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Monday, March 2, 2009
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Issue 36
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VOLUME 3
ISSUE 36
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News, Trends & Products
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The importance of service in today’s economy
Why it pays to go the extra mile to help your customers on the rough road ahead
Full Story
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The key to maximizing your profits – Average visits per year
How to use service marketing to measure and improve the health of your customer base
Full Story
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J.D. Power: Exceptional service satisfaction boosts profitability
In today's tough automotive market, providing consumers with superior service experiences translates into increased profitability for dealers and automakers, with the highest-performing brands retaining more than 80 percent of their customer maintenance and repair dollars within their dealer network, compared with retention rates of less than 60 percent for lower-performing brands, according to the J.D. Power and Associates 2009 Customer Service Index (CSI) Study released last week.
[FULL STORY]
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Federal tests of infant car seats found
Safety failures in crashes cited
In a government crash-test video, the infant car seat flies off of its base, smashing the baby dummy — still strapped into the carrier — upside down and face-first into the back of the driver’s seat, the Detroit Free Press reports. This seat was one of 31 that either flew off their bases or exceeded injury limits in a series of frontal crashes conducted by federal researchers using 2008 model year vehicles, a Chicago Tribune investigation found. The test results were never publicized, and even some infant-seat makers were unaware of their existence. The Tribune found the results buried in thousands of pages of test reports from the National Highway Traffic Safety Administration. These tests are used to rate the safety of cars, not the child restraints in them. See the video
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Microsoft to unveil new auto software today
Microsoft Inc. plans to unveil its latest version of Microsoft Auto, the software platform for Ford Motor Co.’s Sync technology, today at two information technology trade shows in Germany, the Detroit Free Press reports. Velle Kolde, senior product manager in Microsoft’s automotive business unit, said the new version of the technology shows that the software giant remains committed to developing new products for the automotive industry. Last year, as automotive sales began to plummet, Microsoft said it planned to increase its automotive investment by 30percent. “A lot of companies in the automotive industry were cutting back…and we had both feet on the gas pedal and still do,” Kolde said. Microsoft Auto 4.0 will be available to automakers and suppliers this spring, Kolde said.
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Increased scrutiny directed at airbag fraud
It’s a potentially deadly problem that remains hidden until the need is greatest – faulty airbags. Your customers may be asking questions about the reliability of these systems as this issue receives more publicity, as it did recently during investigative reports on National Public Radio’s “Weekend Edition,” Automotive Body Repair News reports. A review by the National Highway Traffic Safety Administration (NHTSA) of 1,446 fatal accidents from 2001 and 2006 found 255 instances – almost 18 percent – of missing airbags that had not been repaired following a previous wreck.
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Ford: Vehicles will be less costly to repair, insure
Ford Motor Co. said it has teamed with insurance agencies and auto repair specialists to make its cars less expensive to repair. At Ford’s Paint and Body Technology Center in Michigan, new models are repeatedly crashed and repaired so that changes can be made to the vehicles that reduce the complexity of repairs. The facility is also being used to determine the best and fastest procedures for vehicle repairs. This is the first time that an automaker has combined forces with insurance agencies and repair facilities to reduce repair costs. See the full announcement inside.
[FULL STORY]
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Performance chemicals trump appearance products
In a market where owners routinely traded vehicles every three to five years, many with the “new car smell” still intact, we have seen a dramatic change in ownership behavior, reports Styling & Performance. More than 2.3 million North American consumers refrained from buying new vehicles in 2008 versus 2007. Vehicle retention rates are rising and consumers are putting older vehicles back on the road. Many of these consumers are turning to both appearance and performance chemicals to make those old cars feel new again. “Historically, our company has done well in downturns as consumers seek out lower cost ways of retaining vehicle value,” says Michael Schultz, vice president of New Product Development with Turtle Wax. “I expect a return to DIY car care.” The performance product category fared better than the appearance category in 2008, according to James Stone, director of Chemicals and Appearance Marketing with Shell.
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Safety inspections provide opportunities during National Car Care Month
Utilizing the heightened attention on car maintenance during April’s Car Care Month can boost vehicle safety inspection awareness and necessity, Motor Age notes this week. Vehicle safety inspections are not mandated in all states, but support of the practice — both for sales and safety — should become common law throughout the supply chain. In fact, with legislation moving through the federal level, it just might become mandatory. “It brings work into the shop. Naturally, you go through lots of safety things, brakes, front ends, and you want to look at it real close,” says Bud Vollmer, owner of Vollmer Motor Sales, New Brighton, Pa. “If there is a problem, it has to be corrected or else you could lose the license.” But if your state doesn’t require inspections, now is still a good time to develop a program on your own.
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LoyaltyTrac: Dealer loyalty program gaining popularity
MediaTrac, LLC announced last week that it had surpassed 5,000,000 LoyaltyTrac Service Rewards program members. LoyaltyTrac is the largest dealership-based rewards program in the US and its membership base is equivalent to 40 percent of all the new vehicles sold in 2008, the company says.
[FULL STORY]
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Warranty Solutions selects SEcureCard for claims payment
StoneEagle announced today that Warranty Solutions, a provider of Vehicle Service Contracts and other automotive F&I after-market products, has selected SEcureCard to automate the claims management process for paying auto Dealers and repair facilities.
[FULL STORY]
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Cooper Tire “Take the Money and Ride” to Re-Launch in March
Cooper Tire & Rubber Company's fall “Take the Money and Ride National Event” rebate promotion is making a return March 2 – April 30, 2009, with a modified lineup of eligible products. The company says it is responding to the promotion's popularity. Cooper is supporting the rebate program with national TV and radio advertising, as well as point of sale materials for its dealers including a poster, tire insert, window decal and counter card entry form. Consumers can obtain a rebate form from their local Cooper Tire dealer or download one at www.coopertire.com.
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NAC names new director
NAC, a service contract products and services company, announced the addition of Margaret Chandler as Director of Fixed Operations & Income Development. In her new role, Chandler will oversee NAC Service Drive Solution sales, implementation and training for dealers and agents throughout North America.
[FULL STORY]
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How to endure, survive and even thrive in tumultuous times
Is that what you and your store(s) need at this very moment? The knowledge of how to endure in these tumultuous times? The ability to survive in these tumultuous times? And can you imagine…a plan to even thrive in these tumultuous times?
[FULL STORY]
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10 ways to pump up your service drive revenue
Increase your service appointments by 24 percent using proven data mining and online scheduling best practices
Full Story
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Internet driven accessories sales – Strategies and best practices for success in a down economy
Tips and practices to generate additional profits with Internet driven accessories sales
Full Story
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In DFO magazine
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Modern, environmentally friendly in-ground lifts are coming back
by Mark Fitzpatrick
If you're one of those dealers who's still clinging to the idea that in-ground lifts are a potential environmental hazard and something to be avoided, you should know that you're engaging in some outdated thinking that could be hurting the efficiency and profitability of your service department. Let me explain. Once a shop favorite, old-style in-ground lifts lost popularity a couple decades ago, due in part to environmental concerns. Traditional in-ground lifts used up to 62 gallons of hydraulic fluid. If a lift developed a leak and was not removed from the ground for repair, the soil surrounding the lift would become contaminated. If the dealership or shop was later sold, all the contaminated soil would have to be remediated before the sale could be completed—and that was expensive.Read more
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Dave Anderson's Leadership Quote of the Week
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DFO Community
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