January 28, 2010

Russ off the Cuff: Be Part of the Recovery - Join AIADA for its 40th Annual Meeting in Orlando
Forty years ago, the international auto industry was the equivalent of the new kid on the block in the American economy. Since then, writes AIADA Chairman Russ Darrow, times have changed. In 2009, international brands led domestic brands in U.S. market share by an average of 11.2 percent each month, finishing the year with 55.8 percent of the total vehicles sold. Today, America's international auto industry is stronger than it has ever been. But tomorrow could be another story. For 40 years, AIADA has been a steady force in Washington, staving off damaging legislation and always advocating for you, the dealer. And we plan to be here in the coming years, making sure international dealers continue to provide jobs for more than 500,000 Americans and invest millions in their local communities. Join AIADA in Orlando on February 15 as we celebrate this landmark year and look to the challenges of tomorrow at AIADA's 40th Annual Meeting and Luncheon. By attending, you will be on the ground floor as we work with manufacturers and industry leaders to rebuild our industry. Registration for this 'can't miss' event won't be available much longer. Don't wait. Register today by clicking here or by calling 1-800-GO-AIADA. Click here for Darrow's entire letter to members on the importance of attending AIADA's 40th Annual Meeting and Luncheon on February 15.

Toyota Expands Recall in U.S., China, Europe
Toyota Motor Corp. said Thursday that it will recall an additional 1.09 million vehicles in the United States, and extended its recall to Europe and China. The announcements come after the company said earlier this week that it was suspending U.S. sales of eight models to fix faulty gas pedals that could stick and cause acceleration without warning. According to MSNBC, the new U.S. recall would affect five models - 2008-2010 Highlander, 2009-2010 Corolla, 2009-2010 Venza, 2009-2010 Matrix and 2009-2010 Pontiac Vibe. Toyota has already recalled 4.26 million vehicles in the U.S. over floor mat problems. "AIADA fully supports Toyota's decision to prioritize the safety of its customers, and other drivers on the road, ahead of all other considerations. Throughout this process, Toyota has remained committed to consumer safety and product quality - the foundation of its business," said AIADA Chairman Russ Darrow in a statement on Wednesday. "Toyota's dealers are prepared to weather this short-term challenge in order to preserve their customer's safety and trust. Toyota is communicating openly and honestly with its dealers and we are confident that, in the long run, this decision will only increase the loyalty of its customers." AIADA board member Jack Fitzgerald echoed Darrow's thoughts when he told the Washington Post on Wednesday that, "By being conscientious and responsible, they will make more sales than they'll lose." Click here for the latest on Toyota's recall efforts.

Obama: 30 Billion Dollar Fund for Small Businesses
In his State of the Union address on Wednesday evening, President Barack Obama said that 30 billion dollars from a Wall Street bailout fund would be used to help small businesses still reeling from financial crisis. "I'm proposing that we take 30 billion dollars of the money Wall Street banks have repaid and use it to help community banks give small businesses the credit they need to stay afloat," Obama said in his first State of the Union address. According to AFP, many of the biggest U.S. banks have repaid billions of dollars they borrowed from the state-run Troubled Asset Relief Program (TARP) established to bail out the financial industry on the verge of collapse from the financial crisis. Obama went on to propose a new small-business tax credit. "While we're at it, let's also eliminate all capital gains taxes on small business investment, and provide a tax incentive for all businesses, large and small, to invest in new plants and equipment," he said. The financial crisis has made credit hard to attain for many small businesses, including auto dealers. In October, AIADA joined a coalition urging Congress to increase access by small businesses to the Small Business Administration (SBA) loan guaranty program. Click here to see the letter AIADA sent to Congress. For full coverage of President Obama's State of the Union address and what it could mean for international auto dealers, click here.

Hyundai Sets Higher Sales Goal After Profit Rise
Hyundai Motor Co. set its sights on increasing its share of the global automobile market to 5.4 percent this year, after its fourth-quarter net profit more than quadrupled in the fourth quarter on strong demand for new models and tax incentives for new car purchases. According to the Wall Street Journal, analysts said a competitive product lineup, reasonable prices, expanded capacity, and improved quality helped the South Korean auto maker. Hyundai Motor sold a total of 3.1 million vehicles, up 12 percent from 2.78 million in 2008, to grab 5.2 percent of the global automobile market. In the U.S., where its market share rose to 4.2 percent last year from the previous year's 3 percent, Hyundai expects this year's market share to reach 4.6 percent helped by its two new models-the YF Sonata sedan and the Tucson compact sport utility vehicle. In keeping with its goals in the U.S. auto market, Hyundai has also purchased $160 million in advertising time to market its Sonata sedan. Two advertising spots will be featured during the upcoming Super Bowl on Feb. 7. Click here to see what Hyundai's vice president of marketing, Joel Ewanick, told Forbes Magazine about Hyundai's advertising strategy during the Super Bowl. For complete coverage of Hyundai's sales goals, click here.

Best Automotive Second Acts
On Jan. 20, MINI announced the newest member of its diminutive fleet: the MINI Countryman. The five-door crossover-a first for the British automaker-will offer fans a choice of diesel or gas engines, four-wheel drive, and optional rear bench seat. The real question is whether MINI can and should widen its fleet as it drifts farther away from the icon that started it all, the 1960s-era Mini Cooper. According to Forbes, however, history suggests it'd be wise not to stray too far. Click here to view Forbes' list of the best automotive second acts. To determine its list, Forbes consulted several experts. The publication asked each to nominate any vehicles they thought held true to their heritage while maintaining success in today's market. The common denominator for each long-lasting vehicle, even those that didn't make the list? Design often trumps performance-and that's where badly done remakes meet their demise. On many throwbacks, an overabundance of metal, extraneous design flourishes and awkward interior spaces don't exactly make for modern ease of access, efficiency, or drivability. The list proves that change can be a good thing. Apparently there is such a thing as second acts in American drives. Click here for Forbes' complete coverage of the best automotive second acts.

How Can You Enhance Customer Satisfaction while Reducing Costs?
Providing rental cars as service loaners can help increase customer satisfaction, but it also can present administrative challenges for your dealership. By streamlining the rental process, dealers not only reduce costs by an average of 13 percent, but also enhance customer service. AIADA's Affinity Partner Enterprise Rent-A-Car has been saving dealerships time and money through their Automated Rental Management System (ARMS®) application - available free to dealerships. The ARMS application produces a single invoice and analysis to save you time and allow you to focus on revenue-producing activities, rather than cumbersome statements. The ARMS application allows service advisors to create an electronic purchase order for a rental car at the same time they are initiating a repair order for service, so the rental car is ready when the customer arrives for the appointment. No matter what management systems your dealership uses, it can easily be enhanced by the ARMS application. To learn more about the ARMS application, click here to listen to our recorded webinar/product demonstration. Want to get started? Contact Jeff Morrell, VP of Business Development, at 314-512-3902 or email dealercontact@enterprise.com. Click here if you'd prefer to be contacted by Enterprise.