Automotive News - February 18, 2008 - (Page 54)

54 • FEBRUARY 18, 2008 NADA MAKE MEETINGS Toyota wants even better customer loyalty Mark Rechtin mrechtin@crain.com Highlights Increase customer loyalty Improve allocation process 20 redesigned or face-lifted vehicles in next 18 months Motors Toyota in Wisconsin Rapids, Wis., says Toyota should offer free maintenance as a dealer co-op program. “I have 60 percent customer retention at my store. I think a lot of it is because we offer free service and roadside assistance for the first year. It costs $125 through National Auto SAN FRANCISCO — Although it has the top loyalty numbers in the industry, Toyota wants its dealers to aim still higher. That move will start in the service drive. Toyota has two plans that will ease the burden on dealer service lanes swollen with more customers than they can handle. “We have 65 percent owner loyalty, and it’s nice to be No. 1. But there’s no reason we can’t be at 70 percent or 75 percent,” said Bob Carter, Toyota Division general manager. Mark Olinyk, president of Mark Care, and it gets folks back into the dealership,” Olinyk said. Carter shot down the idea, saying Toyota customers are not interested in free maintenance programs. But Carter added that a customer who visits a Toyota dealership twice for service during his vehicle ownership is seven times as likely to buy another Toyota. Olinyk added that Toyota could improve its loyalty by improving its sales satisfaction process. Part of that comes from Toyota’s inventory allocation practices. Toyota uses a variation on the “turn-and-earn” system, which Olinyk said places stress on dealership staff. Olinyk believes seasonal variations and forward-looking sales plans should be taken more into consideration for allocations. That way, the sales force wouldn’t feel so much pressure at the end of the month to hit a sales target or lose future allocations. Toyota excited dealers by informing them of 20 vehicles that will be redesigned or receive a face-lift within 18 months. The redesigned Corolla and Matrix compacts just arrived, and the Venza crossover will debut this fall. A diesel Tundra pickup should arrive next year. c Certified used sales help Honda dealer profits Kathy Jackson kjackson@crain.com Saab dealers to get new vehicles Jamie LaReau jlareau@crain.com SAN FRANCISCO — Honda dealers recorded a 4 percent profit increase in 2007 compared with 2006. And it wasn’t entirely because of new-car sales. Dick Colliver, sales chief for American Honda Motor Co., said certified used sales brought in many of the higher profits. “We sold over 200,000 (certified used cars) last year, the first time ever,” he told Automotive News after the make meeting. “The grosses are better on certified. Used buyers are more loyal to service departments. Fifteen percent to 25 percent of customer-pay is coming from certified vehicles.” But it wasn’t all rosy for Honda. Bill Smith, the Honda dealer council chairman, says dealers need more ad money, and the company needs to JOE WILSSENS Honda sales chief Dick Colliver, left, chats with dealer Kent Erle Sokolow of Colonial Honda in Glendale, Calif. Highlights Dealer profitability More ad dollars More crossover vehicles get more aggressive in the crossover segment. “We want Honda to focus a little more money on ads,” said Smith, owner of the Russell & Smith Auto Group in Houston. “That will help us sell more.” Smith also noted that the crossover business is gaining momentum. “That’s something dealers would like to see more of, but there is nothing in the mill that we know about,” he said. “The CR-V is something like a crossover, but it’s small. We need something like the Mazda CX-9.” Colliver would not talk about future product but said Honda will support the dealers with more ad money. c Hummer counts on pickup to perk sales Jamie LaReau jlareau@crain.com Highlights The H3T pickup is a key addition Brand sales should increase 20% to 30% in 2009 H4 production target: 2012 ers that 2008 sales are expected to be up slightly over those of 2007, largely because of the pickup. “Dealers are apprehensive because of the downturn in the mid-sized SAN FRANCISCO — Hummer hopes the pickup it introduces later this year, the H3T, will lift Hummer’s sales 20 to 30 percent in 2009, Hummer leaders said at the make meeting. The H3T pickup arrives in dealerships in October and is intended to energize the brand. Hummer’s January sales dropped 23.4 percent to 3,050 units compared with January 2007. Hummer executives told deal- truck markets,” said a Hummer dealer who asked to not be named. “But it is Hummer, so you never know how it’ll play out.” Hummer executives told dealers that H3T sales could total 10,000 to 15,000 annually. The H2 won’t change in the foreseeable future, Hummer executives told dealers. But the H3 will be restyled in 2010, they said. Hummer executives told dealers that the H4 SUV likely will not be built until 2012. c Mazda will boost marketing budget, unveil Mazda6 Donna Harris dharris@crain.com Highlights Marketing budget gets bigger Mazda6 will be unveiled in April Certified pre-owned promotion considered SAN FRANCISCO — Mazda North American Operations will display its redesigned Mazda6 at an April dealer meeting in Denver, said CEO Jim O’Sullivan. The company also will preview other products at the meeting, but a hybrid or alternative-fuel vehicle is not on the agenda, O’Sullivan said. Mazda’s marketing budget will get a boost in 2008, but O’Sullivan declined to say by how much. The company likely will promote its crossovers through test drives at unconventional locations, as it did with the CX-9 at Circuit City stores in November and December. Test-drive challenges go well for Mazda because it typically “makes a lot of conquest sales,” O’Sullivan said. Jeff Sikes, of Jeff Sikes Mazda in Huntsville, Ala., and chairman of the Mazda dealer council, said certified pre-owned vehicles will be another marketing focus. c SAN FRANCISCO — General Motors is giving Saab new product, but dealers have to be patient. That was the message Saab executives gave dealers at the make meeting. Dealers said Steve Shannon, Saab’s general manager, told them the company will show what it called a 9-1 concept — a very small car — at the Geneva auto show in March. “If you look at Saab’s history, they don’t have enough money to build concepts for concepts’ sake,” said one dealer who asked not to be Saab’s Shannon identified. “So told of a new 9-5. when they do do a concept, they tend to be built.” Dealers said Shannon also told them a new 9-5 sedan will be revealed this year. Shannon told dealers Saab plans to build a production version of the 9-4X biofuel crossover shown at the Detroit auto show by early 2010. The production version would likely not be a biofuel variant, the dealer said. “We have to work hard to make sure we get all of that,” said dealer Lynn Thompson, of Thompson Sales Co. (Buick-Pontiac-GMC-Cadillac-Saab) in Springfield, Mo. “Steve Shannon knows it’ll be a hard 18 months, and we’ve got a ways to go.” Saab executives told dealers that sales will likely be flat this year compared with last year and that Saab intends to start promoting its safety record more. c Highlights Small 9-1 concept car at the Geneva auto show All-new 9-5 sedan to be revealed this year Marketing will emphasize safety http://www.neosynergy.net

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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