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220141006-NEWS--0001-NAT-CCI-AN_--0Editorial 10/3/20141 7:21 PM Page 1 5 Calendar autonews.com ® OCTOBER 6, 2014 Entire contents © 2014 Crain Communications Inc. All rights reserved. $159/YEAR; $6/COPY 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 al- so 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 New Corporate Office New Training School New Profits Same Company American Guardian Warranty Services, Inc. 15 Years and Growing 800.579.2233 ext.4196 agwsinc.com NEWSPAPER autonews.com Since 1925, Automotive News has been the primary source for news happening among automotive retailers, suppliers and manufacturers. Distinct from other publications in the field, Automotive News remains a fully subscriber-paid publication, a testament to the value it delivers to the reader. The award-winning weekly print edition is backed by a global team of more than 65 editors and reporters. THE AUTOMOTIVE NEWS AUDIENCE 91% 3.8 of dealers with more than $35 million in annual sales readers per copy among dealers. receive Automotive News. Erdos & Morgan, 2013 ICF Macro pass-along study, 2014 “Automotive News is the go to publication for everything automotive. It is the industry’s must-read and the best source for real time data.” It is the most widely received – Marc Cannon, trade publication SVP, Corporate Communications by more than a 2:1 margin. & Public Policy, AutoNation 78% consider Automotive News to be the most important automotive publication. Erdos & Morgan, 2013 autonews.com 2015.Q1 Editorial Calendar JANUARY 5 Ad close: Dec 22 (early close) Fixed Operations page 12 Ad close: Dec 22 (early close) Special Section: North American F&I page 19 Ad close: Jan 7 International Auto Show Marketing page Production Line page 26 Ad close: Jan 14 *Bonus distribution at NAIAS U.S. Sales Report – 2014 North American International Connected Car page Consumer Electronics Show coverage Auto Show coverage Remarketing page Guide to Industry Executives Automotive News World Congress Legal file 1 Exclusively sponsored supplement coverage NADA Convention Issue AUTOMOTIVE NEWS EVENTS 2 Special Section: NADA Preview Quarterly Shareholder Value Report Jan 13-14 • Detroit • autonews.com/worldcongress 3 Automotive News World Congress Q&A: The Supplier Speaks 4 *Bonus distribution of Jan 12 issue SHOW DAILIES Jan 22 • San Francisco • autonews.com/retailforum Jan 23, 24, 25 Automotive News Retail Forum Ad close: Jan 6 *Bonus distribution of Jan 19 & 26 issues NADA Convention FEBRUARY 2 Ad close: Jan 21 AD Fixed Operations page STUDY 9 Ad close: Jan 28 NADA Review F&I page 16 Ad close: Feb 4 Marketing page Production Line page 23 Ad close: Feb 11 U.S. Sales Report – January Chicago Auto Show coverage Connected Car page Chicago Auto Show preview Remarketing page 1 Legal file 2 Geneva Auto Show preview MARCH 3 4 2 Ad close: Feb 18 Fixed Operations page 9 Ad close: Feb 25 AD U.S. Sales Report – FebruarySTUDY 16 Ad close: Mar 4 Marketing page Production Line page 23 Ad close: Mar 11 Connected Car page 30 Ad close: Mar 18 Geneva Auto Show coverage PACE Award finalists PACE Award finalists Remarketing page Dealer Census Q&A: The Dealer Speaks Legal file Special Section: F&I Guide to Top 150 1 Dealership Groups New York Auto Show 2 Exclusively sponsored supplement preview 3 PACE Award finalists 20141013-NEWS--0049-NAT-CCI-AN_-- 10/10/2014 5:31 PM Page 1 20141020-NEWS--0036-NAT-CCI-AN_-- 10/17/2014 4:26 PM Page 1 OCTOBER 13, 2014 • 49 4 Customer Incentives But there is room for improve- 36 Incentives in this table are a summary of retail programs offered. Programs may vary by region and model. ment. • OCTOBER 20, 2014 20141013-NEWS--0012-NAT-CCI-AN_--ACURA 10/9/2014 4:41 PM Page 1 Cash Finance Cash Finance Cash Finance About half of Acura’s sales this rebate rate rebate rate rebate rate Sales slid 1 percent year were awd vehicles, according BMW GROUP Cruze, Equinox, SLK300, SLK350 1.9-3.0% to Kelley Blue Book, citing data Expires Oct. 31. Express 2500, Sprinter 2500, 3500 1.9-3.7% through September 2015 models Express 3500, Impala, MITSUBISHI from R.L. Polk & Co. That’s ahead of final BMW 228, 320, 328, 328 Gran Turismo, Spark EV, Suburban 1500, Expires Oct. 31. In lieu of rebates, cut-rate financing continued from Page 1 Lexus and Cadillac and in line with 328d, 335, 335 Gran Turismo, 428, Tahoe 2.9-6.9% is available. the global financial crisis hit. Since Infiniti and Mercedes-Benz. 428 Gran Coupe, 435, 435 Gran Coupe, Silverado 1500 3.9-6.9% 2015 models 12 assembly then,• it hasOCTOBER been casting 13, 2014about for a In sales this year, Acura ranks 1 528, 535, 535 Gran Turismo, Camaro, Sonic, SS 3.9-7.9% Lancer, Outlander Sport $1,000 0-6.9% 535d, 550, 550 Gran Turismo, Volt 2.9-7.9% Mirage $750 0.9-9.9% niche to claim as its own. above Infiniti but behind Cadillac GMC Sierra 2500HD, Outlander 0-6.9% Hollywood comes calling for car designers 640, 640 Gran Coupe, 650, “The key is awd,” said Fukuo, who and Audi, putting it in the second 2014 models 650 Gran Coupe, 740, 750, 760, Sierra 3500HD $2,000 2.9-6.9% as senior managing director at Hon- tier of premium brands.