Automotive News - March 24, 2008 - (Page 18)

18 • MARCH 24, 2008 MazdaSpeed revs up racing accessory sales Mark Rechtin mrechtin@crain.com LOS ANGELES — Mazda avoids the big-time, big-expense world of Formula One and NASCAR racing. Instead, it focuses on grass-rootslevel competition in the Sports Car Club of America, and the effort is paying off. Mazda accounts for half the cars on SCCA racetracks, despite a much smaller light-vehicle market share than SCCA combatants Toyota, Honda and Nissan. Mazda executives say grass-roots racing brings Mazda closer to its customers than a big-league racing series can. The bottom line also benefits. For the fiscal year that ended March 31, 2007, Mazda sold $6.9 million in MazdaSpeed-branded parts and accessories to grass-roots racing teams. That is expected to increase to $7.8 million this fiscal year, says Steve Sanders, manager of MazdaSpeed Motorsports Development. “The biggest thing is the Spec Miata” racing series, Sanders says. “But we go all the way up to building ceramic apex shields for the RX-8 rotary racing engines.” Sales to racing teams made up only a fraction of total Mazda accessory revenue of about $130 million in the last fiscal year. But it is triple what MazdaSpeed sells to street-legal customers through Mazda dealerships, says Jack Stavana, director of Mazda’s accessory operations. Other touches endear Mazda to grass-roots participants. For instance, Mazda allows SCCA-licensed racers to buy cars at a discount, Sanders says. Mazda also has tech support working late on Thursdays and Fridays in case a racer needs advice or a spare part shipped before Saturday qualifying runs. “We get a lot of calls at the last minute on Friday,” Sanders says. “An engine builder can get parts direct from us and bill the racer.” Mazda also has a parts trailer at larg- The Mazda MX-5 Cup is among the grass-roots racing series that Mazda says connects it to customers. er races, such as the year-end SCCA Runoffs and many MX-5 Cup races. The racetrack is harder on a car than the street, so there are engineering benefits. A problem with the third- and fourth-gear shift forks in the MX-5 Miata was discovered in the Spec Miata series, Sanders says. A retrofit fix was in place before street-legal customers were even aware. Even when Mazda dips its toe in big-time racing, such as when it won its class with an RX-8 at the 24 Hours of Daytona, it remains a modest effort. Says Robert Davis, Mazda vice president of product development and quality: “Porsche’s catering bill at Daytona was bigger than our motorsports budget for the entire year.” c OUTSIDE THE BOX The Box. It’s what everyone seems to want to get outside of. Yet the "box" of automotive retailing is straightforward. It’s a formula that has stood the test of time: Get their attention, state the offer, and add a sense of urgency. Creative that strays too far from a retail message starts to lose its effectiveness. And ultimately, it’s your advertising that drives traffic to your stores. The creative at Mudd never loses sight of this primary objective. No matter how far we think outside the box, we always package it into a retail box that will sell more cars for you. After all, isn't that why you hired an ad agency in the first place? INSIDE THE BOX IS Smartlets, charging stations for plug-in electric vehicles, would be available curbside and in parking structures. RAVING FANS "Mudd Advertising puts us in the right place at the right time. When it comes to getting our message out, Mudd makes sure we're on the leading edge." Calif. company eyes electric charging stations for Volt, Vue Jamie LaReau jlareau@crain.com Lee Wulbert, Vice President of Operations Resnick Automotive Group #1 Illinois Toyota Dealer in 2007 for new car sales TV • Radio • Direct Marketing Interactive • Newspaper • Hispanic Media Strategy & Execution DETROIT — Chevrolet says the Volt plug-in hybrid will travel up to 40 miles on electricity before switching to a small gasoline-powered engine to propel the car while also recharging its lithium ion batteries. But what if a trip — say, a drive to work — ends before the engine can recharge the batteries? Drivers would want to recharge as soon as possible to minimize gasoline use. Two entrepreneurs think they have the answer: Smartlets. That’s what Richard Lowenthal and partner Praveen Mandal are calling the electric charging stations they plan to demonstrate in July at the Plug-In Car show in San Jose, Calif. “We’re going to have curbside charging — in parking structures, parking lots, at work and at retail,” says Lowenthal, CEO of Coulomb Technologies, of Campbell, Calif. Lowenthal and Mandal, longtime business associates, incorporated Coulomb Technologies in September. Lowenthal approached General Motors about Smartlets last fall. “We said that sounded like a good idea,” says Jon Lauckner, GM vice president of global program management. Although GM is not helping fund Coulomb’s venture, the development of a public infrastructure will help support GM’s launches of the Volt and Saturn Vue plug-in hybrids. GM hopes to get those to market in 2010. Other manufacturers also are working on plug-in electric vehicles. Coulomb thinks its meters will be compatible with the Volt, the Vue and other plug-ins, Lowenthal says. Said GM’s Lauckner in an e-mail: “The charging systems of both the Chevrolet Volt and Saturn Vue plugins will be compatible with a standard U.S. household circuit — 110 V/12-15 amps. Both will also be able to handle 220 volts.” Lauckner said Coulomb’s efforts are useful for the Volt but not mandatory for its initial launch. c http://www.mudd.com http://www.mudd.com

Table of Contents Feed for the Digital Edition of Automotive News - March 24, 2008

Ford lists 6 to succeed Mulally GM pushes luxury superstores Industry straps in for rough ride Bob Irvin is a worthy addition to Hall of Fame Debate at Scion: How to grow Ford moves executives in Asia to new jobs CEO of lanelogic: We're still here Kia's N.Y. duo Chrysler's exec trio: Reports of friction mostly fiction Where others see gloom, Honda chief sees boom in U.S. Fukui: Nickel battery is best bet for hybrid Beijing conference explores key issues in China market Planworks keeps its role as buyer for GM ads Lincoln: MKS will make up for brand's slow start in '08 Deal's no big deal: Styling top reason to buy GM Penske's Smart start: He'd like 15,000 more Dodge's pitch for Challenger: A halo that you can afford Chrysler plans 'We listen' ads You go, Bob With zest, activist Ditlow remains on lemon patrol Autos did the job after 9/11; don't bet on that now Chinese cars? Dealer beware Solar power is the only answer Where will we get power for the Volt? Want higher CAFE? First, do this In N. California, hybrids are hot Detroit 3 can learn from the Marlboro Man The Prius is a phenomenon Wait 3 years, then judge Ford How many Jeeps will India buy? Lithia looks into improper sales reports at dealerships AutoNation's lead shrinks as largest U.S. dealer group Honda ad agency creates unit to build Acura brand Study: Consistent theme in auto ads builds viewer recall Big-truck sales continue slide in Feb. -- off 27.1% MazdaSpeed revs up racing accessory sales Calif. company eyes electric charging stations for Volt, Vue Indictment: Bribe scheme cost GM $83.3 million The greening of Toyota dealerships 6 more finalists in race for PACE recognition Tenneco expands Japanese work, seeks more Bosch buys diagnostic equipment firm in China JV will design vehicle platforms Citation moves headquarters NxtGen tests emissions system VW stake may help Porsche on fuel economy rules Chrysler's Project Genesis wins over Ore. dealer Germany, new EU members send up European sales Saturn will choose store system soon VW thinks modular for flexibility at auto plants Automakers eager as axles turn high-tech Talking drivetrains with American Axle Dollar halts U.S. retail sales of Audi Q7 hybrid Hyundai: Genesis Coupe offers more go for dough Maxima's target: Luxury Euro makes Pontiac adds 3 sporty variants Outsider Elmer Johnson shook up GM Importer Yanase was Hall of Fame member Obituaries Redesigned TSX has many Acura firsts Dealers Certified sales up 7.5% in Feb.; Audi leads the way eBay's new Web site has new look, more features Big pickups and SUVs lead plunge in used-vehicle prices Ex-Reynolds CEO O'Neill joins J.D. Power Auto Hall of Fame will induct 8 Liberatore looks beyond Daimler Molina gets the top job at GMAC F&I pioneer Pat Ryan to retire from Aon Study: Hydrogen research worth the cost Gulf States trial halted As yuan rises, so do prices of Chinese parts Personnel exec Laymon: Ford still seeking outside talent GE gives supplier credit Dana CEO wants Asian growth Tesla launches production Todt steps down as Ferrari CEO Union pursues Toyota effort Chrysler offers spiffs for military Land Rover ads focus on heritage Mark Rechtin Fresh heir: To turn green, must BMW create brand? GM ponders mini-muscle Camaro New Ford ads coming in April With a spiffier image, Lincoln would rock abroad Rival says Nardelli's OK Ford hails its cab, but mpg is an issue

Automotive News - March 24, 2008

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