#DealerNews
Audi to Dealers: Wean Yourselves Off Incentives and Get Ready to Push EVs
Along with the rest of Volkswagen AG, Audi has made plans to invest heavily into electric vehicles. The company expects EVs to comprise 25 percent of its U.S. sales by 2025 and is devoting the e-tron moniker to an entire division of electrified models, with the first arriving next year.
Addressing the J.D. Power Summit at this year’s National Automobile Dealers Association Convention and Expo, Audi of America President Scott Keogh told salesmen to welcome the electric mobility market with open arms or learn to cope with an ambivalent future. However, jumping head-first into a relatively small market with a huge potential for growth isn’t without pitfalls, and it isn’t unwise for dealers to remain cautious. Still, with Audi planning to introduce three new BEVs within the United States by 2020 and Volkswagen Group hoping to have 30 battery-electric models out by the 2025, you can see why Keogh is pressing the issue.
Cadillac is Cutting Dealers Some Serious Slack Over Project Pinnacle
Cadillac’s rollout of Project Pinnacle has been, let’s face it, a categorical mess. The program faced an immediate backlash from dealerships when General Motors explained it would categorize them based on sales projections and require an adherence to a higher standard of customer service. This was followed by smaller dealers refusing to take Cadillac’s buyouts, forcing the company to delay Pinnacle’s launch on two separate occasions.
The most recent postponement was so dealers could have more time to understand the program’s finer details — or so Cadillac claimed. However, now the automaker is altering portions of the incentive program so that dealers receive payments sooner and are eligible for partial bonuses even if they fall as much as 15 percent short of monthly sales goals. Caddy is also easing on some of those high standards it demanded of dealers and eliminating the appeals process for those deemed noncompliant.
Guam Residents Unknowingly 'Owned' Luxury Vehicles in Export Scheme
Guam, besides having the highest per-capita Spam consumption in the world (16 tins per person, on average), is also home to a recently uncovered fraud scheme that placed high-end vehicles in the driveways of island residents.
On paper, anyway. The unsuspecting residents — over 50 of them, authorities say — had no idea their names were placed next to luxury SUV registrations in the Department of Motor Vehicles database.
One Dealer's Success Story: Lose the Commission, Drop the Sleazy Salespeople
In terms of unpleasantness, buying a new vehicle often ranks up there with visiting a passive-aggressive dentist, or perhaps meeting with your child’s teacher to discuss his or her “performance.”
Overzealous salespeople who stereotype customers, high-pressure them into buying the vehicle and package the seller wants, and generally lack knowledge about their own product likely sour more people on a brand than recalls and scandals. If only there was an easy way to avoid turning customers away while boosting sales.
It turns out, the solution could be very simple.
Cadillac Dealers Unhappily Jump Aboard Project Pinnacle
A large-scale culling of Cadillac dealers won’t come to pass, but that doesn’t mean franchise owners are giddy about joining the automaker’s controversial Project Pinnacle.
An overwhelming majority of the brand’s 925 U.S. dealers have opted to sign on to the program, ignoring company president Johan de Nysschen’s last-minute buyout offer to 400 low-volume locations.
Jeep Dealership Claims Anton Yelchin's Death Was His Own Fault, Wants Out of Lawsuit
A new wrinkle has cropped up in the lawsuit filed against Fiat Chrysler Automobiles by the parents of late Star Trek actor Anton Yelchin.
Yelchin died in June after being pinned against a gatepost by his 2015 Jeep Cherokee, which was subject to a recall for its confusing Monostable shift lever. According to documents obtained by TMZ, the dealer that sold him the vehicle blames the victim for the accident.
Fiat Chrysler Antitrust Lawsuit Goes Ahead After Judge Throws Out Racketeering Charge
The lawsuit that sparked federal investigations of Fiat Chrysler Automobiles and changed the way it reports sales is going ahead, minus a racketeering charge.
A federal judge has dismissed allegations that FCA offered payments to dealers in exchange for false sales, but the automaker still faces allegations of antitrust law violation and breach of contract, Bloomberg reports.
Volkswagen Dealers to Collect $1.85 Million Each as Owners Flock to Buyout Offer
Volkswagen AG is making nice with its once-ornery U.S. dealer network to the tune of $1.85 million per dealer.
The automaker announced details of its $1.21 billion dealer settlement late yesterday, Reuters reports, with cash payouts to its 652 dealers spread out over the next 18 months. Meanwhile, once-loyal Volkswagen owners have hopped on the buyout bandwagon in big numbers.
Cadillac President Will Pay Dealers to Disappear
If dealership owners spring for a recent offer by the president of Cadillac, expect to see a vastly reduced brand presence in towns and cities across the U.S.
Johan de Nysschen is offering 400 low-volume Cadillac dealers cash to close up shop and walk away, Automotive News reports.
Dealer Backlash Grows Against Cadillac's 'Project Pinnacle'
A dealer association in California is the latest group to go after Cadillac, demanding the automaker make changes to its controversial “Project Pinnacle” sales incentive program.
The California New Car Dealers Association, acting at the request of 52 dealers in that state, has sent a letter to General Motors CEO Mary Barra in a bid to delay (and alter) the project, Automotive News reports.
Volkswagen Dealer Payout Leaked; Automaker Plans to (Gasp!) Lower Its Prices
It didn’t take long for sources to squeal about the size of the settlement forged yesterday between Volkswagen and its ornery U.S. dealer network.
According to people familiar with the deal, 652 VW dealers will share about $1.2 billion to offset losses from unsold vehicles and sunk costs, Bloomberg reports. But cash is only one part of the company’s plan. The other involves its customers’ wallets.
Struggling U.S. Volkswagen Dealers Will Get Cold, Hard Cash
America’s Volkswagen dealers took the brunt of the automaker’s diesel emissions scandal, but a cash payout designed to ease their troubles is on the way.
Lawyers for the dealers, who were once poised to revolt against their employer, announced a tentative settlement deal with the automaker today, Reuters reports.
Borrowing Binge: Auto Loan Debt Hits a Record High
With memories of the 2008 financial meltdown still fresh, American consumers aren’t borrowing wildly anymore — except when it comes to cars and credit card purchases.
As of the end of June, car buyers racked up the highest auto loan debt in U.S. history — $1.1 trillion, according to a quarterly report from the Federal Reserve Bank of New York. Also on the rise? Credit risk.
Not so Hot Anymore: Fiat Chrysler Changes Sales Reporting Method, Ends Winning Streak
In response to media reports, a lawsuit, and federal investigations into potential sales figure tampering, Fiat Chrysler Automobiles is changing the way it records sales.
This means that the automaker’s much-touted 75-month sales streak is dead. FCA admits that under the new method, its year-over-year monthly sales gains ended in September 2013. Ad copy is likely being rewritten as you read this.
Want to Be an Authorized Ford GT Service Center? You'll Need to Pay Up
The 500 Ford GT supercars that will reach customers in 2017 and 2018 sold for more than $400,000, but the privilege of working on them comes at a premium, too.
Any dealer looking to become an authorized Ford GT service center will need to spend at least $30,000 to upgrade their operations, according to a document obtained by All Ford Mustangs.
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