Automotive News - May 12, 2008 - (Page 18)

18 • MAY 12, 2008 service & parts VW uses free service to improve sales, image Maintenance plan will start with 2009 models Diana T. Kurylko dkurylko@crain.com Volkswagen Group of America’s offer of free new-vehicle maintenance starting in the 2009 model year is an effort to boost sales and shed the brand’s reputation for costly repairs. VW calls its plan the “Carefree Maintenance Program.” It will give owners of new VW cars and trucks free scheduled maintenance for three years or 36,000 miles. The plan also includes a checkup after 90 days or 6,000 miles. Mark Barnes, COO of Volkswagen Group of America Inc., says the program will make VW “the only automaker among our key competitors to offer a no-charge maintenance program.” The company declined to estimate the cost of the program. In the late 1990s, BMW of North America LLC used a similar strategy to combat a perception that its vehicles were too expensive to maintain. BMW launched a free-maintenance plan in 1996 that it continues to tout heavily. Volkswagen Group of America’s Audi luxury brand stopped offering free maintenance in the United States in the 2007 model year. Audi dropped the plan so it could boost profits and cut costs, moves that helped pay for a new dealer-margin program that took effect last year. Jim Hall, owner of the automotive consulting firm 2953 Analytics in suburban Detroit, called VW’s offer a good move. Free maintenance, he said, “takes one variable completely out of the picture.” “It has helped BMW tremendously — ‘Break My Wallet’ was their nickname,” Hall told Automotive News. “That was their image in the late 1990s. It was VW’s image as of late.” VW has struggled to improve its ve- hicle quality. For example, its Touareg SUV was riddled with quality problems when VW introduced it four years ago. But the brand has made major improvements in new products. Last week Consumer Reports magazine designated the VW Rabbit the highestquality “affordable hatchback,” replacing the Mazda3. Of six hatchbacks the magazine tested for its June issue, only the Rabbit earned an excellent rating. c Aftermarket center opens at Mich. college MIDLAND, Mich. — A new education center on Northwood University’s Michigan campus focuses on aftermarket management. The Sloan Family Building for Aftermarket Studies honors O. Temple Sloan Jr., who founded General Parts International Inc. and Carquest; and his brother, C. Hamilton Sloan, an early General Parts partner. The Sloan family and employees of the two companies contributed more than half of the new center’s $6 million construction cost. The 25,500square-foot center has interactive classrooms that link Northwood campuses in Florida and Texas. Northwood’s aftermarket program enables students to take courses in aftermarket manufacturing, marketing and retail/wholesale management. Northwood is the only university that offers an undergraduate degree in aftermarket management. Report cites trends in repair costs SAN DIEGO — A shift to lightweight materials, advances in vehicle safety equipment and a transition to waterborne paints are key trends that are changing the collision industry, a new study says. The report, by Mitchell International, concludes that the industry “is undergoing some of the most significant changes since the introduction of unibody vehicle production.” The factors identified in the report are affecting the cost to repair shops of tools and training, says Greg Horn, Mitchell’s vice president of industry relations. Mitchell International, of San Diego, provides information, work flow and performance management services to the collision industry. survey that says consumers are more satisfied with independent repair shops than service departments at new-vehicle dealerships. A survey in the May issue of Consumer Reports, cited by the Automotive Aftermarket Industry Association, says 71 percent of consumers who were polled said they were “very satisfied” with the service at independent shops. The comparable figure for franchised dealerships was 53 percent. Proposed right-to-repair legislation would require automakers to give independent shops the same access to service information and safety alerts that franchised dealerships get. The bill is before the U.S. House, where it has 45 sponsors. Spence Levy, vice president of Air Aroma America, displays scents that dealerships can release in their service areas. Shops cited for labor violations SAN DIEGO — State regulators have fined 28 auto body businesses here more than $226,000 for a variety of labor violations. Among the infractions: Employing a minor without proper permits at one shop. Failing to pay overtime at four shops. Failing to pay minimum wage at two shops. Failing to carry workers’ compensation insurance at 18 shops. Failure to keep required records and post labor notices at 16 shops. A statement by the California Labor and Workforce Development Agency did not identify the cited businesses. Dealers aim to turn scents into dollars Bernadine Williams bwilliams@crain.com Need Salespeople, Tech’s, Managers & Other Employees? The Auto Industry’s #1 Recruiting, Training & Marketing Company Salespeople~BDC~Detailer~Porter~Technician Body Tech~Service Advisor~Service Manager Parts Counter~Parts Manager~Sales Manager Finance Manager~Office Staff~GSM~GM Dealerships install the Aroscent misting devices in service bays to mask less-pleasant odors and help stressed-out customers relax. sell them vehicles down the road.” Levy says his company worked with GM to identify scents that would especially appeal to the Goodwrench target demographic: middle-aged men. The Goodwrench scent is a customized blend of citrus and leather, he says. Last month, Al Serra Chevrolet, near Flint, Mich., installed Aroscent in its service area and customer lounge. Jason Freeman, the dealership’s service manager, said employees and customers have given the Goodwrench scent rave reviews. The dealership also plans to include the scent in mailings to service customers. Air Aroma turns the oils in the scenting devices into an inklike substance that can be applied to mailings. “The concept is to create a sense of awareness for customers so they feel comfortable when they make their purchases,” Freeman told Automotive News. It’s too early to tell whether the aroma system is boosting service department revenues, Freeman said. But he added: “We are excited for the coming months.”c Survey: Consumers like indie shops BETHESDA, Md. — Advocates of federal “right to repair” legislation seek to bolster their case with a new 800-421-4550 www.clickhereforadvice.com Brian C. Hall, President & CEO Does that new-car dealership smell attract service customers? Air Aroma America Inc. and its dealer customers are betting it can. Air Aroma, of Miami, markets Aroscent, a portable diffuser the size of a briefcase that dispenses scents such as orange, pine, peppermint and leather. Dealerships install the misting devices in service bays to mask less-pleasant odors and, company executives say, to help stressed-out customers relax. “We enhance the whole environment and try to create a sensory effect,” says Spence Levy, Air Aroma America vice president. Dealerships also use the device in showrooms. Levy says company data suggest that customers stay longer on sales floors that smell better. Air Aroma says about 20 dealerships in the United States use its products. The company charges dealers $185 a month, on average, for the Aroscent system. The service has the endorsement of General Motors’ Service and Parts Operation, which recommends Aroscent to GM dealerships as part of its Goodwrench marketing initiative. The contract with Air Aroma allows GM dealers to rent the system for $130 a month. “Some of our older dealerships may have oil, grease and things in the service lane,” says Gordon Barnes, Goodwrench brand manager. “We want people to come back to our service lanes. By retaining those additional customers, it is likely we will be able to http://www.clickhereforadvice.com http://www.jcowansprotalk.com http://www.jcowansprotalk.com

Table of Contents Feed for the Digital Edition of Automotive News - May 12, 2008

Automotive News - May 12, 2008 Factories Punish Rogue Exporters U.S. Firms Sink on Supplier List Clarke: Buyers Don't Know Saturn Brand Greer Takes Top Sales Post At Automotive News Sonic Sues Mercedes-Benz Fiat Ponders Mexico Plant Ford: Wait on Kerkorian Going Green: It's No Longer An Option LaSorda Reaffirms Axle Plant Plan Chrysler: Jeep Seats From India Make Sense Toyota Exec: Maybe It's Time to Raise a Prius Hybrid Gamily Chevy Traverse, Ford Flex Face Off This Year As U.S. Waits, Chrysler Sends Cars Made in China to Mexico Nissan Plans Wide Range of Electric Vehicles Honda: Sales are Flat, But Market Share Soars Kia to Bring Small Car to U.S. Changing Models Yearly Created Object of Desire Fla. Law: Automakers Can't Force Dealer Upgrades Partnership Seeks "Premier" Stores GM Payback for Axle Bailout: Lower Prices, Innovation UAW Vote May Be Nearing a Honda's Alabama Plant Suddenly, Small Was Big in April GM's Big Problem: Too Many Brands Irvin Was Smart, Friendly, Helpful Dealers Are Tuned in to Absorption Figures Dealers Should Sell Alternative Fuels Museum Funding is Bold Watch Your Car-Truck Inventory In Tough Times Dealers Must Coddle Customers Ford's Challenge: Long-term Reliability Nissan N.A. Unit Gets New Head of Communications Maserati North America Taps Luxury-Segment Veteran Eulberg as CEO Former GM PR Chief Joins BMW Nissan: N.A. Off the Hot Seat VW Uses Free Service to Improve Sales, Image Shops Cited For Labor Violations Survey: Consumers Like Indie Shops Report Cites Trends in Repair Costs Aftermarket Center Opens at Mich. College Dealers Mich. Stores Merge Under Project Genesis VW is Europe's Top Seller Honda Exec Red-Flags Detroit 3 Aid Court: Auction Not Liable for Truck Defect Retail Personnel Canada Sales Post 3.8 Percent Gain in April Chrysler Asks Dealers to Donate to Museum Obituaries Complaint Will Delay UAW Revote at JCI Plant Supplier Deals are Smaller, Fewer GM's Truck Inventories Up Despite Strike Profits Up at Superior Industries Autobytel Post $2 MIllion Loss eBay Motors Courts Automakers Ford Touts 6-Speed Transmissions Toyota Raises Some Prices No Pickup for Hyundai, Kia April Output Drops 7.8 Percent Trustee Must Untangle the Chamco Debacle Scientists Say Chysler's Gas Plan is Just a Dodge From Cookie Sales to Auto Dough? In Europe, Small SUVs Soar; GM's Snore Daimler Seems to Be Betting On Peace in Iraq When Soccer Booms, VW Will Be Ready Molder AMP is a Case Study in Auto-Suppliers' Travail Spinoff Dismatles ArvinMeritor Ambitions GKN Driveline to Grow in China Kia Supplier Builds Ga. Plant BorgWarner Adds Turbo Capacity Supplier Personnel Supplier IAC Consolidates Operations and Know-How Mann + Hummel Sees Growth

Automotive News - May 12, 2008

For optimal viewing of this digital publication, please enable JavaScript and then refresh the page. If you would like to try to load the digital publication without using Flash Player detection, please click here.