November 14, 2011

BMW's New U.S. Boss Wants to Build a Bridge to Dealers
Having spent years running dealerships and even working as a car salesman, Ludwig Willisch, BMW of North America's new CEO, figures he can improve BMW's relations with its U.S. retailers. Willisch, who has been in the job since Oct. 1, says he wants to have "the most satisfied customers and to be the most motivated team" in the luxury car segment. To get there, Automotive News reports that BMW must include dealers in its decisions. Willisch, 55, a German-born executive, climbed the BMW ranks for 15 years. He speaks nearly flawless English, has a dry wit, and races cars as a hobby. He says one of his first actions as CEO was calling Damon Shelly, chairman of the BMW National Dealer Forum. Willisch also has met with the BMW and the Mini dealer forums and visits local dealers when on the road. From 1979 to 1995, Willisch worked at an Audi, Volkswagen, and Porsche group dealership in Germany in retail and wholesale sales. "I can put myself into a dealer's shoes," he says. "I can say, 'This is the issue and our view on it and how can we get this sorted out?'" Read more about BMW’s new U.S. boss and his dealer philosophy here.

Hyundai is Placing Big Bets on the Super Bowl
According to MSNBC, Hyundai Motor Co. is hoping that five television spots before and during the Super Bowl will help to bolster its rising brand recognition and continue big sales gains from the past few years. North American CEO John Krafcik says the fast-growing brand is working on a 60-second spot that will run right before kickoff, plus two ads on the pregame show and two during the first and third quarters of the game. He said Hyundai hopes to have standout spots, but it will focus more on a brand message rather than going for entertainment value. Hyundai, he said, might have a little more fun with its ads this year and try to make them more memorable than in the past. But it's also trying to sway about a third of the auto market that has a neutral view of the brand. Through October, the company has sold more than 545,000 vehicles, already passing last year's record sales of 538,000, according to Autodata Corp. Hyundai's U.S. market share has risen from 4.2 percent in 2009 to 5.2 percent so far this year. Click here to read more about Hyundai’s planned Super Bowl ads.

2012 Automobile of the Year: Audi A7
Sometimes, Automobile Magazine’s Automobile of the Year is a dramatic about-face for its manufacturer. Other times, it is a car that breaks new ground technologically. Some years, it is a spectacular upgrade from its predecessor. This year, it's none of those things. The Audi A7, does not represent a dramatic change of pace for its maker. Anchored by Audi's Quattro all-wheel drive, bristling with of-the-moment technologies, and surrounding its passengers with an artfully crafted interior, the A7 is exactly in keeping with the cars that this brand has been turning out. As editor-in-chief Jean Jennings said, "It's the culmination of everything Audi has promised." The A7 may not usher in any major new technology, but the list of leading-edge features it does offer is impressive. The editors at Automobile Magazine say the A7 is a car that snuck up on them. It looks good in pictures, but it's much more striking in person. The front visage is both sleek and imposing; in the side view, the car appears elongated, as if tapered by the wind. Move around to the rear, and the A7 is simply captivating. Click here for a photo gallery.  Read more about the car and why it was selected for the magazine’s 2012 Automobile of the Year here.

Late Incentives Mask Lux Segment Weakness
While Mercedes-Benz gained some ground during October, BMW seems to be going all-out to nab the U.S. luxury-sales crown for 2011. And BMW has a little-understood advantage in the race: Its dealers have a much higher percentage of leftover 2011 models on their lots than do Mercedes dealers, so BMW executives are feeling the freedom to swamp rivals with the level of their incentives. According to Edmunds Auto Observer, the race has lots of interested observers across the industry because of the crucial nature of seasonal November and December sales to the luxury segment and how the BMW-Mercedes competition is affecting it. Other things that are factoring into the segment’s year-end sprint are lower sales of upscale models overall relative to the U.S. market as a whole and a bifurcation in trends between sales of entry-level luxury models and higher-priced ones. Brian Smith, vice president of marketing for Lexus, says that the annual sales crown means more than just bragging rights for the victor. “Tangibly, it confirms that you’re doing a lot of things right, you have great products, and great customer satisfaction,” he said. “It’s a source of pride. It helps build momentum among dealers.” Read more about the luxury segment’s dash to the finish line here.

Porsche Blasts Hybrids Into New Stratosphere
Dan Neil at The Wall Street Journal writes that the Porsche GT3 R Hybrid is an experimental, 670-horsepower, all-wheel-drive, 2,860-pound gas-electric cyclone. Click here for pictures. He writes that the very word "hybrid" causes old-schoolers to grind their molars like hadrosaurs. However, the promise that now the GT3 R Hybrid makes manifest is a sports car that is both more efficient and vastly, outrageously, splendidly more capable than a conventional car (if you want to call Porsche's factory race car "conventional"). There are two very trick bits to this car: The first is its tomorrow-tech flywheel energy-storage system. Like other hybrids, the car has a motor/generator (actually two, worth about 100 hp each) attached to the front wheels. However, unlike battery-equipped hybrids, the Porsche stores its amperage mechanically, spooling up a 31-pound flywheel operating in a vacuum chamber in (one hopes) a crash-proof box beside the driver. This car can accelerate and decelerate at about 1 g and corner at nearly 2 g, which is pretty physical. Check out Neil’s video coverage of the Porsche GT3 R Hybrid here. For his full review of the cutting edge performance car, click here.

Register Now: What You Need to Know Before You Build, Renovate, or Buy
Expanding your dealership can put you in a better position to take advantage of new opportunities. For many dealers, however, the decision to expand is just a start: understanding the ins and outs of real estate construction and acquisition can be a real challenge. Join AIADA and Affinity Partner, KeyBank¹ – along with presenters from Massachusetts-based Colonial Auto Group and the law firm of Stebbins, Lazos, and Van Der Beken – this Thursday, November 17 at 11 a.m. EST for a free webinar that will provide insight on auto dealer real estate decision-making. The webinar will cover topics including what you should consider before taking on a construction project; project, budget and risk considerations in commercial construction administration; important legal issues to take into account; and a dealer’s perspective on new construction and real estate purchase. Whether you are building or buying new facilities, this webinar can help you make the most of your real estate space. Register now!  ¹Information provided by KeyBank National Association is not legal, tax or investment advice. If such advice is required, the services of a qualified professional should be sought. KeyBank does not make any warranties regarding the results obtained from the use of this information. All credit products are subject to credit approval.

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