Automotive News - August 25, 2008 - (Page 34) 34 • AUGUST 25, 2008 remarketing ‘Ambush’ boosts GM Certified Online marketing campaign uses hidden cameras Arlena Sawyers asawyers@crain.com Depending on your age, a new online marketing campaign by GM Certified may remind you of MTV’s “Punk’d” or the old “Candid Camera” TV show. The General Motors brand of certified used vehicles is rolling out an interactive consumer Web site, www.usedcarambush.com. The site displays hidden-camera practical jokes to suggest the pitfalls of buying a used car or truck from a private seller. At the same time, the “ambush” video vignettes promote the benefits of buying a GM-certified used vehicle. Automakers have widely certified used cars and trucks since the mid1990s. But many consumers still don’t understand the value of certification, said Mark Mathews, GM’s director of used-vehicle activities. “We know there is an educational gap that needs to be closed,” Mathews told Automotive News. The six ambush videos were shot in Las Vegas last March. They feature an actor who poses as a used-vehicle buyer while a nearby van secretly records the transaction. The “buyer” tries to persuade real private sellers to provide services that GM Certified routinely offers. For example, the seller of a used Chevrolet Silverado is dumbfounded when the buyer offers a $7,200 down payment and tries to negotiate financing. Another seller puts his father on the phone when the buyer demands de- The “Ambush” videos feature an actor posing as a buyer who tries to persuade private sellers to provide services that GM Certified routinely offers. tails about trade-in policies and warranty terms. The irritated father tells his son: “Adam, take me off the speaker. I need to talk to you.” All sellers were informed afterward of the intended use of the footage and were paid $500 each. Only one seller refused to allow GM Certified to show his video encounter. Mathews said GM Certified will not advertise the ambush Web site. He said the site will be more effective if it is “viral” — if consumers find it themselves or are referred to it by friends. GM Certified will add new videos this year, Mathews said. “We expect ‘Ambush’ will engage prospects to spend more time with our brand than any competitor,” he said. Last month, GM Certified sold 35,799 used cars and trucks, down 4.2 percent from July 2007. In the first seven months of 2008, the brand sold 261,165 certified vehicles, down 5.9 percent from the year-ago period. GM Certified sells used Buick, Chevrolet, GMC and Pontiac vehicles. Other GM brands — Cadillac, Hummer, Saturn and Saab — run their own certified programs. Overall, the industry sold 145,413 certified vehicles in July, 1.6 percent more than in July 2007.Through July 2008, the industry sold 1,030,184 certified cars and trucks, up 2.7 percent from the year-ago period. c DealerTrack adds market price checks Ralph Kisiel rkisiel@crain.com Wholesale used-vehicle prices inch up in July Arlena Sawyers asawyers@crain.com Average wholesale used-vehicle prices, July Average price July 2008 Average price June 2008 Average price July 2007 % change vs. June 2008 % change vs. July 2007 Wholesale prices of used vehicles rose slightly overall last month from June, but auction prices of big pickups and SUVs remained far below last year’s levels. Slumping vehicle sales and a weak U.S. economy will continue to depress prices of used cars and trucks, the nation’s two largest auto auction companies predict. In July, the average used vehicle sold at auction for $9,334, according to ADESA Analytical Services. That price was 0.3 percent more than in June 2008 but 4.8 percent lower than in July 2007, ADESA says. Last month, Manheim’s Used Vehicle Value Index stood at 109.9, up from 107.8 in June 2008 but down from 114.9 in July 2007. Manheim adjusts its index to account for model mix, mileage and time of year. “The market remains down year over year, across the board,” said Tom Kontos, ADESA’s executive vice president of customer strategies and analytics. “But the movement is in a positive direction.” Cars Small and midrange Sporty Traditional Upscale Total car Light trucks Small pickups Full-sized pickups Minivans Full-sized vans Lower midrange SUVs Large SUVs Other SUVs Total light truck TOTAL WHOLESALE $8,781 12,625 7,573 12,178 $9,385 $6,858 8,829 7,075 6,450 8,520 9,783 13,472 $9,232 $9,334 $8,625 12,125 10,523 12,063 $9,355 $6,932 8,513 7,037 6,901 8,614 10,507 13,173 $9,191 $9,306 $7,887 13,021 10,066 12,825 $8,878 $7,524 11,455 7,735 7,478 10,228 12,942 14,643 $10,723 $9,804 1.8 4.1 –28.0 1.0 0.3 –1.1 3.7 0.5 –6.5 –1.1 –6.9 2.3 0.4 0.3 11.3 –3.0 –24.8 –5.0 5.7 –8.8 –22.9 –8.5 –13.7 –16.7 –24.4 –8.0 –13.9 –4.8 Note: Based on approximately a half million AuctionNet wholesale vehicle transactions a month *Includes standard and premium crossovers and small, upper midrange and premium SUVs Source: ADESA Analytical Services based on AuctionNet data and Automotive News market classifications Kontos noted that the average wholesale price of used full-sized pickups rose 3.7 percent in July from the previous month. But last month’s price still was 22.9 percent lower than in July 2007. The average auction price of used large SUVs continued to tumble last month — to $9,783, down 6.9 percent from June 2008 and 24.4 percent from July 2007. Kontos told Automotive News that he expects prices of big used pickups to recover more quickly than those of large SUVs. Demand for full-sized pickups has suffered as much from weakness in the construction industry as from rising fuel prices, he said. That demand will rebound when the economy improves, he predicted. Manheim chief economist Tom Webb says auction prices of retired rental vehicles — mostly compact and mid-sized cars — rose in July. Cuts in sales of new vehicles to rental fleets, especially by the Detroit 3, have reduced the supply of used 2008 model vehicles at auction, Webb says. Wholesale prices of used compact cars rose 16.1 percent last month from July 2007, Webb says, while prices of used mid-sized cars increased 3.2 percent. But Webb cautions: “The retail side of the market is still under significant pressure. I don’t expect that to change.” c DealerTrack Inc. is adding realtime market pricing of used vehicles to its online inventory management tool for auto dealers. Dealers who use DealerTrack’s InventoryPro software can check prices of used cars and trucks anywhere in the country for free, said Raj Sundaram, the company’s senior vice president of dealer solutions. The new function has access to 3.6 million used-vehicle prices listed on the Internet, he said. For example, Sundaram said, a dealer could get the average price nationwide of a 2006 Ford Expedition with 50,000 miles. Or the dealer could be more specific and obtain prices of the big SUV within 25 miles of his or her dealership. “It’s all about sample size and real data,” Sundaram told Automotive News. “It’s a little bit of peer performance. You look at what’s happening in the market, look at who’s being aggressive and who’s not, and reposition yourself.” The function enables dealers to set price parameters for their inventory relative to market prices, Sundaram said, and alerts dealers if their vehicles fall outside those parameters. About 1,000 dealers use InventoryPro, he said. Bill McMorris, director of remarketing at Jim Ellis Automotive Group, says DealerTrack’s “cutting-edge” function “gives us the capability to view real-time pricing in the surrounding market area.” The Ellis group operates 11 dealerships in the Atlanta area. c Turn to page 36 for the Used Vehicle Auctions FIND A CAR. ONLINE. ANY TIME. It’s simple. Tell us what you want—make, model, year—and we’ll do the rest. With ADESA Notify Me, you’ll instantly know when we have your car. So what are you waiting for? Take advantage of the latest technology. ©2008 ADESA, INC. Log on to NotifyMe today. http://www.usedcarambush.com http://www.adesa.com http://www.adesa.com
Table of Contents Feed for the Digital Edition of Automotive News - August 25, 2008 Automotive News - August 25, 2008 Looming cuts worry L-M dealers Bad blood Study: Toyota top U.S. lender How the kid got in the picture Hyundai affiliate to build transmission plant White House names acting NHTSA chief S&P lowers outlook on Sonic, Group 1 Now you can talk back: Join our online community Dodge dealers: We're in a box Company gets a fix-it list for pickups, SUVs from J.D. Power Mahindra delays U.S. launch Dealer Beyer now selling a 2009 Obama Nissan to leap into U.S. commercial-truck fray in 2010 China's Brilliance to show cars in Detroit Lawsuit alleges insider trades by CarMax execs Honda: Dealerships will have Fits more than a month early Infiniti's stylish stretch Cadillac will offer 4-cylinder sedan in '10 Chrysler redesigns new design boss' spot in exec ranks Genesis aims at low-priced luxury Letter to the Editor It's show and tell for auto industry in Washington Price cuts both ways The love affair continues Advance ads cost a lot, but help little Dealer-customer mandatory arbitration works Lithia sheds 2 of its Detroit 3 stores Japan sales slide; output, exports keep expanding L.A. dealers split on taking thumbprints of buyers Picture This With redesigned TL, Acura adds power, awd Personnel Chevrolet adjusts plans for coming decade GM revamps its vehicle lineup to succeed in a changed world Caddy relies on model updates over product development Buick buzzes about China Dismal sales make future of Hummer uncertain Budgets may crimp the lineup at Saturn Dreams aside, Pontiac will rely on small fwd cars Will GMC overhaul truck offerings? GM downsizes product lineup GM's powertrain plan: Less weight, better technology Hummer hopes pickup brings new buyers Dealers 'Ambush' boosts GM Certified DealerTrack adds market price checks Wholesale used-vehicle prices inch up in July Mexico sales up 2.6% in July; '08 near pace of '07 Collectors revive GM classics Honda's new Fit subcompact: Bigger, sportier Survey: Suppliers reconsider business with Chrysler Web site offers vehicle listings from Detroit 3 Nissan trains inspectors to improve quality A bumpy ride for dealer/lawmaker Buchanan Detroit dealers duel over bulk mailing Story links Nissan suicides, work pressure Times change, but supplier talk doesn't Garbage in, good stuff out Creed's creations Automotive News - August 25, 2008 Automotive News - August 25, 2008 - (Page Intro) Automotive News - August 25, 2008 - (Page BRC1) Automotive News - August 25, 2008 - (Page BRC2) Automotive News - August 25, 2008 - Study: Toyota top U.S. lender (Page 1) Automotive News - August 25, 2008 - Study: Toyota top U.S. lender (Page 2) Automotive News - August 25, 2008 - Dodge dealers: We're in a box (Page 3) Automotive News - August 25, 2008 - Nissan to leap into U.S. commercial-truck fray in 2010 (Page 4) Automotive News - August 25, 2008 - Nissan to leap into U.S. commercial-truck fray in 2010 (Page 5) Automotive News - August 25, 2008 - Cadillac will offer 4-cylinder sedan in '10 (Page 6) Automotive News - August 25, 2008 - Cadillac will offer 4-cylinder sedan in '10 (Page 7) Automotive News - August 25, 2008 - Genesis aims at low-priced luxury (Page 8) Automotive News - August 25, 2008 - Genesis aims at low-priced luxury (Page 9) Automotive News - August 25, 2008 - Genesis aims at low-priced luxury (Page 10) Automotive News - August 25, 2008 - Genesis aims at low-priced luxury (Page 11) Automotive News - August 25, 2008 - The love affair continues (Page 12) Automotive News - August 25, 2008 - The love affair continues (Page 13) Automotive News - August 25, 2008 - Dealer-customer mandatory arbitration works (Page 14) Automotive News - August 25, 2008 - Dealer-customer mandatory arbitration works (Page 15) Automotive News - August 25, 2008 - Lithia sheds 2 of its Detroit 3 stores (Page 16) Automotive News - August 25, 2008 - Lithia sheds 2 of its Detroit 3 stores (Page 16a) Automotive News - August 25, 2008 - Lithia sheds 2 of its Detroit 3 stores (Page 16b) Automotive News - August 25, 2008 - Japan sales slide; output, exports keep expanding (Page 17) Automotive News - August 25, 2008 - Japan sales slide; output, exports keep expanding (Page 18) Automotive News - August 25, 2008 - Japan sales slide; output, exports keep expanding (Page 19) Automotive News - August 25, 2008 - Picture This (Page 20) Automotive News - August 25, 2008 - Picture This (Page 21) Automotive News - August 25, 2008 - Picture This (Page 22) Automotive News - August 25, 2008 - With redesigned TL, Acura adds power, awd (Page 23) Automotive News - August 25, 2008 - Personnel (Page 24) Automotive News - August 25, 2008 - Personnel (Page 24a) Automotive News - August 25, 2008 - Personnel (Page 24b) Automotive News - August 25, 2008 - Personnel (Page 24c) Automotive News - August 25, 2008 - Personnel (Page 24d) Automotive News - August 25, 2008 - Personnel (Page 25) Automotive News - August 25, 2008 - GM revamps its vehicle lineup to succeed in a changed world (Page 26) Automotive News - August 25, 2008 - Caddy relies on model updates over product development (Page 27) Automotive News - August 25, 2008 - Budgets may crimp the lineup at Saturn (Page 28) Automotive News - August 25, 2008 - Budgets may crimp the lineup at Saturn (Page 29) Automotive News - August 25, 2008 - Dreams aside, Pontiac will rely on small fwd cars (Page 30) Automotive News - August 25, 2008 - GM downsizes product lineup (Page 31) Automotive News - August 25, 2008 - GM's powertrain plan: Less weight, better technology (Page 32) Automotive News - August 25, 2008 - Dealers (Page 33) Automotive News - August 25, 2008 - Wholesale used-vehicle prices inch up in July (Page 34) Automotive News - August 25, 2008 - Wholesale used-vehicle prices inch up in July (Page 35) Automotive News - August 25, 2008 - Wholesale used-vehicle prices inch up in July (Page 36) Automotive News - August 25, 2008 - Wholesale used-vehicle prices inch up in July (Page 37) Automotive News - August 25, 2008 - Wholesale used-vehicle prices inch up in July (Page 38) Automotive News - August 25, 2008 - Mexico sales up 2.6% in July; '08 near pace of '07 (Page 39) Automotive News - August 25, 2008 - Collectors revive GM classics (Page 40) Automotive News - August 25, 2008 - Honda's new Fit subcompact: Bigger, sportier (Page 41) Automotive News - August 25, 2008 - Survey: Suppliers reconsider business with Chrysler (Page 42) Automotive News - August 25, 2008 - Survey: Suppliers reconsider business with Chrysler (Page 43) Automotive News - August 25, 2008 - Nissan trains inspectors to improve quality (Page 44) Automotive News - August 25, 2008 - Nissan trains inspectors to improve quality (Page 45) Automotive News - August 25, 2008 - Creed's creations (Page 46) Automotive News - August 25, 2008 - Creed's creations (Page 47) Automotive News - August 25, 2008 - Creed's creations (Page 48)
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