Tag Archive | "profits"

DeLong Named VP of Covideo

NORCROSS, Ga. — April 6, 2017 — Covideo (a division of EasyCare) has appointed Mike DeLong to the position of Vice President, heading the company’s Dealer Services division. DeLong is a 30-year industry veteran who has been with Covideo since 2007.

“Mike has been critical to our success and growth over the last ten years,” said Jason Price, president of Covideo. “His experience in the automotive industry made him the best person to build the foundation for our automotive business development process. Mike’s new role will allow him to focus on corporate initiatives that will drive strong solutions for our dealers and long-term growth for our company.”

DeLong joined the company upon the sale of Nissan of Hickory (N.C.), where he served as operating partner. It was there that DeLong was first introduced to the Covideo platform, which is designed to help dealers easily create and distribute personalized videos for sales prospects. Prior to buying into Nissan of Hickory, DeLong spent 15 years as general manager of Brighton (Mich.) Ford.

“Covideo is the only form of video e mail that allows all areas of the dealership to engage with their customers on an extremely personal level. This is more important in today’s environment than ever before,” DeLong said. “My new role as vice president will enable me to focus on identifying additional dealership groups and other companies engaged in the automotive business who realize the power of personal video and who want to realize the same success our current customers have had in driving profits thru video engagement.”

For more information about the company, visit Covideo.com/Automotive.

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GM’s Profits Rise to $945 Million in Q1

DETROIT – General Motors on Thursday reported net income of $945 million for the first quarter of 2015. That compares to net income of $108 million for the Detroit automaker in the comparable period one year ago, reported MLive.

GM’s earnings before interest and taxes increased to $2.1 billion, compared with an EBIT of $500 million in the first quarter of 2014.

The company had $1.3 billion in recall-related pre-tax costs and $0.3 billion in restructuring costs in the year-ago period, compared with just $0.1 billion in restructuring costs in first quarter of this year.

Revenues dipped to $35.7 billion in the first quarter of this year from $37.4 billion in the year-ago quarter.

“Our results in the first quarter provide a solid foundation to achieve our financial commitments for the year,” GM CEO Mary Barra said in a release. “Continued execution of our plan, including our capital allocation framework, will drive profitable growth, return on invested capital and shareholder value.”

By region, the company handily improved its EBIT in North America to $2.2 billion in the first quarter, after incurring that $1.3 billion costs there in the year-ago quarter. GM narrowed its EBIT loss in Europe to $200 million, compared with $300 million in the comparable period. Its EBIT in South America was flat at about a $200 million loss.

“Key vehicles like our recently launched full and mid-size trucks, and our cost discipline helped us deliver a solid quarter,” Chuck Stevens, GM executive vice president and chief financial officer, said in a release. “We continue to take decisive actions to address issues head-on and to drive the company to generate strong results.”

Last month, GM announced a $5 billion stock buy-back program. The automaker said Thursday it had since repurchased 19.4 million shares.

Separately, on Tuesday GM announced a 2 percent rise in vehicle sales to 2.4 million units sold globally in the first quarter. Sales in North America were up 6 percent, in China they rose 9 percent and Opel/Vauxhall’s sales grew 3 percent in Europe.

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Putting F&I Online Increases Profits, MakeMyDeal Finds

ATLANTA — A new study from Cox Automotive company MakeMyDeal found that shifting F&I product information online could be the key to higher sales and profitability.

According to the MakeMyDeal 2015 Finance & Insurance Study, 61% of the 500 consumers surveyed believe that F&I products are just ways for the dealer to make more money. Additionally, 48% said that they would never buy anything other than the car from a dealership.

However, further results from the study indicate that the resistance felt in the F&I office is not about the products themselves, but about the experience. This is supported by the fact that consumers realize that F&I products may be beneficial: Eighty-four percent say they believe that F&I products may have real value, and 66% indicate that they think F&I products may save money in the long run.

“F&I is one of the biggest parts of the buying process that has still not moved into the digital age, and dealers have been hesitant to evolve this process because it’s a major profit center,” said Mike Burgiss, founder and vice president of MakeMyDeal. “However, our study shows that the current F&I process breeds consumer skepticism. By changing when and how the shopper is introduced to F&I products, dealers could see a dramatic change in consumers’ likelihood to buy F&I products.”

Consumers’ desire to sign on the line and run is problematic, as the study showed that there is a gap in their understanding of the offerings. One third of respondents say they find the list of F&I product choices confusing. And 54% say they prefer to simply complete their purchase and leave the dealership as quickly as possible.

Even among consumers who said they were familiar with key product offerings, a significant portion could not correctly identify them. For example, 46% of respondents who claimed to be familiar with the vehicle service contract did not select the correct definition. Similarly, 56% of those who claimed familiarity could not identify the correct definition for prepaid planned maintenance.

Currently, most consumers are first exposed to F&I offerings after the vehicle price and trade-in have been negotiated at the dealership, but the study shows that consumers would prefer to learn about F&I products beforehand— on their own time. Over eight in 10 of study participants (83%) say they are interested in learning about F&I products before entering the dealership.

Once a consumer has a better understanding of the offerings, they are more open to hearing about them from the F&I manager, even among the most skeptical shoppers. Three fourths (75%) of all respondents (and 69%of those who are skeptical of F&I) report being interested in learning more about them from the dealership after they had a better understanding of what they were. Most strikingly, 63% of consumers state they would be more likely to buy F&I products if they could learn about them on their own time, before finalizing their vehicle purchase.

“When F&I product information and pricing is brought online, the dealer not only provides an exceptional buying experience, but they also help more shoppers realize the value these products provide,” Burgiss said. “And since consumers are more likely to buy F&I products and services when they learn about them earlier in the vehicle purchasing process, dealerships have a huge opportunity to grow their bottom lines while providing an experience that consumers desire.”

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FCA US Profits Drop in 2014 on One-Time Expenses

DETROIT – FCA US, formerly Chrysler Group, reported Wednesday a drop in net income to $1.2 billion for 2014, compared to a net profit of $2.8 billion in 2013, reported MLive.

That came despite a rise of 15 percent in revenue to $83.1 billion.

The Auburn Hills-based subsidiary of Fiat Chrysler Automobiles NV said the drop in profit was the result of special, one-time charges. Adjusted items included a $504 million loss stemming from debt repayment on a note held by the UAW Retiree Medical Benefits Trust, and from a $672 million charge for commitments associated with the January 2014 memorandum of understanding signed with the UAW.

The company said on an adjusted basis, net income was up 31 percent to $2.4 billion.

The company’s operating margin was 4.2 percent for 2014, with operating profits of $3.5 billion. FCA US’ operating margin in 2013 was 4.4 percent.

Market share in the U.S. grew 100 basis points to 12.4 percent.

Last week, FCA NV, the parent company of FCA US, reported net profit of 632 million euros, or about $717.4 million, for 2014, driven in part by strong sales of the Jeep brand. The company’s full-year revenues grew 11 percent to 96 billion euros, or about $109 billion.

FCA US’ global vehicle sales 15 percent to 2.8 million units in 2014. Sales in the U.S. were up 16 percent.

Also on Tuesday, FCA US also released a 14 percent rise for the month of January to 145,007 units.

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Chrysler’s Profits Up 32% to $611 Million in Q3

DETROIT – Chrysler Group LLC’s net profits rose 32 percent to $611 million in the third quarter, the Auburn Hills company announced Wednesday, reported MLive.

That comes on top line growth of 18 percent to $20.7 billion for net revenues. The revenue growth was driven by higher vehicle shipments, in particular the all-new Jeep Cherokee and Chrysler 200 models, the company said.

The company’s worldwide vehicle shipments in the quarter totaled 711,000 vehicles, a rise of 18 percent.

For the first nine months of 2014, Chrysler Group LLC reported adjusted net income of $1.7 billion, up from $1.2 billion in the first nine months of 2013. Its net revenue in the period grew to $60.1 billion, compared with $50.9 billion in the first nine months of 2013.

Last week, Chrysler Group’s parent company, Fiat Chrysler Automobiles, reported operating profit growth of 7 percent to $1.15 billion in the third quarter. FCA’s net revenue was up 14 percent to $29.5 billion in the period.

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Ford’s Profits Drop in Q3

DETROIT – Ford Motor Co. reported net income of $835 million in the third quarter, a drop of about 34 percent from earnings of $1.27 billion in the year-ago period, reported MLive.

Pre-tax profit fell to $1.2 billion in the third quarter of 2014 from $2.6 billion in the comparable quarter last year. Ford said in an earnings release Friday the pre-tax profit decline is due to lower volume, higher warranty costs and adverse balance sheet exchange effects.

Wholesale volumes were 3 down percent year-over-year in the quarter. Ford’s revenue slid 2 percent to $34.9 billion in the period.

The overall declines were expected, as Ford rolls out a slew of new global product launches, not the least of which includes the 2015 Ford F-150.

“During the third quarter, we continued to introduce an unprecedented number of new vehicles and invest heavily in the new products and technologies that will deliver strong profitable growth beginning next year,” Mark Fields, president and CEO, says in the earnings release. “We also addressed business challenges head-on using our proven One Ford plan. Everyone at Ford remains focused on accelerating our pace of progress, while delivering product excellence and innovation in every part of our business.”

Ford’s pre-tax profit outlook of $6 billion for the year remains unchanged.

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