Operations: Page 227


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    Range Rover Jr.

    Consolidating production of the Jaguar X-Type and the next-generation Land Rover Freelander heralds the arrival of a baby Range Rover, Ward's learns. But the new vehicle won't mitigate 1,100 job losses at Land Rover's Solihull Assembly Plant in West Midlands, U.K., says Amicus, the union representing affected workers. Amicus resents Land Rover's announcement that it will build the next-generation

    By Eric Mayne • Sept. 1, 2003
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    Lights Out! But Dealers Go Largely Unscathed

    Dealers breathed a sigh of relief after last month's big power blackout, escaping serious damage and losses in metro markets most affected Cleveland, Detroit and New York City. In New York, where many dealerships were looted and vandalized during a power outage in 1977 (Ace Pontiac in the Bronx had more than 30 cars stolen off its lot), many dealers posted guards to prevent a reoccurrence. Civility

    By Mac Grodon • Sept. 1, 2003
  • Robots in action on the new line at Toyota Kentucky as future Camrys seamlessly roll through the production process. Explore the Trendline
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    Trendline

    Automotive Manufacturing

    Production strategies are changing rapidly as tariffs and shifts in consumer buying patterns affect the industry.

    By WardsAuto staff
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    Steps in Right Direction

    We should tip our hats to whomever developed the great steps of the sale. They give us timeless guidelines to tailor our presentations and focus on the needs and desires of our dealership customers. Ultimately, the steps are sales-training solutions that encourage professional excellence and superior customer service. The steps lead to success, yours and the dealership's. They're tailored to your

    By RON COXSOM • Sept. 1, 2003
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    IBM-bitious

    Forecasting massive growth for vehicle telematics by decade's end, IBM Corp. predicts future wireless innovations will enable drivers to send and receive far more automated information. These systems most likely will be digital instead of analog and will seamlessly incorporate cell phones, personal digital assistants and other devices into the vehicle probably via a wireless Bluetooth interface. IBM

    Aug. 1, 2003
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    Ferrari 2+2 Headed for Detroit Debut

    Ferrari SpA will unveil its replacement for the 456 in Detroit in January. There had been speculation the car would be shown first at the Frankfurt or Tokyo auto shows, but Ferrari has decided to make its splash in North America instead. Styling for the new 2+2 model, likely to be called the Ferrari 460, was performed by Italian design house Pininfarina SpA, the first coachbuilder to pen a 2+2 for

    Aug. 1, 2003
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    Reduce Used-Car Stocks

    August is one of the best sales months of the year. It's the month manufacturers push hard with incentives and advertising. August, due to incoming next model-year inventory, is when dealers are self-pressured and willing to maximize their advertising dollars to go for maximum customer traffic, volume and potentially strong net profits. August 2003 has five weekends. It should be a great new-vehicle

    By Tony Noland • Aug. 1, 2003
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    Heavy Metals

    Efforts by auto makers to eliminate heavy metals, such as lead and mercury, are nearly complete just in time for new European legislation banning use of the potentially dangerous materials. Although there are some exemptions, European Union countries in July began barring sales of vehicles that contain the four main heavy metals. In addition to mercury and lead, the other heavy metals commonly used

    By Brian Corbett • Aug. 1, 2003
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    Detroit’s Bitter Pill

    About this time every three or four years, when United Auto Workers contracts are renegotiated, domestic auto makers must take stock of their health. And like hypochondriacs, their diagnoses always are grim. This time it's obesity and possible hemorrhaging, brought on by periodic vision loss. Who's to blame? According to some, if the Big Three were the city of New York in 1908, the UAW would be Typhoid

    By Eric Mayne, Brian Corbett, Kevin Kelly • July 1, 2003
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    Big Gun in Pickup Showdown

    KINGMAN, AZ The word carried a decidedly different connotation in this part of the country 125 years ago. It meant the noun, not the adjective. And except for Bat Masterson, the Old West was a lonely place for any man saddled with that label. Sporting a debonair derby, TV's Masterson (played by Gene Barry from 1958-1961) walked softly and carried an elegant cane with which he deftly dispatched every

    By Eric Mayne • July 1, 2003
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    Salesman’s Wife Laments

    A Georgia woman, Melanie Knapp, asked if I know of anyone else who's gone through what her husband has as a car salesman. My answer is no, thank goodness, and I hope there aren't too many people who have. Here's her story in her own words: In April of 2001, my husband lost his job in the broadcasting industry. He tried fervently to find another position, but couldn't. As a stopgap measure, he answered

    By July 1, 2003
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    F&I Light Keeps Burning

    Some industry news is bad enough to make many dealers want to switch off the store lights and go home. NADA's average dealership profile indicates that total dealership expenses as a percent of total sales increased from 11.2% to 11.4% in 2002. Net profit before taxes as a percent of total sales declined from 2% to 1.9% in 2002. Sales are expected to soften (Ward's forecasts 2003 U.S. vehicle sales

    By ANDREW J. BLAZSANYIK • July 1, 2003
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    AWD Popularity Soars

    Auto makers are seriously eyeing all-wheel drive as a feature that can both fill a void in buyer wants and improve profit margins. Four- and all-wheel drive already have been growing strongly. At the current rate of increase, vehicles sold with 4WD/AWD capability should hit 40% by the end of the decade. It could reach as high as 50% by the middle of the next decade. The 1990s surge in sales of SUVs,

    By Haig Stoddard • July 1, 2003
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    Smith Joins Journalism Hall of Fame

    WAW's own David C. Smith, editor-at-large, will be inducted into the Journalism Hall of Fame at Central Michigan University in Mount Pleasant, MI. Smith, one of five inductees this year, attended CMU between 1954 and 1956 before leaving to attend the University of Michigan. I was surprised because I'm not a graduate of Central, but I'm honored and delighted, Smith says. To have someone who's not a

    July 1, 2003
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    Critics, Eat Crow

    I don't know how Richard Nixon could have won. I don't know anybody who voted for him. That's what legendary New York film critic Pauline Kael reportedly said when Richard Nixon won the 1972 presidential election in one of the biggest landslides in history. Journalist and media critic Bernard Goldberg likes to use the quote to illustrate just how insular the media can be. It rang in my ears when I

    By June 1, 2003
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    Seeking Delicate Balance

    Up to 70% of all traffic fatalities involve alcohol. Because most alcohol-related traffic deaths occur between midnight and 3 a.m., it's apparent that the nightlife segments of American motorists are the most treacherous. The problem is dependence on alcohol for a good time and the automobile for transportation. Because neither of those dependencies will likely go away soon, solutions must be sought

    By Nat Shulman • June 1, 2003
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    The Art of Prospecting

    My first sales manager asked me to list all the people I knew, then contact them and ask if they or anyone they knew were in the market for a new vehicle. I was worried that the next thing he was going to get me to do was go door to door. I thought my job description was to answer incoming sales calls and talk to walk-in customers. Customer prospecting? Forget it. Most of us hate it. But manufacturers

    By DARIN B. GEORGE • June 1, 2003
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    SEMA Chief Speaks Out

    I'm responding to Gary Naples' column, Debunking Those Myths (Feb. '03). He examined why dealers should bother with OEM accessories when comparable aftermarket brands can be had for less cost to the dealership. He's correct in noting that dealers need a strategy to successfully market OEM accessories. He also accurately identified many of the core elements of such a strategy. However, he perpetuated

    By CHRISTOPHER J. KERSTING • June 1, 2003
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    Isuzu’s Turnaround

    NEW YORK Isuzu Motors America Inc. President J. Terry Maloney came to the New York auto show in April with something to prove. Isuzu's problems in the U.S. and globally have caused the media to begin ringing the death knell prompting widespread belief that the auto maker soon will depart the U.S. But Maloney says Isuzu isn't leaving a point he emphasizes with future-product detail stretching to the

    By KATHERINE ZACHARY • June 1, 2003
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    Showing How It’s Done

    He's a seasoned F&I guy and he's taken the class before, but Dave Redmond is back at one of Resource Training's menu-selling course. Redmond, a veteran F&I manager at Terry Shaver Pontiac, Highland, IN, returned for a refresher in what he says is an approach that needs fine-tuning because it's such a powerful sales tool. With him were 15 other students for training at the Glenview, IL headquarters

    By Mac Gordon • June 1, 2003
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    Shrinking Product Development Time

    A few years ago, if you asked an auto maker about shrinking the amount of time it takes to bring a new product to market, you were treated to a demonstration of dazzling new digital technologies. There were tours of virtual-reality studios that allow computer-generated designs of new cars and trucks to be viewed life-size and in 3-D with the aid of special glasses. They would take you to a darkened

    By June 1, 2003
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    Fanuc Shaves Paint Booth Size, Cost

    The equipment and robots necessary for a quality car-body paint job don't come cheap. It's generally assumed the paint shop is the most expensive component of a vehicle assembly plant. Fanuc Robotics America Inc. in Rochester Hills, MI, says it can ease some of that pain. Its P-500 painting system reduces the number of spray applicators and promises better paint transfer efficiency, while taking up

    June 1, 2003
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    Menu Selling: Fast, Effective

    A big benefit of F&I menu selling is that it keeps time-conscious customers happy. It's gained popularity after the older and slower way of presenting F&I products more and more became a customer turn-off. There's a direct correlation: the faster the F&I presentation, the higher the consumer satisfaction, and vice versa, says Mike Casey, vice president of sales for JM&A. He adds, We developed our

    By May 1, 2003
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    Former Ward’s Chief Dies

    Roger F. Kelley, president and publisher of Ward's Communications from 1970 to 1984, died April 21 in Naples, FL, after a short illness. He was 82. Known internally as Mr. Kelley or Kelley co-owned Ward's with his late brother, Phillip. They sold the company to the Toronto-based Thomson Group in 1981, and he retired three years later. Intertec Publishing, later named Primedia Business Magazines and

    By David C. Smith • May 1, 2003
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    Crucial Capacity?

    Excess production capacity in North America and the rest of the world often is cited as one of the biggest problems facing the auto industry, particularly the U.S. Big Three. But as strange as it sounds, North American manufacturers could end up needing nearly all of their current annual straight time production of 18.2 million in the not-to-distant future, based on sales projections and long-term

    By Haig Stoddard • May 1, 2003
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    Upselling is Win-Win

    Dealerships can increase their parts and service department profits by making sure staffers are attuned to additional sales opportunities. Personnel should be on the lookout for incremental sales or upsells. They come in two forms: suggested and needed. Suggested up-sells are items that complement the purchase and are ones the customer quite likely wants, but had not thought of buying. Possibly the

    By DAVE SKROBOT • May 1, 2003