Next Day Traffic

(Click here for prices and specifications on the 2010 Prius.)

By Scott Burgess / The Detroit News

The worst possible gas mileage you’ll ever get in the 2010 Toyota Prius is 26.8 miles per gallon.

I know this because I did every thing humanly possible to beat this redesigned hybrid into submission.

The car’s sticker reads an eye-popping 51 mpg city, 48 mpg highway — 50 mpg combined — and most people will best that mileage without even trying. So I had to see what it would do if I did everything wrong.

I rolled the windows down, turned the AC on high and gunned the 1.8-liter four-cylinder engine in the parking lot, hoping to spin the optional 17-inch low rolling resistant tires in defiance; let’s put all 134 horses, a combined total from the engine and electric motor, to work.

Clicking on the headlights and toying with the sunroof like a 6-year-old, I wanted to leave the car’s batteries depleted by the time I returned. Thumping the accelerator harder than John Bonham thwacks the drums in the “Immigrant Song,” I took off with a laugh.

The course Toyota set up in Napa, Calif., for journalists testing the vehicle was supposed to demonstrate how efficient the company has made its third-generation Prius. But Toyota wasn’t going to fool me with its California eco-speak. Detroiters know better: The Prius is evil.

It has insidiously crept its way into the mainstream automotive world with its high mileage, clean emissions and cult following. Half gas, half electric, it’s a marketing monster, devouring everything around it — including Detroit’s lunch — with a silent little electric hum. The new model is even quieter, as it debuts its first completely belt-free engine. Every accessory, from the air conditioning to the water pump, is electric only.

Prius best in midsize mileage

I took to the road in “braking mode” instead of “drive.” The brake mode is great for cruising down mountainsides but lousy for attempting to achieve respectable gas mileage. Every time I took my foot off the accelerator, the engine would start to slow the car through compression braking. (Think downshifting on a manual.) And I was doing my best to never let the hybrid system take over — Toyota has improved 90 percent of the system. When the engine silently shuts off at traffic light, you can’t even rev in neutral.

Foiled again!

This is the car that embodies all of Detroit’s fear and loathing. People throughout America think the word Prius means hybrid. Make that mistake in Motor City and auto executives break out in facial ticks. It’s no wonder I wanted to take out my misguided aggressions on it.

But coasting this 3,000-pound machine up hills and accelerating down them, randomly coming to a full stop before flooring it again, did not work. The Prius still bested the city mileage of every single gasoline midsize sedan.

Sorry Detroit, I tried.

With no attempt to hyper-mile, the new Prius will likely top 60 mpg. Seventy miles per gallon is not impossible and requires just a little concentration.

But, wait, it gets worse.

Quirkiness replaced with function

Toyota’s overhaul makes the Prius almost fun to drive — certainly a lot more fun than the previous generation. Some of the car’s quirkiness has been replaced with function and Toyota has given the Prius a significantly better interior.

If the first-generation Prius was a gimmick, and the second generation a threat, the third generation just might be a punch in the gut for anyone trying to catch it. It’s scary good. Here’s why:

• The new Prius is better looking. Toyota has managed to keep the iconic profile and make it better. The car is stretched slightly (just over half an inch) and designers moved back that bump on the roof. The exterior sheet metal has sharper creases, giving it a much cleaner look. It looks like an unfinished pinewood derby entry, but if it was, it’d probably win. Due to exterior changes and wind channeling under the car, the Prius is one of the slipperiest cars in a wind tunnel. (Geeks might appreciate a drag coefficient of .25 — I only know that I’ve never seen that number associated with a mass produced car.)

• Improved is an understatement: Every change Toyota made spiraled into more improvements. It shrunk many of the hybrid’s key components, creating more interior space and a lighter vehicle; it used a bigger engine to give it more power as well as run at lower rpm and use less gas; it added three driving modes to the car, and even the power mode is more efficient than if you tried to drive aggressively. (I had to turn off the power mode in order to lower the mileage. I never considered the new EV mode, which allows for low speed electric-only driving or the Eco mode that also helps your overall gas mileage.).

• Impressive new features: The solar panels surrounding the sun roof add to the car’s look as well as power an electric fan that helps keep the car’s cabin from overheating. If the car senses the interior space is getting too hot, the fan switches on and draws in fresh outside air. This helps reduce the strain on the air conditioner. Oh, if you want, you can also activate the electric-only air conditioner by remote before getting in the vehicle.

Then there’s the adaptive cruise control, found on much more expensive vehicles, which will adjust the car’s speed based on the vehicle in front of it. There’s also an intelligent park-assist feature, back-up monitor and a lane-assist system. This helps you drive the straight and narrow and holds you in your lane. For multi-taskers yapping on their cell phone, yelling at their kids and driving, this system might prevent a few accidents.

Toyota also debuts its Safety Connect system, which will notify authorities after an accident, has an SOS call button and can locate the vehicle if it’s stolen. Of course, if any future owner chats up this system too much, just reply “On-Star.” Not every great idea starts at Toyota.

• Performs better: Owners may love the first- and second-generation Prius, but those were awful cars to drive. The goofy shifter mounted on the dash, the silly hybrid screen. It has the performance of a row boat on a raging river. The steering was numb and the ride was noisy. It may have gotten good mileage but it had laughable performance. Detroiters rejoiced.

However, Toyota has a new platform for the Prius and this one responds to the road and the driver. The steering has much better feedback and the car bites into corners. That may not be the best eco-friendly way to drive, but the car’s suspension handles aggressive driving pretty well. The rear drum brakes on the previous generation were replaced with discs and all of the electronics, such a stability control, help but were never overbearing. It’s never going to be a racer, but now it can race.

• Better interior: The previous Prius models didn’t measure up inside. It was as close to cheap patio furniture for cars as it could get. But the redesigned cockpit is very driver friendly. The floating center console holds the gear shifter in a normal place. The previous dash mounted shifter looked more like the controller to Space Invaders than it did a serious eco-friendly machine. The quality of the materials on the seats are better and by making the Prius over two inches wider, there feels like there is a lot more space inside the cabin.

The center mounted digital gauges feel natural and futuristic. There was little to dislike, as hard as I tried.

Revving the engine as I returned, I felt exhausted. My leg ached from thrashing the throttle and the herky-jerky driving left me beaten. The worst I could do was 26.8 mpg — which was way better than it should have done. Drive it normally and it will produce incredible mileage.

Now, with so many improvements, even at its worst, when it arrives later this spring, it’s one of the best cars out there.

Scott Burgess is the auto critic for The Detroit News. He can be reached at (313) 223-3217 or sburgess@detnews.com.

This article courtesy of the Detroit News.
http://apps.detnews.com/apps/autoreviews/index.php?id=34756

Some Americans are beginning to see light at the end of a long tunnel. For the past two weeks, the percentage of respondents in The Gallup Poll who say the economy is getting better has been steadily ticking up. Monday through Wednesday, 29 percent took the optimistic view — the highest number since July 2007.

Honda Dealer Advertising
 
Honda uses blog to build buzz and shape message for new Honda Insight according to Automotive News.  
 
Autonews.com/hondablog 

The goal for this execution is not to be a pushy message, rather than introduce the product, answer questions and “share” information with potential buyers. Did you ever think a manufacturer would want to share with a consumer? But Honda sees an opportunity to connect in a way that automakers have not ventured out to in the past. As I have learned with my blogging efforts, you learn just as much about what people want to hear as you tell them what you want to hear. Honda is more than likely using this blog, if I had to guess as a forum to read the hearts and minds of the potential Insight market. Not a bad way to learn. Oh yeah – it’s cheap too.  
 
Blogs can be effective marketing tools if they are used for information sharing and not to ram or blast unwanted information down a customer’s throat.

Polk: Strong Return to Market Possible Within Year

March 23, 2009

SOUTHFIELD, Mich. — Although drivers are holding on to their vehicles much longer these days, approximately one-third of consumers plan to make a purchase within the next year, and, interestingly enough, more than two-thirds are considering going used instead of new the next time they buy, according to the most recent market study from R.L. Polk and Co.

Specifically, Polk noted that average length of vehicle ownership climbed from 49 months in 2002 to 56.3 months in 2008.

What’s more, only 11 percent of consumers that Polk surveyed claimed the current economic downturn would have no effect on purchasing plans and over half said economic conditions would grow worse.

That said, many trends point toward a brighter future for the industry, officials indicated. “A state of optimism for the economy was also reflected in the study,” explained Lonnie Miller, director of industry analysis for Polk and co-author of the study. “Nearly one-third of respondents plan to purchase a vehicle within 12 months.”

And the used-vehicle market presents a more affordable alternative for many of these consumers, as 70 percent of respondents said they were at least somewhat likely to consider buying a used model instead of a new one.

“Reports of growing used vehicle prices and demand for vehicles at auto auction centers reinforce this mindset,” analysts pointed out.

On the new side, the market is likely to return to the 14.2 million unit mark by 2012, Polk projected.

What could help the new-vehicle industry’s future is the fact that that many manufacturers have formed loyalty teams in order to retain their current customers who may return to market once their buying power and consumer confidence improves.

“It’s important that these teams remain focused on future business even if marketing budgets are tight,” suggested Bruce Giffin, corporate market research manager at Polk and co-author of the study.

Another positive sign for the industry — at least for the Big 3 — is that 72 percent of consumers said they would consider buying domestic units when they return market in order to help spark the U.S. economy and support domestic automakers, according to the study.

In the meantime, many automakers have put a greater emphasis on their parts and service operations in order to offset declines while new-vehicle sales are slow.

According to Polk, this strategy can be advantageous to OEMs, especially when sales are short and the length of vehicle ownership increases.

“As consumers are holding on to their vehicles longer, now is the time for OEMs and dealers to foster new and even more relevant relationships with existing customers for potential business,” officials stressed.

In conclusion, Giffin offered one possible suggestion for how OEMs can plan for the future and boost sales down the road.

“Product development for future models needs to factor in and recognize a heightened level of consumer anxiety,” Giffin shared.

“OEMs should not emphasize consumers’ current economic views too much, but instead focus on accurately mapping out the volume of cars and trucks that will meet future demand,” he added.

For more information, visit www.polk.com.

This article is courtesy of AutoRemarketing
http://www.autoremarketing.com/ar/news/story.html?id=9219

Automotive Intelligence – “Automotive Recession Exercises”

While the market is showing some signs of optimism for import dealers, gas is starting to make the $2 creep. You better set some parameters on how you manage your business. I had someone in a dealership explain to me today that I was an ‘administrator’ and that I didn’t understand what happened to a salesperson’s morale when the doors got flooded with traffic that was upside down or had wretched credit. I had never dealt with 10 customers in a row that couldn’t buy, only to get frustrated. My answer to this was, “I may be an ‘administrator,’ but I’m the only one you will ever meet that can make the phone ring 1400 times a month in New Jersey / or give you 101 sales off 20,000 pieces of mail.” In this market you are going to have to wade through a sea of lifeless credit customers and that is what a salesperson does. Salespeople are there to sell cars and make money. If they want to make money and make the dealership money, they will and will stay to collect a 6-figure income; the ones who can’t will end up selling cell phones or office furniture. Managers are the ones holding the key to kingdom and how they manage the salespeople will determine for the most part how successful that sales person will be.

The following is my top 10 list of  “Automotive Recession Exercises”, or “ARE’s”. 

1. Are daily advertising plans being printed daily for the sales staff?
2. Are managers reviewing the advertising plan with each individual salesperson?
3. Are the people in your BDC ready to handle call and lead volume and not be distracted with live ups?
4. Are all associates required to set a number of daily appointments?
5. Are managers confirming each and every appointment?
6. Are all maturing customers being contacted with latest news regarding Owner Loyalty?
7. Are Orphan Owners assigned to someone at the store?
8. Are Salespeople working the Service Drive Daily for Sales Opportunities?
9. Are incoming sales calls being handled by mangers?
10. Are all people on the front-end of your business keenly aware of what is involved to manage the blocking-and-tackling that this market demands?

Kind of sounds like “Next Day Delivery” doesn’t it?

The current market and current stance by many companies demands “Next Day Traffic”.

The ability to make swift, precise, decisions and execute marketing that will bring “Next Day Traffic” is of great value to any dealership.

Look for more information in coming blogs about “Next Day Traffic”.

Ford Dealer Advertising

Nice Job to Ford for a very different look and different style with their first quarter advertising. The New ‘09 F-Series is not only a cool looking truck (even some Chevy dealers will admit this), but it is flanked by a great series of ads, read by none other than the cocky right winger, Dennis Leary.

If you haven’t paid attention to what Ford is doing then look again. Mike Strong believes Ford has a real shot to come out of this current recession as a much stronger auto maker than they were when they went in it.

Now all they have to do is get people through the door to see and drive the product and the dream can become a reality.

The 2009 Ford F-150 has won the following awards and accolades:

• 2009 North American Truck of the Year
• America’s safest full-size pickup with 5-star frontal and 5-star side-impact crash-test ratings, the highest possible scores, in the National Highway Traffic Safety Administration (NHTSA) tests.
• Motor Trend 2009 Truck of the Year Award(TM)
• Top honors as “Truck of Texas” as well as “Best Luxury Pickup” for the 2009 F-150 King Ranch from Texas Auto Writers Association
• Playboy’s 2009 Best Pickup
• 2009 Best Redesigned Vehicle from Kelley Blue Book’s kbb.com
• “Best Overall Half-Ton Pickup” from PickupTrucks.com
• “Automotive Excellence” award in the Workhorse Category from Popular Mechanics
• Detroit Free Press Truck of the Year
• Detroit News Truck of the Year
• “Top Safety Pick” from the Insurance Institute for Highway Safety for its standard safety technology:  Safety Canopy side curtain air bagsm and AdvanceTrac with Roll Stability Control
• “Residual Value” award from Automotive Leasing Guide (ALG) for retaining the highest percentage of its original price among 2009 full-size light duty pickups at the end of a conventional three-year lease, based on ALG projections
• Motor Trend’s Truck Trend Top 5 Trucks from Specialty Equipment Market Association (SEMA) for 2009 Ford F-150 Heavy Duty DeWALT(R) Contractor Concept
• “Accessory-Friendly Truck” Design Award from SEMA
• F-Series is best selling vehicle in America for 27 consecutive years; best-selling truck for 32 consecutive years
• Best Truck by Florida Monthly

An increase in cash buyers means 
a decrease in finance cash for your bottom line…

What do you do?

TARGET THE CREDIT CRIMINALS

Just like John Walsh from ‘Americas Most Wanted’, you need to consider making an all-out assault on the bad credit customers in your market. They just want to buy and want someone to tell them they can get them financed, and straighten out whatever situation they are in.

With more new car buyers using cash, because of the cash craze of late where all Americans want more of it under their pillow, you will feel the effects of this if you don’t watch it closely. You can do nothing to stop the increase in cash purchases around your market, other than sell as hard as possible to offer attractive lease and finance options. But there will be some people who just can’t change their mindset.

The Special Credit Customer can help shore up this otherwise loss in revenue. They have no choice and you stand to make much more finance money from them because after all, ‘beggars cant be choosers.’

Here are a couple of ideas that will not cost you anything… (well, not much)

• Rearrange Lot on Friday Afternoon
• Use 3 Times as many balloons as you normally put out
• Phones – have receptionist start answering phones on Friday asking are you calling about our One Day – Saturday Sale?”
• Email Blast – get it out Friday morning and give a valid reason for the sale
• Windshield Pricing – you know the drill; this helps sales people as much as customers
• Service Drive – offer bonus for highest tickets written
• Food – it is amazing what the smell of hot dogs and hamburgers does to a person

 You are probably not advertising heavy all 4 or 5 Saturday’s a month. Pick one and implement some of these ideas and see what you can accomplish.

 Call John Paul Strong today:  205.908.9200
 Email John Paul Strong today:  johnpaul@strongthinking.com
 Visit Strong’s website:  www.strongthinking.com