November 10, 2011

A Quiet Threat
Most of the time, the threats facing dealers are unmistakable. Sometimes, however, the threats are much more difficult to identify, writes AIADA Chairman Jim Smail in today’s blog post. On October 21, something happened that could threaten the livelihood of dealers, and most don’t even know about it. On that date, a little company you’ve never heard of – Beacon Navigation GmbH – filed a complaint with the International Trade Commission (ITC) against every single big name auto manufacturer, alleging that each of them has infringed upon its patents related to GPS navigation systems. The company asked the ITC to issue limited exclusion orders and permanent cease and desist orders directed at the named automakers. Last week the ITC invited interested parties to file comments regarding the public interest issues raised by the complaint. You can find AIADA’s letter here. Beacon’s complaint is exceptional in its scope and sheer gall, but similar sneak attacks happen on the auto industry regularly. You can help AIADA in its mission to face every threat by being an active and involved member in the association. Together, we are a powerful force against those that would put us out of business. Read the rest of Chairman Jim Smail’s warning to dealers here.

Toyota Spurs Revival in Miss. Town with Jobs, Spin-Off Effects
Before Toyota came, Cassius Perry was struggling like many in the hilly, sparsely populated region of north Mississippi. This year Perry landed good pay and health insurance when he went to work for a supplier to the sprawling new Toyota plant on the outskirts of the tiny town of Blue Springs. Hundreds have been hired, giving local leaders hope that their area will become another Southern automotive boomtown. According to The Detroit News, the plant is finally set to begin production on Nov. 17, following more than a year's worth of agonizing delays. About 1,250 Toyota employees are already building test cars at the plant, and the company expects to hire another 280 this year. More will come aboard in the future, and dozens of others are employed by suppliers. Analysts say the South is attractive to foreign automakers partly because in right-to-work states that are common in the region workers can't be forced to join unions if their co-workers unionize. Nice weather and proximity to customers in growing states are other factors. For further information on the manufacturing operations of international nameplate brands, visit www.whatisanamericancar.com. For more on Toyota’s newest plant in Blue Springs, Miss., click here.

Honda Shows Three Visions for Electrified Future
Honda Motor Co. will debut three concept cars at the upcoming Tokyo Motor Show that foreshadow the Japanese automaker's vision for a battery-powered future: a plug-in hybrid touring sedan, an electric small city car, and a sporty, open-cockpit electric vehicle. The concepts presage cars that could come to market about two generations from now; say, in 2020. According to Automotive News, a key feature of the cars is a pair of steering handles that are pulled backward and forward to direct the car instead of a wheel. Honda says that the technology is intuitive and much like steering a bicycle. When you want to turn left, you move the right handle forward. When you want to move right, you do the opposite. The first concept, the AC-X, gets its name from Advanced Cruiser Experience. It is a wedge-shaped plug-in hybrid sedan that takes heavy styling cues from the Honda FCX Clarity fuel cell vehicle. Also on display will be the Honda Micro Commuter Concept. The third car of tomorrow is the Small Sports EV Concept, a compact convertible electric vehicle. Read more about Honda’s vehicles of the future on display at the Tokyo Motor Show by clicking here.

Worst Car Flops of 2011
Forbes is featuring a list of vehicles that have performed significantly less than expected this year in the United States; these are the worst automotive flops of 2011. To develop this list of cars, the publication consulted three expert analysts: Jake Fisher, senior automotive engineer for Consumer Reports; Tim Healey, the senior writer at Web2Carz, an automotive website; and John McElroy, Autoline Detroit TV and radio host. Nominations were allowed for any 2011 model-year vehicles and any 2012 model-year vehicles available for sale this year. Admittedly, it’s a subjective tally. Dwindling sales are one way to determine an automotive flop. Excessive hype before a launch, with media silence afterward is another. So is a round of scathing reviews from auto critics, or a Consumer Reports rating that places it among the 10 worst values of the year. Still, flops do indeed have much to do with sales rates. The bottom line, despite the stragglers on this list, is that the general level of quality, performance and value of both domestic and foreign vehicles on the American market has never been better. Check out a photo gallery of the list here. Read more about how Forbes selected the vehicles for its list here.

Smart Cars Can Lead to Dangerous Distractions, Experts Say
Driven a new car lately? Let's go for a ride. Backing out, the car beeps to warn a pedestrian walking by. A dashboard light illuminates if the vehicle ahead is too close. A side mirror light flashes, signaling a truck behind you in the blind spot – not a good moment to pass. And if the car senses you're drowsy or driving erratically, a chime sounds an alert. Resembling computers on wheels, many of the latest vehicles are loaded with sensors, lasers, cameras, and crash warning systems that alert drivers to blind spots and impending collisions, or when they're drifting too far out of their lane. If the driver fails to respond, some models assume control and apply the brakes. Other options assist with the pesky chore of parallel parking or maintain a safe distance between vehicles. The aim of all the bells and whistles is, of course, safety. But, asks The Detroit News, how much is too much? Auto manufacturers are grappling with how to make high-tech gadgetry more user-friendly. Lack of standardization in today's sophisticated technology also ramps up the potential for distraction. To read more about what automakers are doing to improve the safety of the smart technology in their vehicles, click here.

AIADA Members: Save $20 on OfficeMax Phone Orders thru December 31
Through the Automotive Advantage program from OfficeMax, all AIADA members - regardless of size - have access to the same pricing and service offered by OfficeMax to the largest dealers in the market. OfficeMax is more than just pens and paper – they provide a total solution for your business, including furniture, toner, technology, cleaning supplies, and print and document services. Through their core pricing contract, which includes more than 1000 of the most commonly ordered items, AIADA members can receive up to 85% off the list price. CLICK HERE to access a $20 Savings Coupon (phone orders only; $150 minimum). Click here to see recent promotions thru December 31, 2011. Need to set up an account with OfficeMax? Call (800) 248-6343 to get started.

Around the Web 
New Saab 9-3 Image [Auto Express]
Running on Natural Gas, Magnolia Special Completes Cross Country Drive [NY Times]
VW Beetles Through the Ages [CNN Money]
Aston Martin Showing Off 200 MPH One-77 Supercar [DriveOn]