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Runkle Starts New Career

Don Runkle retired as vice chairman of Delphi Corp. June 30, but he already is moving ahead in a new career. Runkle tells Ward's he is working with private equity groups seeking acquisitions in many industries, including automotive. We've put in some bids, but the numbers have to add up from a production and technical standpoint, he says. Runkle turned 60 in June and says that when he was passed over

Sept. 1, 2005

Road Rage: Increasingly All About Space

Nearly 50% of surveyed American drivers say they were on the receiving end of rude gestures and verbal abuse in the past year. That topped a list of anti-social driving behaviors, ranging from persistent flashing of headlights to physical assault, although only 2% of motorists surveyed by the research firm Synovate say they were in incidents where confrontations got ugly and someone physically got

Sept. 1, 2005

Lesson No. 1: It’s a Tough Job

Pitfalls of selling cars online include customers' quick access to invoice prices and the ease with which they can shop dealerships against each other. But that doesn't mean Internet sales people should be meek, says Corey Mosley, president and founder of the Mosley Automotive Group, a New Jersey training firm. We know Internet selling is twice as hard as selling in the showroom, he says. It's less

By Cliff Banks • Sept. 1, 2005

Fall Shakeout

The auto show season kicks off this month in Frankfurt, and it will be followed in rapid succession by the biannual October confab in Tokyo and the Detroit show in January. Plenty of product and business news is expected at Frankfurt, where Europe's auto makers typically pull out the stops at what is the continent's largest show. Auto makers plan several significant product unveilings, but Frankfurt

By Ward's Staff • Sept. 1, 2005

Grand Theft Auto Design

EARBORN, MI Video games such as Grand Theft Auto draw criticism in some circles for sexual and violent content, but the head of a design school says their visual style will influence future vehicle designs. Young car designers are taking cues from outr designers of video games, College for Creative Studies President Richard Rogers says at a J.D. Power and Associates roundtable here. The aesthetics

By Steve Finlay • Sept. 1, 2005

Pampers, Pepsi and Tata?

TRAVERSE CITY, MI – Could consumers someday buy vehicles where they buy toiletries, clothes and groceries? Cuneyt Oge, director-Atlantic region aerospace, automotive, industrial and transportation for PRTM, predicts Wal-Mart one day may sell a low-priced Indian car “next to tires and batteries.” Oge, speaking at the Management Briefing Seminars here, says it’s possible the huge discount retailer could

By Christie Schweinsberg • Aug. 8, 2005

Delphi’s Runkle Starts New Career

TRAVERSE CITY, MI – Don Runkle retired as vice chairman of Delphi Corp. June 30, but he already is moving ahead in a new career. During a hallway interview at the Management Briefing Seminars here, Runkle says he is working with private equity (leveraged buyout) groups seeking acquisitions in a variety of industries including automotive, medical and energy, where they may need operating people. “We've

By David C. Smith • Aug. 5, 2005

Drive-by-Wire Heading Back Into Spotlight

TRAVERSE CITY, MI After flying under media radar for the past several years, so-called drive-by-wire technology likely will be back in the spotlight this fall, thanks to SKF Automotive Div. North America. In an interview at the Management Briefing Seminars here, George Dettloff, president of SKF Automotive Div. North America, says a concept car called Novanta currently being shown off at various shows

By Drew Winter • Aug. 4, 2005

How Much Is Just Enough?

Building a new facility is usually a good investment; dealers typically see a 15% increase in sales after relocating to a new facility. However, you need to make some careful projections to determine the scope of your project. If you overbuild, the high rent expense will put an unnecessary burden on your dealership. If you build too small, you will have capacity challenges from day one. So what facility

By Steve Corle and Matt Gruss • Aug. 1, 2005

Cleared for Takeoff

Myth: It is a core responsibility of leaders to motivate their people. Dynamic leaders can motivate almost anyone to boost professional discipline and performance. Reality: Motivation is largely an individual phenomenon. Each individual brings his or her own measure of drive. This drive is, for the most part, a function of both genetics and upbringing (nature and nurture). Leaders cannot give people

By Bob Kamm • Aug. 1, 2005

It’s a New Game for Cars.com

It took longer than he would have liked, but Cars.com President Mitch Golub has added an online new-car sales lead generator, with the acquisition of NewCars.com. Started in 1996, NewCars.com is a new-vehicle sales and lead generator that primarily wholesales Internet leads to other third-party lead providers and manufacturers. Only in the last six months has the company turned its attention to the

By Cliff Banks • Aug. 1, 2005

The Right Dealership Design

Build it and they will come. Manufacturers love to say that when they launch new facility designs for their dealers, a common event in today's automotive environment. Yet despite the promise of new sales, for dealers facility replacements and upgrades mean risks, significant investments and disruptions of business during construction work that can seem to last forever. Such projects require a certain

By Cliff Banks • Aug. 1, 2005

Yippie, We Got a Problem!

Maritz Research learned something intriguing during a survey of dealership customers: problems, not perfection, can lead to greater dealership loyalty if the problems are handled deftly and solved swiftly. Consequently, Maritz developed Customer Connect, a program that alerts dealers of dissatisfied sales or service customers within 24 hours, and allows a fast resolution. Maritz says more than one-third

By Steve Finlay • July 1, 2005

Refrigerant Duel

The debate over automotive heating, ventilation and air conditioning (HVAC) system refrigerants is expected to heat up in the next few years as European and U.S. car makers find themselves going in opposite directions. Once again, the Japanese auto industry is caught in the middle. At stake are tens of billions of dollars in revenues in North America and Europe, and many more billions in the emerging

By Roger Schreffler • July 1, 2005

Fingerprint Customers?

Not speaking from experience, it used to be that the only time your fingerprints were taken was if you were arrested. These days, you may find yourself getting fingerprinted for far less. In California, for example, anyone seeking a vehicle sales or dealer license has to go through a process whereby each and every finger is methodically and electronically scanned into a federal computer database.

By ROB COHEN • June 1, 2005

Signs of Smallville USA

Driving in northern Michigan, billboards of four dealerships stand out. Each has grown from a single location into two- and three-store groups. Since the scenic northern Michigan has no big cities, the communities these dealers serve are markets, lacking competing franchises of the same brand. In towns with names such as Roscommon (population 858) and Pinconning (pop. 1,291), Dean Arbour, Bob Feeny,

By Mac Gordon • May 1, 2005

Atlas Accelerates Material Testing

Atlas Weathering Services Group aims to shorten the amount of time auto makers spend testing the durability of materials used in vehicles with four new temperature-controlled, outdoor, accelerated-testing services: Static, Night, Dynamic and Variable Irradiance programs. Atlas' Equatorial Mount with Mirrors for Acceleration, with or without Water (EMMA/EMMAQUA) accelerated-weathering services provide

By Mike Sutton • May 1, 2005

MEGADEALER 100

Who says times are bad? Despite discouraging news coming from Detroit and a market that is as competitive as ever, according to many dealers, revenues for the nation's top automotive dealer groups reached record levels in 2004, continuing the heady years experienced since the late 1990s. Dealer groups on the Ward's Megadealer 100 reported total revenues of $123.8 billion in 2004 up from $116.6 billion

By Cliff Banks • May 1, 2005

Tips for Used-Car Leads

If you are looking for ways to get more used-car leads from your website, trainer Jack Simmons of AutoTrader.com and Dennis Gailbreath of J.D. Power & Associates suggest five simple things you can do. Tell an online story about the vehicle. Most websites provide only basic information. Worse, many of the abbreviations that are used go over customers’ heads. Adds Gailbreath: “You can’t just list ABS

By Cliff Banks • April 4, 2005

Pay Them Up & Down

I often receive questions from readers and clients concerning my thoughts on management pay plans. While I never specifically suggest what a manager should be paid, I share my thoughts on the components that should be part of all management compensation agreements. It is practically impossible for a dealer or operator to keep watch on all aspects of his or her business, so we must ensure we have managers

By Tony Noland • April 1, 2005

Gagnon Was Seeking Opportunity

Although he had been gone from Mitsubishi Motors North America for more than a year, former CEO Pierre Gagnon says he was waiting for the right opportunity to move on to another auto maker when Visionary Vehicles LLC came along. Visionary founder Malcolm Bricklin has hired Gagnon to head North American sales and distribution of the vehicles to be built by Chery Automobile Co. Ltd. and imported into

April 1, 2005

Expect April-June Uptick

The second quarter will bring modest growth to U.S. light-vehicle sales, while slowed production rates will lower inventory levels to a 2-year low by June. Ward's is projecting some growth in sales with volume in April-June up less than 1% from a year ago, and the seasonally adjusted annual rate (SAAR) up to 16.7 million from like-2004's 16.5 million. The first-quarter SAAR, including an estimate

By Haig Stoddard • April 1, 2005

2nd Quarter Uptick

The second quarter will bring some slight growth to U.S. light-vehicle sales, while slowed production rates will drive down inventory to a 2-year low. Ward's is projecting sales from April to June to be up less than 1% from year-ago and the seasonally adjusted annual rate (SAAR) to rise to 16.7 million from like-2004's 16.5 million. The first-quarter SAAR, including an estimate for March, is pegged

By Haig Stoddard • April 1, 2005

Save Your Factory

Fanuc Robotics America Inc. is looking to dissuade North American manufacturers from the notion they must move production to more economical sites offshore in order to stay competitive. Low-cost labor markets such as China, India and South America and an expanding global consumer base are enticing reasons for companies to pack up and move production overseas. But Rick Schneider, president and CEO-Fanuc

By Mike Sutton • April 1, 2005

Geneva Sees Chinese Presence for First Time

GENEVA – Chinese vehicle brands – for the first time ever – were represented at Europe's springtime annual international auto show here this week. While the two companies don’t yet present a threat to Europe’s established auto makers, the presence of Ssangyong Motor Co. Ltd. and Hafei Motor Co. Ltd. offer a hint of future competition. Ssangyong, a South Korean-based SUV manufacturer, has exhibited

By William Diem • March 4, 2005