Dealers: Page

FINANCE FIRMS FIRMLY INTO LEASING

Leasing is a powerful driver of the new-vehicle sales boom, helping U.S. dealers move a record 5.8 million new cars and trucks in the first four months of this calendar year.The growing number of vehicle lease providers attests to the power of leasing as a mover of new and used vehicles.DaimlerChrysler Corp.'s sales and marketing vice president Jamie Jameson predicts no early letup in demand with

By Maynard M. Gordon • June 1, 2000

Norway parts strike disrupts car production

European carmakers could decide against renewing contracts with Norwegian parts manufacturers following a six-day nationwide strike early last month. Some 85,000 Norwegian workers interrupted the flow of parts to Ford Motor Co.'s Volvo Car subsidiary, Saab Automobile AB, BMW AG, Porsche AG and Audi AG, among others. Saab, which has five Norwegian suppliers that deliver aluminum and plastic components,

By WARD'S AUTO WORLD STAFF • June 1, 2000

Explore the Trendline➔

Top 5 stories from WardsAuto

Automakers are evaluating their long-term strategies, revisiting their product mix, and approach to both retail and manufacturing approach along the way.

By WardsAuto staff

BE SURE THE FAMILY KNOWS WHAT’S UP

An estate and dealership succession plan often can be a loaded gun waiting to explode. It's a sensitive subject loaded with pyrotechnic emotions, which often lead to hurt feelings, family divisiveness, destructive relationships and the loss of a dream - the dealer's family continuing his legacy.The good news: these problems can be avoided.Recently I was asked by the dealer-operator son of a dealer

By Hugh B. Roberts • May 1, 2000

Rating auto websites: The good, bad and ugly

Just as the mainstream auto dealers are beginning to get past the age-old image of fast-talking, cigar chomping carnies in plaid jackets, they have a new fashion concern to contemplate: are they dressing up their web page in the right suit?An extensive survey of consumers asked to visit manufacturer's websites found that the on-line visitors have little patience for webmastersw who fall behind in

By Jeff Green • May 1, 2000

This gift is for the dealer’s family members

"Gifting" has always been a popular tool for dealership succession planning. Prior to enactment of the Taxpayer Relief Act of 1997, the final tax effect of the transfer was never certain. The IRS could challenge the valuation and assess a higher tax to the dealer's estate. The 1997 Act provided some needed protection in this regard.New relief provision For gifts made after Aug. 5, 1997, the Taxpayer

By Harold DeValk • May 1, 2000

E-GM WILL EXCITE AUTO RE-MARKETING

LAS VEGAS - General Motors Corp. is pla-nning to revolutionize the marketing and distribution of used vehicles, as well as improve customer rela-tions, with its new e-GM program.Richard M. Lee, e-GM's general manager of North American Operations, opened his presentation at the Conference of Automotive Remarketing 2000 with a video of young children explaining how computer literate and Internet savvy

By Tim Keenan • May 1, 2000

AUCTION TEAM OUTLINES STANDARD

LAS VEGAS - Someday all auto auctions and perhaps even the entire auto industry will be using a standardized set of vehicle inspection criteria and processes.A committee of the National Auto Auction Association (NAAA) is working to devise such standards that would eventually streamline and simplify the overall vehicle re-marketing system."We're all looking for inspection information that is accurate,

By Tim Keenan • May 1, 2000

Dealers use MOTORSPORTS to promote THEIR stores

Auto racing's sights, sounds and smells trigger something in people that makes them more in tune to what they drive.And dealers around the country, particularly those located near racing venues, are taking full advantage of such emotional responses.This month, in the Indianapolis area, several dealers are using the excitement generated by the Indy 500 to boost floor traffic and sales."Last May, we

By Tim Keenan • May 1, 2000

Your own used-car warranty can boost goodwill with customers

Why not offer your own in-house warranty on used vehicles? That's what CPA Craig Nelson asks.He points out that the cost and requirements for protecting used cars and trucks is not prohibitive and the dealer generates "greater customer confidence for standing behind the products being sold."The in-house product allows dealers to use the term dealer-certified in advertising and on price signs posted

May 1, 2000

World Omni’s rising star wants bank collection business and more

In taking on her new job as vice president for client services, World Omni's rising star Lisa Wheeler is nothing if not ambitious as she solicits banks and credit unions for loan servicing business."We'd like to sign up enough banks the first year to provide between 300,000 and 400,000 retail customer accounts," says the 39-year-old CEO of World Omni's new CenterOne Financial Services division. "Our

May 1, 2000

PROFITS SHOULD COME FROM ALL OVER

What areas of your dealership produce what percentage of the total gross? The more important question is, which departments generate what percentage of the total departmental net profit, before net additions and deductions?Taking a look at our All-Dealer Benchmark (less Highline) and our average clients, we find the following gross and net profit results by department.To compare yourself in these

By Tony Noland • May 1, 2000

Palo Alto pals co-found dot-com firm to reduce auto auction inefficiencies

Autodaq's executive list reads like an international who's who.CEO Adam Boyden is a British native who worked as a business consultant in China before launching Autodaq, an Internet firm that's plugged into vehicle auction action.Peter Kelly, Autodaq's vice president of operations, is an Irish native who worked in the U.K.Jorge Borbolla, vice president of strategic alliances, got a law degree in Mexico

By Steve Finlay • April 1, 2000

How to face those Internet-savvy customers

In the Academy Award-winning motion picture "Pulp Fiction," Uma Thurman tells John Travolta a joke about a momma, poppa and baby tomato walking down the sidewalk. The baby tomato keeps lagging behind. Finally, the frustrated poppa tomato turns, stomps on the baby tomato and says, "ketchup."Sure it's silly, but there's a message there for any auto dealership owner who thinks he or she can keep doing

By Rob Scher • April 1, 2000

Penske puts UAG back on the track

Despite a takeover by a man with a Midas touch - Roger Penske - and a more than 20% improvement in revenue, UnitedAuto Group Inc. dropped from No. 2 to No. 3 on the Top 100 megadealer list.Although edged out for second place by Asbury Automotive Group - $4.1 billion versus $4.02 billion - UnitedAuto made some important administrative strides during 1999.The most obvious was the April announcement

By Tim Keenan • April 1, 2000

Sonic stores are 1st to sell vehicle collision insurance

Sonic Automotive, Inc., has become the first dealership consolidator to launch a vehicle insurance program, teaming up with Nationwide Insurance as the provider.The consolidator, with 106 dealerships in 13 states, also has reorganized its management team into three geographic divisions, each led by a former dealer or distributor manager.Under the agreement with Nationwide, the Columbus, OH-based insurer

April 1, 2000

TOP CONSOLIDATORS ARE HIGH ON F&I

Publicly owned mega-dealers did their finance and insurance home-work, and made sub-stantial gains on all fronts, including share of gross revenues last year.As more dealerships were added to their holdings, the top consolidators listed on the New York Stock Exchange found their F&I income increases ranging from 30% to 150% over 1998.But, in a trend reflecting more concentration on the contribution

By Maynard M. Gordon • April 1, 2000

AutoNation SOS call goes to ‘dealer guy’ Jackson

FORT LAUDERDALE, FL - The AutoNation ship was heading for an iceberg when the first $20 billion megadealer turned to its new skipper Mike Jackson to help avoid disaster.In fact, the situation was Titanic-like in the eyes of the company's founder and chairman, the visionary billionaire H. Wayne Huizenga. Mr. Huizenga's four-year-old collection of 290 of the highest-volume dealers was bringing in $20.1

By Maynard M. Gordon • April 1, 2000

Oldsmobile: Between a rock and soft face

John Rock she's not.Oldsmobile has had some colorful general managers during its storied history, now past the century mark, but none nearly as macho as John Rock, a self-styled "cowboy" with boots and a salty tongue to match.At around 6'4", he had a commanding presence and backslapping rapport with associates and dealers. You might say he was clearly "one of the boys.""She" is Karen Francis, who

By David Smith • April 1, 2000

PARTS SCANNERS GAIN IN POPULARITY

More automotive retailers today are using bar code scanners in their parts departments as a dependable way to increase profits from their fixed operations.Parts scan technology offers 50% productivity gains through faster, more accurate parts receipting and inventorying. Scanning also can help retailers reduce inventory errors and time waste, as much as 80% for the average retailer.Scanners use laser

By Jim Leman • April 1, 2000

DCS: ONE SYSTEM MAY FINALLY FIT ALL

One of the most irritating technological burrs under dealers' saddles in the past 20 years has been the evolution of dealer-factory comm-unications systems (DCS).This particular evolution has meant frequent changes in the ways that manufacturers ask their dealers to submit warranty claims, vehicle orders, financial statements and a slew of other paperwork.Few would not agree that technology has greatly

By Fred Bonnie • April 1, 2000

Mid-level players find comfort zone

Media and industry analysts love to focus on the biggest of the big, therefore megadealers such as AutoNation, Asbury Automotive Group, UnitedAuto Group, VT Inc., and Sonic Automotive Inc. get most of the attention.But the verdict on the success of the "big guys" - not-withstanding revenues anywhere from $3.3 billion to $20 billion - is still out.There are questions. How big is too big? Are there

By Tim Keenan • April 1, 2000

DEALERS MUST TAKE THE TECH LEAD

EVEN IF YOU DON'T SELL MANY VEHICLES OVER THE Internet, it's creating an additional challenge to your organization: how to satisfy the "Internet-informed" customer who comes to your showroom.As my company began to address this challenge with our client-dealers, we uncovered an internal disconnect. As much as dealers want a successful strategy for satisfying this new type of consumer, sales managers

By Mark Rikess • April 1, 2000

Platforms up Asbury to 2nd

TAMPA - The building-block strategy of growing existing platforms has worked "like a charm" for the Asbury Automotive Group, which leaped into second place on the Ward's Dealer Business list of the Top 100 megadealers in 1999 with $4.1 billion in gross revenues.The privately owned Asbury, based in Berwyn, PA, finished runner-up behind AutoNation, Inc., and slightly ahead of United Auto Group at year-end

By Maynard M. Gordon • April 1, 2000

MyCarPage.com connects dealers to customers

MyCarPage.com offer a personalized web page for each of a dealer's customers. It also establishes a standard means to capture customer e-mail addresses to begin target marketing to consumers.The service promises dealers increased revenue as the ongoing communications builds customer satisfaction.It offers features such as e-mail service reminders and recall information, on-line service appointments,

March 1, 2000

“I’m the luckiest guy in the world”

Chairman has fond boyhood memories of Chicago Auto Show Bill Stasek remembers going to the Chicago Auto Show as a kid, awed by the wonderful world of cars.He also has boyhood memories of hanging around the dealership where his father worked in the service department and body shop. "I remember thinking what a great business a car dealership is," he says.Now Mr. Stasek owns his own dealership, Bill

By Steve Finlay • March 1, 2000