January 19, 2012

Subaru Looks to the Sun Belt for Growth
Subaru aims to generate 20 percent of its U.S. sales from Sun Belt states in the next two years, up from just 15 percent now, as it chases a fourth straight year of record sales. According to Automotive News, the brand also is racing to improve dealer service throughout the country in anticipation of an increase in service business that will result from the rapid sales expansion. Subaru plans to boost spending on training and other improvements at least 18 percent this year to prepare its dealer network for repair work and customer service, Subaru of America Inc. COO Tom Doll said. Improving its retail network and expanding in the South are key elements of Subaru's goal to reach U.S. sales of 350,000 units by 2016, while keeping a market share of at least 2 percent. The automaker gets about 15 percent of its sales in the South today vs. about 9 percent two years ago, Doll said. That will rise to 20 percent in the next two years, he said. In the longer term, Subaru wants to get a third of its sales from the region. Read more about Subaru’s strategy to grow its market share in the southern U.S. here.

Gen Y Auto Buyers Want Hybrids Packed with Technology
When it comes to their autos, members of Generation Y want hybrid cars stuffed with technology. They could be the "generation that leads us away from traditional gasoline-powered vehicles," said Craig Giffi, the Deloitte automotive consultant who oversees the accounting firm’s annual survey of Gen Y auto consumers. Deloitte defines Gen Y as those 19 to 31 years old. According to the Los Angeles Times, automakers seem to be targeting this market with many of their latest offerings. According to the Deloitte survey, 59 percent of Gen Y respondents said they preferred an "electrified vehicle" over any other type of car or truck. They generally defined "electrified" as a hybrid gasoline-electric vehicle. Just 2 percent said they wanted a pure battery electric vehicle, which reflects the very small number of such cars that people are purchasing. Just 37 percent of the respondents preferred vehicles with the traditional gasoline-only powertrain. About 1 out of 4 new automobiles sold this year, and 40 percent of vehicles sold in the next 10 years, will be purchased by Gen Y consumers, according to the accounting firm. Click here for complete coverage of Gen Y’s role in the future of hybrid vehicle sales.

Science Panel Backs Closing of Toyota Acceleration Probe
According to The Detroit News, a panel of the National Academy of Sciences said Wednesday that federal auto safety investigators were justified in closing a probe into potential electronic causes of sudden acceleration of Toyota Motor Corp. vehicles. However, it said the National Highway Traffic Safety Administration (NHTSA) needed to gain more expertise in vehicle electronics. "This committee finds NHTSA's decision to close its investigation on Toyota electronic throttle controls was justified," said Louis Lanzerotti, a physics professor, member of the National Science Board and author of a 140-page report on the automotive electronics issues raised by massive recalls by Toyota. The automaker had blamed mechanical causes, such as sticking pedals and pedal entrapment by floor mats, for reports of unintended acceleration. NHTSA ultimately agreed, but also sought input from the National Aeronautics and Space Administration, which said electronics did not appear to be a factor in the reports on unintended acceleration of Toyota and Lexus cars in recent years. Among the panel's recommendations, it urged NHTSA to convene a standing technical advisory panel made up of people with backgrounds in automotive electronics systems. Click here for coverage of NHTSA’s decision to close its probe of Toyota’s unintended acceleration issues.

Automakers Gearing Up for a Super Bowl Spending Spree
Super Bowl commercials cost advertisers $3.5 million for 30 seconds of air time this year, according to industry trade publication AdWeek, and some of the epic car commercials will run 60 seconds. The contenders take the field against one another in pursuit of the glory that comes with victory before an expected viewing audience of 110 million. According to MSNBC, VW heads a roster of car companies advertising during the big game, including Chrysler and Audi, whose “Green Police” spot was among the top 2010 spots from the game. VW is confident in its new 60-second spot. “Last year’s Super Bowl campaign was an overwhelming success for the brand,” noted Brian Thomas, VW’s General Manager of Brand Marketing. “We see this year’s Super Bowl as a great way to continue this success.” Audi has advertised in the Super Bowl for five years, and over that time the company has achieved record sales, record brand strength, and higher transaction prices, according to Scott Keogh, Audi’s chief marketing officer. Audi returns this year with a 60-second spot that highlights the LED headlights on the upcoming S7 model. For more on what to expect from this year’s automotive Super Bowl ads, click here.

2012 Automobile Magazine All-Stars
What's the best car? Everybody wants to know. It's a difficult question. According to Automobile Magazine, there is no single best car. But when you drive as many different new vehicles as they do, people expect them to have an answer, and they say they do. The best new car introduced in the past year is their Automobile of the Year. For 2012, the winner is the Audi A7. As for the publication’s All-Stars, any car on sale in America in the current model year – whether an existing or all-new model – is eligible to be selected to its prestigious list of ten winners. When the publication chooses its All-Stars, it looks for greatness wherever it might be: sports cars, small cars, family cars, luxury cars, utility vehicles. Whatever their category, the All-Stars stand above the crowd, which isn't easy to do in these times of keen competition. The 2012 Automobile of the Year and All-Stars are the publication’s answers to the question: What's the best car? Read on to learn why. While you’re at it, click here to check out a photo gallery of this year’s winners.

Provide a Competitive & Affordable Benefits Program for Your Employees
As a dealer responsible for the employment of tens or hundreds of employees and as an individual trying to build an enduring and ongoing business, the current economy and regulatory environment may be keeping you up at night. Fee disclosure requirements for plan sponsors and participants in 401(k) plans are driving a more regulatory and competitive marketplace, and one which requires additional fiduciary oversight of service providers. We are at a point where rising health plan costs and government-mandated reforms have combined to create an increasingly complex health insurance marketplace. So what can you do? Join AIADA and our Affinity Partner, Northwestern Mutual, on January 24 at 11 a.m. (EST) for a free webinar to learn valuable views and strategies to help you stay ahead of the curve on healthcare and find out more about strategically-designed retirement plans to meet your fiduciary requirements. Find out what best practices dealers are using to maintain margins, recruit and retain the best employees and increase their overall savings to benefits plans by ROI. Register now!

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