Automotive News - February 18, 2008 - (Page 48)

48 • FEBRUARY 18, 2008 NADA CONVENTION Fisker: We’re close to making plug-in car SAN FRANCISCO — Henrik Fisker thinks he can have his $80,000 Karma lithium ion plugin hybrid vehicle on the road by the end of next year. The CEO of Fisker Coachbuild LLC tried to quell industry skepticism when he talked with Staff Reporter Mark Rechtin at the J.D. Power Automotive Roundtable here. Franklin McLarty says RLJMcLarty-Landers hopes to close on two dealership purchases by the end of the second quarter. Q&A Minority auto group nears 2 deals SAN FRANCISCO — RLJ-McLartyLanders Automotive Partnership, a private dealership group that aspires to become one of the country’s largest minority-owned retailers, is near agreements on two dealerships, said Vice President Franklin McLarty. “We have a couple of deals under contract that we hope will close by the end of the second quarter, if not earlier,” McLarty said at the NADA convention. Company principals are Robert Johnson, founder of Black Entertainment Television; former Clinton chief of staff Mack McLarty; and Arkansas dealer Steve Landers. Johnson owns 60 percent of the group. Franklin McLarty is Mack McLarty’s son. Part of the group’s strategy is to train minority dealership managers who want to become dealers and make ownership stakes available to them. The group has 10 dealerships that sell Chrysler, Dodge, Jeep, Ford, Nissan and Toyota vehicles. The contracts, when completed, would be the first acquisitions by the group since it was formed last fall. c There were people who thought your unveiling at the Detroit auto show was just vaporware. Where are you on the battery technology? We’re closer than anyone. Our partner, Quantum Technologies, developed this technology four years ago for the military. They wanted a vehicle to get behind enemy lines quietly, with no heat signature, but then have the power to get out of there quick. Quantum developed the software, which is what the other people can’t crack. We’re working on two different batteries, but we’re close on one battery that is best for automotive technology. We’ve solved all the issues with lithium ion heating. We will have all the certification and engineering done in 20 months. How can you come to market quicker than Toyota or General Motors? The big players all want to move from regular cars to mild hybrids to plug-ins. To go directly to plug-ins is too brutal a progression because it means a new drivetrain, which means a new platform. It also makes people JOE WILSSENS Henrik Fisker says all the certification and engineering work on the Karma plug-in hybrid will be done in 20 months. wonder what is wrong with your regular cars. We just want to sell the plugins. What was the reaction at the show? We had people coming up to us with black American Express cards, and we didn’t know what to do with them. We’re getting 100 deposits a week, and we’ve made no announcement about service, warranty or dealers. How will you manufacture the Karma? We will not do it ourselves. We’ve been approached by car companies, offering to discuss building our cars on a contract basis. Our brand DNA is in the hybrid. We don’t care about how the air conditioning or stereo looks. And the OEM wants access to our technology. How can you sell 15,000 units globally of an $80,000 car? Look at the iPod. If there is no real competition, you can sell a lot of anything. There is no competition for the Karma. How many dealers do you want? We want to have 25 signed up by this summer and about 40 by the time we launch.c J.D. Power exec: Internet leads are slipping away SAN FRANCISCO — Gene Cameron came to J.D. Power and Associates three years ago after a successful career in automotive advertising. His last post was as CEO of BBDO West Advertising. As vice president of marketing and media solutions for J.D. Power, Cameron is working on the relationship between how the industry advertises and how consumers perceive and respond to the advertising. At the NADA convention, Cameron presided over a closed-door meeting with dealers to talk about trends in Internet marketing. He talked with Staff Reporter Lindsay Chappell about the key issues. ago it was under 50 percent. So we might get the impression that everyone’s on board. Yes, but there’s a problem. The conversion rate is falling, even as the level of activity rises. Over the past three years, we’ve seen conversion rates drop from 7 percent to 5.5 percent. That’s based on third-party shopping services. It’s mysterious. Define conversion rate. The process of converting a shopper into a sales lead. Generally, it begins when the shopper provides some form of contact information. Why would this be happening? There are a number of possible explanations. The customer may not understand the sales process. Or maybe the sales leads are being handled poorly by the retailer. We want to talk to dealers. You must have a hunch about how to fix it. There are three parties involved in the process: the manufacturer, the regional dealer association and the individual retailer. I think it’s fair to say the industry needs to come to an understanding on who’s responsible for generating the leads. Things are a little chaotic in this arena.c Q&A J.D. Power has been talking a lot lately with dealers about Internet retailing. What’s up? We see Internet activity continuing to be the dominant emerging shopping mode in the auto industry. The OEMs are telling us that it’s the center of all their planning. Can you cite the hard numbers? Yes. Seventy percent of buyers used the Internet in some way to make their purchase last year. It was 68 percent the year before. And five years http://www.cardonegroup.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

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