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May 21, 2012 FacebookTwitterFlickrRSSSEND TO A FRIENDPRINT
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Inside this issue
Stair-Step Incentives Are Back
Chrysler Needs More Time to Fix Dealer Rewards Program
AutoFocus: NADA Chairman Bill Underriner Discusses New Alliance with J.D. Power That Focuses on Dealer Data Security
WardsAuto Forecast: May U.S. Light Vehicle Market Should Stay Course
Surviving the Service Trough
Suzuki Seen Better Fit for Fiat as Ties With Tata Founder
Automakers Plan Flood of New Models for 2013-16
Another Shot at GM as Hyundai Re-Ups for Super Bowl
In Four Years, Most Cars Will Work with Smart Phones
Click here for more auto industry news at NADAFrontPage.com. .
Top Stories
Stair-Step Incentives Are Back

Tough call: Sell at a loss to chase bonus?
Several automakers have rolled out incentive programs that pay dealers escalating bonuses as sales targets are hit in a bid to wrest back market share or boost key models. So-called stair-step programs are returning after being scaled way back over the past year, dealers say. Instead of dumping cash on the hood in the form of customer incentives, which are up just slightly from last year, automakers --- especially Honda and General Motors --- are dangling carrots in front of dealers in hopes of lifting sales by getting them to chase tiered sales targets. But many dealers say stair-step programs wreak havoc on local retail markets.
Source: Automotive News

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Chrysler Needs More Time to Fix Dealer Rewards Program

Chrysler Group's suspended Dealer Standards rewards program, which paid cash to dealers who met customer-satisfaction standards and other goals, will stay on hold until at least the third quarter, a Chrysler spokesman said. Chrysler suspended the rewards portion of the program Jan. 1. CEO Sergio Marchionne said the program had improved facilities, but customer-satisfaction scores had plateaued. David Kelleher, chairman of the Chrysler National Dealer Council and owner of David Dodge-Chrysler-Jeep-Ram in Glen Mills, Pa., said Chrysler and council members continue to work on the details of a successor program.
Source: Automotive News

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AutoFocus: NADA Chairman Bill Underriner Discusses New Alliance with J.D. Power That Focuses on Dealer Data Security

A new partnership between the National Automobile Dealers Association and J.D. Power and Associates will provide dealers with more accurate and timely data, said NADA Chairman Bill Underriner, in a recent interview on “AutoFocus with David Hyatt.” “The issue of dealer data security is a huge concern because we have different companies trying to help dealers with their data and ... we really don’t know what’s happening with that data or what they are doing with that data,” said Underriner, a new-car dealer from Billings, Mont. NADA is working with J.D. Power to increase dealer participation in the Power Information Network (PIN) initiative. “Dealers now have a way to benchmark their sales data and compare it with other dealers in real time to see where they are in the marketplace,” Underriner added. The partnership will also help the NADA Used Car Guide provide more accurate data on used car and truck values, he said.
Source: NADA Newsroom

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WardsAuto Forecast: May U.S. Light Vehicle Market Should Stay Course

U.S. auto makers will sell more cars and light trucks in May than in any month since August 2007, according to a new WardsAuto forecast. With daily sales projected to hit a 57-month high of 54,250 units over May’s 26 selling days, the report calls for the industry to deliver 1.41 million light vehicles during the month.
Source: WardsAuto

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Surviving the Service Trough

Fewer car sales during the slump mean less repair revenue now
The auto sales collapse that started in 2008 is hitting home in the service department in 2012. The number of vehicles in operation that are 5 years old and newer will dip to 63 million this year, forecast to be the low point of the industry's downturn and recovery, according to J.D. Power and Associates. In 2011, the service and parts business represented 13 percent of overall sales for the typical dealership but contributed 72 percent of dealership operating profits, according to the National Automobile Dealers Association. "It's a huge challenge to get your customer back into the service department," said Bill Underriner, a Montana dealer and NADA's 2012 chairman.
Source: Automotive News

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Suzuki Seen Better Fit for Fiat as Ties With Tata Founder

Fiat SpA and Tata Motors Ltd. may be headed for divorce. The pair this month ended a deal that had let the Italian company sell cars via Tata’s Indian dealerships for the past six years. The move could pave the way for Fiat to strengthen its ties to Japan’s Suzuki Motor Corp. in Asia’s third-largest auto market, analysts at IHS Automotive and Cyrrus AS said.
Source: Bloomberg

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Automakers Plan Flood of New Models for 2013-16

New models will come fast and furious in the 2013-16 model years, according to Bank of America/Merrill Lynch's annual product pipeline analysis, dubbed the "Car Wars" report. The above-average flood of new vehicle launches will peak with 105 all-new cars and trucks for 2014 and 2015 model years.
Source: USA Today

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Another Shot at GM as Hyundai Re-Ups for Super Bowl

As soon as General Motors said this week that it would quit paid ads on Facebook, Ford was on Twitter saying it has doubled-down on social and digital media -- and hinted in a tweet that GM just didn't know how to use new social media. Then, no sooner had GM said yesterday it would not buy ads in the next Super Bowl....
Source: USA Today

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In Four Years, Most Cars Will Work with Smart Phones

By 2016 most cars will have smart phone integration, according to a new report from Juniper Research, a wireless technology research firm based in Hampshire, U.K. Aftermarket systems offered by companies like OnStar will help grow the sector to $14.4 billion in four years and give 92 million vehicles Internet connectivity.
Source: Forbes

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More Articles

The NADA Story

The NADA story began in 1917 when 30 auto dealers traveled to the nation’s capital to convince Congress not to impose a luxury tax on the automobile. They successfully argued that the automobile is a necessity of American life, not a luxury. From that experience was born the National Automobile Dealers Association. Today, NADA represents nearly 16,000 new-car and -truck dealerships with 32,500 franchises, both domestic and international. For more information, visit www.nada.org.

 
Quotable
"It's just a cancer in the industry that isn't good for dealers or customers."

   
-- Earl Hesterberg, CEO of megadealer Group 1 Automotive Inc., referring to the automaker's stair-step incentive programs, Automotive News, May 21


 

NADA - National Automobile Dealers Association

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