Tag Archive | "dealer network"

Service Payment Plan, Inc. Is Now Integrated with F&I Express eContracting Platform

SOUTHLAKE, Texas – Intersection Technologies Inc. – F&I Express® is pleased to welcome Service Payment Plan, Inc. (SPP) to its ever-expanding, network of aftermarket F&I providers. SPP’s addition to F&I Express will allow dealers on the SPP dealer network, the ability to eRate, eContract and eRegister all of SPP’s payment plan contracts.

Founded in 1983, SPP is the largest service contract payment plan company in the industry, and offers programs to independent service contract providers and manufacturers, throughout the United States and Canada. Customers, whether paying cash, outside financing, or limited financing can benefit from 0% interest payment plans for vehicle service contracts. SPP offers their customers the ability to finance the purchase of their aftermarket products, turning a no into a yes.

“Service Payment Plan, Inc., has been in business for over 30 years, and has been providing consumers a way to buy vehicle service contracts without raising the cost of their car payments. SPP is a fantastic addition to F&I Express,” said Brian Reed, President and CEO F&I Express. “With F&I Express, SPP can now offer consumers an easy, error-free financing process to help speed the vehicle delivery process, thus improving the whole buying experience.”

“The integration of SPP and F&I Express will help insure all contracts are submitted timely to the service contract administrators and SPP as well as improve accuracy in the F&I office. Customers and F&I managers will appreciate how quickly the sale and the paperwork can be completed,” said Bob Hymen, President, Service Payment Plan, Inc.

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Porsche To Grow Global Dealer Network And Sales

SHANGHAI – Porsche AG aims to increase its worldwide dealer network nearly 30 percent.

“Right now we have 700 dealers globally. By 2015, we will probably have 200 more,” sales and marketing boss Bernhard Maier told Automotive News Europe.

The number of people working for the independent Porsche dealers is supposed to grow from 14,000 to about 20,000 employees, Maier added in an interview at the Shanghai auto show. One exemption is the United States, where Porsche expects to reduce the number of dealers slightly from 200 to 190 by 2015.

Globally, the company aims to surpass 100,000 sales this year according to Maier, from 97,000 in 2010. Well-informed Porsche sources told ANE that the global sales should grow by a double-digit percentage figure to at least 107,000 units in 2011.

Sales of the Panamera sedan alone could rise 24 percent to 28,000 units, Porsche sources said. Maier wouldn’t confirm that figure, but said the Panamera “is exceeding all our expectations. Last year we sold 22,600 units. This year we want to increase this figure significantly thanks to new derivatives.”

Maier said China is on track to surpass the United States as Porsche’s biggest market. “In two to three years I expect a shoulder-to-shoulder race with China,” he said. “And this is despite the fact that the U.S. is really developing superbly. Our order intakes in the first quarter are 34 percent above last year’s period.” In 2010, Porsche sold about 25,000 light vehicles in the United States and 15,000 in China.

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VW Will Need More Dealers – In Four Years

Volkswagen of America will need to expand its dealer network after 2014, said Jonathan Browning, Volkswagen Group of America’s CEO.

The extra dealers will be needed to achieve VW’s goal to sell 800,000 units annually in the United States by 2018, Automotive News reported.

VW, which is on track to sell about 250,000 units this year, expects to reach 450,000 to 500,000 in the next five years with the introduction of a new mid-sized sedan and a redesigned Beetle next year. Browning said the current 582 dealers can handle that much extra volume.

But to reach the 800,000 target, he said, “we need to expand the footprint.”

Browning said VW has not set its long-term goal for the number of dealers it needs, but said many of them have “invested and are committed to growing.”

Browning said the new mid-sized sedan, to be built at VW’s new plant in Chattanooga, Tenn., will debut at the Detroit auto show in January and go on sale in the third-quarter of 2011.

Meanwhile, VW sales are being driven by the new-generation Jetta sedan that went on sale in September. VW slashed the entry-price of the Jetta by $1,700 to $15,999, not including shipping.

“We are extending the price band so we can reach out for new customers,” Browning said. “The new price point signals that VW is in reach and, with free maintenance, that ownership is cost-efficient.”

Early data show that 60 percent of Jetta buyers are conquests, on par with VW’s goals, Browning said.

To handle a growing number of trade-ins, VW is expanding its certified used-vehicle program and will tie part of its variable margin to used-car sales effective Jan. 1.

Browning said VW wants to involve more dealers in the program. Currently, about 500 are active.

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GM to End Year with 4,500 U.S. Dealers

General Motors Co. will wind up with about 4,500 dealers in the U.S. later this summer following arbitration hearings mandated by Congress — about 500 fewer than previously disclosed.

Before bankruptcy, GM had 6,150 dealerships. Once the restructuring is completed this summer, the automaker will have about 4,500, GM North American President Mark Reuss said today.

He made the disclosure during a business meeting with bankers and financial analysts at the company’s Warren Technical Center. The group gathered to hear a briefing on the automaker’s financial plans ahead of a public stock offering expected late this year.

“We are strategically aligning these franchise points so we don’t have overlap,” Reuss said.

When GM filed bankruptcy last year, it terminated franchise agreements with about 2,000 dealers, arguing that a smaller network would save money and boost the average number of sales, and profits, at remaining locations.

The move triggered complaints from dealers, many of whom said there was no rationale for the closures.

In December, Congress ordered arbitration hearings for rejected GM or Chrysler Group LLC dealers who wanted to pursue it.

About 1,160 GM dealers challenged the forced closings and the automaker offered to reinstate 666 of them. About 600 dealers accepted GM’s terms and are being reinstated. The remaining dealers are continuing toward arbitration.

Reuss recently told the Associated Press that GM would have about 5,000 dealerships once the arbitration process concludes next month, but the automaker has cautioned the number changes every day as cases are concluded.

The lower 4,500 figure does not necessarily mean GM is winning arbitration cases, spokeswoman Ryndee Carney said today.

In March, GM said the dealership network size would be between 4,100 and 5,300, so the figure mentioned by Reuss today falls within that range, Carney said.

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DealerTrack Connects 800th Financing Source to Network

LAKE SUCCESS, N.Y. – DealerTrack, Inc.’s number of active financing sources connected to the DealerTrack network has reached 800.

“In today’s credit-challenged market, dealers clearly see the benefit of working with a diversified group of lenders, from national and regional banks to finance companies and credit unions,” said Mark O’Neil, chairman and CEO of DealerTrack. “By providing dealers free online access to the large and growing number of lenders on our network, DealerTrack helps dealers expand their financing relationships and close more vehicle sales.”

O’Neil continued: “And in fact, the pace at which we have added the last 50 new lenders to our platform has accelerated significantly versus the time to add the prior 50 new lenders. We believe that this is both an indication that the U.S. automotive market is improving and an ongoing expression of the strength of the DealerTrack network.”

Through DealerTrack, dealers can electronically submit credit applications to the industry’s largest and most diverse network of banks, independent finance companies, captive finance companies, credit unions and regional banks. DealerTrack subscription and other transaction-based products integrate with the credit application process and provide an end-to-end dealership technology solution.

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GM Announces Plan to Address Dealer Concerns

DETROIT – GM is announcing that it is prepared to implement a plan that both resolves concerns raised by dealers regarding GM’s dealer network restructuring activities and allows it to continue to move forward with a critical component of its long-term viability plan.

GM will begin to implement this plan in mid-January provided that legislation related to GM’s dealer restructuring does not move forward. GM says its plan, the result of several months of discussion and constructive engagement among dealer groups and members of Congress, provides complete transparency, face-to-face reviews and binding arbitration, which together, will likely result in some dealers being reinstated.

GM’s plan includes:

  • A commitment to advise all Chevrolet, Buick, GMC and Cadillac dealerships that received a complete wind-down agreement of the criteria used by GM in the selection of that dealership for wind-down. >/li>
  • A face-to-face review process for all complete wind-down dealers who have not already terminated their dealer sales and service agreements with GM.
  • If the complete wind-down dealer is not satisfied with the outcome of the face-to-face review process, he or she may elect to proceed to binding arbitration. The arbitration will expressly be limited to whether GM selected the dealer to receive the wind-down agreement on the basis of its business criteria.
  • Accelerated wind-down payments to dealers consistent with the terms of their wind-down agreements.
  • A process to resolve open issues identified by dealers related to the operation of wind-down dealers.
  • Agreement to support public policy issues of mutual interest identified by dealers.
  • Agreement to work with appropriate policy makers regarding floor-plan and other financing issues that are important to dealers.
  • Additional evaluation in limited circumstances for complete wind-down dealers who purchased stock, land or dealerships from GM in the last four years.
  • Reaffirmation of GM’s long-standing commitment to try to increase the diversity of its dealer body.
  • In the limited circumstances where there are dealer re-establishments, area wind-down dealers will be given the opportunity to submit a proposal.
  • Market reevaluation to ensure GM has sufficient dealer representation across the country.
  • Placement assistance for service technicians and other dealership employees.

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