Operations: Page

The Palladium Problem

Judging by the media coverage regarding the current shortage of palladium, a material used in catalytic converters to reduce emissions, one might think assembly plants are on the verge of closing or the cost of vehicles is readying to jump by a couple hundred dollars.But with sufficient stockpiles of the precious metal and little if any purchasing done on the commodities markets, automakers are safely

By Brian Corbett • April 1, 2000

Federal-Mogul to swallow tough pill

Still coping with indigestion from a late-1990s acquisition drive, Chairman and Chief Executive Richard Snell issues a tough prescription for ailing Federal-Mogul Corp.: Cut 1,500 jobs (out of 50,400 worldwide) and close, consolidate or rationalize at least 62 facilities worldwide. The price tag for the drastic restructuring, which includes shuttering 22 North American aftermarket branch warehouses,

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

V.T. ventures where other consolidators dread to tread

In cementing its fourth-place ranking among megadealers, the V.T. (Van Tuyl) network went where other megas feared to tread last year and purchased six stores in three booming metro markets.The 41-dealership V.T. group posted a 26.2% jump in total revenues to $3.5 billion on 1999 sales of 191,735 new and used vehicles.Cecil Van Tuyl and son Larry for 30 years have assembled the privately owned V.T.

By Maynard M. Gordon • April 1, 2000

“PATIENT” INVESTORS BACK AUTOTRADER

The used-car business doesn't always get a lot of respect, "but that's where the money is," according to Chip Perry, president and CEO of AutoTrader.com.He says of the $370 billion used-car industry, "It's bigger than new cars, it's more profitable, and thanks to the Internet, we've made it much easier to match buyers with sellers."Two years ago AutoTrader's parent company, Cox Enterprises Inc., launched

By Steve Finlay • April 1, 2000

A SHOOTOUT AT THE DOT-COM CORRAL?

AS NEW AS SELLING CARS OVER THE INTERNET IS, we are already seeing a second generation of on-line services.The subtle, but critical evolution in the sale model of the new automotive e-tailers could transform the industry.The goal of these new on-line players is to carve out a new distribution channel. The entrenched players are starting to take notice. How they strike back may determine the future

By Mark Rikess • March 1, 2000

Labor tip: Keep those wages ‘current’ to discourage union organizing

Positive steps, including wage increases, to improve employee relations are vital to ward off overtures by union organizers, say labor relations attorneys for the Chicago Automobile Trade Assocation.At a seminar entitled "Answering the Growing Union Challenge," James Hendricks and Kevin Dunphy stress the need to keep compensation packages ahead of those at unionized dealerships.Four union locals represent

March 1, 2000

Dealer-owned IADMA opens sales website

A dealer-controlled website is rolling out in the first quarter across the U.S. from its Denver base. The site is www.driveoff.com.Charter subscribers for the Internet Auto Dealers Marketing Association, headquartered in Englewood, CO, are:Burt Automotive Group, Denver; V.T. Inc. (Van Tuyl), Shawnee Mission, KS; the Utah-based Larry Miller dealerships; Lund Cadillac, Phoenix; and Arizona's Chapman

March 1, 2000

Auto Talk: Sorry, Jean

Fortunately Jean Jennings, the new top editor of Automobile magazine, is a good sport. We had to make some last-minute changes in our January Auto Talk section, and that led to a hasty re-edit of a piece on her promotion to the top job at the magazine - and a bonehead error on our part that described her as the brother of Paul Lienert. The last sentence on p.34 of our January issue should have said:

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

Common Sense: Who’s to Blame?

When I was young and beautiful, proper behavior was clear and understood by just about everyone. Women were treated like ladies; you opened the door for them, held an umbrella over their heads when it was raining, etc.Performers on television shows, in those days, were held to certain, very strict, standards. If there was even a hint of impropriety he or she was summarily dismissed from the show.Movies

By STEPHAN SHARF • March 1, 2000

Women’s group salutes Pat Moran

Women should "reach out for leadership positions in the automotive industry... and not fear the challenge of succeeding in what was once a man's world."So says Pat Moran, president and CEO of JM Family Enterprises, as she accepts the "Spirit of Leadership" award from the Women's Automotive Association International at the 2000 NADA convention.Ms. Moran is the daughter of legendary auto dealer Jim

March 1, 2000

HE TRACKS SHOPPERS, SALES AND STOCK

LAS VEGAS - "It was a great year to be a car dealer, a Nissan dealer, a Vegas dealer and an AutoNation dealer." So says Don Forman, the general manager of Nissan West, reflecting on 1999.As chief of operations for the AutoNation Inc.-owned store, Mr. Forman rattles off some of the many dealership numbers he so diligently keeps:Gross revenues up 24.5% from 1998 to $96 million; gross profits, $13.9

By Maynard M. Gordon • March 1, 2000

Auto Talk: Pioneer Auto Writer Stan Brams Dies at 89

We thought he'd go on forever, and he almost did.Stan Brams' vitality and expansive mind belied his years. He was 89 when he died of heart failure on Christmas in Atlanta. Until very recently he showed up regularly at automotive previews and conferences just as he had done since his first preview in 1935 for the '36 Plymouth.Mr. Brams likely was the world's oldest automotive journalist and sometimes

By DAVE SMITH • Feb. 1, 2000

Compare apples to apples when hiring

For many employers, America's robust economy is a mixed blessing. As the economy has grown, so have profits. But with unemployment at its lowest level in over two decades, finding enough employees to meet the increased demand is proving quite difficult for dealerships in some regions (Southeast, West Coast) and next to impossible in others (Northeast, Midwest).Some dealers have taken a high tech approach

By Mary Ruth Austin • Feb. 1, 2000

Service Provider fills sales positions

Vehicle service contract provider National Auto Care Corp. has hired Rob Fox and Jennifer Fonzaglia to key sales positions.Mr. Fox is NAC's new national sales manager. He will develop and enhance the National Auto Care agency network.Ms. Fonzaglia is the new sales development coordinator. She will assist the Ohio-based company's clients with their sales and marketing needs.

Feb. 1, 2000

CarsDirect also receives “best site” designation

Recent start-up CarsDirect.com, based in Sherman Oaks, CA, has also received a "Best Site" designation, this one from e-commerce analyst Gomez Advisors. CarsDirect.com users may research, price, select, finance, order, and take delivery of a new vehicle. You may review the Gomez Advisors quarterly ranking of Internet car-buying services on the Web at www.gomez.com and visit the CarsDirect.com site

Feb. 1, 2000

AutoTrader.com named best used-car website

Yahoo! Internet Life, a Ziff Davis consumer magazine, has named AutoTrader.com best used car hub on the Web, designating the site a Gold Star Site for its depth of used vehicle listings, clean design, ease of use, and breadth of services.Yahoo! Internet Life praised Auto-Trader.com as a cleanly designed site that allows consumers to search for vehicles, sort through the returns, get Kelley Blue Book

Feb. 1, 2000

JM&A opens new training center, readies for F&I Internet sales

If timing really is everything, then the timing for the promotion of Steve Hayes to general manager and chief operating officer of JM&A Group could not have been better.The F&I service provider is entering the 2000-model year "with a lot on its plate," says Mr. Hayes, "starting with opening of a new and expanded training center for dealer F&I personnel right here on our main campus."Mr. Hayes, at

By Maynard M. Gordon • Feb. 1, 2000

At Large with Dave Smith: The ‘Inside Story’ on Generation Y

They're comin'," exclaims Jim Masters - and he's getting ready for them."They" are indeed coming, some 78 million strong: so-called "Generation Y" youngsters, sons and daughters of Baby Boomers, who range from pre-teens to voting age. They are commonly called "Echo Boomers," a moniker they prefer. "They hate taglines," he says.James C. Masters is president of Lear Corp.'s Technology Div. As a dominant

By David C. Smith • Feb. 1, 2000

AutoNation website fights the competition

AutoNation Inc. CEO Michael Jackson says the consolidator's new licensed Internet sales site will be a "big" advantage in competing with the rising host of factory, bank-linked and independent websites.The first licensees for AutoNation's website, who receive exclusive territories for a renewable two-year period, include John Bergstrom, Neenah, WI, owner of 18 dealerships; Don Flow, Winston-Salem,

Feb. 1, 2000

Auto Talk: Jean Jennings Goes to ‘Front of the Book’

Legendary automotive editor David E. Davis gives up the top job on Automobile magazine, which he founded in 1986, as the new year begins. His successor: Executive Editor Jean Jennings, who becomes the first woman to head up a major buff magazine.Her column moves to the front of the book, while Mr. Davis will continue to contribute a column to the back page.Ms. Jennings is the daughter of the late

By WARD'S AUTO WORLD STAFF • Jan. 1, 2000

Rear Vision Made Simple

It's a fledgling market for now, but it won't be long before a majority of new vehicles will be available with rear-sensing systems to help drivers squeeze into tight spaces when parallel parking.After its introduction on European luxury cars in the early 1990s, the product arrives in the U.S. in time to capitalize on a market that loves big sport/utility vehicles that offer inadequate rear vision

By Tom Murphy • Jan. 1, 2000

At Large with Dave Smith: Bumpy Ride into the 21st Century

Ah, the new millennium. I can't go back to 1900 when the automotive industry experienced its birth pangs. But then, who can?I can, however, look back to the final third of the 20th century, which I've witnessed close up - a metamorphosis cumulatively so tumultuous it would fill your hard drive to overflowing.So for this 900-word exercise, let's look at the bumpy road traveled since the mid-'60s.Then

By David C. Smith • Jan. 1, 2000

Going After the Aftermarket

LAS VEGAS - The sheer size of Automotive Industry Aftermarket Week (AAIW) '99 - encompassing four trade organizations including the Specialty Equipment Manufacturers Association (SEMA) - is one indication of how profitable aftermarket accessories and performance parts sales can be to new-vehicle dealers.It's huge, the biggest aftermarket trade-only exhibition in the world. It's also the second largest

By Tim Keenan, Drew Winter with Brian Corbett • Dec. 1, 1999

The Dark Side of Color Forecasting

Could George Lucas have an impact on the automotive industry? Maybe, says a color expert from BASF.Jon Hall, manager of color development for BASF Corp.'s Automotive OEM Coatings business, says the mechanical look of Lucas' most recent Star Wars effort will impact both color and design choices in future vehicle models."Design will be more machine like and mathematical, less amoebic and organic," he

By WARD'S AUTO WORLD STAFF • Dec. 1, 1999

Tampa Bay goes the way of AutoNation’s Denver pilot

Thirteen of 16 Tampa Bay area dealerships will form the core of AutoNation's "no-haggle price" pilot, covering the Florida Gulf Coast cities of Clearwater, St. Petersburg and Tampa.The pilot's formal launch is Dec. 26. More than 2,000 associates from the dealerships will be trained in the same product and service methods that helped lift the initial Denver pilot to sales and market share increases

Dec. 1, 1999