.zadv.com http://www.Cars.com http://www.AutoTrader.com http://www.Cars.com http://www.AutoTrader.com http://www.AutoTrader.com http://www.AutoTrader.com http://iowa.icarsandtrucks.com http://www.AutoTrader.com http://www.AutoTrader.com http://www.priuschat.com http://www.houseparty.com http://www.zadv.com http://www.fueleconomy.gov
Table of Contents Feed for the Digital Edition of Automotive News - October 20, 2008 Automotive News - October 20, 2008 Amazingly, vehicle inventories are low An upside of the big slide: Raw material prices dip â for now With GMAC out, banks trickle in Get your daily Automotive News - in video form, starting Nov. 3 Honda's Fukui favors fed loans, confirms V-8 To move the metal, Mike Kahn moves the store Hyundai airbag flaw tied to drink spills Texas promo: Buy a GM vehicle, get GM stock Chrysler's uphill road in China GM/Chrysler? Anything's possible GM/Chrysler deal? Companies' pension plans may need cash Acura dealers: A V-8 engine is on the way Buyers pursue former Heard stores Honda: We're still lending Gilles, Ligocki will speak at congress Fed list promotes high-mileage cars Party time: Saturn turns to grass-roots marketing Online inventory service aims to cut dealer costs Document fees must not become a dirty little secret Just put up a 'For Sale' sign Cash for clunkers? Scrap the idea Arbitration can work for everyone It's time we control our own destiny GM missed boat on Cheyenne, Volt Sept. truck sales fall 7.4% Microheat seeks Chapter 11 At Bosch, r&d spending remains strong GM's new diesel opens up, loses weight Urea must flow or new diesels won't go Hankook plans to bring fuel-saving tire to North America Odell: I can help Volvo tap more potential So far, BMW cruises above the credit crisis Jatco builds China plant to meet expanding CVT demand 10 appointed at American Axle Personnel Milestones Obituaries Supplier Personnel Biking buddies Ford targets fleets with parental control key European sales fall; VW group bucks the trend 11 innovators win honorable mention 25 finalists selected for 2009 PACE awards Suppliers to the 2009 BMW X6 GMAC's loan cutbacks cost GM thousands of auto sales Credit tops agenda for NADA chief 'Flash' draws modest cash at theaters Booth's new berth sparks CEO speculation at Ford Economy's skid sends ritzy toys to eBay Report: Mazda scraps plan for U.S. plant GM's quandary: Finding loans for the imperfect Taylor to Hummer - and then ... ? Tough times at Tesla Automotive News - October 20, 2008 Automotive News - October 20, 2008 - (Page Intro) Automotive News - October 20, 2008 - With GMAC out, banks trickle in (Page 1) Automotive News - October 20, 2008 - With GMAC out, banks trickle in (Page 2) Automotive News - October 20, 2008 - Texas promo: Buy a GM vehicle, get GM stock (Page 3) Automotive News - October 20, 2008 - Companies' pension plans may need cash (Page 4) Automotive News - October 20, 2008 - Companies' pension plans may need cash (Page 5) Automotive News - October 20, 2008 - Gilles, Ligocki will speak at congress (Page 6) Automotive News - October 20, 2008 - Gilles, Ligocki will speak at congress (Page 7) Automotive News - October 20, 2008 - Online inventory service aims to cut dealer costs (Page 8) Automotive News - October 20, 2008 - Online inventory service aims to cut dealer costs (Page 9) Automotive News - October 20, 2008 - Online inventory service aims to cut dealer costs (Page 10) Automotive News - October 20, 2008 - Online inventory service aims to cut dealer costs (Page 11) Automotive News - October 20, 2008 - Arbitration can work for everyone (Page 12) Automotive News - October 20, 2008 - Arbitration can work for everyone (Page 13) Automotive News - October 20, 2008 - GM missed boat on Cheyenne, Volt (Page 14) Automotive News - October 20, 2008 - GM missed boat on Cheyenne, Volt (Page 15) Automotive News - October 20, 2008 - Microheat seeks Chapter 11 (Page 16) Automotive News - October 20, 2008 - Microheat seeks Chapter 11 (Page 16A) Automotive News - October 20, 2008 - Microheat seeks Chapter 11 (Page 16B) Automotive News - October 20, 2008 - Microheat seeks Chapter 11 (Page 16C) Automotive News - October 20, 2008 - Microheat seeks Chapter 11 (Page 16D) Automotive News - October 20, 2008 - Microheat seeks Chapter 11 (Page 17) Automotive News - October 20, 2008 - Hankook plans to bring fuel-saving tire to North America (Page 18) Automotive News - October 20, 2008 - Hankook plans to bring fuel-saving tire to North America (Page 19) Automotive News - October 20, 2008 - Hankook plans to bring fuel-saving tire to North America (Page 20) Automotive News - October 20, 2008 - Hankook plans to bring fuel-saving tire to North America (Page 21) Automotive News - October 20, 2008 - Odell: I can help Volvo tap more potential (Page 22) Automotive News - October 20, 2008 - Odell: I can help Volvo tap more potential (Page 23) Automotive News - October 20, 2008 - So far, BMW cruises above the credit crisis (Page 24) Automotive News - October 20, 2008 - So far, BMW cruises above the credit crisis (Page 24A) Automotive News - October 20, 2008 - So far, BMW cruises above the credit crisis (Page 24B) Automotive News - October 20, 2008 - So far, BMW cruises above the credit crisis (Page 24C) Automotive News - October 20, 2008 - So far, BMW cruises above the credit crisis (Page 24D) Automotive News - October 20, 2008 - So far, BMW cruises above the credit crisis (Page 25) Automotive News - October 20, 2008 - Obituaries (Page 26) Automotive News - October 20, 2008 - Biking buddies (Page 27) Automotive News - October 20, 2008 - Biking buddies (Page 28) Automotive News - October 20, 2008 - Biking buddies (Page 29) Automotive News - October 20, 2008 - Biking buddies (Page 30) Automotive News - October 20, 2008 - Biking buddies (Page 31) Automotive News - October 20, 2008 - European sales fall; VW group bucks the trend (Page 32) Automotive News - October 20, 2008 - European sales fall; VW group bucks the trend (Page 33) Automotive News - October 20, 2008 - Suppliers to the 2009 BMW X6 (Page 34) Automotive News - October 20, 2008 - GMAC's loan cutbacks cost GM thousands of auto sales (Page 35) Automotive News - October 20, 2008 - Credit tops agenda for NADA chief (Page 36) Automotive News - October 20, 2008 - Credit tops agenda for NADA chief (Page 37) Automotive News - October 20, 2008 - Tough times at Tesla (Page 38) Automotive News - October 20, 2008 - Tough times at Tesla (Page 39) Automotive News - October 20, 2008 - Tough times at Tesla (Page 40)
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