Automotive News - April 29, 2013 - 28

20130429-NEWS--0028-NAT-CCI-AN_--

4/26/2013

4:56 PM

Page 1

28 • APRIL 29, 2013

Base ’14 Vette priced at $51,995
Mike Colias
mcolias@crain.com

DETROIT — General Motors has
set the base price of the 2014 Chevrolet Corvette Stingray coupe at
$51,995, including shipping, $1,400
more than the outgoing model.
The base convertible will be
$56,995 with shipping, $1,240 more
than its predecessor, GM said.
The pricing makes good on GM’s
promise to keep the sports car’s base
price attainable despite many improvements in the redesigned seventh-generation Corvette, which is
expected to go on sale in September.
Standard features will include a
seven-speed manual transmission;
dual, 8-inch infotainment screens
with Chevy MyLink infotainment
system and rearview camera; Bose

FRANCHISE
Connecticut dealers
keep pushing for bill
continued from Page 3

In 2011, Florida passed legislation
making clear that any update to
franchise law is applicable or
retroactive to existing contracts,
said Ted Smith, president of the
Florida Automobile Dealers Association.
North Carolina and South Dakota
in recent years also passed similar
legislation, according to the alliance. But the alliance’s Gage said
none of the previous legislation
went as far as the Colorado bill.
Other states pushing enforcementoriented bills this year include New
Hampshire, Connecticut and Massachusetts. They are among 28 states
this year with franchise law bills as
counted by the alliance.
“This goes on all over the country
where these big companies absolutely disrespect state law and
then they dare their dealers to bring
a lawsuit,” said Jim Fleming, president of the Connecticut Automotive Retailers Association.
But dealers typically are reluctant
to sue because of the costs associated with a legal battle and fear of retaliation by manufacturers.
The Connecticut association
backed legislation this year that
would have required manufacturers to declare compliance with state
law as a condition of license renewal, which is necessary every two
years, Fleming said. The bill also
would have required manufacturers to pay attorney fees and penalties if they were then found guilty of
violating the law.
The bill died after failing to be
scheduled for public hearing by a
deadline. But the dealer association
is still trying to pass the licensing
provision through an amendment
to an existing bill before the legislative session ends in June. It’s a long
shot, Fleming said. If it fails, the association intends to push for a new
bill covering licensing, penalties
and other issues in 2014.

Taking advantage?
Dealers cite examples of manufacturers interpreting laws to their
advantage.
Ⅲ In 2011, Chrysler reached a nearly
$1 million settlement with the California Department of Motor Vehicles for operating a factory-owned

nine-speaker sound system with
Bluetooth connection; and a carbon
fiber hood and removable roof panel.
All models will get GM’s new 6.2liter V-8 engine with cylinder deactivation, which shuts off four of the
eight cylinders at cruising speeds to
save fuel. GM has said the new
Stingray will get around 30 mpg on
the highway, vs. 26 mpg for the current Corvette.
GM set the price with the goal of
delivering “more than expected for
our customers,” said Chris Perry,
vice president of Chevy marketing.
The sticker price for the midlevel
trim, the 2LT, is $56,205. The top
trim, the 3LT, is priced at $60,000 and
includes a color head-up display,
navigation, heated and ventilated
seats, premium leather seats and a

leather-wrapped instrument panel.
Options include competition
sports seats ($2,495); exposed carbon fiber ($1,995); magnetic-based
damping system ($1,795) and a
dual-mode exhaust system ($1,195)
GM said the model shown for the
car’s unveiling at the Detroit auto
show in January — a 3LT with the
Z51 performance package and other options — would be priced at
$73,360. The Z51 package includes
19-inch front and 20-inch rear tires;
a transmission-cooling system and
magnetic damping.
Last year, GM sold 14,132
Corvettes, up 7 percent from a year
earlier. That volume is less than half
of the 28,000-36,000 range that
Chevy hit during most of the past 15
years. c

Battleground states

often cost dealers extra, he said, citing instances in which manufacturers ship ordinary tools, such as custom-colored toolboxes, to stores at
dealership cost and without their
consent.
Warranty practices are also an issue in Colorado. In one recent case,
a manufacturer sought a warranty
audit going back 24 months when
the law only allows nine months,
Jackson said. When challenged by
the dealer, that manufacturer said
the nine months didn’t apply because that provision took effect after the dealership’s franchise agreement was signed.
Jackson also said the association
became concerned about the issue
after a Kia dealership in Michigan,
Glassman Kia in Southfield, lost its
challenge in 2012 to a new point
seven miles away. Even though
Michigan franchise law had been
changed to allow challenges to
stores within a nine-mile market
area, a federal judge dismissed the
case, saying the revised law didn’t
apply to the Glassman store because its sales and service agreement predated the new law.
Automakers and their reps dismiss dealers’ complaints.
“Our members work to comply
with every law that affects franchise
agreements,” the alliance’s Gage
said. “There are always different
ways to interpret laws.”
The alliance sent letters in October to every state dealer association
executive in the country, Gage said,
seeking good-faith discussions on
concerns that could become legislation.

Franchise legislation has been
introduced in 28 states this
year. In at least 4, dealers and
manufacturers are fighting about
enforcement of current laws.
Ⅲ Colorado
Ⅲ Connecticut
Ⅲ Massachusetts
Ⅲ New Hampshire
Source: Alliance of Automobile
Manufacturers, state dealer associations

dealership in downtown Los Angeles. The department concluded that
Chrysler was unfairly operating
Motor Village LA within 10 miles of
several other Chrysler dealerships.
The California New Car Dealers
Association is working on franchise
legislation this year that seeks to
clear up ambiguities — for example, in provisions related to warranty audits and chargebacks.
“This is the third franchise bill
we’ve done in the last five years,”
said Brian Maas, California association president. “That’s how we’re
choosing to deal with it in California. We’re modifying our rules to
make it clear what the manufacturers can and can’t do.”
Ⅲ In Florida, billionaire megadealer
Norman Braman is suing General
Motors over its Essential Brand Elements program. Braman claims in
part that GM is violating a Florida
law requiring manufacturers to pay
a reasonable — presumed to be 80
percent or more — portion of an incentive to dealerships that don’t
comply with a program’s facility requirements if they satisfy other program elements.
GM halted incentive payments to
Braman’s Miami Cadillac dealership in 2011, the suit claims. Braman sued GM in January 2012. The
case is set to go to trial in federal
court in February 2014.
When asked about the Florida requirement in late 2011, GM North
America President Mark Reuss told
Automotive News, “It’s not what
we’re going to do.” The company
says the Florida law improperly favors dealers and discriminates
against manufacturers.
Ⅲ Warranty disputes are widespread, association leaders say.
New Hampshire’s legislation in
part would require manufacturers
to follow warranty law already in
place, said Pete McNamara, president of that state’s dealers association. Some manufacturers’ actions

Old tricks?
For some dealers and association
leaders, the issue is especially raw
given the hopefulness they had
coming out of the recession. Connecticut’s Fleming testified in Congress in December 2008 on the importance of bailout funds to keep
domestic automakers operating.
Back then, Fleming recalls, manufacturers said the collaboration
marked a new era and they would
not fight franchise laws. But a few
years later, automakers were back
to “their old tricks,” he laments.
“So the only way to address these
types of issues is to have some kind
of penalty provision in these state
laws,” Fleming said, “so that if a
dealer is brave enough, like in Florida, to bring a suit, at the end of the
day, the manufacturer is going to
pay a heavy price.” c

Customer Incentives
Incentives in this table are a summary of retail programs offered. Programs may vary
by region and model.
Cash
rebate

Cash
rebate

Finance
rate

BMW GROUP
Expires April 30.

Finance
rate

MAZDA
Expires April 30.

2013 models
BMW 1 series, 3 series,
5 series, 5 series Gran Turismo,
6 series, 7 series, M3, M5,
M6, X1, X3, X5, X5 M,
X6, Z4
Mini Cooper*

2014 models
Mazda6

1.9-3.1%
0.9-1.9%

CHRYSLER GROUP

0%
0.9-1.9%

MERCEDES-BENZ
Expires April 30.

Expires April 30. In lieu of rebates, cut-rate financing
is available.
2014 models
Jeep Compass, Patriot
$750 1.9-5.9%
2013 models
Chrysler 200, 300
$1,000-$2,500 0-3.9%
Town & Country
$2,000 0-1.9%
Dodge Avenger
$3,250-$3,500
0%
Charger, Durango
$2,500 0-4.9%
Challenger
$2,000 0-4.9%
Grand Caravan
$1,000-$2,000 0-4.9%
Dart, Journey
$500-$1,000 0-6.9%
Jeep Compass
$2,500 0-3.9%
Patriot
$2,000 0-3.9%
Grand Cherokee
$500 1.9-5.9%
Ram 1500, 2500, 3500
$500 1.9-5.9%
Cargo van
$500

FORD MOTOR CO.
Expires June 3. In lieu of rebates, cut-rate financing
is available.
2014 models
Ford Mustang
$1,500 0-3.9%
2013 models
Ford Expedition, Taurus
$2,500 0-1.9%
Explorer, Flex
$2,000 0-1.9%
F-150
$2,000 0-4.9%
Super Duty F-250,
Super Duty F-350,
Super Duty F-450
$2,000 0.9-4.9%
Focus
$1,500-$1,750 0-5.9%
Edge, Escape
$1,500 0-1.9%
Fusion*
$1,500 0-2.9%
Econoline (incl. cargo) $1,000-$1,500 1.9-5.9%
Mustang
$1,000 0-1.9%
Transit Connect*
$1,000 1.9-5.9%
Fiesta, C-Max*
$750 0-5.9%
Focus Electric
0-1.9%
Lincoln MKS, MKT, MKX,
Navigator
0-4.9%

GENERAL MOTORS
Expires April 30. In lieu of rebates, cut-rate financing
is available.
2013 models
Buick LaCrosse
$1,500 0.9-2.9%
Enclave, Regal
$1,000 1.9-3.9%
Encore, Verano
$0-$500 1.9-5.9%
Cadillac CTS*, Escalade
(incl. Hybrid), Escalade ESV,
Escalade EXT, SRX, XTS
0%
Chevrolet Impala
$4,000
0%
Silverado 1500 (incl. Hybrid),
Silverado 2500HD,
Silverado 3500HD
$2,500-$3,000 0-1.9%
Avalanche, Corvette
$2,000 1.9-5.9%
Suburban, Tahoe
$1,500 1.9-3.9%
Express (incl. cargo)
$1,000 0-4.9%
Camaro, Traverse
$1,000 0-5.9%
Cruze, Malibu
$500-$1,000 1.9-4.9%
Equinox, Sonic
0-5.9%
GMC Sierra 1500 (incl. Hybrid),
Sierra 2500HD,
Sierra 3500HD
$2,500-$3,000 0-1.9%
Yukon (incl. Hybrid),
Yukon XL
$1,000-$2,000 1.9-3.9%
Savana (incl. cargo)
$1,000 0-4.9%
Acadia, Terrain
$0-$1,000 0-3.9%

AMERICAN HONDA MOTOR CO.
Expires April 30.
2013 models
Acura ILX, TL
Honda Accord*, Civic*, CR-V,
Crosstour, Fit, Odyssey, Pilot,
Ridgeline

0.9%

2013 models
CX-9, Mazda2, Mazda3,
Mazda5
CX-5, MX-5 Miata

0.9%

0.9-1.9%

HYUNDAI-KIA AUTOMOTIVE
Expires April 30. In lieu of rebates, cut-rate financing
is available.
2013 models
Hyundai Sonata (excl. Hybrid)
0.9-3.9%
Genesis, Accent, Elantra*,
Equus, Sonata Hybrid, Tucson
2.9-3.9%
Azera
3.9-4.9%
Kia Sorento
$1,500 0-1.9%
Forte*
$1,000 1.9-3.9%
Rio, Soul, Sportage
0.9-2.9%
Optima
0-1.9%

2013 models
Smart ForTwo

MITSUBISHI
Expires April 30. In lieu of rebates, cut-rate financing
is available.
2013 models
Outlander Sport
$1,000
0%
Lancer, Lancer Sportback,
Outlander
$500
0%
Lancer Evolution
0%
2012 models
Galant
$3,500
0%
Outlander
$3,000
0%
Lancer
$2,500
0%
Lancer Evolution
$1,500
0%
I-MiEV
0%

NISSAN NORTH AMERICA
Expires April 30. In lieu of rebates, cut-rate financing
is available.
2013 models
Nissan Maxima
$3,500 0-2.9%
Armada
$3,000 0-1.9%
Titan
$2,000-$3,000 0-1.9%
Murano
$2,000 0.9-2.9%
Altima, Rogue
$0-$1,500 0-1.9%
Quest
$500-$1,500 0-2.9%
Versa, Juke
$750 0-2.9%
Pathfinder
$500 0-1.9%
Leaf
0-1.9%
370Z, Sentra
0-2.9%
2012 models
Nissan Armada
$5,000
0%
Murano CrossCabriolet
$5,000 0-2.9%
Titan
$3,000-$5,000 0-1.9%
Maxima
$4,000 0-1.9%
Pathfinder
$3,500 0-1.9%
Murano
$3,000
0%
Quest
$1,500-$3,000 0-1.9%
Rogue, Xterra
$2,000 0-1.9%
Frontier
$1,500-$2,000 0-1.9%
Altima
$1,500 0-1.9%
Juke
$1,250 0-1.9%
Versa
$500 0-2.9%
Cube
$500

SUBARU
Expires April 30.
2014 models
Forester
2013 models
Forester, Legacy, Tribeca
Outback
Impreza sedan, Impreza wagon
BRZ, Impreza sedan WRX,
Impreza wagon WRX

1.9%
0%
0.9%
1.9%
2.9%

TOYOTA MOTOR SALES
Expires April 30. In lieu of rebates, cut-rate financing
is available.
2013 models
Toyota Tundra*
$2,500-$2,750
0%
Sienna
$750 0-0.9%
Corolla, Highlander
$500 0-0.9%
Venza
0%
Camry, Prius*
0-0.9%

VW GROUP OF AMERICA
Volkswagen expires April 30; Audi expires July 8.
2014 models
Audi A8 L
1.9-2.4%
2013 models
Audi A6
1.9%
A3, A4, A5, A7, A8, A8 L,
allroad, Q7, S4, S5, TT, TTS
1.9-2.4%
Q5
1.4-2.9%
S6, S7, S8
2.9-3.4%
Volkswagen CC, Passat,
Touareg
0%
Eos,Tiguan
0.9%
Beetle coupe, GLI, Jetta sedan
Jetta SportWagen
0-1.9%
Beetle convertible
1.9%
Golf, GTI
2.9%

VOLVO
Expires April 30.
2013 models
C30, C70, S60, S80,
XC60, XC70, XC90

JAGUAR LAND ROVER
Jaguar expires April 30; Land Rover expires July 1.
2013 models
Jaguar XF, XJ, XK
0.9%
Land Rover LR2, LR4,
Range Rover Evoque
0.9% *Applies to select models only
Range Rover Sport
0.9-1.9%
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Automotive News - April 29, 2013

Table of Contents for the Digital Edition of Automotive News - April 29, 2013