Feb. 19, 2019
The 10 Least Popular Cars in America
For every F-150, Camry or CR-V, there’s a vehicle like the Fiat 124 Spider piling up like cordwood in August. According to the Detroit News, while Fiat had grand hopes for this car to burnish its image in America, dealers have a 461-day supply, seven-and-a-half times more than the 60-day norm. Contrast this with Subaru, with a 42-day supply, or Mercedes-Benz with a 48-day supply. At the beginning of February, 4,015,500 unsold vehicles remained in dealer inventory, an 88-day supply. Of those, these are the 10 least popular vehicles in America, ones that were invited to a party that no one’s attending. Included on the list is the Dodge Viper with 425-day supply and the 2016 Dodge Dart Limited with a 358-day supply. If you want to know how unpopular the Dodge Dart was, consider this: Production ended in 2016. To discover what other models made the list of the top ten least popular vehicles in America, click here.
Auto Dealers Association Slams ‘Bogus’ National Security Report
Dealers of imported automobiles are still waiting to see how an investigation by the U.S. Department of Commerce will affect their business. Business Journal Daily reported yesterday that the investigation under Section 232 of the Trade Expansion Act, which was launched in May 2018, looks at whether imported cars and auto parts represent a national security threat. The department submitted its findings to the White House late Sunday night, but the report has not been made public, “highlighting, once again, the bogus nature of this investigation into America’s 9,600 international nameplate dealership franchises, their 578,000 American employees, and millions of customers,” said American International Automobile Dealers Association President and CEO Cody Lusk in a statement. Click here for AIADA’s full response.
Click here for NBC’s report on the investigation, and comments from industry leaders.
Click here for Bloomberg’s article on how the E.U. would retaliate on U.S. Tariffs.
Want to add your voice to the growing dealer effort against auto tariffs? Register for AIADA’s April D.C. Fly-In today.
Growing Backlash Against Stair-Steps
New Jersey dealer Steve Kalafer lost $2,000 on every new Infiniti he sold in January as he chased a stair-step incentive number that his dealership only partially reached. The new-vehicle losses overwhelmed the profits made in the rest of the business, pushing his Flemington Infiniti store into the red for the month. And, according to Automotive News, it goes beyond Infiniti. Kalafer's January experience is emblematic of challenges caused by stair-step targets from an array of automakers. The programs are brand destroyers that confuse and anger customers, Kalafer and other dealers say, and managing them is an accelerating problem for retailers. "It's a hamster wheel. That's all it is," Kalafer said. "Dealers are getting on the hamster wheel and just turning and churning and turning and turning." And with concern growing that stair-step objectives will be tougher to hit in a shrinking new-vehicle market in 2019, more dealers say they are giving up on chasing the automaker bogeys. Kalafer is working to start an organization to help dealers try to fight back. For the full story, including how other delaers and automakers are responding to his efforts, click here.
Makeovers Enhance Nissan’s Premium Murano and Maxima
Nissan’s flagship Maxima sedan and Murano CUV get midcycle makeovers, receiving styling updates along with a host of electronic and trim upgrades. The refreshes are important for Nissan’s premium car and CUV offerings that according to Wards Intelligence data collectively accounted for 125,884 deliveries in 2018. That included an 8.9 percent uptick for the Murano, offsetting a 37.4 percent swoon for the Maxima amid a market rapidly shifting away from sedans to CUVs. Out on the road, the Maxima makes its sport sedan intentions evident in excellent handling and a pleasingly racy exhaust accompaniment. Click here to see it. Though heavier and taller, the Murano also holds the road well while quieting bumps for a smooth and stable ride. The Maxima is offered in five trims levels ranging from the base S model starting at $33,950 to the Platinum checking in at $41,440, while the Murano goes with four levels from the front-drive S starting at $31,270 to the all-wheel-drive Platinum trim at $45,130. For more, click here.
For Many Small Family Dealers, it's ‘Grow or Go'
Konner Chevrolet was barely a year away from celebrating a century in business. The family-owned dealership, which opened in 1919, had its fourth generation working at the New Jersey store, and operations were doing well. But, reports Automotive News, in October 2017, the Konners decided to celebrate a different milestone: the sale of the store. Running the dealership felt like owning a local hardware store going up against Home Depot, said Dean Konner, 64, who owned the store with brothers Al and Irving. Doable, but difficult. "Today, to be a family-run dealership, the industry and manufacturer, it's not so much about the people. It's about the numbers," said Konner, grandson of the founder. "What happened is these bigger guys would undercut your price. A little guy can't survive." It's a conclusion more and more small, family-owned dealerships are reaching as they look at an industry that's being transformed by consolidation, technology, challenges to the ownership model and increasing capital demands. For the full story, click here.
Around the Web
Land Rover Takes An Urban Detour In Newest Marketing Campaign [Ad Age]
Compact Convertible SUVs Of the '90s: A Retrospective [Jalopnik]
Hyundai Santa Cruz Pickup 'Will Be a Lot more Distinctive' than the Concept [AutoBlog]
