Operations: Page

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 Drew Winter • June 1, 2003

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

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

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

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

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

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 Drew Winter • June 1, 2003

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

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 Steve Finlay • May 1, 2003

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

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

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

Aluminum Flyer

SEVILLE, Spain It's a designer's most challenging task: Redesign your brand's icon, yet maintain the character traits buyers have come to expect. While some advocate throwing caution to the wind and taking a radical departure from the past, there are the more conservative who suggest a little nip and tuck here and there. When Jaguar's design team set out to redo the flagship XJ sedan, it opted to

By Kevin Kelly • May 1, 2003

Automotive Blunders

We all make mistakes, car companies, too. Since car companies rarely admit to any, we must do it for them. Here’s my list:

By Jerry Flint • April 28, 2003

O’Brien Auto Team Donates $20,000 To Make-A-Wish

The Make-A-Wish Foundation of Central Illinois is $20,000 richer thanks to a donation from the O'Brien Automotive Team. The money will be used to grant wishes of children with life-threatening illnesses. The average cost of each wish is $6,000. We are often reminded that life is fragile and each moment should be relished and enjoyed, says Joseph D. O'Brien Jr., president and CEO of the 25-franchise

April 1, 2003

Is Saying Chill Out OK?

Among the popular expressions of our society, none are as maddening and meaningless as It's as fraudulent as any of the other great insincerities we hear all the time. Like, the check is in the mail or I really love you and we'll get married as soon as I divorce my spouse. When I am asked to relax, it is an immediate signal for my adrenalin to begin flowing and my muscles to tighten. Usually, it is

By Nat Shulman • April 1, 2003

Gaining Acceptance

It took awhile, but it appears that auto makers paid attention to recent studies detailing the benefits of new high-strength steels for automotive applications. The American Iron and Steel Institute funded the research papers over the past several years in an effort to stop the auto industry trend of replacing steel parts with aluminum and plastics. Today, auto makers have plans to significantly increase

By Brian Corbett • April 1, 2003

STAMPING OUT A CLASSIC

BIRMINGHAM, U.K. Step inside the body shop at Jaguar Cars' Castle Bromwich assembly plant in the English Midlands and you're bound to notice something missing. Unlike most body shops, Castle Bromwich lacks the shower of sparks associated with putting automobiles together. There's a certain serenity on the shop floor, with little or no noise. The reason is simple: Castle Bromwich isn't building the

By Kevin Kelly • April 1, 2003

Pass the Info Ammo

Information is power. Look at the times we live in. It's called The Information Age for good reason. Never before have so many people had so much access to so much information as we do today. Staying informed is as important now than ever, maybe more so. That's especially true of anyone making a go of it in the fast-changing, competitive auto industry. Three executives at a recent automotive conference

By Steve Finlay • March 1, 2003

Work with the F&I Dept.

Here's another reason the job of dealership salespeople is critical: if they don't sell the vehicle, then F&I managers lose the chance to sell their products. Here's an F&I rundown for people who don't know how critical that department is to a dealership: What is the job of the F&I manager? To sell customer vehicle protection, get credit approvals and much more. Why should the salesperson promote

By DARIN B. GEORGE • March 1, 2003

NADA Economist Sees Strong, But Moderate Sales in ‘03

SAN FRANCISCO New vehicle sales will dip this year but remain strong by historical standards, says Paul Taylor, chief economist for the National Automobile Dealers Association. He projects unit sales of 16.5 million this year, down from '02's pace of 16.8 million. He says sales may dip to 16.3 million if the U.S. goes to war with Iraq. Given that the preceding four years were the best in the history

By Steve Finlay • March 1, 2003

Holden Adds Third Shift

Holden Ltd., GM's Australian subsidiary, will add a third shift to its Elizabeth, South Australia, plant in June. Holden says the third shift which will require 1,000 more workers, increasing Holden's workforce to nearly 9,000 will increase flexibility and help the auto maker meet its target of shipping 18,000 Pontiac GTO-badged Monaro coupes a year to the U.S., as well as explore opportunities in

March 1, 2003

New Study Cites Growing Satisfaction With Car Dealers as a Reason for All Those Sales

A major reason U.S. consumers keep buying new vehicles at a near-record pace despite tough economic times is a dramatic growing satisfaction with auto dealers and the car buying experience. That's according to a new national opinion poll by Automotive Retailing Today (ART). The survey says high customer satisfaction levels are prevalent across all ethnic and gender categories, and especially strong

Feb. 1, 2003

Daewoo Bound for U.S. return

Daewoo vehicles are on their way back to the U.S. market. Realistically, I think it could still be this year, says D. Nick Reilly, president and chief executive officer, GM Daewoo Auto & Technology Ltd., of a reintroduction in the U.S. The decision comes shortly after the last Daewoo-badged vehicles finished selling here. Some of the vehicles will be returning but sporting General Motors Corp. badges.

Feb. 1, 2003

The Most Expensive Cost Of Business

Do you know how much it costs to gain a new client, what's called the sale cost? It is one of the most expensive sales you'll ever make. But even more expensive is the sale you'll never make again. You're losing money as a steady stream of your existing clients sneak out the back door and never buy from you again. That's the most expensive cost of doing business. You end up spending more on front-end

By JEFF BULL • Feb. 1, 2003