February 1, 2012

Let Japan Join the Club
This past November, leaders of nine allied Pacific countries announced progress on a Trans-Pacific Partnership (TPP) agreement that will boost trade and investment opportunities in that region. AIADA has always and will always support the expansion of global trade opportunities. So what’s missing from this partnership? Here’s a hint: It’s the third largest economy in the world and one of the biggest manufacturers of goods in the Pacific region. It’s Japan, and it wants to join the TPP but the U.S. is questioning its inclusion. AIADA Chairman Jim Smail writes that like a group of overgrown school yard bullies, the Detroit three don’t want Japan to join their exclusive new club. If you care about this issue and other crucial challenges dealers face you should be an active member in AIADA. Start next week in Las Vegas by joining AIADA, 2012 chairman Ray Mungenast, Lexus’ Mark Templin, and many other industry heavyweights as we continue our Legacy of Leadership and plot out the future for international nameplates in the U.S. Register today for the 42nd Annual Meeting and Luncheon, and stand with AIADA in 2012. Read the rest of Smail’s piece on the importance of global trade and Japan’s inclusion in the TPP here.

VW to Hike Passat Output in Tenn., Add 200 Jobs
Volkswagen AG plans to boost output of the VW Passat at its new plant in Chattanooga, Tenn., by 13 percent and add 200 jobs. According to Automotive News, the automaker will hike production of the redesigned Passat from 31 to 35 cars per hour. VW said the new jobs will be integrated into the plant's current two-shift operation and be filled by full-time Volkswagen employees. The plant is currently staffed with 2,000 Volkswagen employees and an additional 500 workers employed by Aerotek, the automaker's staffing partner. Volkswagen said it planned to hire production positions, supervisors, and engineers. The $1 billion plant opened in 2011 and is the centerpiece of a plan to boost annual U.S. sales of the VW brand to 800,000 by 2018. U.S. sales of the VW brand hit 324,402 last year, up 26 percent from 256,830 in 2010 in an overall market that rose 10 percent. Read more about the plant at AIADA’s website, www.whatisanamericancar.com. For coverage of VW’s plans to boost output and add jobs at its flagship U.S. manufacturing facility, click here.

Cars to Star in Many Super Bowl Ads
Forget the cola wars. Super Bowl XLVI is all about the car wars. USA Today reports that this year's game on Sunday will have more than 14 car-related ads, which will take up nearly two dozen of the 70 30-second ad slots that carried an average sticker price of $3.5 million. With consumers again spending on autos and sales rising, these Big Game advertisers are rolling out big-budget commercials to rival the splashiest of soft drink marketing. In the last few days alone, Super Sunday car advertisers have revealed high-octane commercials that feature celebrities such as Matthew Broderick and Jerry Seinfeld, as well as showing their autos doing extreme stunts. "The economy and the car business are in recovery," says Michelle Krebs, a senior analyst at car research site Edmunds.com. Carmakers have more money to spend on ads, and added incentive after Chrysler, Volkswagen and Chevy wowed viewers with well-received ads last year. They've also learned new tricks, Krebs says. Auto advertisers have been schooled on the value of social media, especially when it comes to sending out teaser videos, as well as full versions of their game-day ads, she says. Click here for more on what to expect from this year’s automotive Super Bowl ads.

Honda Profit Declines 41%
Honda Motor Co. reported a 41 percent drop in net profit for its fiscal third quarter and foresees a sharp fall in profit for the full fiscal year, as the strong yen cuts into its overseas profit and flooding in Thailand dragged on its production recovery after the earthquake in Japan. According to The Wall Street Journal, Honda posted a net profit of ¥47.66 billion ($624.3 million) in the three months ended Dec. 31, down from ¥81.12 billion in the year-earlier quarter. The carmaker now estimates a 60 percent decline in net profit for its fiscal year ending March after. Honda, which aims to restart its Thai plant from late March, now estimates the natural disaster will bring down its global sales by 260,000 vehicles. "[These] are abnormal numbers that we hope to see only this fiscal year," Fumihiko Ike, Honda's chief financial officer, said at a news conference. Honda, banking on new models like the CR-V small sport-utility vehicle, is looking for global sales of more than four million vehicles in the next fiscal year, up at least 27 percent from the 3.150 million it is projecting for this fiscal year, Mr. Ike said. Click here for the latest on Honda’s profit projection.

Car Brands Offering the Deepest Discounts
New-vehicle sales defied the still-sagging economy last year, as pent-up demand, easier and cheaper credit and aggressive marketing helped the industry move 12,778,171 cars and trucks, according to Autodata, which represents a 10.3 percent increase over 2010. The car-shopping website CarWoo.com dug into its database of new-vehicles transaction prices to determine which brands offered buyers the most-generous discounts during 2011, including manufacturers’ incentives and dealers’ markdowns. Forbes reports that not counting pickup truck sales, the brand at the top of the list was Jeep, which lured shoppers into showrooms with an average 17.7 percent price reduction off their models’ sticker prices. And, although Kia has experienced a meteoric rise in recent years based on a well-reviewed string of new and redesigned models, in 2011, buyers averaged a 12.1 percent discount off of its vehicle list prices, according to CarWoo.com figures. Other brands in the top discounts list include Nissan at 15.7 percent, Chrysler at 14.2 percent, Suzuki at 13.9 percent, Ford at 13.4 percent, Buick at 13.2, Dodge and Chevrolet tied at 11.9 percent, and Mitsubishi at 11.7 percent. Click here to read more about the brands that have offered the biggest vehicle discounts. For a photo gallery, click here.

Last Call to Register for AIADA’s 42nd Annual Meeting and Luncheon in Las Vegas
Time is running out to 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 the 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.

Around the Web 
Video: 2013 BMW 4-Series [MotorAuthority]
Driving the 6-Wheeled Covini C6W [Edmunds Inside Line]
Sparks Fly with Honda's Cool New European Civic Ad [Autoblog]
Million Dollar Cars from Scottsdale [CNN Money]