January 21, 2010

International Auto Makers Suit Up for Super Bowl
International car makers are marketing their vehicles more aggressively in the U.S., and are making the Super Bowl a high-profile part of their strategy. According to the Wall Street Journal, on Feb. 7, tens of millions of football fans will see about a half-dozen auto commercials from at least four overseas manufacturers flicker across their TV screens during the big game. Last year, three auto makers, advertised on the Super Bowl broadcast. Click here for a chart demonstrating the auto industry's share of Super Bowl ad spending. Kia Motors America, the U.S. unit of South Korea's Kia Motors Corp., will be a first-time Super Bowl advertiser. Last year, Hyundai took advantage of cash-strapped General Motors' sudden exit from the big game and bought two Super Bowl ads. That helped the South Korean auto maker launch its "Assurance Program." Hyundai will run two ads during the big game again this year. The Volkswagen brand is returning to the Super Bowl after a nine-year hiatus. VW's ad, which is being created by Interpublic Group's Deutsch LA, will feature 13 of its vehicles. Click here for more on international auto makers' role in this year's Super Bowl advertising.

Mazda's New Minivan Goes with the Flow
Mazda Motor Corp. unveiled an all-new version of its Mazda5 minivan Wednesday. According to The Detroit News, it's the first production vehicle to embody the company's new "Nagare" design. Nagare, which means "flow" in Japanese, takes its inspiration from flowing forms found in nature. Click here for a photo of the new Mazda5. The design has been showcased in concept cars that have drawn big crowds at auto shows from Detroit to Tokyo, and elements have been incorporated into recent vehicles, such as the 2010 Mazda3. But the new Mazda5 is the first full vehicle based on that design. Mazda says it provides superior drag coefficient and lift balance, making for improved aerodynamics and better fuel efficiency. Like the current model, the new Mazda5 features dual sliding side doors and multiple seating configurations. Mazda sold 18,488 of the minivans in 2009, compared to 22,021 the year before, but dealers also had a hard time getting enough to keep up with demand. The sporty new Mazda5 will be featured at the Geneva Motor Show in March and is scheduled to go on sale in Europe this fall. It's slated to arrive in American showrooms later this year. Click here for more on the new and improved Mazda5.

5 Trends for Car Makers and Buyers in 2010
Not in recent memory have so many been glad one year is over and another has begun. So what's ahead for the auto industry and the car-buying consumer in 2010? The Detroit Free Press today reports on five major trends forecast by Edmunds.com for 2010 auto sales. One of them: more consumers will buy cars. Edmunds.com's 2010 forecast for U.S. light-vehicle sales stands at about 11.5 million at the start of the year. The year 2010 will see the introduction of a host of new small cars. As the economy recovers, gas prices likely will rise and cautious consumers will be careful to keep household budgets in check. The year 2010 also will be the year of more green cars. Nissan introduces the all-electric Leaf. General Motors finally goes to market with its much-hyped Chevrolet Volt, and the Fisker Karma hits showrooms as well. Edmunds also expects car prices to climb. Manufacturers have rid themselves of a big chunk of factory capacity. Most have done a good job of keeping the supply of vehicles better in line with the number of vehicles they produce. That means they have to spend less on incentives to move the metal. In addition, virtually every major automaker lost money in 2009. Finally, used car prices climbed in 2009 and will continue to edge higher in 2010. Click here for more on Edmunds.com's projections for 2010.

With Deadline Near, 168 GM Dealerships File for Arbitration
As of last Friday, 168 of the 2,000 rejected General Motors dealerships had given notice of their intent to seek reinstatement through arbitration. According to Automotive News, the showrooms have until Monday to declare their intent to pursue neutral arbitration under a new law signed by President Barack Obama last month. GM sent letters to 1,300 so-called complete wind-down dealerships notifying them of the criteria used to target elimination of all their GM franchises by October. The company also sent another 700 letters to partially wind-down stores marked to lose one or more GM franchises while allowed to keep at least one. The GM letters were received by rejected dealerships by Jan. 15, as required by the new law. The 168 dealer arbitration filings cited by Carney were for the close of business on the same day. GM's letters, unlike Chrysler's, offered brief explanations of the specific reasons why dealerships were targeted for elimination. Chrysler's mailings included a form letter with all the criteria used to consider a dealership's performance, as well as an individual scorecard of factors with a percentage figure. Chrysler, like GM, has said that its mailing complied with the new law. For more on attempts by shuttered dealerships to regain their businesses under recent arbitration legislation, click here.

Most Dangerous Vehicles Of 2010
According to Forbes, the way a car handles itself during a crash determines much about the severity of the occupants' injuries. Some cars hold up better than others: Tiny cars and low-level sedans are especially at risk, according to crash tests conducted by the Insurance Institute for Highway Safety (IIHS). Forbes' list of the most dangerous cars was compiled using IIHS crash-test results on 2010 model-year vehicles. After each crash, test dummies were checked for trauma in 28 body regions for front crashes and 37 regions for side crashes, with each region earning a rating based on specific parameters for trauma. A "poor" rating means severe and possibly fatal trauma happened to drivers and/or passengers during the crash, while a "good" rating means little to no trauma occurred. Click here for the automakers' reactions to this story. Forbes awarded values for each overall front, side and rear ratings, with more points awarded for better results. The cars on Forbes' list scored the lowest number of total points in their segment. Click here to view the list. It's crucial to note that all of the cars on the list more than meet federal safety standards, and they're all much safer than anything on the road even 15 years ago. Click here for full coverage of the most dangerous vehicles of 2010.

Does Your Dealership Impress Potential Customers?
Before prospective customers drive on the lot or enter your door, your dealership serves as a symbol of your product and the pride you take in your facility. It's important to catch their eye, but essential to make a great impression. Join AIADA and our Affinity Partner, Venture Lighting on Tuesday, February 2 at 11 a.m. EST for a free webinar to learn how creative, effective lighting design can make your store stand out from the competition. Host Rick Quinlan, general manager at EPIC Design Group offers 32 years of experience in electrical engineering and commercial lighting design, in which he's created interior and exterior lighting designs for more than 50 dealerships. Joining him will be Lighting Certified Professional and automotive market manager at Venture Lighting, Jennifer Link. Don't miss this opportunity to see how you can create a new image for your dealership and the brand you represent - and ultimately save money on energy costs. Sign up today!