Automotive News - February 18, 2008 - (Page 52)

52 • FEBRUARY 18, 2008 NADA MAKE MEETINGS Saturn is expected to be GM’s growth brand Jamie LaReau jlareau@crain.com Highlights Continue the sales momentum to increase sales volume Boost dealer profitability with higher average transaction prices Emphasize hybrid and green technology higher average transaction prices this year, brand leaders told dealers. “Their sales plan is they’re saying there will be a slight increase in overall SAN FRANCISCO — Saturn executives told dealers at the make meeting that General Motors expects its growth over the next five years to come from Saturn. Saturn’s goal for 2008 is a slight increase in sales. The boost will come on the momentum built with new products such as the Aura sedan, Outlook crossover and recently launched Astra small car, dealers were told during the meeting. Dealers also can expect to earn sales via a shift from full-sized trucks to cars and small SUVs,” said John Pitre, general manager of Motor City Auto Center (Pontiac-Buick-GMCSaturn-Lexus) in Bakersfield, Calif. Saturn had a 12.6 percent increase in retail sales in 2007 vs. 2006, said Jill Lajdziak, Saturn’s general manager. The average transaction price was up by $7,000 in 2007 compared with 2006, she said, and retailer profitability grew by 24 percent last year compared with 2006. Saturn’s total U.S. sales for January rose 12.1 percent to 15,359 from the same period a year earlier. “We’ve got momentum on our side,” Lajdziak said. By the end of the month, all Saturn retailers will have the new Astra hatchback in stock, Lajdziak said. The brand is considering putting conquest incentive cash on that car in certain markets. That means if a consumer comes in with a non-GM product, the dealer will have extra cash to offer the customer to close the deal. Later this year, Saturn will launch the Two Mode hybrid Vue and is considering a plug-in version of the Vue by 2010, Lajdziak said. Pitre said his average transaction prices for Saturn have gone from $17,000 in 2006 to $21,500 last year. Of all his brands, other than Lexus, he is most optimistic about Saturn. He said his Saturn profits have gone up year-over-year. Said Pitre: “Our Saturn store remodel will be done in July, so that’s a sign that we’re very bullish on the brand.”c Cadillac challenges dealers to boost sales Jamie LaReau jlareau@crain.com Highlights GM will push a green marketing message Jamie LaReau jlareau@crain.com SAN FRANCISCO — Cadillac leaders challenged dealers to ride the momentum of the new CTS sedan and bring the brand’s annual sales back to the 2005 level of 192,000 retail sales. “I laid out the sales challenge because we’ve got to turn this around,” Jim Taylor, Cadillac general manager, told Automotive News after the make meeting. Dealers are up for the challenge, saying they’d like to reach 210,000 units sold by year end. One dealer says that given the brand’s strong product lineup with the new CTS and the Escalade SUV still in demand, reaching 192,000 should be possible. “It’s just one more a month, and we’re there,” said Lynn Thompson, owner of Thompson Sales Co. (Buick-Pontiac-GMC-Cadillac-Saab) in Springfield, Mo. Cadillac also teased dealers with talk of a CTS coupe variant similar to the concept vehicle shown at the Detroit auto show, dealers say. Cadillac did not indicate when the vehicle might be built. “They talked about the CTS coupe coming, which is just awesome,” Thompson said. “We will do really well with that. It’s for the person who doesn’t have any kids and wants something stylish.” To continue the brand’s image boost, Cadillac pushed dealers to emphasize the Platinum series. Highlights E-Flex technology may be shared GM wants to be a green leader with hybrid and E85 marketing GM confident about current product portfolio ©GM CORP. If Cadillac is to meet its sales goals, the CTS must stay hot. Raise sales back to 2005 levels of 190,000 plus Emphasis on edgy future product possibilities Boost brand’s prestige with a CTS coupe, new Platinum series Cadillac will offer a Platinum series this spring on the Escalade similar to the one it has on the DTS sedan.c The Superior Dealer Program Property & Casualty Insurance for Franchised Automobile Dealers SAN FRANCISCO — During its allbrand make meeting, General Motors outlined its marketing plan for hybrids and other environmentally friendly technology, such as E85. “Their desire is for GM to take the lead in being green,” said David Herndon, who owns Herndon Chevrolet in Lexington, S.C. GM also told dealers that it felt confident in its product lineup, Herndon said, and that even if the economy is tough, GM should have a solid year. Dealers said that during the meeting, they questioned leaders about GM’s plans to consolidate dealerships. The leaders reiterated GM’s desire to winnow the number of dealerships it has, particularly in large metro markets, but told dealers GM would do so only if it benefited all parties, said Herndon and dealer Lynn Thompson. Finally, GM emphasized the need to protect its market share as import brands also look to make sales gains. “I feel very positive about GM and its future,” said Thompson, owner of Thompson Sales Co. (Buick-PontiacGMC-Cadillac-Saab) in Springfield, Mo. During a question-and-answer period, GM leaders said that if the company produces the Chevrolet Volt, other brands might get a variant of the technology used for the batterypowered car. The E-Flex powertrain, which GM is planning for the Volt, would use lithium ion batteries to propel the car. A small engine would be used only to recharge the batteries after 40 miles. GM is working toward producing the Volt by 2010 and plans to test prototypes by this summer. c Chevrolet can stay No. 1, if it will fight Jamie LaReau jlareau@crain.com Highlights Continue the Malibu’s sales momentum Defend truck position Continue fuel economy story portant to Chevrolet. We’re not going to let our guard down. Plus we have the Traverse crossover coming, a redesigned Aveo and the Camaro down the road.” Traverse marketing will be aimed largely at families, with the hope of attracting minivan owners, Peper said. He told dealers to continue aggressive car sales using the Malibu as a halo product. Dealers said Chevrolet will continue to promote its vehicles’ fuel economy, maintaining current advertising that touts the fuel alternatives GM is developing, including fuel cells and E85. Peper said research shows the advertising has been wellreceived. c Take advantage of the beneﬁts oﬀered by The Superior Dealer Program and reduce your insurance costs. Oﬀered Exclusively through CREATIVE AGENCY GROUP AGENCY COORDINATED INSURANCE AND FINANCIAL SERVICES “The Dealer Specialists Since 1987” John J. Birofka, Executive Vice President SAN FRANCISCO — Chevrolet has the product and brand positioning to remain the top-selling U.S. brand over No. 2 Toyota and No. 3 Ford, General Motors executives told dealers at the Chevrolet make meeting. But dealers were told they must defend the brand’s truck sales, continue to push car sales — especially of the new Malibu sedan — and market fuel economy. “It’s a tough business environment, but 2007 was better than it seemed,” said a Chevy dealer after the meeting. Chevrolet General Manager Ed Peper told dealers they must defend the brand’s truck sales in light of the arrival this year of new versions of the Ford F-150 and Dodge Ram. Chevrolet plans to keep the Silverado fresh with special versions such as the AllAmerican edition and the Two Mode Hybrid model coming out this fall, Peper told Automotive News. Said the dealer: “Trucks are so im- http://www.creativeagency.com http://www.creativeagency.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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