Autoblog

Jaguar and Land Rover to consolidate dealerships

Zach Bowman — Thu, 29 Nov 2012 11:00:00 EST

Filed under: Car Buying, SUV, Jaguar, Luxury

Jaguar and Land Rover are set to merge their sales facilities, according to Inside Line. Jaguar Land Rover North America President Andy Gross says 45 percent of Jaguar owners also have an SUV in their stable, so it makes sense to give customers as much exposure to the cat's high-riding cousins and possible. The number of overall outlets will remain the same, and the brands will reportedly remain separate on the showroom floor, however.

So far, just one dealer has made the move to combine under the roof of one 68,000 square-foot facility in Paramus, New Jersey (above), though a further 20 are ready to make the shift and become Jaguar Land Rover outlets. Gross believes the shift is necessary so that his company's dealer network will accurately reflect the company's products. We'll see how cozy the brands are when Jaguar starts rolling out its own SUVs in a few years.

Jaguar and Land Rover to consolidate dealerships originally appeared on Autoblog on Thu, 29 Nov 2012 11:00:00 EST. Please see our terms for use of feeds.

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VW sales increasing, and not just cars... dealers too

Jeffrey N. Ross — Wed, 24 Oct 2012 18:45:00 EST

Filed under: Volkswagen

As the product lineup at Volkswagen has gotten more popular in recent years, apparently so have its dealerships. According to Automotive News, not only has the interest in owning a VW franchise gone up in the last few years, it has done so by some of the larger dealer groups in the country.

Companies such as AutoNation and Penske Automotive are now VW franchisees, which the report attributes to the brand's impressive sales growth as well as its future growth plans. So far this year, VW has sold 323,089 cars, marking a 37-percent increase over last year and making Volkswagen the second-fastest growing brand in the US by volume after Chrysler. Projected sales totals for 2012 are currently 430,000 units which is almost half of the 800,000 annual sales that VW hopes to accomplish by 2018.

Currently, VW has 607 dealers in the US, but it hopes to cautiously grow that number over the next few years by around 10 to 15 dealers per year as sales continue to increase. Galpin Motors - the best-selling Ford dealer in the US - was awarded a franchise last year, and in September, it had the second-highest sales of any VW dealer in the country.

VW sales increasing, and not just cars... dealers too originally appeared on Autoblog on Wed, 24 Oct 2012 18:45:00 EST. Please see our terms for use of feeds.

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Why Google is frustrating your local car dealer

Jeff Sabatini — Tue, 28 Aug 2012 08:01:00 EST

Filed under: Car Buying, Government/Legal, Marketing/Advertising, Technology

Car salesmen have long ranked among the most universally reviled members of society, just south of real estate agents and lawyers. But the past decade has seen the plaid sports jacket and gold chain crowd doing much to bolster their image, with many auto dealers building impressive online reputations by cultivating positive customer feedback.

That's where this latest tale of woe begins: Automotive News is reporting that Google has been deleting hundreds of reviews of dealerships from its Google+ Local pages, but doing so in a capricious and arbitrary fashion. The dealerships, as you might expect, are angry.

One Suzuki dealer who reportedly had 400 reviews zapped in two days time told AN, "Google believes it can do whatever it wants and has no accountability." His store saw its positive ranking disappear as a result of the deleted reviews. Google's response was that it has merely been trying to make sure that reviews are "authentic, relevant, and useful," according to the report. The Suzuki store owner and two other dealers have subsequently filed complaints with the Federal Trade Commission.

Google has no formal way for dealers to appeal the deletions, or even understand why they were made, leaving them with little recourse but to go through the process of rebuilding their cache of positive reviews one customer at a time.

Why Google is frustrating your local car dealer originally appeared on Autoblog on Tue, 28 Aug 2012 08:01:00 EST. Please see our terms for use of feeds.

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Car dealerships selling more cars per store than ever before

Jeff Sabatini — Sun, 19 Aug 2012 12:33:00 EST

Filed under: Car Buying

A consulting firm has boosted its auto sales estimate for 2012 to 14.3 million vehicles, but the big news is that, in aggregate, dealers are again making money selling cars.

Bloomberg reports that annual sales per dealer will jump to 805 vehicles according to Urban Science. That would be a new record, as despite this year's total sales number being some four million units shy of 2007 levels, there are far fewer car dealers in operation today.

The previous record was set in 2005, when the figure was 784 vehicles sold per dealer, according to the report. Both Chrysler and General Motors shed hundreds of franchises during their bankruptcies, but dealership ranks shrunk independent of that fact. Urban Science says the number of car dealers usually shrinks by about 2 percent each year, according to the report.

Car dealerships selling more cars per store than ever before originally appeared on Autoblog on Sun, 19 Aug 2012 12:33:00 EST. Please see our terms for use of feeds.

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SRT Viper to be sold at only one fifth of Chrysler dealers

George Kennedy — Mon, 23 Jul 2012 15:30:00 EST

Filed under: Car Buying, Coupe, Performance, Chrysler, Dodge

Only one fifth of Chrysler Group dealers will have the chance to sell 2013 SRT Viper, according to an Automotive News report. To qualify for the V10 beast, a hopeful dealer will have to train staff and purchase special tools, as well as improve their facilities. This does not guarantee the ability to sell the Viper. It merely keeps the dealer on the list of potential suitors.

SRT CEO Ralph Gilles spoke with journalists in a broadcast interview in Detroit this month, lining out the plan for dealers intent on selling the 8.4-liter snake: "We're going to open it up to any dealer who can put up the money ... you've got to have the training, the facilities, and some history of selling Vipers and SRTs in general."

While Chrysler has not yet announced the number of Vipers to be built each year, it will certainly be a limited run, and not every dealer will have the opportunity to put one in their showroom. According to Gilles, they want only the best dealers carrying their 640-horsepower super car.

"There's going to be a new breed of customer coming, so we want to make sure they have a great experience," said Gilles.

SRT Viper to be sold at only one fifth of Chrysler dealers originally appeared on Autoblog on Mon, 23 Jul 2012 15:30:00 EST. Please see our terms for use of feeds.

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TrueCar polishing edges off business model to comply with state regulations

Jeff Sabatini — Thu, 19 Jan 2012 18:21:00 EST

Filed under: Car Buying, Etc., Government/Legal, Marketing/Advertising

TrueCar has attracted much unwanted attention recently, drawing the ire of Honda and torquing off regulators in several states. In response, the company has announced a series of changes to its business model, designed to address the legality of its service, according to a report in Automotive News.

The biggest change is that dealers in some states will now have to subscribe to the lead service rather than paying a per-vehicle fee for sales closed from a TrueCar referral. Consumers will now have to sign up with TrueCar, providing contact information in the process. Additionally, TrueCar will drop the term "invoice" when describing the deals it offers.

While these changes are expected to mitigate TrueCar's biggest problems, the company also says it will be making its service more dealer-friendly, according to AN. One of the contentious aspects of the TrueCar business model for some dealers has been the requirement that TrueCar have access to the dealer's computers, such that the company can mine sales data. TrueCar says it will be limiting this in the future, along with establishing a national dealer council to procure feedback from its partners.

TrueCar polishing edges off business model to comply with state regulations originally appeared on Autoblog on Thu, 19 Jan 2012 18:21:00 EST. Please see our terms for use of feeds.

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State regulators turn up the heat on TrueCar

Jeff Sabatini — Fri, 06 Jan 2012 09:01:00 EST

Filed under: Car Buying, Government/Legal

What exactly is TrueCar? That's the question behind recent conflicts between the company and a growing list of foes, which include dealership organizations, automakers and regulators in at least three states.

According to a report by Automotive News, TrueCar's business model is under fire by this old guard, backed by long-standing legislation to protect their franchise interests. AN says government officials in Colorado, Wisconsin and Virginia have all raised issue with TrueCar, and that the company may face legal problems in other states, including California. TrueCar has responded by promising to make "meaningful changes" to its service by the end of the year, according to the report.

Nominally, TrueCar is an "Internet marketing company" that profits from the fees that dealers pay when they sell a car that was listed on TrueCar. But that practice may not be legal, especially in states that have consumer protection laws against brokering and what is known as "bird-dogging," or paying third parties for leads. There are also issues with TrueCar's marketing, which could be in violation of some state's rules prohibiting the mention of invoice price. Dealers who do business with TrueCar may risk steep fines or loss of license in some jurisdictions, but from what the report says, most regulators are putting businesses on notice first.

TrueCar has also raised the ire of at least one carmaker, with Honda recently reminding its dealers that if they want to get money through its dealer marketing program, they'd better not be advertising cars for below-invoice price on TrueCar.

State regulators turn up the heat on TrueCar originally appeared on Autoblog on Fri, 06 Jan 2012 09:01:00 EST. Please see our terms for use of feeds.

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Tight used car supply has dealers looking in their own service bays

Jeff Sabatini — Tue, 13 Dec 2011 18:40:00 EST

Filed under: Car Buying

Used vehicle prices have been on a tear for over a year now, as slow new vehicle sales during the financial meltdown of 2009 have created a dearth of available used models today. Yet the sluggish economy means demand for used vehicles is high, so dealers are going to ever-increasing lengths to acquire inventory.

According to Ward's Auto, the latest tactic is buying vehicles from service customers. Dealers are appraising customer cars and trucks before they pay their repair bills, then offering to buy the vehicles rather than charge the owners for the service visit. Dealers are even giving service personnel incentives to bring in trades.

One dealer said his service areas have signs reading, "Before you pay your service bill, you might want to find out the value of your car."

Tight used car supply has dealers looking in their own service bays originally appeared on Autoblog on Tue, 13 Dec 2011 18:40:00 EST. Please see our terms for use of feeds.

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Honda fighting below-invoice online pricing deals

Jeff Sabatini — Tue, 13 Dec 2011 15:59:00 EST

Filed under: Car Buying, Honda

Let's face it, nobody pays MSRP anymore. In fact, the most savvy car buyers among us don't even pay invoice price. Thanks to Internet pricing sites like TrueCar.com, it doesn't take negotiating skills or friends in the business to get dealers to sell you cars at deep discount. And that fact has Honda ticked off.

According to Automotive News, Honda has issued an ultimatum to its dealers: Stop selling cars below invoice price through these websites, or lose the per-car marketing spiffs that the factory gives dealers. Since Honda corporate turned the screws on its dealers in October, TrueCar says Honda sales through its service are down.

While many dealers do opt to play ball with TrueCar, offering guaranteed discounted prices up front and hoping to make more money on other aspects of their business, some are not thrilled with TrueCar. AutoNation CEO Mike Jackson has called TrueCar's pricing transparency a "death spiral" for dealers, according to AN.

Honda fighting below-invoice online pricing deals originally appeared on Autoblog on Tue, 13 Dec 2011 15:59:00 EST. Please see our terms for use of feeds.

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Chevy's plan to sell more cars in California? Be more like Disneyland

Zach Bowman — Fri, 28 Oct 2011 17:45:00 EST

Filed under: Car Buying, Etc., Chevrolet

The Detroit News reports that Chevrolet may take a page out of the Disney playbook to improve the automaker's customer service and its appeal in the California market.

Chevrolet dealers are headed to classes at Disneyland in Anaheim, California, to learn some of the magical secrets employed by the amusement park to make visitors feel that they've had a special experience. The report says that some of the tips shared include the fact that no Disney Prince or Princess ever smokes in public and that sometimes, it's better to say less to ensure that a customer has a positive impression of their visit.

In addition to polishing its customer service, Chevrolet is rolling out a volley of new, smaller and more fuel-efficient vehicles targeted directly at Californians and renovating its aging dealerships. The brand has picked 100 dealers in the Los Angeles, San Diego and San Francisco areas and offered between $500,000 and $1.5 million for improvements, including a new, uniform front entrance. The moves are designed to pull Chevrolet back from its Southern, Midwestern truck-based focus.

Chevy's plan to sell more cars in California? Be more like Disneyland originally appeared on Autoblog on Fri, 28 Oct 2011 17:45:00 EST. Please see our terms for use of feeds.

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Spike TV readying reality show about turning around car dealers

Zach Bowman — Tue, 27 Sep 2011 07:57:00 EST

Filed under: Car Buying, Etc., Celebrities

Automotive News is reporting that Spike TV is planning to roll out a new reality TV show that orbits around struggling car dealerships. The premise has the show's two hosts, Tom Stuker and Roe Hubbard, swooping in with just five days to turn lackluster sales into a success story.

So far, the network has eight episodes planned under the tentative title "Car Lot Cowboy." Sure, the world needs another reality TV show like it needs more famine, but we'll reserve judgment until the show airs sometime next year. Still, something tells us this isn't likely to enjoy the same success as the interminable "Survivor" franchise.

Spike TV is an MTV property, and is responsible for such gems as "Deadliest Warrior," "Manswers" and "Repo Games." "Car Lot Cowboy" should fit right in.

Spike TV readying reality show about turning around car dealers originally appeared on Autoblog on Tue, 27 Sep 2011 07:57:00 EST. Please see our terms for use of feeds.

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Automaker incentives sink to five-year low

Chris Shunk — Wed, 04 May 2011 18:00:00 EST

Filed under: Car Buying, Chrysler, Ford, GM, Honda, Nissan, Toyota

Auto sales have been on an upward trajectory for many months, and the latest data shows that cash on the hood isn't one of the reasons. According to Automotive News, incentive spending was at a five-year low in April, down 14 percent to an average of $2,320 per vehicle.

Toyota had the lowest incentives among the top six automakers in the United States, with an average of $1,885 per unit. Nissan discounts dropped the most on a percentage basis, down 33 percent to $1,998. Honda actually increased spending to $2,187, bucking the industry trend. Buyers of Japanese autos can likely expect the dropping incentives to continue in the short term, as supply issues mean that fewer vehicles will be available on dealer lots.

As you may have expected, Ford's strong product lineup has helped the automaker cut spending by 20 percent to $2,399 - the lowest among the Detroit Three. Chrysler was next with an average rebate of $2,806. General Motors came in last at $3,068 per unit, which is still down 8.1 percent from April 2010.

So what does this mean for car buyers? We're guessing that incentives will continue to remain where they're at, or perhaps even drop further in the months ahead. After all, April's adjusted sales rate came in at 13.2 million for 2011, with no hint of slowing down, and analysts have expected 12.7 to 13 million sales for the year. About the only thing that could change that right now is the continuing rise of gas prices, which is a real possibility.

Automaker incentives sink to five-year low originally appeared on Autoblog on Wed, 04 May 2011 18:00:00 EST. Please see our terms for use of feeds.

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Ninja Alert! Beware of car salesmen trained in the art of phone calls

Aaron Richardson — Mon, 25 Apr 2011 17:01:00 EST

Filed under: Car Buying, Etc., Marketing/Advertising, BMW

It may sound obvious to say you should be wary of car salesmen on the phone, just as you should be wary of car salesmen in general. To hammer the point home, though, here are some audio files of Jerry Thibeau training salespeople at car dealerships, in this case a BMW dealership, to schmooze and potentially ensnare customers before they even walk on the lot.

With the Internet stealing large portions of business from car dealerships, there's a real need for dealers to invest in this kind of telephone training. Thibeau answered the call when he started New York-based Phone-Up Ninjas back in late 2009.

Guys like Thibeau charge $2,000 a day plus expenses to visit car dealerships for these training sessions. They can also do the work remotely, dubbing constructive criticism into mystery shopper phone calls to point out where a salesperson's pitch could use some help.

The car salesman on the other end of the line has a job to do: make you buy a car (or how about this nice SUV that's just a little more per month?). Just remember that, next time, you may be talking to a ninja.

Our advice? Hang up. Read the full report at AOL Autos to learn more about how this industry operates.

[Source: AOL Autos | Image: Getty]

Ninja Alert! Beware of car salesmen trained in the art of phone calls originally appeared on Autoblog on Mon, 25 Apr 2011 17:01:00 EST. Please see our terms for use of feeds.

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Report: Lincoln skews volume toward urban centers, unnerves small town dealers

Zach Bowman — Tue, 23 Nov 2010 08:28:00 EST

Filed under: Lincoln, Earnings/Financials, Luxury

Lincoln has apparently had enough of small-town life. According to Automotive News, Ford's luxury brand plans to give its dealerships in metropolitan areas the lion's share of production moving forward. The company says luxury buyers are typically centered around larger cities, and as such, up to 85 percent of the company's inventory will go to its dealers in the 130 largest U.S. markets in the future. That move denotes a larger percentage than the company has used in the past. Needless to say, this makes those dealers that are out in the sticks more than a little nervous.

AN reports that the remaining 15 percent of Lincoln products will have to be split between some 500 rural dealers. With so many hands fighting for the scraps, it's all but inevitable that more than a few will go dark in short order. Lincoln says that nearly half of the company's 1,200 dealerships are located in smaller markets. The company says that it wants to close down around 200 of its top-market stores, and that some thinning will be required in other markets as well.

[Source: Automotive News]

Report: Lincoln skews volume toward urban centers, unnerves small town dealers originally appeared on Autoblog on Tue, 23 Nov 2010 08:28:00 EST. Please see our terms for use of feeds.

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Report: Bill aimed at giving auto dealers more credit is signed into law

Jonathon Ramsey — Tue, 28 Sep 2010 09:59:00 EST

Filed under: Government/Legal

The federal government is keeping up its effort to stimulate the economy, while the economy is keeping up its resistance to those efforts. The latest effort to prod spending comes in a bill that, among other things, increases the federal guarantee for small dealer floorplan loans from the Small Business Administration from $2 million to $5 million. Part of the bill would also reinstate fee waivers that ran out in May, meaning loan applicants could save more than $50,000 in fess alone on a $2 million loan.

Federal floorplan assistance has been around for a year, but banks haven't been receptive and some believe that raising the limit won't change that. It is customers who are needed to provide the real relief, and in the words of a former Federal Reserve vice chairman, "If the economy grows at one and a half percent, we're spitting in the wind because there's no demand."

The bill passed the House and Senate along party lines and President Obama signed it into law yesterday afternoon. This is expected to be the last jobs bill to leave Congress before the midterm elections in November.

[Source: Automotive News, sub. req. | Image: AP Photo/J. Scott Applewhite]

Report: Bill aimed at giving auto dealers more credit is signed into law originally appeared on Autoblog on Tue, 28 Sep 2010 09:59:00 EST. Please see our terms for use of feeds.

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Report: Ford still hoping to cut 10% of its dealer network

Zach Bowman — Thu, 16 Sep 2010 18:32:00 EST

Filed under: Car Buying, Ford, Lincoln, Mercury

Ford may have come through the automotive implosion relatively unscathed, but that doesn't mean the company isn't still trying to trim its costs. According to Automotive News, Ford wants to consolidate its dealer network by closing the doors on some 300 lots. The reason? While the automotive market is slowly improving, no one expects to see the kind of buying levels enjoyed before 2009 anytime soon. As a result, Ford wants to boost the profitability of its dealer network by reducing the number of outlets available to consumers.

While you'd expect dealers to be up in arms over such an announcement, Ford says that, by and large, its showrooms are behind the move. The company's relationship with its dealer network recently hit an all-time high, putting Ford in a good position to push the consolidation effort.

The move to trim outlets is also bolstered by the fact that there are 261 Lincoln-Mercury dealerships out there, and with Mercury on its way to the back lot in the sky, those dealers will likely be exploring other options. And with Ford currently operates a total of 3,338 dealerships in the States, a sacrifice of 10% seems more than reasonable.

[Source: Automotive News - Sub. Req. | Image: Bill Pugliano/Getty]

Report: Ford still hoping to cut 10% of its dealer network originally appeared on Autoblog on Thu, 16 Sep 2010 18:32:00 EST. Please see our terms for use of feeds.

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Apple iPad to be used as sales tool by Mercedes-Benz dealers

Chris Shunk — Sat, 29 May 2010 17:32:00 EST

Filed under: Car Buying, Technology, Mercedes-Benz

The resounding successes of the iPhone and iPad have Apple shareholders dancing in the streets, but one area in which Apple hasn't been as successful, however, has been business applications. In fact, until recently, Apple retail stores used Windows-based devices to ring up orders. Now, Mercedes-Benz aims to be among the first companies to change that paradigm by bringing the popular iPad tablet into its showrooms.

The program, called Mercedes-Benz Advantage, puts the iPad into the hands of the automaker's sales force. With the iPad and Mercedes' new sales tool app, associates will have lightning-fast access to the latest deals, while also providing a quicker turnaround time for customer credit application processes. Benz also says the iPad will help speed up the time it takes to turn-in a leased vehicle. Andreas Hinrichs, Vice President of Marketing for Mercedes-Benz Financial, contends the Apple tablet will "provide a competitive advantage to our dealers by increasing their service levels through a more flexible financing process."

We dig that Mercedes is thinking outside the box to deliver an expedited shopping experience, but even better, we love the fact that the Apple iPad might help customers avoid the dreaded trip to dealership's finance room. Hit the jump to read over the press release.

[Source: Mercedes-Benz]

Continue reading Apple iPad to be used as sales tool by Mercedes-Benz dealers

Apple iPad to be used as sales tool by Mercedes-Benz dealers originally appeared on Autoblog on Sat, 29 May 2010 17:32:00 EST. Please see our terms for use of feeds.

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McLaren Automotive names first 35 cities to get dealers

Sam Abuelsamid — Fri, 21 May 2010 18:28:00 EST

Filed under: Performance, Marketing/Advertising

McLaren dealer rendering - Click above for high-res image gallery

McLaren Automotive has announced the 35 cities where the MP4-12C will be available when it goes on sale next year. Dealers in the 19 countries on the list are still being evaluated and at least 23 of them will be named by McLaren prior to the public debut of the new sports car at the Goodwood Festival of Speed in July.

There are few surprises on the list of cities, with all of the usual suspects being represented including Paris, London, Los Angeles and Tokyo. As you'd expect, the Middle East is over represented with seven locations, including two in Saudi Arabia. The UK isn't left of the mix with one dealer each in Manchester and Birmingham, while those of us in the States will have to check out McLaren's newest supercar in Tampa, Florida. Over 500 dealers have applied for the first 35 outlets and McLaren expects some expansion in 2012. Of course, that's all dependent on demand, but with 2,500 prospects expressing interest in buying an MP4-12C so far, there could be a McLaren boom in the making.

Gallery: McLaren Automotive dealer renderings

[Source: McLaren]

Continue reading McLaren Automotive names first 35 cities to get dealers

McLaren Automotive names first 35 cities to get dealers originally appeared on Autoblog on Fri, 21 May 2010 18:28:00 EST. Please see our terms for use of feeds.

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Wow: Dodge Dealer honors disputed eBay Challenger auction and then some

Jonny Lieberman — Mon, 22 Mar 2010 14:27:00 EST

Filed under: Car Buying, Coupe, Performance, Auctions

Well, score one for the little guy. Or, as the case may be, the guy that won an eBay auction, getting himself one helluva mondo deal on a 2009 Dodge Challenger SRT8. To refresh your memory, a Southern California dealer called Glenn E Thomas Dodge Chrysler Jeep had the Challenger in question on eBay. The Buy It Now price was $43,425 and the reserve (according to Glenn E Thomas) was $42,995. Then the dealer lowered the Buy It Now price to $43,425 and suddenly, somehow the reserve disappeared.

That's when Alex (aka Hitman from Challengertalk.com) pounced and won himself a 250-mile SRT8 for the crazy price of $29,100. Only thing is, of course, Glenn E Thomas didn't feel like taking a $14,000 bath and refused to honor the auction. Their argument was that they didn't intend to remove the reserve and, in fact, they may not have removed it. They contend that there may have been a glitch in eBay's software. Glenn Dodge did offer to meet Alex halfway, promising him a great deal on the Challenger of his choice, but Alex hung tough, demanding the car he won. It seemed as if the two sides had reached the kind of impasse that can only be settled by those of the lawyerly persuasion. But that was last week.

Yesterday, Alex updated his original post at Challengertalk.com with a picture of the keys to his new car and the following message:

First of all, "Thank You" to everyone for cheering me on and helping me move forward in a positive way. A lot of message boards picked up this thread and have to thank everyone for passing the word around too. There you have it. Visual of the keys in my possession of the SRT8 deal that Glenn E. Thomas Dodge honored for $29.1K plus tax and license fees of course.

Both parties had plenty to talk about that day but in the end of it all, things worked out for everyone. So there is praise to be made to both sides, especially the dealer who did honor the auction. Would encourage everyone to send them praise and not attack anyone in that establishment as this was not the point of this thread. I'm sure there will be questions on how things went down.

While swallowing a nearly $14,000 loss must be a bitter pill to choke down, we can all agree that in the end Glenn E Thomas did the right thing. Actually, they did better than the right thing, selling Alex a 2010 Challenger SRT8 rather than the 250-mile car he won in the auction. Put another way, in terms of positive publicity, this will turn out to be the best $14,000 they ever spent.

[Source: Challengertalk.com]

Wow: Dodge Dealer honors disputed eBay Challenger auction and then some originally appeared on Autoblog on Mon, 22 Mar 2010 14:27:00 EST. Please see our terms for use of feeds.

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Cadillac distancing itself from parent GM to elude bankruptcy stigma?

Jonathon Ramsey — Tue, 09 Mar 2010 14:29:00 EST

Filed under: Etc.

Cadillac XTS Concept - Click above for high-res image gallery

There's no way to misunderstand Cadillac spokesman Nick Twork on this: "The Cadillac brand is best communicated as Cadillac without GM." For proof of his intent all you'll need to do is swing by a Cadillac showroom where soon you'll be unable to find any trace of the words "General Motors" or any hint of marketing strategies like Red Tag Sales. Even Cadillac employees are changing their e-mails from @gm.com to @cadillac.com.

Cadillac's 2009 sales posted a slightly steeper drop than GM's overall decline, and this year the luxury brand is rebounding at about half the pace of GM overall, with a 14 percent rise vs. 31 percent for its parent. That doesn't mean we should assume that the perhaps unsavory associations with "Government Motors" is what's holding Cadillac back, but the brand doesn't want to leave anything undone in its quest to again be the best.

GM wants to move 140,000 Cadillacs this year, representing a 28 percent jump over last year's depressed figures. It's starting consumer research to figure out what buyers think of the brand, will soon reveal the first round of creative by its new ad agency Bartle Bogle Hegarty, and will introduce more leasing deals that luxury buyers are keen for. And neither it nor its dealers will bring up The Brand Which Must Not Be Mentioned. Hat tip to John!

Gallery: Detroit 2010: Cadillac XTS Platinum Concept

[Source: Bloomberg]

Cadillac distancing itself from parent GM to elude bankruptcy stigma? originally appeared on Autoblog on Tue, 09 Mar 2010 14:29:00 EST. Please see our terms for use of feeds.

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