Brooke C Furniss

With a nearly triple-digit days' supply, Nissan Motor Corporation is letting its retailers advertise vehicle prices below invoice — the first time the automaker has done so widely since before the pandemic. From May 1, dealers can market nearly the entire 2024 model year lineup at up to 10 percent below invoice, Nissan said last week in a memo obtained by Automotive News. The aging Armada may be advertised up to 15 percent below invoice. Nissan is betting lower prices will stoke flagging consumer interest and persuade shoppers to come into its stores. Retailers like the plan. They just don't want to be the ones paying for it. "Nissan is saying, 'We can't afford to be in the market, so you need to be. The responsibility has been moved from the factory to us." Other retailers welcome the relaxed advertising rules. "We want more flexibility to make better deals and get more traffic into the stores.” Cox Automotive Inc.

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Thanks to Jamie Butters of Automotive News for joining us this week. #CarStuffPodcast #Tesla #FSD #Luxury #Podcast

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Michigan dealership group takes branding to the skies with hot air balloon. Zeigler Automotive Group goes above and beyond to spread the word about their dealerships. Literally. Flying high above billboards and car lots, a hot air balloon emblazoned with the name of the Kalamazoo, Mich., dealership group dances through Midwest skies every summer. In an increasingly competitive market following the inventory shortage, Zeigler's balloon advertising strategy is to connect positive emotions with their brand, said Sam D'Arc, Zeigler's COO. "We buy from people that we trust and that we have an emotional connection with. That is what the balloon does," D'Arc said. "I have never seen someone watching a hot air balloon who doesn't have a smile on their face." The dealership group bought the custom balloon in 2021 for about $75,000 and it will last about 15 years, CEO Aaron Zeigler said. Pilot Derrick Jones flies it almost every weekend from May to October at dealership grand openings, balloon shows, charity events and more. Jones typically takes two passengers at a time for trips that last about an hour. Riders range from Zeigler staff to clients to members of the public who bid for the opportunity at charity auctions. Many people also post pictures of it on social media when they see it overhead. "It is singular in its ability to engage with communities," D'Arc said. Memorable marketing The balloon is a key piece of branding as the dealership group grows, Zeigler said. It added six stores last year, bringing its total to 41, and retailed 20,644 new vehicles. Zeigler ranks No. 45 on Automotive News' list of the top 150 dealership groups based in the U.S. Jones, who also is the director of Zeigler's Maserati, Alfa Romeo and Fiat dealerships in Grandville, Mich., sees firsthand how the balloon creates a "circle of brand and marketing," he said. "If people are thinking about the Zeigler balloon, they think of Derrick. And if they are looking for a car, I usually get a call, text or email saying: 'My uncle, my neighbor, my friend, my coworker is looking for a vehicle,' " Jones said. "People just don't forget about it — it's memorable." It is tricky to calculate any direct return on investment for the balloon, D'Arc said. But the auto group is counting on the balloon's unique ability to inspire joy, loyalty, and brand awareness. "You cannot buy a bigger billboard," D'Arc said. "And it's traveling, so everyone who sees it is pointing it out to people." Team becomes crew Being a top performer at Ziegler could mean the chance to travel to the top of the skies. The dealership group uses balloon rides as an incentive for team members, Zeigler said. It is a rare opportunity for employees and their family members so it brings out people's competitive sides.

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🔥🚙 🚀Used Car Managers, General Managers, Dealer Principals, and Automotive Professionals 🚗🔥🚀 YOU CAN TAKE MARKET SHARE! This Friday, August 9th starting at 9AM EST/ 6AM PST... John Ellis, Brian Kramer, David Long, Jasen Rice, and more of automotive’s brightest minds share the latest industry trends, sales strategies, and insider tips to ensure your dealership dominates the competition and leaves them in the dust. David Long’s All Things Used Cars. Jump in the conversation or be a 🪰on the wall like me! Either way, you'll walk away with profit-boosting insights to grow your bottom line immediately. 💰💲💵💪🤑 Look in the comments for a link to RSVP. You'll be texted a reminder once the room opens up. #AutomotiveIndustry #cardealers #usedcarsales #newcarsales

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🔥🚙 🚀Leaders, Managers, Dealer Principals, and Automotive Professionals 🚗🔥🚀 WARNING: This topic is going to be so hot we need to have a firefighter present at all times. 🔥👨‍🚒🚒🧯😃 This Friday, June 21st, starting at 9AM EST/ 6AM PST... David Long leads an hour long conversation with John Ellis, Brian Kramer, Brian Miller, Alex Flores, and more of automotive’s sharpest minds as they discuss how progressive discipline can transform your workplace culture, enhance employee performance, and foster a fair and supportive environment within your organization. David Long’s All Things Used Cars. Jump in the conversation or be a 🪰on the wall like me! Either way, you'll walk away with profit-boosting insights to grow your bottom line immediately. 💰💲💵💪🤑 Look in the comments for a link to RSVP. You'll be texted a reminder once the room opens up. #AutomotiveIndustry #LeadershipDevelopment #EmployeePerformance #WorkplaceCulture #ProfitBoostingInsights

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What is your daily holding cost for Pre-owned and New inventory? Probably on the average of $60 - $100 per day. Time is money and each day a vehicle sits in your recon or PDI process, it costs you CASH. For over 14 years, Rapid Recon has helped dealers across the globe reduce the CASH DRAIN by driving vehicles to the front line FASTER. If you are taking 6-10 days to get vehicles to your front line, that's too slow. If you feel the need for speed, give us 30 minutes to show you why Rapid Recon is the King of Speed! Give me a call or text to 757.685.2916. We have value added solutions for both Preowned Recon and New Vehicle PDI. https://lnkd.in/d9_4RN4

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It's 2024, and cars are talking! 🚗 Exciting insights from Detroit Moves as HAAS Alert interviews individuals on safety and connected vehicles. Check out the interviews here: https://lnkd.in/eAHg92EN #ConnectedVehicles #Safety #DetroitMoves 🚘🔗

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Incentives drive behavior within the parameters of affordability. In a need-based demand market like this, affordability trumps incentives. The Automotive Advisor Team helps dealers build inventory plans based on market-driven insights as well as the dealer’s specific inventory around their local market’s demand by price and segment. It's important to be cautious of overgeneralizations using historical automotive KPI performance trends that no longer fit as they once did in our new post-COVID auto market. Frank Knox Brian Kramer David Long

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Congrats to Group 1 Automotive CEO Daryl Kenningham! 2024 Automotive News All-Stars Public dealer: Daryl Kenningham CEO Group 1 Automotive (a sneak peek... just part of Daryl Kenningham's story) Daryl Kenningham championed Group 1 Automotive Inc.’s growth strategy in 2024. Under his leadership, the public auto retailer bought high-revenue stores while also divesting small and underperforming dealerships. In the first three quarters of 2024, Group 1 acquired more than 60 stores that it expects will generate about $3.9 billion in annual revenue, far surpassing the $1.1 billion in expected revenue acquired in 2023. “We grew the company by 25 percent through acquisition,” Kenningham told Automotive News. Kenningham and Group 1 closed the biggest deal of their year in the third quarter. The dealership group bought the U.K. retail operations of global automotive group Inchcape for $439 million. The public auto retailer expects the 54 dealerships in the transaction to generate $2.7 billion in annual revenue. Benjamin Richert Karen Hudson Mike Chan Steve Beasley Stephen Prather Jr Marvita McAlpin Steward Edward McKissic John Lukehart Judith Palacios Manny Laureano Shelley Prange Washburn Gwendolyn Holmes Baca Michael Roush Sebastian Olszewski Lindsay Casas Bob Neal Jon Zillioux Eric Sanchez Sr. David Fesmire Danih Davis Pete DeLongchamps Dan Shine Monica Leatherwood Danny Frayler Krista St.Romain Richard Blohm III Daniel McHenry Mike Sullivan Christine Scott Bj Young Kimberly Barta Mary Karyl Sweeney Christian U. Wendy Holdaway Springs Roy Boitnott Benson Chanthirath Deedra Muse Lyza Postell

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Tune in on June 27th to get Don Miller's insights on the latest RECT data and tips for improving service at your dealership.

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If everything had gone to plan for General Motors over the last three years, the Detroit automaker would be well on its way to catching Tesla in sales of electric vehicles. In October 2021, GM CEO Mary Barra declared the automaker would “absolutely” catch up to the U.S. EV leader by 2025. Instead, after slower-than-anticipated EV adoption across the industry and GM-specific challenges with production, software and supply chains, the company remains well behind Elon Musk’s carmaker, as well as Hyundai Motor/Kia and Ford Motor. While GM has withdrawn most of its previously announced electric vehicle targets, the automaker believes its EV sales momentum is finally building thanks to an expanding lineup of all-electric vehicles – spanning a price range of roughly $35,000 to more than $300,000. “We are definitely outstripping the industry in terms of growth, in terms of EVs,” Rory Harvey, GM president of global markets, including North America, told CNBC. “We have the most comprehensive EV lineup out of any manufacturer in the industry, in the U.S., at the moment.” EV sales data provided to CNBC by the Detroit automaker, which publicly reports sales quarterly, shows a notable increase for GM through August. GM sold nearly 21,000 EVs in the U.S. in July and August – almost matching its full second-quarter EV sales. GM’s EV sales through August were up about 70% compared with a year earlier. “It’s a step change in terms of our EV performance,” Harvey said during an interview this month at GM’s Cadillac headquarters in suburban Detroit. Those two back-to-back record months for GM’s EVs have it within striking distance – about 2,000 units – of Ford through August. It still remained more than 20,000 units shy of Hyundai/Kia EV sales through last month. Both Ford and Hyundai/Kia report sales monthly. The legacy automakers are still fighting for a distant second behind Tesla, which Motor Intelligence estimates to have sold more than 164,000 EVs during the second quarter – roughly double the sales of GM, Hyundai/Kia and Ford combined during that time.      Harvey declined to speculate when, or if, GM expects to overtake its competitors in EV sales, but the automaker is forecasting a strong finish to the end of the year. “We have momentum on our side,” Harvey said. “We anticipate quarter four will be strong in terms of EV adoption. So, we’re looking forward to that close, and looking forward to taking a disproportionate share of the upside.” GM currently offers eight “Ultium-based” EVs for consumers — referring to its electric vehicle architecture and battery technologies. They range from mainstream models such as the Chevy Equinox and Blazer crossovers to three large pickup trucks and luxury models from Cadillac, including a bespoke $300,000 Celestiq. Two additional Cadillac vehicles – an electric Escalade and entry-level Optiq crossover – are expected to join the lineup by year’s end, bringing the total to an industry-leading 10.

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🚖🚗 Used Car Managers, General Managers, Dealer Principals & Automotive Professionals 🚘🚙 Drive more eyes to your inventory and watch your sales take off! 👀🧨🚀 Friday, November 1st, starting at 9AM EST/ 6AM PST... Join John Ellis, David Long, Brian Kramer, Jasen Rice, and other automotive superstars as they share their best kept secrets on how to make your inventory irresistible and Get More 👀 Eyeballs on David Long’s All Things Used Cars. Jump into the conversation or be a 🪰 on the wall like me! Either way, you’ll walk away with amazing insights and actionable tips that you can implement at your dealership TODAY to make you and your bottom line better immediately. 💰🤑💵💲 👀 in the comments for a link to RSVP. You'll be texted a reminder once the room opens up. #automotive #autodealers #automotiveindustry #carbusiness #automotivesales #newcarsales #usedcarsales #usedcardealer #sales #davidlong #episode179

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Who can directly connect me with Bernie Moreno? We want to get him on ASOTU | More Than Cars to talk about the real heart of the auto industry ASAP. #automotiveindustry #cardealership Mike Stanton Michael Lucki Brian Kramer Rick Ricart

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Direct losses to automobile dealers from the cyberattack against CDK reach $1.02 billion, with 56,200 lost new car sales during a 3-week period, plus losses in used, service, and parts sales, according to revised Anderson Economic Group analysis. From Detroit Free Press story by Jamie Larue: "The nation's car dealerships experienced total losses of more than $1 billion as the result of a nationwide hacking and ransomware attack on their software and systems last month, according to a new estimate from East Lansing-based consulting firm Anderson Economic Group. A cyberattack on Chicago-based dealership software provider CDK Global that began June 19 forced CDK to shut down most of its systems across the country for its dealership customers until July 5. It left about half of the nation's car dealerships struggling to operate, forcing some to return to the days of pen-and-paper. According to Bloomberg, the group that orchestrated the attack demanded tens of millions of dollars in ransom to end it." From Automotive News story by John Huetter: "Anderson Economic Group estimated dealerships lost 56,200 new-vehicle sales and $1.02 billion between June 19 and July 15 because of the CDK Global cyberattacks and subsequent software outages. The same day, AutoNation estimated the CDK situation had stripped $1.50 out of its second-quarter earnings per share."... "AEG's latest $1.02 billion loss calculation factored in income dealers theoretically lost from new-vehicle sales and diminished service and parts revenue during the time the CDK outage hindered operations. The consulting firm assumed most customers who encountered a delay in servicing their car because of the CDK outage still used the dealership and completed the deal. It didn't count those temporary losses toward the final number. However, transactions where the dealership lost the business entirely or saw the customer postponing the sale, service or parts work indefinitely were treated as losses for the purposes of the AEG report."... "This episode is a wake-up call for the auto industry, and a warning to all others," AEG CEO Patrick Anderson said in a statement. He said any companies using automation and centralized software, "which means nearly all businesses," run the risk of a vendor being hacked — "and the losses caused by an outage can escalate quickly." https://lnkd.in/eXiWXfNe #automotiveindustry #autodealers #artificialintelligence #damages

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Change is never easy, yet sometimes it's necessary. Overall, I think it's the right choice. The RenCen's silhouette has shaped the skyline and the community for decades. Though iconic, the building is outdated. This move provides an opportunity for innovation and reinvention. It could be what GM and Detroit needs. How do you feel about the change? #automotiveindustry #generalmotors #detroit https://lnkd.in/gpQPGvEY

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Stellantis' $406 million investment in three Michigan facilities is not directly causing revolt from dealers. The investment itself is actually aimed at expanding #ElectricVehicle and hybrid production capabilities. However, there are separate issues causing tension between Stellantis and its U.S. dealers: 1. Inventory and Sales Concerns: Despite Stellantis reporting a 21% increase in August sales compared to July and a reduction in dealer inventory, dealers have expressed concerns about the company's overall performance. The President of the Stellantis National Dealer Council criticized CEO Carlos Tavares for the "swift decline" of the company's brands. 2. Allegations of Short-Term Decision Making: Dealers have accused Tavares of making "short-term decisions" that boosted last year's profits and increased his compensation but allegedly led to a decrease in market share. 3. North American Performance Issues: Stellantis' operating income for the first half of the year dropped by 40%, primarily due to disappointing performance in North America, which is a key profit driver for the company. Sales of leading brands Ram and Jeep have each fallen by at least 33% when comparing the first half of 2023 to the same period this year. 4. Production and Inventory Challenges: Tavares acknowledged that the automaker's North American operations faced challenges stemming from high vehicle inventories, production difficulties, and a lack of sophistication in addressing the local market. 5. Job Concerns: Despite the investment, there are plans for a shift reduction at the Warren Truck Assembly Plant due to the discontinuation of the Ram Classic pickup, which could affect up to 2,450 workers. It's important to note that while these issues are causing tension, they are not directly related to the $406 million investment in Michigan facilities. The investment is actually part of Stellantis' strategy to bolster its #EV lineup and meet its Dare Forward 2030 goals. The dealer concerns seem to be more about overall company performance, inventory management, and market strategy rather than the specific investments in EV production. https://lnkd.in/ghSzdYC4

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