Redefining ‘The Boss' Increases Store's Sales
El Patronn wants to make it happen. Behind his trademark eyewear, El Patronn strikes poses on billboards in Brooklyn in New York City and can be viewed regularly on his YouTube channel called El Patronn Show. He's flashy, stylized and highly recognizable. But most of all, El Patronn is a successful marketing tool born of the imagination of Brooklyn Mitsubishi managing partner Rudy Tremenio, who uses the moniker to drive up sales and profits and improve customer retention. "Whatever I say, I'm going to do," Tremenio told Automotive News. "They come in asking for El Patronn, so I deliver." A 15-year automotive industry veteran, Tremenio earned his nickname and self-given title, a slight amendment to the Spanish term meaning "the boss." As a marketing tool, El Patronn is a success. His notoriety gathers more attention from customers than a one-time visit from a celebrity, and it costs the dealership far less. For more on El Patronn, his one million social media followers, and the new boundaries he put in the workplace to drive sales, click here.
Subaru First-Quarter Profit Climbs 48% on Strong U.S. SUV Sales
Subaru Corp reported a 48 percent increase in first-quarter operating profit on Monday as global sales grew, led by demand for the Ascent and Forester SUVs in the United States. According to Reuters, sales in the United States, by far Subaru’s biggest market, rose 20 percent. It accounts for about 60 percent of Subaru’s overall sales. The maker of Legacy sedans and Forester SUV crossovers maintained its forecast for operating income at 260 billion yen for the year to March 2020, up 45 percent from a year earlier. The previous fiscal year was marred by a string of recalls, production stoppages and inspection improprieties that cut the automaker’s earnings in half. Subaru reiterated its annual forecast for global sales of 1.06 million vehicles. It also left unchanged its assumption that the yen will average 110 against the dollar over the course of the fiscal year, versus 111 last year. A stronger currency eats into profits because cars exported from Japan become more expensive and the value of earnings made overseas decreases. For more on Subaru’s outlook, click here.
Honda Reduces Production of Sedans as U.S. Buyers Favor Bigger Vehicles
Honda Motor Co. said Friday it was suspending one of two shifts on a production line for Accords and three other models at its plant in Marysville, Ohio. The Wall Street Journal reports that Honda said it wasn’t planning any layoffs as a result of the slowdown. A second line at the factory that builds Accords will remain unchanged at two shifts. In early 2018, Honda said it hoped an all-new Accord sedan would allow it to gain customers as its rivals in Detroit moved away from sedans. While the sedan market is shrinking, five million are still sold in the U.S. every year, and Honda saw an opportunity to grab market share. The car was a hit with reviewers, but less so with buyers. A problem was the price. People who did buy sedans were often in the market for a discount, which Honda was reluctant to offer. “Basically, we have been trying not to get caught up in a price-cutting race,” said Seiji Kuraishi, Honda’s chief operating officer. The company will slash production to prevent Accords from building up on dealer lots, he said. For more on Honda’s sedan plan, and how it contrasts with Toyota’s strategy, click here.
The Reasons Why Millennials Aren't As Car Crazed As Baby Boomers, And How Self-Driving Cars Fit In
The automotive industry is not very happy with Millennials and Gen Z. According to Forbes, it seems that in comparison to the Baby Boomers and Gen X, the latest up-and-coming generations are less car crazed and thus creating great difficulties and consternation for those that are making automobiles. Purchases of cars by the younger set are dropping precipitously. Survey after survey shows that the latest generations don’t put car ownership particularly high on their list of things to do. Perhaps worse too is that those potential drivers aren’t even pursuing getting driver’s licenses as earnestly as prior generations, meaning that the pipeline of drivers that would want to buy a car is not flowing in the same guaranteed manner as in the past. Chatting with Millennials and Gen Z often reveals that they actually eschew driving. If they can avoid having to drive a car, they will happily and eagerly find a means around doing so. To contrast this viewpoint with those of the previous generations, and to learn more about the mindset change about cars, click here.
‘I’m Only Kidding’: Trump Riffs About Adding German Car Tariffs
President Donald Trump ribbed a European Union trade delegation at the White House after announcing a deal Friday to increase American beef exports, joking that he was poised to impose crippling tariffs on German cars. Bloomberg reports that after the beef deal was announced and then signed, Trump returned to the podium. “We’re working on a deal where the European Union will agree to pay a 25 percent tariff on all Mercedes-Benzes, BMWs coming into our nation, so we appreciate that,” said Trump. “I’m only kidding,” he quickly added. Trump has repeatedly threatened U.S. tariffs on German cars amid disputes over trade terms, a new gas pipeline to Russia, and military spending. After delivering his punchline Friday in the Roosevelt Room of the White House, Trump gestured toward the European delegation, smiling, and said: “They started to get a little bit worried.” Then he walked out. Just over an hour later, Trump addressed reporters about trade with the EU as he left the White House for his resort in Bedminster, New Jersey: “Auto tariffs are never off the table,” he said. “If I don’t get what I want, I’ll have no choice but maybe to do that.” For more on tariffs, click here.
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There Are Still Way Too Many 2018 Model Year Cars Stuck On Dealer Lots [Jalopnik]
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