Automotive News - February 18, 2008 - (Page 42)

42 • FEBRUARY 18, 2008 NADA CONVENTION Farley wants market-by-market sales strategy SAN FRANCISCO — Jim Farley is remaking the marketing machine at Ford Motor Co. Ford’s new group vice president of marketing and communications began his work late last year with major initiatives to decentralize marketing. That means higher spending on local and regional incentives and promotions in 2008. Farley, who left Toyota for the Ford job last October, also wants to better integrate factory and dealer media spending. A big brand campaign is in the works, but Farley says he’s not ready to roll that out yet. A national emphasis is expected in the spring as Ford prepares to launch new products such as the 2009 Flex crossover. Ford’s marketing spending in 2008 will be about the same as in 2007, Farley says, although more of this year’s money will be spent on launches. He wouldn’t reveal dollar amounts. Farley spoke with Editor-in-Chief Keith Crain, Editorial Director Peter Brown, Editor David Sedgwick and Staff Reporter Amy Wilson at the National Automobile Dealers Association convention here. and work with the dealer ad groups, locate the right message, make the right judgment about the variable marketing spend, push the right vehicle combinations to allocation. You’ve trimmed the salaried headcount by a third. Do you need to add manpower back to the regions? We have to supplement them and support them. We learned in California last year that we definitely needed to have almost a consultancy role from headquarters to identify the opportunities, identify the lift. So when you do what you do, you can measure whether it worked or not. And (you need) someone to work with the dealer ad groups. So it’s almost a consultancy role now with finance and the marketing and sales teams. There’s a perception that it’s not the coolest thing in the world to buy a Detroit 3 car. Don’t you have a big brand campaign to counter that? You have to have a lot of products that you’re launching. That’s probably the best thing you could ever do for your brand. And the second half of this year is going to be a lot of fun for us because you really do have a chance to grow with new products. But even in a new product launch, there are basic trust factors that customers have for car companies. We are working very hard on having concrete engagement with the customer on re-establishing that trust in terms of safety, quality, advanced technology and value. But the key to doing that is not a fancy TV ad. The key to doing that is to engage your dealers and your own employees first. You look at Ford in the ’80s or Mazda with “zoomzoom.” It was right before new product came. And they found out who they were. So what do we want to tell customers who we are? You can’t do that to the public until you do it with your own people. So I think the acid test for Ford Motor Company in the next six months is, what do we tell each other (and) our dealer associates? And what do you tell each other? That we have more five-star-rated vehicles on the road than any other full-line manufacturer. That we have passionate engineers. That we’re investing in advanced technology that we can democratize, like EcoBoost. You tell them about the pride that we have in our company because of our focus on excellence and quality. And you don’t just talk about J.D. Power (quality awards). You talk about our virtual-build process, where we virtually build a product to look at where all the welds are before we ever weld anything. You tell the employees about where our excellence is. That’s our starting point. And what is Ford? Ford is democratizing technology that you feel when you drive. It’s really simple: The excellence is not the hype; the excellence is what happens when you get behind the wheel. c Q&A JOE WILSSENS Jim Farley says that before Ford can connect with customers, it must tell its own employees “who we are.” on the dealers’ profitability, tier 2, tier 3, making sure we have the basics right, understanding what’s going on in each market. How variable is it from place to place? What’s happening right now in Houston is completely different from what’s happening in San Diego. Or San Bernardino versus Santa Monica. Santa Monica is doing just fine selling a lot of hybrids and Mustangs, and San Bernardino is a completely different market. It might as well be Flint. Things are extremely variable right now. As the company right-sized, our regional resources are a very different footprint. That’s a big issue for Ford Motor Company. Where do you get the resources to pull that off? You need people to actually know what’s going on on the ground and pull those levers So it looks as if it’s a tough world out there. No doubt about it. By the same token, it’s refreshing to get back to basics: localizing the market, focusing Microsoft will test dealership system SAN FRANCISCO — Microsoft Inc. is ready to test a pilot version of its dealership management system with scores of dealers this year, says John Reed, the company’s director of automotive retail solutions. Microsoft also is working with an undisclosed automaker to integrate the system with that automaker’s software systems. Reed spoke here with Staff Reporter Ralph Kisiel. John Reed: Microsoft will test its dealership management system with about 100 dealers this year. Will this be announced this year? It should happen in this first quarter. What are you showing dealers at your booth here? CRM (customer relationship management) as well as DMS. Can dealers buy the customer relationship management software as a stand-alone product? Absolutely. In fact, the French manufacturer Renault SA selected us in Europe, (and the software) is going into a number of their European dealerships. We have test-marketed that solution with a certain set of U.S. dealers as well. Market response has been phenomenal. Have you priced your dealership management system? We’re nowhere near the high end, but we’re not discount, either. We fall somewhere in between. Basically, if there’s a dealer out there that’s interested in the Microsoft solution, we want to talk to them.c Q&A What pilot plans do you have for your dealership management system? We’re in the process of closing a strategic relationship with a manufacturer, which is going to be our primary pilot target through 2008. We’re also working with a set of dealership groups on a number of strategic DMS projects. Right now we have about 100 dealers we’ve identified (who) have indicated to us they are ready to go as pilots. What kind of “strategic relationship” are you talking about? We’re going to build for that manufacturer world-class points of integration. By being able to offer the best possible integration with that manufacturer, it just adds that much more incremental value to dealerships. http://www.boomerangsystems.com http://www.boomerangsystems.com http://www.rjwa.com http://www.rjwa.com

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

For optimal viewing of this digital publication, please enable JavaScript and then refresh the page. If you would like to try to load the digital publication without using Flash Player detection, please click here.