December 21, 2011

Smail Mail: A Look Back
Dealers are exceptionally busy this time of year. While taking time to reflect upon the high and low points of the past year isn’t always possible, it is important. AIADA Jim Smail writes that this year, he is making the time to look back on his time with AIADA, and look ahead at the future of the association. When he accepted the title of chairman at AIADA’s Annual Meeting in San Francisco last February, he couldn’t have predicted the big events that lay ahead, or the level to which dealers and manufacturers would rise to meet them. As he prepares to pass the AIADA gavel over to 2012 chairman, Ray Mungenast of St. Louis, Smail says he is more confident than ever in the industry’s ability to rise to any challenge. While December and January will be busy months, dealers should consider joining Smail and AIADA on Monday, February 6 in Las Vegas for AIADA’s 42nd Annual Meeting and Luncheon. The meeting will provide dealers with a real opportunity to look back on what we accomplished in 2011, celebrate those that are leading our industry forward, and focus on the challenges that lie ahead. Click here to read the rest of Smail’s letter that reflects on 2011 and the challenges that are ahead in 2012.

St. Nick of Time
When dealer Dave Wilson heard about a new trend of anonymous donors paying off strangers’ holiday layaway balances at retail stores, he decided to find out if he could help a few families have a happier Christmas. According to The Daily, he ended up paying off the bills for 260 families, spending nearly $16,000 to settle their tabs at a Kmart in Costa Mesa, Calif. A Kmart spokeswoman said it was the largest gift she could recall. Wilson, 64, of Laguna Beach, Calif., owns 16 luxury car dealerships in Southern California and Arizona, but he can still remember what it was like to work the graveyard shift as a janitor at an Iowa Kmart back when he was in college. He wanted to help hardworking families – and he also wanted to do something special for his wife. “I just thought, ‘What can I get her for her birthday?’ ” he told The Daily. “I had heard about this on a local morning news show and I thought, ‘What a great idea.’ This isn’t just potluck charity, this is working-class people who have invested in something they want or need.” Read more about dealer Dave Wilson and others like him who are helping others this holiday season by clicking here.

Honda Looks to Refreshed Civic, Other New Vehicles to Revitalize Brand in 2012
Honda Motor Corp. officials are hoping an early refresh of the Honda Civic, as well as the new 2013 CR-V crossover and Accord sedan, will allow the Japanese automaker to maintain leadership in the fiercely competitive car market in the United States. According to The Detroit News, natural disasters have disrupted production. A soaring yen has made exports from Japan pricey. And criticism of the new compact Civic has shown a chink in the automaker's product line as more vehicles jockey for market share. "The competition will continue to intensify on the car side" as automakers face the hurdles of increasingly stringent fuel-economy standards, said Tetsuo Iwamura, chief executive of American Honda Motor Co. A new Civic was introduced this summer and has been criticized for conservative styling, cheap materials in the interior, and unimpressive driving characteristics. Honda is already working on enhancements to both styling and drivability. A new Accord concept will also be unveiled at the North American International Auto Show in January, as well as a concept to bring back the iconic Acura NSX sports car that transformed the brand's image 20 years ago. Read more about Honda’s plans to revitalize its image here.

Saab Suspends Warranty Coverage on North American Vehicles
According to Automotive News, Saab has suspended warranty coverage on all of its vehicles in North America. Additionally, new vehicles must be sold "as is," the bankrupt Swedish automaker told its dealers. However, General Motors, Saab's former owner, said today it would honor warranties on all models sold when it owned the Swedish automaker. The suspension took place on Monday, the same day a Swedish court approved the automaker's bankruptcy petition to liquidate and begin paying creditors. Two receivers were appointed to oversee Saab's assets. Effective Dec. 19, "warranty coverage is suspended indefinitely for all new Saab vehicles sold. During this period, the warranty booklet must be removed from the owner information packet," Saab Cars North America said in a statement. "For any vehicle sold or leased during this period, the customer should be affirmatively advised that the vehicle does not carry any warranty coverage and is sold 'as is.'" Saab Cars North America also said it has suspended the processing and payment of all claims, including but not limited to new-car warranties, powertrain warranties, emission warranties, parts warranties, and others. Read more about the suspension of Saab’s warranty coverage here.

Car Dealers Sing: 'Have Yourself a Merry Little Lexus'
Luxury-car companies are making the holiday season one of the best times of the year to get a good deal on a new vehicle. The Wall Street Journal reports that competition for year-end buyers is generating a host of commercials touting the notion that an expensive car is a perfect Yuletide present, as romantic as a diamond, but bigger. "It's the peak for the entire year, the last 10 days" of December, says Mike Jackson, chief executive officer of AutoNation Inc., the largest auto dealership chain. It isn't just advertised deals that are moving the luxury market, he says. New models, such as the revamped Mercedes C-Class sedan and M-Class sport utility vehicle, are reviving interest at the same time as the economy is showing signs of improvement. Mercedes-Benz and BMW AG are making their most aggressive efforts in several years to win customers, offering big discounts on financing and lease rates. They also are allowing customers stuck in leases out to April 2012 to cancel contracts early. Lexus turbo-charged the concept of luxury cars as gifts a dozen years ago when it launched its "December to Remember" campaign. For more on how luxury automakers are taking advantage of the holiday season, click here.

Making Plans for 2012? Register Today for AIADA’s 42nd Annual Meeting and Luncheon
Join AIADA, fellow dealers, and industry leaders at our 42nd Annual Meeting and Luncheon on February 6 in Las Vegas. Together, we’ll consider the Legacy of Leadership that is inspiring today’s international dealer community and what it means for the future of our industry. This year's meeting will include keynote remarks from Mark Templin, Group Vice President and General Manager at Lexus. “Lexus has proven itself a leader in the U.S. auto market, and Mark Templin has played a central role in making it one of today’s most popular luxury brands,” said AIADA President Cody Lusk. “His remarks will provide invaluable perspective for dealers considering how our industry can continue to lead in the U.S.” Read more about Templin and AIADA’s 42nd Annual Meeting and Luncheon here. In addition to Templin’s remarks, the event will include the presentation of the David F. Mungenast Lifetime Achievement Award and the passing of AIADA’s chairman’s gavel from the current chairman, Jim Smail of Pennsylvania to Chairman-Elect Ray Mungenast of Missouri. Don’t miss your chance; register today by clicking here or call 1-800-GO-AIADA.

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