October 24, 2011

Mazda to Give Dealers Less-Costly Options for Store Improvements
Mazda is making it easier for dealers to get the colorful, urban-chic look of its "Retail Revolution" flagship stores, reports Automotive News. Two new options for renovations soon will be available to the roughly 500 Mazda dealers who haven't built Retail Revolution stores. The options will let dealers comply with the design elements of the voluntary program without the $2 million or $3 million cost of a new store. Mazda did not estimate the cost to dealers for the new options. The eight-year-old Retail Revolution program includes such features as a two-story, glass-enclosed vehicle display; a carport-style test drive center; a cafe and an Internet lounge – all in a green-and-orange color scheme. Click here for a picture. But Retail Revolution stores are too elaborate for some dealers outside major metropolitan areas, said Ron Stettner, head of U.S. sales for Mazda North American Operations. One of the new options scraps some expensive architectural elements of flagship stores, such as the glass-enclosed display, test drive center, and cafe. Another option gives dealers in small or rural markets a variety of smaller-scale improvements to choose from. Read more about Mazda’s new, less-costly options for its store improvements here.

J.D. Power: This Month’s New Sales Performance Maintaining September Strength
After a strong September, J.D. Power and Associates contends this month’s new-vehicle retail sales will remain stable, sitting above a 10-million unit level. October new-vehicle retail sales are projected to come in at 828,300 units, which represents a seasonally adjusted annualized rate of 10.5 million units. J.D. Power arrived at this estimation by gathering real-time transaction data from more than 8,900 retail franchised dealers throughout the United States. According to Auto Remarketing, analysts calculated the year-over-year increase in the selling rate is expected to reach 11 percent – the second double-digit growth rate in a row after four months of single-digit growth. They insisted retail transactions are the most accurate measurement of true underlying consumer demand for new vehicles. “After a solid September selling rate, there were questions as to whether the strength would continue into October, given continued concerns with the economy,” stated John Humphrey, senior vice president of global automotive operations at J.D. Power. Given the continued strength in October, J.D. Power is maintaining its forecast for 2011 at 12.6 million units for total light-vehicle sales and 10.2 million units for retail light-vehicle sales. Click here for details on J.D. Power’s October sales projections.

VW, Audi Product Planners Think Big, Not Small, for U.S.
While their competitors add compacts, hybrids, and electric cars, Volkswagen and Audi are pursuing a different product strategy in the United States. According to Automotive News, both VW Group brands want the volume and higher profits that go with larger vehicles. VW just launched the Passat sedan designed for the United States and built at its new Chattanooga, Tenn., factory. The U.S. Passat is larger though less expensive than the version sold in Europe. VW executives have talked about selling a small car like the European Polo in the United States. But for now they are focusing on the Passat and two other cars that have been enlarged and designed mainly for the United States – the year-old Jetta sedan and the second-generation Beetle that went on sale in September. Audi of America has delayed introduction of the compact Q3 crossover, rejected the A1 microcar for the United States, and said if the A2 subcompact is approved it only wants an electric version. Even the A3 hatchback will be pulled from the United States when a roomier sedan targeted at American consumers goes on sale in 2014. Click here for the latest on VW and Audi’s plans for the U.S. market.

Nissan Says Long-Range EV Unnecessary
An electric vehicle with a range of 200 to 300 miles between charges? Totally unnecessary for the vast majority of American motorists, says Mark Perry, director of product planning and strategy for Nissan North America. In a recent interview with Edmunds Auto Observer, Perry said exhaustive data gleaned from the U.S. Department of Energy's EV Project and from the 7,500 Nissan Leaf EV hatchbacks now on U.S. roads makes it abundantly clear that "there's no market need" for an EV that gets hundreds of miles between charges. The data shows that the typical Leaf driver averages 37 miles a day in the car, and that the typical trip length is seven miles. One unanticipated finding the data has revealed is that in a household where one gas-powered vehicle and one electric vehicle exist, the gas-burner often becomes the secondary vehicle. Also somewhat surprising to Nissan is the 90 percent of charging Leaf owners are doing at home. The automaker had expected that 70-80 percent of the charging would be conducted at the owner's residence, and the remainder at work or using public chargers. The percentages will likely change as the number of public chargers grows, he said. For more on EV user patterns, click here.

Why Mercedes is Interested in the NFL
An electric vehicle with a range of 200 to 300 miles between charges? Totally unnecessary for Mercedes-Benz, one of the planet's elite luxury brands, is vying for greater visibility and appeal to mainstream buyers, as exemplified by a ten-year deal to rename the Louisiana Superdome. The executives considered numerous spots where three-pointed stars and pictures of Mercedes vehicles could be located. How about the 10-acre dome itself? "We'll be able to make a statement for every blimp flyover," said Steve Cannon, vice president of marketing for Mercedes-Benz USA. Tom Benson, a Mercedes dealer in New Orleans, is owner of the NFL Saints. Daimler AG, the German automaker that manufactures Mercedes-Benz, isn't interested in being "elite," explained Cannon. "We want to be aspirational." In other words, reports CNN Money, exclusivity may have discouraged some potential buyers of Mercedes vehicles that the brand is out of reach, but it is looking to change that. Mercedes cars will be more affordable – and accessible – starting in 2014 when the brand's smallest variant, the A Class, arrives in the U.S. This is why Daimler AG wants more exposure in the U.S. at football and basketball games, not just at The Masters golf tournament, which targets a smaller audience of extremely affluent viewers. For more on the thinking behind Mercedes’ deal to rename the Louisiana Superdome, click here.

Around the Web
How About a Ferrari FF for Christmas? [Exhaust Notes]
Review: Revenge of the Electric Car [NY Times]
Maine Man's Honda Accord Hits 1 Million Miles [Washington Post]
The Hottest Rides on 2 Wheels [Forbes]