Entering International Markets: Analysis, Partnerships, Different Strategies

Automotive marketers tend to have a U.S.-centric focus in developing plans and programs even though many are working for multinationals operating in a global economy, according to a panel of auto marketers who presented some international strategies and who discussed what they have learned about international marketing at the recent 2012 J.D. Power Automotive Marketing Roundtable in Las Vegas, NV.

It’s important that a company be very selective when choosing new international markets for entry, which requires conducting analysis to find where good markets are; evaluating the value proposition for each region; and finding partners that your company can work with who understand the culture of that market.

Panelists from four independent automotive websites and a multi-franchise automaker also said it’s crucial to tailor the marketing message to the particular market you are entering, rather than just translating your current marketing message to another language. Continue reading ›

Alliance with NADA Provides Key Benefits for Dealers and Automakers

 

Matthew Racho

We expect this alliance to have a very positive effect for dealers, manufacturers, and our industry. The alliance will allow for increased dealer participation across the U.S., providing deeper penetration into retail transactions across all markets, and enabling more extensive regional and local market analysis.

With over 20 years’ experience . . . Continue Reading Alliance with NADA Provides Key Benefits for Dealers and Automakers

Automotive Landscape for OEMs, Dealers Remains a Little Bumpy but Bright

2012 International Automotive Roundtable Panel with Moderator Mike Jackson (right), AutoNation CEO and Chairman

Sales and marketing officials from General Motors Co., Fiat-Chrysler and Hyundai Groups joined NADA’s 2011 chairman and presented their viewpoints of important issues and answered questions during a panel discussion at the 2012 J.D. Power International Automotive Roundtable earlier this month.

The following three posts include excerpts from a Q&A session about dealer allocation, fleet sales, leasing and more led by panel moderator Mike Jackson, chairman and CEO of AutoNation, the largest public automotive retailer in the United States.

Panel Members:

Alan Batey —Vice President, Chevrolet Sales and Service, General Motors Company

Reid A. Bigland —President & CEO, Dodge Car Brand & Head of U.S. Sales/President and CEO, Chrysler Canada, Chrysler Group LLC

Stephen W. Wade —President, Stephen Wade Auto Center and 2011 Chairman, National Automobile Dealers Association (NADA)

Dave Zuchowski —Executive Vice President, National Sales, Hyundai Motor America

 Product Allocation Needs to Be as Equitable as Possible

Q: Mike Jackson: Does the panel believe that the manufacturer should limit the number of cars a single franchise can receive—a cap on quantity in any given market?

Dave: We look at it a different way because of our shortages. We’ve had dealers ask: Shouldn’t there be a minimum stocking effort so we have critical mass to represent the line? That’s something we are looking at. In terms of capping dealer availability, it works against the turn system. Continue reading ›

“Retail 3.0” Presents Wider, Tougher Landscape for Dealers

Aimee Canlas

The future of automotive retailing is being shaped by evolving consumer needs and by changing technology, spurred by the increasing adoption of mobile devices in addition to the entry of younger consumers into the market, suggests John Humphrey, J.D. Power’s senior vice president of global automotive operations.

Humphrey discussed both opportunities and challenges that will face automotive retailers now and in the future during his global automotive outlook that kicked off our 2012 International Automotive Roundtable held at the Wynn Hotel in Las Vegas last week.

He pointed out that the proportion of Generation X and Generation Y vehicle buyers* in the U.S. market has been steadily increasing since 2000, and is expected to reach 42% of the market in 2015. These two demographic groups display characteristics that may make it particularly challenging for dealers to build customer relationships, loyalty and retention. Continue reading ›

European Output in North America Climbs the Most from 2010

Through the first 8 months of 2011, light-vehicle output in North America climbed 8% from a year ago, to 8.5 million units. The Detroit-based automakers ramped up their production by 16%, while the Japanese automakers lost 8% due to shortages of parts following the March 11 earthquake in Japan. Output for the European OEMs climbed by 38% from a year ago, with the added production of the BMW X3 and Volkswagen Passat in North America. Demand for the new VW Jetta has also boosted European output. Continue reading ›

September US Retail Light-Vehicle Sales Show Surprising Strength

Jeff Schuster

Solid Labor Day sales in the first week of September and stronger-than-expected retail sales during the second week of the month boosted US retail light-vehicle sales in the first half of September to much stronger levels than in the prior month of August, despite continued anxiety about the US and European economies and stock market volatility.

Sales were primed by recovering inventory levels bringing buyers back to dealer showrooms. In news reports, Toyota Group said its production was back to 100% after setbacks following the March 11 earthquake and tsunami in Japan. However, it should be noted that the retail sales pace in the second half of September may give up some of the month’s early strength as the economy remains a concern. In addition, J.D. Power analysis indicates that incentive levels remain flat compared with August. Continue reading ›

North American Production to Rise 38% by Year End

North American automobile production is on target to end the 2010 calendar year at 11.8 million units—up 38% from 8.5 million units in 2009, according to J.D. Power and Associates. In addition, the company’s Automotive Forecasting Division analysts project that production in North America will increase by 7% next year, to 12.6 million units.

. . . Continue Reading North American Production to Rise 38% by Year End