February 9, 2015
Nissan Brings in Mexican Dealers
Nissan is pulling out a secret weapon as it pushes for more market share in the U.S.: Mexican car dealers. Not U.S. car dealers of Mexican or Hispanic ancestry, but retailers from Mexico, who Nissan believes can electrify certain markets across the United States. According to Automotive News, Nissan is helping to usher a number of Mexican retail groups into dealerships in California, Texas, and possibly Florida and Illinois as part of CEO Carlos Ghosn's drive to increase U.S. market share. "They are big dealer groups who have been very successful with Nissan, and they want to continue to grow with us," says Jose Munoz, Nissan's hard-charging chairman for North America. "To me, it's very good. We are leaders in Mexico, and I don't see us being limited by borders." It is a two-pronged strategy for Nissan. First, it wants to tap into a group of high-performing and fast-growing Mexican retail groups that last year delivered to Nissan an enviable 26.2 percent share of the Mexican auto market. Second, Nissan believes the timing could not be better to introduce Spanish-speaking sales organizations to select markets as Hispanic demographics explode across the U.S. For more on how Nissan is tapping into Mexican auto dealers, click here.
Auto Dealers Urged to Improve Protection of Buyer Data
As car-buying increasingly shifts to online research and purchasing, some industry groups are urging dealers to better protect customers’ personal information—things like Social Security numbers, bank accounts, phone numbers, and vehicle purchase history. According to The Detroit News, state and federal laws help dictate how customers’ information is stored and secured, and no dealer group has suffered a major hack. But mobile apps and car-shopping websites have increased the possibility. Dealers increasingly are turning to third-party software developers to create mobile apps and virtual showrooms to help sell cars. Studies say customers are doing more mobile shopping than ever before. While researching, studies have found that would-be buyers visit third-party sites—like AutoTrader, TrueCar, or Edmunds—51 percent of the time, and go to dealerships less and less. “There’s a lot of change in consumer behavior,” said Dave Winslow, chief digital strategist for Dealertrack Technologies, a company that provides software to dealers to develop their digital presence and is an AIADA Affinity Partner. Raj Sundaram, Dealertrack’s co-president, said customer data is in secure hands with his company. “All of that has been accounted for in all our (services). This is what we do; we know how to protect data.” Read more about what dealers can do to protect buyer data here.
Report Sees Weak Security in Cars' Wireless Systems
Serious gaps in security and customer privacy affect nearly every vehicle that uses wireless technology, alleges a report set to be released on Monday by a senator's office. According to CNBC, the report concludes that security measures to prevent hackers from gaining control of a vehicle's electronics are "inconsistent and haphazard," and that the majority of automakers do not have systems that can detect breaches or quickly respond to them. "Drivers have come to rely on these new technologies, but unfortunately the automakers haven't done their part to protect us from cyberattacks or privacy invasions," said Sen. Edward J. Markey (D-Mass.), whose office published the report after obtaining detailed information from 16 automakers. In November, the Alliance of Automobile Manufacturers and the Association of Global Automakers addressed consumer concerns by publishing a set of voluntary privacy principles aimed at limiting the use of vehicle data for marketing purposes. Wade Newton, a spokesman for the Alliance of Automobile Manufacturing, said "automakers believe that strong consumer data privacy protections and strong vehicle security are essential to maintaining the continued trust of our customers" and cited the November principles as a way that the industry was taking proactive steps. For more on today’s Senate report outlining potential vehicle security flaws, click here.
U.S. Car Exports Top 2 Million
U.S. auto exports hit a record for the third year in a row in 2014 as strong demand for U.S. made cars and sport-utility vehicles, especially in the Middle East and Asia, offset concerns about a strengthening dollar. According to The Wall Street Journal, the trend also was fueled by internationally-owned U.S. auto plants built in the U.S. Midwest and South that are now exporting more vehicles to other markets. Car makers including Toyota Motor Corp. and Honda Motor Co. that opened factories here to be closer to U.S. customers are now exporting too. Last year, about 2.1 million new cars and trucks were built in the U.S. and shipped to other countries, the first time auto exports topped 2 million. The total is an 8 percent increase over 2013 and a 73 percent rise from 2004, according to figures released on Thursday by the U.S. International Trade Administration. A big part of the increase stems from America-built Fords, Jeeps, BMWs, and even Nissans and Toyotas shipped overseas. A growing number of U.S.-made cars are now going to countries including China, Saudi Arabia, and South Korea. For more on last year’s export growth, click here.
Used Luxury Prices Take Biggest Hit in January
January was a great month for some models and not so great for others according to a Cars.com report on used-vehicle pricing increases and decreases. Auto Remarketing reports that the model with the largest percentage change for the month—based on Cars.com data on used-vehicle listings with model years ranging from 2012 through 2014—was the Chevrolet Express 1500, a full-size van, which saw a 4.8-percent pricing increase between the first and the end of January. Another Express variant, the 2500 model, also made it into the top-10 with a 2.9-percent increase in price, according to the Cars.com post authored by Mike Hanley. The model with the biggest monetary price increase, the Porsche Panamera, saw a $1,687 price upsurge last month, a 2.1-percent jump. On the other end of the spectrum, many luxury cars, along with a few small passenger cars, took big hits this past month. Most notably among them is the Mercedes-Benz S-Class, which saw a 4.2-percent price drop in January, a decrease of $2,757. Mercedes’ full-size luxury car was followed in the top-10 biggest drop list by three more German vehicles, all BMWs. For more on the January used vehicles that took the biggest hit in January, click here.
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