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INSIDE ■ Door opens for more outsiders | PAGE 24 | Big, bigger, biggest? ■ Van Tuyl through the years | PAGE 24 | Buffett’s Van Tuyl purchase puts top retailers in cross hairs ■ New venture’s CEO has wide experience Amy Wilson Nation Inc. and said it was the coun- The Van Tuyl operation can be “scaled [email protected] | PAGE 25 | try’s biggest auto retailer, Buffett up a lot from where it is,” said Buffett, With Warren Buffett at its helm, the quipped: “Temporarily.” who predicted that he and Van Tuyl’s ■ How Van Tuyl wooed country’s fifth-biggest dealership group “This is just the beginning for Berk- leaders will hear from Buffett | PAGE 25 | is about to get a lot bigger. shire Hathaway Automotive,” Buffett “hundreds of deal- ■ Buffett doubles down When Buffett signed a deal to buy Van said of the new venture, which is being erships” interest- on autos | PAGE 26 | Tuyl Group last week through his Berk- called the biggest acquisition by far in ed in selling in Warren Buffett: ■ Reactions | PAGE 26 | shire Hathaway Inc. investment com- automotive retail history. Terms the next year. “This is just ■ What Buffett paid pany, he clearly signaled that the top weren’t disclosed, but outsiders esti- the beginning.” | PAGE 38 | four dealership groups are in his sights. mated the all-cash price tag at over see BUFFETT, When a CNBC host mentioned Auto- $4 billion. Page 38

Boom time Infiniti Q80 for Audi Inspiration dealerships Soaring sales fuel $1 billion in projects Ryan Beene [email protected] Audi dealers, riding a sales bonanza, are also in the throes of a $1 billion building boom as they prepare to fulfill the brand’s long- term goal of selling 200,000 vehicles a year in the U.S. In Orlando, Audi sales are up 86 percent, PARIS AUTO SHOW the company says, since AutoNation Inc., the top-selling U.S. dealership group, opened its ■ Luxury makers chase smaller niches | PAGE 3 | $21 million Audi South Orlando dealership in ■ Hits and misses | PAGE 6 | April. The store grabbed ■ Porsche nixes sub-Boxster roadster | PAGE 6 | the territory previously ■ Cautious optimism amid tensions in Russia held by Holler-Classic Au- | PAGE 8 | tomotive Group, which ■ Opel boss on next Regal’s underpinnings moved its operation to a | PAGE 8 | new, larger store on the ■ Bentley crossover tied to new stores | PAGE 34 | Volkswagen city’s north side last year ■ Infiniti plans new engines, without Daimler XL Sport and named it Audi North | PAGE 34 | Orlando. Keogh: “Perfect In Texas, megadealer time” for the A3 Carl Sewell more than tripled sales since acquir- ing Audi North Houston in 2010. Now he is set to begin building a second, four-story Audi TESLA’S TRUMP CARD: USED CARS store — 275,000 square feet of space, including CPO sales could prove value of factory-owned stores parking — in Sugar Land, south of Houston. The new dealership, opening next fall, will Gabe Nelson potential of Tesla’s factory-owned retail net- cost “north of $25 million” to build and gen- [email protected] work. erate estimated sales of about 200 new vehi- SAN FRANCISCO — Elon Musk, in his Tesla’s vice president of communications, cles a month by 2017, Sewell said. quest to transform Tesla Motors from a Simon Sproule, confirmed that the company “The expectation for the market is high,” he scrappy electric-vehicle startup into a ma- is developing a certified pre-owned program A trade-in influx may start in 2016 or earlier. said. “We are very optimistic about the future ture, profitable automaker, may have an ace to compete with those offered by luxury of Audi.” up his sleeve: used cars. brands such as BMW and Mercedes-Benz. Tesla is racing against a clock that started More than 100 of Audi’s roughly 280 U.S. Tesla is developing a program to sell the “With the Model S fleet now heading to- ticking in April 2013, when Musk — deter- dealerships are in some stage of a major con- Model S secondhand, Automotive News has ward the first cars hitting three years old,” he mined to reassure customers about buying learned, in a bid to lower the cost of entry for wrote in an email, “we are looking at CPO see AUDI, Page 33 the $71,070 sedan and unlock the earnings and how best to structure.” see TESLA, Page 33

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5 Ad close: Dec 22 (early close) 12 Ad close: Dec 22 (early close) 19 Ad close: Jan 7 26 Ad close: Jan 14 Fixed Operations page F&I page Production Line page Connected Car page Special Section: North American Marketing page North American International Remarketing page International Auto Show U.S. Sales Report – 2014 Auto Show coverage Legal file *Bonus distribution at NAIAS Consumer Electronics Show coverage Automotive News World Congress NADA Convention Issue coverage Guide to Industry Executives Quarterly Shareholder Value Report Exclusively sponsored supplement Special Section: NADA Preview Q&A: The Supplier Speaks 1 2 3 4 AUTOMOTIVE NEWS EVENTS SHOW DAILIES Jan 13-14 • Detroit • autonews.com/worldcongress Jan 23, 24, 25 Automotive News World Congress Ad close: Jan 6 *Bonus distribution of Jan 12 issue NADA Convention Jan 22 • San Francisco • autonews.com/retailforum Automotive News Retail Forum *Bonus distribution of Jan 19 & 26 issues

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• 49 36 • OCTOBER 20, 2014 OCTOBER 13, 2014

20141013-NEWS--0049-NAT-CCI-AN_-- 10/10/2014 5:31 PM Page 1 But there is room for improve- final ment. assembly About half of Acura’s sales this ACURA year were awd vehicles, according Q3 earnings: Go to 20141013-NEWS--0012-NAT-CCI-AN_-- 10/9/2014 4:41 PM Page 1 autonews.com to Kelley Blue Book, citing data this week for coverage of earnings reports Cash Finance Sales slid 1 percent rebate rate from R.L. Polk & Co. That’s ahead of Hollywood comes calling for car designersfrom GM, Ford and several dealership groups. 1.9-3.0% Cash Finance 1.9-3.7% through September Lexus and Cadillac and in line with Customer Incentives rebate rate SLK300, SLK350 1 etroit’s automakers face tough Regular Weekly Features 2500, 3500 Infiniti and Mercedes-Benz. Incentives in this table are aCash summary Finance of retail programs offered. Programs may varySprinter by region and model. continued from Page Dcompetition from an unlikely but In sales this year, Acura ranks “Digital surfacers” — designers who use rebate rate Cruze, Equinox, MITSUBISHI the global financial crisis hit. Since glamorous source when it comes to hiring Express 2500, 12 • OCTOBER 13, 2014 above Infiniti but behind Cadillac computers to create and virtually test new Expires Oct. 31. In lieu of rebates, cut-rate financing then, it has been casting about for a hot young car designers: Hollywood. Express 3500, Impala, is available. and Audi, putting it in the second vehicles and components before they exist in not exist six or seven years ago.” BMW GROUP 2.9-6.9% 2015 models Chrysler Spark EV, Suburban 1500, niche to claim as its own. design honcho Ralph Gilles told Those digital surfacers also are used by Expires Oct. 31. 2015 models 3.9-6.9% tier of premium brands. Daily Auto News: You can get the news you the physical world — are the fastest growing Tahoe Lancer, Outlander Sport $1,000 0-6.9%$750 0.9-9.9% “The key is awd,” said Fukuo, who an audience in Detroit last month that both companies long term, 3.9-7.9% 0-6.9% At Subaru, awd accounts for 98 segment of automaker design teams, Gilles filmmakers to digitally create sequences 228, 320, 328, 328 Gran Turismo, Silverado 1500 Mirage needmoviemakers every day. Go and to autonews.com/dailynewscarmakers use the same but initially, as a young BMW 2.9-7.9% as senior managing director at Hon- percent of sales. said. that would otherwise be impossible to film, 328d, 335, 335 Gran Turismo, 428, Camaro, Sonic, SS Outlander 2014 models topowerful sign up for software our daily toe-mail digitally newsletter. design their designer, they get opinionda oversees the Acura division and “Subaru has carved out a niche such as those in big-budget science-fiction 428 Gran Coupe, 435, 435 Gran Coupe, Volt “Those are the virtual builders,” he said. Lancer, Lancer Sportback, advanced drivetrain vehicles such as products. tempted away by that.” 528, 535, 535 Gran Turismo, GMC Sierra 2500HD, $2,000 2.9-6.9% with this and has cultivated one of “There is a whole pool of people that does film series such as Outlander, Outlander Sport $1,500$1,000 0-6.9% 0-8.9% Transformers In every issue, 52 times a year: 535d, 550, 550 Gran Turismo, Sierra 3500HD $500-$1,000 1.9-4.9% 0-3.9% hydrogen fuel cell cars. “As a premi- Wars. and Mirage the most loyal bases in the indus- nothing but digital surfacing. That job did Star Gilles: Young 640, 640 Gran Coupe, 650, Acadia 0-7.9% um brand, we need something differ- “It’s exciting. It’s glamorous,” Gilles said. “I i-MiEV try,” said Edmunds.com analyst Je- designers get 650 Gran Coupe, 740, 750, 760, Savana 2500, Lancer Evolution ent from the competition.” don’t know what the career path is in those ActiveHybrid 3, ActiveHybrid 5, Savana 3500, remy Acevedo. “The awd direction 2.9-6.9% NISSAN NORTH AMERICA RuralOf course, other dealers premium brands Goodbye, Big 3! Does anyone care? “tempted away” ActiveHybrid 7, Alpina B6 Gran Coupe, Terrain, Yukon, Fukuo aims to take Acura in also 3.9-6.9% Expires Oct. 31. by glamour. Alpina B7, M3, M4, M5, M6, Yukon XL 1500 2015 models also offer awd. It was installed on 58 3.1-6.1% shows considerable promise.”Once again, we would origin of parts and around the world, it is confusing at best M6 Gran Coupe, M235, X1, X3, Sierra 1500 percent of all BMWs sold in the U.S. 2014 models Nissan Altima $750-$1,250 Of all the Acuras traded in from X4, X5, Z4 2014 models needthrough September some and on 90 per- appear to be down to two ownership, you’ll get a — so confusing that we might be better 2014 models LaCrosse $1,000-$2,500 0-3.9% January to September domestic2014, 34 per-car companies. headache before you can served if we gave up trying to figure out Buick $1,500-$2,000 0-3.9% Nissan Maxima $4,000-$4,500$2,000-$3,500 cent of all vehicles from Audi. 228, 320, 328, 328 Gran Turismo, $1,000 0-3.9% cent were swapped to buy another BMW Enclave Titan $500-$3,500 The success of Audi and Subaru, Fiat Chrysler come to any conclusions. domestic vs. import. 328d, 335, 335 Gran Turismo, 428, 435, Acura, according to Edmunds. At Regal Murano heavy-duty help Automobiles made it official Sure, we know which car Chrysler has become a big, important LaSorda’s fund 528, 550, 550 Gran Turismo, 535, with the latter’s well-marketed awd Encore, Verano $500-$1,000 0-3.9%$5,000 0-5.9% Altima, awd-heavy Audi, it was 49 percent. XTS over the weekend that the companies are German, but part of an international company based 535 Gran Turismo, 535d, 640, Cadillac $4,000 0-5.9% Pathfinder Hybrid $1,000-$1,500$500-$1,500 system and rabid fan base, isn’t lost At Subaru, 53 percent. • Dealer Best Practices Vast rural areas of North America are being transformed by newly formed company is don’t look too closely at • Incentive Tables 640 Gran Coupe, 650, 650 Gran Coupe, in the Netherlands or London or CTS $2,500-$3,500 0-5.9% Quest on Acura executives. Subaru isn’t a The Acura Business Planning Of- finds new investor 740, 750, 760, ActiveHybrid 3, ATS $2,000 0-5.9% hydraulic fracturing, the controversial energy extraction not American. So we can, as Rolls-Royce and other somewhere, but not Detroit. It is 0-5.9% Armada, direct competitor to Acura, yet ActiveHybrid 5, ActiveHybrid 7, SRX NV Cargo NV1500, process better known as fracking. fice, led by Honda North America 0.9-5.9% Fukuo coined the term “Acurist” for we did before to purchased brands or GM’stry to goal controlledwith the redesigned by the family Impala that has always ActiveHybrid 740, ActiveHybrid 750, CTS-V NV Cargo NV2500 HD, Executive Vice President Erik Berk- — an old friend Alpina B7, M5, M6, M6 Gran Coupe, The process is transforming rural auto dealerships as well. DaimlerChrysler, say dissect the corporatewas to dropowned its rental-lot Fiat, which status. took Now, over Chrysler 0.9-5.1% ELR NV Cargo NV3500 HD $1,500 the loyal customer he aims to culti- man, aims to hash out details of a M235, X1, X3, X5, X6, X6 M, Z4 3.1-6.1% Silverado 2500HD, goodbye to an American structure of Volkswagen.it comes downwhen to nobody a name else game. wanted it. It probably ieter Zetsche’s Chevrolet Murano CrossCabriolet $1,250$500-$1,000 The dealersvate, need a somenod tohelp, the and “Subarist” automakers serious about Chrysler Cooper* $750 new brand direction by the debut of days are long over, but Mini AUTOMOBILES Silverado 3500HD $500-$4,500 0-2.0% Sentra selling pickupsmoniker ought adopted to jump by in withSubaru both afi- feet to assist. Chrysler as part of the Big 3. Sure, we know that saved Chrysler from going out of Dhe’s pretty good at maintaining ties with old FIAT CHRYSLER Versa the NSX, which is expected as early colleagues from Auburn Hills, Mich. The Daimler Silverado 1500 $500-$3,500 0.9-6.9% The oil cionados.and natural gas wells being drilled into underground Since the company is no Toyota, Honda and Nissan business. Expires Nov. 3. In lieu of rebates, cut-rate financing Suburban 1500, NV Passenger NV3500 HD, as January’s Detroit auto show. Impala the king chairman is investing in the venture capital fund $2,000-$2,500 0-3.9% $500 “Looking at Subaru, I felt that we longer American, I guess we are Japanese, except they So now Fiat Chrysler has moved its • Final Assembly is available. NV 200, Pathfinder, shale deposits promise to pump tens, perhaps hundreds, of • Cars & Concepts 2015 models Tahoe The NSX halo car will symbolize $0-$2,500 can put it in the same boat have a huge presence corporate structure from the United run by Tom LaSorda, who replaced Zetsche as Express 1500, Versa Note millions haveof dollars to have into a strong, small-town clear direc- economies. Rural Chrysler 200 $1,000 0-5.9% the new identity. But how to square of rental cars? Chrysler’s CEO in 2006 when Zetsche returned to Express 2500, $2,000 2.9-6.9% SUBARU tion as a brand,” Fukuo told Auto- as Honda, Toyota, Nissan and others: around the world, including in the U.S. States. But it still engineers, designs and Town & Country landowners can get one-time. “What’s payments important of $4,000 is thatper acreimage or with the rest of the line- Express 3500 $500-$2,000 0-3.9% Expires Nov. 3. companies with local manufacturing, And, of course, General Motors and manufactures cars in the U.S. And it Germany to head Chrysler’s then-parent. Dodge Journey $500-$2,250$500-$1,000 0-5.9% 0-5.9% 2015 models 1.9-7.9% motive News up is a challenge. Traverse $500-$2,000 3.9-5.9% more for the right to drill beneath their land, plus residual pay- No, not that Back in the day, the two men worked closely Dart 2.9-7.9% to have the technology, styling and engineering and even design to varying Ford still have their corporate roots in engineers, designs and builds cars in Lutz on the Aztek: Camaro BRZ, Legacy, Outback ments of 15 to 19 percent for any hydrocarbons removed.“As long as you have an ILX that Grand Caravan $500-$1,000 $2,000 performance to evolve all together. degrees, reporting sooner or later to an Detroit. Italy and various other places. together as Chrysler’s No. 1 and No. 2. LaSorda later Cruze, Malibu $500-$2,000$500-$1,500 2.9-6.9% 1.9-5.9% Forester 2014 models doesn’t even pretend to be exhila- Fiat 500 $1,500-$2,000 0-3.9% Dealerships in those areas must prepare for new challenges offshore parent. Even among those obvious examples,Impala, GM says Sonic $500-$1,500 2.9-6.9% Otherwise, I don’t think we can in- Fiat Chrysler is not American. It’s not 500C, 500e $500-$1,000 0.9-6.9% rating, you’re going to have prob- had a stint as Fisker’s CEO, then Equinox $1,000 0-7.9% BRZ, Impreza, Legacy, they certainlycrease will face, the such number as high-paying of loyal petroleum-extrac-cus- Does anyone care anymore? national identity gets blurry fast. ince the stylish,Italian. redesigned Jeep Patriot $0-$750 0-5.9% 0-7.9% lems,” said Kurt Sanger, an auto an- Blame GM culture launched his investment group, Outback, Tribeca, • Keith Crain Column Volt $500-$1,000 2.9-6.9% tion companies hiring away trained technicians. Equally, Cherokee 1.9-5.9% 1.9-7.9% tomers, so-called Acurists.” There are so many international Bentley and Rolls-Royce areS obviouslyChevrolet ImpalaIt’s part sedan of that rolled new out breed of global Impala XV Crosstrek Hybrid alyst with Deutsche Securities t’s always assumed that Bob Lutz got IncWell, in May 2013. The firm Compass, Grand Cherokee $500 0.9-6.9%$1,500 2.9-6.9% dealerships mustSubaru, be able poised to order forand obtainits sixth far more regular automobile companies with strong British brands, and Lamborghiniin the is, ofspring ofcorporation 2013, that is everything and also SS Forester Japan. “They are going to launch a has begun making investments Ram Cargo $1,000-$1,500 0.9-6.9% General Motors Ihis job as General Motors Spark EV and heavy-dutystraight pickups year to of cope record with U.S. their sales, customers’ de- investments in any number of countries course, Italian. Or are they if theirexecutives havenothing. been telling anyone automotive strategy board decreed that 2500, 3500 TOYOTA MOTOR SALES luxury halo carc the brand might not czar in 2001 — coming out of’ productretirement out of its second fund, which 2014 models GMC Sierra 2500HD, Expires Nov. 3. In lieu of rebates, cut-ratemands financing and notsaw be sales limited soar to 20 traditional percent to ordering 375,485 patterns. that it is difficult to figure out which parents are based elsewhere?who will listen thatSo its we days have as the a rental- Big 2 in Detroit these henceforth, 40 percent of all new GM $2,000-$5,250 0-3.9% be ready for.” at age 69 — because of the spectacular LaSorda said raised almost $10 Sierra 3500HD $500-$4,500$500-$3,500 0-2.9% 0-6.9% is available. one’s a native of what country. This is a global industry. Withlot stapleall the are over.days. Who cares? Chrysler Town & Country $1,000-$5,000 0-2.0% 2015 models Consideringvehicles the staggering this year number through of Septem-heavy-duty pickups products would be ‘innovative.’ That Sierra 1500 failure of the Pontiac Aztek. million. 300C $1,000-$4,250 0-2.0% 0% If you start to analyze the content and suppliers and assembly plantsSo scattered this headline It’sin a whole new world. started a trend toward setting internal Yukon, Yukon XL 1500 $1,500-$2,500 0-3.9% Lexus CT 200h, sold in frackingber. areas, Acura’s neither sales factories slid 1 norpercent dealers to can afford “Dieter said, ‘What’s this about 300 Lexus 0.9-1.9% POSTAL NOTICE Times The New York In his Road & Track Savana 1500, Savana 2500, $2,000 2.9-6.9% IS 250, IS 350 119,750 through September, after last week couldn’t have gone column, Lutz goals that meant nothing to the Dodge Charger $2,500-$4,000$1,500-$2,000 0-3.9% to miss this opportunity. If automakers want to take full ad- 89th year, No. 6642 confirms as much: “I was getting an Zetsche: Let a second fund? I want to invest.’ Savana 3500 $750-$1,500 0-3.9% RX 350, RX 450h rising 6 percent in 2013, trailing the over well at GM headquarters: “You customer. Everything that looked Dart $1,000-$4,000 0-5.9% vantage, they should precede energy exploration companiesAUTOMOTIVE NEWS (ISSN 0005-1551) is award, and [then-GM And I said, ‘Man, oh, man, we’d Acadia $750-$1,000 2.9-6.9% Toyota Venza $500-$1,500 $1,000 Can Rent Whatever You Want, as Long me in on this. Avenger $1,000-$3,000 0-3.9% overall market’s 8 percent gain. reasonably radical got green-lit.” love to have you,’” LaSorda said. Terrain Tundra into areas where shale plays are happening to make surepublished their weekly at 1155 Gratiot Ave., Detroit, We invite letters from our readers.chairman] Rick Wagoner Journey $1,000-$2,250 0% “Making Acura 100 percent all- MI 48207-2997. Periodicals postage is paid as It’s an Impala.” AMERICAN HONDA MOTOR CO. Corolla, Prius, Tacoma $500 Please limit your letter to 250 wordsintroduced me and took a Ⅲ “The guy in charge of IncWell launched its first fund Challenger $1,000-$2,000 0-3.9% rural dealerships are also up to speed. at Detroit, MI and at additional mailing offices. Columnist Josh Barro argued that, of less than $3 million to invest in very-early-stage Prius Plug-in wheel drive could be a good idea,” and tell us whether we may print it. We Durango Expires Nov. 3. 2015 models 2014 models couple of funny digs. When I product development was 0.9-4.9% said Tatsuo Yoshida, an auto ana- POSTMASTER: Send address changes to despite the redesign,reserve the Impala the right to edit it. technology companies. At the time, IncWell made Grand Caravan $500-$2,000 0-3.9% 1.9-4.9% AUTOMOTIVE NEWS, Audience Development, gave my speech, I said, ‘It’s Don Hackworth, an old- Fit, Odyssey, Pilot Lexus CT 200h, ES 300h, continues to be the rental-lotInclude your king, name with and title, your headlines more for the caliber of its investors than Fiat 500, 500C $1,500-$4,000 0-1.9%$2,500 0-4.9% Honda 0.9-1.9% An 1.9%mpglyst with report Barclays Securities card Japan. 1155 Gratiot Ave., Detroit, MI 48207-2912. ES 350, GS 350, IS 250, company’s name, your city and state.curious that the man who school guy from the tradition the size of its fund. They included Roger Penske, 500L $500-$2,000 0.9-6.9% Accord (incl. Hybrid) “It is very simple from a sales and Canadian Post International Publications Mail 54 percent of 2014 Impalas becoming ILX IS 350, LS 460 Tell us what your connection to theoversaw the Aztek would of shouts, browbeating, and Jeep Patriot $500-$1,500 0-5.9% Acura 2014 models The pace of U.S. light-vehicle fuel economy gains slowedProduct last (Canadian Distribution) Sales rental cars. former Chrysler executive Steven Landry and Toyota Camry marketing point of view to sell the Compass $0-$1,500 0-5.9% 0.9-3.9% year, the EPA said in an annual report. But even though theAgreement 0.5 #40012850, GST#136760444. auto industry is. comment on my failures.’ It by-God-I-want-it-done. He Simon Boag, another former Chrysler exec who is Accord (incl. Hybrid), (incl. Hybrid) $1,500-$2,000 0-6.9% cars with such technology.” That figure suggests that Chevy has Cherokee Honda $1,000-$2,000 Canadian return address: 2-7496 Bath Road, E-mail letters to: [email protected] the house down. said, ‘Look. We’ve all made CR-V Venza $500-$2,000mpg improvement 0-6.9% Acurain the already2013 model offers year awd was on allless ve- than half failed miserably at its stated goal for the IncWell’s managing director. Grand Cherokee $500-$1,000 0.9-1.9% Mississauga, ON L4T 1L2 Printed in the U.S.A. Or send them to: Letters, up our minds that the Aztek is

Civic (incl. Hybrid), Odyssey 0.9-4.9% Tundra $500-$2,000 When I apologized later, he Ram 2500, 3500 $1,000-$3,000$500-$2,500 0-5.9% 1.9-7.9% the 2012 savings, thehicles report except contained the entry encouraging ILX sedan. signs. “new” Impala: to invertAutomotive its sales fromNews, 1155 Gratiot Ave., LaSorda said IncWell’s first fund invested in 12 ILX (incl. Hybrid) Prius said, ‘Ah, I was expecting it. gonna be a winner. It’s gonna 1500 $2,500 Acura For starters, the EPA said the mpg improvements came be- 70 percent fleet for theDetroit, last-generation MI 48207-2997 Lutz: Customer startup companies, all of them still in business. Avalon, Sienna $1,000-$1,500$500-$1,500 But the base model for every name- astound the world. I don’t Cargo HYUNDAI-KIA AUTOMOTIVE Plant overtime car to 70 percent retail sales. We’re disappointed in the wasn’t in mind Expires Nov. 3. RAV4 cause$1,500 auto manufacturersplate, including introduced the new crossovers, fuel-saving is tech- want any negative comments FORD MOTOR CO. 2015 models 2.9-4.9% $1,000 Week ending Oct. 18 Aztek. I’d enjoy hearing what you think Avalon Hybrid nologies. As those technologiesfront-wheel spreaddrive. to more autos, they will truck Cue the GM PR department. Expires Jan. 5. 2015 models Sonata Hybrid 2.9-7.9% Did you know that you canwe’re write doing wrong.’ After three about this vehicle. None.

0-5.9% Hyundai Corolla, Prius v $500-$1,000generate additional improvements.Subaru, by contrast, offers its ve- Chrysler Group They informed Barro — and us — Anybody who has bad opinions about it, Elantra, Sonata Tacoma $500 Toledo (Ohio) North a letter to the editor on ourconversations, Web he offered me a job.” Ford Explorer, Taurus 2014 models hicles with awd only, except for the that only one-third of the redesigned I want them off the team.’ As if the 0-6.9% Prius c Automakers are introducing innovations — including Ford’sToledo (Ohio) Supplier Park truck site? Here’s how. Of course, ridiculing the 15-year-old the final say ... Fiesta, Fusion, Equus, Genesis, rwd BRZ sporty car. 2014 Impalas went to rental public is gonna give a s—- about team Hyundai 2.9-3.9% VW GROUP OF AMERICA31; Audialuminum-body expires Jan. 2. F-150 pickup and Audi’s plan to electrify car/truck Fusion Energi Ford Motor Co. truck � Go to autonews.com. Aztek is piling on — long, Santa Fe, Santa Fe Sport, 0.9-6.9% Volkswagen expires Oct. Acura is introducing next-genera- companies. The disconnect: The spirit.” autonews.com“I could never have hoped and 2015 models Chicago C-Max Energi, C-Max Hybrid, 0-7.9% Sonata Hybrid most models1.9-7.4% — that don’t show up in EPA data yet. Mazda truck Near the top of our homewhistle page, has blown. What’slong thereafter left theto Escape, Focus Electric, 2.9-6.9% tion awd technologies in two Kansas City (Mo.) Truck previous-generation car� is still in Ⅲ “One guy I informally interviewed 0-8.9% Sonata S6, S7, S8 and others are ahead of fuel economy standards and banking say about the infamous ugly duckling never had dreamed of being Fusion Hybrid Audi sedans. The first came in the new Kansas City (Mo.) Van production, branded as theput Impalayour cursor on the tab that about how the Aztek happened was one “ Elantra, Elantra GT A3, A4, A5, A6, A7, truck F-250, F-350, F-450 credits to use1.9-9.4% in the future. Kentucky Truck (Louisville) truck says “Opinion.” and commercial failure? Well, Lutz used JAGUAR LAND ROVER allroad, Q3, Q5, Q7, S3, TLX sedan that debuted in August, Limited and sold exclusively to fleets. of the top guys on the project. And this here 10 years Flex, Transit Connect, And the EPA says its projections for 2014 average fuel econo- Louisville Assembly the Aztek to give insights into Old GM 0.9-8.9% Expires Oct. 31. 2014 models S4, S5, TT, TTS and the next arrives later this year in truck GM doesn’t distinguish� the Click two on in the its section below that guy, he looks at me and he says, ‘I’m Transit-150, Transit-250, 1.9-3.9% CC, Eos, Passat, 1.9-7.7% General Motors culture. afterwards with Transit-350 Volkswagen my are artificially low anda hybrid final numbersversion of likely the flagship will be higher. RLX. car sales reports. says “Send us a Letter.” That will proud of it.’ Proud of the Aztek? ‘Yup. 1.9-9.9% Jaguar F-Type, XJ Arlington, Texas Ⅲ The Aztek “got everybody excited. At Expedition EL, Expedition, Tiguan 2014 modelsBut the report also showsA re-engineered how challenging Super it will Handling be for the truck There’s one way GM couldbring prevent up a letter form. That was the best program we ever did him.” 0-8.9% MAZDA Bowling Green, Ky. the time, GM was criticized for never F-150, Focus, Focus ST industry to reach federalAll-Wheel-Drive fuel economy targetssystem, for or the SH- 2025 Ingersoll, Ontario (CAMI) such confusion in the future:Follow Use the a directions. at GM. We made all our internal goals, MKC, MKX Expires Oct. 31. In lieu of rebates, cut-rate financing Audi A4, A5, A6, A7, � doing anything new, never taking a Fiat Chrysler Automobiles Lincoln 0.9-8.9% 1.9-9.4% Lansing (Mich.) Delta Township truck different name for the old Impala. The MKS, MKT, MKZ (incl. Hybrid), is available. allroad, Q5, Q7, S4, S5,model year. Each additionalAWD, ismpg offered technology as an option becomes on thepro- we made the timing, and I’m really Chairman John Elkann, 2015 models 0-8.5% Montgomery, Ala. car chance. So Wagoner and the “ S6, S7, S8, SQ5, TT, TTS Chevy Rentado? Navigator 2014 models 0-9.2% Beetle $1,500-$2,000gressively 0-9.8% more expensive,midsize making TLX. vehicle affordability key. Hyundai car/truck proud of the part I played in it.’ He had reflecting on the day he CX-5, Mazda6 Volkswagen Meanwhile, the RLX will get Acu- And the recent swing to more trucks and fewer electric vehi- Kia West Point, Ga. truck tears in his eyes. It was almost tragic.” persuaded Sergio Ford C-Max Energi, C-Max Hybrid, CX-9 CC, Eos, Golf, GTI, 2014 models ra’s Sport Hybrid SH-AWD, which Normal, Ill. E-150, E-250, E-350 Super Duty, $3,500 0-8.5% Jetta (incl. Hybrid), cles shows consumers care more about what they need than Mitsubishi car Marchionne to take 0-8.2% teams two electric motors to deliver N.Y. move is not a Edge, Expedition, Expedition EL, CX-9 Jetta SportWagen, what others think0-9.8% they should want. Chattanooga LETTERS TO THE EDITOR the job as Fiat CEO 0-8.4% Passat, Tiguan, more control and horsepower. That Volkswagen Explorer, Fiesta, Flex, Focus Electric, 0-5.9% Mazda3 Reaching the 2025 standards will be hard. Automakers are vote against Detroit Fusion Energi, Fusion Hybrid, Mazda2, Mazda5 Touareg (incl. Hybrid) system also will be a cornerstone Note: Overtime could be daily, Saturday or both. 0-6.4% off to a good start but must see it through to the end. Mustang, Taurus 0-6.9% MERCEDES-BENZ technology in the NSX sports car To the Editor: city is insignificant compared with the must go global. Those romantic namesChina’s policies are pushing out pickups Escape, Fusion 0-7.9% Expires Oct. 31. 2015 models The payoff can be a cleaner future for people and a sustain- Resumes F-250, F-350, F-450 due next year. PlantI read closings the observations regarding more than 1,600 jobs secured by the have little relevance to a millennial 0-8.9% C63 AMG, C250, *Applies to select models only Transit Connect Benz able future for the auto industry.Fukuo said awd systems offer bet- Cadillac in Keith Crain’s Oct. 6 n/acolumn decision this month to produce our premium shopper in China, for 0.9-8.9% Mercedes- uring the National Day holiday this Focus C350, GLK250 BlueTEC, Chrysler Group ter handling, stability and accelera- Connerwith interest Avenue (Detroit) (“Cadillac is making big flagship CT6 in Detroit. instance, where the reality is that Dmonth in China, a pickup on a Focus ST GLK350, ML350, ML400, The incident highlighted the kind of tion. The latter will help Acura deliv- mistakes”). Oct. 20 The relocation decision is entirely alphanumeric nomenclature is a highway in the central Hunan province Lincoln MKS, MKT, MKX, SL63 AMG, SL65 AMG, Ford Motor Co. policy treatment that has stymied pickup 0-5.9% er responsive driving without a V-8. Without wishing to consume unrelated to the personal living deeply entrenched industrywide made it to the front page of newspapers MKZ (incl. Hybrid), Navigator, SL65 AMG Black Series, Dearborn, Mich.† sales in China. When Beijing The practice has stifled pickup sales in Navigator L SL400, SL550, SL600, “We’re aiming for a sporty, perfor- valuable column space elaborating the preferences of any Cadillac executive. practice. and websites. China. Fewer than 255,000 were sold in 3.9-5.9% THE WEEKLY NEWSPAPER OF THE INDUSTRY Michigan Assembly (Wayne) Oct. 20 implemented its Road Traffic Law in SLK55 AMG, SLK250, SLK350 1.9-3.0% Established in 1925, published everymance Monday vehicle,” by Crain Communications he said. “A Inc. heavy GENERAL MOTORS 2500, 3500 rationaleGeneral Motors behind the various changes No corporation would tolerate such While I have the utmost respect forIt was no ordinary pickup, but one China in the first seven months of this Sprinter 2014 models 2003, it granted city governments the Expires Oct. 31. In lieu of rebates, cut-rate financing Keith E. Crain,engine Editor-in-Chief is no good.” takingDetroit-Hamtramck, place at Cadillac, Mich.‡ Nov. I am, 10 however, indulgence by its leadership. Crain’s view, on this occasion we maycamouflaged as a sedan. To smooth up year, accounting for less than 2 percent is available. C63 AMG, C250, liberty to decide whether to permit 2015 models KC Crain, GroupMike Publisher Accavitti, the luxury brand’s compelledLansing (Mich.) to respond Grand River ‡Plantto Oct.some modifications 20 of the The disadvantagesIs there to business a pickup-sedan segmenthave to now? agree Nope. to disagree. It’s just a traffic during holidays, traffic regulators in of total vehicle sales, according to Mercedes Benz pickups to drive in their cities. A loophole C300, C350, CLS63 AMG, Jason Stein, Publishergeneral and manager, Editor said in July that the †Changeover pickup driver trying to get out of highway tolls in China. China allow sedan drivers to use highways picacn.com Buick Enclave $500-$1,000 1.9-4.9% issues he has raised. efficiency that Crain rightfully Regardless of where its executives are 3.9-7.9% E63 AMG, E250 BlueTEC, in the law allowed traffic regulators in , a Chinese website that Encore, LaCrosse, Regal, HOW TOawd REACH technology US is something Acura TheSource: relocation Automotive News of aboutData Center 100 points out have been anticipated located, Cadillac is and always willtoll be free. The police eventually discovered covers domestic pickups. E350, E400 Hybrid, E550, Web site: autonews.com most Chinese cities to simply classify Verano GLK250 BlueTEC, GLK350, “can wrap our brand around,” executives to New York — representing and will be overcome by making from Detroit. the pickup and fined its driver. And pickups are losing market share. Cadillac ATS, CTS, CTS-V, Editorial staff pickups as commercial vehicles and bar 1.9-6.9% ML63 AMG, ML320 BlueTEC, a division of adding: “It’s a space that we own.” a net loss of no more than 50 jobs, as changes to current corporate It is our hometown, and as we Through July, pickup sales dropped 4 Escalade ESV, Escalade, [email protected] them from entering their cities. ML350, ML350 BlueTEC, Phone: 313-446-0463 Fax: 313-446-0383 many multibrand roles will likely be processes. Cadillac leadership will venture forth to challenge the world percent as China’s overall light-vehicle SRX, XTS ML450 Hybrid, ML550, Silverado 2500 HD, back-filled at General Motors decide on all matters Cadillac, at every with our unique set of American sales increased 8 percent. Chevrolet SL63 AMG, SL65 AMG, SL550, Advertising Silverado 3500HD $2,000$500-$1,000 2.9-6.9% 1.9-4.9% SL600, SLK55 AMG, SLK250, [email protected] headquarters — is not a vote against touch point, and will be accountable values, we would like to think our Traverse $500-$1,000 2.9-6.9% Phone: 313-446-6050 Fax: 313-446-8030 Detroit. only to GM top management and hometown is rooting for us. Malibu Editorial data/research It is about structurally entrenching a stakeholders. After all, our success is also a victory To locate information that has been published challenge to the status quo by The obvious emotional appeal of for Detroit. in Automotive News, call 313-446-0406. reinforcing the psychological and historical subbrand names such as Customer Service physical separation in business Eldorado, Fleetwood, etc. should be JOHAN DE NYSSCHEN New subscriptions | Renewals | Address changes | Delivery problems [email protected] philosophy between the mainstream balanced against the fact that those President 877-812-1584 (U.S. or Canada) brands and GM’s luxury brand. In any names resonate more with baby Global Cadillac 313-446-0450 (all other locations) event, the handful of jobs lost to the boomers and are U.S.-centric. Cadillac Fax: 313-446-6777 Detroit 2015.Q2 Editorial Calendar

APRIL AD 6 Ad close: Mar 25 13 Ad close: Apr 1 20 Ad close: Apr 8 STUDY 27 Ad close: Apr 15 Fixed Operations page F&I page Production Line page Connected Car page U.S. Sales Report – March Marketing page Legal file Remarketing page New York Auto Show coverage Auto Shanghai preview Q&A: The Supplier Speaks SAE coverage PACE Award finalists PACE Award finalists Special Section: Rising Stars Quarterly Shareholder Value Report Automakers & Suppliers Auto Shanghai coverage Automechanika Chicago coverage PACE Award Winners Guide to Top Dealership Groups Ranked by Used-Vehicle Sales Exclusively sponsored supplement 2 3 4 1 AUTOMOTIVE NEWS EVENT April 20 • Detroit • autonews.com/pace Automotive News PACE Awards *Bonus distribution of April 20 issue MAY AD 4 Ad close: Apr 22 11 Ad close: Apr 29 STUDY 18 Ad close: May 6 25 Ad close: May 13 Fixed Operations page F&I page Production Line page Connected Car page U.S. Sales Report – April Special Section: Marketing Q&A: Top North American Remarketing page Q&A: Top North American Q&A: Agency & Marketing Automaker Executives Legal file Automaker Executives Executives

2 3 4 1 AUTOMOTIVE NEWS EVENT May 12 • Los Angeles • autonews.com/laseminar Automotive News Marketing Seminar *Bonus distribution of May 11 issue

JUNE

1 Ad close: May 20 8 Ad close: May 27 15 Ad close: June 3 22 Ad close: June 10 29 Ad close: June 17 Fixed Operations page U.S. Sales Report – May Production Line page Connected Car page Remarketing page Marketing page Q&A: The Dealer Speaks Legal file Special Section: F&I Guide to Top Suppliers Exclusively sponsored supplement

2 3 4 1 2 AUTOMOTIVE NEWS EVENT June 9 • Birmingham, U.K. • anerisingstars.com Automotive News Europe Rising Stars June 9-10 • Birmingham, U.K. • ane-congress.com Automotive News Europe Congress

autonews.com 2015.Q3 Editorial Calendar

JULY AD 6 Ad close: June 24 13 Ad close: July 1 STUDY 20 Ad close: July 8 27 Ad close: July 15 Fixed Operations page F&I page Production Line page Connected Car page U.S. Sales Report – June Marketing page Legal file Remarketing page Q&A: The Supplier Speaks Special Section: Future Product Pipeline: Quarterly Shareholder Value Report 40 Under 40 Retail General Motors Future Product Pipeline: Japan (Toyota, Nissan, Honda)

3 4 1 2

AUGUST AD 3 Ad close: July 22 STUDY 10 Ad close: July 29 17 Ad close: Aug 5 24 Ad close: Aug 12 31 Ad close: Aug 19 Fixed Operations page F&I page Production Line page Connected Car page Remarketing page Future Product Pipeline: U.S. Sales Report – July Future Product Pipeline: Ford Future Product Pipeline: Future Product Pipeline: Europe (BMW, Jaguar, Land Rover, Marketing page Japan Chrysler Mercedes-Benz, Mini, Smart, Volvo) (Mazda, Mitsubishi, Subaru) Future Product Pipeline: Legal file Special Section: Korea (Hyundai, Kia) The State of Suppliers Guide to Industry Executives Exclusively sponsored supplement

3 4 1 2 3 SHOW DAILIES Aug 4, 5, 6 Ad close: July 8 CAR Management Briefing Seminars Show Dailies *Bonus distribution of Aug 3 issue

SEPTEMBER

7 Ad close: Aug 26 14 Ad close: Sept 2 21 Ad close: Sept 9 28 Ad close: Sept 16 Fixed Operations page Future Product Pipeline: Exotics Production Line page Connected Car page U.S. Sales Report – August (Aston Martin, Bentley, Ferrari, Lamborghini, Frankfurt Auto Show coverage Remarketing page Maserati, Rolls-Royce, Tesla) Frankfurt Auto Show preview Special Section: Marketing Legal file Q&A: The Dealer Speaks Future Product Pipeline: Europe Q&A: Agency & Marketing NAAA Convention coverage Special Section: F&I Executives (Audi, Porsche, VW) Special Section: Guide to Certified Pre-Owned Design & Technology Vehicle Programs Exclusively sponsored supplement

4 1 2 3 AUTOMOTIVE NEWS EVENT Sept 22 • New York • autonews.com/nyseminar Automotive News Marketing Seminar *Bonus distribution of Sept 21 issue

autonews.com 2015.Q4 Editorial Calendar

OCTOBER AD 5 Ad close: Sept 23 12 Ad close: Sept 30 19 Ad close: Oct 7 STUDY 26 Ad close: Oct 14 Fixed Operations page F&I page Production Line page Connected Car page U.S. Sales Report – September Talk from the Top: Tokyo Motor Show preview Talk from the Top: Q&A: The Supplier Speaks Global Automaker Executives Special Section: Global Automaker Executives Marketing page Best Dealerships To Work For Remarketing page Early ad close: Sept 18 Legal file Quarterly Shareholder Value Report 4 1 2 3 AUTOMOTIVE NEWS EVENT Oct 14 • Chicago • autonews.com/bestdealerships Automotive News Best Dealerships To Work For *Bonus distribution of Oct 19 special section NOVEMBER AD 2 Ad close: Oct 21 9 Ad close: Oct 28 STUDY 16 Ad close: Nov 4 23 Ad close: Nov 11 30 Ad close: Nov 18 Tokyo Motor Show coverage F&I page Production Line page Connected Car page Remarketing page Special Section: Marketing page Los Angeles Auto Show Los Angeles Auto Show Legal file Fixed Operations U.S. Sales Report – October preview coverage Automotive News All-Stars SEMA coverage Special Section: 100 Leading Women in the North American Auto Industry Early ad close: Oct 23 4 1 2 3 4 AUTOMOTIVE NEWS EVENT Nov 9 • Detroit • autonews.com/leadingwomen Automotive News 100 Leading Women in the North American Auto Industry *Bonus distribution of Nov 9 special section

DECEMBER

7 Ad close: Nov 23 (early close) 14 Ad close: Dec 2 21 Ad close: Dec 9 28 Ad close: Dec 16 Fixed Operations page Special Section: F&I Production Line page Connected Car page U.S. Sales Report – November Marketing page Remarketing page Q&A: The Dealer Speaks 2015: Year in Review

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20140127-SHOW--0001-NAT-CCI-AN_-- 1/26/2014 7:48 PM Page 1 Full Page $22,440 Jan 23, 24, 25 ANTV @ NADA Tom and Jen will do 3 broadcasts today: autonews.com/nada NADA CONVENTION ❙ NEW ORLEANS DAY Close date: Jan 6 Two-Page Spread 42,960 3 The Automotive News NADA Dailies are autonews.com

® distributed at the annual convention of the Entire contents © 2014 Crain Communications Inc. All rights reserved. JANUARY 27, 2014 New M&A lingo: Horn hits reset button at VW Junior Page – 4 col. x 10” 16,420 ‘Nontraditionals’ National Automobile Dealers Association in San and ‘family offices’ Dealers like changes

Tim Lamb of Tim Lamb Group, whose in advertising plans, stand was crawling with acquisitive 20140126-SHOW--0001-NAT-CCI-AN_--end of stair-step spiffs1/25/2014 7:32 PM Page 1 dealers, is beginning to see signs of it. George Chaconas of Performance Gabe Nelson Brokerage is noticing it, too. [email protected] These deal makers are starting to hear ichael Horn, the new CEO of Francisco. All ads also appear in the NADA Daily from “nontraditional” dealership buyers. Volkswagen Group of Ameri- Of course, the market doesn’t need ca, has a message for VW deal- buyers; it needs sellers. But owners of Mers: We’re listening. Junior Spread – 8 col. x 10” 30,920 those privately held mid- to large-sized In his first major speech to a U.S. dealer groups that have become astonishingly body frustrated by shrinking profits and valuable in the past couple of years have a strict factory requirements, Horn’s team dilemma. If you own a baby behemoth, unveiled a broad overhaul of the U.S. sales ANTV @ NADA Digital Editions at no additional charge. Rates for what’s your exit strategy? In one transaction, and marketing strategy — and drew fre- Tom and Jen will do I mean. Who can afford to buy you out? quent applause from an audience that had NADA CONVENTION 2 broadcasts today: The publics? “They’re buying onesies,” arrived somewhat uneasy. ❙ NEW ORLEANS autonews.com/nada says Alan Haig of Among the changes promised at the make Presidio Group, a meeting were an end to stair-step incentives mergers-and- for dealers, a bigger budget for local advertis- JOE WILSSENS acquisitions firm. ing and a shift from humorous advertising Michael Horn, right, CEO of Volkswagen Group of America, talks with Richard Sharp, DAY Unlike the old days, to more tactical, sales-focused messages. general manager of Fred Beans Volkswagen in Devon, Pa., after the make meeting. inclusion in all three show dailies (four-color) are: the general manager Dealers interviewed after the meeting doesn’t stand a were upbeat, saying the changes will help had pushed for many of the changes as targets will be phased out this year, though Half Page – 5 col. x 7” 14,990 chance. A group with U.S. dealers propel Volkswagen toward its chairman of the brand’s U.S. dealer coun- customer satisfaction scores still will be 20 stores may be goal of selling 800,000 units in the United cil, said Horn’s remarks were a sign that used to calculate bonuses. by Richard Johnson worth $200 million, States by 2018. VW’s top executives in Germany are com- It also promised more money for adver- and Haig says: “$200 “They took the handcuffs off,” said Mike mitted to working with U.S. dealers. tising. Dealers were shown three new TV 2 million is too big to sell to the managers.” Sullivan, a Volkswagen dealer in Santa “Why we’re now seeing this renaissance spots that will focus on the attributes of autonews.com The assumption is that automakers will Monica, Calif. “They’ve made it so difficult of listening and change from VW manage- VW products, such as the fuel economy of block nontraditionals — buyers who are over the last couple of years to do busi- ment, I don’t know,” Ellis said. “What I do diesel engines. not already dealers. But who else has the ness, period, that the simplification of all know is this: I am very excited about the “For me, it’s quite obvious: We have wherewithal? that was a big deal. Now we have to see future.”Entire contents © 2014 Crain Communications Inc.product All rights reserved.advantages,” Horn said. “If the The talk this weekend focused on what it means.” Volkswagen said an unpopular stair-step customers don’t know this, we have to “family offices,” the investment arms of Hear Jimmythat? Ellis, It’s a dealer the from Atlanta who bonus program for meeting new-car sales make it more clear.” c super-rich families — wealthy clans withsound of skyrocketing ® long-term horizons, a desire to stick with JANUARY 26, 2014 existing store management and, most of inventories A dent in F-150 repair bill Full Page $9,290 all, the resources to provide a single- Half Page Spread – 10 col. x 7” 28,060 Record profits. Surging sales. And all is transaction exit strategy. (Example: The big and easy inMercedes the Big Easy. Or is it? plansFord dealers 2 offered training programs Pohlads in Minnesota.) Not to throw cold water on a hot New “That kind of investment is a good match Diana T. Kurylko of all 362 dealerships will have to invest in Orleans NADA party, but talk to enough 20% off on necessities for the car industry,” says Haig. “These [email protected] training, he said. dealers on the show floor here this families have begun to hire Wall Street ercedes-Benz USA is launch-to fix aluminum truck The second major program, the Mer- weekend and you’ll hear hints of concern. professionals to guide their strategies.” ing two programs that will cedes-Benz Immersion Center, also will Enough with the comparisons to 2009. Bradford Wernle Presidio is starting to hear from “family train thousands of dealership begin in midyear at the Mercedes factory Those days are over. Now, some dealers bwernle@crai offices,” and “they are trying to employees this year, intensify- n.com in Tuscaloosa, Ala. About 5,000 dealership say, let’s be mindfulM of what could come. ord is offering dealerships with understand the business,” said Haig, ing the brand’s focus on customer service employees will attend a two-day program Consider: body shops a 20 percent discount “And they are very interested.” and on deeper knowledge of Mercedes ve- this year that focuses on driving, the Ⅲ Interest rates remain at historic lows, on the $30,000 to $50,000 in special hicles. brand’s culture and learning about the Two-Page Spread equipment and training needed to re- 16,940 and will increase. Richard Johnson is editor of Automotive “We are going to double downF on this factory, Cannon said. Ⅲ Loan terms are rising, in some cases in pair the 2015 aluminum pickup. News-print. commitment to customer experience. We Over the next few years, about 20,000 the mind-boggling 100-month range. Dealers can get a maximum of $10,000 off have two major commitments that we are dealership employees will attend the im- Page One – 3 col. x 1” 8,280 (Housing bubble, anyone?) if they buy the gear before Oct. 31, said Paul launching this year,” said Steve Cannon, mersion program. Ⅲ Transaction prices are on the way up. Massie, Ford collision marketing manager. But look deeper andCEO there’s of Mercedes-Benz a larger USA. Ford is offering dealers the rebate so “It’s even good for long-term employees. 20140125-SHOW--0001-NAT-CCI-AN_-- 1/24/2014 6:56 PM Page 1 “We told dealers we will ask more“they of youcan be aluminum-capable before We will send all different levels of the deal- INSIDE JOE WILSSENS ■ HIGH HOPES FOR CADDY: Cadillac thanconcern we have most ever people asked before, butthe ifvehicle you launches,” Massie said. Ford ership staff,” said Joseph Agresta Jr., owner Steve Cannon, right, CEO of Mercedes- expects a double-digit sales gain | PAGE 3 | wantwon’t to talkbe aabout. Mercedes-Benz At dealerhas said you the 2015ANTV F-150 @ willNADA launch in the of Benzel-Busch Motor Car Corp. in Engle- haveleast to not make yet. a commitment, fourthand that quarterTom Benzthis and year.USA, Jen Fordchats will dois with showing Charlton Holmes of wood, N.J., and chairman of the Mer- ■ MORE MINORITIES: Chrysler adds more commitmentInventory levelsis not are just facility.the It ispickup peo- to dealers2Holmes broadcasts at Auto the convention today:Group in Shreveport, af- La., cedes-Benz Dealer Board. than 2 dozen stores in 2013 | PAGE 4 | ple,moving training, up at leadership a fierce and culture.”ter unveiling it aftertoautonews.com/nada much the fanfareMercedes two make weeks meeting. Mercedes-Benz didn’t disclose a target Junior Page Ford’s display of service tools to repair the F-150’s aluminum body panels draws a crowd. 7,200 clip.Training If you willlistened begin to in midyearago atat thethe Detroit auto show. but said U.S. sales will set a record in 2014, ■ TRUCK WARS: GM execs say Chevy can DAY Mercedes-BenzAutoNation CEO Leadership Academy for About 3,500 dealership employees will Agresta said. JOE WILSSENS grab pickup share from Ford | PAGE 66 | Ford is displaying numerous pieces of dealers,Mike Jackson general at themanagers andaluminum-handling key em- be trained equipment in phases, at Cannon its saidpaired after by the any bodyLast shop year today,”Mercedes Massie sales rose 13 percent ❙ NEW ORLEANS ployeesrecent Automotive from sales, parts and service.stand. They includebrand’s welding make guns, meeting. riveting Leadershipsaid. teamsThose includeto 334,344. bumpers c and grilles. NADA byCONVENTION Jason Stein ers are already experienced at working News World guns, air-filtration systems, vacuums for But special equipment is needed to make larger structural repairs, he said. with aluminum. The current F-150 has an you heard a story that’sCongress all too familiar: in Detroit, picking up aluminum dust and aluminum aluminum hood. work stations. Equipment suppliers and “The main thing is the separation of There are just too many cars in the equipment,” Massie said. Randall Reed, owner of six Ford dealer- BLACK & WHITE RATES market. technicians from Ford’s Rotunda tool sup- 1 ships in Texas and Oklahoma, says he will ply unit are showing dealers the ropes. Aluminum dust is explosive and doesn’t Forget the projections of 16.5 million autonews.commix well with steel dust, so dealerships be ordering the equipment for his body Aluminum has different properties than units. The underlying issue is simple. must erect a large curtain to keep work ar- shops as soon as possible. Inventory has significantly increased steel and requires some different tools, “We’re going to try to buy this early so though most dealership body shops are al- eas separate. Half Page from two years ago, as has the selling we’re not sitting there in October taking a 6,300 “One of the things about this program is rate. But the pace of sales won’t continue. ready equipped to handle basic repairs big hit,” said Reed, whose stores sell more such as damaged bumpers and grilles, that we do not require a clean room,” he And if sales don’t keep the same said. than 5,000 pickups a year. Because his momentum, there will be two options: Massie said. ® body shops are so big, Reed says he can’t “The majority of accidents can be re- Massie said average investment per slow the factories or fire up the incentives. dealership will depend on what equip- afford to wait. Jackson said inventory levels must be ment eachJANUARY already 25,owns. 2014 Many Ford deal- Reed predicted the new F-150 will be a contained to prevent a lapse into the huge hit: “It’s going to be a game changer destructive cycles of the past. in Texas.” c Full Page $17,460 Dealers are sitting on retail inventory of aboutEntire 3.5 contents million © 2014 units Crain — or Communications about Inc. All rightsA reserved.sunny forecast for Chrysler dealers $100 billion worth of unsold goods. Not good. Larry P. Vellequette Half Page Spread 12,600 So, here’s the warning shot across the [email protected] centives thatwarned create dealers fair lending not to get risks. complacent. Be- Mississippi. The question: Is anyone hrysler Group dealers Saturdaycause of this,“I told lenders them not should to lose be sight careful of where we Despite rosy sales Reservelistening? plan facesheard that they should expect scrutinyabout assumingwere at,” saidthat Eddy, dealer-level who owns solu- a Chrysler- ing long-promised diesel-powered Ram their profits to rise in 2014 as thetions fullyJeep-Dodge-Ram address their ownstore fair outside lending Youngs- 1500 pickups beginning next month to CFPBJason Stein promises is publisher and review editor of but notes automaker rolls out new productrisks.”A key question is whether an ap- further juice the Ram pickup’s 21 percent forecast, sharp Cto replace highly incentivized older models. town, Ohio. “Five years ago [as Chrysler Automotive News. proachwas modeled heading on intothe 2007bankruptcy], Philadelphia people in sales increase in 2013. NADA isDuring expected an hourlong make meeting, deal- differences from 2007 settlement settlementthis room would were be crying.”enough to satisfy the Dealers in the room questioned Chrysler dealers plan ahead Jim Henry to distributeers learned the about the automaker’s product executives about their plans to boost sales agencyChrysler that dealerships sold 1.8 million aren’t vehiclesdiscrimi- in the [email protected] new plan“NADA for theFair coming year, including intro- My colleagues who were here five years natingUnited against States legally in 2013, protected and had classes, fleet sales of the SRT Viper sports coupe, and were Creditduction Compliance of a new subcompact Jeep and the ago tell me it was grim. Nothing like the INSIDEADA is going out on a limb by suchbelow as minorities 20 percent or women. at the end of the year, told that the automaker had plans to beef Two-Page Spread PolicyRam & ProMasterProgram” City, a small commercial up marketing for the car. Another dealer 34,920 prospect of GM and Chrysler dying to recommending ways for dealer- AutoNation Inc. said in a statement Fri- ■ CALL TO ACTION: Chrysler executives said. Chrysler was able bookletvan. toBoth members are due atFicklin: year end.“Show They were questioned Ferrell’s Durango commer- 18” suck the air out of a learn-fest like the ships to wardWestcott off discrimination wants day that it plans to evaluate NADA’s rec- 3,240 defense of dealer reserve to increase production in 2013 of two of its soon.also told that updates are coming to the NADA convention. charges from the| PAGE Consumer 3 | Fi- us the data.” ommended process by “initially rolling it cials, saying that he believed the spots de- “WeDodge believe Challenger this this year, dealers said. most profitable models, the Jeep Grand So it struck me to read that the ■NVOLVO’S PITCH TO DEALERS: out to a selected group of our stores.” meaned the product and dealers. Cherokee and Wrangler, and boosted sales nancial Protection Bureau. The CFPB Chuck Eddy, head of the Chrysler Na- association’s new chief economist, rolls out new facilities program Company approach address- The nation’s largest auto retailer added: Other dealers did not agree, however. Af- hasn’t said whether NADA’s recom- tional Dealer Council, said after the meet- of the Dodge Durango thanks to a model Steven Szakaly, is predicting three more | PAGE 4 | es Fair Credit concerns and at the same “Our intent is to ensure that we continue ter the meeting, Elliott Andrews, vice presi- ■ Amended LIFT FOR actions MAZDA will DEALERS: suffice. ing that Chrysler dealers netted an average refresh and an innovative advertising years of rising U.S. sales — on top of the time it preserves many of the benefits of to offer customers the competitive rates, dent of Dayton Andrews Chrysler-Jeep- new MexicoThe short plant version help sales? of the NADAWill recom- profit of $800,000 per store last year, the campaign tied into four we’ve seen since 2009. the dealer reserve structure,” said Andy convenience, and fullAnchorman array of finance 2 op- Dodge in Clearwater, Fla., said his dealer- mendations: Dealerships should| PAGE 66 adopt | a best dealer profitability in decades. But he median Will Ferrell. with co- Never mind that Mr. Szakaly used to Koblenz, NADA general counsel. tions that they deserve when they arrange ship had seen a direct positive response ceiling on dealer reserve, never exceed it, saidIt isthat the both first timehe and NADA Reid has Bigland, recommend- head Jeep added a hot-selling new model, the work for the Federal Reserve. I had 113 2014financing Jeep Cherokee, with us.” and has a redesigned from Ferrell’s Ron Burgundy commercials. and document a legitimate business rea- ofed U.S. a specific and Canadian course of actionsales tofor its Chrysler, members years of data at my fingertips — literally son every time they offer a discount below ChryslerBut many 200 sedanquestions due remain out in the unanswered. first half “I sold 14 Durangos out of 103 new sales on the issue of dealer reserve — the dealer- in December with the ads running,” An- — when I met with him Friday. I noted the ceiling. The approach is modeled after of theOn year. the dayDealers before will the also NADA begin announce- receiv- ship’s share of the interest rate profit on a drews said. “The year before, I don’t think that he’s talking the longest winning a 2007 settlement in which a couple of ment, Patrice Ficklin, assistant director for 15” 2,700 streak since 1909 to 1917. loan — in response to the CFPB. fair lending for the CFPB, was the main at- I sold 14 Durangos all year.” Junior Page – 4 col. x 10” 11,440 Did Mr. Szakaly Philadelphia-area dealerships settled A CFPB spokeswoman said in a statement c realize that? lending-discrimination charges filed by traction at the American Financial Ser- Friday: “The bureau welcomes proactive vices Association Vehicle Finance Confer- I’ll spare you his the U.S. Department of Justice. proposals that demonstrate a commitment NADA also offered seven suggested rea- ence here. In a question-and-answer ses- explanation of to fair lending. We look forward to review- investment capital sons which, in NADA’s opinion, a dealer- sion, the audience asked Ficklin variations ing the guidance issued today. of the same question: “If we do this or that, and debt recessions. ship can claim as legitimate reasons for “In general, that model was negotiated In a nutshell, he making an exception to the rule — for in- would the CFPB approve?” in settlements involving dealers, whereas Her answers came down to: “Showc us said: Yes. “We have a stance, to meet or beat a competing offer. our focus is on lenders. We remain con- There are also recommendations for set- the data, and we’ll let you know.” lot of positives,” and cerned about indirect lending programs there’s lots of ting up a compliance program at a dealer- built around discretion and financial in- by Dave Versical recovery left. At least ship, appointing who’s responsible for it 14” 2,520 and suggested templates for documents. three more years — if government policymakers don’t muck things up. Junior Spread – 8 col. x 10” 22,880 So, with all that smooth sailing ahead, He said at the event that BMW will offer why have dealers bothered to come to lease deals that are comparable to “a nor- New Orleans? A Pennsylvania sales BMW boss wants more U.S. mallyinventory spec’d 3 series.” Base price for the i3 manager told me he has to master digital Dave Guilford is $42,275, including shipping. advertising. A business development [email protected] He is also seeking a larger crossover for manager from England said she’s udwig Willisch, CEO of BMW of North the United States: “Obviously, there is looking for management tips. And a America, would like to add a big room above the X5. Why shouldn’t we be longtime dealer who sold his last store crossover to his lineup one day, able to cover that room with a BMW?” last year had his eye on the controller’s but his main concern is getting But Willisch added that a big crossover is 10” 1,800 workshop — so he could pass ideas on to L unlikely to arrive in the near future. enough of what BMW already builds. his old controller. Willisch told the J.D. Power Internation- In response to an audience question, None of them said it, but it sure looks al Automotive Roundtable here that one of Willisch said there is a limit to how far au- like some lessons of 2009 have stuck. his biggest challenges is lobbying corpo- tomakers can go to complete car-buying There are things beyond control. And rate headquarters in Munich for more ve- transactions online. Dealers could take or- Half Page – 5 col. x 7” 10,010 there are things that can be controlled. hicles to sell. ders online, he said. But BMW wants its Sharp dealers are doing what they can to “Our plants are at full capacity,” he said. new-style stores, with open showrooms, take charge. “It’s just a question of who gets what.” BMW “genius” product experts and video BMW wants to top its U.S. sales record of screens to configure vehicles, to be ap- Dave Versical is Automotive News’ 376,790 units in 2013 for its BMW, Mini pealing places for young tech-savvy shop- director of editorial operations. and Rolls-Royce brands. That requires pers to browse. “We want to have that emotional en- 1 col. x 1” him to plead for more of BMW’s total pro- 180 duction to wind up in this market, Willisch JOE WILSSENS counter with the brand at the dealership says. or on the test drive, so there’s a limit,” How Willisch said. INSIDE Even the i3 compact electric vehicle Ludwig Willisch: With BMW plants at full ■ WHAT ARE DEALERS THINKING?| PAGE 3 | Still, he says, he knows personally that could be in short supply. Willisch said he capacity, it’s a matter of who gets what. to keep customers coming back. only expects sales of about 2,000 this year, young shoppers are impatient with the Boler-Davis says GM slow-moving, high-pressure traditional ■ NO TIME TO REST: | PAGE 4 | although there have been 100,000 hand- the U.S. The U.S. will be the biggest i mar- raisers for the car, which was developed as sales process: “I have very special research sweats vehicle launch details. ket in the world. in the home because I have a 26-year-old Half Page Spread – 10 col. x 7” 20,020 part of BMW’s Megacity Project to create “Will we get enough cars in the first year? c Sales boss John Mendel: HONDA’S HOT: son.” ■ | PAGE 62 | sustainable vehicles. Probably not. But that’s a good problem to Asked if he was worried about not get- “We have a lot of momentum.” Ford have.” Add $500 (net) for each material change. ting enough i3s, Willisch said, “Yes, in a ■ ONLINE SERVICE SCHEDULING: | PAGE 64 | way I am. I’m trying to get enough cars for rolls out its SMART program. 3 col. x 10” 8,580

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