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Retail
| A soar spot: Pump prices up 40 cents since April >> |
| Sonic sues Mercedes-Benz >> |
Marketing
| Autobytel posts $2 million loss in Q1 >> |
Remarketing
| eBay Motors seeks deals with other automakers >> |
Service & Parts
| VW offers free maintenance with 2009 brand models >> |
| Lithia extends vehicle repair warranty to 3 years/50,000 miles >> |
Prepaid plans spark service visits beyond oil changesSelling customers prepaid maintenance plans can generate service business, some retailers say. The plans, available from many automakers as well as from insurance providers, generally cover such things as oil changes, tire rotations, items that wear down and sometimes transportation reimbursement. Some are transferable. Most can be worked into customer payment plans. [SUB] 12:01 am U.S. ET | May 5 |
Key to managing floorplan costs: Be realisticManaging inventory and floorplan expenses in a downturn is a core dealership skill, since now more than ever no one wants to get caught with unsold cars racking up interest charges. “Anybody in the new-car business is going to tell you they're going to look twice before they take something else on their lot,” says Marty Collins, western region vice president for Group 1 Automotive Inc., of Houston. [SUB] 12:01 am U.S. ET | May 5 |
Dealers hunt upside-down buyers with leases, incentives and long-term loansWith more than a quarter of their customers upside down on loans, auto dealers and manufacturers are turning to leasing, lucrative incentives and longer terms to sell vehicles. [SUB] 12:01 am U.S. ET | May 5 |
Long-term loans: Convenience or bad deal?As lenders and automakers offer longer loan terms to attract buyers with negative equity in their current vehicles, many in the industry say consumers should beware. [SUB] 12:01 am U.S. ET | May 5 |
Where have all the investors gone?Dealers are working harder than ever to get subprime customers financed. Not only do economic hardships make it more difficult for consumers to qualify for financing, but subprime auto lenders find it harder to borrow money to make new loans. [SUB] 12:01 am U.S. ET | May 5 |
Dealer rebounds from contract messWhen Automotive Professionals Inc. filed for bankruptcy in April 2007, the vendor stopped paying claims on the 250,000 vehicle service contracts it had sold. Customers of Texas dealer Ramsay Gillman owned more than 15,000 of them. Because the contracts bore Gillman's name, he resolved to cover repair claims on the contracts sold through Gillman Cos. dealerships. So far, Gillman said, he has paid out more than $500,000. [SUB] 12:01 am U.S. ET | May 5 |
GMAC unit buys time with $12.8B debt refinance plan
Residential Capital LLC, the beleaguered mortgage finance unit of GMAC, on Friday said it intends to restructure more than $12.8 billion of debt in a move analysts say will relieve short-term bankruptcy risk of the company. [REG] 12:01 am U.S. ET | May 2 | UPDATED: 5/2/08 3:19 p.m. EDT
General Motors posts $3.25 billion loss in 1QGeneral Motors said today it posted a net loss of $3.25 billion (2.1 billion euros) during the first quarter -- the bulk of the red ink coming from one-time charges for its troubled GMAC investment and for continuing problems at supplier Delphi Corp. GM also said it lost about $800 million in the quarter because of costs stemming from the UAW's two-month-long strike at supplier American Axle & Manufacturing Holdings Inc. [REG] May 1 06:01 CET | UPDATED: 4/30/08 10:06 a.m. EDT |
GM posts $3.25 billion loss in Q1, stock risesGeneral Motors today lowered its estimate for U.S. total industry vehicle sales for 2008 after it reported a net loss of $3.25 billion during the first quarter. GM posted a net loss of $42 million during the 2007 first quarter. Not including one-time items, GM lost $350 million, compared with a loss of $10 million a year earlier. Wall Street expected worse. GM stock soared 9.4 percent to $23.20 a share at closing time. [REG] 7:22 am U.S. ET | April 30 | UPDATED: 4/30/08 4:01 p.m. EDT |
GMAC posts $589 million loss; may not turn 2008 profitFinance company GMAC said on Tuesday its first-quarter loss nearly doubled as more customers fell behind on mortgage payments, and that it may not turn a profit this year. [REG] 9:15 am U.S. ET | April 29 |
Stephen Feinberg speaks! |
Ryan revolutionized this business
Although Pat Ryan is retiring as executive chairman of Aon Corp., his presence will always be felt in the auto industry (“F&I pioneer Pat Ryan to retire from Aon,” March 24). Pat revolutionized the car business by introducing dealers to new sources of income through separate F&I departments handling finance contracts, life and disability coverage and extended warranties. [SUB] 12:01 am U.S. ET | April 21
EDITORIAL
Service contracts: Federal oversight is needed
A service contract, sold through a dealership or directly to a vehicle owner, can offer useful extended protection when a factory warranty expires. But when third-party vendors use abusive -- or illegal -- tactics to market their contracts, both the industry and consumers have a right to expect tougher regulation by government. [SUB] 12:01 am U.S. ET | April 21
Stephen Feinberg speaks!Stephen Feinberg is no Howard Hughes after all. The reclusive chairman of Cerberus Capital Management, who generally refuses interviews and won't allow his picture to be taken, seems to have realized that the silent treatment may not be the best option when you own two of America's best-known companies, Chrysler LLC and GMAC. [SUB] 12:01 am U.S. ET | April 21 |
Czech AAA Auto board approves restructuring plan
Czech used car dealer AAA Auto group said its management board approved a restructuring plan aimed at divesting non-core assets and returning the group to profitability. The plan includes selling some of its properties by the end of the year. [REG] April 16 15:44 CET
Peugeot plans first dividend increase since five years
Peugeot said it is to propose a full-year dividend of 1.50 euros per share, representing the company's first dividend increase in five years, during which it has remained at 1.35 euros. Peugeot said the dividend was among the resolutions that were approved today by the company's supervisory board for its May 28 annual meeting. [REG] April 16 09:51 CET
EU approves aid for Greek highways
he European Commission gave the green light today for 550 million euros ($870.7 million) in aid Greece is granting to upgrade its highways. "The Commission considers that grants for the construction and upgrading of this road infrastructure in Greece do not constitute state aid," the European Union executive said in a statement. [REG] April 16 12:00 CET
German carmakers face high credit crunch costs
German carmakers face additional costs of more than 500 million euros this year due to rising interest rates in the wake of the financial market credit crunch, Financial Times Deutschland reported, citing the summary of a study by Booz Allen Hamilton it obtained. [REG] April 15 10:18 CET
Hard-sell tactics plague dealers, customersPaul Broome, a Cadillac dealer in Independence, Mo., hears from about 10 customers a month who complain about his dealership's high-pressure sales of service contracts. But Broome has nothing to do with the disputed contracts or their marketing. Instead, some peddlers of third-party contracts tap vehicle registration data to reach customers of dealerships such as Broome's by telephone, e-mail and direct mail. [SUB] 12:01 am U.S. ET | April 14 |
NADA offers training in risky creditAs many as three out of five shoppers who visit auto dealerships have blemished credit, the National Automobile Dealers Association estimates. In response, NADA is offering dealers a training DVD and manual that show how to set up "special finance" departments that work with customers who have risky credit. [SUB] 12:01 am U.S. ET | April 14 |
Deal's goal: Widen appeal of dent-repair coverageDent Wizard, which sells dent-and-ding repair coverage to auto owners, wants to expand sales of the product beyond its traditional luxury-vehicle customer base. So the St. Louis company has formed marketing alliances with two vendors to offer its Ding Shield service plan as a package with other aftermarket products. [SUB] 12:01 am U.S. ET | April 14 |
Vehicle loan delinquencies rise from 2007
Delinquency rates on prime and subprime vehicle loans have risen over the past year, according to Fitch Ratings. Last month, the rating agency said, 0.63 percent of prime auto loans were past due by 60 days or more -- a 16.0 percent drop from February 2008 but 34.0 percent higher than in March 2007. [SUB] 12:01 am U.S. ET | April 14
Title committee created
The National Title Solutions Forum has merged into the American Financial Services Association. The forum, which seeks to improve vehicle titling, becomes a committee within the association's vehicle finance division. [SUB] 12:01 am U.S. ET | April 14
Honda plans to ban online contract sales -- maybe
Urged on by its national dealer council, American Honda had decided to prohibit dealers from selling Honda-backed extended service contracts online -- starting Tuesday, April 1. But the company hadn't counted on a small Rhode Island dealer taking it to court. [SUB] 12:01 am U.S. ET | April 7
