Autoblog

European MINI dealers are being asked to distinguish their stores from the BMW brand by creating a separate showroom for sell the British/Bavarian small-car. This entails new main entrances, and dedicated reception and service desks. While most of the dealers in the United States currently operate in this manner, most European retailers still share space with BMW. If dealers don't move enough volume to justify the investment, they will be dropped. In 2007, there were about 750 MINI retailers in Europe. That number is expected to fall to about 650 by the end of this year (worldwide, MINI has about 1,500 dealers in 70 countries). Unlike nearly all other automakers who are experiencing a sales slump, MINI's global sales are reportedly up more than 12 percent for the first nine months of 2008 -- no doubt credited to their diminutive size and fuel efficient engines.

[Source: Automotive News, subs. req'd]

If you believe the Johnston family, owners of Wildcat Mitsubishi in Tucson and Ideal Automotive in Sierra Vista, Arizona, they have a little communication and paperwork problem. If you believe the soldiers at the Army base in Fort Huachuca, the Better Business Bureau, the Arizona Department of Financial Institutions, the Arizona Transportation Department, the police department, and at least one civilian customer, the Johnstons have a much larger number of far more serious problems.

The Army base has banned personnel from patronizing the dealerships, alleging its soldiers have been abused. Soldier James Tuman traded in an SUV and a motorcycle and got financing from Ideal Automotive to buy a used car. When he tried to return the car because of mechanical issues, the Johnston's wouldn't give him his money back, instead saying he could buy another car on the lot. When he threatened to complain, they said they'd declare the car repossessed, which could hurt Tuman's security clearance. Tuman ended up with no money and no car.

Other complaints against Johnstons range from financing auto loans without a license and issuing temporary tags with the wrong VIN numbers. The Johnstons say they are sorting things out... but until the Army et al sort things out with the Johnstons, you might want to give Wildcat and Ideal a wide berth.

[Source: Auto News, sub req'd]

Hyundai is shaking its money makers, spending €60 million to upgrade its dealer network in Germany, France, Italy, Spain, and the United Kingdom. Each of 2,500 dealers will spend at least €24,000 on improving their facilities, with matching funds coming from both distributors and the parent company.

The plan is called Mission Q, and it has several objectives: upgrade the dealer experience, increase customer loyalty, and move the brand away from being considered solely for value or low cost. Hyundai wants "people to think of Hyundai as a market leader in quality, SUVs, family cars and because of our sports sponsorships, and then later come to the price discussion."

In addition to the new furniture and paint, Hyundai has created a brand academy at its European headquarters to train distributors and dealer staff. As it moves up the brand ladder, cars from China and India will be arriving to take Hyundai's place in price-first considerations. And that means that Honda, Nissan, and Toyota should probably start getting ready for another guest at the table.

[Source: Automotive News, sub req'd]

Volvo hasn't been doing too hot lately, posting a $1.73 billion loss over the past five years as it flails to find its niche. Sales of almost every Volvo product have declined in 2007, with the S60 falling by 28.1 percent, the XC90 dropping 5.6 percent and the V70 station wagon losing 7.7 percent. For June of 2008, Volvo only moved 7,001 vehicles, down 14.2 percent compared to last year. Something has to be done on the retail side, and according to Automotive News, dealers are on their way out.

The automaker is looking to cut out approximately 30 percent of its U.S. dealer network by the close of next year, however, Volvo retailers won't be cut in Europe, nor Russia, where Volvo is a leader in premium vehicle sales.

Volvo recognizes that part of its problem is fuel efficiency, so it's focusing on producing smaller vehicles and pushing its C30 hatch hard in the States. A hybrid version of the XC60 is in the works, but that won't be out for at least another three years... in Germany, and as a stopgap, Volvo plans to implement start-stop technology on its smaller engines.

[Source: Automotive News – Sub. Req.]

In Dallas, a businessman has spent half a million dollars to install nine pumps that dispense E85, E10, and biodiesel. The catch: the businessman is a HUMMER dealer, and the pumps are next to his dealership. The station is called Classic Clean Fuels, and it is intended to make a statement for next year's H2 and H2 SUT, which will be the first production models to be Flex-fuel capable.

You won't need to drive a HUMMER to get E85 at the station. The pumps are open to the public, a first for a dealer-owned gas station. By 2010, GM has said all HUMMERs will be biofuel-capable. GM plans to market 15 Flexfuel models next year, but only one percent of the country's service stations sell E85. GM is using that as an opportunity to open the public's (and dealers') minds to putting alternative fuel stations in alternative places.

Said GM's Larry Burns, "Down the road we may even want to consider hydrogen dispensers at dealerships."

[Source: Auto News, sub req'd]

A paucity of hot product, and an unintentional buyer boycott has claimed the last Mercury-only dealership. Dealerships trading singularly in Mercury products were always few and far between; the brand was usually paired with Lincoln, but Community Motor Company in Canonsburg, PA has sold only new Mercurys for 57 years. The small family run dealership will continue to sell used vehicles, which have seen the franchise through even as yearly sales of new Mercurys have dropped to one third of their 1989 high point of 300 cars. The only salesperson, Joe Mastrangioli Jr., didn't feel any pressure from the Blue Oval to hang it up, but Ford does need to trim its retail network. Elevated age, health concerns, as well as a tough sales climate have made it feel like the right time for Community Motor to bow out.

Mercury appears to be gasping for breath like a porgy washed ashore. They are nice enough cars; the Milan is handsome and nicely trimmed, the Sable got a more distinctive face this year, and the Mountaineer is what every Explorer should be. Initial quality is better than most, according to JD Power, and the brand knocked it out of the park on Power's 2007 Dependability ratings, too. Despite that, nobody seems to be paying any attention to Mercury (sales are down 6.7% through November). It could be that the brand has nothing unique to offer other than tarted up Fords. The fleet-only status of the Crown Victoria makes the Mercury store the only place to get the Panther platform without the Town Car drag, but the Grand Marquis long ago had its day in the sun. Every time we lament the fortunes of Mercury like this, we get an email from Ford letting us know it has product in the pipeline for its Roman god of Commerce and Speed (how ironic is that?). We'll have just have to wait and see.

[Source: Auto News - sub req., Photo: Larry Rippell]

Porsche's recent growth and Audi's plan for world domination are well underway, but beyond the product push both automakers have in store, the other part of the equation is dealerships. Audi currently has around 2,700 dealerships worldwide and according to the automaker's sales exec, Ralph Weyler, that's going to expand to 3,000 by 2011. The increase in dealerships is the cornerstone of Audi's plan to bring up annual sales to 1.5 million in the next few years, primarily by offering a range of products and winning the conquest contest with its competition.

Porsche, whose consistent profitability shows no signs of weakening, also plans to expand from its dealer network to 700 from 650 in the next decade. Although another 50 dealers doesn't seem like a large push, it's the strategic placement of those dealers in emerging markets like China and India that will boost Porsche sales. Klaus Berning, Porsche's sales chief, maintains that the luxury marque's sales in China could easily eclipse the 17-percent currently sold in Germany over the next five years.

[Source: Auto Motor und Sport via Reuters]

Earlier today we referenced Toyota disputing Edmunds.com claiming that the Tundra was sold in July with $6,861 of incentives per vehicle. That would've been the highest amount of incentives for any full-size pickup sold last month, but it turns out Edmunds made an error and last Friday printed a retraction on its AutoObserver site. Though Toyota does not release the official amount of incentives it offers for the Tundra, Edmunds is now claiming the amount offered last month is $4,625. That amount, while still high, makes it the third highest amount of incentives behind the Dodge Ram 1500 ($6,739 per vehicle) and Nissan Titan ($4,835 per vehicle). Edmunds further claims the 2007 Chevy Silverado was sold with $3,995 worth of incentives last month, and the Ford F-150 with $3,574. The Honda Ridgeline, if it can be rightly included in this group, was sold with $2,746 worth of incentives.

[Source: AutoObserver]

You're at the showroom, looking over the Rolls-Royce Phantom you've had your eye on for a while, and not sure whether you can trust the used car dealer or the wrinkled Carfax report you're holding. For you discerning buyers, the double-R has come to the rescue by offering "new car peace of mind" with its Provenance program ("programme," to you members of the Realm). Each previously owned car must have been serviced to the level of Rolls' standards and is inspected and road tested by factory-trained technicians. If a car manages to earn a Provenance seal, it comes with a vehicle history and proof-of-mileage. As a proud owner, you'll also get 24-hour roadside assistance, servicing, and warranty "up to the car's sixth birthday." Provenance cars are only sold through the Rolls dealer network, and probably won't ever include any of the pimped-out versions found on eBay.

[Source: Rolls-Royce]

Back in the Jacques Nasser days, Ford Motor Company decided to cut the dealer middleman and sell its own vehicles online. Considering that's Ford's dealer network was probably too big even when SUVs were selling like hotcakes, it's easy to understand why the Blue Oval's dealers would be angry. Almost a decade later, Ford's Mazda arm is getting more involved with the sales process, but instead of stealing bread from its dealer arm like Ford did, the Zoom Zoom folks are simply making the process easier for its customers.

At the click of a mouse on the Mazda website, online car browsers can contact a Mazda employee via web chat, and the Mazda "shopping assistant" will help buyers configure a vehicle, find a dealership, arrange for the dealer and customer to work out pricing, and make sure the final vehicle is sent to the dealership. The anatomy of the OEM sales site has been relatively unchanged for years now, and if Mazda's new idea works well, we think it could help Mazda nab a few more sales on convenience alone. The Mazda sales initiative has just started, but it took almost eight minutes for us to get someone online. We think Mazda will need to quickly work out the kinks and get wait time under a minute or two for this new endeavor to be a success. If you've given the Mazda sales assistant a whirl, let us know in the comments how it turned out.

[Source: Auto News - sub. req'd]