Automotive News has interesting insight into the tenuous, and now soon-to-end, relationship between TrueCar and car dealer-giant AutoNation.
The report details a May lunch between TrueCar CEO Scott Painter, President John Krafcik and Senior Vice President of Dealer Development Mike Timmons, and AutoNation COO Bill Berman and Chief Marketing Officer Marc Cannon. At the lunch, TrueCar executives reportedly said they would require data from all AutoNation sales — regardless if they were generated by TrueCar — for the two companies to continue doing business.
“Over my dead body,” AutoNation CEO Mike Jackson said later, according to Automotive News.
Car dealerships may be forced to pay some of their employees more under new overtime rules proposed by President Barack Obama, Automotive News is reporting.
The proposed overhaul for employees who make less than $50,000 a year could impact dealers who make a significant portion of their earnings from salary, rather than commission.
The suggested overtime rules would apply to roughly 40 percent of the American workforce, rather than the 8 percent the current rules apply to now. The Department of Labor estimates more than 5 million workers would be covered by the new rules.
Details between the AutoNation and TrueCar split are becoming clear, Automotive News is reporting.
After yesterday’s announcement that the web service and nationwide dealership chain were splitting up — in which AutoNation laid most of the blame on unreasonable demands by TrueCar during contract negotiations — the company’s respective CEOs have been getting nasty.
“Our partnership with AutoNation just turned into, in a very real sense, a choice for the consumer,” TrueCar CEO Scott Painter told Automotive News. “It really makes them our competition.”
The Detroit Bureau is reporting that even though June was a record sales month for many automakers, many of those sales were partly fueled with record incentives from the manufacturer.
Buyers could get up to $8,000 knocked of the price of a Kia K900 or up to $7,000 off of Ford hybrids or electric cars — even $8,000 for the 2015 Ford C-Max Energi.
I grew up in the back of two-door family cars ranging from a ’67 Camaro to an ’83 Civic 1500 “S”. It never seemed like a hardship to me. Nor does it seem like a hardship to have my six-year-old son in the back of my Accord Coupe. He knows how to let himself in and out of the back seat. It’s no different from having a four-door sedan and letting him out of the back door. Ninety-nine percent of the time I don’t even think about it.
The other one percent of the time is when I clean the interior of the car. It takes the strength of Hercules and the flexibility of a Cirque du Soleil headliner to get the explosion of fast food, Legos, school paperwork, and miscellaneous unidentifiable items out of the cave behind the front seats. And then I have to condition the leather, you see, which would work better if my arms were between six and eighteen inches longer. So having done all that this past Sunday, I figured I’d do my other least favorite job: brake dust removal. I was already in a bit of a bad mood, crouching next to my Griot’s Garage bucket and shaking out my favorite horse-hair wheel brush, when I saw it.
Oh, hell no.
I come to bury Derek Kreindler, not to praise him.
I come to praise Derek, not to bury him.
I come to agree with Derek, and to disagree with him. And to agree with him again. Wait a minute, it will make sense.
In a move that that will be mourned by…well, I am not sure by who, the lone surviving Cadillac retailer in England has closed its doors. English trade journal Car Dealer Magazine reports that dealership Bauer Millett in Manchester shut down just before Christmas. Citing the high cost of doing business and increased competition, owner Mitch Millet also gave up his Alfa Romeo, Abarth, Jeep and Chrysler franchises.
It is not our intention to pile on poor Cadillac after our recent discussion, but comments made last week by the automaker’s marketing manager Ewe Ellinghaus must be noted. Speaking to Advertising Age, he repeated the new company mantra about the carmaker becoming a “the first luxury brand that happens to make cars,” and then added:
“When I recruit new people, I don’t need petrolheads. We have more than enough petrolheads and we will still. I need people with experiences in other industries, but with luxury brands.”
We must assume that Ellinghaus, most recently with Montblanc pens and formerly with BMW, was using the European term equivalent to what we call a “car guy” or “car gal.” If so, Cadillac’s future is as bleak as the B&B thinks it is, and not just because of products. (Read More…)
In an unprecedented move that has sent chills down the white-belted spines of American car dealers, General Motors has declared nearly 1,000 of its 4,355 US retailers as “unfit and downright dangerous” to its customers and will be recalled immediately.
Dodge dealers wanting to help their customers destroy wannabes with the 2015 Challenger SRT Hellcat will themselves need to prove their worth to the brand before a single car leaves the carrier.