Trade News – Page 177

Swope’s path to better F&I? Collaboration

Jennifer Swope was convinced the F&I departments at the six stores owned by the Swope Family of Dealerships had untapped revenue potential.

The main obstacle? Silos.

From her perspective, each finance department worked independently with little collaboration, even though five of the stores are close to each other along what's known at Swope as the Miracle Mile on Dixie Avenue in Elizabethtown, Ky.

So Swope, who is general manager of Swope Hyundai and Genesis of Elizabethtown and also the granddaughter of the company's co-founder, Bill Swope, demolished those silos.

Her wrecking ball? Monthly meetings with the company's eight finance managers and six general managers.

Held on the first or second Friday of each month at Swope Toyota in Elizabethtown, the 90-minute meetings, which began in September 2020, have boosted revenue.

The companywide average F&I profit per vehicle retailed profit per vehcile retailed in 2021 increased…

GM to include dealers in vehicle software sales

General Motors will include its franchised dealers — and compensate them in some form — as part of its strategy around future software sales after a vehicle purchase, executives said.

GM is developing its approach toward the sale of vehicle software and services in conjunction with its dealer councils and boards, GM North America President Steve Carlisle said in an interview at the NADA Show. The automaker is drawing on its experience with its OnStar in-vehicle safety and security service.

Carlisle said GM is working on a financial aspect to the relationship with dealers, possibly as a commission or some other structure, but added that he would not call it revenue sharing.

"Whatever the product is, the dealer channel is a very effective sales and marketing channel. So that's the spirit in which we enter into it," Carlisle said.

He added: "Given that it is a very effective sales and marketing channel, then, obviously, there's a recognition of tha…

Toyota execs talk launches, franchise dealer model to packed house

For the first time in years, the Toyota and Lexus make meeting would have been standing room only on Friday.

Would have been, that is, if local police and fire officials had allowed all the dealers in who wanted to attend, instead of leaving many standing outside in line while the doors closed to a packed house.

Toyota executives told Automotive News they had requested NADA move their make meeting from Sunday to Friday of convention weekend, after attendance in previous years had dwindled to fewer than 200.

That plan worked and then some, with the meeting's 450 chairs completely occupied even after nonspeaking Toyota executives in attendance were asked to leave to make room for more dealers.

Even then, a handful of dealers and others were still standing in line after the doors were closed, having to wait for someone to exit before they could go in. At least some of those in line abandoned the effort.

Inside the meeting, dealer…

Audi aims to increase leasing, CPO sales

Audi plans to work with its dealers to improve leasing rates in 2023 as inventory levels start to rebound after years of supply chain disruptions.

The brand told dealers its leasing rates have plummeted by roughly half since 2019, according to Brett Morgan, CEO of Morgan Automotive Group in Tampa, Fla., which includes one Audi store. He said the Audi make meeting Friday focused heavily on the desire to boost leasing and increase certified pre-owned sales.

“It was a pretty positive meeting,” Morgan said.

Michelle Primm, dealer principal at Audi Cuyahoga Falls near Cleveland, also said leasing and CPO sales were big topics. She noted that the brand is more open to working together with its retail network than in the past.

The collaboration between Audi and the dealer body has never been stronger,” Primm said. “Traditionally an OEM would identify a problem, come up with a solution and then tell the dealers what they’re going to do. That’s not…

Mercedes reports upcoming models, new dealer support model

Mercedes-Benz has significant fresh models coming to showrooms this year, it told dealers at the make meeting — a meeting in which some lamented they are frustrated they can’t get the inventory they want.

Mercedes’ luxury products are chock-full of technologies and features and, like other manufacturers, shortages of critical semiconductors to create dealer orders.

“We’re already in a much better shape than we were 12 months ago,” said Senol Bayrak, Mercedes vice president of sales, after the meeting. “But we do face challenges, and we’re working to make our whole value-added chain more efficient in getting cars from the factory to dealers.”

The company told dealers at the meeting that a redesigned GLC SUV will arrive in the first half of this year. The GLC is the brand’s No. 1 selling nameplate. The new EQE SUV will also reach dealerships this year.

Mercedes also reported on the launch of a new networkwide support model for dealers that i…

Column: EV tax credit needs a portal

The EV tax credits under the Inflation Reduction Act are a mess: The eligibility of vehicles is opaque at best.

Even when the rules are written, they will still be very complex — limited by where the vehicle is made, where its battery components come from, where the minerals for the batteries came from, its classification. And that’s before we get to whether the customer qualifies for one credit or another.

It’s too much to expect of the mass-market consumer. What we need is a computer.

Call it a website, call it a portal. Whatever. We need someplace we can go to find out if a vehicle qualifies for a $7,500 credit, a $3,750 credit or nothing.

It’s going to have to be VIN-specific, because some models are made in different places or equipped differently in ways that regulators deem crucial, like whether an ID4 has all-wheel drive or rear-wheel drive.

Ultimately, each vehicle is unique.

“Having one central location for that data, we th…

Mazda looks to roll out PHEVs over EVs

When Mazda’s larger three-row CX-90 crossover goes on sale this year, it will be the brand’s first offering of a plug-in hybrid powertrain in the U.S.

Mazda told dealers at their make meeting Friday that growing its PHEV business in the U.S. is a priority, and it will happen before the brand commits to pure battery-electrics like many rival automakers.

Jim Scherer, chairman emeritus of the Mazda National Dealer Advisory Council, told Automotive News outside the meeting that Mazda’s plan to focus on plug-ins first is more aligned with current market demand.

“I think introducing PHEVs at the time that we’re going to fits our brand perfectly,” said Scherer, owner of Scherer Mazda in Peoria, Ill.

“Most of our vehicles right now are set up to have a PHEV segment, and as we just learned, we will get up to 25 percent of production,” Scherer said of the U.S. market.

The CX-90 and CX-70 will have PHEV variants, Scherer said. “But looking at Mazda’…

Here come the small electric pickups

Having zipped from six-figure sedans to Costco-crushing crossovers, electrification is finally zeroing in on the auto industry's most esoteric form: the tiny pickup truck. At least two major carmakers are considering adding small, battery-powered pickups to their growing parade of EVs.

At General Motors Co., spokesman Stuart Fowle says a pint-sized pickup is one of several electric options mocked up by a team of engineers and designers focused on developing affordable models, though "at this point it's simply a design proposal." "There are still some steps before anything moves to production consideration," he says.

Nissan Motor Co., meanwhile, is eyeing its next wave of EVs and has promised to make two battery-powered models at its Mississippi plant. The first is the Ariya EV, which just hit the market. As for the second, advisory board member Tyler Slade reportedly said an electric version of the brand's Frontier pickup would be logical. A Nissan spokesman ca…

Ford recalls more than 462,000 crossovers globally for faulty rearview cameras

WASHINGTON — Ford Motor Co. is recalling more than 462,000 vehicles globally for rearview cameras that may not display images.

The recall covers Ford Explorer and Lincoln Aviator large crossovers from the 2020-23 model years and Lincoln Corsair compact crossovers from the 2020-22 model years, all equipped with a 360-degree camera. It affects nearly 383,000 vehicles in the U.S., more than 39,000 in Canada and more than 5,000 in Mexico, Ford spokeswoman Maria Buczkowski said.

Ford told U.S. auto safety regulators it is aware of 17 minor accidents allegedly resulting from the defect. It is not aware of any injuries.

"Recalls are an important way for us to keep our customers safe and with every recall we want to make the experience of getting serviced easier on our customers," Buczkowski said in a statement to Automotive News. "With this recall, customers will be able to take advantage of mobile service free of charge with participating dealers to get the so…

New Toyota CEO Koji Sato faces big challenges in critical new era

TOKYO – The man replacing Akio Toyoda as the new CEO of Toyota Motor Corp. is a cosmopolitan car-guy engineer with an eye for luxury and a thirst for speed.

In fact, in many ways Koji Sato is a mini-me version of his long-time mentor.

As the head of the Lexus premium brand and Gazoo Racing motorsports division, Sato's mission was to break the boring-old Toyota mold by developing fun-to-drive cars that are stylish and cool. He succeeded by channeling Akio's encouragement to take risks and stir things up.

"President Toyoda always told us it's OK to fail," Sato said after being tapped as the next CEO from April 1. "If you never test your limits, then new creations are never born."

Sato's new challenge will be applying that mindset to the whole company.

He must not only navigate a largely hidebound legacy metal-bender through an industry under siege by electrification, autonomous driving and connectivity. As the new boss, Sato must transform t…

GM, Ford must convince investors they can profit as prices fall

General Motors Co. and Ford Motor Co. are expected to report strong profits for 2022 next week, powered by premium-priced pickup trucks and crossovers.

Now, the Detroit rivals must convince investors that last year's profit formula can keep working when costs for EV batteries are rising, high interest rates are cutting consumer purchasing power, and Tesla Inc. is slashing prices.

Already there are signs the Detroit automakers are scaling back spending to offset competitive and economic pressure. GM and LG Energy Solution have shelved for now plans to build a fourth EV battery plant in North America.

Ford is in talks with German unions to cut thousands of jobs in its European operations and possibly sell a German vehicle assembly plant. In October, it stopped funding autonomous vehicle affiliate Argo AI.

GM and Ford both rely on sales of pickup trucks and crossovers in the United States for the bulk of their global profits. This year, both automake…

Tesla, insurers take different paths to deal with expensive repairs

Tesla Inc.'s electric vehicles are expensive to repair - so much so that the automaker and insurers are addressing the issue in sharply different ways.

Chief Executive Elon Musk says Tesla is making design and software changes to its vehicles to lower repair costs and insurance premiums.

Insurance carriers, meanwhile, are writing off low-mileage Tesla Model Ys that have been in crashes, and sending them to salvage auctions after deeming many too expensive to repair.

During Tesla's fourth-quarter earnings call on Wednesday, Musk said premiums from third-party insurance companies "in some cases were unreasonably high" and that the EV maker's insurance arm was putting pressure on those carriers by offering lower rates to Tesla owners.

Musk also said "we want to minimize the cost of repairing a Tesla if it's in a collision," citing changes to vehicle design and software.

"It's remarkable how small changes in the design of the bumper (and) provi…