May 11, 2016
AIADA Names Grassroots Leadership Award In Honor of California Dealer Fritz Hitchcock
The American International Automobile Dealers Association (AIADA) on Tuesday renamed its Grassroots Leadership Award in honor of California auto dealer Fritz Hitchcock, who was also named as its first recipient. The award was presented during AIADA’s 10th Annual International Auto Industry Summit in Washington, D.C., and recognizes Hitchcock’s efforts in engaging elected officials and other policymakers on the issues important to the international auto dealer community. “I can’t think of anyone who has been so deeply involved in advocating for America’s international franchise dealer community with legislators and policymakers,” said AIADA President Cody Lusk. “Naming the award in Fritz’s honor should inspire other dealers to take the same proactive role he has in building relationships with legislators and ensuring they know about our industry.” A former Chairman of the California Chamber of Commerce, Hitchcock is the owner and operator of three Southern California auto dealerships: Puente Hills Toyota, Northridge Toyota, and Toyota of Santa Barbara. He served as Chairman of AIADA’s Board of Directors and was a co-founder of the Automotive Free International Trade Political Action Committee (AFIT-PAC). Read more about AIADA’s first Fritz Hitchcock Grassroots Leadership Award here.
VW Said to Be Near Fix for 3.0 Liter Audi, Porsche Diesels
Volkswagen AG is closing in on a fix for 3.0-liter diesel-powered vehicles in the U.S. that would resolve part of its emissions-cheating scandal and reduce the risk of an expensive buyback program, reports Automotive News. The ongoing talks focus on ironing out final technical details and reviewing test results to ensure the reliability of a software upgrade, said the people, who asked not to be identified because the discussions are private. A new catalytic converter may accompany the upgrade to overcome concerns over the issue, which affects about 85,000 Audi, Porsche and VW vehicles. While a recall plan for the 3.0-liter diesel engines was proposed in February, an agreement has been delayed as Volkswagen and U.S. regulators focus on the issues affecting about 480,000 vehicles with smaller engines that were deliberately rigged to pass official emissions tests. The ultimate timing of an agreement on 3.0-liter diesels depends on a broader settlement over the cheating scandal in the U.S., the people said. Representatives for Volkswagen and the EPA declined to comment. Volkswagen faces a June 21 deadline in the U.S. to finalize an initial agreement to fix or buy back 2-liter diesel-powered cars. For the latest on VW’s efforts to find a fix for some of its diesel models, click here.
Nissan Adds a Sustainability Chief
Nissan Motor Co. has appointed its first chief sustainability officer, charged with leading the Japanese carmaker on such issues as resource conservation, vehicle safety, quality, and fuel efficiency. According to Automotive News, Senior Vice President Hitoshi Kawaguchi, 62, was previously in charge of corporate social responsibility, global external and government affairs as well as Japan communications. He becomes the carmaker’s sixth “chief” officer under CEO Carlos Ghosn. His promotion, effective last month, was announced today in Japan. Kawaguchi adds the sustainability role on top of his previous duties and reports directly to Ghosn. The new position aims to emphasize and align sustainability efforts with the company’s overall corporate strategy, Nissan said. Kawaguchi joined the company in April 1976 and spent his earlier years in product planning at multiple postings in Europe. He graduated from Japan’s Hitotsubashi University with a degree in economics. Nissan’s vision for sustainability tackles such issues as addressing climate change, rapid urbanization, transportation for the aging, and vehicle safety. It also covers developing a skilled and diverse work force and philanthropic programs. For more on Nissan’s new sustainability chief, click here.
Finding the Best Crossover SUV Deals
There’s no question that crossover SUVs are the hottest things going in the automotive business these days, reports Forbes. With 395,719 units sold last month, they represent the largest segment of the automotive market, handily beating midsize cars (285,806), small cars (259,573), and pickup trucks (232,647) on the showroom floor. Compact-size crossovers are the most popular models, with the Toyota RAV4, Honda CR-V, Ford Escape, Nissan Rogue, and Chevrolet Equinox leading the pack in terms of volume. In fact the segment has become so popular that automakers created a new sub-segment of subcompact crossovers over the last couple of years to help meet the demand, which includes the recently introduced Fiat 500X, Honda HR-V, Jeep Renegade, Mazda CX-3, and Jeep Renegade. With down payments and monthly installments typically less than with buying a new-vehicle outright, automakers and dealers love leasing in that it ensures a steady inventory of low-mileage off-lease used models down the road. Click here to see Forbes’ list of the best crossover SUV lease deals right now. For more on these lease deals, click here.
Hyundai, Lexus Earn Top CPO Program Honors
According to Auto Remarketing, Hyundai and Lexus took top honors in the non-luxury and luxury categories, respectively, during Autotrader’s recent analysis of the best certified pre-owned vehicle programs. “The No. 1 benefit of any CPO program is the warranty, so we decided that the length of warranty should be the top criteria when choosing this year's Best CPO Programs," Brian Moody, executive editor at Autotrader, said in a news release. “Hyundai's CPO warranty is an extension of its exceptional new car warranty, and Lexus's warranty is simply the best in the luxury category.” Hyundai’s CPO warranty offers five years or 60,000 miles of bumper-to-bumper limited coverage and 10 years or 100,000 miles of powertrain coverage from the car’s original sale date. The warranty offers a relatively low deductible of $50, and it is fully transferable to subsequent owners in a private sale. Meanwhile, Lexus’s “L/Certified” program offers limited bumper-to-bumper coverage for up to six years and unlimited mileage from vehicle’s original sale date. There is no deductible for covered repairs, and the program offers complimentary maintenance covering the next four factory-recommended services for two years or 20,000 miles. For more on Autotrader’s picks for top CPO programs, click here.
Technology is Evolving: Is Your DMS Keeping Up?
Technology has become better, faster, and more accessible. However, many dealers don't feel their DMS solution has kept pace with the latest technology advancements. Join AIADA's May AutoTalk webinar on May 17th at 10:00 a.m. and 4:00 p.m. EDT to hear what dealers want from their DMS solution, such as easy, real-time access to data, mobile accessibility, and simple third-party integration. Learn how the latest DMS technology transforms pain into profitability. To register for the 10:00am EDT session, click here. To register for the 4:00pm EDT session, click here.
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Technology is Evolving: Is Your DMS Keeping Up? [Free Webinar]
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Kia Sportage Gets a Stylish Makeover [NY Times]
BMW 750i: Even MOre Than the Sum of Its Parts [WSJ]