January 13, 2012

Smail Mail: An Industry Moves Forward
Earlier this week, AIADA Chairman Jim Smail says he spent a few days in Detroit at the North American International Auto Show. As he circulated the crowded show floor, examining new models and catching up with both manufacturer executives and industry representatives, he overheard countless people comment on the energy and size of the show. The general consensus seemed to be that the Detroit show – and the automotive industry as a whole – is “back.” But what did they mean by “back?” Are things back to the way they were in 2007, before our economy and vehicle sales collapsed? The past five years have changed the way cars are built, marketed, and sold in America. While some of the lessons we learned were painful, they ultimately made a stronger, more flexible, and more resilient industry. 2012, writes Smail, is not a time for reminiscing about how things were; it’s a time for action, for involvement, and for building a solid foundation for future generations of dealers. You can get started on the right foot in 2012 by joining AIADA at the 42nd Annual Meeting and Luncheon in Las Vegas this February. Register today by clicking here. Until then, let’s leave “back” behind us. Read the rest of Smail’s letter here.

BMW to Add X4 Model, Expand S.C. Plant with $900M Investment
BMW, now the best-selling luxury brand in the United States, will invest $900 million in its Spartanburg, S.C., plant over the next three years, creating 300 new jobs. According to Automotive News, the expansion will allow the plant to build 350,000 vehicles a year. The operation produces the BMW X3, X5, and X6 SUVs. It will now add the X4 model. The X4 would be the fifth model in the BMW brand's SUV range and is expected to launch in 2013. It will have the lower roofline and coupe styling of the larger X6. BMW division, which topped Mercedes-Benz and Lexus in 2011 to become the top-selling U.S. luxury brand for the first time, produced 276,065 vehicles in Spartanburg last year – an increase of 73 percent over the previous year. The BMW X3 fueled the increase with a 156 percent boost in global sales last year to 117,944 vehicles. BMW sold 27,793 of its redesigned X3s in the United States last year compared with 6,075 X3s in 2010. BMW said 70 percent of the vehicles made in Spartanburg are exported. For the latest on BMW’s plans to expand production at its South Carolina plant, click here.

Automakers Boost Safety Features
According to The Detroit News, automakers are ramping up safety improvements in the race to win new customers. At the North American International Auto Show press preview days this week, automakers vowed to add new safety features as standard equipment in many models, including rear-facing cameras to boost visibility for drivers and systems to warn when the car is drifting from the lane. Automakers also showed advanced safety features in concept cars that could arrive in showrooms in the years to come. Honda Motor Co. said it will add forward-collision warning and lane-departure warning systems standard to all of its vehicles as it rolls out new models. Honda said it will begin with its new Accord coming later this year. Toyota Motor Corp. showed off its new Prius c, a $19,000 subcompact that will have nine air bags. Its Toyota NS4 concept has a next-generation pre-collision system that "is actually just around the corner," said Jim Lentz, president and chief operating officer of Toyota Motor Sales USA. "It uses millimeter-wave radar and stereo cameras to detect, alert the driver of and automatically help to avoid lane drift-departure, pedestrians and other vehicles — even at night," Lentz said. Read more about the future of vehicle safety technology here.

Mercedes, Porsche Bring Themselves Down to Earth
Carmakers almost uniformly seek to boost their images, hoping to promote their products as something drivers should aspire to. In the process, they seek wealthy, well-educated (and young) buyers. Trouble is there’s a name frequently applied to such people: Snobs. According to MSNBC, it’s something that worries Mercedes-Benz President and CEO Dieter Zetsche. At the Detroit auto show this week he expressed a desire to ensure that consumers see Mercedes as “approachable” so that when they are in a position to buy a new Mercedes they are willing to visit one of the company’s dealers. This is particularly critical as the carmaker prepares to enter the compact car market. It's doing so to pump up its average fuel economy and meet government gas mileage standards. Facing a similar challenge, Porsche will soon open two Porsche Experience centers, one in Los Angeles and one near its Atlanta U.S. headquarters, according to spokesman Nick Twork. These centers will be located in highly visible spots where passersby will be invited to come in and see the cars while not facing the sales pressure of a car dealer. Click here to see what some high end brands are doing to make their vehicles more accessible.

Women-Drivers.com: Mercedes-Benz Is Leader with Female Buyers
Women-Drivers.com has released a list that will perhaps give dealers some insight into what the site’s primary audience is looking for in a vehicle, as well as which brands they tend to lean towards. By releasing its annual report showing the top car brands as rated by women, the site aims to also highlight which dealerships and nameplates are best treating females. And, reports Auto Remarketing, with women now accounting for over half of all car purchases, the site contends dealers need to hone in on what female buyers are looking for. After tracking thousands of consumer reviews with regards to womens' purchasing and browsing experiences at dealerships, the site found that one luxury nameplate took the highest score in both categories: Mercedes-Benz scored a 4.89 for purchasing experience and a 4.59 for browsing at a dealership experience on the Women Satisfaction Index (WSI), which runs on a 1.0 to 5.0 scale. They were followed closely behind by Dodge (4.86) and Lexus (4.83). Click here to check out the entire index. Read more on the results of Women-Drivers.com’s findings by clicking here.

Déjà Vu with the Estate Tax
The past few years have been somewhat of a rollercoaster for anyone trying to put an estate plan in place, or even update an existing plan. During the past ten years, the estate tax exemption amount and the top tax rate have changed five times. Provisions contained in the 2010 Tax Act are scheduled to expire on December 31, 2012. Click here to read more or learn more on AIADA’s website. Regardless of what Congress decides to do in the future, up-to-date estate planning documents are essential to ensure that your assets are distributed according to your wishes. Whether you are creating a new plan or updating an existing one, you only need to plan based on current law and incorporate flexibility to manage whatever changes Congress may send our way. Federated is committed to helping family business owners complete this important planning – their marketing representatives direct clients to skilled estate planning attorneys and personally help facilitate much of the “leg work” that can make the process go more smoothly. Contact your local Federated Insurance Representative or click here to have someone contact you directly. After all, your legacy should not be left to chance.

Around the Web  
Watch: 2013 Acura RDX at the Detroit Auto Show [MotorAuthority]
Hyundai Hits CAFE Requirements Early [Autoblog]
Top 10 Cars at CES [Edmunds Inside Line]
The Secrete Life of a Car Show Model [Forbes]