Automotive News - February 18, 2008 - (Page 34)

34 • FEBRUARY 18, 2008 NADA CONVENTION Toyota goal: Create stress-free store Lindsay Chappell lchappell@crain.com SAN FRANCISCO — After sprinkling a box of magic Toyota dust (really) on an audience of import dealers, Jim Lentz made a confession: Toyota is having a tough time, too. “When good Toyota dealers tell me that their traffic is down as much as 60 percent, I know things are off kilter,” said Lentz, president of Toyota Motor Sales U.S.A. Inc. Is your computer services company taking you for a ride? Call Blume & Faulkner at 1.800.376.7766 and slam on the brakes. Computer companies such as Dealer Computer Services (Reynolds & Reynolds) have become notorious for withholding critical data, overcharging for services, and locking car dealerships up in punitive, long-term contracts. There is a way out. Blume & Faulkner, in association with Buchanan & Burke (recently rated “Super Lawyers” in Texas), has arbitrated over 800 matters and has over 25 years of experience representing auto dealers. Fight back. Call 1.800.376.7766 to discuss your options today. BUCHANAN BURKE Kevin Buchanan, Rugger Burke Blume & aulkner,PLLC F Jim Blume, Richard Faulkner Located in Dallas, Texas Advertisement paid for by Blume & Faulkner, PLLC, and Buchanan & Burke, LLP Toyota sales declined 2.3 percent in January. Toyota’s solution will be a campaign to improve service operations and make the dealership experience less stressful, Lentz told dealers at the annual luncheon of the American International Automobile Dealers Association on Monday, Feb. 11, here. Among its goals: shortening the finance and insurance process; identifying ways to move vehicles through service appointments quickly; and reducing the amount of time customers spend in the dealership. Lentz opened with a joke: He had a little red box, supposedly filled with magic dust, which he offered to sprinkle on the multitude to spread Toyota’s success. But he quickly made it clear that the only magic is hard work, because even Toyota is scrambling to cope with a tough market and jaded shoppers. Consumers have become “supersaturated” with activities and distractions — too much multitasking, too many media alternatives, he said. They dread a trip to the dealership. Making dealership visits shorter will improve consumer attitudes, he reasoned. He admitted Toyota is as guilty as other automakers of stressing out consumers. “We create different names for the same thing,” he said. An example: A leather sport package on the Camry is known as “Option Package QC” in dealer materials, but as “Option Package B” on Toyota’s Web site. Lentz cited research that indicates JOE WILSSENS Toyota’s Jim Lentz says one positive visit to a dealership service department increases by a third the likelihood that a consumer will buy a vehicle there. one positive visit to a dealership service department raises by one-third the likelihood of a consumer buying a vehicle at the store. After five visits, he said, the odds of a purchase are doubled. c Minority dealers see tough times in 2008 Arlena Sawyers asawyers@crain.com SAN FRANCISCO — The economic downturn, lack of access to capital and manufacturers’ efforts to consolidate their dealer networks are threatening minority dealers, panelists said at a breakfast here for minority dealers during the NADA convention. Desmond Roberts, president of the National Association of Minority Automobile Dealers, said many minority dealers in business today went into failing, undercapitalized stores. “The situation for minority dealers is too extremely precarious,” said Roberts. “We are usually required to take over a point that was failing. The minorities in business today who haven’t had the chance to establish themselves well are in dire straits. “I think the manufacturers have put the need to retain minority dealers on the back burner. That’s a huge mistake.” Roberts, who owns two Chevrolet stores and one Chrysler-Jeep-Dodge dealership in suburban Chicago, spoke during a discussion about how to help minorities keep their stores during the economic downturn. Panelist Danny Ramirez, president of Ramirez Family Dealerships in Rio Grande City, Texas, said minority dealers often are placed where they don’t NAMAD’s Desmond Roberts says automakers are making a “huge mistake” by not stressing minority-dealer retention. know local financial institutions, making it difficult to get financing. He urged dealers to get involved with NADA, NAMAD and the Alliance of Ford Motor Minority Dealers, which have relationships with financial institutions. Roberts urged dealers to turn more of their attention to used vehicles and their parts and service business. “We have to focus on areas where we can make a profit,” he said. An audience member asked whether NADA could help create a capital fund for minority dealers. Panelist John McEleney, owner of McEleney Motors Inc. in Clinton, Iowa, said legal issues would prevent NADA from providing financial support for any one group of dealers. Panelist Greg Jackson, owner of Prestige Automotive Group in suburban Detroit, disagreed: “There are zillions of attorneys, and there is no legal problem that cannot be worked though.”c http://joeverde.com/store

Table of Contents Feed for the Digital Edition of Automotive News - February 18, 2008

Ford cuts equipment combinations on '09s Lenders shun subprime market Toyota dealers test satellite service centers Despite cost, more carmakers use laminated glass Merger produces turnaround firm Chrysler would shut to move Plastech work Jeep accessories: Mo' for Mopar Auctions: Repos are rising Automakers face more child safety rules Supplier Personnel Family-owned stores could be tough sell for consolidation What would lineup be with brands under single roof? Mercedes will pay $9.5 million to settle suit Beru revamps strategy to boost profits, growth Jaguar: Dealers take 10,000 customer deposits for XF sedans Chrysler exec: Performance segment will survive Mahindra to offer hybrids in U.S. Mazda ad agency hires VW and Mini creative whiz Icy weather and perhaps boredom chill roadster sales GM, Saturn: What's after Reynolds? Ford: Mid-sized model year for mid-sized cars Kia's new American boss: Let's boost sales Rolls gets sporty Luxury brands push to meet demand in Russia Dealer is makers' best voice in D.C. Get real, Kia, Hyundai Face it, Detroit: Trimming dealers will be expensive GM has confidence in the Chevy Volt It's no wonder auto sales are declining A workable idea: GM dealer buyouts It's deja vu again with reborn 2CV Nothing beats face to face There's a person behind that e-mail Buying cars online makes perfect sense Bush seeks to save 2008-11 CAFE rules Personnel Lear investor: No regrets about blocking buyout GM CFO is mum on more aid to Delphi Dealers Road to tomorrow is paved with plastics Council aims to keep Ford current on environmental issues VW ponders Phaeton's U.S. flop, may try again McGuffie is Covisint's president In hydrogen race, Mazda seeks quicker route Suit seeks to enforce title-washing remedy Suppliers to the 2008 Buick Enclave Mercedes, Audi warn dealers: No sales for export Sykora wants CAFE flexibility Minority dealers see tough times in 2008 Arlena Sawyers Toyota goal: Create stress-free store NADA's Taylor predicts 15.7 million U.S. sales this year Honda widens support for dealer ad groups Jay's jabs Survival 101: Get lean, work harder Microsoft will test dealership system Farley wants market-by-market sales strategy Entertaining the troops Report: Detroit 3 cutbacks curb rental-fleet sales Dilts: High interest rates hurt industry GM asks for dealer assistance on quality On the Record Fisker: We're close to making plug-in car J.D. Power exec: Internet leads are slipping away Minority auto group nears 2 deals Garmin makes navigation technology deal Tenneco wins Ford work B-P-G focuses on new product push Volvo offers cash to thin the herd Cadillac challenges dealers to boost sales Chevrolet can stay No. 1, if it will fight GM will push a green marketing message Saturn is expected to be GM's growth brand Certified used sales help Honda dealer profits Hummer counts on pickup to perk sales Mazda will boost marketing budget, unveil Mazda6 Saab dealers to get new vehicles Toyota wants even better customer loyalty Infiniti stresses profits and customer satisfaction Mitsubishi CEO sets tough U.S. sales goal Nissan exec: New models will boost per-store sales Suzuki dealers cheer return of incentives Ford to boost dealer margins Jag dealers anxiously await the XF Ford executives vague about Mercury future Subaru dealers want diesels, hybrids Acura upscale shift inspires 'great faith in the future' BMW readies national loaner-car program Land Rover: Future upbeat, unclear VW dealers get vehicles on wish list Chrysler dealers OK with consolidation plan Mercedes pushes dealership standards Porsche shrinks as luxury segment lapses Large Hyundai dealers get more room to roam Execs' exit stuns Kia dealers Ford recalls 180,000 trucks over door part, fuel hose GM posts massive loss; eyes N.A. profits by 2011 Big-truck sales fall 33.5% in Jan. WTO rips China's tariffs on imported auto parts Fiesta will rejoin the party in the U.S. UAW's Valentine to Delphi: Hands off our pensions Rx for dealership flux: NFL draft + Mideast bazaar Toyota gets the boot in Mexico Nissan triples female managers Silverado hits a million, rolls on

Automotive News - February 18, 2008

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