March 23, 2016
Once Shoppers Visit Dealership, Most Don't Change Their Minds
More often than not, when a consumer first sets out to start the car-shopping process, he or she has an open mind. To change the shopper’s mind, you had better do it before he or she sets foot on a dealership lot, reports Auto Remarketing. According to inaugural Car Buyer Journey study commissioned by Autotrader and conducted by IHS Automotive, six out of every 10 car buyers are open to various makes and models when they first begin looking for a car. What’s more, more than a third (36 percent) of folks who ended up buying new actually considered new cars and used cars. Likewise, 55 percent of used-car buyers were open to both new and used cars. But here’s the rub. Once they step on a lot, it’s probably too late to change their minds. According to Autotrader, 71 percent of consumers said they bought the car they initially planned on purchasing once they visited a store. “The study findings reinforce why it is so important for dealers to communicate on experience in addition to product and price,” Cox Automotive Media president Jared Rowe said in a news release with the study. For more on car buyer behavior, click here.
Honda Details $52 Million Plan to Add CR-V Output at Indiana Plant
Honda will invest $52 million in its Greensburg, Ind., assembly plant to add output of the popular CR-V compact crossover by early next year, the automaker said Tuesday. Automotive News reports that about $40 million will go toward upgrading the manufacturing site to allow for CR-V production, while another $12.4 million will be spent on a 20,000-square-foot training center for manufacturing skills classes. The 1.3 million-square-foot plant will continue to produce the Honda Civic compact sedan, the automaker’s third-highest-selling vehicle in the U.S. The plant, which is southeast of Indianapolis, has produced 44,579 Civics through February this year, a year-over-year rise of 38 percent. The investment comes as demand for crossovers and SUVs remains hot industrywide. Honda sold 345,647 CR-Vs in the U.S. during 2015, a 3.2 percent increase over 2014. The CR-V was the top-selling crossover in the U.S. in 2015. Honda last invested in the Indiana factory in 2012 when $40 million was spent to increase capacity. Honda will receive up to $1 million in conditional tax credits and training grants from the Indiana Economic Development Corp., according to a statement on Gov. Mike Pence’s website. For more on Honda’s plans to add CR-V output in Indiana, click here.
Mercedes Premieres GLC Coupe Crossover
According to The Detroit News, Mercedes-Benz introduced the 2017 GLC Coupe crossover in New York Tuesday night — a sporty version of its popular GLC “small SUV.” Unveiled on the eve of New York auto show media days, the GLC Coupe continues German manufacturers’ expanded menu of SUVs as they try to feed America’s unquenchable thirst for luxury utes. For the first time in the United States, Mercedes is also showing performance “AMG43” versions of both the GLC Coupe and regular, boxier GLC. The often-confusing, alphamumeric alphabet soup differentiates the luxury maker’s products in the SUV and sedan classes. “GL” designates crossovers, while “CLA” refers to Mercedes’ entry-level sedan — followed by larger C-, E- and S-class sedans. “AMG” meanwhile, designates Mercedes’ performance models. So an AMG GLC43 SUV refers to the performance version of the brand’s small ute. Adding to the confusion, the eye-catching GLC Coupe is not a two-door “coupe” in the classic sense, but a four-door with a coupe-like appearance. The GLC has similar lines to the larger, GLE Coupe.. The GLC Coupe will come standard with Mercedes’ signature 4MATIC all-wheel drive system and a nine-speed automatic transmission. For more on Mercedes’ new GLC Coupe, click here.
New Cars to Avoid in 2016
Today’s new cars just aren’t what they used to be, and Forbes means that positively. That’s because it’s become increasingly difficult to find a truly and terrifically bad car, truck, or crossover sitting on a dealer’s showroom floor. And yet the proverbial cream still rises to the top. Some models lead while other lag with regard to their designs, measurable performance attributes, and the degree to which their buyers are ultimately satisfied. Some are plagued by questionable reliability and/or poor resale values, while others are saddled with dated designs and/or technology. To that end, Forbes spent considerable time wading deep into assorted data from various sources to put together a baker’s dozen list of cars, crossovers, and SUVs that, while many possess positive qualities, remain also-rans in a highly competitive marketplace. For the purposes of this analysis, Forbes has identified models that not only receive below-average overall ratings, including road test performance and customer satisfaction, from Consumer Reports, but are likewise among what the magazine’s reader surveys suggest will be the least reliable models over time. Click here for a slideshow. To read more about which cars to avoid this year, click here.
Buy-Sells Reshuffle Dealership Rankings
One of the busiest buy-sell years ever led to reverberations throughout Automotive News' annual proprietary list of the top 150 dealership groups based in the U.S., as ranked by new-vehicle retail unit sales in 2015. The auto-retailing industry's consolidation prompted some groups to move up the list, some to appear on the list for the first time, and others to drop off the list. The churn reflects a number of influences: a generational shift as some older dealers decided to sell their businesses and retire; larger groups' continuing to strategically buy (and shed) stores; sky-high prices that tempted more sellers to come to market; and, perhaps most particular to 2015, the entry of a new breed of buyers financed by wealthy investors and private equity funds. Take RFJ Auto Partners. The Plano, Texas, group is backed by private equity firm Jordan Co. It wasn't even on last year's list. But as a result of its rapid-fire acquisition plan, RFJ debuted on the list this year at No. 49 with retail sales of 19,135 new vehicles in 2015 at its 27 dealerships. For more on this year’s list of top dealership groups at Automotive News, click here.
Dealers United: Join AIADA at the 10th Annual International Auto Industry Summit
Make plans today to unite with other dealers in support of the international auto industry this spring at AIADA's 10th Annual International Auto Industry Summit. Happening on May 10-11, in Washington, D.C., AIADA's 10th Annual International Auto Industry Summit will help you understand what you can do to unite with other dealers in defense of your business. This year's event will feature a special congressional lunch on Capitol Hill, an industry executive panel discussion on the future of the auto franchise model, and engaging speakers like Gen. Stanley McChrystal, former commander of U.S. and international forces in Afghanistan; political prognosticator Stuart Rothenberg; and pollster and communications professional Dr. Frank L. Luntz, this year's event is one you don't want to miss. Register for this unique, 24-hour event by clicking here.
If you're attending NADA's convention in Las Vegas, make time to attend AIADA's 46th Annual Meeting and Luncheon. Held Sunday, April 3, the 46th Annual Meeting and Luncheon will feature keynote remarks by Toyota North America CEO Jim Lentz, who will share his vision for Toyota and America's international nameplate auto industry in the years ahead. Don't wait—register today for AIADA's 46th Annual Meeting and Luncheon by clicking here. For more on AIADA's upcoming events, visit AIADA.org/events.
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Vintage Cars and Their Legacy [WSJ]