Automotive News - February 18, 2008 - (Page 55)

FEBRUARY 18, 2008 • 55 NADA MAKE MEETINGS Suzuki dealers cheer return of incentives Arlena Sawyers asawyers@crain.com Highlights Reinstated customer incentives More Internet ad spending Year-over-year gain in sales for the first 10 days of February “We spoke to them about it, and they gave it back to us in February,” said Greenblatt. “Any time you have a decrease in rebates, it’s going to hurt the profitability of the dealership. The thing about Suzuki is they are responsive.” Gary Akin, Suzuki’s vice president of sales, says the company backed off SAN FRANCISCO — After stalling in January, sales of Suzuki vehicles are back on track, thanks to the reinstatement of customer incentives that were discontinued at year end, the president of the Suzuki Dealer Advisory Council said after the brand’s make meeting. Roy Greenblatt, owner of three Suzuki stores in New Jersey, said Suzuki had a retail incentive program of $500 per vehicle in December that was known as holiday cash. That ended at the end of the year. Roy Greenblatt: “Any time you have a decrease in rebates, it’s going to hurt the profitability of the dealership.” of market support in January and quickly realized its mistake. He said the incentive amounts are based on the vehicle and region. For example, in the central region, Suzuki is offering $500 on the 2008 SX4 sedan and crossover, $750 on the 2008 Grand Vitara and $2,500 on the 2008 XL-7. Akin said dealers can get additional $250 and $500 coupons for consumers online. The program runs through February, Akin said. “We’re going to gauge the market on a day-by-day basis to see what adjustments we need to make,” he said. “Our 10-day report was much better than what we had in January and better than last February.” Greenblatt said Suzuki executives also told dealers during the meeting that the company would increase Internet advertising. c 30 25 187 8 21 24 100 5 Mitsubishi CEO sets tough U.S. sales goal Kathy Jackson kjackson@crain.com Highlights Dealer profitability Increased sales More marketing dollars 2007. Dealers say they lack marketing dollars. Don Herring, the dealer council chairman, said a new dealer incentive plan announced this month should spur sales. “It’s one of the most aggressive I have seen,” said Herring, owner of three Mitsubishi stores in the Dallas area. “If this new program is a blueprint for the rest of the year, I think our marketing plan will be there.” Dan Kuhnert, Mitsubishi’s sales JOE WILSSENS SAN FRANCISCO — Mitsubishi and its dealers agree the automaker needs to boost its U.S. sales. But can they reach Hiroshi Harunari’s lofty goal? Harunari, CEO of Mitsubishi Motors North America, reiterated to dealers at the make meeting that they should aim for 130,000 sales, a target he set when he took over in January 2006. “That will be hard,” said Ramsay Gillman, a Mitsubishi dealer in Houston. “Mitsubishi is doing better financially, but we’re all extremely concerned with this shrinking market.” Mitsubishi had only 7,226 sales in January, 23.0 percent below January Hiroshi Harunari, left, CEO of Mitsubishi Motors North America, greets Don Herring, chairman of Mitsubishi’s dealer council, before the make meeting. and marketing chief, said dealers can earn as much as $2,000 per car sold under the new program. He said the incentive is the same for each nameplate sold. Under the previous program, the amount of money earned depended on the model of the car. He said dealers can choose to earn their money by selecting a volume-based or objective-based program. “We have to sell more cars, and we have to do it smarter,” Kuhnert said. “Profitability is a big concern.” Kuhnert would not say whether Mitsubishi’s 500-plus dealer body is too large. He said current stores need higher sales. Kuhnert said that at a dealer meeting in March, the company will lay out its current and near-term product lineup. He said Mitsubishi also is looking at initiatives, such as better inventory management, to help shore up dealer profits. c SO, YOU’RE A NUMBERS GUY? 30 years of automotive marketing that sells 25 years management continuity 187 dealers and dealer groups 8 manufacturers - Tier II 21 franchises - Tier III 24-hour campaign turnaround 100 percent results driven 5 minutes to realize you’ve made a great business decision Infiniti stresses profits and customer satisfaction Lindsay Chappell lchappell@crain.com Highlights Enhancements for used-vehicle marketing Gains in sales satisfaction planned for 2008 EX crossover ads coming retailers to purchase portfolios of off-lease vehicles with factory assistance. Igo also wants to improve its customer-handling procedures. He told the group that Infiniti’s performance on J.D. Power and Associates’ Sales Satisfaction Index — which measures the response of vehicle buyers to the sales and service experience at the dealership — fell in 2007, despite Infiniti’s gain in market share. He noted that Infiniti topped Power’s 2003 Customer Satisfaction Index, which measures satisfaction with the dealership service department during SAN FRANCISCO — Infiniti has new products in the pipeline and advertising for the new EX crossover launching this month. Now it wants to turn more attention to improving dealer profits and customer service performance this year, executives told dealers at the make meeting. A key area for boosting profits will be the way Infiniti dealers market certified used vehicles, Mark Igo, Infiniti Division general manager, told dealers. He said Infiniti will improve how it manages its inventory of off-lease vehicles and distributes them to retailers and also how it drives shoppers to the Web to shop for used vehicles. Igo said Infiniti is working with the dealer advisory board on plans that will emerge this year. Dealers said one possibility would be to allow Infiniti the first three years of ownership. “We want to get back to that,” Igo said. The challenge, he warned dealers, is that Infiniti has a younger buyer demographic than other luxury marques. “Younger customers tend to be a little harsher on grading you,” he said as the meeting dispersed. Peter Wilson, owner of Infiniti of Orlando in Orlando, Fla., and chairman of the dealer advisory board, said the new efforts will be tailored to customers who are more technologically advanced and product-savvy. “The people coming into the dealerships already know a great deal about the product and all of the features on it,” Wilson said. “They frequently guide the conversation, and they want a more expansive discussion with us. We need to do a better job of catering to their expectations.” c Nissan exec: New models will boost per-store sales Lindsay Chappell lchappell@crain.com Highlights Search is on for higher dealer profits in 2008 Dealers hear plans for Maxima, GT-R launches New factory execs introduced The committee wants to improve Nissan’s certified used vehicle program and upgrade factory-dealer communication systems. Al Castignetti, named Nissan Division general manager in December, told dealers the flow of new products SAN FRANCISCO — Nissan dealers achieved their sixth-highest profits in history in 2007. But with new models and a rising market share, that’s not so great, company executives told dealers at the make meeting. Boosting dealer profits will be a key concern in 2008, said Saul Rosen, chairman of the Nissan dealer advisory board and owner of Nissan stores in Milwaukee and the Chicago area. He said a dealer profit committee is reviewing various plans. will increase sales per store. In June, Nissan will launch a redesignedMaxima sedan as well as the $70,000 GT-R. “The answer is product,” Castignetti said as the meeting was dispersing. “We’re in a tough market, and customers want to hear about the latest and greatest. We’re lucky to have new products.” Castignetti said 692 dealers have chosen to sell the GT-R. The GT-R agreement requires retailers to buy new service equipment and commit to special sales and service procedures. Castignetti was one of three key ex- ecutives to appear before the annual franchise meeting for the first time in new roles. Castignetti’s boss, Mark McNabb, addressed the group as senior vice president for North American sales and marketing. McNabb has held various Nissan executive titles over the past two decades but returned to the company from Mercedes-Benz shortly after last year’s NADA meeting. Ben Poore also was introduced to the group. Poore became vice president of North American marketing communications late last year. c grahamadv.com The numbers don’t lie. Call Graham today. 800.776.7336 http://grahamadv.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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