When you’re driving down the road, how many of the cars in motion around you are being physically driven by fellow humans? More often than not, all of them.
Thinking of an answer to this question, today, may seem quite silly. By the time our millennial readers are old and gray, however, it won’t be.
It’s well known that a variety of auto manufacturers and outside technology companies are preparing for the day that autonomous driving becomes mainstream.
In fact, a small percentage (8 percent) of the 175 automotive executives in 21 countries that IBM surveyed in its Automotive 2025: Industry without borders study think autonomous vehicles will be in mainstream use as soon as in the next 10 years. A much larger percentage (38 percent) think they will at least be in limited use in the mainstream market.
“But how does that affect my dealership today?” you may ask.
Well, there are plenty of autonomous features that are currently hitting the mainstream — and consumers want them. The technologies may not be driving the cars for us yet, but with lane-departure warnings, autonomous braking, and guided cruise control, it’s safe to say we’re perhaps not that far from it.
Autotrader recently presented the findings of its 2016 In-Vehicle Technology Shopper Influence Study at the 2016 International Consumer Electronics Show (CES) and a not-so-surprising percentage of consumers would like more autonomous features in their vehicles.
After surveying a panel of over 1,000 vehicle owners online last year, Autotrader found that 70 percent of the consumers surveyed are more likely to consider a vehicle with autonomous features, such as parking assistance, collision avoidance and automatic braking.
One interesting finding, fleshed out by Autotrader’s associate research manager Rachelle Petusky, is that these in-car technologies are changing what many consumers perceive to be a luxury vehicle.
“When we ask consumers about what defines a luxury vehicle, traditionally in the past consumers have broken it out by automakers that play in the luxury space, such as Audi or BMW,” Petusky said. “But technology’s really changing the game, and non-luxury vehicles are starting to be viewed as a luxury vehicle because of the technologies offered in the car. Things like Wi-Fi, lane change assistance, collision avoidance are helping consumers perceive non-luxury cars as luxuries.”
Since this is the second year that Autotrader has conducted this study, Auto Remarketing asked Petusky what the biggest change Autotrader has seen seen in consumer expectations over the last year.
Petusky pointed to the 77 percent that want a car with all of the technology features they want regardless of car color.
“Probably the biggest change that we saw was the fact that technology is becoming even more important than car color,” Petusky said. “Car color, I think, has been a part of a huge conversation. It still is very relevant in the purchase decision, but technology is definitely going to have more of an impact now than it did last year.”
While Autotrader finds that the majority (60 percent) of the consumers surveyed think self-driving vehicles are a dangerous idea, there are plenty that are more than willing to pay extra for the new technologies that are out today.
Forty four percent of those surveyed said they would pay up to $1,499, which Petusky says is a bit of a “magic number” in the technology package pricing game, for an in-vehicle concierge service. And 65 percent said they would switch brands to get the features they want.
On that note of branding, while Petusky says that in the immediate term it isn’t that cost effective to upgrade used vehicles with some of the new features that are coming out, the used cars that are most popular in the future will be heavily dependent on who adapts what technologies in their new vehicles now.
“But I think as automakers and technology companies figure out how to make it more cost-effective, it is going to start shifting consideration,” she said. “We’re already seeing some consumers that are shopping for new cars that are going to switch brands if the technology that they want isn’t in the car that they want.
“So I think even as people are looking at used cars, it may change which used car they’re considering depending upon which manufacturer is earlier to the game to introducing new technologies in their cars.”
These new technologies are also expected to not only change how automakers certify used vehicles in the future, but also impact the value that used cars retain.
“I think there’s definitely certain things that they’re going to have to check to make sure they’re functioning properly,” Petusky said. “Our sister company, Kelley Blue Book, is actually seeing that vehicle technology is impacting the valuation price of used inventory.
“I think that vehicles that are in good or excellent condition that have that additional technology in the car, it’s just going to be a way that they can ask for a higher price point and that inventory is going to move faster compared to certified inventory that doesn’t.”
Petusky also thinks that dealers and aftermarket companies that can add some of the more affordable new technologies, especially backup cameras, to older vehicles, can reap the benefits.
“That’ll really be a way to differentiate themselves from other dealers,” she said.
There is one feature that customers don’t necessarily care for their vehicle to have completely integrated: navigation. Fifty seven percent said they would rather manufacturers focus on better integration with their smartphones, while 39 percent said they would prefer the navigation system on a smartphone rather than one built into the vehicle.
“We definitely see it continuing to swing toward people wanting to just use the navigation system that’s in their phone,” Petusky said. “But they are wanting that to easily integrate into the dash. Some of the other apps and functions that people are doing on their smart phones now they are willing to surrender to the dash.”
Kelley Blue Book TV fans that also happen to own a variant of a Roku streaming device can now enjoy both, as KBB announced at the end of December that its streaming channel is now available on Roku.
KBB’s free streaming service provides video content from the editors at KBB.com and allows consumers to gain insight and research vehicles with streamed video content that focuses on various new vehicles, special features, expert reviews, auto show coverage, and more.
"By offering more than 200 vehicle reviews and auto-related features, Kelley Blue Book TV not only helps car shoppers in making the best possible purchase decisions, but also uses visual storytelling to present videos that will entertain as much as they inform," said Jack Nerad, executive editorial director and executive market analyst for KBB.com. "Our multi-award-winning videos offer trusted, objective vehicle information in a visually compelling format, detailing experiences unlike any test drive you've been on, including off-beat, off-road adventures and even a breathtaking helicopter skydive."
KBB recently won the 2015 Dean Batchelor Award for Excellence in Automotive Journalism, judged by the Motor Press Guild, for its “Polaris Slingshot Review” video.
Roku users interested in checking out KBB TV can find it in the Roku Channel Store in the “lifestyle” category, or add the channel online here. KBB TV is completely free and requires no subscription.
Three automotive technology providers — AutoPoint, DMEautomotive and TitleTec — announced Monday that they have collectively integrated to create a single technology and marketing platform.
Branded as AutoPoint, the new comprehensive solution aims to drive revenue and increase retention rates for automotive businesses across the entire vehicle lifecycle.
Applicable for vehicle manufacturers, new-car franchises, aftermarket service providers and independent dealers, the solution combines AutoPoint’s service processes, DMEautomotive’s science-based marketing solutions and TitleTec’s electronic registration tools.
"AutoPoint is designed to fill a critical void in the automotive industry," said Rich Holland, managing director of AutoPoint. "The combination of our three companies' capabilities will provide a powerful, cohesive platform to enrich relationships between our customers and their motorists in ways we haven't seen before."
The AutoPoint service’s goal, as a unified platform, is to reach customers and connect them with their auto service providers throughout the entire vehicle ownership lifecycle, using the digital and mobile channels that are prevalent today.
"This new solution unifies the sales and service processes in a way that enhances motorist interactions, strengthens relationships, and increases transparency for our customers and their customers' customers," Holland said. "This technology will change the way the industry does business."
For more info, visit the AutoPoint site here.
The Juvenile Diabetes Research Foundation, a global organization focused on Type 1 diabetes research, received a healthy donation from ADESA and Emkay toward the end of December.
ADESA announced in late December that it, in partnership with Emkay, raised $50,660 in support of JDRF, bringing the partnership’s total contribution tally for the last four years to nearly $160,000.
How were the donations collected? During the eight-month campaign, both companies donated $10 for each Emkay vehicle sold at an ADESA location.
“At ADESA, we appreciate every opportunity to support JDRF, so joining forces with industry partners like Emkay, who is also a longtime supporter, is a natural fit,” said ADESA president and chief executive officer Stéphane St-Hilaire. “We hope that the funds raised will help to someday find a cure for Type 1 diabetes, which affects the lives of so many people in our families and communities.”
To learn more about JDRF or provide support, click here.
VehicleXchange LLC announced Monday that it has added automated GM Financial pre-qualification capabilities to its service lane lead solution.
The tool, launched by Pearl Technology Holdings in January and otherwise known as “VX,” now allows dealers to pre-qualify customers through GM Financial within seconds.
The VX system utilizes pre-screening technology from Experian to allow dealers to calculate a customer’s equity in their vehicle as well as allowing consumers to view all vehicles in a dealer’s inventory that they are pre-qualified to purchase.
Another aim of VX is to help customers find “improved” terms via manufacturer incentives and estimated payments, allowing customers to upgrade their vehicle and maintain the same or lower monthly payments.
Allowing for automatic communication to consumers on the dealer’s behalf, the VX system can turn manufacturer incentives into targeted marketing campaigns within 24 hours of release.
The solution has achieved 1,300 subscriptions from dealers since it launched at the beginning of the year. To learn more about VX, click here.
Dealer's Auto Auction of Huntsville, as well as Dealers Auto Auction of the Southwest, have recently received awards of various types, including organizational and individual acknowledgments.
DAA of Huntsville announced Thursday that it was recognized as the Outstanding Promotion Event East Region Top Auction for 2015 during the Remarketing by Element awards ceremony at the beginning of December.
The Huntsville, Ala. location hosts a weekly sale every Tuesday morning.
Further west, DAA of the Southwest also reached out to Auto Remarketing to let us know that two of its auctioneers have been awarded at the recent U.S. Bid Calling Championship.
DAASW’s Mitch Jordan has been recognized as the 2015 U.S. Bid Calling Champion and Sean Hanafi has been awarded as the 2015 Rookie Champion.
To see them both compete, check out the video of the competition here or in the window above. Jordan can be viewed at the following timestamps: 1:34:40, 2:10:07, and 2:42:48. Hanafi can be viewed at: 00:13:40 and 2:45:47.
Moving over to the east coast in Corry, Pa., the Corry Auto Dealers Exchange has been busy over the holidays. For the fifth consecutive year, Corry ADE held its annual food drive with local dealers who partook in a Thanksgiving meal in exchange for a donation to the Corry Area Food Pantry.
Donations were made in the form of non-perishable food items and cash donations.
“Donations weighed in at 547 pounds, well over last year’s total — plus we received nearly $200 in cash,” said George Kirik, a member of the Corry Area Food Pantry’s board of directors. “It was a great turn out for a wonderful cause. We appreciate what Corry ADE does to help so much.”
Corry ADE also assisted the international charity, Stop Hunger Now, with a donation of $17,400 over the Thanksgiving holiday in association with a local congregation.
This was the third year that Park United Methodist Church has assisted Stop Hunger Now and the second year that Corry ADE has helped them raise funds.
“This year we upped our donation with an added twist,” said Tad Swift, Corry ADE auction manager and family spokesperson. “We challenged the congregation to fundraise to add to our donation. The combined amount is making it possible to send 30,000 meals more than last year — 80,000. It’s awesome to be a part of this effort with our local church and especially to make a difference to people thousands of miles away.”
To learn more about Stop Hunger Now, click here.
KAR Auction Services announced the appointment of two new vice presidents on Friday. The company outlined that Toby Hahn has been hired as its new vice president of total rewards while Brad Jokovich has been promoted to the position of vice president of human resources.
Jim Hallett, the company’s chairman and chief executive officer, welcomed the two to their new positions within the company.
“Our talented employees play a key role in the success of the company,” said Hallett. “We are dedicated to ensuring that we continue to hire and retain the right individuals in the right positions. Toby and Brad will contribute greatly to the growth and accomplishments of the organization.”
In his new position as vice president of total rewards, Hahn will lead all activities regarding the company’s compensation, benefits and human resource management systems while also managing a team responsible for planning, designing, developing and executing strategic compensation and benefit programs across KAR’s various business units and locations.
Hahn's prior posts include time as vice president of global compensation benefits and human resources systems at Remy International, senior financial analyst of capital projects at Exempla Healthcare, and senior financial analyst at Heritage Environmental Services.
Jokovich, as vice president of human resources, will lead the HR team throughout North America and the United Kingdom. He is also now responsible for talent management, succession planning, training and development, and organizational and operational effectiveness in the HR department. Jokovich most recently served as the director of human resources at the Automotive Finance Corp.
“Toby and Brad bring many years of experience in human resources, and we are confident that their expertise as human resource leaders will assist in strengthening the success of the company’s recruitment and business initiatives,” said Lisa Price, KAR’s executive vice president of human resources.
In other KAR-related news, ADESA announced on Thursday that the company’s ongoing support of the Youth Automotive Training Center has earned the company “top contributor” status with the organization.
Over the course of the last 17 years of partnership with the center, ADESA has donated $1.8 million to the organization, which is a tuition-free, hands-on program that teaches basic automotive repair, job readiness and life management skills to at-risk young adults in the Deerfield Beach, Fla. area.
The center was established by Jim Moran, the founder of JM Family Enterprises, in 1984.
“Jim Moran was a pioneer in our industry with an incredibly generous spirit,” said Bob Rauschenberg, executive vice president of sales, marketing and special services for ADESA. “He was always so appreciative of ADESA’s donations — he treated us like rock stars.”
To learn more about the Youth Automotive Training Center, click here.
Fans of piloting the Mercedes-Benz GLA in Nintendo’s “Mario Kart 8” can now continue dodging shells in another of Nintendo’s titles, “Super Mario Maker.”
This free addition to “Super Mario Maker,” in the form of a special costume (Mario driving a GLA) and a custom-designed special event course in the game, is the latest in the list of marketing initiatives Mercedes has made with Nintendo as its only official automotive partner.
“We are delighted to once again be represented in a blockbuster game like ‘Super Mario Maker,’” said Jens Thiemer, vice president of marketing at Mercedes-Benz. “Mercedes-Benz and Super Mario have a lot in common. Above all, they share the same vision: to inspire their customers and fans.”
The Mercedes-Benz ”Super Mario Maker” event course was created by Mario fans at the company who enjoyed the GLA’s inclusion in “Mario Kart 8” and wanted to build a level showing Mario taking a road trip.
The event course takes Mario through several automotive-related areas, including the dealership, taking a test drive through a city and eventually hitting a famous German highway — the Autobahn.
“’Super Mario Maker’ continues to grow and evolve with new courses and content,” said Scott Moffitt, Nintendo of America’s executive vice president of sales and marketing. “It’s great that a luxury car brand like Mercedes-Benz recognizes the ability to create fun courses and share them with others.”
Cox Automotive’s Dealer.com announced Wednesday it has joined with Yahoo and Bing for their respective partner programs.
Dealer.com today joins the new Bing Ads Elite SMB Partner Program, which the company says is for Bing business partners who have proven and trusted expertise in driving growth to both small- and medium-sized businesses via the Bing Ads platform.
"Being part of the Bing Ads Elite SMB Partner Program will allow us to help our customers maximize their return-on-investment and optimize their digital marketing campaigns using the Bing platform," said Chris Smith, vice president of advertising sales at Dealer.com. "At Dealer.com, we have extensive experience in delivering top-performing digital campaigns for automotive dealers, and this partnership will help us bring additional car buyers into the media strategy at a local level and improve sales for our clients."
The site also announced today that it has joined the Yahoo Preferred Partner Program, a community of advertising technology and service companies. Dealer.com has been selected for integration into Yahoo Gemini, Yahoo’s proprietary marketplace for search and native advertising across devices.
"Yahoo has been a long standing media partner for Dealer.com and we are very excited to expand that relationship with the Yahoo Preferred Partner Program,” Smith said. “Our mutual goals with Yahoo focus on serving the automotive dealer market with top-performing digital campaigns that include search, display and now native — across all screens."
Visit the Dealer.com site to learn more.
The American Recovery Association recently finalized a partnership with AW Direct; a pact expanding across ARA events, tradeshows and webinars to offer more benefits and opportunities to association members.
Officials described the development as a “one-of-a-kind” partnership aimed at making AW Direct a pivotal part of ARA, which added that it strives to provide the best possible benefits exclusively for its membership.
AW Direct will take an active role in writing safety related articles and participating in ARA events and tradeshows, as well as leading webinars for the ARA Continuing Education Webinar Series.
“Partnering with AW Direct allows us to add another resource to our team,” ARA president Jerry Wilson said. “We know this partnership will benefit our members, as well as AW Direct, tremendously. We are extremely glad to have them on board.”
AW Direct national account manager Michele Smedberg added, “We are excited to partner with ARA and look forward to the relationship growing.
“The only way to move our industry forward is by working together, and we are thrilled to see what this collaboration brings to the table,” Smedberg went on to say.
The AW Direct partnership is just one of the many benefits offered to ARA members. Some of ARA’s other partnerships and member benefits include:
— Goodyear Tires
— Cruise One
— Harding Brooks Insurance
— Northern Star Management
— OPENLANE
— Digital Recognition Network
— National Independent Auto Dealers Association
— PRIOS
For more information about ARA, its partnerships and its member benefits, visit repo.org.
