Openlane Inc. has partnered with the National Independent Automobile Dealers Association to offer dealers a new “NIADA-Certified” listing category on Openlane’s open auction, www.openlane.com.

This “lane” of NIADA-Certified cars will provide online buyers and sellers with the comfort that these vehicles have passed the rigorous certification requirements to earn this eligibility and can be retailed with a comprehensive warranty.

Openlane buyers can be confident that the vehicles they are purchasing have met the standards set by NIADA since they have passed the requirements outlined by the Association.

The NIADA-Certified Program is available to all dealers nationwide and offers a new standard of protection for wholesale buyers and retail customers. The program provides 12 months and 12,000 miles of comprehensive limited warranty coverage on most vehicles made between 2001 and 2011 and up to 100,000 miles.

The NIADA-Certification program is administered by National Auto Care (NAC).

Automotive News — January 24, 2011 – 12:01 am ET

Mike Colias

DETROIT — Last week, CEO Dan Akerson put his stamp on General Motors Co.

His most significant senior-management shakeup so far aims to intensify GM’s focus on leading technologies. And he defied convention with his pick of a new product chief.

Tom Stephens, 62, who took over for retired product chief Bob Lutz in 2009, becomes GM’s first global chief technology officer — an area Akerson, also 62, has pushed since taking the helm in September.

Mary Barra, 49, a former global head of manufacturing engineering and currently GM’s human resources chief, succeeds Stephens as GM’s product development boss. The changes are effective Feb. 1.

OnStar also gets a new leader: Linda Marshall, who once worked for Akerson at Nextel Communications Inc., replaces the departing Chris Preuss.

The shuffling reinforces Akerson’s mantra that GM must win on technology. The former telecom exec’s installation of Marshall shows an urgency to rejuvenate OnStar, which has been surpassed by Ford’s Sync infotainment system in driver-friendly features.

Stephens’ appointment highlights Akerson’s fixation on improving fuel economy through innovations such as the Chevrolet Volt’s plug-in hybrid powertrain.

In an address to the Automotive News World Congress this month, Akerson said the industry is entering a “technological revolution” in vehicle propulsion, which he said “will drive the success and drive the losers [out] of the next generation.”

Stephens, a powertrain specialist, could help GM develop longer-range innovations, such as a gasoline engine that runs, like a diesel, with high compression and no spark plugs.

“Putting somebody with Tom’s experience in that position shows that Dan knows technology is more important than ever, especially around powertrain,” said Xavier Mosquet, a senior partner at the Boston Consulting Group who advised the U.S. government on its bailout of G
‘Fresh perspective’

Mary Barra says of her days as manufacturing chief: “I worked hand-in-hand with product engineering. We would push the envelope to make sure to get that great design on the road.”
Barra’s appointment turned some heads — and showed that Akerson, a Detroit outsider, isn’t afraid to go against the grain.

Barra, the first woman to lead product development at any major global automaker, doesn’t have the product engineering background of a Stephens or the car-guy cred of a Lutz. And Detroit’s automakers historically haven’t looked to their manufacturing operations for product talent.

Akerson said in a statement that Barra’s ability to work across disciplines and her varied background “will bring a fresh perspective to the critically important job of developing vehicles that delight global customers.”

Barra will oversee a staff 36,000 and will be the only woman on GM’s executive committee. Ed Welburn Jr., GM’s global design vice president, will report to her.

Barra told Automotive News that her first priority will be to see the 2011 launches of several key products around the globe through their final phases. Those include the Buick Verano small car, due in showrooms by fall.

“I have a design focus,” said Barra, who drives a Buick Enclave and cites the Cadillac CTS coupe as a design she particularly admires. She said her all-time favorite GM car is the current Chevrolet Camaro, which she also owns.

‘Get that great design on the road’

Barra said that as global head of manufacturing, she worked closely with product design and engineering to tailor vehicles for various markets.

“I worked hand-in-hand with product engineering,” she said. “We would push the envelope to make sure to get that great design on the road.”

Lori Queen, who served as vehicle line executive for first small cars and then small and mid-sized trucks at GM before retiring two years ago, said Barra is highly regarded inside GM as a “strong leader and quick study.”

“I have to believe Mary’s appointment will be very well received at GM,” she said.

Don Runkle, who spent 30 years at GM, including a stint as head of North American vehicle engineering, said hiring a manufacturing leader as a product-development chief isn’t a radical move.

“Honda and Toyota historically were the guys who did the best job of having that strong manufacturing engineering voice in the overall product-development process,” Runkle said. “And they were the ones turning out high-quality vehicles at lower cost.”

Before last week, Ackerson’s highest-profile personnel move came in December, when he named Joel Ewanick head of global marketing. With the Stephens appointment, Akerson now has a global head of technology as well.

That follows the playbook Akerson used while CEO of telecom companies Nextel Communications and XO Communications Inc., where he always made sure to have global technology and marketing leaders.

Automotive News — January 21, 2011 – 3:29 pm ET
U.S. auto sales in January are on track to outpace those from a year earlier, with retail sales overcoming a slight drop in fleet demand, J.D. Power and Associates said today.

J.D. Power has increased its forecast for retail light vehicle sales for 2011 to 10.5 million, up from a previous estimate of 10.4 million, citing a steady but slow recovery in the U.S.economy.

“Typically January is a weak month because of the push to end the year on a high note, but the volume and selling rate has been slightly higher than average,” said Jeff Schuster, executive director of global forecasting.

“It’s a good signal for where the year is going.”

Citing a slow but steady recovery in the U.S. economy, J.D. Power increased its forecast for retail sales this year to 10.5 million units, up from a previous estimate of 10.4 million. It also boosted its estimate for total vehicle sales to 13 million units, up from 12.8 million.

That would mark a 12 percent increase from last year’s 11.6 million. That total reflected an 11 percent rise from the industry’s 27-year low in 2009.

New light-vehicle retail sales will jump to 632,100 units, 23 percent higher than the same period last year, the market research firm said. January’s seasonally adjusted annualized selling rate should reach 10 million units, almost 2 million units above January of last year but down from a 10.9 million retail SAAR in December, the company said.

Total vehicle sales will reach 794,500 units this month, up 14 percent from a year earlier, J.D. Power said. Fleet sales will account for 20 percent of that total.

“Last January’s sales were driven by a replenishment of fleets, which were greatly depleted in 2009,” Schuster said.

In 2010, fleet sales represented 21 percent of all light-vehicle demand, he said.

J.D. Power said it expects North American vehicle production to rise 7 percent to 12.6 million vehicles in 2011.

The firm based its estimates on transaction data from more than 8,900 U.S. retail franchisees during the first 11 selling days of the month.

Edmunds.com CEO Jeremy Anwyl also released his sales estimates for January this week on his blog, Just to Clarify.

He expects retail sales of 702,000 units in January, or a SAAR of 10.6 million. He put overall January light-vehicle sales at 846,000 units, for a SAAR of 12.7 million. That would be the fourth straight month above 12 million.

Anwyl expects 17 percent of sales to come from fleet deliveries, down from a year earlier when fleet vehicles accounted for one-quarter of all sales.

“Last January saw unusual levels for restocking and possibly local governments ordering new fleet vehicles with stimulus dollars. So I don’t think 25 [percent] is something we will repeat anytime soon,” Anwyl wrote. “But 17 [percent] seems low, as fleet sales are typically front loaded with a new year.”

HOW MANY LAWS WILL YOU BREAK THIS YEAR?

REMEMBER: Experience doesn’t mean that you know

Approximately, 9 out of 10 dealers violate the following
Laws & Compliance requirements monthly:

(1)Adverse Action Compliance (2)Privacy Laws (3)OFAC Compliance (4)Risk Based Pricing (5)Red Flag Rule (6)Safeguard Rule (7)Gramm Leach Bliley Act (8)Selling Out Of Trust (9)Power of Attorney Compliance (10)Truth In Lending (11)Temp Tag Compliance (12)Consignment Compliance (13)IRS Form 8300 Compliance (14)FTC Buyers Guides (15)Spot Delivery (16)Ohio Deposit Rule (17)Written Limited Warranty (18)Repossession Violation (19)GPS Disclosure (20)Illegal Fees (21)Odometer Disclosures (22)UDAP Statutes (23)TDR Compliance (24)Payroll Violations (25)Paying Bird Dog Fees (26)Title Compliance (27)Temp Tag Compliance (28)Doc Fees

Independent Used Car Dealers violate all or most of the aforementioned laws on a regular basis for one of two reasons; they either didn’t know or they didn’t care. Every year more than 850 used car dealers go out of business in the state of Ohio and the majority of these dealers violated one or more of the listed laws and didn’t know that they did anything wrong.

The Ohio Independent Automobile Dealers Association (OIADA) has decided to do something about this starting in January 2011. We have met with individuals from the Department of Dealer Licensing at the BMV and informed them that we were going to offer a monthly class for all dealers to learn how to be a dealer. There are no classes available in this state for a dealer to learn the legal, compliant and proper way to do business as a used car dealer and that is going to change in 2011. In 2011 the OIADA will offer a Dealer Workshop in our offices located at 2040 Brice Road in Reynoldsburg, Ohio 43068 where all dealers, new and seasoned veterans alike can go to learn the right way to be a dealer.

The seminar will be eight hours in length and lunch will be included for all attendees. The price for this workshop will be $98.00 so as to cover all of the expenses related to this project. Everything listed above will be addressed at this workshop and much more. Now the decision is up to you but if you violate the law this time what excuse will you use?

To check the dates that this is being offered go to www.ohiada.org and check the calendar, to register simply call the offices of the OIADA, 614-863-5800 and ask for Christine.

James R. Mitchell
Executive Director

OIADA
2040 Brice Road Suite 110
Reynoldsburg, OH 43068
Office: 614-863-5800
Fax: 614-863-5801
Cell: 614-436-3393

Manheim has entered into an extended partnership with The Van Tuyl Group Inc., which manages the largest group of privately held automotive dealerships in the United States.


In addition to a commitment to direct increased vehicle volumes to Manheim, as part of this new agreement the Van Tuyl Group’s Metro Auto Auction in Phoenix, will become a facilitating location for OVE.com.

Facilitating locations are the brick-and-mortar auctions that guarantee title and money for OVE.com’s transactions. Another Van Tuyl auction scheduled to open in Dallas will also become a facilitating location for OVE.com.


As the Van Tuyl Group’s Metro Auto Auction has enjoyed a long-standing relationship with Manheim Financial Services (MAFS), the management company also will extend this offering to its new Dallas facility. MAFS aids independent dealers in the process of buying, selling and floor planning vehicles.


With offices in Arizona, Kansas and Texas, The Van Tuyl Group works with approximately 65 independent auto dealerships nationwide. The management company supports its dealers by providing accounting, finance and insurance, risk management, legal, real estate, construction and technology-related services.

Consumers continue to show a preference for domestic brands.

Domestic brands such as Ford and Cadillac made the biggest jump in demand and transactions on LeaseTrader.com during 2010.

The Ford Edge won domestic car of the year from LeaseTrader.com based on volume of customer searches and takeovers among all domestic brands during 2010.


LeaseTrader.com analyzed vehicle brand performance during 2010 in categories including compact, SUV/crossover, sedan and luxury, the four most popular segments in the online marketplace. For the first time in LeaseTrader.com history, domestic vehicles were represented in the top five for each of the above-mentioned categories (historically heavy on import vehicles). Previously, domestic brands never made more than three of the four categories.

The other noticeable trend is that entry level luxury continues to dominate popularity in leasing (Mercedes C Class, BMW 3 Series and Lexus IS).


The Crossover/SUV category saw three of the top five vehicles come from domestic makers (Ford Edge 1st; Cadillac SRX 3rd; Lincoln Navigator 4th). The BMW X5 was second and the Mercedes GL350 finished fifth in the category.


Cadillac CTS again makes the top-five cut in the sedan category by finishing third, the second straight year in this segment.

The Ford Fusion finished fifth in the category, its first time making a top-five list for the LeaseTrader.com marketplace. Other vehicles in this segment include the BMW 5 Series, Mercedes E Class and Lexus ES.
The Cadillac CTS finished third in the luxury category, followed by the BMW 3 Series and Mercedes C Class, which were first and second. The Lexus IS and BMW 5 Series were fourth and fifth rounding out the segment.
For the third straight year the Honda Civic topped the compact category, followed by the BMW Mini, Ford Focus, Lexus IS and Mazda 3.


While domestic brands and vehicles made significant strides in all categories during 2010, the BMW 3 Series again had a dominating presence, winning the luxury category on its way to becoming LeaseTrader.com’s import vehicle of the year for the third straight year. 


Domestic brands made 7 of the 20 available positions in total, the most seats achieved since 2005 when six positions were held by domestic vehicles based on marketplace performance on LeaseTrader.com.

GM’s Stephens, Lutz’s successor as product chief, gets global technology role
Automotive News — January 19, 2011 – 12:12 pm ET

DETROIT — Tom Stephens, the General Motors Co. executive who was tapped two years ago to replace Bob Lutz as product development chief, has been appointed to a newly created post: global chief technology officer.

GM said the move will “bring greater focus and urgency to developing leading edge technology.” Stephens, 62, will oversee GM’s research-and-development operation as part of the new position.

Stephens, a 42-year GM veteran, most recently served as vice chairman of global product operations. GM said a new head of worldwide product development will be named “soon.”

The move highlights CEO Dan Akerson’s goal of sharpening GM’s focus on technology as a competitive advantage. Akerson, who took over as CEO Sept. 1, wants to aggressively expand the technology behind the Chevrolet Volt plug-in hybrid, for example.

“Customers today expect and deserve the very best technology from their GM vehicles,” Akerson said in a statement. “Tom will make sure that GM technology keeps up with our customers and keeps ahead of our competitors.”

Today’s announcement marked the third round of GM executive changes within 24 hours. On Tuesday, GM said Linda Marshall will replace the departing Chris Preuss as president of OnStar. GM also elevated Chris Perry to vice president in charge of U.S. marketing and said Rick Scheidt will succeed Perry as head of Chevrolet marketing.

Stephens will remain on GM’s executive committee and continue to report to Akerson. The change takes effect Feb. 1, as do the moves announced Tuesday.

He has been in charge of global product development since early 2009, when he replaced Bob Lutz, who was then scheduled to retire. Lutz was widely credited with leading a product revival at GM.

Honors for the Chevrolet Volt, championed by Lutz, include a North American Car of the Year award at this year’s Detroit auto show. Stephens had helped continue the momentum, made evident by praise from enthusiasts and mainstream consumers for the well-done interiors and drive character of Buicks and Cadillacs, reports AutoWeek, a sister publication to Automotive News.

Stephens maintained oversight of products even after Lutz subsequently unretired and took a marketing role following GM’s 2009 bankruptcy.

Following a media star

Stephens lacked the flamboyant appeal of the outspoken Lutz, who was an inspiration behind such cars as the Dodge Viper when he was at Chrysler in the 1980s and 1990s. At the time of Stephens’ appointment, Gary Dilts a former Chrysler sales chief and then-senior vice president of J.D. Power and Associates, said Stephens was a great second act, but he shouldn’t try to be a media star.

“Lutz rallied a lot of spirit and put a lot of confidence back into the product development group,” Dilts said. “Nobody is going to out-Lutz Lutz.”

For his part, Stephens has followed closely to Lutz’s plan of continual improvement, although he put more emphasis on market research, something Lutz had been known to say gets in the way of designer instincts.

Stephens previously was GM’s vice president of engineering in both the powertrain division and GM’s truck group. He also was an assistant engineer on Cadillac’s Northstar engine.

His achievements include negotiating a deal with Ford Motor Co. to share the cost of designing a family of six-speed automatic transmissions, a project that was on time and on budget. Stephens also oversaw the development of the two-mode hybrid transmission put into production on three large GM SUVs.

In his new job, Stephens will work with teams across GM’s geographic markets on technical innovations. His primary role “is to seek creative solutions and game-changing technologies to help GM shape the automotive future,” GM said.

“Today’s cars and trucks are technology on wheels,” Stephens said in the statement. “I’m excited about working with the GM team in new ways and focusing my energy to keep us on the leading edge of automotive innovation.”

More Auto Ad Dollars Go Online
The auto industry continue to put more money into online advertising.


Auto online ad spending was up 33 percent year-over-year in the fourth quarter, due in part to increased consumer demand.

That information comes from marketing firm Efficient Frontier.
 All major categories posted an increase in spending for online advertising, according to the firm.
 In 2010, growth was solid in all sectors and is mostly attributed to Cost Per Click (CPC) increases. Also, the Bing-Yahoo! integration created a consistent advertiser spend share for the newly combined platform. 


The demand for display advertising was reinvigorated throughout 2010 with Google AdX responsible for the majority of exchange-based display media spend. Facebook’s marketplace advertising continues to be strong and early results show that, in addition to being a significant stand-alone marketing channel, Facebook advertising has a positive impact on other digital marketing channels such as search and display. 


Retail led search growth during the first half of 2010.

As Jittery Consumers Calm Down, Car Sales Could Take Off
Posted: Jan 17, 2011 57
by: Gary Hoffman

Some good omens are showing up in the consumer confidence indices and other economic indicators, spurring speculation about a big increase in car sales for 2011 — perhaps even to 14 million units.

There are certainly no shortage of indicators to consult these days. They range from the obvious to the unusual, everything from the Dow Jones Industrial Average to the typical age of a vehicle on the road. Economists, analysts and market researchers use these measurements to figure out which way the economic winds are blowing and then estimate total vehicle sales for the coming year.

None is more aptly named than the Jitters Index. Published by CNW Marketing Inc., of Bandon, Oregon, it measures the level of consumers’ concern about financial issues affecting their households, including gas prices, the cost of a child’s education, and the state of their investments. Between November and December, the Jitters Index fell 1.8 points, suggesting that consumers are relaxing a bit about financial issues. It was the largest decline in more than three years.

By contrast, during the comparatively carefree month of January 2007, the index stood at just 3.84 points, more than three points lower than today. If the trend continues, CNW predicts that auto sales could be near 13 million units in 2011. That level would be up substantially from the abysmal 10.6 million in 2009 and the somewhat better 11.5 million in 2010.

The University of Michigan’s Consumer Sentiment Index is roughly in line with CNW’s analysis. It rose to 74.5 points in December, up from 71.6 in November and 67.7 in October. U of M researchers meanwhile forecast auto sales of 12.7 million units in 2011.

Financial services firm Morgan Stanley is betting on 14 million, based on consumers’ improved credit situations.

Auto Sales Still Lower Than Normal

But Sean McAlinden, chief economist for the Center for Automotive Research, in Ann Arbor, Michigan, isn’t ready to celebrate yet. “Let’s not get giddy here.” He notes about 15.2 million would be normal right now, given the age of the typical vehicle on the road and other factors.
“We are a long, long way from that, in the average 13 million sales forecast for 2011,” he said in an email interview.

Nor is consumer confidence anything to brag about right now. Tim Nash, an economics professor at Northwood University in Midland, Michigan, says consumer confidence is a far cry from its level three or four years ago. For example, the Consumer Confidence Index compiled by the nonprofit Conference Board was in the 90s when the auto industry was selling 16 to 16.5 million vehicles a year in 2006 and 2007. Its current figure of 52.4 “has a long way to go as a basic indication of consumer confidence,” he said.

The national unemployment rate is another obvious indicator to watch. It’s declining, although a bit sporadically. “The unemployment situation is slowly, slowly getting better,” said Charles Ballard, economics professor at Michigan State University.

Noting that the current 9.6 percent unemployment rate has already dropped below the psychological barrier of 10 percent, Ballard said it doesn’t need to get back down to the 5 percent level from a decade ago to start having a positive effect on consumer confidence. It will promote at least some car sales as it continues on its course. “Any improvement in the unemployment situation will probably be reflected in small and steady improvements in the way people view the economy,” Ballard said.

The stock market is another key indicator – and its direction has been unequivocally positive in recent months. The Dow Jones Industrial Average has climbed 1,500 points since September, up from about 10,000. Economists are crediting the rising market for the increase in luxury car sales during 2010. For example, BMW was up 8.5 percent in 2010, Mercedes-Benz 14 percent, and Cadillac nearly 10 percent. “The folks who come in and write the check for the big Mercedes, they’re concerned with the stock market,” said David Blitzer, chairman of the index committee at Standard & Poor’s in New York.

Real Estate Troubles

By contrast, the middle-class families rely mostly on their homes as their store of wealth – and they have seen their net worth decline as prices have fallen. That has kept many of them out of the new car market, economists say. The S&P/Case-Shiller Home Price Indices are painting a dismal picture of the housing sector right now. The rebound in home prices is decelerating in 18 of the 20 metro areas that the indices cover, according to the latest report. Prices in six markets — Atlanta; Miami; Charlotte, North Carolina; Portland, Oregon; Seattle and Tampa, Florida — have hit their lowest levels since the national real estate meltdown started in 2006 and 2007. The housing industry will be on the mend once housing prices start rising faster than the rate of inflation, according to Blitzer. He would like to see a 2- to 2.5-percent annual increase in housing prices to help keep stagnant or falling home values from throttling the recovery.

“Clearly, for the majority of people the home is the biggest factor in their financial situation,” Blitzer said. “One of the reasons that we still have unemployment between 9 and 10 percent is that we still haven’t had a big housing recovery.”

Incentives Declining

On the other hand, the current buyer’s market in the retail car industry could become a distant memory once auto sales reach the 15-million level that many analysts are predicting for 2012. From the consumer’s standpoint, perhaps, an automotive recovery won’t be an unalloyed blessing. Even with the moderate improvement in sales recently, incentives are already on the decline. In the most dramatic examples, the drop for GM and Chrysler vehicles averaged hundreds of dollars between December 2009 and 2010.

“The more the recovery moves forward, the more pricing power businesses are going to feel that they have,” Ballard said. “So automakers aren’t going have to offer deep discounts to sell their vehicles.”

The lesson for the consumer: even silver linings don’t last forever.

Internet could cut dealership building costs
January 17, 2011 – 9:29 am ET
Donna Harris

Most new-car buyers use the Internet to shop for vehicles and more of the sales process takes place online. How should this affect bricks-and-mortar dealerships built today?

I spoke with Jeremy Anwyl, CEO of Edmunds.com, and he suggested some ways the Internet could improve future facilities and cut property costs:

1. Keep vehicle inventory off-site at a cheaper property. With more people browsing dealer inventories online, dealers can arrange to have vehicles available when shoppers make appointments for test drives.

2. Reduce the showroom. With sales presentations and most price negotiations taking place online, most customers already know what they want when they arrive at the dealership.

3. Devote floor space to vehicle delivery. With customers researching purchases online, the walk-around presentation no longer is necessary. A better use of the salesperson’s time would be explaining the features of the vehicle at the time of delivery. New vehicles are getting more complicated and have more high-tech features. The dealership could increase customer satisfaction by making sure the buyers understand how to operate their new vehicles.

The bottom line? With the growth of virtual showrooms, bricks-and-mortar dealerships should be shrinking.