Dealers: Page 127

Next Stop Unionville

Last July, members of Local 1101 of the International Assn. of Machinists and Aerospace Workers (IAM) marched into a dealership showroom in northern California. Bullhorn in hand, the district director threatened a strike. The dealer told him to go ahead. The technicians filed outside and began picketing. The dealer agreed to begin negotiations a few minutes later. It's a tactic, known as marching,

By Cliff Banks • Feb. 1, 2004

Dentist Turned Dealer

Twenty years ago, Charley Smith was a dentist with a private practice in Hobbs, NM, pop. 30,000. Today, he's the incoming chairman of the National Automobile Dealers Assn. It started because of a strong sense of loyalty to employees at his father-in-law's dealership. My career path isn't exactly typical for most dealers, he laughs. He graduated from college with a major in biology and a minor in chemistry,

By Cliff Banks • Feb. 1, 2004

Explore the Trendline➔

Artificial Intelligence

Automakers and dealers alike are increasingly seeing the use case for AI within their operations. Explore some use cases in this trendline.

By WardsAuto staff

How to Avoid Trouble

At least once a year, a news outlet does a story about how car dealers customers. It is generally a cheap and easy ratings grabber. And because of their past reputations, dealers can be easy targets. Usually the investigative work of these local reporters focuses on why paint protection and undercoating may not be worth the $995 charged by the dealer, or shows the customer how to learn the invoice

By BRYAN DORFLER • Feb. 1, 2004

Firm’s Fixed Operations Software Drills into Data

Dynatron Software, a provider of fixed operations software, now offers a web-based version of an application that tracks service and parts department performance and profits. Called EBIS (Executive Business Intelligence Software) the software provides dealerships access to fixed operations data and offers the ability to drill down into what's selling and who's selling what. Dynatron President Doug

Feb. 1, 2004

Auction Sights, Sounds Online

Too busy to get to the auto auction? An alternative may be Manheim Auction's Simulcast auction. Launched in 2003, it allows dealers, from their desks, to bid on vehicles passing through auction lanes. Manheim has licensed streaming audio and video technology that lets dealers at their computer terminals see in real time the entire lane as well as view and hear the bidding provided their computers

By Cliff Banks • Feb. 1, 2004

Stomp Out the F&I Fires

Sonic Automotive Inc. sounded like it had found religion in 2002 after some of its dealerships were stung by finance & insurance charges. The nation's third-largest dealership chain responded to a Florida state attorney general's investigation by revamping personnel and practices at all of its dealerships. Sonic ended up firing 200 staffers, most of them in F&I and sales positions. We have instituted

By Steve Finlay • Feb. 1, 2004

Dealership Hiring Increases

U.S. auto dealership hiring in 2004 is expected to increase a second year in a row, predicts AutoEmploy.com, a database of automotive industry jobs. Physically larger dealerships, new car brands such as Scion and Smart and dealers' expansion into retailing new product lines are three reasons behind rising car dealer hiring, says Randall K. Skolnik, Executive Vice President and founder of Boca Raton,

Feb. 1, 2004

GMAC Pushes Certification

Being certified as an F&I professional is now a critical priority for GMAC. We are urging our dealer business managers to become both GM-certified and and certified with the Association of F&I Professionals, says GMAC education director Louis S. Carrio, Jr. Dealers get a tuition discount for the double certification but, more important, certification means greater trust by customers because it underscores

Jan. 1, 2004

If the Fax Don’t Fit, Then Can You Acquit?

Johnny Cochran, famous for his defense in the O.J. Simpson murder trial, is now taking on Carfax Inc. His Los Angeles-based law firm filed a class-action lawsuit in the Circuit Court of Shelby, County, TN, against Carfax and its owner, R.L. Polk and Co. The lawsuit allege Carfax exaggerates claims for a database service it sells to consumers and dealers that tracks whether a used-car has been involved

By Cliff Banks • Jan. 1, 2004

Enjoying the Journey

Were he not a car dealer, Rob Gregory has what it takes to be a motivational speaker glib delivery, expressive body language, compelling content. But he says it's hard to imagine himself as anything but a dealer. He's become more than that. He's a dealer with a vision. I was the kid in the neighborhood who fixed old bikes and sold them, says the native of Grand Forks, ND, where his father was a newspaper

By Steve Finlay • Jan. 1, 2004

What Don’t They Know?

I'm writing this after attending a J.D. Power and Associates International Roundtable in Los Angeles. Earlier, a column in The Wall Street Journal written by J.D. Power III, chairman of J.D. Power and Associates, triggered arguments, rebuttals and accusations from car dealers, manufacturers and others in the industry. While Power attempted to clarify his thoughts with a follow-up column, the controversy

By Don Ray • Jan. 1, 2004

Porsche Opts for Regional Marketing

Porsche Cars North America Inc. plans to restructure its operations and boost spending by 15% in the new year, as it shifts to a more regional approach to marketing. The auto maker also plans to revise its field-support organization to better address dealer and customer needs, with plans to add 50 employees. PCNA expects to double sales within the next few years. We will make a major change in our

Jan. 1, 2004

Chrome Debuts Used-Car Configurator

New on the market is Chrome Pre-Owned, a used-vehicle configuration and valuation tool for the web. It combines Chrome Systems Corp.'s configuration technology with used values from NADAguides, giving auto buyers and sellers the capability to research prices and used-vehicle values online. It integrates with Chrome Carbook, a new-vehicle configurator and pricing tool. Chrome and NADAguides are partnering

Jan. 1, 2004

Parts Selling Hits the Internet

It's a question that plagues parts managers: What to do with those obsolete and slow-selling parts? Inventory that sits unsold costs the dealer money. The problem is becoming harder to manage as parts today have a shorter shelf life. A manager who maintains a 5% parts obsolescence rate is doing well. Some parts managers are turning to the Internet to develop another sales channel for slow-selling

By Cliff Banks • Jan. 1, 2004

Dear Diary

A 56-year-old woman accused of as many as 175 new vehicles at 10 metro Detroit dealerships, kept a diary of those exploits and others, including the stalking and threatening of a neighbor, say police. Marian Bryant of upscale West Bloomfield Township, MI, is in jail on bonds totaling $700,000. The car paint scratchings caused $100,000 in damages to dealership inventories. She seems to have a problem

Jan. 1, 2004

Pride of New Jersey

Shau-wai Lam, president and CEO of the DCH Auto Group, will represent New Jersey as a 2004 Time Magazine Quality Dealer Award winner. The program honors outstanding franchised new-car dealers for exceptional performance in their dealership combined with distinguished community service. This award is made possible only with the tremendous support of all of my team members, says Lam, whose expanding

Jan. 1, 2004

Longer Loans Here to Stay

With used vehicles battered from declining residual values, especially on domestic brands, dealership F&I managers are seeing opportunities for new-car loans of up to eight years long. Extended loans beyond six years have begun a growth cycle outside Big 3 captive lenders, which cap their loans at six years. The Consumer Bankers Association estimates that six-year loans have risen to 28% of the portfolio

By Mac Gordon • Dec. 1, 2003

Is It 2004 Or 1994?

Compare the automotive retail industry to what it was 10 years ago and not much has changed. Heading into the National Automobile Dealers Assn. convention in San Francisco in 1994, little did dealers know they would be grappling with some of the same issues heading into the 2004 convention. There was talk of sluggish sales, although, 1994, with slightly more than 15 million light vehicle sales, exceeded

By Cliff Banks • Dec. 1, 2003

Cars.com, Kelley Form Used-car Partnership

Cars.com will be the sole provider of used car listings on Kelley Blue Book's (kbb.com) 'Blue Book Classifieds' and Buy Used channels beginning in January. Also, as part of the multi-year agreement, Kelley Blue Book will become the exclusive provider of used vehicle value information on Cars.com and its co-branded affiliate sites. Dealers and private party sellers will be able to obtain Blue Book

By Cliff Banks • Dec. 1, 2003

How Retailing Got Hard

There's always been an ebb and flow to the retail car business. We feast when our manufacturers come out with winner product in just enough supply to keep margins fat with just enough volume to make advertising worthwhile. Famine follows as quickly as our manufacturers' notice our handicaps dropping, yachts lengthening and the bezels on our Rolexes sparkling more than a Las Vegas show girl's costume.

By Peter Brandow • Dec. 1, 2003

Privacy Questions to Ask

As privacy laws become a factor in daily business, dealers often ask, How do I comply? But asking that poses a risk. You might get the wrong answer and end up with a compliance program tailored to fit someone else's dealership. One size does not fit all. The size, scope, and methods of your business affect how you should comply. That flexibility factor is explicitly acknowledged in the Gramm-Leach-Bliley

By DAVE STAMPLEY • Dec. 1, 2003

Dealers to J.D.: Wrong!

LAS VEGAS Franchised car dealers and research company J.D. Power and Associates are at odds after a curious commentary written by company founder Dave Power III appeared in The Wall Street Journal. In the Oct. 28 column, Power blasts the current automotive retail franchise system, saying it's overly restrictive and adds as much as 30% to the base cost of a vehicle. The current system hardly serves

By Cliff Banks • Dec. 1, 2003

Dealer Unsatisfaction

DETROIT As a Florida auto dealer, many of Alan Starling's customers are retirees, people who are in no hurry when buying a car. A lot of them will spend the whole day with us at the dealership, says Starling, chairman of the National Automobile Dealers Assn. That's fine with us. Sometimes we buy them lunch. But such hospitality can reap unintended negative consequences if, on an auto maker's customer

By Steve Finlay • Nov. 1, 2003

Certified to the Rescue

Brisk certified used-car deliveries are giving a needed boost to the automotive remarketing industry that's seen prices and sales soften as a result of generous incentives auto makers have offered going on two years now. Most major dealer groups report increased used-car sales for the first half of 2003 compared to same-time 2002. Certified programs are credited for the increase. Our used-car sales

By Mac Gordon • Nov. 1, 2003

Calling All Car Leads

While the technology boom has changed many aspects of running a successful dealership, two factors remain constant: The telephone continues to be the dealership's greatest source of prospect leads. Dollars available to spend on advertising and marketing remain limited. There's a direct correlation between the two: advertising and marketing dollars are spent to generate leads, and a majority of these

By IAN STEYN • Nov. 1, 2003