Tag Archive | "NADA"

Stanton Returns to the NADA as COO

TYSONS, Va. — Michael J. Stanton Jr. has returned to the National Automobile Dealers Association (NADA) as senior vice president and chief operating officer, the trade group announced today.

Stanton will work across the organization on strategic and operational issues and the development of new business opportunities. He will oversee the information technology and economics and data analytics departments, as well as NADA’s affinity programs.

“I am excited to be back at NADA and have the opportunity to enhance existing relationships and develop new ones to support franchised new-car and -truck dealerships and our industry,” Stanton said.

Prior to rejoining the NADA, Stanton served as vice president and general manager of J.D. Power’s Vehicle Valuation Practice. Formerly known as the NADA Used Car Guide, the service was acquired by J.D. Power in 2015.

Before the acquisition, Stanton served as vice president and COO of the NADA Used Car Guide. He also served as the association’s executive director of industry affairs. Before that, he was the national sales manager for the NADA Used Car Guide.

Prior to joining the NADA, Stanton worked for two auto manufacturers, primarily assisting dealers with their sales and service operations. He received a bachelor’s degree in political science from James Madison University and earned a master’s degree in business administration from Virginia Tech. Stanton currently resides in Washington, D.C., with his family.

“Mike is a proven NADA leader who will add bench strength to our team,” said NADA President and CEO Peter Welch. “He has worked many years gaining vast experience and building key relationships and partnerships throughout the automobile industry and beyond.”

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ADESA Auction at NADA Convention Raises $94,423 for Canine Companions

NEW ORLEANS – An ADESA auction at the NADA Convention and Expo today raised $94,423 for the NADA Foundation, which supports Canine Companions for Independence.

Retired Army Sgt. Steve Blackman and his service dog, Gottlieb, attended the auction today to represent Canine Companions.

“My life has completely changed. No longer do I wake every morning wondering what the day is going to bring and if I can make it through it because I have [Gottlieb],” said Blackman, who suffered a traumatic brain injury in service. “I know my family doesn’t have to worry about me anymore. I can go out and do things and leave the house because I have him. Canine Companions has made this possible for veterans and so many other people with disabilities. It gives us our independence back.”

Robert Bassam, founder of Easterns Automotive Group in Sterling, Va., placed the first winning bid of $39,000 for a 2015 Polaris Utility Task Vehicle (UTV). He then donated the UTV back to ADESA to be re-auctioned.

The second winning bid of $26,000 was made by Joe Verde, president of Joe Verde Group in San Juan Capistrano, Calif., and longtime supporter of Canine Companions. He also donated the vehicle back for re-auction.

Bassam’s son, Joel Bassam, director of marketing for Easterns Automotive Group, placed the final winning bid of $28,000.

Attendees gathered at the ADESA booth during the auction made $1,423 in cash donations to bring the final contribution to $94,423.

“We asked dealers and attendees to bid high in honor of the 100th anniversary of NADA. They responded by generously opening their hearts and wallets to help support two amazing organizations,” said Stéphane St-Hilaire, ADESA president and CEO. “The NADA Foundation and Canine Companions work to change the lives of veterans and children with disabilities every day. ADESA is very proud to once again play a leading role in supporting these great causes.”

ADESA auctions over the past six NADA conventions have raised more than $334,400 for the NADA Foundation’s Frank E. McCarthy Memorial Fund, in whose name the Canine Companions donation is made. McCarthy was NADA chief executive from 1968 to 2001.

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NADA Chairman Mark Scarpelli Announces New Initiative, Pledges Total Support of Auto Dealers

NEW ORLEANS – In his first official speech as 2017 chairman of the National Automobile Dealers Association, Mark Scarpelli on Saturday unveiled a new initiative designed to help local dealerships showcase all the benefits they bring to their millions of customers, the 1.1 million dealerships employees in the U.S., and to countless communities across the nation.

The initiative – MyDealership.org – utilizes videos, social media platforms and PSAs to communicate the significant benefits of a strong and vibrant franchised dealership network.

“There are five hallmarks of any local dealership in America today: We are local; We are modern; We are diverse; We save people money; And we create great jobs,” Scarpelli told the audience at the NADA Convention and Expo in New Orleans on Jan. 28, 2017.

“But MyDealership.org doesn’t come from the perspective of dealers,” said Scarpelli, explaining what makes MyDealership.org so unique. “It comes from the perspective of our customers, who benefit through lower prices on sales, financing and service. When local dealerships compete against each other, customers win.”

“It comes from the perspective of dealership staff, who benefit from gainful employment at all levels, with opportunities for advancement. Did you know that local dealerships employ more than 1 million people nationwide?” he asked.

“And it comes from the perspective of local community leaders, who benefit when local businesses like ours plant roots, contribute to the tax base and give back to local community. “

Scarpelli stressed that the bottom line is the auto industry is “a people business, no matter what. Period.”

“It starts with the people we employ,” he said. “The ones who sometimes get in at 6 a.m. and don’t leave until 9 p.m. or even later. It starts with the customers we see, walking through our doors and then coming back when they need help over the life of the car. And it starts with all of us: Dealers who have pledged our lives and our livelihoods to this business – come hell or high water.”

Scarpelli said the new initiative is just the next step for an industry that for more than 100 years has been the conduit to reliable and affordable personal transportation for American consumers from all walks of life.

“Auto dealers carried the privilege and burden of answering one question: How could we sell an automobile to everyone? We knew from the beginning that this engine with four rubber tires wasn’t a luxury or even a fad: It was a necessity, and it was here to stay,” he said, noting the founding of NADA, which is now celebrating its 100th birthday. “So when the government proposed a luxury tax on automobiles in 1917, NADA was born. This was just the first of countless examples where we stood up to protect not only ourselves, but our customers, and to keep cars affordable. Ours was an association at the forefront of helping dealers do the job of selling and servicing cars to the people who wanted them, whether blue or white-collared.”

In closing, Scarpelli made the standing-room-only audience a promise: “I will be your gatekeeper for this great industry. When I sit across the table from a member of Congress, I’ll show them how we save our customers money in the finance process, not cost them. When I’m on the phone with federal regulators, I’ll tell them that our job is to serve American consumers, not ourselves. When I meet with the manufacturers, I will encourage them to enact programs which help you, not strain you. And I will do my best to make sure that I hear from you, and you hear from me. Because the most important part of our relationship over the course of this year is communication.”

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Spireon Unveils Kahu at NADA 2017

IRVINE, Calif. — Spireon Inc., the leader in aftermarket telematics solutions for risk management and business optimization, will introduce its latest connected car solution – Kahu™ – at the National Automobile Dealers Association (NADA) Convention & Expo in New Orleans. Kahu is designed for dealers, providing streamlined lot management while delivering a new finance and insurance (F&I) profit center by offering consumers a modern location tracking and stolen vehicle recovery service. Additionally, Kahu empowers dealers to grow service retention with car buyers by providing accurate vehicle data for proactive maintenance reminders that can improve vehicle health and keep vehicles within warranty.

“New car dealer margins have been flat for several years, driving a need to create new revenue and profit opportunities,” said Kevin Weiss, CEO at Spireon. “Connected cars are changing the industry, but dealers are receiving little value from this shift. Kahu changes that dynamic, giving dealers the tools they need before, during and after the sale to grow profits and benefit from the connected car revolution.”

Kahu includes an aftermarket GPS device and mobile apps for both dealers and their customers. The solution provides these features and benefits to dealers:

· Lot Management — Dealers can easily manage inventory, track specific vehicle location, and see low battery indicators using a mobile phone or tablet, streamlining operations and creating a better buying experience for consumers. Virtual geofences and after-hours alerts allow dealers to identify and recover stolen vehicles within minutes.

· F&I Profit Center — Kahu offers dealers a high value add-on for consumers who seek peace of mind with a next generation vehicle recovery service and an arsenal of easy-to-use mobile features. From 24/7 vehicle location visibility, so consumers can track their vehicle and family at all times, to smart alerts for speeding and low battery, Kahu is an attractive add-on that safeguards consumers while driving dealer profit.
· Customer Loyalty — Kahu uses GPS-based mileage tracking to improve the accuracy of service reminders and increase service retention. Consumers benefit by being able to maximize warranty protection and ensure recommended service intervals are maintained.

“Our partnership with Spireon has paid for itself tenfold,” stated Spireon customer Jon Hansen, General Sales Manager, Burien Nissan. “Being able to offer a product that I find value in to our customers and making it a revenue generator for the dealership is really big for us. I would absolutely recommend Spireon to other dealerships.”

Spireon’s aftermarket GPS devices are installed on more than 3.5 million vehicles and offered by 14,000 dealerships across North America. With Kahu, car dealers and consumers now have access to state-of-the-art mobile location services, which protect their vehicle assets and can lead to reduced insurance premiums.

Kahu is already installed with a select group of early adopter customers, and will be generally available in the second quarter of 2017.

To learn more about Kahu at NADA please visit Spireon’s booth, #4309 in Hall E, or schedule a meeting at http://www.spireon.com/nada2017/.

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NADA: 17.4 Million Units Possible for 2017

LOS ANGELES — Noting that the economic outlook is a little less certain than a week ago, the National Automobile Dealers Association’s Steven Szakaly called for a 17.1 million-unit year in 2017. But the NADA’s chief economist said he’ll have a better read by the end of February, beginning of March.

By that time, Szakaly added, the industry could be on pace to sell more than 17.1 million new vehicles. The key will be whether President-elect Donald Trump sticks to his promises of tax reform, increased infrastructure spending, and reducing the regulatory burden in the banking, automotive, and energy sectors.

“These will all be net benefits. The question, of course, is, will these net benefits be outweighed by possible net negatives, which are, of course, the outlook on immigration and the outlook on free trade,” said Szakaly today at an economic briefing ahead of the Los Angeles Auto Show. “At this point, it’s really difficult to determine which set of factors are going to win out.”

As for 2016, Szakaly said new-vehicle sales are on pace for a 17.4 million-unit year with seven weeks remaining. That would be 200,000 units less than 2015’s all-time sales record of 17.5 million units.

The chief economist described the market as stable but not growing, noting that pent-up demand is “effectively spent.” What’s sustaining auto sales momentum is that the overall economic outlook for 2017 remains strong, with projected gross domestic product growth at 2.6%, employment growth between 150,000 to 180,000 per month, and the price for regular-grade gasoline at less than $2 per gallon.

The easing of fuel economy regulations would benefit the economy even more, he added. Rising wages, which have been stagnant in many sectors, would also help. Szakaly said wages have been rising steadily for college-educated workers.

The chief economist listed rising interest rates as a concern, but said that even a 2% increase would add only $30 dollars to a monthly car payment. Currently, he noted, average interest rates are running at 4.8%, with monthly payments averaging between $485 and $500.

“That’s really not much when we think about what most of these vehicles are running and costing,” he said if rates were to rise by 200 basis points. “I think consumers will be able to pay that as we look at least out into 2017. I think what we’re looking at a 50 basis-point rise by the end of 2017.”

Szakaly also listed ever-increasing loan terms and higher vehicle transaction prices as concerns. As for the latter, Szakaly believes higher transaction prices will likely be offset by manufacturer incentives, which he described as “stable at a very high level.”

Incentives, he noted, have reached $3,900, on average, per unit, representing 10.8% of MSRP. The only time the industry has seen incentives that high was in 2008. The problem is high incentives tend to push down used-vehicle prices, which could push down trade-in equity for car buyers.

Szakaly said he also expects new-vehicle dealership to retail 15.3 million used vehicles in 2017, compared to an expected 15.1 million used sales in 2016. The total used-vehicle market will exceed 40 million retail sales in 2017, he added.

“I tend to favor the idea that we will see some significant reforms on the tax side. We will see some fairly large spending in terms of infrastructure, and I think we will see a reduction in the regulatory burden far sooner than we will see the negative consequences in immigration crackdown … reductions in free trade,” Szakaly said of the new administration. “Overall, I believe the second half of 2017 could very well surprise both for gross domestic product growth and for motor vehicles. If all of these policies come to fruition, we could see a year in the 17.3 or 17.4 million [range].”

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NADA: Supply, Incentives Driving Down Retention Rates

MCLEAN, Va. — Through September, retention rates for most model-year 2013 vehicles are down across the board compared to last year, according to NADA Used Car Guide. Larry Dixon, the firm’s director of market intelligence, said increased supply and incentives are the reasons.

“We estimate that the supply of used vehicles up to five years old will jump by 12% this year. This is the biggest increase in more than a decade,” Dixon said. “As for incentives, with new-vehicle sales growth leveling off, manufacturers are dialing up incentives to preserve market share. Per J.D. Power, incentives were up 9% through August to an average of $3,436 per unit.”

Only mid-size vans, luxury large utility, sports cars and mid-size pickups retained their average value better this year compared to 2015, according to the report. And, out of those four segments, mid-size pickups held their value the most — holding an average of 67.2% of their value after three years.

Segment Retention Rates

  1. Mid-size Pickup: 67.2%
  2. Half-ton Pickup: 56.5%
  3. Mid-Size Utility: 53.7%
  4. Large Utility: 53.1%
  5. Lux Large Utility: 52%
  6. Sports Car: 51.2%
  7. Compact Utility: 50.7%
  8. Mid-Size Vans: 50.4%
  9. Lux. Sports: 50.2%
  10. Lux. Compact Util.: 50.1%
  11. Lux. Mid-Size Util.: 48.2%
  12. Compact Car: 46.5%
  13. Lux. Subcompact: 45.1%
  14. Lux. Compact: 43.7%
  15. Mid-Size Car: 43.6%
  16. Lux. Large Car: 42.4%
  17. Large Car: 42.2%
  18. Lux. Mid-size Car: 41.2%
  19. Subcompact Car: 37.5%

“Their versatility can’t be matched, and the road manners and fuel efficiency of today’s utility and pickup truck are significantly better than in the past. Availability — or the relative lack thereof — is also helping,” Dixon said in a statement issued to F&I and Showroom.

He added that although the supply of large pickups at auction is up about 28% compared to the year prior, it is still well below the pre-recession highs. Additionally, the relatively low price of gas, and the forecast of cheap gas to come is adding to the appeal of pickups.

However, while low gas prices are acting as a boon for pickups and utilities, it’s acting as a bane for subcompacts. The NADA Used Car Guide found that the subcompact segment retained its value the least out of all segments — 37.5% of its value after three years — and also realized the worst retention rate decline out of all segments — vehicles in the category dropping 7.2% in value compared to the year before.

Dixon said that the main reason for the decline in subcompact car retention is similar to the reason the industry as a whole is seeing declines in value retention: increased supply.

“It’s estimated that subcompact volume of vehicles up to five years old will grow by 20% [or more] this year, more than the vast majority of other segments,” Dixon said. “We’ve seen auction volume for the segment grow at a similar rate so far this year, 22%.”

Retention Rate Change From Year to Year

  1. Subcompact Car: -7.2%
  2. Large Car: -4%
  3. Compact Util.: -3.4%
  4. Lux. Subcompact: -3.2%
  5. Compact Car: -2.6%
  6. Lux. Compact: -2.5%
  7. Lux. Mid-size Util.: -2.2%
  8. Lux. Mid-size Car: -1.9%
  9. Lux. Sports: -1.9%
  10. Mid-Size Car: -1.6%
  11. Large Util.: -1.4%
  12. Half-Ton Pickup: -1.2%
  13. Lux. Compact Util.: -0.9%
  14. Lux. Large Car: -0.4%
  15. Mid-Size Util.: -0.3%
  16. Mid-Size Vans: +0.3%
  17. Lux. Large Util.: +1.5%
  18. Sports Car: +1.6%
  19. Mid-Size Pickup: +4.7%

While the average retention rates for the other car segments — compact, mid-size, large, luxury subcompact, luxury compact, luxury mid-size, and luxury large — were all below the larger utilities and pickups, their rates were noticeably better than subcompacts. At the low end were three-year-old luxury mid-size cars with a retention rate of 41.2%. At the high end were compact cars with a retention rate of 46.5% after three years.

Dixon also noted that while the subcompact segment is struggling, the luxury subcompact is holding its value much better than its non-luxury counterpart. In fact, the luxury subcompact segment is holding its value better than every other luxury car segment — the one exception being luxury sports.

The reason being is that luxury subcompacts are a less mature segment with less competition, Dixon noted. The segment, he added, also facilitates entry into the luxury sector because of the segment’s relative affordability vs. larger luxury vehicles.

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