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November 22, 2011
UAW to Campaign at Dealers in Push to Organize Non-Union Plants
The UAW, whose leader has staked its future bargaining power on organizing U.S. plants of Asian and European automakers, plans to start pressuring the companies through dealership campaigns. Bloomberg reports that the union hasn't selected the automaker it will target or when the drive will begin. Restoring the UAW's clout depends on organizing the U.S. factories of automakers such as Toyota Motor Corp. and Daimler AG, union President Bob King told members at the union's bargaining convention in March. The UAW has failed in attempts to organize Toyota, Honda Motor Co., and Nissan Motor Co.'s U.S. plants in the past. Cody Lusk, president of the American International Automobile Dealers Association, criticized the UAW move. "The UAW's most recent threat to target dealerships in their campaign to unionize international nameplate manufacturers is unwarranted and will only hurt these small businesses, their employees, and communities," Lusk said in a statement. "The UAW would be better served focusing their energies on constructing a convincing argument to present to plant workers who have voted against unionization numerous times." For the full story, click here.
Thank You
With Thanksgiving upon us, AIADA Chairman Jim Smail is using this week’s Smail Mail to take stock of his blessings. Like many of America’s dealers, he writes, I have a lot to be thankful for. At the top of that list is my family – some of whom work with me in the business and all of whom make my life a brighter place. I am thankful for all the healthy people in my life, and for my own health. I am also thankful for my country, which has offered me countless opportunities and instilled within me an entrepreneurial spirit. America is the best place in the world to own and run a small business, and I will do everything in my power to keep it that way. As chairman of AIADA, I have seen exactly how much time and effort AIADA’s members put into this association, and it floors me. Your efforts are what make AIADA such an effective tool against unfair taxes, anti-trade rhetoric, new regulations, and a growing labor threat. As we begin to plan for 2012, and all the battles ahead, I am thankful for your enthusiastic involvement and investment in our shared future. Click here to read the full blog piece.
Top 10 Automotive Turkeys of 2011
The bird is stuffed and in the oven, the spuds are ready to be mashed, and the apple pie is cooling on the counter. Thanksgiving is here, boys and girls, and that means it's time for MSN to unveil their picks for the automotive turkeys of 2011 — the cars that, for one reason or another, just plain missed the mark. Some are unpleasant, others are atrocious. Still others are flat-out intolerable, the kind of thing we wouldn't wish on our worst enemies. Regardless, pay attention: New cars don't get more turkey-ish than these. First on the list is the 2012 Fiat 500C. Click here for a picture. The convertible version of the Fiat 500 offers everything its fixed-roof sibling does, but at a much higher price and without much gain. On average, the folding-roof 500 runs about $4,000 more than the fixed-roof version. Call it a great car ruined by sticker shock. The 2011 Ford Explorer 2.0L EcoBoost also made the list. The 4,550-pound Explorer's problems — road feel borrowed from the Queen Mary and the intensely frustrating MyFord Touch system — are compounded by the engine's inability to deal with the vehicle's heft. Click here for a slideshow of all of MSN’s 2011 automotive turkeys.
VW May Need More U.S. Dealers
Volkswagen may need to increase its dealer network in the United States in the long term to meet its sales goals, Jonathan Browning, CEO of Volkswagen Group of America, said. VW aims to boost U.S. annual sales of VW brand cars to 800,000 by 2018. Last year the brand sold 256,830 vehicles. Browning said VW is on track to sell more than 300,000 vehicles in the U.S. this year. He sees "double digit" VW-brand sales growth next year. Read about VW’s U.S. growth in AIADA's latest issue of AutoDealer here. VW expects its dealer network to be stable over the next two to three years. "But by 2014/15 we will have to add dealers across the U.S. to achieve our long-term objectives," Browning told Automotive News Europe on the sidelines of the L.A. Motor Show. Currently, the VW brand has about 600 dealers in the U.S. The dealers' return on sales has increased from 2.5 percent to 2.6 percent, Browning said. He forecasts total industry sales in the U.S. of 12.8 million to 12.85 million units this year and 13.5 million to 14 million in 2012. For the latest on VW’s plans for its dealer body, click here.
A Lighter Shade of Green at L.A. Auto Show
The New York Times’ Jerry Garrett, writing at the 2011 Los Angeles Auto Show, says that if it could be summed up in a single word, that word might well be “tentative.” The economy is lurching, the industry’s sales are seesawing, and prospects for stability are uncertain. So the attitude among automakers seemed to be one of wait and see, making it all but impossible to identify a definite trend or direction. Important new products were unveiled, but they were, for the most part, mass-production models. Officials of the show, which opened to the public Friday after two days of press previews, promised more than 50 new model introductions. That total represents a steady, if slow, improvement over the dark days of 2008-9, when the show’s existence was in question as the auto industry stumbled into recession and bankruptcy. “It’s an indication of the improving strength, and underlying solid fundamentals, of the auto industry,” said John Mendel, executive vice president of American Honda, “that there are more than enough new models in the pipeline to support this, and other major auto shows throughout the year around the globe.” Read more of Garrett’s take on the models at the 2011 LA Auto Show by clicking here.
The First Step to a New Image for Your Dealership
Metal halide has become the preferred lighting system for all automotive applications, including lot lighting, service department, showroom, and detail areas. Recently, the automotive market has been presented with opportunities to use new LED and fluorescent technologies; however, metal halide systems have also experienced technological advancements offering improved performance, quality of light, and energy savings. The benefits of an upgraded metal halide system not only compete, but can exceed that of LED and fluorescent options. AIADA Affinity Partner Venture Lighting’s Natural White® system was specifically designed for automotive dealerships by offering daylight color, 90 percent maintained light levels, longer lamp life, and an improved color rendering index to highlight and bring out the true colors of the vehicles and other merchandise. Dealership customers will experience an enhanced shopping environment with Venture’s Natural White system. To learn more about the product and service benefits and see potential savings, click here. Venture provides lighting design comparisons to educate and assist dealers, designers, and contractors with identifying the best lighting solution. Through their full turnkey proposal, they assess existing lighting conditions and discuss your goals and objectives. Contact Venture at (800) 657-0077 or aiada@venturelighting.com to learn more.
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