January 12, 2012

With Little Fanfare, Nissan is Defying the Odds
It won’t take a pathfinder to put Nissan on the right track, although this week’s launch of an all-new Nissan Pathfinder at the North American International Auto Show is a critical piece in the automaker’s product strategy. 2011 was a tough year for Japanese automakers. However, reports MSNBC, what’s often missed is the fact that Nissan finished the year with a 15 percent increase in annual U.S. sales, even though the automaker struggled with shortages through July. However, it’s difficult to stay in the shadows when you’re planning a series of product roll-outs like the flashy Pathfinder preview in Detroit. And the carmaker will follow it with a series of new products, including replacements for key midsize models Altima and Sentra later this year. It’s come as a big surprise to see Nissan doing so well, many analysts admit, although George Peterson, chief of AutoPacific, says it suggests the carmaker has “paid attention to [its] knitting.” Equally impressive is the fact that the products Nissan had to sell were largely reaching the end of their lifecycle, with the exception of a few models. Click here for more on how Nissan has performed well over the past year, despite significant hurdles.

TrueCar will Adopt Subscription Fees in Virginia in Bid for Regulators' OK
TrueCar.com said Wednesday that it will change its fee structure in Virginia, after regulators there determined that dealerships using the internet shopping service were violating state law. According to Automotive News, TrueCar's announcement was the latest development in a growing regulatory controversy affecting auto dealers in half a dozen states. On Tuesday, regulators in Oklahoma asked TrueCar to suspend business there until legal concerns could be addressed. In a statement, TrueCar said it complied, suspending service in Oklahoma through Jan. 15, "as we transition to a new model." TrueCar also suspended service in Nebraska for the same period. In Virginia, TrueCar said it will drop fees that it charges participating dealers when they sell autos from TrueCar leads. The regulators ruled Monday that the fees violate Virginia's ban on bird-dogging – paying fees to third parties for leads that turn into sales. Instead, TrueCar will charge participating dealers a subscription fee not tied to sales. In the TrueCar statement, CEO Scott Painter said: “TrueCar is committed to never putting our dealer partners at risk, which means we will always work closely with regulators to identify a workable solution or . . . suspend service.” Click here for the latest on TrueCar.com.

Not Quite a Luxury Car, But Close Enough?
According to The Wall Street Journal, a new crop of cars and crossovers is coming to tempt consumers who want to find middle ground between a $25,000 Ford and a $50,000 Mercedes. Several auto makers are using this week's auto show in Detroit to showcase new models aimed at establishing a profitable niche for "near luxury" cars. While BMW, Mercedes-Benz, and Audi are trying to pull away from the pack with a raft of costly models with leading-edge technology, Acura, Buick, Lincoln, and others are betting a sweet spot is opening up between the high-end and mass-market brands. They're offering new models with many of the amenities of the luxury leaders, but with less daunting technology and lower prices. Acura on Tuesday unveiled a prototype for a new small sedan called the ILX aimed at consumers looking for a sporty car that could hang with an Audi A4. "Ten per cent of consumers buy luxury cars," says John Mendel, executive vice president of Honda's U.S. sales arm. "Eighty percent aspire to luxury." Acura can do well if it offers attractive cars that can convert even a small slice of that 80 percent into buyers, he says. Read more on the efforts of automakers to attract near-luxury buyers.

Volkswagen Almost Didn't Build a U.S. Plant
Volkswagen had a tough time deciding to build a factory and make cars in the U.S. because the debacle with the Westmoreland, Pa. factory decades ago left such an enduring bad taste in the German automaker's corporate mouth, VW Group CEO Martin Winterkorn says. According to USA Today, despite the compelling argument that it costs much less to build cars and trucks where they are sold, VW was stalled by the memory of setting up shop in the U.S., only to have to close the operation and move back to Germany. "Volkswagen left the U.S. in 1986, and that was a disaster point in time for the people in Westmoreland, as well as the suppliers," and for VW, Winterkorn said in a session with journalists during press preview ahead of the North American International Auto Show in Detroit. "The decision in the Volkswagen Group to build a factory in the U.S. was difficult due to what happened at Westmoreland," Winterkorn said. VW built a sprawling auto plant at Chattanooga, Tenn., and began making redesigned Passat sedans there last year. Read more about VW’s decision to build its new Chattanooga plant by clicking here.

10 Cars to Trade-In Now for Maximum Return
It’s never been a better time to trade in a late-model vehicle on a new one, as dealers are going all out to amass a fresh supply of used cars and replenish what’s become a severely depleted inventory. And they’re offering top dollar for them in trade, with some of the most in-demand models in excellent condition commanding 70 percent or more of their original sticker prices. According to Forbes, while this means sky-high prices for those looking to purchase a pre-owned car, it’s a bonanza for owners of late-model cars looking to upgrade their rides. Forbes has compiled its list of cars fetching top trade-in dollar. Click here to see it. The publication reached its conclusions after consulting a long list of model-year 2008 cars and trucks that Automotive Lease Guide initially predicted would retain above average residual values after three years of ownership. It then consulted NADA Guides to determine their current estimated resale values for the Chicago area, assuming for the sake of argument, that each model was considered a “clean” trade-in (meaning no mechanical defects, only minor wear and tear and a clear title) with 46,500 miles on the odometer. Read more on the best cars to trade in now by clicking here.

Controlling Car Rental Costs
Bill Kay’s Downers Grove Nissan, one of the leading Nissan dealers in the Chicagoland region, has high expectations for its service advisors. That includes controlling car rental costs for every customer, every time. According to Rick Klaves, service manager at the dealership, it takes service advisors just three minutes or less using the Automated Rental Management System (ARMS^®) application from Enterprise Rent-A-Car to create an electronic purchase order for a rental car at the same time they are initiating a repair order for service. Available to dealerships at no charge, the ARMS^® application creates seamless electronic communications between service advisors and Enterprise. “Not only does ARMS help to significantly reduce errors and avoid unnecessary delays, it helps us better analyze and manage the rental process on every level. And, our service department saves money by better managing the number of authorized rental days,” says Kaves. “With 150 to 200 customer rental cars each month, being able to control rental costs for every customer, every time, is significant.” For more information or to arrange a demonstration of the ARMS^® application, please go to www.ARMSDealership.com or e-mail ARMSDealership@erac.com.

Around the Web 
2013 Porsche Boxster Unveiled [Autoblog]
The Case for the Autonomous Car [Motor Trend]
2012 Best Cars for the Money Awards [MSN Autos]
Electric Cars Recharged Wirelessly [DriveOn]