Inside this issue: Dealership Showcase Luther Burnsville Volkswagen Industry Spotlight James Mercer
The Diesel Debacle
Summer 2014 www.mada.org Volume 10 • Issue 4
IN THIS ISSUE
8 33 34 Cover: Dealership Industry The Diesel Showcase: Spotlight: Debacle Luther James Mercer Burnsville Volkswagen
Table of Contents
MADA Minutes AYES Tech Competition...... 4 Kjell Bergh Award...... 4 2014 Executive Committee Board Meeting Recap...... 5 President On the Cover Morrie Wagener, Morries Automotive The Diesel Debacle...... 8 President Elect MADA News Greg House, House Chevrolet Cars Could Help the Poor...... 14 Treasurer Dealers Are Good Neighbors On the Cover: Mike Saxon, Inver Grove Ford Lincoln Good News...... 16 Secretary Unhappy with the status of Diesel Fuel in the Rick Jensen, Jensen Motors, Inc. Minnesota Auto Outlook State of Minnesota, MADA Executive Vice Comprehensive New & Used Vehicle President Scott Lambert lays out the empty Immediate Past President state of affairs in this week’s cover story. Steve Brimhall, Minnesota Motor Company Information on Minnesota’s Automotive Executive Vice President Market...... 19 Scott Lambert Dealership Showcase Luther Burnsville Volkswagen...... 33 EDITORIAL STAFF Data Source Information for Minnesota Scott Lambert, Publisher Industry Spotlight Auto Outlook on pages 19 - 32. James Mercer...... 34 Ginger Lemke, Editor Exclusive source for new vehicle PHOTOGRAPHY registration data presented in Minnesota Jim Mims, Mims Photography Auto Outlook is R. L. Polk and Company, a SUBSCRIPTIONS leader in providing detailed new and used Minnesota Dealer Outlook is an official vehicle sales and registration statistics. Minnesota Auto Dealer Association Data is available on a timely basis on the publication, provided Quarterly to Members internet. of the Minnesota Automobile For more information visit www.polk.com Dealers Association. SUBMIT ADDRESS CHANGES TO: Minnesota Automobile Dealers Association 200 Lothenbach Avenue West St. Paul, MN 55118-3505 Advertising Directory Phone: 651-291-2400 • Fax: 651-291-2894 Toll Free: 1-800-652-9029 Blue Cross Blue Shield MN...... 25 Reliable Plus...... 25 Email: [email protected] CVR...... 7 Schmit Towing...... 25 ADVERTISING SALES: CliftonLarsonAllen...... 18 Super America...... 15 Ginger Lemke MADA Business Cards...... 29 StarTribune...... Back Inside Cover Phone: 651-291-2400 MADA Direct Mail...... 6 Wings Financial...... Inside Front Cover Email: [email protected] MADA Endorsed Services and Vendors...... 6 WIPFLI LLP...... 30 Protective...... Back Cover Visible Customer...... 15
www.mada.org 3 MINUTES
AYES Tech Competitors in New York A St. Cloud team, supported by MADA, advanced to the national competition in New York City April 23.
Apollo High School students Ethan Vanlonden and Theodore Pillsbury, who won the Minnesota AYES high school competition, went on to compete against 29 other U.S. teams at the National Automotive Technology Competition. Instructor Byron From left, Ethan Vanlonden and Theodore Byker led his student team to an 11th place Pillsbury competed in the National finish at the competition. Automotive Technology Competition, supported by MADA. In the weeks prior to the contest, the Minnesota team spent much of their spare time preparing for the contest, which is a test of skill, a Kjell Bergh measure of knowledge, and a race against the clock, all rolled into one. The first day involved problem solving Award at workstations that mimic discrete systems on vehicles. Kjell Bergh of Borton The second day’s competition was to diagnose and Volvo has received repair problems on the 2014 Lexus RX 350. Not only the 2014 International did the students have to repair the car, but they had Citizen award from to document the concern, cause and correction on the Twin Cities Business for repair order, as if the vehicle was a customer’s car at a building bridges between dealership. communities, at home and abroad. Both seniors plan to continue in the automotive field. Pillsbury, a technician at Gilleland Chevrolet’s Quick Bergh is a member of the Lube, plans to continue his automotive education. Consular Corps of Miami Ethan Vanlonden plans to focus his engineering major and the Minnesota Consular Corps. In 1995 he hosted on Vehicle Wind Tunnel testing. the Royal family of Norway on safari in Tanzania, East Africa. He also organized and participated in an official This nationally recognized competition--which was visit by His Majesty King Harald and Her Majesty developed in 1990 by the Greater New York Automobile Queen Sonja to the Tanzanian President, Benjamin Dealers Association to help curb the shortage of Mkapa. In 2000, he was appointed Honorary Consul of qualified automotive technicians and raise the level of the United Republic of Tanzania. vocational/technical education standards in the public school system--is celebrating its 25th year in 2014 as the Bergh is active in civic and charitable organizations in preeminent competition of its kind. each of his “three home countries”—the United States, Norway and Tanzania.
4 www.mada.org Board Meeting Recap
From left, members of the MADA Board met at the St Paul Hotel for the Annual Summer meeting. Front row: Steve Brimhall, immediate past president; Michael Saxon, treasurer; From left, members of the MADA Executive Committee: Front Dave Buerkle, foundation chairman; Cindy Wagener Robin, row: Steve Brimhall, immediate past president; Mike Saxon, AIADA Director. treasurer; Morrie Wagener, president. Row 2: Rick Jensen, Row 2: Mark Juettner; Chad Murphy; Morrie Wagener, MADA secretary; Scott Lambert, executive vice president; and Greg president; Peter Hasselquist; Michael Stanzak. House, president-elect. Row 3: Paul Harpel; Mike Gallagher, GMADA president; Rick Jensen, MADA secretary; Greg House, MADA president-elect; The MADA Board of Directors met June 4, 2014 at the Row 4: Scott Lambert, executive vice president; Steve Whitaker, St Paul Hotel for their annual summer meeting. Among GMADA president-elect; Bob Nuss, chairman MADA Truck the topics discussed by the board were: Division. • an upcoming Vendor Appreciation Event to recognize sponsors of MADA events and programs; CHOOSE YOUR NEWS • setting the Annual Meeting date for Dec. 5, 2014 The MADA email subscription helps to filter just at the DoubleTree by Hilton Bloomington and the updates you can use: NADA Brunch Jan. 25 in San Francisco; • Industry Updates • reviewing the recent membership drive which • Legislative Bulletin achieved 100% of Minnesota dealerships. • Legal Updates President Morrie Wagener thanked Scott Lambert for • Fraud Alerts reports on legislative, legal, and program developments. • People News • Training News • Apparel and Promotional Specials • Direct to inbox Magazine and MADA News Can’t Decide? Sign up for MADA Shorts, the emailed single-page of short summaries with links to more information. Go to www.mada.org/news/sign-up-for-email-updates to subscribe or change your preferences.
www.mada.org 5 MADA Endorsed Services & Vendors
Computerized Vehicle Registration CVR Dealership Marketing Visible Customer F&I Products Protective Group Health Insurance Blue Cross Blue Shield of MN Delta Dental ReliaStar Life Workers Compensation Ensure Agency Midwest Family Mutual Dealer Bond Program Ensure Agency Collections Springer Collections Check Guarantee/Credit Card Processing Certegy / FIS Disability Income Insurance & Section 125 Cafeteria Plans American Fidelity Assurance OSHA, EPA & DOT Compliance/Training Call MADA for all of ComplyNet Corporation your Direct Mail Needs. Fleet Fueling Program SuperAmerica 651-291-2400 • 800-652-9029 Office Supplies S & T Office Products Uniforms and Linen Services AmeriPride Linen and Apparel Services Hole-In-One Insurance Hole-In-One-USA Pre-Paid Legal, Jim Gavin Identity Theft Shield & Pre-Paid Legal Services
6 www.mada.org COMIC CORNER I think I’ll do something nice for my customers... like CVR
Benefits of CVR: • Increase CSI scores • Accurate fees • Flexibility with plate assignments • Increased revenue
Contact MADA today to get in touch with CVR.
www.mada.org 7 The Diesel Debacle
Is it a debacle or a disaster? It depends on what side of the ownership question you are on.
8 www.mada.org Scott Lambert Executive Vice President
Amber Backhaus Director of Government Affairs
• If you own a refining facility, gas station, truck stop, trucking company or dealership, it’s a debacle. Which means it’s a bad mess, not of your own making, but recoverable. • If you own a diesel vehicle, especially an older diesel vehicle, it’s probably closer to a disaster. As values plunge for older diesels that are not rated for this mandated fuel, owners will have to come to grips with the fact that the value lost is unrecoverable. B-10 is not rated for use in any vehicles 2011 or older. For the most part it’s also not rated for diesel sedans from 2012 to present day. But in But in Minnesota, it’s the only diesel fuel sold Minnesota, it’s the only diesel fuel sold six six months of the year. months of the year. If you own one of these vehicles, will it choke and die on the road as you leave the gas station? No. Are you going to suffer long term damage? Probably. Is this long term damage avoidable? Maybe. If you don’t operate it in cold or hot weather, if you don’t let it sit too long, and if you change your oil with the precision of a NASCAR pit team, you have a better chance of avoiding problems. But for those hard-working Minnesotans who leave gassed-up trucks at cabins, fill their tanks in April* and can’t always get their vehicle in for an oil change every 3,000 miles, it’s more of a problem.
*The average statewide low temperature in April 2014 was 32 degrees. www.mada.org 9 The Diesel Debacle
Is your used diesel vehicle worth a lot less? Absolutely. What brought us to this sorry state of affairs? Greed, arrogance and stupidity are all at the forefront. Soybean and agricultural policy makers pushed for increased bio-fuel additives for well over a decade. And, while they were slowed down for a bit, no one really wanted to tell them that it was a bad idea to promote a fuel that vehicles weren’t ready for. This is Minnesota, after all. Farmers and farm communities hold considerable economic and political power. One would have hoped they would have used it wisely. Sadly, they were blinded by the increase in soybean prices that their policy was driving. ...new vehicle models were not ready and that tens of Looming problems were simply thousands of legacy vehicles already on the road would plowed over. likewise have problems. Throughout the debate, motor vehicle manufacturers and dealers were of single voice on the issue: if the fuel works in our vehicles, that’s great. But, if the fuel is not rated for the vehicles--or if it affects a vehicle’s warranty--then it’s a problem. As we approach statutory deadlines for this policy, the factories were adamant that many of their new vehicle models were not ready and that tens of thousands of legacy vehicles already on the road would likewise have problems. What part of “this fuel doesn’t work for these vehicles” policymakers failed to understand is one of the perplexing questions in this unfolding economic tragedy. The state government, whose primary duty in this instance is to ensure a reliable fuel supply, didn’t just turn a deaf ear to consumer concerns; they actively encouraged this destructive policy. Governor Dayton’s Bio-Diesel Task Force, (made up of farm groups, agriculture department personnel, refiners, truckers, and oil jobbers, all housed and staffed by the state Department of Agriculture) which was charged with the implementation of this nationally unique policy, actively ignored pleadings from the new car industry. The economic damage to consumers was not their concern as long as their interests were being well served. On the eve of this new mandate’s effective date, the Bio-Diesel Task Force discovered to their horror that Minnesota law was going to require appropriate
10 www.mada.org signage at gas stations to inform consumers about the content of fuel they are pumping into their car or truck. This unprecedented declaration to consumers could not stand. So, as you would expect, this panel of unelected officials without consumer representation passed a motion asking the Director of Weights and Measures to ignore state law and use FTC-required pump labels (approximately 3 by 3 inches) at Minnesota gas stations until they can legitimize their cover-up with a new law next year. Throughout this debate, appeals by MADA and the manufacturers to the Governor’s ...service managers can expect reactions ranging office as well as the Commissioner of from shock to dismay to anger. Agriculture were dismissed or ignored. Meanwhile, forestry and mining interests took a prudent “don’t put that stuff in our expensive equipment” tack and wisely gained their own exemptions from the mandate. Dealers and manufacturers sponsored legislation to delay the mandate, but DFL House legislative leaders shuttled their bill to the agriculture committee where it stayed in the Chairman’s bottom drawer. The Senate held one hearing in the Commerce Committee but, with the Senate Agriculture Committee ready to also swallow the bill, it was eventually dropped. Ordinary consumers were left unheard, uncared for, ignored and with no seat at the table. When these customers end up in a dealer’s service bay and are delivered the bad news about their precious and expensive vehicles, service managers can expect reactions ranging from shock to dismay to anger. And remember, we’re moving to B-20 in just four short years.
www.mada.org 11 ACTION: Minnesota 1st state in the nation to pass a biodiesel content mandate – at 2% The Diesel Debacle OTHER NOTES: 2002 Trucking fleets primary focus; Permanent exemptions provided for mining, railroads, and nuclear facilities PRODUCTION: 15 million gallons of biodiesel produced nationally ACTION: 9•29•05 2% mandate became effective ACTION: 12•23•05 Governor suspends mandate for 21-days due to fuel quality issues ACTION: Governor Pawlenty and legislature add staggered increases from 5-20%
OTHER NOTES: 2008 Impact on trucking fleets still the main focus; Timber added to exemptions, which became temporary ACTION: PRODUCTION: Manufacturers begin to introduce more diesel passenger 700 million gallons of biodiesel produced nationally 2009 vehicles into the US market in response to new federal CAFÉ standards
ACTION: 5•1•09 MN mandate increases to 5% biodiesel year-round
ACTION: Dayton Administration defers increasing to B10 due to supply issues ACTION: 2012 Alliance of Automotive Manufacturers meets with top Fall OTHER NOTES: Minnesota officials to voice concerns about non-compatible 2012 Exemptions expanded and extended until 2015 vehicles
ACTION: Dayton Administration authorizes increase to B10 2013 PRODUCTION: 1.8 BILLION gallons of biodiesel produced nationally ACTION: Legislature tweaks biodiesel statute OTHER NOTES: 2014 7•1•14 ACTION: Prospect for B20 delayed until 2018; additional exemptions B10 only diesel fuel allowed to be sold at retail in MN granted and all made permanent
12 www.mada.org What to Watch for When Using B10 in Non Approved Vehicles:
Biodiesel can attract water and also deteriorate with age. Small amounts of biodiesel can get into the engine oil, but unlike petroleum diesel, it does not evaporate over time. This can cause the oil level in the engine to rise and can affect the quality of the oil.
With B10, be on the lookout for:
Vehicle stalling and poor Engine damage – or even failure From left to right: new filter; a filter at 10,000 miles using conventional performance which may – which may be caused by biodiesel diesel; a filter at 9,000 miles using greater than 5% biodiesel. be caused by clogging of that has not evaporated after it enters Premature fuel filter clogging and more frequent fuel fuel filter by soaps formed by the engine oil during particulate filter service which may be caused by the switch between using biodiesel components such as trap regeneration. The oil becomes conventional diesel (which will be available from October – March) products of biodiesel aging or diluted, which then forms sludge as and B10, which will be the only fuel available from April-September. production contaminants. the biodiesel degrades in the engine oil and starves the engine bearings of lubrication.
With B10 the mandated fuel on the market, customers B10 Sales Schedule: driving non-rated vehicles should take the following into Diesel cars and light-duty pickups model year 2011 and consideration: earlier are not rated to accept biodiesel blends of more • Routinely check the engine oil to ensure the level is than 5%. Beginning July 1, 2014, 10% biodiesel (B10) will not getting higher. be the only fuel available for sale in Minnesota’s retail • Biodiesel fuel quality can degrade with time. More marketplace during certain months. frequent refueling provides the best opportunity to Under Minnesota’s bio-diesel Mandate: ensure a supply of fresh fuel. • Storage at hot ambient temperatures may B10 is the only diesel fuel you can purchase • July 1 – September 30, 2014 accelerate biodiesel degradation. • April 1 – September 30, through 2017 • At colder temperatures, B10 can gel much faster • April 1 – September 30, 2018 and each year thereafter, B20 than other diesel fuel. will be the new mandated diesel fuel
MINNESOTA AUTOMOBILE DEALERS ASSOCIATION 200 Lothenbach Ave | West St. Paul, MN | 800.652.9029 | 651.291.2400 | www.mada.org Scott Lambert | [email protected] | Amber Backhaus | [email protected] MADA NEWS
Cars Could Help the Poor For many low-income families, automobiles are a key to a better life
Most Americans are driving less. After adjustment for ...members of a subgroup who had access to a car population growth, miles driven per year have dropped were twice as likely to find a job 8.9% since peaking in 2005. Cars are expensive to purchase and to maintain, even more so for families with severely limited resources. A But a new study conducted by the Urban Institute low-income household that is somehow able, inclined, and the Universities of California and Maryland or afforded the opportunity to buy a car might also suggests there is at least one group that should drive do many other things to get ahead. Motivation, more, not less: low-income residents of high-poverty opportunity, or both could be key.” neighborhoods. Cars may not be the emblem of freedom and status The study examined neighborhood quality, that they were 30 years ago. However, even as highly neighborhood satisfaction and employment outcomes educated millennials and baby boomers fantasize about for almost 12,000 families receiving federal housing car-free cities, car access is still indispensable for many vouchers in 10 large U.S. cities. The study concluded families seeking safety and economic security. that voucher recipients with cars tended to live and remain in better neighborhoods—places with less poverty, stronger housing markets and ...car access is still indispensable for many families lower health risks. seeking safety and economic security. Cars also mean better employment outcomes. In one major study, members of a subgroup who had access to a car were twice as likely to find a job and four times as likely to remain employed as those without a car.
Even though many of us believe that driving is inherently superior to public transit, the study concludes that the importance of automobiles arises because public transit systems in most metropolitan areas are slow, inconvenient, and lack sufficient metropolitan- wide coverage to rival the automobile.
According to one of the leaders of the study, Rolf Pendall, “More research is needed to determine if the relationship is casual or associative, that is, whether the car is the catalyst or if there is something deeper at work, of which the car is simply one manifestation.
14 www.mada.org BUY FUEL ? WANT FUEL DISCOUNTS ? NEED CONTROL? SA FLEET smart answer! C SAVE 10 a gall on for the first 90 days M ¢
Y Then continue to save 5¢ a gallon CM with the MADA discount Call Lisa MY 651-403-3267 CY Start SAVING Today
CMY
K
SUPERAMERICA.com safl[email protected]
1) Diagnose 2) Illuminate
Bottom Line Benefits • Attract and retain more customers for less money • Sell more vehicles and increase repeat business • Service more vehicles while increasing 5) Measure 3) Design average spend per RO • Increase market share and customer 4) Orchestrate loyalty • Create a database of customers with the Email Phone Postal highest lifetime value for your dealership
www.mada.org 15 Dealers Are Good Neighbors MADA salutes Minnesota new vehicle dealerships and dealership employees who make their communities a better place to live. Some services include durable medical equipment, communication devices and respite care for full-time family caregivers. Kolar Toyota became title sponsor of the event in 2007. Since their involvement, more than $1,000,000 has been raised for the cause. The dealership is actively involved with the year-round planning of the tournament. Food Drives Brandl Motors in Little Falls hosted a test drive fundraiser for the National FFA Organization in 2014 Kolar Toyota ALS support of local FFA chapter leadership programs. A Walleye Tournament $400 donation was made from the test drives in the RAM Truck brand vehicles. The 19th Annual ALS Walleye Tournament was a huge success with 162 two-person teams fishing for record Luther Automotive’s fourth annual “Drive to weights for a total of six fish. Even though the teams Serve” event partnered with Coon Rapids-based battled rainy Feed My Starving Children. Volunteers packaged breezy conditions, 723,000 meals for children in Haiti. To assist with the a whopping $171,525 was needy in Minnesota, Luther Auto partnered with the raised. Emergency Foodshelf Network, which coordinated food collection efforts at 15 Luther stores and at the All proceeds from food packaging event. the event go to fight Amyotrophic Lateral Sclerosis (ALS), also known as Lou Gehrig’s Disease. The ALS Association, MN/ND/SD Chapter provides services at no charge to individuals with ALS.
16 www.mada.org Scholarships It’s baseball time again Chevy Youth Baseball is a grassroots initiative that establishes a positive relationship between local dealers and the communities they serve. Chevy dealers sponsor their local youth baseball leagues as part of Chevrolet’s nationwide commitment to support youth sports. Lewiston Auto is sponsoring A Perham high school student was awarded a $5,000 the Lewiston scholarship sponsored by the Heartland Chevy Youth Baseball Dealer’s Scholarship Program. The Heartland program; Dan Welle Chevy Dealers Local Marketing Association is comprised of 20 Chevy Dealerships across North Dakota Chevrolet Buick and Minnesota. is partnering with the Sauk Centre Youth Baseball Leagues; Mike Motors is partnering with the Ely Little League in Ely; and Papik Motors is sponsoring Luverne Community Education. Each Send league can be awarded up to a $500 YOUR good news contribution from test drives plus equipment such as bags, batting tees, catcher’s gear, to Sandy at water bottles and t-shirts. [email protected] A.M. Maus sponsored the Dodge Booster Club Fundraiser for the Kimball Area High School students and families. The Dodge brand contributed $20 for each test drive and $4,640 was raised. www.mada.org 17 ©2014 CliftonLarsonAllen LLP ©2014 CliftonLarsonAllen
ENVISION THE FUTURE Plan for a new generation of owners under the guidance of experienced professionals who understand your dealership.
Audit18 Tax Consulting Outsourcing Wealth Advisory www.mada.org612-376-4500 Investment advisory services are offered through CliftonLarsonAllen Wealth Advisors, LLC, an SEC-registered investment advisor. CLAconnect.com/dealerships FORECAST FORECAST New NewVehicle Vehicle Market Market is Up is Slightly Up Slightly in First in First Four Four Months Months of ‘14 of ‘14 Small improvementSmall improvement predicted predicted for entire for entireyear year
Below is a list of 10 key trends and developments in the Minnesota new vehicle market: MINNESOTABelow is a AUTOlist of 10OUTLOOK key trends and developmentsComprehensive in the Minnesota newInformation vehicle market: on the 1. Minnesota1. Minnesota new retail new light retail vehicle light vehicleregistrations registrations were basically were basically flat during flat duringthe first the four first months four months of this of this year versusyear aversus year eaarlier, year ewhilearlier, the while National theMinnesota National market market was up was 5.4 Automotive %.up (Note:5.4%. (Note:April 2014 April Market figures2014 figures were were estimated). FORECAST estimated). 2. Auto2. Outlook’sAuto Outlook’s annual forecastannual forecast for 2014 for new 2014 retai newl light retai vehiclel light vehicle registrations: registrations: 210,500 210,500 units, upunits, 3.4 up% 3.4% Newfrom Vehicle 2013. Market is Up Slightly in First Four Months of ‘14 Small improvementfrom 2013. predicted for entire year 3. Light truck market share increased from 58.6% during the first four months 2013 to 62.4% this year. Below is a3. listLight of 10 truckkey trends market and share developments increased in fromthe Minnesota 58.6% during new vehicle the first market: four months 2013 to 62.4% this year. 4. Registrations for Japanese brands were up 8% so far this year, while the industry was flat. 1. Minnesota4. Registrations new retail for light Japanese vehicle registrationsbrands were were up 8basically% so far flat this duringyear, whilethe first the fourindustry months was of flatthis. year 5. Theversus5. newThe vehiclea year new earlier, vehiclemarket while markethas the come National has a come long market waya long wasfrom way up the 5.4%.from depths the(Note: depths of Aprilthe recession.of 2014 the figuresrecession. Registrations were Registrations estimated). in the in the First QuarterFirst Quarter of this year of this were year 44,475 were 44,475units, up units, more up than more 1 8than,000 1 compared8,000 compared to the Firstto the Quarter First Quarter of of 2. Auto Outlook’s annual forecast for 2014 new retail light vehicle registrations: 210,500 units, up 3.4% from 2009. 2009. 2013. 6. Alternative6. Alternative powertrain powertrain (hybrid (hybridand electric) and electric) market marketshare wasshare 2.4 was% thru 2.4% March thru Marchof this ofyear, this downyear, downfrom from 3.last Light year.last truck year. market share increased from 58.6% during the first four months 2013 to 62.4% this year. 7. 4.Three Registrations7. biggestThree biggestsegments for Japanese segments in brandsthe state in were the are stateup Compact 8% are so Compactfar SUV,this year, Full SUV, while Size Full thePickup, Size industry Pickup, and was Standard and flat. Standard Mid Size Mid Car Size. Car. 8. 5.Brands The8. newBrandswith vehicle the with largest market the largestpercentage has come percentage a increases long way increases fromin registrations the in depths registrations ofduring the recession. duringthe first the fourRegistrations first months four months ofin ththeis ofFirstyear: th is year: Mitsubishi,QuarterMitsubishi, of Jeep, this yearAcura, Jeep, were Subaru,Acura, 44,475 Subaru, units,and Ram up and more. Top Ram than five. Top18,000 in marketfive compared in market share to were sharethe First Ford, were Quarter Chevrolet,Ford, of Chevrolet, 2009. Toyota, Toyota, 6.Honda, Alternative Honda,and Nissan powertrain and .Nissan (hybrid. and electric) market share was 2.4% thru March of this year, down from last 9. Theyear.9. stateThe unemployment state unemployment rate has rate declined has declined from a fromhigh ofa high 9% inof March9% in Marchof 2009 of to 20 4.509% to in4.5 April% in of April this of this 7.year. Three year. biggest segments in the state are Compact SUV, Full Size Pickup, and Standard Mid Size Car. 10. 8.Top Brands10. fiveTop selling with five the carsselling largest in statecars percentage inmarket: state market: increasesFord Fusion, Ford in registrationsFusion, Toyota Toyota Camry, during Camry, Ford the Focus, first Ford four Focus, Subaru months Subaru Outback, of this Outback, year:and and ChevroletMitsubishi,Chevrolet Cruze Jeep,. TopCruze Acura, five. Top Subaru, light five trucks: andlight Ram. trucks:Ford Top F -FordSeries, five Fin-Series, Chevroletmarket Chevroletshare Silverado, were Silverado,Ford, Ram, Chevrolet, FordRam, Escape, Toyota,Ford Escape, Honda,and and Chevrolet Equinox Chevroletand Nissan. Equinox 9. The state unemployment rate has declined from a high of 9% in March of 2009 to 4.5% in April of this year. 10. Top five selling cars in state market: Ford Fusion, Toyota Camry, Ford Focus, Subaru Outback, and Chevrolet Cruze. Top five light trucks: Ford F-Series, Chevrolet Silverado, Ram, Ford Escape, and Chevrolet Equinox
Annual TrendAnnual in TrendState inNew State Vehicle New VehicleMarket Market MarketMarket Review Review Annual Trend in State New Vehicle Market Market Review
250,000 250,000 YTD '13 YTDYTD '13 '14 YTD% '14 Chg. %Mkt. Chg. ShareMkt. Share thru Aprilthruthru April April*thru'13 April* to '14'13 to YTD'14 '14 YTD '14 200,000 200,000 TOTAL TOTAL 64,653 64,65365,141 65,1410.8% 0.8% 210,500203,604 210,500 203,604183,863 150,000 183,863 150,000 170,413 Car 26,749 24,517 -8.3% 37.6% 170,413 Car 26,749 24,517 -8.3% 37.6% 154,312 Light Truck 37,904 40,624 7.2% 62.4% 154,312 133,482 Light Truck 37,904 40,624 7.2% 62.4% 100,000 133,482 100,000 128,088 128,088 Detroit Three 35,001 34,706 -0.8% 53.3% Detroit Three 35,001 34,706 -0.8% 53.3% 50,000 European 4,333 3,909 -9.8% 6.0% 50,000 European 4,333 3,909 -9.8% 6.0% Japanese 20,716 22,371 8.0% 34.3% Japanese 20,716 22,371 8.0% 34.3% 0 Korean 4,603 4,155 -9.7% 6.4%
0 New light vehicle registrations Korean 4,603 4,155 -9.7% 6.4%
New light vehicle registrations 2008 2009 2010 2011 2012 2013 2014 2008 2009 2010 2011 2012 2013 2014 Forecast Forecast Detroit Three Three consists consists of vehicles of vehicles sold by GM,sold Ford, by andGM, Ford, and Detroit Three consists of vehicles sold by GM, Ford, and Chrysler. Chrysler.Source: Polk. Source: Polk. Source: Polk. *Source: Figures for Polk. April 2014 were estimated by Auto Outlook. Source: Polk. Source: Polk. * Figures for April 2014 were estimated by Auto Outlook. www.mada.org * Figures for April 2014 were estimated by Auto Outlook.19 Brand Registrations Report Minnesota New Retail Car and Light Truck Registrations Last Three Months (Feb '14 thru Apr '14) YTD thru April Registrations Market Share (%) Registrations Market Share (%) 2013 2014% change 2013 2014 Change 2013 2014% change 2013 2014 Change TOTAL 52,260 51,243 -1.9 64,653 65,141 0.8 Cars 21,872 19,778 -9.6 41.9 38.6 -3.3 26,749 24,517 -8.3 41.4 37.6 -3.8 Light Trucks 30,388 31,465 3.5 58.1 61.4 3.3 37,904 40,624 7.2 58.6 62.4 3.8 Domestic Brands 28,057 26,912 -4.1 53.7 52.5 -1.2 35,001 34,706 -0.8 54.1 53.3 -0.8 European Brands 3,513 3,190 -9.2 6.7 6.2 -0.5 4,333 3,909 -9.8 6.7 6.0 -0.7 Japanese Brands 16,950 17,830 5.2 32.4 34.8 2.4 20,716 22,371 8.0 32.0 34.3 2.3 Korean Brands 3,740 3,311 -11.5 7.2 6.5 -0.7 4,603 4,155 -9.7 7.1 6.4 -0.7 Acura 374 439 17.4 0.7 0.9 0.2 442 550 24.4 0.7 0.8 0.1 Audi 344 410 19.2 0.7 0.8 0.1 443 512 15.6 0.7 0.8 0.1 BMW 737 662 -10.2 1.4 1.3 -0.1 914 794 -13.1 1.4 1.2 -0.2 Buick 1,081 1,004 -7.1 2.1 2.0 -0.1 1,356 1,234 -9.0 2.1 1.9 -0.2 Cadillac 356 323 -9.3 0.7 0.6 -0.1 469 426 -9.2 0.7 0.7 0.0 Chevrolet 8,459 7,777 -8.1 16.2 15.2 -1.0 10,617 10,065 -5.2 16.4 15.5 -0.9 Chrysler 1,074 803 -25.2 2.1 1.6 -0.5 1,325 992 -25.1 2.0 1.5 -0.5 Dodge 1,865 1,857 -0.4 3.6 3.6 0.0 2,323 2,250 -3.1 3.6 3.5 -0.1 FIAT 81 57 -29.6 0.2 0.1 -0.1 99 69 -30.3 0.2 0.1 -0.1 Ford 10,145 9,165 -9.7 19.4 17.9 -1.5 12,505 11,878 -5.0 19.3 18.2 -1.1 GMC 1,898 1,915 0.9 3.6 3.7 0.1 2,446 2,486 1.6 3.8 3.8 0.0 Honda 4,318 4,203 -2.7 8.3 8.2 -0.1 5,131 5,253 2.4 7.9 8.1 0.2 Hyundai 1,825 1,491 -18.3 3.5 2.9 -0.6 2,195 1,923 -12.4 3.4 3.0 -0.4 Infiniti 252 258 2.4 0.5 0.5 0.0 300 331 10.3 0.5 0.5 0.0 Jaguar 16 11 -31.3 0.0 0.0 0.0 18 13 -27.8 0.0 0.0 0.0 Jeep 1,342 2,088 55.6 2.6 4.1 1.5 1,670 2,731 63.5 2.6 4.2 1.6 Kia 1,915 1,820 -5.0 3.7 3.6 -0.1 2,408 2,232 -7.3 3.7 3.4 -0.3 Land Rover 111 103 -7.2 0.2 0.2 0.0 137 141 2.9 0.2 0.2 0.0 Lexus 547 585 6.9 1.0 1.1 0.1 650 712 9.5 1.0 1.1 0.1 Lincoln 285 251 -11.9 0.5 0.5 0.0 352 357 1.4 0.5 0.5 0.0 Mazda 1,112 1,156 4.0 2.1 2.3 0.2 1,339 1,390 3.8 2.1 2.1 0.0 Mercedes 457 486 6.3 0.9 0.9 0.0 564 609 8.0 0.9 0.9 0.0 MINI 236 159 -32.6 0.5 0.3 -0.2 280 196 -30.0 0.4 0.3 -0.1 Mitsubishi 228 495 117.1 0.4 1.0 0.6 280 608 117.1 0.4 0.9 0.5 Nissan 2,414 2,669 10.6 4.6 5.2 0.6 2,913 3,372 15.8 4.5 5.2 0.7 Other 120 108 -10.0 0.2 0.2 0.0 140 136 -2.9 0.2 0.2 0.0 Porsche 55 69 25.5 0.1 0.1 0.0 72 74 2.8 0.1 0.1 0.0 Ram 1,496 1,682 12.4 2.9 3.3 0.4 1,866 2,222 19.1 2.9 3.4 0.5 Subaru 1,919 2,276 18.6 3.7 4.4 0.7 2,434 2,899 19.1 3.8 4.5 0.7 Tesla 23 19 0.0 0.0 0.0 31 22 0.0 0.0 0.0 Toyota 5,714 5,710 -0.1 10.9 11.1 0.2 7,146 7,214 1.0 11.1 11.1 0.0 Volkswagen 1,274 1,049 -17.7 2.4 2.0 -0.4 1,548 1,262 -18.5 2.4 1.9 -0.5 Volvo 187 143 -23.5 0.4 0.3 -0.1 240 188 -21.7 0.4 0.3 -0.1 Top ten brands are shaded yellow. Source: Polk
Top ten ranked brands in each category are shaded yellow.
20 www.mada.org MARKETMARKET TRACKER: TRACKER: BRAND BRAND MARKET MARKET SHARE SHARE JapaneseJapanese Brands Brands Increase Increase Share Share in Early in Early 2014 2014 MARKET TRACKER: BRAND MARKET SHARE
JapaneseChange BrandsChange in State in MarketState Increase Market Share: Share: YTD Share 2014 YTD thru 2014 April*in thru Early vs.April* Same vs. 2014 PeriodSame Period Year Earlier Year Earlier
MARKET TRACKER: BRAND MARKET SHARE Change in State Market Share: YTD 2014 thru April* vs. Same Period Year Earlier Japanese BrandsJapanese Increase Share in Early 2014 2.3 Japanese 2.3 Change in State Market Share: YTD 2014 thru April* vs. Same Period Year Earlier
Korean -0.7 Korean -0.7 Japanese 2.3 Japanese brand share increased by European -0.7 Japanese 2.3brand share share points increased during bythe first four European -0.7 2.3 share points during the first four months of 2014. Korean -0.7 months of 2014.
Detroit Three -0.8 Detroit Three -0.8 Japanese brand share increased by European -0.7 2.3 share points during the first four -2.0 -1.5 -1.0 -0.5 0.0 0.5months of 1.02014. 1.5 2.0 2.5 3.0 -2.0 -1.5 -1.0 -0.5 0.0 0.5 1.0 1.5 2.0 2.5 3.0 Change in market share Detroit Three -0.8 Change in market share
*Figures for April 2014 were estimated by Auto Outlook. Source: Polk. *Figures for April 2014 were-2.0 estimated-1.5 by-1.0 Auto Outlo-0.5 ok.0.0 Source: 0.5 Polk.1.0 1.5 2.0 2.5 3.0 Change in market share *Figures for April 2014 were estimated by Auto Outlook. Source: Polk. MARKETMARKET TRACKER: TRACKER: HYBRID HYBRID AND ELECTRIC AND ELECTRIC VEHICLES VEHICLES *Figures for April 2014 were estimated by Auto Outlook. Source: Polk. HybridHybrid & Electric & Electric Vehicle Vehicle Market Market Share Share Heads Heads Lower Lower MARKET TRACKER: HYBRID AND ELECTRIC VEHICLES MARKET TRACKER: HYBRID AND ELECTRIC VEHICLES HybridHybrid & Electric& Electric Vehicle Vehicle Market Share Market Heads Share Lower Heads Lower QuarterlyQuarterly Alternative Alternative Powertrain Powertrain Market Market Share Share (includes (includes hybrid hybridand electric and electric vehicles) vehicles) Quarterly Alternative Powertrain Market Share (includes hybrid and electric vehicles) State Hybrid and Electric Vehicle 4.0% Quarterly Alternative Powertrain Market Share State Hybrid and Electric Vehicle 4.0% Trendline New Retail Registrations 3.5% (includesTrendline hybrid and electric vehicles) New Retail Registrations 3.5% 2009 thru 2013, and YTD '14 thru March 2009 thru 2013, and YTD '14 thru March 3.0% Year Hybrids Electrics Total 3.0% Year Hybrids Electrics Total 2.5% 2009 4005 8 4013 2.5% 4.0% 2009 State Hybrid4005 and Electric8 Vehicle4013 2.0% Trendline 2010 3267 7 3274 2.0% 2010 New3267 Retail Registrations7 3274 3.5% Alternative powertrain market share has 1.5% Alternative powertrain market share has 20112009 thru 2013, and3258 YTD '14 thru14 March3272 1.5% trended higher during the past three years, 2011 3258 14 3272 3.0% trended higher during the past three years, 2012 5100 121 5221 1.0% but declined again in the First Quarter of '14. 2012 Year 5100Hybrids 121Electrics5221 Total 1.0% but declined again in the First Quarter of '14. 2013 6359 278 6637 2.5% 2013 2009 6359 4005278 66378 4013 0.5% YTD '14 1051 28 1079 0.5% 2.0% YTD '142010 1051 3267 28 10797 3274 0.0% 0.0% Alternative powertrain market share has 2011 3258 14 3272 1.5% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q1 Q2 Q3 Q4 Q1 Q2 trendedQ3 Q4 higher Q1 during Q2 the pastQ3 threeQ4 years, Q1 New registrations2012 of hybrid5100 and electric121 5221 1.0% '11 '11 '11 '11 '12but declined'12 '12 again '12 in the'13 First '13Quarter '13 of '14.'13 '14 vehicles were 1,079 units in the First '11 '11 '11 '11 '12 '12 '12 '12 '13 '13 '13 '13 '14 2013 6359 278 6637 Quarter ofNew this year.registrations of hybrid 0.5% NewYTD '14registrations1051 of hybrid28 1079 Source: Polk. and electric vehicles were 0.0% and electric vehicles were Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 1,079 1,079units inunits the inFirst the Quarter First Quarter '11 '11 '11 '11 '12 '12 '12 '12 '13 '13 '13 '13 '14 of thisof year. this year. New registrations of hybrid and electric vehicles were Source: Polk. Source: Polk. 1,079 units in the First Quarter of this year. www.mada.org 21
Source: Polk. MARKET TRACKER: SEGMENTS Compact SUV Market Share Exceeds 20%
MARKET TRACKER: SEGMENTS Compact SUV Market Share Exceeds 20%
Minnesota Segment Market Share Review
Market Share Market Share Change in share Best selling model Segment YTD '13 thru March YTD '14 thru March YTD '13 to YTD '14 in segment Compact SUV 16.0 20.3 4.3 Ford Escape Full Size Pickup 18.5 18.3 -0.2 Ford F Series Standard Mid Size Car 15.9 14.8 -1.1 Ford Fusion Sub Compact Car 14.7 12.6 -2.1 Ford Focus Mid Size SUV 3 Rows 9.0 9.0 0.0 Toyota Highlander Mid Size SUV 2 Rows 4.8 5.3 0.5 Ford Edge Mini Van 4.1 3.5 -0.6 Dodge Caravan Large Mid Size Car 2.7 2.5 -0.2 Chevrolet Impala Entry Car 3.1 2.4 -0.7 Kia Soul Mid Size Luxury SUV 2.2 2.4 0.2 Lexus RX Near Luxury Car 1.8 1.7 -0.1 BMW 3-Series Compact Luxury SUV 1.3 1.6 0.3 Buick Encore Full Size SUV 1.6 1.6 0.0 Chevrolet Tahoe Luxury and Sports Cars 1.4 1.3 -0.1 BMW 5-Series Full Size Van 0.9 1.0 0.1 Chevrolet Express Compact Pickup 0.7 0.6 -0.1 Toyota Tacoma Sport Compact Car 0.8 0.5 -0.3 Chevrolet Camaro Entry Luxury Car 0.2 0.3 0.1 Mercedes CLA-Class Full Size Luxury SUV 0.3 0.3 0.0 Cadillac Escalade
The table above shows Minnesota market share for 19 vehicle segments during the first three months of 2013 and 2014, and the change in market share over the period. The best selling model in each segment is also shown. Segments are ranked from top to The table abovebottom basedshows on 2014Minnesota share. Most market popular segmentshare infor the 19 state vehicle is Compact segments SUV, which during also had the the firstlargest three gain. Datamonths Source: of 2013 Polk. and 2014, and the change in market share over the period. The best selling model in each segment is also shown. Segments are ranked from top to bottom based on 2014 share. Most popular segment in the state is Compact SUV, which also had the largest gain. Data Source: Polk.
visit us online at www.mada.org
22 www.mada.org MODEL SCOREBOARD MODEL SCOREBOARD Altima and Civic Post Big Market Share Gains Altima and Civic Post Big Market Share Gains Top three selling light trucks are Full Size Pickups Top three selling light trucks are Full Size Pickups MARKET TRACKER: SEGMENTS The two graphs below show market shares in the state car and light truck markets during the first three months TheCompact two graphs SUV below Market show Share market Exceeds shares in 20%the state car and light truck markets during the first three months of 2013Top three and selling 2014. lightIncludes trucks the are top Full tenSize selling Pickups car and light truck models. of 2013 and 2014. Includes the top ten selling car and light truck models. The two graphs below show market shares in the state car and light truck markets during the first three months of 2013 and 2014. Includes the top ten selling car and light truck models. Change in Market Share for Top 10 Selling Cars - YTD 2014 thru March vs. YTD 2013 Change inChange Market in Market Share Share for for Top Top 10 10 Selling Cars Cars - YTD - 2014YTD thru2014 March thru vs. March YTD 2013 vs. YTD 2013 7.0% Outback, Altima, and Civic market shares were up sharply. 7.0% Outback, Altima, and Civic market shares were up sharply. 2013 YTD 6.0% 2013 YTD 6.0% 2014 YTD 2014 YTD 5.0% 5.0%
4.0% 4.0%
Market Share 3.0%
Market Share 3.0%
2.0% 2.0%
1.0% 1.0%
0.0% 0.0% Ford Fusion Toyota Camry Ford Focus Subaru Chevrolet Honda Civic Nissan Altima Honda Accord Toyota Corolla Chevrolet Ford Fusion Toyota Camry Ford Focus OutbackSubaru ChevroletCruze Honda Civic Nissan Altima Honda Accord Toyota Corolla ChevroletMalibu Outback Cruze Malibu Change in Market Share for Top 10 Selling Light Trucks - YTD 2014 thru March vs. YTD 2013 Change in Market Share for Top 10 Selling Light Trucks - YTD 2014 thru March vs. YTD 2013 Change in Market Share for Top 10 Selling Light Trucks - YTD 2014 thru March vs. YTD 2013
12.0% Market shares for CR-V and Ram 12.0% Marketimproved. shares for CR-V and Ram improved. 2013 YTD 10.0% 2013 YTD 2014 YTD 10.0% 2014 YTD
8.0% 8.0%
6.0% 6.0% Market Share Market Share 4.0% 4.0%
2.0% 2.0%
0.0% 0.0% Ford F Series Chevrolet Ram Ford Escape Chevrolet Honda CR-V Toyota RAV4 GMC Sierra Toyota Ford Edge Ford F Series ChevroletSilverado Ram Ford Escape ChevroletEquinox Honda CR-V Toyota RAV4 GMC Sierra HighlanderToyota Ford Edge Source: Polk. Silverado Equinox Highlander
www.mada.org 23 Source: Polk. Source: Polk. BRAND SCOREBOARD-PART ONE Mitsubishi and Jeep Post Large Percentage Gains Acura, Subaru, and Ram are also up sharply
TheBRAND graphs SCOREBOARD-PART below provide ONE a comparative evaluation of brand sales performance in the state market. They show the year-to-date percent change in registrations for each brand, organized by category (i.e., Detroit Three,Mitsubishi European, and Japanese, Jeep Post and Large Korean). Percentage Gains Acura, Subaru, and Ram are also up sharply The graphs below provide a comparative evaluation of brand sales performance in the state market. They show the year-to-date percent change in registrationsPercent for each Change brand, organized in State Newby category Retail (i.e.,Light Detroit Vehicle Three, Registrations European, Japanese, and Korean). Percent ChangeYTD in 2014 State Newthru Retail April Light* vs. Vehicle YTD 2013 Registrations YTD 2014 thru April* vs. YTD 2013 Jeep 63.5%
Ram 19.1%
GMC 1.6% Detroit Three Lincoln 1.4% Brands Dodge -3.1%
Ford -5.0%
Chevrolet -5.2%
Buick -9.0%
Cadillac -9.2%
Chrysler -25.1%
Audi 15.6%
Mercedes 8.0%
Land Rover 2.9% European Porsche 2.8% Brands
BMW -13.1%
Volkswagen -18.5%
Volvo -21.7%
Jaguar -27.8%
MINI -30.0%
FIAT -30.3%
Mitsubishi 117.1%
Acura 24.4%
Subaru 19.1%
Nissan 15.8% Japanese Brands Infiniti 10.3%
Lexus 9.5%
Mazda 3.8%
Honda 2.4%
Toyota 1.0%
Kia -7.3% Korean Brands Hyundai -12.4%
-50.0% -30.0% -10.0% 10.0% 30.0% 50.0% 70.0% 90.0% 110.0% 130.0% 150.0%
*Figures for April 2014 were estimated by Auto Outlook. Source: Polk. *Figures for April 2014 were estimated by Auto Outlook. Source: Polk. 24 www.mada.org better together
Welcome to Blue Cross and Blue Shield of Minnesota. Together, the Minnesota Automobile Dealers Association and Blue Cross are offering you and your employees: Find out how to accelerate your ➜➜ More choice – The largest network of providers in the state delivers health care savings. value and preserves provider choice Contact your Blue Cross ➜➜ Better value – More benefit plan options make it easy to choose a plan sales representative or that fits your health care needs and your budget call MADA Insurance at ➜➜ Bigger savings – Working with providers, Blue Cross rewards quality (651) 291-2400 or of care to deliver you bigger savings 1-800-652-9029. ➜➜ Added convenience – From retail clinics to online care options, we make it convenient for your employees to get the care they need
Blue Cross® and Blue Shield® of Minnesota and Blue Plus® are nonprofit independent licensees of the Blue Cross and Blue Shield Association.
The Best of Both Worlds: Soft-touch & Touch-free now on one machine.
Introducing the Mark VII Choicewash XT®. Decades of proven Aquajet® Touch-free technology and the unsurpassed efficiency and effectiveness of a Softwash XT® Soft-touch automatic—truly two machines in one! Choicewash XT® is an industry first . . . One machine that can deliver a top quality wash in either mode and it’s your customer’s choice!
For more information on upgrading your car wash— Call Reliable Plus today 800.782.8793 reliableplus.com
Minnesota • Wisconsin North Dakota • South Dakota
www.mada.org 25 BRAND BRANDSCOREBOARD SCOREBOARD-PART TWO-PART TWO
BRANDToyota BRANDToyotaSCOREBOARD is SCOREBOARD Non is-PART -NonLuxury TWO-PART- Luxury TWO Car CarBrand Brand Leader; Leader; Ford Ford #1 for #1 Trucksfor Trucks ToyotaBMW ToyotaBMWis best is is selling Nonbest is selling-Non luxuryLuxury- luxuryLuxury car brand;Car car brand;CarBrand Acu raBrand Acu leads Leader;ra leadsfor Leader; luxury for Ford luxury trucks Ford #1 trucks for #1 Trucksfor Trucks
BMWThe four BMWTheis graphsbest four is selling graphsbest below selling luxurybelowshow marketluxuryshow car brand;market sharecar brand; leadersAcusharera leadersAcu leadsin Minnesotara leadsforin Minnesota luxury forduring luxury trucks duringthe pasttrucks the six past months six months for four for primary four primary segments.segments. (Note: (Note:figures figures for April for, 2014April ,were 2014 estimated.) were estimated.) Toyota Toyota was the was best the-selling best- sellingNon Luxury Non Luxury Car brand, Car brand, with a withvery aslim very lead slim over lead second over second place Fordplace. FordFord .was Ford the was top the ranked top ranked Non Luxury Non Luxury Light Truck Light brand,Truck brand,ahead ahead Theof Chevrolet fourTheof Chevroletgraphs four and graphs Toyotabelow and Toyotabelowshow. BMW marketshow. wasBMW themarket sharewas best the -leadersshareselling best -leaders selling Luxuryin Minnesota LuxuryCarin Minnesota brand, Carduring brand,while duringthe Acura whilepast the sixwasAcura past months highest sixwas months highestfor for fourtrucks. for forprimary four trucks. primary segments.segments. (Note: (Note:figures figures for April for, 2014April ,were 2014 estimated.) were estimated.) Toyota Toyota was the was best the-selling best- sellingNon Luxury Non Luxury Car brand, Car brand, withData BRAND aSource: Datawithvery SCOREBOARD-PART aslimSource: veryPolk. lead slim Polk. over lead TWO second over second place Fordplace. FordFord .was Ford the was top the ranked top ranked Non Luxury Non Luxury Light Truck Light brand,Truck brand,ahead ahead of ChevroletToyotaof Chevrolet isand Non-Luxury Toyota and Toyota. BMW Car. wasBMW Brand the was best Leader; the-selling best Ford- sellingLuxury #1 LuxuryforCar Trucks brand, Car brand,while Acura while wasAcura highest was highest for trucks. for trucks. BMW is best selling luxury car brand; Acura leads for luxury trucks Data Source:Data Source: Polk. Polk. The four graphs below show market share leaders in Minnesota during the past six months for four primary segments. (Note: figures Topfor 10April, TopNon 2014 10Luxury Nonwere LuxuryCarestimated.) Brands Car Toyota Brands was the best-selling Non LuxuryTop 10Car TopNon brand, 10Luxury Nonwith LuxuryaLight very Truckslim Light lead Brands Truck over Brandssecond place Ford.November FordNovember was 2013 the top thru 2013 ranked April thru Non 2014 April Luxury 2014 Light Truck brand, ahead of ChevroletNovember andNovember Toyota. 2013 thru BMW 2013 April was thru 2014the April best-selling 2014 Luxury Car brand, while Acura was highest for trucks. Source: Polk Toyota 15.7 Ford 23.7 TopToyotaBrand 10 Market TopNon 10 LuxuryShare Non - Vehicle LuxuryCar Brands 2 yearsCar Brands old or newer 15.7 BrandTopFord Market 10 TopNon Share 10Luxury - 3Non and Luxury4Light Year OldTruck Light Vehicles Brands Truck Brands 23.7 Ford NovemberFord November 2013 thru 20132013 April thru 2014 April 15.6 2014 15.6 Chevrolet ChevroletNovember November 20132013 thru 2013 April thru 2014 April19.7 201419.7
ChevroletToyota ChevroletToyota 13.6 15.713.6 15.7 ToyotaFord ToyotaFord 9.7 9.7 23.7 23.7
HondaFord HondaFord 11.3 11.315.6 15.6 ChevroletHonda ChevroletHonda 7.3 7.3 19.7 19.7
ChevroletSubaru ChevroletSubaru 8.1 8.1 13.6 13.6 ToyotaGMC ToyotaGMC 6.8 9.7 6.8 9.7
HyundaiHonda HyundaiHonda 7.4 7.411.3 11.3 HondaJeep HondaJeep 6.47.3 6.47.3
SubaruNissan SubaruNissan 6.4 8.1 6.4 8.1 GMCRam GMCRam 5.76.8 5.76.8
HyundaiKia HyundaiKia 5.7 7.4 5.7 7.4 NissanJeep NissanJeep 4.6 6.4 4.6 6.4
VolkswagenNissanVolkswagen Nissan 5.2 6.4 5.2 6.4 SubaruRam SubaruRam 3.0 5.7 3.0 5.7
DodgeKia DodgeKia 2.9 5.72.9 5.7 NissanDodge NissanDodge 2.9 4.6 2.9 4.6
VolkswagenVolkswagen 0.0 0.0 5.0 5.2 5.0 10.05.2 10.015.0 15.020.0 20.0 Subaru 0.0Subaru 0.03.05.0 3.05.010.0 10.015.0 15.020.0 20.025.0 25.0 Share of nonShare luxury of noncar marketluxury car (%) market (%) Share of nonShare luxury of nontruck luxury market truck (%) market (%) Dodge Dodge 2.9 2.9 Dodge Dodge 2.9 2.9
0.0 0.0 5.0 5.0 10.0 10.015.0 15.020.0 20.0 0.0 0.05.0 5.010.0 10.015.0 15.020.0 20.025.0 25.0 Share of nonShare luxury of noncar marketluxury car (%) market (%) Share of nonShare luxury of nontruck luxury market truck (%) market (%) Top 10 TopLuxury 10 LuxuryCar Brands Car Brands Top 10 TopLuxury 10 LuxuryLight Truck Light Brands Truck Brands NovemberNovember 2013Top 10 thru Luxury 2013 April Car thru Brands2014 April 2014 TopNovember 10 LuxuryNovember Light2013 Truck thru 2013 Brands April thru 2014 April 2014 November 2013 thru April 2014 November 2013 thru April 2014 Top 10 TopLuxury 10 LuxuryCar Brands Car Brands Top 10 TopLuxury 10 LuxuryLight Truck Light Brands Truck Brands BMW BMW 20.5 20.5 Acura Acura 16.0 16.0 NovemberNovember 2013 thru 2013 April thru 2014 April 2014 NovemberNovember 2013 thru 2013 April thru 2014 April 2014 Mercedes Mercedes 16.2 16.2 Lexus Lexus 14.8 14.8
LexusBMW LexusBMW 12.5 12.5 20.5 20.5 AcuraBMW AcuraBMW 12.6 16.012.6 16.0
MercedesAudi MercedesAudi 11.7 11.716.2 16.2 CadillacLexus CadillacLexus 11.4 14.811.4 14.8
CadillacLexus CadillacLexus 10.3 12.5 10.3 12.5 MercedesBMW MercedesBMW 11.212.6 11.212.6
InAudifiniti InAudifiniti 7.5 11.77.5 11.7 CadillacAudi CadillacAudi 9.1 11.49.1 11.4
CadillacLincoln CadillacLincoln 7.1 10.37.1 10.3 MercedesLincoln MercedesLincoln 8.3 11.28.3 11.2
InVolvofiniti InVolvofiniti 5.5 7.5 5.5 7.5 InAudifiniti InAudifiniti 6.3 9.16.3 9.1
LincolnAcura LincolnAcura 4.5 7.1 4.5 7.1 LandLincoln Rover Land Lincoln Rover 5.3 8.35.3 8.3
VolvoTesla VolvoTesla1.5 5.51.5 5.5 InVolvofiniti InVolvofiniti 3.3 6.33.3 6.3
Acura 0.0 Acura 0.05.0 4.5 5.010.04.5 10.015.0 15.020.0 20.025.0 25.0 Land RoverLand 0.0 Rover 0.0 5.0 5.3 5.0 10.05.3 10.015.0 15.020.0 20.0 Share of luxuryShare car of marketluxury car (%) market (%) Share of luxuryShare truck of luxury market truck (%) market (%) Tesla Tesla1.5 1.5 Volvo Volvo 3.3 3.3
0.0 0.05.0 5.010.0 10.015.0 15.020.0 20.025.0 25.0 0.0 0.0 5.0 5.0 10.0 10.015.0 15.020.0 20.0 Share of luxuryShare car of marketluxury car (%) market (%) Share of luxuryShare truck of luxury market truck (%) market (%) 26 www.mada.org MINNESOTA MARKET VERSUS U.S. Gain in State New Vehicle Market Trails Nation in 2014 Car market share in state fell to 37.6%
The accompanying table provides a comparison of results in both the Minnesota and U.S. markets. New vehicle registrations in the state improved a slim 0.8% during the first four months of 2014, while the U.S. marketMINNESOTA increased MARKET 5.4%. VERSUS CarU.S. market share in Minnesota was 11.4 share points lower than in the Nation. Detroit ThreeGain market in State share New in Minnesota Vehicle Marketwas 53.3%, Trails well Nation above the in 201441.4% share in the Nation. Note: Figures for April 2014Car were market estimated share in bystate Auto fell Outlook. to 37.6% Source:The accompanying Polk. table provides a comparison of results in both the Minnesota and U.S. markets. New vehicle registrations in the state improved a slim 0.8% during the first four months of 2014, while the U.S. market increased 5.4%. Car market share in Minnesota was 11.4 share points lower than in the Nation. Detroit Three market share in Minnesota was 53.3%, well above the 41.4% share in the Nation. Note: Figures for April 2014 were estimated by Auto Outlook. Source: Polk Minnesota Market U.S. Market Change in registrations % change in registrations 0.8% 5.4% YTD 2014 thru April vs. YTD 2013 Car Market Share Car share of industry retail light vehicle 37.6% 48.0% registrations - YTD 2014 thru April Detroit Three Brand Market Share Domestic brand share of industry retail light 53.3% 41.4% vehicle registrations - YTD 2014 thru April Top selling light vehicle brands and market share - YTD 2014 thru April First Ford 18.2% Toyota 13.2% Second Chevrolet 15.5% Ford 12.7% Third Toyota 11.1% Chevrolet 10.5% Fourth Honda 8.1% Honda 9.5% Fifth Nissan 5.2% Nissan 7.9% Sixth Subaru 4.5% Jeep 4.5% Seventh Jeep 4.2% Hyundai 4.4% Eighth GMC 3.8% Kia 3.7% Ninth Dodge 3.5% Subaru 3.5% Tenth Kia 3.4% Dodge 3.4% Data Source: Polk
www.mada.org 27 RECENT RESULTS IN MINNESOTA USED VEHICLE MARKET Minnesota Used Vehicle Market Heads Lower in Early 2014 RECENT RESULTS IN MINNESOTA USED VEHICLE MARKET Used vehicle registrations declined 10.9% thru April
MinnesotaRECENT RESULTS INUsed MINNESOTA Vehicle USED VEHICLE Market MARKET Heads Lower Minnesota in Retail Early Used Light 2014 Vehicle Registrations Below is a list of key trends in the Minnesota retail YTD 2014 thru April* Usedused vehicle market: registratio ns declined 10.9% thru April Registrations % Change Market Share RECENT RESULTS IN MINNESOTA USED VEHICLE MARKET 2013 2014 '13 TO '14 2013 2014 Minnesota Used Vehicle Market HeadsTOTAL Lower297,726 in Early265,334 2014-10.9% • RetailMinnesota used registrations Used Vehicle in the state Market declined Heads Lower Minnesota in Early Retail 2014 Used Light Vehicle Registrations Cars 150,898 131,338 -13.0% 50.7% 49.5% BelowUsed is 10.9% vehiclea Usedlist of duringvehicle registratiokey trends theregistrations first inns thefour declined Minnesotadeclined months 10.9% 10.9% ofretail 2014 thru thru April April YTD 2014 thru April* used vehicleversus market: a year earlier. (Note: figures for April of Light Trucks Registrations146,828 133,996% Change -8.7%Market49.3% Share 50.5% thisBelow year iswere a list estimated of key trends by inAuto the Outlook.)Minnesota retail 2013 2014 '13 TO '14 2013 2014 TOTALDetroit Minnesota Three297,726 Retail213,084 265,334Used185,318 Light Vehicle-10.9%-13.0% Registrations71.6% 69.8% Below• Retail is useda usedlist vehicle of registrations key market: trends in thethe Minnesotastate declined retail European 16,833YTD 201415,984 thru April* -5.0% 5.7% 6.0% used10.9% •vehicleAs shown •duringmarket: Retail on the theused firstgraph registrations four below, months thein newofthe 2014 statevehicle CarsJapanese 150,898Registrations60,357131,33856,466%-13.0% Change-6.4%50.7%Market20.3% Share49.5% 21.3% Light Trucks 146,828 133,996 -8.7% 49.3% 50.5% versusmarket a declinedyeargrew earlier. at 10.9% a slightly(Note: during figures fasterthe first pacefor four April thanmonths of the Korean 20137,452 20147,566'13 TO '141.5% 20132.5% 20142.9% TOTAL 297,726 265,334 -10.9% •thisRetailused year marketused wereof 2014 registrationsestimated in versus 2013, a yearbyand Autoin earlier. thethe Outlook.) newstate (Note: vehicle declined figures was Detroit* Figures Three for213,084 April 2014185,318 were estimated-13.0% by Auto 71.6%Outlook. 69.8% 10.9%up slightly duringfor earlyApril the thisof firstthis year, yearfour as werewell.months estimated of 2014 by EuropeanCarsSource: Polk.16,833150,898 15,984131,338 -5.0%-13.0% 5.7%50.7% 6.0%49.5% • Asversus shown aAuto onyear theOutlook.) earlier. graph (Note:below, figures the new for vehicle April of JapaneseLight Trucks 60,357146,828 56,466133,996 -6.4%-8.7% 20.3%49.3% 21.3%50.5% market grew at a slightly faster pace than the Korean 7,452 7,566 1.5% 2.5% 2.9% •thisThe year sharp• As were showndecline estimated on in thenew by graph vehicleAuto below,Outlook.) sales the for new 2009 Detroit Three 213,084 185,318 -13.0% 71.6% 69.8% used market in 2013, and the new vehicle was * Figures for April 2014 were estimated by Auto Outlook. has ledvehicle to shortmarket suppliesgrew at a slightlyof five faster year pace old European% Change 16,833in Retail 15,984New and Used-5.0% Vehicle5.7% Markets6.0% •upAsvehicles, sl ightlyshownthan early resultingon the thethis used graphyear, in market the asbelow, 4.5 well. in point2013, the dropandnew the invehicle marketnew Source:Japanese Polk. 60,357 56,466 -6.4% 20.3% 21.3% marketshare. grewvehicle at was a slightlyup slightly faster early pace this thanyear, theas Korean2009 thru 2013,7,452 and 7,566YTD ’14 thru1.5% April*2.5% vs. YTD 2.9%‘13 • Theused sharp marketwell. decline in 2013, in new and vehicle the new sales vehicle for 2009 was * Figures for April 2014 were estimated by Auto Outlook. has led to short supplies of five year old Source: Polk. •upUsed slightly • lightThe early sharptruck this declineregistrations year, inas new well. vehicle fell 8.7 sales%, forwhile %Source: Change Polk. in Retail New and Used Vehicle Markets vehicles, resulting in the 4.5 point drop in market 30.0% cars declined2009 has 13 led%. to short supplies of five year share. 200925.0% thru 2013, and YTD ’14 thru April* vs. YTD ‘13 • The sharpold declinevehicles, in resulting new vehicle in the sales4.5 point for drop2009 20.0% % Change in Retail New and Used Vehicle Markets •hasChevro ledinlet tomarket Impala short share. wassupplies the best of -sellingfive year model old in 15.0% 2009 thru 2013, and YTD ’14 thru April* vs. YTD ‘13 10.0%% Change in Retail New and Used Vehicle Markets • Usedvehicles, light resultingtruck registrations in the 4.5 point fell drop8.7%, in marketwhile 30.0% the state• Used for lightvehicles truck tworegistrations years old fell or 8.7%, newer. 5.0% carsshare. declined 13%. 25.0% 2009 thru 2013, and YTD ’14 thru April* vs. YTD ‘13 Ford Fwhile-Series cars led declined for three13%. to five year old 20.0% 0.0% vehicles. 15.0%-5.0% • Chevrolet• Chevrolet Impala was Impala the bestwas- sellingthe best-selling model in -10.0% • Used light truck registrations fell 8.7%, while 10.0%30.0% the state modelfor vehicles in the state two for years vehicles old two or yearsnewer. old -15.0% cars declined 13%. 5.0%25.0% YTD '13 to • Used registrations for Audi, Kia, Subaru, Infiniti, '09 to '10 '10 to '11 '11 to '12 '12 to '13 Ford F-Seriesor newer. led Ford for F-Seriesthree toled fivefor three year to oldfive 0.0%20.0% YTD '14* and Acurayear increased old vehicles. during the first four months -5.0%15.0% •vehicles.Chevro let Impala was the best-selling model in New 4.2% 27.7% 7.9% 10.7% 0.8% of this year. -10.0%10.0% the state• Used for registrationsvehicles two for years Audi, old Kia, or Subaru, newer. -15.0% Used 5.0% 4.3% 0.0% 9.3% -10.9% 5.0% YTD '13 to • Used registrations for Audi, Kia, Subaru, Infiniti, '09 to '10 '10 to '11 '11 to '12 '12 to '13 Ford F-Infiniti,Series led and for Acura three increased to five duringyear theold 0.0% YTD '14* and Acurafirst increased four months during of thethis firstyear. four months -5.0% vehicles. New Source:4.2% Polk. 27.7% 7.9% 10.7% 0.8% of this year. -10.0% -15.0%Used 5.0% 4.3% 0.0% 9.3% -10.9% YTD '13 to • Used registrations for Audi, Kia, Subaru, Infiniti, '09 to '10 '10 to '11 '11 to '12 '12 to '13 YTD '14* and Acura increased during the first four months Source: Polk. Source:New Polk.4.2% 27.7% 7.9% 10.7% 0.8% of this year. Minnesota Retail Used Vehicle Registrations - Percent ChangeUsed in Three5.0% Month Moving4.3% Average0.0% (May ‘129.3% thru April-10.9% ‘14*)
Minnesota Retail Used Vehicle Registrations - PercentSource: Change in Polk. Three Month Moving Average (May ‘12 thru April ‘14*) Minnesota Retail Used Vehicle Registrations - Percent Change in Three Month Moving Average (May ‘12 thru April ‘14*) 60.0% 50.0% 40.0% Minnesota Retail60.0%30.0% Used Vehicle Registrations - Percent Change in Three Month Moving Average (May ‘12 thru April ‘14*) 50.0%20.0% 40.0%10.0% 30.0%0.0% 20.0%60.0%-10.0% 10.0%50.0%-20.0% 0.0%40.0%-30.0% -10.0%30.0% 20.0% Jul-12 -20.0% Jul-13 Oct-12 Oct-13 Apr-13 Apr-14 Jun-12 Jan-13 Jun-13 Jan-14 Mar-13 Mar-14 Feb-13 Feb-14 Nov-12 Dec-12 Nov-13 Dec-13 Aug-12 Sep-12 Aug-13 Sep-13 May-12 -30.0%10.0% May-13 0.0% -10.0% Jul-13 Jul-12 Oct-13 Oct-12 Apr-14 Apr-13 Jan-14 Jan-13 Jun-13 Jun-12 Mar-14 Mar-13 Feb-14 Feb-13 Nov-13 Dec-13 Nov-12 Dec-12 Aug-13 Sep-13 *Figures for April 2014Aug-12 wereSep-12 estimated by Auto Outlook. Source: Polk. May-13 -20.0%*Figures May-12 for April 2014 were estimated by Auto Outlook. Source: Polk. -30.0% *Figures for April 2014 were estimated by Auto Outlook. Source: Polk. Jul-12 Jul-13 Oct-12 Oct-13 Apr-13 Apr-14 Jun-12 Jan-13 Jun-13 Jan-14 Mar-13 Mar-14 Feb-13 Feb-14 Nov-12 Dec-12 Nov-13 Dec-13 Aug-12 Sep-12 Aug-13 Sep-13 May-12 May-13 28 www.mada.org *Figures for April 2014 were estimated by Auto Outlook. Source: Polk. USED VEHICLE SALES BY AGE Three and Four Year Old Vehicles Gain Market Share Five year old used vehicle market tumbles
Tight supplies of 2009 model year vehicles led to the 4.5 market share point decline for five year old cars and trucks during the first four months of this year (see graph below). Three year old market share was up 3.2 share points.
Source: Polk.
USED VEHICLE SALES BY AGE Three and Four Year Old Vehicles Gain Market Share Five year old used vehicle market tumbles Tight supplies of 2009 modelMarket year Share vehicles by led Vehicle to the 4.5Age market (vehicles share six point years decline old for or five newer) year old cars and trucks during the first four months of this year (see graph YTDbelow). 2014 Three thru year March old marketvs. YTD share 2013 was up 3.2 share points.Source: Polk Market Share by Vehicle Age (vehicles six years old or newer) YTD 2014 thru March vs. YTD 2013 6.0
4.0 3.2 2.1 2.0
0.0 -0.1 -0.3 -2.0 Change in market share -4.0
-4.5 -6.0 6 years old 5 years old 4 years old 3 years old 2 yrs old or newer
MADA BC Ad 1-3h 5_11.pdf 1 5/27/11 11:04 AM CUSTOM PROFESSIONAL
C
M We can Y BUSINESS CARDS turn your CM business card • Hundreds of options • Great customer service with into magnets MY • Competive pricing an on-staff graphic designer too! CY • Fast turnaround • Quantity options available
CMY
K To place your order, please contact Reggie Klein Phone: 651-789-2933 or 800-652-9029 Email: [email protected]
www.mada.org 29 30 www.mada.org TOP SELLING MODELS TOP SELLING MODELS Ford F-SeriesFord Fis-Series Best Seller is Best for Seller Three for to ThreeFive Year to Five Old Year Vehicles Old Vehicles Impala was the two year old or newer leader Impala was the two year old or newer leader
The graphsTOP below SELLING MODELSshow top selling models in two age categories: vehicles two years old or newer, and those three to five yearsThe old.graphs Source: below Polk. show top selling models in two age categories: vehicles two years old or newer, and those Fordthree F-Series to five is years Best old. Seller Source: for Three Polk. to Five Year Old Vehicles Impala was the two year old or newer leader The graphs below show top selling models in two age categories: vehicles two years old or newer, and those three to five years Top 25 Sellingold. Source: Models Polk. (Two years old or newer) Top 25 Selling Models (3 to 5 year old vehicles) Used retail registrations,Top 25 Selling YTD Models2014 thru (Two March years old or newer) Used retail registrations,Top 25 Selling YTD Models2014 thru (3 toMarch 5 year old vehicles) UsedTop 25 retail Selling registrations, Models (Two years YTD old 2014 or newer) thru March Top 25 SellingUsed Models retail (3 to 5 registrations, year old vehicles) YTD 2014 thru March Used retail registrations, YTD 2014 thru March Used retail registrations, YTD 2014 thru March Chevrolet Impala 825 Chevrolet Impala 825 Ford F Series 1026 Chevrolet Silverado 604 Ford F Series 1026 Chevrolet Silverado 604 Chevrolet Silverado 1015 Ford Escape 584 Chevrolet Silverado 1015 Ford Escape 584 Toyota Camry 702 Chevrolet Malibu 543 Toyota Camry 702 Chevrolet Malibu 543 Chevrolet Malibu 554 Ford Fusion 524 Chevrolet Malibu 554 Ford Fusion 524 Chevrolet Impala 506 Chevrolet Equinox 496 Chevrolet Impala 506 Chevrolet Equinox 496 Ford Fusion 503 Ford F Series 472 Ford Fusion 503 Ford F Series 472 Toyota RAV4 451 Dodge Caravan 457 Toyota RAV4 451 Dodge Caravan 457 Chevrolet Equinox 412 Ford Edge 453 Chevrolet Equinox 412 Ford Edge 453 Ford Escape 394 Chrysler Town & Country 425 Ford Escape 394 Chrysler Town & Country 425 Dodge Ram 380 Chevrolet Cruze 415 Dodge Ram 380 Chevrolet Cruze 415 Ford Edge 380 Ford Focus 406 Ford Edge 380 Ford Focus 406 Toyota Corolla 371 Chevrolet Traverse 357 Toyota Corolla 371 Chevrolet Traverse 357 Honda Accord 367 Chevrolet Captiva 304 Honda Accord 367 Chevrolet Captiva 304 Chrysler Town & Country 345 Ford Explorer 224 Chrysler Town & Country 345 Ford Explorer 224 Chevrolet Traverse 345 Nissan Altima 219 Chevrolet Traverse 345 Nissan Altima 219 Honda CR-V 329 Ford Taurus 213 Honda CR-V 329 Ford Taurus 213 GMC Sierra 315 Dodge Avenger 210 GMC Sierra 315 Dodge Avenger 210 Honda Civic 285 GMC Terrain 209 Honda Civic 285 GMC Terrain 209 Ford Focus 278 Dodge Ram 207 Ford Focus 278 Dodge Ram 207 Hyundai Sonata 274 Toyota Camry 192 Hyundai Sonata 274 Toyota Camry 192 Dodge Caravan 264 Honda Civic 185 Dodge Caravan 264 Honda Civic 185 Volkswagen Jetta 250 Chrysler 200 181 Volkswagen Jetta 250 Chrysler 200 181 GMC Acadia 237 GMC Sierra 180 GMC Acadia 237 GMC Sierra 180 Toyota Prius 236 Jeep Grand Cherokee 178 Toyota Prius 236 Jeep Grand Cherokee 178 Nissan Altima 234 0 250 500 750 1000 Nissan Altima 234 0 250 500 750 1000 0 500 1000 1500 0 500 1000 1500
www.mada.org 31 BRAND SCOREBOARD Audi, Kia, Subaru, Infiniti, and Acura Used Registrations Increase Audi posts an 8.3% increase
BRAND SCOREBOARD TheAudi, graph Kia, below Subaru, shows Infiniti, the percent and changeAcura inUsed retail Registrationsused light vehicle Increase registrations during the first four months ofAudi 201 posts4 versus an 8.3% the increase same period a year earlier for the top 30 selling brands in the state. Audi had the largest increase, up 8.3%. Source: Polk. *Figures for April 2014 were estimated by Auto Outlook. The graph below shows the percent change in retail used light vehicle registrations during the first four months of 2014 versus the same period a year earlier for the top 30 selling brands in the state. Audi had the largest increase, up 8.3%. Source: Polk. *Figures for April 2014 were estimated by Auto Outlook. Percent Change in Minnesota Retail Used Light Vehicle Registrations Percent ChangeYTD in 2014Minnesota thru Retail April* Used vs. Light Year Vehicle Earlier Registrations YTD 2014 thru April* vs. Year Earlier
Audi 8.3%
Kia 6.8% Subaru 4.9% Infiniti 4.8%
Acura 3.4%
Mercedes -0.2%
MINI -2.9%
Hyundai -3.6%
Honda -3.7%
BMW -3.7%
Jeep -4.5%
Lexus -4.6%
Porsche -5.8%
Nissan -7.1%
Volkswagen -7.1%
Toyota -7.2%
GMC -7.4%
Mitsubishi -8.6%
Chrysler -9.2%
Volvo -9.9%
Ford -10.6%
Dodge -12.1%
Chevrolet -14.8%
Mazda -15.3%
Suzuki -15.4%
Cadillac -15.5%
Lincoln -15.6%
Buick -15.6%
Land Rover -21.2%
Jaguar -22.4%
-40.0% -30.0% -20.0% -10.0% 0.0% 10.0% 20.0%
32 www.mada.org DEALERSHIP SHOWCASE
LUTHER BURNSVILLE VOLKSWAGEN
A wise man once said, “It doesn’t matter where you are, it’s said Radue. “We like to say what direction you’re headed.” we set the standard for exceptional Volkswagen service.” If that’s the case, Luther Burnsville Volkswagen is properly Though Radue has 30 years experience selling VWs, he pointed toward the future, both in terms of bricks and works with his staff to keep an eye firmly fixed on the mortar and in their understanding of the importance of new present, and on the future. They understand how critical technologies. social media has become to a dealership’s success. The dealership, a Luther store since 1982, was on Cliff Road He added, “We say ‘Make the Experience Count.’” That near the river until three years ago. That all changed when means always trying to go above and beyond...and we are they moved into the new, bright white, 50,000 square foot aware of how significantly online reviews at DealerRater, facility on Buck Hill Road, just south of Burnsville Center Cars.com, Google and the others can impact customer and overlooking both 35E and 35W. decisions. We now have more than 1,300 reviews. One General Manager Jay Radue describes the new dealership gentleman came from Wisconsin because of our reviews, as “the new Volkswagen ‘white frame’ design. We have two and he specifically asked to work with a particular person customer lounge areas with Wi-Fi, beverages and snacks. because of the great things people were saying about her. We have a huge training area to meet with all employees “We focus on taking care of people,” Radue said. “Good ...something the other location lacked. We now have an reviews are driving traffic to the store, and so are referrals. automatic car wash, too. We used to joke about the old days Many of our new customers come in based on reviews.” when we had one stall to hand wash cars, and washed the Those reviews HAVE been good. Burnsville Volkswagen is others outside.” a 2014 DealerRater.com Dealer of the Year. They also are the The service area only Volkswagen dealer in Minnesota to have been inducted features 20 service into the prestigious “Wolfsburg Crest Club” for 2013; an bays and includes award earned only by the top 50 VW dealers in the nation. It technicians and means Burnsville Volkswagen has met the highest standards advisors who for sales and service, and customer satisfaction. As a result, have worked with the dealership was top 10 in sales volume last year for Volkswagen for more Certified Pre-Owned Volkswagens sold in the country. than 25 years. “We Clearly, they are headed the right direction. have great people,”
www.mada.org 33 Industry Spotlight James Mercer Protective James Mercer is a funny guy in a very unfunny business. The normally Regional Manager stuffy and serious world of finance and insurance is broken up by the arrival of the young man from Woodbury. James is a journeyman car guy but when you meet him, you immediately gather a mischievous side. Despite what he may say or convey, the serious side is driving him all the time. In eight short years, the dad of three from Burnsville went from Account Exec to Regional Manager in charge of MN, SD, ND, Colorado, Montana, Wyoming and Utah, and top trainer for one of the industry’s top Finance and Insurance companies. He sat down recently with MADA Executive Vice President Scott Lambert to discuss where he is so far in his young life.
Are you from Minnesota? Did you stay in Hudson for long? Yes. My Dad worked for 3M, so we started in I was actually at six stores in six years. Hutchinson, then moved to Naperville, Illinois All Hecker stores? until I was in 7th grade. Then we came back No, after Hudson I went to Denny’s Monticello and settled in Woodbury. Dodge and his Inver Grove Heights Hyundai, Your Dad ended up at 3M world then Kline Volvo, Walser Dodge and my last headquarters in Maplewood? store was Freeway Ford. Exactly. Why all the moves? An only child? The turnover at Denny’s stores was out of Oh no. I have 3 brothers. We fought hard as control. Everyone was interviewing all the If money didn’t matter and you could kids but now we’re the best of friends. time. I followed my bosses to other stores. reinvent yourself as anything, what would you do? How’d you end up in the car business? Do you still keep in touch with Denny? I’d write comedy screenplays. I went to Mankato State and majored in (laughs) economics. But that doesn’t get you a job. I That’s an interesting answer. How’d you end up at Protective? graduated from college on Friday and walked I go to movies with my brothers and we I answered an ad in the Pioneer Press. All into a dealership on Monday. always come out saying. ‘That was funny, but it said was Finance Mgr, 5 yrs exp, college we could write something funnier.’ But why a dealership? degree, willing to travel. I was driving up Hwy 169 and heard one Besides running eight states, is there When was that? of Denny Hecker’s ads on the radio. I had anything else you do with Protective? 2006. I was hired by Wendell Anderson. interviewed at some banks but I wanted to do I am the lead Finance trainer for Protective. I sales. What’s the first job you ever had? train F&I personnel in Chicago. I was a cashier at Target in Woodbury. So you just walked in and asked for work? Do you like that? Yep, showed up at Denny Heckers Hudson What was that like? I’ve done it now for five years and I really get Pontiac as green as a blade of grass. I knew It was relentless. The people just keep coming. a lot of satisfaction out of it. It’s cool when you nothing about the car business. It was like the conveyor belt scene in “I Love get a green person and bump into them later in Lucy.” You just couldn’t push against the tide. the business and see how they’ve blossomed. What struck you most about the car business at first? So, you’ve been with Protective for eight And your dream of Hollywood success? The money. I made twice as much selling cars years now. What’s your takeaway so far? But, it’s just that: a dream. I’m a lifer with as I ever would have working at a bank. It’s opened my eyes to what the dealer does Protective. I enjoy this job too much. each day. He could spend 100% of his time on So how long were you in sales? a huge variety of things that have nothing to Only for a year, then I moved into finance. do with selling cars.
34 www.mada.org Customers come standard.
In Minnesota, Star Tribune rules the road. • Mobile & apps Millions of Minnesotans visit us online every month. We have the only • Geo-targeting top 25 newspaper in the country that’s growing in circulation. And we • Behavioral targeting offer an ever-expanding lineup of mobile solutions. Massive reach. • Search marketing Pinpoint targeting. That’s how you drive your message home. • E-mail marketing
Supercharge your advertising. Call Steve Engelhart at 612-673-4950 or Tim Haley at 612-673-7026.
3254047/1/14 With Protective Asset Protection, you protect your best asset – your reputation.
In today’s transparent world, consumers are only a few clicks away from uncovering the good, the bad and the ugly about any company.
With Protective Asset Protection, you and your customers can rest assured that the products we offer are administered and backed by us, which means reliable service that protects your reputation.
What’s more, our company believes in doing the right thing by you and by your customers. We are in business to serve people, build trust, and simplify everything. So when your customers choose our products, they are protecting their own assets – as well as yours. Learn more at protectiveassetprotection.com
Protect Tomorrow. Embrace Today.™
Vehicle Protection Plans I GAP Coverage I Credit Insurance I Limited Warranty Products Dealer Participation Programs I F&I Training I Advanced F&I Technology Contact Protective’s Minnesota representative, James Mercer at 866 927 2908
Limited Warranty Products, Vehicle Protection Plans (VPPs) and GAP are backed by Lyndon Property Insurance Company in all states except NY. In NY, VPPs are backed by Old Republic Insurance Company, Limited Warranty Products are backed by Western General Insurance Company and GAP is not available. Credit Insurance is backed by Protective Life Insurance Company in all states except NY, where it is backed by Protective Life and Annuity Insurance Company.