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November 1, 2011
October Car Sales May Be Year's Highest
At 13.4 million vehicles sold, October’s car and truck sales may mark the highest monthly Seasonally Adjusted Annual Rate (SAAR) since August 2009, when sales were inflated by the U.S. government’s Cash for Clunkers program. Edmunds.com estimates 1,033,257 cars and light trucks will be sold in October, up 13 percent from October 2010 but down nearly 2 percent from September. Edmunds.com estimates that retail SAAR will come in at 10.7 million vehicles, with fleet sales accounting for 20 percent of all sales this month. Automakers post results today and AIADA’s Market Watch will be released Wednesday morning. “Pent-up demand has been building for three years and will play out on a slow building of sales,” said Edmunds.com CEO Jeremy Anwyl. He notes that a number of buyers may be back in the market who were put off by a lack of inventory and high prices in April and May. But this bubble of buyers, which he estimates as 200,000 to 300,000 sales, will taper off towards the end of the year. Edmunds.com Chief Economist Lacey Plache, PhD, forecasts that 2012 car sales will reach around 13.5 million vehicles, up from 12.6 million units expected to be sold in 2011. For more from AutoObserver on sales, click here.
The Beetle Mans Up
The 1990s Volkswagen Beetle was a smash hit with women. The new 2012 Beetle, which comes out this month, is aiming for a more masculine audience. It's less flower, but is it really more power? According to the Wall Street Journal, obviously, patently, this car isn't remotely like a Type 1 People's Car, the air-cooled, rear-engine road implement that conquered the world and sold more than 21 million copies. That car was as form-follows-function as it gets. This car is about fashion-forward as one can imagine. Click here for a slideshow. The latest Beetle is 6 inches longer, 3.3 inches wider, and a half-inch lower than the New Beetle (VW dropped the "New" for 2012), with a more level roof and hood. The new car is supposed to be a sleeker, rakish, more muscular, more masculine Beetle. The Man Beetle notion is a marketing contrivance to broaden the car's appeal. Click here for video. About two-thirds of New Beetle buyers were women, the highest percentage of any car on the market. That's a problem because, as any car dealer will tell you, women will sometimes buy a man's car but men rarely ever buy a chick car. For the full Beetle review, click here.
Five Top Safety Picks for Minivans
Five minivans have earned the top safety rating in a new survey of rollover crash protection, but other models fell short. CNN reports that in a study released today by the Insurance Institute for Highway Safety, the models receiving the "Top Safety Pick" award were the 2012 Chrysler Town & Country, Dodge Grand Caravan, Volkswagen Routan, Honda Odyssey, and Toyota Sienna. The Nissan Quest was rated "acceptable," while the Kia Sedona received a "poor," the lowest-possible rating. "Safety-conscious parents shopping for a family hauler should be pleased with today's minivan choices," David Zuby, the Institute's chief research officer, said in a statement. "At the same time, the ratings show that major differences remain in this segment when it comes to protection in a rollover crash." The vans' rollover protection was measured by pushing a metal plate against one corner of their roofs at a constant speed, the IIHS said. High-performing models had to withstand a force equal to 4 times their weight without caving in 5 inches or more. The Institute began the rollover ratings after research showed that strength-to-weight ratios higher than the government's required minimum of 1.5 reduce the risk of serious or fatal injury in rollovers. For more on minivan safety, click here.
Honda Cuts U.S. Output After New Disruptions, May Delay CR-V Launch
Honda Motor Co. will drastically reduce its U.S output over the next few weeks because of fresh supply shortages, this time caused by flooding in Thailand. According to the Detroit News, the production disruptions are likely to delay the launch of the Honda CR-V crossover, scheduled for December. Honda also withdrew full-year earnings forecasts after reporting second-quarter results below analysts' expectations. Its net income dropped to 60.4 billion yen, or $761 million, in the three months ended Sept. 30, from 135.9 billion yen, or $1.7 billion, a year earlier. Honda, which made more than 170,000 cars in Thailand last year, was still recovering from the impact of the March Japan quake and tsunami when the latest disaster occurred. Rains have inundated 10,000 factories and flooded more than 80 percent of Thailand's 77 provinces since July. The impact is spreading to other regions. "Honda will temporarily adjust automobile production at all six auto plants in the U.S. and Canada," Honda said in a statement. "Automobile production will be at approximately 50 percent of the original plan through Nov. 10." For more on the flooding, and how it is affecting other automakers, click here.
Tough Love: A Texas Turnaround
In a profile in Automotive News, dealer Joe Street discusses how he fixed his underperforming Toyota dealership in Amarillo, Texas, eight years ago. He had to change the culture at a store that was full of friendly, easygoing, longtime employees who simply weren't cutting it. Street did it by coming up with what he calls his "heart of a servant" philosophy; introducing a concierge service that produced a surge in sales volume, margins, and customer satisfaction. Back in 2003, Street Toyota, with its 37 employees, had lost its edge. In 20 years, Street Toyota never sold more than 650 new vehicles a year, and by 2002, the dealership's market share in its sales area was less than two-thirds of Toyota's national share. Street took action, and called in help from Toyota. He plunked down the cash for Toyota's Signature plan – an on-site assistance program that examines 14 points of customer contact and requires the owner and managers to examine and assess their processes. "We had to change the culture, recognizing there are loyal long-term employees that won't make the journey," he said. "They were loyal, but didn't have the right attitude. You have to have a servant's heart." To read the full story, and learn more about the changes Street implemented, click here.
Merchant Warehouse to Provide AIADA Members with Award-Winning Payment Processing Solutions and Service
Announced today, AIADA is pleased to add Merchant Warehouse to its Affinity Partner program. Merchant Warehouse has a long history as an A+ Rated member with the Better Business Bureau and has been rated number one by Credit Card Processing Review. They will offer dealers secure processing for all forms of electronic payments including credit, debit, EBT, rewards and gift cards, and checks. “We are extremely excited about our partnership with AIADA. I believe there is a real synergy between both our mission and theirs, with our ability to provide a credit card processing solution that assures their membership the lowest possible costs, in addition to the in-house resources needed to offer an unparalleled customer service experience,” stated Scott Zdanis, Co-CEO of Merchant Warehouse. Founded in 1998, Merchant Warehouse now has over 100,000 merchants and continues to set the standard for price, technology, customer service, and integrity within the payments industry. To learn more about what Merchant Warehouse can do for your dealership, contact Daniel Rowe, AIADA Channel Manager for Merchant Warehouse at (800) 795-6073 or drowe@merchantwarehouse.com. Click here to learn more about Merchant Warehouse.
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