Jeff Van Dongen says the COVID-19 pandemic brought on a need for effective and safe disinfectants, developed specifically for automotive.
Van Dongen is chief executive officer of motormindz, and the company recently announced a strategic partnership with vehicle-cleanliness products and hygienic consulting company NuVinAir Global.
motormindz will assist the industry expansion of NuVinAir’s Total Health products that more than 500 U.S. auto dealerships are using and will support the needs of the rental-car and fleet markets.
“As part of our extensive assessment process, we looked at eight leading-edge solutions, with NuVinAir clearly rising to the top,” Van Dongen said in a news release. Van Dongen developed auto industry technologies for 22 years before founding motormindz in 2014 with 33-year Chrysler employee Ray Fisher.
motormindz’s network includes more than 80 automotive and technology executive subject-matter experts who work toward delivering services and technologies “across the automotive ecosystem.”
Don Johnson, a General Motors employee for more than 30 years, said OEMs and dealers should be aware of what’s important, and what isn’t, in choosing the right product for their specific application.
“Our stakeholders require an easy, autonomous application, as well as an inexpensive, comprehensive, and patented materials-sciences technology that won't harm vehicles’ surfaces, and NuVinAir was the clear choice,” Johnson said.
motormindz said consumer interest in strong-quality, safe, and effective disinfection methods continue to increase. Because of that, OEMs and dealers want affordable, scalable, and profitable ways of addressing that need.
“Every day, I speak with OEs, dealerships, and suppliers about their unique needs, and yet there is a common thread: They all want no-touch, automotive-specific cleaning solutions that work quickly and effectively on all areas and surfaces of the vehicle, and that’s exactly what NuVinAir is bringing to the industry,” said NuVinAir chief operating officer Troy Blackwell.
Blackwell previously served in leadership positions for AutoNation and CarMax, and he joined NuVinAir in August 2019 after leading an AutoNation brand extension and launching AutoNation USA, a chain of stand-alone used-car dealerships. Under his leadership, NuVinAir recently launched ReKlenz-X — an EPA-approved, eco-friendly disinfectant cleaner.
“Marrying NuVinAir’s expertise in patented technology and treatments with motormindz’ operational experience and discerning selection process yields a fantastic opportunity to bring our unique ‘Total Health’ offering to an entire industry, while helping OEs and dealers protect their millions of consumers,” Blackwell said.
The COVID-19 pandemic has placed a spotlight on the need for dealers to act quickly in adopting the tools and practices of the future. If dealers want to succeed in a post-COVID-19 future, they must move decisively to build out their digital-first competency and infrastructure.
According to a new report titled, “A Post COVID-19 Era for Automotive: The Next Leap in Dealer Technology,” the pandemic’s disruption of the U.S. car market has created an opportunity to advance digital and AI-based automated marketing technologies to dealers.
“With showrooms closed or operating under strict limitations, dealers are highly motivated to adopt new technologies that enable digital transformation, hyper-targeted digital marketing and remote selling,” states the report, which was written by auto industry marketing automation company, AutoLeadStar.
The report highlights four trends addressing the digital and AI-based automated marketing technologies opportunity, which AutoLeadStar believes “will bring the greatest transformation the industry has seen since Cars.com and AutoTrader led a wave of digitization in the late 1990s.”
The features that AutoLeadStar believes will shape the next two years include:
— Accelerated adoption of in-house dealer technology versus outsourced marketing agencies
— Ascendance of AI-based tools to segment, convert, and close high-intent shoppers
— Emergence of new buying personas and in-market shopper behaviors
— Unprecedented technology-driven operational efficiency
“These trends will transform the way that dealers market and engage customers,” AutoLeadStar writes.
Regarding the first trend addressing accelerated adoption of in-house dealer technology versus outsourced marketing agencies, AutoLeadStar writes that COVID-19 is placing pressure on the “traditional dealership model of clicks-to-bricks, anchored by a first-class showroom experience.”
The disruption of consumer shopping behavior is highlighting “the grim state of dealer and OEM digital infrastructure,” the report states. Dealers today can adopt the right technologies to thrive rather than languish in the new market reality.
The report states that AI and smart marketing platforms are essential to a “post-COVID-19 marketing funnel.” Companies can offer an advanced digital-first marketing automation solution to dealers, who will be interested as their advertising budgets and profit margins will be reduced.
An increasing segment of the dealership market is now searching for tools that can target high-intent shoppers, the report states.
“While the COVID-19 crisis may signal a conclusion to the historic five year run of the industry, it also signals the beginning of a new era in automation and digital-first technology,” the report states.
Regarding the second trend on the ascendance of AI-based tools to segment, convert, and close high-intent shoppers, the report states that although sales have declined nationally across new and used categories in every brand, AutoLeadStar data shows that shopping behavior has remained “robust” throughout the crisis. Consumer search and website traffic for automotive have remained largely steady since the initial drop in mid-March, the report states. But buying signals such as lead conversion and sales have lagged in most markets. Dealers still must aggressively explore new tools that move the needle on two key objectives:
— Segment and convert high-intent buyers to sales
— Engage wait-and-see buyers to accelerate their buying momentum
The report mentions additional possible future trends as possible influences of car buying over the next six to 18 months:
— Single-car suburban families may become two-car suburban families
— Business commuters may return to driving for short-haul work trips.
— Millennials may buy a car earlier than prior to the crisis.
— Families may turn to road travel for vacations, rather than flights.
AutoLeadStar concludes by stating a solid case exists that the ingredients for the auto industry recovery are already underway. Dealers must rapidly “scale up” their digital marketing and automated retail technology.
“This trend is likely to strengthen as behaviors unique to the COVID-19 crisis become further entrenched,” AutoLeadStar writes.
"Since the pandemic, it has been very difficult to drive traffic to the showroom as well as identify buyers within web traffic," AutoLeadStar chief executive officer Aharon Horwitz said in a news release.
Horwitz continued, “We’ve seen rapid adoption of a digital retail model due to these changes and because of this, dealerships must make digital the priority and invest in technology over account services into the second half of 2020 and early next year.”
Penske Automotive Group provided an operational update on its business on Tuesday, stating that automotive retail business conditions have improved compared to March and April.
Penske Automotive Group chief executive officer Roger Penske said he was encouraged by “the significant improvement we continue to see in our operations.”
“Since the COVID-19 pandemic began impacting operations in the second half of March, we took actions to reduce costs and preserve our liquidity position,” Penske said in a news release.
He continued, “Based on these actions, I expect further improvements to our operating results in June and into the second half of the year as the economy continues to recover.”
All of Penske’s U.S. automotive retail dealership sales and service operations are open. Shelter-in-place orders had an impact on operations in April, with new and used unit sales declining approximately 50% and service and parts gross profit declining by 52% compared to April of last year.
The company said business conditions began improving in May of this year. New and used unit sales declined approximately 25% compared to May of last year. They increased 60% sequentially from April to May of this year. Compared to the same period last year, service and parts gross profit declined 39% in May. But from April to May of this year it increased 28% sequentially.
Penske reported that its North American commercial truck dealership sales and service operations have remained open. New and used unit sales in April of this year were essentially flat compared to April of last year.
New and used unit sales declined 20% in May of this year compared to May of last year. That occurred as the Class 8 heavy-duty truck market adjusted from last year’s record level.
New and used units on a same-store basis declined 39% compared to April last year. They declined 19% sequentially from April to May of this year.
The company reported that service and parts gross profit remains strong. May fixed absorption remained above 120%, and from April to May of this year, repair orders per day increased 7% sequentially.
In the United Kingdom, in accordance with a government order, all dealerships closed on March 24. Service and parts operations resumed during the middle of May, and for most of the U.K., dealership showrooms re-opened on June 1.
Although the U.K. dealerships were closed, Penske remotely delivered approximately 2,500 vehicles in May. In addition, through e-commerce efforts, its U.K. dealership operations showed more than 4,000 vehicles sold and awaiting delivery at the beginning of June. Sales have been strong since the dealerships re-opened June 1. The company reported that sales increased approximately 50% during the first week of June compared to the same period last year.
In Europe, all dealerships and service operations in Germany, Italy and Spain are now open. Operations are improving from week to week with the lifting of restrictions in each country.
In Australia, all operations are open with restrictions in the market being gradually lifted. Penske reports that the mining, transportation, defense and power generation sectors remain “resilient.” Service revenue increased 8% sequentially from April to May of this year.
The company reported that it has a 28.9% ownership interest in Penske Transportation Solutions, describing it as “an integral part of the supply chain and transportation infrastructure.” Penske said PTS benefits from a strong recurring revenue base that is derived from 17,000 contract customers across various industries.
Seventy percent of PTS’ business is generated from multi-year contracts from those customers through full-service leasing, contract maintenance and logistics services.
Each part of the PTS business experienced positive results in May.
For PTS, new contracts for full-service leases were on par with the same-period last year. Commercial rental utilization improved sequentially from April to May of this year, with Penske Logistics experiencing continued strong activity in the grocery and home improvement sectors. Also, as OEMs began to restart production, the business showed increased revenues in the automotive sector. PTS earnings more than tripled sequentially from April to May of this year, declining only 17% from May of last year.
Autotrader on Monday announced its latest national advertising campaign, showing shoppers how easy car buying can be in the new normal in which consumers have adjusted to managing aspects of life from home.
For the campaign, titled “Dealer Chats,” the commercial brings the dealership showroom experience to a shopper’s home. It includes scenes of buyers video chatting and texting with dealers, with buyers allowed to ask all the questions they might have about a car’s features.
“Dealer Chats” builds on Autotrader’s “Still Moving” campaign, and Autotrader developed it with global creative agency 72andSunny New York to help car shoppers navigate challenges in the age of COVID-19.
Tool of North America and “Saturday Night Live” director Paul Briganti filmed the commercial entirely remote on an iPhone 11.
Autotrader said shoppers are looking for digital assistance for every part of their life, from virtual vehicle tours to delivery at your doorstep. Shoppers need the tools to help them weigh their options from home to order, test drive and eventually purchase.
“We have seen the way we shop change drastically, and many consumers are not aware of the options available to them to purchase a vehicle safely,” Autotrader vice president of marketing Greta Crowley said in a news release.
Crowley continued, “We introduced Dealer Home Services in March to give car shoppers a way to see what options they do have from dealers while they are at home. Now you can take a virtual tour of a car from the comfort of your own couch, take a test drive from your front door and even buy the car from home with touchless delivery.”
Airing nationally across cable, network and streaming television platforms, Autotrader’s latest national campaign will focus on premium content across entertainment, late night and sports.
A sample of the commercials is available.
The campaign will also include a digital-first approach through platforms such as social media, paid search, custom sponsorships and content on Hulu, YouTube, Roku and Amazon. Autotrader aims for the campaign to offer interactive and engaging experiences to online audiences.
Under an expanded partnership between intelligent virtual assistant company Conversica and AutoAlert, an automotive software company, AutoAlert now offers full capabilities and skills for the Conversica Automotive Sales AI Assistant and the Conversica Automotive Service AI Assistant to help boost sales and service revenue.
The partnership also helps deliver an integrated platform that the companies say can provide an improved customer experience.
The companies said they were making the announcement as the automotive industry and others experience pressure during current uncertain times and must be ready to come back quickly as dealerships safely reopen.
Using Conversica’s Intelligent Virtual Assistants, or IVAs, dealerships can drive appointments for repair orders at their essential service centers and ensure follow-up with prospective car buyers who are sheltered in place.
Conversica engages contacts through natural two-way, digital conversations, ensuring that dealerships respond quickly and consistently to inbound leads and drive outgoing service reminders to customers. That all takes place through a “personalized, polite and persistent” customer experience, Conversica said.
AutoAlert’s CXM, or customer experience management, optimizes customer journey data from various sources to communicate personalized key-to-key offers to qualified buyers from the dealer’s database. AutoAlert and Conversica say they can bring a smooth digital experience to customers.
Conversica’s augmented workforce includes more than 1,500 automotive dealerships employing its intelligent virtual assistants (IVA). Working with sales and service team members, Conversica’s IVAs aim to bring a strong customer experience, engage every lead, and generate more appointments.
“We continue to be hyper-focused on helping dealerships adjust to the ‘new normal’ by employing our digital sales and service team members who effectively double or triple the productivity of existing teams overnight,” Conversica chief executive officer Jim Kaskade said in a news release.
Kaskade continued, “Our automotive clients are becoming digital-first enterprises now — it’s a necessity. Partnering with the industry-leading team at AutoAlert provides us the ability to address a growing demand, given COVID. They have a world-class sales and support staff who know how to accelerate the digital transformation of automotive dealerships.”
The expanded offering brings nearly 30 years of combined experience across Conversica and AutoAlert in artificial intelligence and predictive analytics. It provides auto dealerships with the necessary help to navigate the new normal and accelerate their recovery.
Todd Crossley, dealer principal of Gary Crossley Ford, in Liberty, Mo., uses AutoAlert and Conversica’s Automotive AI Assistants.
“It’s great to see these two tools work together to help us sell and service more vehicles, and more importantly, further elevate the customer experience at our dealership,” Crossley said.
Crossley continued, “We were able to consolidate the number of retail tools we use when Conversica added this capability and AutoAlert seamlessly integrated with it.”
“We are committed to continuing to innovate and help our dealers recover as quickly as possible while providing customers with the best sales and service experience,” said AutoAlert chief executive officer Mike Dullea.
Dullea continued, “AutoAlert CXM provides our dealers’ customers with over 5 million personalized offers each month, and expanding the Conversica Automotive AI Assistant offering to include sales and service enables the dealership personnel to respond with the exact information and communication the customer wants. Our dealers are really energized by our deeper integration with Conversica’s Automotive AI Assistants as we further enable a seamless digital retailing experience for every customer.”
CARFAX says a program that it started in 2019 can help dealerships drive service traffic during the current COVID-19 pandemic.
Through the program, called CARFAX for Life, dealers can use the CARFAX name with tools such as specially branded service reminders. The reminders still direct customers to the dealership, but unlike typical reminders, the reminders come from CARFAX. That leads to four times the engagement on average, according to CARFAX.
Paul Nadjarian, who is general manager of CARFAX’s service shops division, said in an interview with Auto Remarketing that CARFAX works with more than 30,000 dealers. Customer loyalty, if not the key attribute, is one of the key attributes of a highly successful auto dealer, Nadjarian said.
“We believe that leveraging the CARFAX brand and all the data we have, we can create a loyalty program for dealers that would help them with customer loyalty and thus help their business,” Nadjarian said.
CARFAX for Life encourages people to “favorite” their program dealership and provide feedback. Those customers have their vehicles serviced more often. CARFAX says the average favorite spends an additional $62 per year and is 21% more likely to return to the same dealer.
The company said billions of dollars in car maintenance goes unperformed every year.
CARFAX designed CARFAX for Life to help keep car owners safe by “getting the needed service done at the right time.” The company said it solicits 100% verified ratings and reviews, which can improve the dealer’s reputation and Google rankings.
CARFAX for Life is currently free for eligible dealers to try through Sept. 30.
“CARFAX for Life has really closed the circle for us,” Priority Auto Group marketing director Matthew Pennell said in a news release.
Pennell continued, “We don’t have information the same way CARFAX does. CARFAX is able to send our customers manufacturer-suggested maintenance, so it’s not us telling them to come back and buy tires, but a trusted third-party with accurate and pertinent data. Their e-mails to our customers have a 30% open rate, which if you know anything about it, is unheard of.”
Most of Priority Auto Group’s 17 dealerships have been on CARFAX for Life since the program started in early 2019. Its dealerships have collectively more than 58,000 favorites from customers on CARFAX Car Care, which was formerly called myCARFAX. The company signed a dealership to the program in April, and in one month that dealership went from zero favorites to 1,100.
“During these times we need all the help we can get as it relates to driving people to the dealership,” Pennell said. Priority Auto Group sent 24,000 emails in April to service customers through CARFAX for Life. The group saw 5,000 service visits from those reminders.
Nadjarian told Auto Remarketing that CARFAX for Life’s mission is “to help tens of millions of people take better care of their car.”
“That’s what my role is at CARFAX,” Nadjarian said.
He continued, “And [CARFAX for Life] also helps dealers drive better customer loyalty.” He added that “it fits within our mission to help tens of millions of consumers and it also helps with our mission to help our dealer partners drive a more successful business.”
TrueCar is continuing financial payment relief for its dealer customers through June.
The automotive digital marketplace said it would automatically reduce subscription invoices by 25% in states where its pay-per-sale or performance-based billing arrangements are not currently available.
The June discount follows TrueCar’s previously announced 50% reductions to those dealers’ April and May invoices.
TrueCar president and chief executive officer Mike Darrow said the automotive sector is “on the path to recovery.”
“While ALG is projecting U.S. retail new vehicle sales to be down 21% and 20% in May and June, respectively, these figures are outperforming initial estimates and other markets globally,” Darrow said in a news release.
Darrow continued, “Since our first quarter earnings call earlier this month, traffic to our marketplace has continued its upward trend, with volumes exceeding pre COVID-19 levels in recent weeks. Moreover, we’re continuing to see state level restrictions ease, and dealerships that had previously suspended our services in late March are returning to our marketplace to take advantage of the growing demand.”
He also said, “While we are encouraged by the data we are seeing, our priority is to continue supporting our dealer partners through this pandemic. As such, we will extend our billing relief into June.”
TrueCar chief financial officer Noel Watson said the impact of the June discount was contemplated in the financial commentary it provided in the company’s first-quarter earnings call in early May.
“Given the positive recent trends, we are optimistic about second quarter and full year 2020 financial performance,” Watson said.
How have dealers adjusted to the effects of COVID-19? What are the challenges they are facing and the new ways they are doing business?
An upcoming International Automotive Remarketers Alliance webinar will answer those and other questions to assist dealers on the road to recovery. The webinar is titled, “Opportunities Discovered,” and mega dealer groups will discuss current actions and expected buying patterns in the near future.
The webinar will take place on Friday from noon to 1 p.m. EST.
The webinar will also cover the latest updates on retail activity, the effect for consignors in the remarketing space and sourcing of cars.
An additional session covering “Adjusting to the New Normal” will take place on June 5. At that session, consignors from OEMs, captives, banks, commercial fleets and rental car companies will discuss the current remarketing landscape.
Attendees of that session will also learn how to maximize return on their inventories despite market changes. They will also learn how their remarketing strategy compares, competes or enhances current market dynamics.
At the first session, which took place on May 8, Tom Kontos and Jonathan Smoke discussed “The Remarketing Road Ahead.”
Attendees can register for the Friday webinar set for noon eastern time on Friday by going to this website.
With its founder and chief executive officer Ernie Garcia saying consumers are spending more time at home “and balancing that with the need to keep moving,” Carvana is offering as-soon-as-next-day touchless home delivery to 100 additional cities across 24 states.
The company said it is doing that to provide those needing to purchase a vehicle with an entirely online car buying experience, along with “a great selection, great prices and great customer service.”
Carvana said it provides customers with a safe way to purchase a vehicle entirely online from home, including a seven-day return policy. Customers can shop more than 20,000 vehicles on Carvana.com with high-definition, 360-degree virtual vehicle tours and financing, along with touchless home delivery.
Garcia said for many consumers spending more time at home but who also need to keep moving, “that includes the need to buy or sell a car, and often their options are limited.”
“That’s why we are bringing as-soon-as-next-day touchless home delivery to even more consumers and launching 100 markets,” Garcia said in a news release.
As-soon-as-next-day touchless home delivery is now available in the following cities, and total of 261 U.S. markets:
1. Anniston, Ala.
2. Auburn, Ala.
3. Decatur, Ala.
4. Dothan, Ala.
5. Florence, Ala.
6. Gadsden, Ala.
7. Dover, Del.
8. Homosassa Springs, Fla.
9. Punta Gorda, Fla.
10. Sebastian, Fla.
11. Sebring, Fla.
12. The Villages, Fla.
13. Albany, Ga.
14. Brunswick, Ga.
15. Dalton, Ga.
16. Gainesville, Ga.
17. Hinesville, Ga.
18. Rome, Ga.
19. Valdosta, Ga.
20. Warner Robins, Ga.
21. Bloomington, Ill.
22. Champaign, Ill.
23. Danville, Ill.
24. Kankakee, Ill.
25. Peoria, Ill.
26. Springfield, Ill.
27. Bloomington, Ind.
28. Columbus, Ind.
29. Evansville, Ind.
30. Kokomo, Ind.
31. Lafayette, Ind.
32. Michigan City, Ind.
33. Muncie, Ind.
34. Terre Haute, Ind.
35. Lawrence, Kan.
36. Manhattan, Kan.
37. Bowling Green, Ky.
38. Elizabethtown, Ky.
39. Owensboro, Ky.
40. California, Md.
41. Pittsfield, Mass.
42. Battle Creek, Mich.
43. Bay City, Mich.
44. Jackson, Mich.
45. Midland, Mich.
46. Monroe, Mich.
47. Muskegon, Mich.
48. Niles-Benton Harbor, Mich.
49. Saginaw, Mich.
50. Columbia, Mo.
51. Jefferson City, Mo.
52. St. Joseph, Mo.
53. Ocean City, N.J.
54. Vineland, N.J. MSA
55. Elmira, N.Y.
56. Glens Falls, N.Y.
57. Ithaca, N.Y.
58. Kingston, N.Y.
59. Utica, N.Y.
60. Burlington, N.C.
61. Goldsboro, N.C.
62. Greenville, N.C.
63. Jacksonville, N.C.
64. New Bern, N.C.
65. Rocky Mount, N.C.
66. Lima, Ohio
67. Mansfield, Ohio
68. Springfield, Ohio
69. Enid, Okla.
70. Lawton, Okla.
71. Bloomsburg, Pa.
72. Chambersburg, Pa.
73. East Stroudsburg, Pa.
74. Gettysburg, Pa.
75. Johnstown, Pa.
76. Lebanon, Pa.
77. State College, Pa.
78. Williamsport, Pa.
79. Sumter, S.C.
80. Cleveland, Tenn.
81. Jackson, Tenn.
82. Morristown, Tenn.
83. Longview, Texas
84. Sherman, Texas
85. Tyler, Texas
86. Victoria, Texas
87. Wichita Falls, Texas
88. Blacksburg, Va.
89. Lynchburg, Va.
90. Staunton, Va.
91. Winchester, Va.
92. Morgantown, W.V.
93. Parkersburg, W.V.
94. Weirton, W.V.
95. Wheeling, W.V.
96. Fond du Lac, Wisc.
97. Janesville, Wisc.
98. Oshkosh, Wisc.
99. Racine, Wisc.
100. Sheboygan, Wisc.
The Costco Auto Program and American Honda Motor Co. are teaming up on a program that offers a $500 Costco Shop Card for eligible Costco members buying or leasing specific Honda vehicles, in addition to compatible Honda incentives for which they qualify.
Costco Auto Program and American Honda Motor Co. are working to “provide added value to Costco members for dependable transportation needs.”
Affinity Auto Program is managing the exclusive member-only incentive, featuring what Costco Auto Program says are “two popular family vehicles.” One is the 2020 Honda Odyssey, which is the most-requested minivan through the Costco Auto Program and is a Kelley Blue Book KBB.com Best Buy.
The 2020 Honda Pilot is the second vehicle, and that is one of the most-requested midsize SUVs in the Costco Auto Program.
The program runs through July 6, and eligible Costco members registering at CostcoAuto.com/Specials and who purchase or lease a 2019, 2020 or 2021 Honda Pilot or Honda Odyssey will receive the Costco Shop Card and receive the Honda incentives for which they qualify.
Affinity Auto Program has operated the Costco Auto Program since its inception in 1989. The service offers prearranged pricing on new and select pre-owned vehicles and RVs for U.S. Costco members, and the program also provides discounts on automobile parts, service, and accessories.
Costco members purchased more than 600,000 vehicles through the program in 2019.
“The Honda Limited-Time Special provides a great value on two Honda vehicles,” Costco Auto Program general manager Rick Borg said in a news release.
Borg continued, “We are excited about the opportunity to provide Costco members this excellent incentive on vehicles they so often request.”
Honda dealerships are taking precautionary measures to protect customers and employees in an effort to prevent the spread of the coronavirus and encourage social distancing and in some cases because of dealership showroom closures.
Those efforts include extra sanitization work, online or telephone purchases, contactless transactions and delivery or pickup options. To minimize personal contact, Costco Auto Program encourages Costco members to contact their dealer of choice in advance.
