Automotive News - February 18, 2008 - (Page 57)

FEBRUARY 18, 2008 • 57 NADA MAKE MEETINGS Land Rover: Future upbeat, unclear Mark Rechtin mrechtin@crain.com Highlights 6 new vehicles in 2008 VW moves ahead with Marketplace exclusive stores New ads earn cheers Highlights Fate of LRX unclear New ads in the works Some stores need upgrade Rover stores near Parsippany, N.J., can’t wait for Tata to take over. “Land Rover needs a major capital commitment,” Miller said. “Tata is well-financed, and they will bring capital to market.” Land Rover also is finishing off the LR2 and LR3 marketing campaigns, which show high-tech features without abandoning Land Rover’s heritage, Marchand said. “We cannot forget where the brand came from — that it’s the only world- SAN FRANCISCO — Land Rover is looking at the future without abandoning the past. The brand is taking its radical LRX concept three-door SUV on a world tour to gauge dealer and customer reaction. “If you base products on emotional reactions, it’s a go,” said Chris Marchand, executive vice president of marketing and sales for Land Rover North America. “But based on business realities, we still don’t know.” That would mean getting budget approval from Tata Motors, which is in final negotiations to buy Land Rover from Ford Motor Co. Paul Miller, owner of two Land wide, go-anywhere vehicle,” Miller said. Although falling interest rates may favor using cut-rate loans as incentives, Land Rover will continue to have about 40 to 45 percent lease penetration, Marchand said. “Some segments are under pressure, but we think we have the best (lease) programs in place,” he said. “We’re always cognizant of where our residuals are.” Land Rover’s initial quality scores still lag the industry, but the brand has made major strides, said Mike Levitan, chairman of the dealer council. “We’re watching warranty claims drop every year,” said Levitan, COO of Long Island (N.Y.) Automotive Group, which includes four Land Rover and two Jaguar stores. “But as quality gets better, the dealers need to make sure we market ourselves for customers to come back to our service department.” Land Rover’s 2007 U.S. sales were a record 49,550. Many dealerships are showing their age since the 1990s Land Rover Centre facilities program. The factory is asking stronger dealers to renovate, especially if they are looking to combine with a nearby Jaguar store. “Land Rover never pushed me,” said Levitan, who remodeled both his Land Rover stores in 2006 and saw increased sales in 2007. “We didn’t dramatically change how the center looked, but over time it just gets tired. You owe it to your customers and employees.” c VW dealers get vehicles on wish list Bradford Wernle bwernle@crain.com BMW readies national loaner-car program Ralph Kisiel rkisiel@crain.com Highlights New loaner-car program 50-state diesels coming in fall 100,000 certified used BMWs coming off lease SAN FRANCISCO — BMW of North America is creating a national loanercar program that could be ready in April. During their make meeting, BMW dealers learned that the program might be announced at BMW’s national sales conference in April, said Barton Cohen, chairman of the BMW Dealer Forum. “It’s to make certain our customers have a consistent and excellent service experience,” Cohen said. He described the initiative as an enhancement to the reimbursement program for dealers who provide BMW loaner cars to service customers. “Everyone’s anxiously awaiting this program,” Cohen said. “It’s been on everyone’s radar screen.” Dealers didn’t get much detail about the program but were told that a committee is looking into it, said Warren Waugh Jr., managing partner in the Lyon-Waugh Auto Group in Peabody, Mass. “Our loaner-car expenses have risen over the years,” Waugh said. BMW dealers learned that the 3 series and X5, shown, will get a 50-state diesel engine this fall. Tom Purves, CEO of BMW of North America, acknowledges that it is expensive for dealers to provide BMW loaner cars. There must be a balance between this expense and giving BMW owners the service experience they expect, Purves said. He would not divulge what, if any, financial help BMW will offer dealers to improve the loaner-car program. BMW told dealers that it will introduce a 50-state diesel engine this fall in the 3-series and the X5 SUV, Cohen says. Dealers also were told that more than 100,000 certified used vehicles are coming off lease. “I’m pretty excited to see that. It’s a positive thing,” said Karl Wuesthoff, president of Concours Motors Inc. in Milwaukee. “It’s a higher number than in the past, but we should look at it as an opportunity to sell more BMWs.”c Acura upscale shift inspires ‘great faith in the future’ Ralph Kisiel rkisiel@crain.com Highlights Shift to tier 1 status coming One new vehicle a year coming (includes changes to existing models) Product details coming at New Orleans dealer meeting Valerie Voyles, CEO of the Ed Voyles Automotive Group in metro Atlanta. “With the new products coming, SAN FRANCISCO — Acura dealers can expect a “huge shift” in the next year that will move the brand closer to tier 1 luxury brands such as Lexus, BMW and Mercedes-Benz. That was one of the messages that dealers heard during a 45-minute Acura make meeting here. “In the next year there will be a huge shift toward tier 1, and the dealer body is excited about that shift,” said we’re moving forward a great deal. We have great faith in the future.” The Acura TL and TSX sedans are being redesigned for the 2009 model year and arrive this year. Acura’s flagship, the RL, was just revealed during the Chicago Auto Show with a “minor model change,” said Dick Colliver, American Honda Motor Co. sales boss. Acura is Honda’s luxury brand. Based on these sedan changes and Acura’s pledges of new models, “we have great faith in the future,” Voyles said. “We’re not up there with Lexus, BMW and Mercedes-Benz, but a big shift is coming,” Voyles said. “You’ll see more separation of the brands (Acura and Honda), with more Acura-only product.” Colliver said Acura dealers will learn more product details at the dealership meeting in New Orleans in April. He predicted that “the face of Acura will be completely different in five years.”c SAN FRANCISCO — For Volkswagen dealers, it’s going to be a big year. A flood of new products arrives in showrooms. A new advertising strategy will back those launches. And the company has promised dealers news on a prospective North American manufacturing plant. The six vehicles have all been on dealers’ wish lists, particularly the Jetta TDI 50-state diesel, due in May. Before that, the Jetta Sportwagen arrives in March. The Tiguan crossover is another May arrival. Then, in fall, come the long-awaited Routan minivan, Touareg TDI diesel and flagship Passat CC sedan. Richard Fisher, owner of The Autobarn Limited, a group of three VW stores in the Chicago area, said dealers are pleased by the blizzard of new products on the way. “Dealers always want new stuff,” Fisher said. “We want to be concerned about launching all the new cars properly, but we’ve got a lot of confidence in the new leadership.” VW is moving ahead with its VW Marketplace exclusive stores. Of 588 U.S. VW dealers, 350 are Marketplace stores. Those stores account for 75 percent of sales. Marketplace stores earn 2.4 percent pretax profit, compared with 1.7 percent for nonexclusive stores, said Steve Keyes, VW’s director of corporate communications. “During 2007, the average VW dealer’s profitability improved markedly,” said Fisher. He said dealers were enthusiastic about the energy that new VW Group of America marketing director Tim Ellis is bringing to the brand. Fisher and Ellis declined to discuss the substance of new ads. c Maintain tire pressure. Retain customer loyalty. The UltraFill® 99+ Nitrogen Tire Inflation System offers the highest purity and the ability to service multiple bays in a compact, low-cost unit. We also offer an Automatic Inflation Cart that can fill all four tires to uniform pressure at once while still on a vehicle. © 2008 Air Products and Chemicals, Inc. Offering UltraFill 99+ high-purity nitrogen tire inflation is the best new customer retention tool. With UltraFill 99+, you can build loyalty and repeat business by helping your customers enjoy better fuel efficiency, longer tire life, and greater safety. Our systems also reduce the problems and hassles of false TPMS alarms. UltraFill 99+ systems provide 99.5% pure nitrogen— the highest purity available—so you can fill tires to the recommended 95% purity level in less time for less cost. Supported by a comprehensive training and promotion program that can help you sell nitrogen more effectively, the system can pay for itself in just months. Learn more and hear dealer testimonials at www.ultrafill.com/autonews, or call 800-752-1597. www.ultrafill.com/autonews http://www.ultrafill.com/autonews, http://www.ultrafill.com/autonews

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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