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Archive for September, 2009

Strong, LLC Creates BDC Motivational Campaign in Post-Clunker Market

September 30, 2009 strongllc Leave a comment

man&cigarette2As September comes to a close, some dealerships are still plagued with the salesmen who refuse to quit standing out front of the showroom smoking cigarettes and talking about how much money they made in August due to the “Cash for Clunkers” chaos.

Strong, LLC felt a vital need to provide encouragement and lead the way into the fighting through a tough post clunker market. We have reminded dealers and managers to continue ‘smiling and dialing’. A phrase that we did not invent – but believe will help managers get sales people back into the BDC’s and get them on the phones. There is enormous opportunity with follow-up from ‘clunker shoppers’ who did not buy.

man on phone headset

The script goes something like this:

“No there isn’t a government program anymore, but guess what Mrs. Smith… The government program actually caused the values of used vehicles such as yours to increase… Why your old Tahoe maybe worth than it was before the Clunker program ever began. Is there a time when you can bring it to the dealership so our used car inventory manager can give you a written equity analysis on it? Great, see you tomorrow at 3pm and remember – my name is John Paul – be sure and ask for me.”

It is very easy – all you have to do is get people who are eager to pick up the phones and do the work. Let the money and the phrase ‘smiling and dialing’ motivate them.

Categories: Uncategorized

National Automotive Redemption Centers – A “Cash for Clunkers” Success

September 30, 2009 strongllc Leave a comment

While most dealers who actively participated in “Cash for Clunkers” saw good sales and profit months in July and August, Strong, LLC is able to report our dealers fared even better. Our final results show dealers who engaged in the trademarked “National Automotive Redemption Center” (NARC) programs were able to increase gross profit that EXCEEDED market averages due to targeting lower funnel / credit challenged customers. While this program was not a fit for all dealers, images and demographics – the ‘credit criminals’ came out in full force to see their NARC dealers. The additional $3000 was only given on select vehicles to customers who qualified, but it made the phones ring!

Below is one of our NARC spots:

Categories: Uncategorized

Get in the Game and Play to Win!

September 29, 2009 strongllc Leave a comment

September 2009 Newsletter

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Categories: Uncategorized

The Best $90 I Ever Spent

September 28, 2009 strongllc Leave a comment
The Best $90 I Ever Spent
If you have lived in the last 50 years and paid any attention to college football you probably know that in the state of Alabama, football is one of those things that is considered to be a religion. Sundays are days where people go to church and in autumn, most people spend their Sundays recapping and recounting the events of the Alabama Football game the day before. The history of the University of Alabama with George Wallace blocking the school house door is only rivaled in the hearts and minds of Alabamians with some of the greatest players that have ever been on the UA Football Teams.  t is safe to say, unless you live in a cave – you are familiar with what the sport of football means to the people of Alabama.
While boarding a flight for Dallas a couple of Mondays ago, I had the chance to upgrade my seat to first class for $90. I wasn’t checking any bags and wasn’t getting docked with any bag fees. It was a early evening flight that would put me in Dallas after 8pm, just in time to have to eat a late meal, so I thought – why not, I will be able to relax more and work while traveling. While standing in line to get on the plane – I noticed an older gentleman coming from the right and I motioned him to go in front of me. It took a few seconds for me to realize that this man was none other than Coach Gene Stallings. I thought, “that’s cool – I am on the same plane with Gene Stallings, hell we’re even sitting in first class together!” As we walk on to the plane I noticed that Gene walked down and sat in the seat right next to mine and I thought, wow what a lucky day. As I sat down next to him I introduced myself and we began to talk a little about what each other were doing – (basically why we were traveling to Dallas).
Coach Stallings could tell I was obviously eager to converse, and as we talked there were some very unique things discussed. Coach Stallings had been in Birmingham (he currently lives in Paris, Texas – about 150 miles Northeast of Dallas) giving a speech to a Quarterback Club. When I asked him about what he thought about the salaries that some coaches earned, he chuckled and said it was embarrassing. You see, what Coach Stallings went on to elaborate was he never got into coaching for the money. He said the schools and teams like the Dallas Cowboys (whom he was an assistant under Tom Landry), always told him what they were going to pay him and that was good enough for him. He had no complaints about money but said for what people are getting paid vs. what they are achieving is not a solid value. That money should be put towards the University and the education of students. Since he’s from Dallas, I went on to ask him what he thought of the new Cowboys stadium. You know, the one that has the ‘largest and greatest picture video screen’ in the world. He said these pro stadiums have gotten ridiculous, owners tell the cities they have to have these new monstrosities in order to attract fans and bring in more revenue for the cities – however the owners do not share any of the revenues from the VIP suite sales which in most cases are from $50,000 to $100,000 or more a year. Multiply that times 100 suites and you see why each professional team owner wants a larger stadium. Coach Stallings also talked about recruiting and finding talent. He put together the greatest team Alabama has had in the last 30 years – the 1992 team that won the national championship at the Sugar Bowl when they clobbered a bigger / faster and what appeared to be a better Miami Hurricanes team. Stallings talked about how his team was not only filled with talented people, but they had leaders too. There were no egos too big to admit mistakes and everyone on the team knew they could be better everyday. He said there were not a lot of top rated high school recruits on that team (there were definitely some), but he said they were a group of people that just knew how to play football.
The Coach went on to ask me about my business and how the economy has affected it and I told him. We talked about what it takes today to run a business like an advertising agency, and where the future of the automotive market is heading. Coach Stallings wasn’t much for vanity and vehicles – he said his pickup truck was great, it worked well on his cattle ranch and unless it broke he didn’t plan on getting another one. There was never any mention into what brand, but you could tell he liked it. He told me he didn’t know enough about advertising to give me much advice other than, people generally believe what they see and hear on TV and that as long as a man doesn’t spend more on himself than he makes, he is going to turn out fine. As the flight went on, Coach Stallings and I talked more and more about football and people. It seemed that the two were going hand-in-hand, and towards the end of the flight his points were made very clear. Coach Stallings was not a very complicated person, he didn’t use text messages or computers – he asked that everything be sent to him via phone call or fax. He relied on people to help him – from the people he had teach him, to the people that he went on to teach – he was a fan and admirer of people. The end of our conversation turned back to the basics. I never asked him all the details of how he won the national championship, but in his few words he let me know that it only took ‘blocking and tackling.’
Relate this to what we do in our business:  Focus on the blocking and tackling. Execute the simple details to perfection and you will be able to win, and win more than the other guys.The Best $90 I Ever Spent
If you have lived in the last 50 years and paid any attention to college football you probably know that in the state of Alabama, football is one of those things that is considered to be a religion. Sundays are days where people go to church and in autumn, most people spend their Sundays recapping and recounting the events of the Alabama Football game the day before. The history of the University of Alabama with George Wallace blocking the school house door is only rivaled in the hearts and minds of Alabamians with some of the greatest players that have ever been on the UA Football Teams.  t is safe to say, unless you live in a cave – you are familiar with what the sport of football means to the people of Alabama.
While boarding a flight for Dallas a couple of Mondays ago, I had the chance to upgrade my seat to first class for $90. I wasn’t checking any bags and wasn’t getting docked with any bag fees. It was a early evening flight that would put me in Dallas after 8pm, just in time to have to eat a late meal, so I thought – why not, I will be able to relax more and work while traveling. While standing in line to get on the plane – I noticed an older gentleman coming from the right and I motioned him to go in front of me. It took a few seconds for me to realize that this man was none other than Coach Gene Stallings. I thought, “that’s cool – I am on the same plane with Gene Stallings, hell we’re even sitting in first class together!” As we walk on to the plane I noticed that Gene walked down and sat in the seat right next to mine and I thought, wow what a lucky day. As I sat down next to him I introduced myself and we began to talk a little about what each other were doing – (basically why we were traveling to Dallas).
Coach Stallings could tell I was obviously eager to converse, and as we talked there were some very unique things discussed. Coach Stallings had been in Birmingham (he currently lives in Paris, Texas – about 150 miles Northeast of Dallas) giving a speech to a Quarterback Club. When I asked him about what he thought about the salaries that some coaches earned, he chuckled and said it was embarrassing. You see, what Coach Stallings went on to elaborate was he never got into coaching for the money. He said the schools and teams like the Dallas Cowboys (whom he was an assistant under Tom Landry), always told him what they were going to pay him and that was good enough for him. He had no complaints about money but said for what people are getting paid vs. what they are achieving is not a solid value. That money should be put towards the University and the education of students. Since he’s from Dallas, I went on to ask him what he thought of the new Cowboys stadium. You know, the one that has the ‘largest and greatest picture video screen’ in the world. He said these pro stadiums have gotten ridiculous, owners tell the cities they have to have these new monstrosities in order to attract fans and bring in more revenue for the cities – however the owners do not share any of the revenues from the VIP suite sales which in most cases are from $50,000 to $100,000 or more a year. Multiply that times 100 suites and you see why each professional team owner wants a larger stadium. Coach Stallings also talked about recruiting and finding talent. He put together the greatest team Alabama has had in the last 30 years – the 1992 team that won the national championship at the Sugar Bowl when they clobbered a bigger / faster and what appeared to be a better Miami Hurricanes team. Stallings talked about how his team was not only filled with talented people, but they had leaders too. There were no egos too big to admit mistakes and everyone on the team knew they could be better everyday. He said there were not a lot of top rated high school recruits on that team (there were definitely some), but he said they were a group of people that just knew how to play football.
The Coach went on to ask me about my business and how the economy has affected it and I told him. We talked about what it takes today to run a business like an advertising agency, and where the future of the automotive market is heading. Coach Stallings wasn’t much for vanity and vehicles – he said his pickup truck was great, it worked well on his cattle ranch and unless it broke he didn’t plan on getting another one. There was never any mention into what brand, but you could tell he liked it. He told me he didn’t know enough about advertising to give me much advice other than, people generally believe what they see and hear on TV and that as long as a man doesn’t spend more on himself than he makes, he is going to turn out fine. As the flight went on, Coach Stallings and I talked more and more about football and people. It seemed that the two were going hand-in-hand, and towards the end of the flight his points were made very clear. Coach Stallings was not a very complicated person, he didn’t use text messages or computers – he asked that everything be sent to him via phone call or fax. He relied on people to help him – from the people he had teach him, to the people that he went on to teach – he was a fan and admirer of people. The end of our conversation turned back to the basics. I never asked him all the details of how he won the national championship, but in his few words he let me know that it only took ‘blocking and tackling.’
Relate this to what we do in our business:  Focus on the blocking and tackling. Execute the simple details to perfection and you will be able to win, and win more than the other guys.The Best $90 I Ever Spent
If you have lived in the last 50 years and paid any attention to college football you probably know that in the state of Alabama, football is one of those things that is considered to be a religion. Sundays are days where people go to church and in autumn, most people spend their Sundays recapping and recounting the events of the Alabama Football game the day before. The history of the University of Alabama with George Wallace blocking the school house door is only rivaled in the hearts and minds of Alabamians with some of the greatest players that have ever been on the UA Football Teams.  t is safe to say, unless you live in a cave – you are familiar with what the sport of football means to the people of Alabama.
While boarding a flight for Dallas a couple of Mondays ago, I had the chance to upgrade my seat to first class for $90. I wasn’t checking any bags and wasn’t getting docked with any bag fees. It was a early evening flight that would put me in Dallas after 8pm, just in time to have to eat a late meal, so I thought – why not, I will be able to relax more and work while traveling. While standing in line to get on the plane – I noticed an older gentleman coming from the right and I motioned him to go in front of me. It took a few seconds for me to realize that this man was none other than Coach Gene Stallings. I thought, “that’s cool – I am on the same plane with Gene Stallings, hell we’re even sitting in first class together!” As we walk on to the plane I noticed that Gene walked down and sat in the seat right next to mine and I thought, wow what a lucky day. As I sat down next to him I introduced myself and we began to talk a little about what each other were doing – (basically why we were traveling to Dallas).
Coach Stallings could tell I was obviously eager to converse, and as we talked there were some very unique things discussed. Coach Stallings had been in Birmingham (he currently lives in Paris, Texas – about 150 miles Northeast of Dallas) giving a speech to a Quarterback Club. When I asked him about what he thought about the salaries that some coaches earned, he chuckled and said it was embarrassing. You see, what Coach Stallings went on to elaborate was he never got into coaching for the money. He said the schools and teams like the Dallas Cowboys (whom he was an assistant under Tom Landry), always told him what they were going to pay him and that was good enough for him. He had no complaints about money but said for what people are getting paid vs. what they are achieving is not a solid value. That money should be put towards the University and the education of students. Since he’s from Dallas, I went on to ask him what he thought of the new Cowboys stadium. You know, the one that has the ‘largest and greatest picture video screen’ in the world. He said these pro stadiums have gotten ridiculous, owners tell the cities they have to have these new monstrosities in order to attract fans and bring in more revenue for the cities – however the owners do not share any of the revenues from the VIP suite sales which in most cases are from $50,000 to $100,000 or more a year. Multiply that times 100 suites and you see why each professional team owner wants a larger stadium. Coach Stallings also talked about recruiting and finding talent. He put together the greatest team Alabama has had in the last 30 years – the 1992 team that won the national championship at the Sugar Bowl when they clobbered a bigger / faster and what appeared to be a better Miami Hurricanes team. Stallings talked about how his team was not only filled with talented people, but they had leaders too. There were no egos too big to admit mistakes and everyone on the team knew they could be better everyday. He said there were not a lot of top rated high school recruits on that team (there were definitely some), but he said they were a group of people that just knew how to play football.
The Coach went on to ask me about my business and how the economy has affected it and I told him. We talked about what it takes today to run a business like an advertising agency, and where the future of the automotive market is heading. Coach Stallings wasn’t much for vanity and vehicles – he said his pickup truck was great, it worked well on his cattle ranch and unless it broke he didn’t plan on getting another one. There was never any mention into what brand, but you could tell he liked it. He told me he didn’t know enough about advertising to give me much advice other than, people generally believe what they see and hear on TV and that as long as a man doesn’t spend more on himself than he makes, he is going to turn out fine. As the flight went on, Coach Stallings and I talked more and more about football and people. It seemed that the two were going hand-in-hand, and towards the end of the flight his points were made very clear. Coach Stallings was not a very complicated person, he didn’t use text messages or computers – he asked that everything be sent to him via phone call or fax. He relied on people to help him – from the people he had teach him, to the people that he went on to teach – he was a fan and admirer of people. The end of our conversation turned back to the basics. I never asked him all the details of how he won the national championship, but in his few words he let me know that it only took ‘blocking and tackling.’
Relate this to what we do in our business:  Focus on the blocking and tackling. Execute the simple details to perfection and you will be able to win, and win more than the other guys.

If you have lived in the last 50 years and paid any attention to college football, you probably know that in the state of Alabama, football is one of those things that is considered to be a ‘religion’. Sundays are days where people go to church, and in the fall, most people spend their Sundays recapping and recounting the events of the previous day’s Alabama Football game. The history of the University of Alabama with George Wallace blocking the school house door is only rivaled in the hearts and minds of Alabamians with some of the greatest players that have ever been on the UA Football Teams. It is safe to say– unless you live in a cave – you are familiar with what the sport of football means to the people of Alabama.

While boarding a flight for Dallas a couple of Mondays ago, I had the chance to upgrade my seat to first class for $90. I wasn’t checking any bags and wasn’t getting docked with any bag fees. It was a early evening flight that would put me in Dallas after 8pm, just in time to have to eat a late meal, so I thought – why not, I will be able to relax more and work while I’m traveling. While standing in line to get on the plane, I noticed an older gentleman coming from the right and I motioned him to go in front of me. It took a few seconds for me to realize that this man was none other than Coach Gene Stallings. I thought, “that’s cool – I am on the same plane with Gene Stallings. Hell we’re even sitting in first class together!” As we walk on to the plane I noticed that Gene walked down and sat in the seat right next to mine and I thought, wow what a lucky day. As I sat down next to him, I introduced myself and we began to talk a little about what each other were doing (basically why we were traveling to Dallas).

bama collageCoach Stallings could tell I was obviously eager to converse, and as we talked there were some very unique things discussed. Coach Stallings had been in Birmingham (he currently lives in Paris, Texas – about 150 miles Northeast of Dallas) giving a speech to a Quarterback Club. When I asked him about what he thought about the salaries that some coaches earned, he chuckled and said it was embarrassing. You see, what Coach Stallings went on to elaborate was he never got into coaching for the money. He said the schools and teams like the Dallas Cowboys (whom he was an assistant under Tom Landry), always told him what they were going to pay him and that was good enough for him. He had no complaints about money, but he said, “For what people are getting paid vs. what they are achieving, is not a solid value. That money should be put towards the University and the education of students.” Since he’s from Dallas, I went on to ask him what he thought of the new Cowboys stadium. You know, the one that has the ‘largest and greatest picture video screen’ in the world. He said these pro stadiums have gotten ridiculous, owners tell the cities they have to have these new monstrosities in order to attract fans and bring in more revenue for the cities – however the owners do not share any of the revenues from the VIP suite sales which in most cases are from $50,000 to $100,000 or more a year. Multiply that times 100 suites and you see why each professional team owner wants a larger stadium.

Coach Stallings also talked about recruiting and finding talent. He put together the greatest team Alabama has had in the last 30 years – the 1992 team that won the National Championship in the Sugar Bowl when they clobbered a bigger, faster and what appeared to be a better Miami Hurricanes team. Stallings talked about how his team was not only filled with talented people; they had leaders too. There were no egos too big to admit mistakes and everyone on the team knew they could be better everyday. He said there were not a lot of top-rated high school recruits on that team (there were definitely some), but they were a group of people that just knew how to play football.

The Coach went on to ask me about my business and how the economy has affected it and I told him. We talked about what it takes today to run a business like an advertising agency, and where the future of the automotive market is heading. Coach Stallings wasn’t much for vanity and vehicles – he said his pickup truck was great, it worked well on his cattle ranch and unless it broke he didn’t plan on getting another one. There was never any mention into what brand, but you could tell he liked it. He told me he didn’t know enough about advertising to give me much advice other than, people generally believe what they see and hear on TV and that as long as a man doesn’t spend more on himself than he makes, he is going to turn out fine. As the flight went on, Coach Stallings and I talked more and more about football and people. It seemed that the two were going hand-in-hand, and towards the end of the flight his points were made very clear. Coach Stallings was not a very complicated person, he didn’t use text messages or computers – he asked that everything be sent to him via phone call or fax. He relied on people to help him – from the people he had teach him, to the people that he went on to teach – he was a fan and admirer of people. The end of our conversation turned back to the basics. I never asked him all the details of how he won the national championship, but in his few words he let me know that it only took ‘blocking and tackling.’

stallings_geneRelate this to what we do in our business:  Focus on the blocking and tackling. Execute the simple details to perfection and you will be able to win, and win more than the other guys.

Categories: Uncategorized

Bridging The Gap To Greener Vehicles

September 4, 2009 strongllc Leave a comment

Innovative fastener technology may fix an ailing automotive market 
while increasing sales and lowering recall and warranty rates

With auto sales down as much as 40 percent, it can feel to some like the industry is coming apart.  But a “revolution in fasteners” may soon help bridge the gap to greener vehicles, while increasing sales and lowering recall and warranty rates.

“We’re at the beginning of a fastener revolution in automotive,” says Ray Genick, Director of New Business Development and former VP of Engineering at Emhart Teknologies, a leader in the design and creation of unique assembly technologies. 

“It’s being driven not only by a need to lower recall and warranty costs, but also to raise fuel efficiency while reducing weight and environmental impact.”

A new report, which profiles Emhart Teknologies and other industry leaders, forecasts a growing automotive fastener market to reach $12.2 billion by 2012. 

“Automotive fasteners assume high significance owing to the increasingly complex nature of vehicular designs, which is expected to necessitate stronger, improved and durable fasteners,” states a news release for “Automotive Fasteners: A Global Strategic Business Report,” published by Global Industry Analysts, Inc., one of the world’s largest market research publishers.

Failure of fasteners is one of the leading causes of vehicle recall in North America and Europe, and improved fastener technology will be part of the solution, according to a release for the report.

The typical threaded joint, produced by a standard nut and bolt, has existed since the 19th century and is no longer adequate for many of the 21st century problems the automotive industry is facing, such as the need for greener vehicles.

The problem is that when a fastener loses its clamp load, it no longer does its job and safety, recall, or warranty issues occur. Locking devices from wires and washers to chemical and drypatch adhesives are commonly added to retain clamp load. While adding weight and complexity, however, these methods do not always hold up under shock, vibration, or temperature extremes.

An overdesign ‘belt and suspenders’ mentality in automotive design has prevailed, for instance, putting 8 bolts on an exhaust manifold when 4 might do. This has led to big, heavy, fuel inefficient cars that consumers will increasingly turn from in today’s cost, energy, and environmentally conscious climate.

While green technology beckons, much of it still isn’t ready for prime time.

Hybrid cars, which pair a traditional gas engine with advanced electronics, are gaining acceptance but are still too costly for many consumers. All-electric vehicles are hampered by battery cost, battery life, and inadequate electrical grids. Fuel cells, which release energy converting hydrogen to water, remain in development and lack a reliable means of distributing hydrogen fuel.

One green technology, however, is already proving itself…
Click here for more.

Article courtesy of Del Williams, technical writer, pddnet.com

Categories: Uncategorized

2010 Honda Insight Safety Features

September 3, 2009 strongllc Leave a comment

We know the 2010 Honda Insight is good to the environment and offers great fuel economy. However, how does it stack up when it comes to safety? If you are anything like me, you put safety features at the top of your list when purchasing vehicles. If you cherish your life and the lives of your loved ones you would be comparing the safety rating of vehicles prior to purchasing.

The Honda Insight comes with Vehicle Stability Assist (VSA). This helps the driver to maintain control during cornering, acceleration and sudden maneuvers, by applying braking to the right or left wheels as necessary and managing the engine torque systems as required. It is a computerized technology introduced in 1995 that improves the safety of a vehicle’s stability by detecting and minimizing skids. When ESC detects loss of steering control, ESC automatically applies the brakes to help “steer” the vehicle where the driver intends to go. Braking is automatically applied to individual wheels, such as the outer front wheel to counter over steer, or the inner rear wheel to counter under steer.

Secondly, the Insight comes with Advanced Compatibility Engineering (ACE). The Insight shell is a protective cocoon constructed of 42 per cent high tensile steel that disperses energy produced from a crash – boosting protection for its passengers by 20 per cent. Advanced Compatibility Engineering is the marketing name given to an automobile body structure design from Honda. It claims to distribute collision energy evenly and redirect it away from the passenger compartment, while at the same time, minimizing damage to other impacted vehicles. This is accomplished by using numerous grades of steel (typically four) which crumple in key areas and remain rigid in others.

This Cocoon design is used to protect passengers in a variety of ‘real-world’ crash conditions, these include: a frontal collision between vehicles of differing heights, weights and frame construction. The ACE body structure of the Insight prevents cabin crumple whilst reducing the chances of vertical or lateral misalignment between the Insight and another vehicle’s safety structures. The ACE structure provides exceptional stiffness, which also improves side impact protection.

Third, the makers of Honda of course want to keep pedestrians safe. This is why Honda has made features that can dramatically improve a pedestrian’s chance of survival if struck by a moving vehicle. These features include: windscreen wiper pivots designed to break away during impact, energy absorbing front wing mounts and bonnet hinges, as well as a clear area beneath the bonnet to allow it to crumple and absorb impact.

Neck injuries account for approximately 90% of all injuries in rear-end collisions. Over 90% of the injuries sustained by occupants whose vehicles are struck in rear-end collisions are to the neck region. More than 200,000 people suffer such injuries annually. For this reason alone the Insight has been equipped with active headrest. This features mitigates the load on the neck in rear-end collisions. The new Insight is also equipped with front seat active headrests, which reduce the likelihood of neck injury in rear impacts. As the occupant is pushed against the seat back, a rigid plate in the seat presses a link to the headrest pushing it up and forward to support the head.

Last, but not least what vehicle is complete without airbags and seatbelt. Dual front, side and full-length side curtain airbags are fitted as standard on all Honda Insight models. The front seatbelts have load-limiting pretensions. Two ISOFIX fittings in both the left and right rear seats together with tether anchor points in the rear roof ensure the correct installation and secure child-seat mounting points.

Article courtesy of newsoxy.com

Categories: Uncategorized

Cash for Clunkers UPDATE: Government says it will pay most clunker claims by Sept. 30

September 3, 2009 strongllc Leave a comment

WASHINGTON — The Obama administration expects to take until the end of the month to pay properly completed claims under the cash-for-clunkers program, a government official said today.

“We plan to pay all eligible and complete dealer submissions by September 30,” a Transportation Department official said.

The agency didn’t release an official figure of how many dealer submissions have been paid. A National Automobile Dealers Association survey released yesterday found that 5.7 percent of dealer submissions had received rebates.

“The new deadline is encouraging but still longer than we’d like,” NADA Chairman John McEleney said in an interview today.

About 120,000 claims for $500 million have been approved thus far, or about 17.3 percent of the total, the Transportation Department official said.

The agency said it expects to approve up to $100 million a day in claims by the end of next week.

Claims that are approved still have to go to the Treasury Department for final processing, and many dealers have complained that their submissions have been approved but not paid.

At a congressional staff briefing today, Transportation officials pledged that payments to dealers would start being wired within three days of approval of their applications, said a Senate aide who attended the briefing.

Some dealers expressed skepticism that the administration would be able to abide by its new promises.

“I’m making book and laying odds 3-to-2 that the government will not have paid more than 50 percent of all Clunker claims by Oct. 1,” Earl Stewart, a Toyota dealer in North Palm Beach, Fla., said in an email.

Stewart said he is owed $1.1 million in rebates and has been paid $226,000.

The department plans to increase the number of federal and contract employees processing dealer claims to 5,000 from about 2,000 by the middle of next week, the official said.

“We don’t know how well-trained they are,” McEleney said. “It’s been frustrating.”

The deadline for dealer submissions was Aug. 25. Under law, those submissions are supposed to be paid by tomorrow.

Transportation Secretary Ray LaHood has attributed the source of reimbursement delays to incomplete or improper dealer claims.

“We continue to work with dealers to educate them on how best to improve the quality of their resubmissions,” the department official said. “Multiple reviews slow the process and keeps dealers from getting paid.”

Dealers are allowed to resubmit rejected claims after the Aug. 25 deadline.

Article courtesy of Neil Rowland, Automotive News

Categories: Uncategorized

Honda May Have EV by 2016

September 2, 2009 strongllc Leave a comment

Rules alter Honda’s EV attitude

TOKYO — Honda Motor Co., long skeptical of electric vehicles, now plans to develop one, largely because it needs the ultraclean cars to meet tougher U.S. fuel economy and emissions rules.

Honda wants to bring the vehicle to the United States by 2015, Japan’s Nikkei business daily reported Aug. 22. Honda confirms an electric car is in the works but says nothing has been decided about when or where it will be launched.

“The most stringent SULEV standards will start around 2010, so we and all manufacturers have to meet that,” spokeswoman Yasuko Matsuura said, referring to standards for low-emission vehicles. “Our plans to launch an electric vehicle will depend on the regulations.”

California may be allowed to set emissions rules that are stricter than national regulations. In addition, federal law requires 2016 models to average 35.5 mpg, compared with 25.3 mpg this year.

The U.S. government has not decided how to treat electric vehicles under corporate average fuel economy standards. But Honda is among those betting that a zero-emission vehicle will go a long way to boost its fuel economy score.

At least six brands plan to launch electric or plug-in hybrid vehicles in the United States within two years: Chevrolet, Toyota, Nissan, Mitsubishi, Mini and Ford.

Article courtesy of Hans Griemel, Automotive News

Categories: Uncategorized

Ford Fusion Sales Set Record Numbers — Can the Momentum Last?

September 1, 2009 strongllc Leave a comment

With the Fusion, Ford thinks it has found the answer to midsize sedan success.

As the Ford Taurus began its steady decline into obscurity, the Toyota Camry and Honda Accord were increasing in popularity. Well, says Ford marketing manager Chantel Lenard, Ford’s back in the game with the Fusion. According to a Reuters report, the model has set a new sales record for the fifth consecutive month.
 

“It’s a very tough segment to be in. It’s been dominated by the imports over the last several years,” Lenard said to Reuters. “We are starting to break through and break that grip the imports have had on that segment.”


While Fusion sales have been positive, it’s unclear how much of the sales spike from the last two months was due to the CARS “Cash for Clunkers” program. What we find more interesting is the Fusion trim levels that have become most popular. A majority of 2010 model-year Fusions were higher-end SEL, Sport, or Hybrid trims; for the 2009 model, only 23% of the Fusions sold were for higher-end models.


Putting aside higher transaction prices, Ford may have difficulty setting the Fusion’s sixth-straight monthly sales record in September as dealers nationwide are expected to suffer from a post-CARS hangover.


Here are the sales numbers of some major midsize sedan players for the first seven months of the year:


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Ford, Subaru and Hyundai lead first U.S. sales gain in 21 months

September 1, 2009 strongllc Leave a comment

Sales reach 1.3 million vehicles as adjusted rate hits 13.7 million

Ford, Subaru and Hyundai-Kia led automakers posting August U.S. sales increases, as the government’s cash-for-clunkers program lifted industry demand to its highest levels since August 2008.

Light-vehicle sales hit 1.3 million, passing the 1-million mark for the first month since August 2008.

Sales increased 1.0 percent year-over-year to end 21 straight months of declines, while demand hit a 13.7-million-unit annual rate.

The increase came despite sharp drops at Chrysler Group and General Motors Co. The declines at both companies were shaper than they were in July.

“This was a very short-lived, ‘booster shot’ of a program,” Goldman Sachs analyst Patrick Archambault said of the cash-for-clunkers incentive.

Most automakers’ results were worse than analysts’ expectations because of sharp declines after cash for clunkers ended Aug. 24, he said.

Ford Motor Co.’s light-vehicle sales rose 17.2 percent, the largest increase since July 2005. The gain followed Ford’s 2.4 percent increase in July, which was its first year-over-year growth in 19 months.

Subaru’s sales spiked 51.5 percent, the brand’s largest increase since at least 1998, according to Automotive News data. Subaru’s eight-month sales were 11.2 percent above last year, and it is the only automaker ahead of its 2008 pace.

Hyundai-Kia’s sales soared 52.1 percebnt in August, the biggest increase since the companies joined in July 2002.

GM was off 20.1 percent in August, following its 19.4 percent drop in July.

Mike DiGiovanni, GM’s executive director of global market and industry analysis, said sales in August 2008 were inflated because of GM’s employee-pricing incentives tied to its 100th birthday.Chrysler’s sales fell 15.4 percent, worse than July’s 9.4 percent drop. Chrysler spokeswoman Kathy Graham blamed the sales decline on low inventory, saying the company had five vehicles that ended August with less than a 10-day supply.

At Volkswagen Group of America, sales rose 14.2 percent in August, the biggest rise since May 2006.

Honda’s light-vehicle sales increased 9.9 percent, the biggest year-over-year monthly increase since May 2008.

Sales at Toyota Motor Sales U.S.A. rose 6.4 percent gain, its largest increase since June 2007. Toyota was the top-selling brand in the government’s clunker program, according to government data. At Ford, F-series sales rose 12.8 percent in August to 45,590, the first increase since October 2006, Ford said.

That provides “an indication that small-business owners are seeing signs of recovery,” Ken Czubay, Ford’s vice president for U.S. marketing, sales and service, said in a statement.

Ford also noted a 55.9 percent rise in Focus sales and a 49.3 percent boost for the Escape crossover.

After the August boost from the clunker program, analysts see a lull ahead.

“What’s most meaningful is what’s going to follow August,” Goldman Sachs’ Archambault said. He said he’s expecting the sales rate in September and October to hover around 10 million units before increasing to an 11- or 12-million-unit rate in November and December.

“You take some pain in September and October, and then you move on,” he said. “If it’s something more sinister than that, if demand was propped up and made to seem higher than it was, that would obviously be bad news.”

Article courtesy of Chrissie Thompson, Automotive News
Richard Truett, Bradford Wernle and Jamie LaReau contributed to this report

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