MyDealerLot announced on Wednesday the company’s name change to MDL autoMation in conjunction with the release of Service Drive Concierge, which is geared to use license plate recognition (LPR) technology as an alternate identity trigger to MDL's existing RFID solutions.
Recently, MDL also rolled out availability of its new Bluetooth based vehicle location system called Bloodhound for both service and sales operations at U.S. and Canadian dealerships.
“MDL continues to expand and diversify its product line providing a range of high valued technologies to both sales and service operations in dealerships, and the new company name reflects this direction,” MDL founder and chief executive officer George Cresto said.
“Solutions are designed to improve business processes, enhance the customer experience, improve inventory management, and increase sales and retention,” Cresto continued.
Also, MDL explained Service Drive Concierge is designed to use LPR technology to instantly convert a license plate to a VIN for instant guest recognition and messaging.
“It is only very recently that this solution became possible with the advancement of LPR cameras in terms of functionality and cost,” Cresto said. “These cameras, coupled with our license plate conversion algorithms, enable the highest level of plate conversion with the fastest conversion time in the industry.
“Its significantly lower cost enables MDL to deliver a very scalable solution to a much broader market of dealerships of all sizes and brands,” he continued.
Dealerships can now choose the best solution for their store based on required functionality and budget. While MDL can now offer two distinct identity triggers — RFID and LPR — MDL pledged to provide the same Service Drive Concierge technology stack to dealerships for sales and service messaging.
PureCars has been named a Kia Certified Digital Advertising Partner by KiaMotors.
The partnership will make PureCars’ digital advertising solutions available to Kia dealers across the U.S.
Kia’s Certified Digital Advertising Program allows dealers to use paid search and online advertising from certified providers to drive incremental local traffic to their respective websites.
Now, Kia dealers can take advantage of PureCars’ Smart Advertising offerings for improved targeting efforts. SmartAdvertising provides a singular digital advertising solution that executes campaigns across various media channels, enabling dealers to follow consumers’ journeys across search, social, display and video.
“We are honored to be recognized by Kia as a valuable advertising partner for their dealers,” said Jeremy Anspach, chief executive officer of PureCars. “Working with Kia will allow PureCars to continue helping dealers take the guesswork out of search architecture and digital advertising.
“Now, PureCars can provide even higher quality service, technology and online marketing expertise to Kia dealers and help them effectively reach customers across all channels.”
PureCars recently earned a spot on the annual Inc. 500|5000 list for the third consecutive year, following the launch of social and video extensions of its SmartAdvertising platform in early 2016 and a major acquisition by Raycom Media last October for $125 million.
“With a vast majority of consumers going online to research a vehicle prior to purchase, search engine marketing must be a key component of any dealership’s digital marketing strategy,” said Anspach.
“As a Kia partner, PureCars will help Kia dealers more efficiently serve car shoppers' tailored, relevant advertisements at the right time and in all the right places, driving more consumers to the lot as a result.”
Click here to learn more about the Kia Certified Digital Advertising Partner Program.
Perhaps just when Volkswagen dealers thought happier customers might be arriving at their service drive and showrooms, OEM officials in Wolfsburg, Germany acknowledged that investigators in that country are conducting a new probe involving Hans Dieter Pötsch, the chair of VW’s supervisory board.
The subject of the investigation is alleged market manipulation, according to VW’s statement distributed on Sunday.
“Based on careful examination by internal and external legal experts, the company reaffirms its belief that the Volkswagen board of management duly fulfilled its disclosure obligation under German capital markets law,” the automaker said.
“The proceedings refer to the period during which Hans Dieter Pötsch served as the group chief financial officer. The company and Hans Dieter Pötsch will continue to give the inquiries by the public prosecutor’s office their full support,” the OEM went on to say.
The latest development arrived only a short time after Volkswagen gained approval from a wide array of federal agencies of a restitution plan involving some vehicles associated with “Dieselgate.”
Autotrader senior analyst Michelle Krebs offered an assessment that could be discouraging for VW dealers charged with handling vehicle owners who still might be irate with the company’s behavior.
“Revelations of new emissions cheating by Volkswagen sets the automaker back in restoring lost trust of current and potential customers,” Krebs said.
Kelley Blue Book analyst Michael Harley shared a similar reaction.
“With the recent court approval of its diesel scandal buyback offer, Volkswagen AG appeared to be on a path of healing. Unfortunately, the new emissions-cheating revelations that involve diesel- and gasoline-powered vehicles are fresh new wounds that will further damage the German automaker’s credibility and reputation.”
To sum up the latest news, Jack Nerad, executive editorial director and executive market analyst for Kelley Blue Book, mentioned the FBI director who has been in the headlines often leading up to the presidential election.
“Out of the frying pan and right back into the fire. It was just last month when it seemed Volkswagen was finally on the way to putting the emissions scandal behind it,” Nerad said. “Now new revelations point to the possibility that the scandal was even larger than we envisioned. Where is James Comey to sort this all out?”
CarMax has begun its largest hiring effort to date, following an announcement that the company is opening a new Murrieta, Calif. multi-purpose facility in February.
The company is hiring more than 250 associates to staff the new location.
A majority of the positions available are roles in service operations such as inventory, service advisors and technicians. There are also open positions for auction services, sales and business office associates.
“We provide hands-on experience, mentorship and other great benefits like tuition reimbursement for those who want to become technicians,” said Rosey Sanders, Sacramento regional vice president of service operations. “CarMax values and supports growth and development; meaning associates have access to world-class training while building a great career.”
CarMax is currently recruiting for 2,500 positions in locations nationwide.
The new 35-acre location will also be CarMax’s largest multi-purpose facility, and home of its first four-lane auction facility on the West Coast.
CarMax said the location will have the capacity to stock up to 400 vehicles at a given time and operate as a reconditioning hub that supplies inventory to several of the company’s stores in Southern California.
The location will host weekly sales that local dealers can attend for wholesale used cars.
In addition to production and auction services, the property will have a separate building for selling used cars to the general public.
The inception of the Murrieta location is a continuation of CarMax’s growth in California.
In May, the company opened a San Francisco-area store in Pleasanton, and is scheduled to debut locations in Fremont and Santa Rosa in November.
CarMax will open another new store in the Los Angeles area, where the company will hire an additional 60 associates, in February.
Election season got you down?
If you're a dealer doing business in a battleground state, the answer is most likely yes.
A recent analysis by Dealer.com revealed that car-shopping behavior in states where the vote can “swing” either red or blue – Colorado, Florida, Iowa, Michigan, Nevada, New Hampshire, North Carolina, Ohio, Pennsylvania, Virginia and Wisconsin — was down 9 percent year-over-year in September.
And with new-vehicle sales also down 2 percent year-over-year in September, the election is compounding challenges for car dealers in battleground states. Year-to-date, visitors to car dealership websites across the Dealer.com platform are 6 percent lower in battleground states compared to non-battleground state dealerships within the network.
James Grace, director of analytics for Dealer.com, said a major factor hurting car shopping behavior in these states is the rise of digital advertising costs, as battleground states have averaged 7 percent higher paid search costs than non-battleground states since January, and a bigger increase in year-over-year advertising costs (11 percent) than non-battleground states (7 percent).
“We have seen this trend in past election years where the consumption of and cost of advertising in the traditional ad space that would typically be bought by dealers caused a shift to the digital space,” Grace said.
“Dealers that cannot account for additional advertising spends suffer, which can lead to a decline in online traffic, and ultimately a hit to their bottom lines.”
But Grace said there are steps dealers can take to combat the dampening effects of election season.
Incorporating election-related content
The key to bringing the election into your advertising and marketing is to keep things nonspecific, Grace said.
“But nothing dealing with the rhetoric side of the election,” he cautioned. “I wouldn’t recommend dealers get into that fray, for obvious reasons. But acknowledging the election is going on.”
How about an Election Day special? Dealers could run a banner/slide on their home page offering a discounted or free oil change for customers who present their “I voted” sticker.
Or maybe post-election promotion around “Election got you down? A new car might cheer you up!”
“To me, the best time for that would be late November,” Grace said. “You want to try to get some November sales out of this thing. So letting the smoke clear for a week or so and then looking to drive some end-of-month sales with a post-election message.”
Grace said he suspects that people’s hesitancy to make big purchases at this time may run below the surface.
“My suspicion is this trend of reduced shopping behavior is not a conscious thing for people. I think it’s just a general … there’s so much content. Advertising’s getting more expensive, you’re able to drive fewer shoppers to dealerships.
“I think it’s also just the general these of ‘the economy is not doing well.’ Hearing that message constantly in battleground states kind of created the same mood as 2008, when we actually had a big recession. My sense is that will clear up as the election finishes up. But we’re also seeing a flattening in the industry in general the past couple of months. I think of all that together is adding up to a problem for dealers in these states.”
Optimizing your advertising budget
When asked how dealers can achieve this, Grace pointed to what he called Dealer.com’s “portfolio approach.”
“We’re selling a portfolio to our customers and saying, ‘Let’s use different products to capture different pieces of the market.' We look on (a dealer’s) website, and we’ve got a bunch of tools to say, ‘How are people showing up on your website?’ And then looking at what they do on the website to sort of measure ROI.”
Grace mentioned that dealer.com is unveiling a bunch of tools to measure ROI. One is a quality scoring mechanism being introduced at NADA.
Here’s how it works: Every website visit will get a quality score based on things like time on site, bounce rate, number of page views, etc. This will be available in January, and will make things a lot easier for dealers, Grace said.
"One of the things that I’ve been talking to dealers a lot about is what I call the quality gap, and their need to focus on quality rather than quantity,” he continued. “If we look at measures of traffic, visits to websites, for instance, it’s up substantially over the past year by 10-12 percent, and sales are roughly flat, maybe plus-2 percent in the past 12 months. So that creates this gap between the traffic we measure and actual results.
It kind of puts to bed this whole idea that more advertising equals more visits to your website equals more leads equals more opportunity equals more sales, he continued.
“That very linear thought process where ‘all I have to do to sell more cars is to drive more traffic to my website’ just really doesn’t make any sense anymore.”
AutoNation not only is strengthening its new used-vehicle retail strategy, but the dealer group also is broadening its footprint in the wholesale space, too.
On Friday, AutoNation announced the next phase of what the company classified as its comprehensive brand extension rollout, which includes what’s being called AutoNation USA — standalone pre-owned vehicle sales and service centers. Those locations also will offer AutoNation branded parts and accessories.
And along with an expansion of AutoNation branded standalone collision centers, the company also is adding more AutoNation Auto Auction locations.
The company insisted this branding effort has been successfully extended to AutoNation Express and AutoNation Customer Financial Service products, and now the company is well positioned to further leverage its retail and wholesale brands.
“We are pleased to announce the next phase of our comprehensive brand extension strategy, which will provide long-term growth opportunities for the company," AutoNation chairman, chief executive officer and president Mike Jackson said in a news release.
“We expect that our investments in this next phase of the company's brand extension rollout, which may exceed $500 million in the aggregate, will continue for the next several years,” Jackson continued.
“We have built an industry-leading brand, and we remain committed to achieving and sustaining operational excellence, while creating a peerless customer experience and enhanced services throughout the automotive retail sector,” he went on to say.
AutoNation broke down plans for the various components of this used-vehicle initiative.
1. One Price
The company highlighted that One Price, an AutoNation brand element, was launched in several markets in the third quarter and is a foundational attribute of AutoNation USA.
AutoNation explained One Price allows the company to leverage centralized capabilities, such as centralized pricing and appraisals, and offers consumers a “transparent and stress-free buying experience.”
AutoNation plans to fully implement One Price in all existing locations by the end of the second quarter of 2017.
2. AutoNation USA
The company reiterated that AutoNation USA stores are standalone pre-owned vehicle sales and service centers. A key driver of AutoNation USA is AutoNation Express, the company's digital platform, which can allow customers to dramatically reduce their transaction time by offering a seamless end-to-end experience.
Through AutoNation Express, a customer can search inventory online, select and reserve a vehicle, value their trade, see payment options and apply for financing.
Beyond the vehicle-buying experience, the company mentioned AutoNation USA sales and service centers will offer express service and scheduled maintenance and repair work.
“AutoNation USA stores will offer a customer-friendly end-to-end digital experience for service, including communications and payment options,” officials said. “The company believes AutoNation USA sales and service centers will improve retention with customers who have vehicles that are out of warranty and traditionally service with independent repair shops.
AutoNation added that the company has identified 25 AutoNation USA potential sites in its existing markets, of which five are expected to open in 2017.
3. AutoNation Auto Auctions
AutoNation owns and operates a successful wholesale auto auction in southern California, which processes more than 25,000 vehicles annually. With an opportunity to leverage its expertise and expand in an attractive growth market, the company plans to open four additional AutoNation branded auto auctions over the next two years, starting in Orlando, Fla., and Houston during the first half of 2017.
Executives noted that these new auctions will be centrally located in select, high-volume markets and will primarily feature AutoNation vehicle inventory.
“The AutoNation Auto Auctions will provide buyers and sellers with a great opportunity to dispose of and acquire highly desirable used vehicles as well as provide an array of other on-site support services,” officials said.
4. AutoNation Precision Parts and AutoNation Auto Gear
The company emphasized AutoNation Precision Parts is a high quality, competitively priced line of maintenance and repair parts.
The new product line will be integrated into the company's reconditioning operations, as well as enable improved customer retention for retail service, wholesale parts and collision repair business units, including AutoNation USA.
AutoNation Precision Parts was launched in the third quarter of this year in the company's existing stores, with the introduction of AutoNation-branded batteries that feature an industry-leading free lifetime replacement guarantee.
AutoNation Auto Gear, the company’s branded automotive accessory line, will offer auto accessories for lifestyle, appearance, protection, and vehicle security. AutoNation Auto Gear was also launched in the third quarter in the company's existing stores and will be available at each AutoNation USA store.
The company will be expanding both AutoNation Precision Parts and AutoNation Auto Gear product lines in phases as their product portfolios are developed.
5. AutoNation Collision Centers
AutoNation currently owns and operates 70 collision and repair centers across the country, and is expanding its collision center footprint to reach more customers and leverage relationships with insurance carriers.
“AutoNation has the largest collision center network among automotive retailers, with expertise and certifications with multiple manufacturers, and is the preferred repair provider for many of the major insurance carriers,” officials said.
New locations are planned for key markets where AutoNation has store density, but does not have an existing collision presence or capacity limitations. The company recently opened a new collision center in Sarasota, Fla., and on Friday announced the acquisition of Westmont Body Werks in Westmont, Ill., a suburb of Chicago.
During the next two years, the company said it plans to open or acquire at least 18 new AutoNation branded collision centers across the country.
In what one industry observer called “a massive step forward” for the OEM and what’s commonly known as “Dieselgate,” Volkswagen Group of America announced on Tuesday that Judge Charles Breyer of the U.S. District Court for the Northern District of California has granted final approval to the $10 billion settlement order agreement between Volkswagen and private plaintiffs represented by a court-appointed Plaintiffs’ Steering Committee (PSC) to resolve civil claims regarding eligible Volkswagen and Audi 2.0L TDI vehicles in the United States.
Concurrently, Breyer also approved a consent decree between Volkswagen and the U.S. Department of Justice on behalf of the Environmental Protection Agency (EPA) and the State of California by and through the California Air Resources Board (CARB) and the California Attorney General; and a Consent Order between Volkswagen and the U.S. Federal Trade Commission.
All three agreements were previously announced back in July.
“Final approval of the 2.0L TDI settlement is an important milestone in our journey to making things right in the United States, and we appreciate the efforts of all parties involved in this process,” said Hinrich Woebcken, president and chief executive officer of Volkswagen Group of America.
“Volkswagen is committed to ensuring that the program is now carried out as seamlessly as possible for our affected customers and has devoted significant resources and personnel to making their experience a positive one,” Woebcken continued.
Woebcken added that Volkswagen remains focused on resolving other outstanding issues in the United States and continues to work towards an agreed resolution for customers with affected 3.0L TDI V6 diesel engines.
Industry reaction
Under the settlement, eligible vehicle owners have two choices:
1. They can sell back their vehicle to Volkswagen or terminate their lease without an early termination penalty.
2. Keep their vehicle and receive a free emissions modification, if approved by the U.S. Environmental Protection Agency (EPA) and the California Air Resources Board (CARB).
“This is a massive step forward in Volkswagen’s efforts to put its diesel emissions issue to bed,” Kelley Blue Book senior analyst Karl Brauer said. “The combination of customer repair/buyback options, plus the additional monetary compensation these owners will receive, should cover any losses TDI owners would have suffered from the cars’ drop in market value.
“Additional fines related to the advancement of clean energy, to counteract the air quality impact of these engines, further illustrates VW’s desire to address health and environmental concerns,” Brauer continued. “Resolution for its 3.0-liter diesel engines remains on VW’s ‘to do’ list, as do settlements with individual states and markets outside the United States, but the importance of getting past this threshold in the process can't be overstated.”
The vehicles associated with this settlement include:
2013-2015 VW Beetle
2010-2015 VW Golf
2009-2015 VW Jetta
2012-2015 VW Passat
2010-2013; 2015 Audi A3
“At long last, Volkswagen seems to be coming to the end of this unfortunate episode in its history in the United States,” Kelley Blue Book executive editorial director and executive market analyst Jack Nerad.
“The bad news for VW is the settlement will put the Volkswagen name back in the news in an unfavorable light,” Nerad continued. “The good news is that U.S. consumers seem to have short memories when it comes to automotive issues, so VW should be well on its way to moving forward without a millstone around its neck.”
More guidance from federal regulators
FTC officials cheered Tuesday’s developments.
In a new blog post titled “Road Cleared for VW to Compensate Consumers,” FTC chairwoman Edith Ramirez said that the landmark settlement will enable 500,000 consumers across the country to sell back their tainted diesel-powered cars to Volkswagen.
“The $10 billion order secured by the FTC will make consumers whole by remedying the losses they suffered due to VW’s deceptive ‘Clean Diesel’ ad campaign,” Ramirez wrote.
The FTC also issued a new consumer blog post titled “VW Buybacks and Lease Terminations to Begin,” which provides additional background information on the Volkswagen settlement order, along with detailed instructions for affected owners regarding how and where to file a claim, and the claim-processing timetable. It also tells consumers how and where they can pick up their buyback check, specifying that the money does not have to be used to buy a new Volkswagen.
Earlier this year, the FTC warned consumers about possible scams involving Volkswagen buybacks in a consumer blog post titled “VW Owners, Get the Facts.” At the same time, the FTC posted a business blog emphasizing that it would be unwise for anyone, including VW dealers, to make separate offers to the owners of affected vehicles.
Calling it a “very competitive market” for car sales and margins, Asbury Automotive Group’s president and chief executive officer explained how the retailer achieved an earnings increase in the third quarter.
"Despite a very competitive market for vehicle sales and margins, our strong parts and service customer pay performance combined with capital deployment enabled us to deliver 6-percent EPS growth,” Asbury’s Craig Monaghan said in a news release.
In the company’s quarterly results shared Tuesday, Asbury also provided a rundown on how its used-car operations fared in Q3, recapping year-to-date pre-owned results, as well.
Third-quarter used results
In Q3, used-car retail revenue was down 4 percent year-over-year at $423.3 million. Retail used gross profit for Q3 was $31.9 million, down 9 percent year-over-year.
Asbury sold 20,030 retail used vehicles during the quarter, which was a 6-percent drop.
Its used-to-new ratio of 74.7 percent was down from 75.1 percent in Q3 of the previous year.
Average gross profit per unit on used was down 4 percent at $1,593 for the quarter.
Gross margins dropped from 8.0 percent to 7.5 percent.
Through 9 months
Looking at year-to-date numbers, Asbury has pulled in $1.25 billion in used retail revenue, down 4 percent from the first three quarters of 2015.
Used retail gross profits are down 4 percent at $101.4 million.
The dealer group has sold 59,378 used retail units through three quarters, which is a 6-percent decrease. The year-to-date used-to-new ratio is 77.5 percent, compared to 79.1 percent in the prior-year period.
Average gross profit per unit of $1,708 was up 2 percent year-over-year.
Gross margins on used retail were steady at 8.1 percent.
Ally Financial has announced that 49 U.S. auto dealers have been chosen as nominees for the 2017 TIME Dealer of the Year award.
The award, in its 48th year, recognizes the nation’s most successful auto dealers who also demonstrate a commitment to community service.
The nominees will be honored at the National Automobile Dealers Association Convention & Expo in New Orleans on Jan. 27. They will be welcomed by Meredith Long, senior vice president and general manager of news and luxury at TIME, and Tim Russi, president of auto finance at Ally.
“A remarkable group of dealers have been nominated for the 2017 TIME Dealer of the Year award,” said Russi. “We are honored to acknowledge these dealers that ‘do it right’ in their businesses and communities every day, and we are excited to recognize their achievements at the NADA convention in January.”
In its sixth year as exclusive sponsor, Ally will recognize the 2017 nominees and their community efforts by contributing $1,000 to each dealer’s 501(c)(3) charity of choice. The nominees will also be highlighted on AllyDealerHeroes.com.
Including the 2017 charitable grants pledged to this group of nominees, Ally will have committed nearly $480,000 as part of the TIME Dealer of the Year program. In previous years, nominee grants have supported various local community organizations, including educational programs, cultural offerings, youth athletic leagues and local nonprofits.
Previous winners have included Kitty Van Bortel of Van Bortel Motorcars in Rochester, N.Y., Andy Crews of AutoFair Honda in Manchester, N.H., Jeff Teague of Teague Auto Group in El Dorado, Ark., Michael Alford of Marine Chevrolet in Jacksonville, N.C. and Mike Shaw of Mike Shaw Automotive Group in Denver, Colo.
For a list of all 2017 TIME Dealer of the Year nominees, click here. Or to learn more about the nominees, click here.
Gubagoo, a provider of behavioral engagement and scoring technologies for automotive websites, recently rolled out what the company thinks is an enhancement that can offer complete and seamless integration with Facebook Messenger.
Gubagoo’s Facebook Messenger Integration is available immediately to dealerships using Gubagoo solutions.
“Today, consumers spend an average of 50 minutes a day using Facebook platforms, including Facebook messenger — that is 1/16th of their waking time,” Gubagoo chief executive officer Brad Title said.
“At Gubagoo, we are relentlessly focused on helping auto dealers connect and engage more effectively, in real-time, with their customers — and Facebook Messenger is, increasingly, where consumers are making their connections,” Title continued.
“With this new integration, customers can chat with dealerships like they chat with their friends: better engagement equals better customer service equals increased sales conversion,” he went on to say.
The new integration with Facebook Messenger can give customers another channel through which they can directly communicate with dealerships using Gubagoo’s 24/7 fully-managed, messaging capabilities.
Gubagoo’s customers can push inventory and offers directly though Facebook Messenger and, because it integrates with Gubagoo’s mobile app, dealerships will have real-time access to conversations taking place between customers and Gubagoo chat operators.
Dealerships using Gubagoo can now do the following through Facebook Messenger:
• Send Inventory
• Push video
• Publish offers
• Book service appointments
• Take calls
Gubagoo is one of the fastest growing and most effective chat and website engagement providers for automotive dealerships.
Gubagoo can track and score more than 22 million vehicle buyers every month through its B.E.A.S.T. scoring technology that generates more than 125,000 leads to dealerships every month. The company’s online selling tools — which can increase efficiency, control and conversion as well as improve the consumer experience at the dealership — include ChatSmart, TalkSmart and the recently launched and integrated RESQ platform for web and phone.
RESQ also can enable dealerships to monitor chat conversations in real time. Gubagoo highlighted some RESQ Beta site customers have experienced up to a 300-percent increase in lead-to-sales conversions in their dealership.
