Autoblog

Mitsubishi leaving US? No, it's doubling its marketing budget

Jeffrey N. Ross — Tue, 12 Feb 2013 19:00:00 EST

Filed under: Marketing/Advertising, Mitsubishi, Earnings/Financials

We rarely hear any major news coming out of the National Automobile Dealers Association (NADA) annual meeting in Orlando, FL, but Mitsubishi executives found this a fitting place to announce a big push for increased advertising here in the US. A report in Automotive News states that the struggling Japanese automaker is returning to advertising in prime time television for the first time since 2005, with the push slated to begin in June and July for the launch of the 2014 Mitsubishi Outlander shown above.

Despite dwindling sales and a shrinking lineup, Mitsubishi's new North American chairman, Gayu Uesugi, has said on multiple occasions that the automaker has no plans to abandon the US market. Spending extra money on marketing and advertising should be a good start to help improve sales, but a lack of fresh and competitive products is also keeping showrooms empty. Aside from the new Outlander, the AN report says that Mitsubishi spokesman Roger Yasukawa said that a "yet-to-be-named subcompact" will arrive this year, which suggests the unnamed hatchback shown below (known elsewhere as the Mirage), could be heading to the US after its North American introduction at the Montreal Auto Show last month.

Mitsubishi leaving US? No, it's doubling its marketing budget originally appeared on Autoblog on Tue, 12 Feb 2013 19:00:00 EST. Please see our terms for use of feeds.

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Dealers confront carmakers over two-tier pricing, forced upgrades

Jonathon Ramsey — Thu, 25 Oct 2012 09:33:00 EST

Filed under: Car Buying

In a speech for the Automotive Press Association in Detroit, the chairman of the National Automobile Dealers Association (NADA), Bill Underriner, laid out the two most important issues it seeks to address with carmakers: two-tier pricing and compulsory dealership facility upgrades.

The former is more easily understood as bonuses for sales targets - sell X amount of cars, receive X amount of extra gravy from the carmaker. The bonuses also escalate, so that a certain sales target beyond X means a proportionally larger bonus than was had at the previous target. NADA's contention is that practice results in favortism that ignores the size and diversity of dealerships. Larger dealers can offer lower prices and sell more cars than smaller outlets, with the effect of potentially creating different pricing in the same markets, the bulk of the bonus money then going to the larger dealerships and improving their positions.

The second issue is about giving dealers a larger voice in the matter of "facility image programs," such as what dealers had to do to get the Fiat 500 and, more recently, the SRT guidelines about what dealers will be required to do in order to sell the new Viper. Building out a new showroom with mandated facilities can cost millions, and NADA wants earlier and more input into the programs to ensure they work on the local scale and that the changes endure. Said Underriner, "We want to know whether we are investing in the kind of dealership that will be most competitive in 2020 and beyond."

The dealer body has created task forces to investigate both issues. An NADA press release is below, Underriner's full speech can be found here.

Continue reading Dealers confront carmakers over two-tier pricing, forced upgrades

Dealers confront carmakers over two-tier pricing, forced upgrades originally appeared on Autoblog on Thu, 25 Oct 2012 09:33:00 EST. Please see our terms for use of feeds.

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Values of small used cars fall in lockstep with gas prices

Zach Bowman — Thu, 31 May 2012 09:15:00 EST

Filed under: Car Buying, Hybrid, Etc., Earnings/Financials

The Detroit News reports used small-car prices are plummeting right along with fuel prices. The news comes courtesy of a National Automobile Dealers Association study, which says gas prices have dropped an average of 3.5 percent compared to last year. In yet another shocking reminder of just how short buyers' memories can be, analysts predict light trucks will take home the largest share of car sales this month. Even so, used car sales in general are expected to fall off by around two percent. Truck sales, meanwhile, will likely only see a 1 percent dip.

Compare that to used compact and mid-sized models, which are expected to see their values drop by 2.4 percent. Dealers may have a hard time selling used hybrids in the coming months. That's good news for buyers who've been waiting to jump into a more fuel efficient model. After all, it's not a question of if gas prices will climb back up, but when.

Values of small used cars fall in lockstep with gas prices originally appeared on Autoblog on Thu, 31 May 2012 09:15:00 EST. Please see our terms for use of feeds.

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NADA: 7 million car buyers to be pushed out of the market by fuel economy rules

Dan Roth — Fri, 13 Apr 2012 13:45:00 EST

Filed under: Car Buying, Government/Legal, Earnings/Financials

If the National Highway Traffic Safety Administration makes its proposed 2025 fuel economy standards official, cars are going to be more expensive, and that's going to shut millions of buyers out, argues the National Automobile Dealers Association. "If the price of a vehicle goes up by the government estimate of almost $3,000," says David Wagner, an analyst for the NADA Used Car Guide, "millions of people will no longer be able to finance a new vehicle." The proposed standard is aiming for an average of 54.5 mpg for both cars and trucks by 2025, and is predicted to add $2,000 to the cost of a vehicle. Add to that the $1,000 or so that's going to be added to the price of vehicles as the current fuel economy requirements phase-in between now and 2016, and the $30,000 average price of a new car rises to the point where lower income buyers may not be able to qualify for financing.

If that happens, the net effect would be a reduction in the buyer pool for the more fuel efficient, cleaner cars these fuel economy regulations are intended to create. While the increased fuel efficiency is estimated to save average owners of $8,000 over the life of the vehicle (offsetting the higher monthly payments), if people can't afford the payments or secure lending, the total ownership cost will be a moot point. "Disregarding vehicle affordability will undermine the environmental and national security benefits the administration is seeking," says Doug Greenhaus, chief regulatory counsel for environment, health, and safety for NADA.

The government's 2017-2025 rules aren't yet final, and Grenhaus and NADA suggest the Obama Administration and NHTSA study the impact the rules will have on buyers before moving forward.

NADA: 7 million car buyers to be pushed out of the market by fuel economy rules originally appeared on Autoblog on Fri, 13 Apr 2012 13:45:00 EST. Please see our terms for use of feeds.

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NADA, J.D. Power shack up

Jonathon Ramsey — Thu, 12 Apr 2012 08:01:00 EST

Filed under: Etc.

J.D. Power and Associates created the Power Information Network (PIN) in 1993 to collect and analyze dealer transactions on new and used cars. Power uses the data from more than 10,000 dealerships to "improve business for automotive dealers, manufacturers, lenders, and other companies in the industry." The wider use of consumer data captured at the point-of-sale is what concerns dealers, and it's probably that reasoning which has led to the National Automobile Dealers Association (NADA) partnering with J.D. Power to codify how the information is used and to enhance its application.

It isn't yet spelled out clearly how the tie-up will alter the relationship between dealers and J.D. Power, but it appears to give the NADA a better position in the food chain and flow of customer data, and more protection for dealers and for the data itself. Follow the jump for a press release about the announcement.

Continue reading NADA, J.D. Power shack up

NADA, J.D. Power shack up originally appeared on Autoblog on Thu, 12 Apr 2012 08:01:00 EST. Please see our terms for use of feeds.

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NADA: Dealers most happy with Hyundai, Subaru and Lexus

Jeff Sabatini — Sat, 28 Jan 2012 16:03:00 EST

Filed under: Car Buying, Hyundai, Kia, Lexus, Mercedes-Benz, Subaru

Car dealers have a strange and oftentimes contentious relationship with the carmakers. Stories of automakers shoveling unsaleable models down the pipeline with unreasonable expectations are legion in the car sales world. With the number of family-owned, single-brand dealerships dwindling, dealers often field competing franchises. The concept of loyalty is as quaint as a Lincoln Town Car. So it's worth noting the automotive brands that are actually liked by the guys selling them.

The National Automobile Dealers Association conducts its Dealer Attitude Survey twice each year, and results from the summer survey are in. Hyundai stayed on top for the third time in a row, followed by Subaru, Lexus, Kia, and Mercedes-Benz. The survey measures three factors: "franchise value, automaker policy decisions that affect the dealership and the automaker's field staff who visit dealerships."

Sixth place went to Toyota, while Volkswagen, Porsche, and Audi followed. Cadillac and Honda tied for tenth. NADA received responses from over 14,700 dealerships, representing almost 54 percent of all dealers nationwide.

Click past the jump to read the full press release.

Continue reading NADA: Dealers most happy with Hyundai, Subaru and Lexus

NADA: Dealers most happy with Hyundai, Subaru and Lexus originally appeared on Autoblog on Sat, 28 Jan 2012 16:03:00 EST. Please see our terms for use of feeds.

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UAW President Bob King pumped about new CAFE standards

Dan Roth — Wed, 18 Jan 2012 15:30:00 EST

Filed under: Car Buying, Etc., Government/Legal, UAW/Unions

Bob King, President of the United Auto Workers, is adding his voice to those who have already chimed in with support for the new Corporate Average Fuel Economy standard of 54.5 miles per gallon by 2025. In what might be a historic break from the union's contentious past, King is throwing in for the new fuel efficiency rules because he thinks it will mean jobs for his members as the auto industry reacts to the mandate.

In the past, such a decree could have meant much wailing and gnashing of teeth from both the automakers and labor unions. Instead, The Detroit News reports King told a meeting of representatives from the Environmental Protection Agency and Nathional Highway Traffic Safety Administration "We are excited about the new green technologies that are being developed in the United states and produced in UAW-represented facilities." King went on to praise the rules as a change that will save people money at the gas pump and reduce pollution.

The proceedings in Detroit weren't all smiles, however. Don Chalmers of the National Automobile Dealers Association expressed worry that the technology to make the fuel efficiency goal possible will tack on between $3,500 to $5,000 to the price of new vehicles, squeezing buyers with low cashflow or difficult credit inordinately. Still, the surprising bout of rainbows and puppy dogs that this latest CAFE requirement has engendered may be a harbinger of a new attitude all-around, as long as dealers can figure out how to put buyers into the newly efficient cars that automakers and labor leaders are so pleased to be creating.

UAW President Bob King pumped about new CAFE standards originally appeared on Autoblog on Wed, 18 Jan 2012 15:30:00 EST. Please see our terms for use of feeds.

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NADA and banks working to curb new federal oversight efforts

Jeff Glucker — Wed, 25 May 2011 17:32:00 EST

Filed under: Car Buying, Government/Legal

In 2010, the Federal Trade Commission received 1,339,265 complaints. According to the National Automobile Dealer's Association, less than one percent of those complaints were related to new or used auto sales. That relatively low number (compared to the 250,854 people who complained of identity theft) has NADA upset over the government's decision to pursue the creation of an automotive lending consumer advocacy agency.

NADA has given its official support to the congressional Republicans who are looking to put the clamps on this new oversight group.

This agency will be formed as part of legislation that seeks to simplify auto loan disclosure forms, and the entire process of borrowing money to obtain a new set of wheels. On the contrary, NADA believes this advocacy agency could lead to financing abuses related to the level of power granted to those in charge.

NADA and banks working to curb new federal oversight efforts originally appeared on Autoblog on Wed, 25 May 2011 17:32:00 EST. Please see our terms for use of feeds.

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Report: Ex 'car czar' Rattner forcasting 14M sales this year

Jeff Glucker — Thu, 27 Jan 2011 08:32:00 EST

Filed under: Car Buying

Steven Ratner, the ex-Car Czar, has a healthy prediction for US automotive sales this year. Ratner believes the magic number will be 14 million for 2011. In 2012, the number will climb to 15 million, per Ratner's estimates. Why the optimism?

Ratner sees shrunken fleets, improved business conditions in Detroit and signs of sustained recovery in the US economy. Prior to ousting Rick Wagoner at General Motors, the automaker would only be able to make a profit in an environment when 16-17 million cars were being sold. Now they have been reworked and profits can be produced from 10-11 million sales per year. Ratner believes that Chrysler is following the same pattern as well.

If Steven Ratner's estimates are true, it would be a strong sign that our economy is heading in the right direction. For what it's worth, the National Automobile Dealer Association analysts are predicting a more conservative climb to just under 13 million units sold in 2011. Who will be correct? Who knows... but if either prediction comes true, we'll be in better shape than we were just a few years ago.

[Source: Ward's Auto | Image: Neilson Barnard/Getty]

Report: Ex 'car czar' Rattner forcasting 14M sales this year originally appeared on Autoblog on Thu, 27 Jan 2011 08:32:00 EST. Please see our terms for use of feeds.

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NADA projects 11.3% rise in auto sales in 2011

Jeff Glucker — Sun, 09 Jan 2011 12:05:00 EST

Filed under: Car Buying, Etc.

The US Auto Industry may be looking at a 2011 filled with sales gains, if NADA's forecasters are correct. The National Automobile Dealer's Association predicts that US auto sales will rise 11.3 percent. That puts total volume just shy of 13 million units.

The reason for the increase? The average age of cars and trucks on the road is approximately 10.3 years. Therefore, the increased sales will be driven by consumer needs rather than desires. Basically, people will have to upgrade their heaps for something shiny and new (and running).

[Source: Automotive News - sub. req. | Image: Kevork Djansezian/Getty]

NADA projects 11.3% rise in auto sales in 2011 originally appeared on Autoblog on Sun, 09 Jan 2011 12:05:00 EST. Please see our terms for use of feeds.

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NADA adds 'Rough' and 'Average' categories for trade-ins

Jeremy Korzeniewski — Sun, 07 Sep 2008 09:03:00 EST

Filed under: Car Buying

It's no secret that the used car market is in a state of flux. As gas prices rise and fall, so does the value of the car currently sitting in your driveway, waiting to be traded in. To help dealerships assign a fair value to your car, the National Automobile Dealers Association has added two new categories for wholesale vehicle market. The new categories are "Rough" and "Average" and they join "Clean Trade-In," "Clean Loan" and "Clean Retail" as options for your ex-vehicle to fall into.

According to NADA, roughly half of all trade-ins will fall into the newly established "Average" category. As you might imagine, "Rough" vehicles have seen a bit more wear and tear than is typical. Then there's the good old "Salvage" bucket for cars which have seen much better days. You won't necessarily know what bucket a dealership is assigning to your particular vehicle as these categories are to be used in the wholesale market only. Still, the dealership is keenly aware that it may need to rid itself of your trade-in and the business-to-business market may be its best bet. In other words, you may be indirectly touched by these new standards.

[Source: NADA]

Continue reading NADA adds 'Rough' and 'Average' categories for trade-ins

NADA adds 'Rough' and 'Average' categories for trade-ins originally appeared on Autoblog on Sun, 07 Sep 2008 09:03:00 EST. Please see our terms for use of feeds.

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