#DealerNews

Last year, Ford announced its intent to develop a rewards program aimed at keeping customers engaged — while also making it worth their while to stick with the brand for their next purchase. While customer rewards are old hat, regardless of industry, automakers are busy devising new ways of using the venerable marketing theory to improve customer retention. It’s an urgent gambit, given today’s cooling market.

General Motors launched its “My GM Rewards” loyalty program in 2018, using a points-based system to reward customers who use OnStar’s new services, purchase a new vehicle, or service an older one. Those points can then be redeemed, knocking some cash off a subsequent GM purchase. Meanwhile, Honda previewed “Dream Drive” at the recent Consumer Electronics Show — a concept with its own redeemable points system (one that incorporates some potentially unsettling gamification within the app).

While Ford’s FordPass-based efforts appeared similar, it wasn’t until this month’s North American Dealers Association (NADA) meeting that the automaker was willing to flesh it out.

While the closing day of the 2019 National Automobile Dealers Association meetup revolved around charitable opportunities, engineering equality in the workplace, and a talk from author, pro golfer, and USAF veteran Major Dan Rooney on the merits of personal accountability, the rest of the event focused more directly on the auto industry.

One of the larger announcements came from Jack Hollis, general manager of Toyota North America’s Toyota division, who told dealers that his company intends to introduce 19 entirely new, redesigned, or refreshed vehicles over the next three years — focusing on utility models, but not ignoring cars. Toyota and Hollis are adamant that the brand can take advantage of other manufacturers abandoning sedan sales by both keeping them in its roster and continuing to improve them. Still, they acknowledge that SUVs and crossovers are essential in wrangling today’s buyers.

The secret, according to Toyota, is having a diverse lineup. However, pure electrics ( and maybe minivans) don’t make the list, at least until sales data makes a better case for them.

Cox Automotive, in conjunction with Automotive News, just released its Retail Brand Scorecards Study for 2018. The survey is interesting in that it ranks the perceived value of automakers by assessing how desirable they are to dealerships via an A-through-F grading system. Though, as engaging as it might be to look at these traits from a highly specific viewpoint (how dealerships see you in relation to specific manufacturers), we’re not sure how useful the average consumer will find them. Dealers and industry geeks, however, may want to take notice.

“This study represents a comprehensive review of brands from a unique perspective — how well they support the success of dealers,” said Cox Automotive Chief Economist Jonathan Smoke. “As we assembled the data and began to see how the brands performed differently, we started looking at the results as grades in high school, where the most well-rounded and high-achieving students are those who perform well across a wide range of disciplines. With that scorecard framework, we found a clear set of brands that are honor-roll worthy, as they are in essence the hardest-working, most successful students.”

Mitsubishi Motors burned up the newswires today in its haste to celebrate the opening of a new dealership in Cartersville, Georgia — which isn’t something you see every day. While hard to imagine for an OEM like Ford or GM, the press release fits with Mitsubishi’s short-term goal: a dealer network expansion in the U.S. and Canada, and greater dealer visibility.

We rag on Mitsubishi a lot; in many cases rightly so ( why do your driver’s seats wobble?), but the brand that courted death earlier this decade just wrapped up its best sales year since 2006. When you’re small, you celebrate the little things.

General Motors is readying another automotive subscription service after canceling “Book by Cadillac,” which was deemed too costly to keep operational, several months ago. However, whether that was due entirely to its own failures or related to the fact that the company is aggressively hunting for capital through its restructuring program is up for debate.

There were grumblings that the program’s complete lack of dealer involvement was a good way for Cadillac maximize profits (without sharing them). But, with it failing, it was also an excellent way to incur unnecessary costs. As a result, the brand intends to make its expansive dealer network an integral part of the fast-approaching “Book 2.o.”

On January 6th, local law enforcement reported that four kids enjoyed a night of destructive mayhem at a Houston-area CarMax dealership located in the 16100 block of the North Freeway. According to local reports, police were responding to a call where four young males were caught on video surveillance breaking into multiple vehicles. However, things got really interesting after officials learned the cars weren’t being stolen, but rather used to intentionally mangle other vehicles on the lot just for the thrill.

Police claim approximately $800,000 in damages after the group managed to intentionally wreck nearly two dozen automobiles. While none of the suspects’ names have been released, it’s probably safe to assume rowdy teens — mankind’s greatest foe — are to blame.

As the media obsessively focuses on the upcoming, mid-engined C8 Corvette, the C7 languishes. Vette sales exploded in 2014 following the release of the seventh-generation model, declining ever since. Chevrolet only sold 25,079 Corvettes domestically in 2017 and, even though year-end sales aren’t yet in, General Motors looks ready to fall short of last year’s volume for 2018.

While it is not abnormal to see the popularity of a high-profile sports car wane in the years following a debut, it’s slightly less common to see an automaker increase its price without adding some new hardware — and that’s what General Motors is doing with the Corvette in 2019.

Last week, a retired college professor walked into Missouri’s Coad Toyota with an interesting proposal. He was willing to part with five first-generation Toyota MR2s as a trade-in for a gently used 2016 Mazda MX-5 Miata.

Considering the amount of maintenance five vintage MR2s must require, maybe he’s not the absolute madman we initially presumed. Since the deal went down in Missouri, he probably spent a ludicrous portion of his time on rust prevention alone.

This time last year, Lincoln was busy promoting its Experience Centers — storefronts that promote the brand and its products, but don’t serve as active dealerships. Then, in August, it asked around 80 Ford/Lincoln dealerships to commit to building separate Lincoln-only facilities by July. It was an attempt to elevate the premium brand by making it appear more exclusive, akin to what Cadillac attempted with Project Pinnacle and what Hyundai Group wants to achieve with Genesis.

Unfortunately, all of these programs garnered a “mixed response” from dealers. Many complained that the cost of building a separate showroom for higher-end models is prohibitively expensive. That has also been the case with Lincoln. The California New Car Dealers Association even wrote Ford Motor Co. last month, asking it not to punish storefronts that fail to divide their facilities, and it looks as though the automaker has acquiesced.

As we explained earlier this year, the fledgling Genesis brand is going through puberty. The brand’s constantly evolving dealer strategy is now set in stone, or what passes for it in the world of Genesis, but the process of separating the brand from its Hyundai parent won’t take place overnight. There’s dealers to whittle down, licenses to gain, standalone stores to build, and inventory to stock.

It’s a work in progress, but the 2019 models — which now total three — are beginning to find their way to more buyers, Genesis claims. Be patient.

High-end sports cars are much more likely to endure the onslaught of time that inevitably forces most automobiles into the junkyard. Why such vehicles might not all serve as pampered automotive “investments” for wealthy individuals, most are still well cared for and subject to fewer harsh winters and daily commutes than their mainstream counterparts.

Porsche claims that over 70 percent of all vehicles it has ever manufactured are still in operation today and the majority of those cars reside in the United States, not Europe. As a result, the automaker wants to expand its Porsche Classic operations in the region — helping owners keep their vintage machines in pristine condition while earning dealerships some side cash in the process.

We’ve told you already that the upcoming Ford Ranger, which hits dealer lots in January, stands to become an endlessly customizable midsize pickup. Reports of options galore cropped up well ahead of the truck’s release.

Now, there’s more news on that front. While the usual factory add-ons will be part of any would-be Ranger owner’s buying decision, Ford doesn’t want those customers to look at another catalogue or website once the vehicle’s sitting in their driveway. The automaker wants buyers to get all of their outdoorsy aftermarket fittings from the dealer.

Dealership advisory firm Presidio Group has painted a very bleak picture for its clients. With analysts predicting a downturn in auto sales, the company recommends dealers establish a robust 20-year plan that will enable them to perform in the new climate or get out of the business entirely.

Brodie Cobb, founder of Presidio Group, cites a glut of studies claiming dealerships will struggle as manufacturers shift into mobility companies and alternative modes of transportation are more broadly encouraged.

“We’re not particularly pleased that the world is changing the way it is. We would rather have it stay the same, because owning dealerships is a very nice return and profitable business that we enjoy very much,” Cobb told Automotive News in an interview. “So when we talk about this, it hurts us, too. We, too, need to understand the future, form a plan and not just put our head in the sand and hope it goes away.”

National Automobile Dealers Association chairman Wes Lutz doesn’t have much time for critics who claim traditional car dealers don’t want to sell you an electric vehicle. As EVs boast fewer moving parts and lower running costs, green car advocates often say dealerships view the vehicles as a threat to a business model that relies heavily on service visits for profit.

Not so, says Lutz. The parts that do move are the ones they profit from.

The plan may as well carry the heading “Operation Don’t Leave Us.” As Ford dealers meet in Las Vegas, the automaker has shifted its focus from luring buyers from other brands to keeping Ford owners in the family.

Helping firm up that relationship are a series of “Built Ford Proud” ads poised to hit the airwaves this weekend, with Breaking Bad star Bryan Cranston serving as the brand’s spokesman. For dealers, product assurances top the most-wanted list. Apparently, they got them.