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Inside this issue
Opinion: Honda's Bundle of Cash Revives Tier 2 Ad Plans
Volvo Cars to Halt Production at Sweden Plant
Honda Won't Dial Back in China Despite Tensions, Ito Says
Jaguar Land Rover Wants More Dual-Brand Stores
Thinking Small
CAFE Guide: A Map Through the MPG Maze
F&I for Stars' Cars: All in a Day's Work for Hollywood Luxury Dealership
Click here for more auto industry news at NADAFrontPage.com. .
Top Stories
Opinion: Honda's Bundle of Cash Revives Tier 2 Ad Plans
By David Barkholz

A couple of years ago, auto executives wondered aloud whether dealer ad groups, or the Tier 2 advertising channel, were headed for irrelevance. Dealer groups in metro markets across the country, including those made up of Honda dealers, had either disappeared completely or spent their money on more general brand advertising for lack of local creative work. But a revival is afoot for Tier 2 advertising, in which dealers in a metropolitan area pool their resources for media buying. As Automotive News reported last week, Honda informed its 1,100 dealers recently that if they joined metropolitan buying groups, an estimated $250 million annually would be made available to them for local advertising. Nissan also has rejuvenated its dealer ad groups with a generous new program.
Source: Automotive News

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Volvo Cars to Halt Production at Sweden Plant

Volvo Car Corp. Monday said it would halt production for a week from Oct. 29 at its plant in Torslanda, Sweden, in the latest response to shrinking demand from an auto maker. "The recession in Europe is deepening and that impacts customers' willingness to buy new cars," said Volvo spokesman Per-Ake Froberg. "Therefore we have to continue to adjust production." The move is the latest sign of the impact of falling demand on the car industry.
Source: The Wall Street Journal

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Honda Won't Dial Back in China Despite Tensions, Ito Says

In U.S., VW viewed as Japanese automaker's most disruptive rival

Honda Motor Co. President Takanobu Ito said the company isn't changing any of its investment plans for China, where sales of Japanese auto brands tumbled 41 percent last month amid a territorial dispute over a group of islands. China may develop into the world's biggest market for hybrid vehicles and it's unlikely that the current political tension will last for longer than six months, Ito said in an interview this week.
Source: Bloomberg

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Jaguar Land Rover Wants More Dual-Brand Stores

New N.J. store shows consolidation standard

Jaguar Land Rover is pushing its single-point dealers to consolidate through buy/sells and create more stores that combine the two British luxury franchises. Only by offering passenger cars, SUVs and crossovers under one rooftop can the two brands compete effectively with their German rivals, said Andy Goss, CEO of Jaguar Land Rover North America. Within three years, about 70 percent of Jaguar and Land Rover franchises in the United States will be in combined Jaguar Land Rover stores, he said. Today, 92 stores have the two franchises under one rooftop, or just about 28 percent of the 166 Jaguar and 167 Land Rover dealerships in the country.
Source: Automotive News

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Thinking Small

Stage 2 in the online marketing battle is making sites look good on mobiles

Two years ago, Chapman's in-house Web site staff built mobile-friendly Web sites for each of Chapman's stores in the Phoenix, Tucson and Las Vegas markets. Mobile-friendly Web sites are important because Web sites that look good on the large screens of laptops and desktop computers often are hard to read on the tiny screen of a smartphone. Eight months ago, Chapman updated its mobile Web sites again to speed loading and improve site navigation and appearance on mobile devices, said McFall, Chapman's Internet development director. The effort is paying off, he said. Of 33,000 visitors to Chapman BMW on Camelback's Web site last month, for instance, 9,000, or 27 percent, used a smartphone or tablet to get there, McFall said.
Source: Automotive News

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CAFE Guide: A Map Through the MPG Maze

Quirky rules create mind-boggling math, high-stakes gamesmanship

In the 2017 through 2019 model years, regulators will count each EV produced as two when calculating whether automakers are meeting new fuel-economy standards for light vehicles. The standards, finalized in August after a year of discussion, have a simple-sounding goal: cut fuel consumption and emissions. But the rules ... are anything but straight- forward, filled with little-known peculiarities and fine print added to help get automakers on board. Each automaker's vehicle fleet ultimately will have to average at least 54.5 mpg -- unless gasoline prices drastically change, new technologies emerge, consumers behave differently or any other assumptions that the government made while drafting the rules turn out to be way off. There also is a lot of expense involved -- about $150 billion for the industry, according to the Obama administration. The National Automobile Dealers Association, which waged a last-ditch battle against the rules, argues that prices for new cars and light trucks will rise about $3,000, with automakers spending billions exploring new powertrains and other ways of saving fuel.
Source: Automotive News

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F&I for Stars' Cars: All in a Day's Work for Hollywood Luxury Dealership

Imagine your favorite Hollywood actor sitting across from you as you pitch an extended service contract. Or how about batting around the benefits of paint and fabric protection with the Prince of Darkness, Ozzy Osbourne? It's all in a day's work at one luxury-brand dealership near Los Angeles. Celebrity clients are so common that the F&I staff at this dealership is far from star-struck, says the finance manager, who didn't want to be identified and didn't want to name the dealership to protect the privacy of clients -- among them Nick Lachey and superstar teen heartthrob Justin Bieber.
Source: Automotive News

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Quotable
" ... around the world, I believe 2013, 2014, 2015 will be years of growth."

   
-- Takanobu Ito, Honda Motor Co. president, commenting on its sales predictions, Bloomberg, Oct. 13

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NADA Chairman Bill Underriner will discuss the state of the retail-auto industry at the Automotive Press Association luncheon in Detroit on Tuesday, Oct. 23. Underriner will discuss opposition to stair-step incentive programs and the latest developments concerning factory-mandated dealership upgrade programs. A recent NADA facilities study found no evidence that facility improvements result in any sales gains, either short term or long term. It's a point of contention between some dealers and some manufacturers.


 


 

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