Hyundai creates digital dealership with Rockar

By Rebecca Chaplin

HYUNDAI will be collaborating with Rockar to open the first digital car retailer this November.

Figures show that customers visit a car dealership just 1.3 times before they purchase a car. Plus, 93 per cent of all new car buyers conduct their research online and only step on the forecourt when they wish to sign on the dotted line.

Rockar Hyundai claim their new system will integrate in-store, online and mobile platforms to deliver a car shopping experience unlike any other. They will open their first store in Bluewater shopping centre but also say that if a customer does not want to speak to a sales person they won’t have to.

Rockar Hyundai say they will provide car buyers with an all-encompassing online and in-store service that will allow them to research, test-drive and get a price for their old car. Then they can choose a how to pay, purchase and service their new car all at the touch of a button.

Tony Whitehorn, president and CEO of Hyundai Motor UK, said: ‘I am delighted to be able to announce today the launch of Rockar Hyundai in early November 2014. Rockar Hyundai is a highly innovative and enticing addition to our existing Dealer Network. It offers the consumers an easy and flexible alternative to buying and owning a car without undermining the strength and infrastructure within our existing sales network. It is unprecedented in the UK Automotive Industry and is the shape of things to come.

‘Hyundai UK is developing a more integrated approach towards the way we retail cars, reflecting the changing ways in which people shop and the use of technology in the retail environment. Rockar Hyundai is an integral part of this, and to our continuous commitment to delivering an outstanding customer experience across our entire business.’

Simon Dixon, founder of Rockar.com, said: ‘I have been working with a dedicated team on this exciting customer proposition for the last two years. It has been driven, not only by our automotive retail experience, but by extensive customer research and a deep understanding of the evolving retail environment.

‘It is clear from research that customers buying a new car can find it an intimidating process. Rockar’s vision is simple – to ensure that the Customer is truly at its heart and feels empowered throughout the process. I am delighted that Hyundai and Bluewater have had the foresight to partner with Rockar on this exciting retail journey.’

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Hyundai creates digital dealership with Rockar
Hyundai creates digital dealership with Rockar

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UK car production down in August

UK car production fell 22.1 per cent in August, SMMT figures reveal.

Just under 995,000 cars were built in the UK during the month – up one per cent on January to August 2013 but down compared to the rest of 2014.

The SMMT says that this fall led to some manufacturers taking additional holiday shutdown.

Mike Hawes, SMMT chief executive, said: ‘The month of August – typically the quietest of the year – saw a 22.1 per cent drop in car production over 2013 as the 2014 calendar meant some key plants took additional shutdown compared to last year.

‘Volumes are still strong for the year-to-date, however, with the UK automotive sector in the midst of a renaissance. Global demand for quality UK-built products is at an unprecedented level, with significant investments into UK production facilities from government and industry currently being realised.’

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UK car production down in August
UK car production down in August

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Car dealers threaten to take London fight to Ontario Municipal Board

By Norman DeBono,

London’s car war won’t be over any time soon.

Both sides in the automotive spat over where a new car dealership will be located pledged Thursday to take the battle to the Ontario Municipal Board if they lose an upcoming city council vote on the issue.

“If council refuses the application . . . it will be appealed to the OMB,” said Alan Patton, a lawyer with Patton Cormier Associations representing Competition Toyota.

The proposed dealership reflects sound planning, won’t have an adverse impact and wouldn’t cause a new $50-million auto mall in southeast London to close, Patton said.

Competition Toyota has applied to the city to build a dealership on a 1.5-hectare site at Fanshawe Park Rd. and Highbury Ave. to replace its existing location on Oxford St. E.

The proposal was defeated at planning and environment committee this week. City council will vote on the committee recommendation Sept. 30.

The city’s planning department supported the application at the committee meeting, setting off a furor among owners in the auto mall on Dundas St. E. at Crumlin Side Rd.

Those dealers said they wanted to locate on that same north London site about three years ago but were told by city planner John Fleming and then-mayor Joe Fontana the city wouldn’t allow auto development in the north, the committee heard.

The city wants three areas of auto concentration: South on Wharncliffe Rd., west at Oxford St. and Wonderland Rd. and east at Dundas St. E.

Mall owners are frustrated by the Competition Toyota application, fearing if council approves it, other dealers will follow, harming their investment.

“The city needs to understand others are already looking in that area. This will not be a one-off but become an auto alley,” said Brian Semkowski, president of Shrew Sports, which owns the mall and sold lots to dealers.

Auto mall owners will appeal if council approves Competition Toyota’s application, he said.

“They can’t do it for one and no one else. It’s very frustrating for us.”

City planning staff backed the Competition Toyota proposal because it involves only one dealer, not a 22-hectare site, Fleming said at the meeting. Comparing the two projects is “apples to oranges,” he said.

The Dundas auto mall is home to five dealers, including London City Chrysler, MacMaster Chevrolet, Leavens Volkswagen and London City Mazda. The mall has room for two more dealerships.

Competition Toyota owns 1.5 hectares in the mall area.

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Car dealers threaten to take London fight to Ontario Municipal Board
Car dealers threaten to take London fight to Ontario Municipal Board

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August auto sales reach an 11-year high

By Jerry Hirsch

Consumers streamed into auto dealers last month, pushing industry sales to their highest level for an August in 11 years.

Chrysler, Ford, Toyota, Honda, Nissan and Hyundai all posted gains while General Motors and Volkswagen saw sales slip, according to monthly figures reported Wednesday.

"It was a fabulous month for the industry," said John Krafcik, president of car shopping company TrueCar Inc. Automakers sold nearly 1.6 million vehicles in the U.S. in August, a 5.5% increase from the same period a year earlier, according to Autodata Corp. August sales surpassed last year's total.

Auto sales are on track to exceed 16 million this year for the first time since 2007, said Michael Ward, an analyst with investment house Sterne Agee. U.S. light-vehicle sales exceeded 16 million units every year from 1999 to 2007 but plummeted as the nation headed into the Great Recession.

Favorable lending rates, an improving economy and a large number of vehicles coming off leases are supporting demand for new vehicles, Ward said.

"The industry has a lot of momentum," said Bill Fay, Toyota's U.S. sales chief.

Consumer confidence is up, interest rates are stable and fuel prices have eased, setting up a "close to perfect" environment for sales, Fay said.

August sales also were pushed by dealers who need to clear out 2014 models before new models arrive, said Jessica Caldwell, an analyst with auto shopping company Edmunds.com.

"TV and radio airwaves are filled with these clearance deals, and they're helping to push hesitant car shoppers into 'buy now' mode," she said.

Sales over the holiday weekend helped.

"Our Labor Day sale was huge," said Beau Boeckmann, president of Galpin Motors Inc., which owns nine Southern California auto franchises, including Galpin Ford, the largest Ford dealer in the nation. "We were a little bit worried about the month, but it turned out to be really strong."

Car dealers are having their best year since the recession, Boeckmann said. Buyers are snapping up trucks, sport-utility vehicles and crossovers.

That trend helped Chrysler sell 198,379 vehicles in the U.S. last month for a 19.8% gain over the same month a year earlier.

Sales rose 45% at its Jeep brand, which sells only SUVs and crossovers. The automaker also logged a 33% gain in Ram pickup truck sales. It sold nearly 44,000 trucks and has dramatically narrowed the gap with the Chevrolet Silverado, which logged sales of about 49,000 pickups last month.

It was Chrysler's 53rd consecutive month of year-over-year sales gains.

"This is an impressive streak for a company that was all but left for dead five years ago," Caldwell said. "Chrysler has been able to keep it going by diving into the subprime [auto loan] market more aggressively than other automakers and by jumping into the leasing game."

General Motors, the nation's largest auto seller, bucked the trend, logging a small decrease in U.S. sales in August. The Detroit automaker said sales fell 1.2% last month to 272,423 vehicles, according to Autodata. It blamed a tough comparison with a strong August in 2013.

"We see a strong fall selling season ahead for GM and the industry," said Kurt McNeil, U.S. vice president of sales operations. "Car-buying fundamentals like employment and energy prices are in good shape, consumer confidence has reached a post-recession high, and business investment is increasing."

Toyota sold 246,100 vehicles in the U.S. last month, a record August for the automaker and a 6.3% gain from the same month a year earlier.

Honda sold 167,038 vehicles last month, a 0.4% increase, and scored a rare win over its Japanese rival Toyota. Honda's August results were led by the sale of more than 51,000 Accord sedans. That knocked Toyota's Camry off its perch as the bestselling passenger car in America, at least for the month. Toyota sold about 44,000 Camrys in August.

Still, the Camry is expected to finish the year as the top-selling car. Ford's F-Series pickup will be the best seller overall.

But despite robust truck and SUV sales, Ford's August total was more muted, up just 0.4% to 221,373 vehicles, Autodata reported. That was still its best August sales in eight years.

"All around it was just a very good month for the industry," said John Felice, Ford vice president, U.S. marketing, sales and service.

Nissan said it had U.S. sales of 134,388 vehicles, an increase of 11.5% over the prior year and an August record. Hyundai sales rose 5.9% to 70,003 last month. That was only the second month in its history in which Hyundai had sold more than 70,000 vehicles. It was also an August sales record for the South Korean automaker.

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August auto sales reach an 11-year high
August auto sales reach an 11-year high

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Dealers in Georgia petition to shut Tesla down

by: Amy Wilson

Auto dealers in Georgia are the latest seeking to shut down Tesla Motors’ factory-owned stores.

The Georgia Automobile Dealers Association filed a petition of enforcement Friday with state regulators arguing that Tesla’s direct-sales model violates state law. Tesla has one store in the Atlanta suburb of Marietta and is planning two more stores in metro Atlanta.

“It’s just very simple -- we want them to comply with the law the way others are,” Bill Morie, president of the Georgia dealers association, told Automotive News.

Tesla did not immediately respond to a request for comment.

Georgia joins a growing list of states where Tesla has tussled with dealers over whether the electric vehicle maker’s factory-owned stores violate state laws on direct sales. In some states recently, including Pennsylvania and New York, compromises were reached, allowing Tesla to operate factory stores but with a cap on the number of locations allowed.

In its petition, the Georgia dealers association is asking state regulators to prohibit Tesla from selling its vehicles, revoke the company’s existing dealer license and deny any attempt by Tesla to renew or reapply for a license.

The association suggests that Tesla improperly obtained the license by claiming that it qualified for a statutory exception allowing direct sales for makers of custom vehicles selling less than 150 a year.

Tesla does not qualify for the exception, the association argues, because it does not manufacture to custom design specifications and it is already selling more than 150 vehicles in Georgia a year.

“New-vehicle dealers just want a level playing field on which to complete,” Morie said. “No one should be allowed to act as if they are above the law, especially when there is a simple path to compliance that everyone else has agreed to follow.”

That path to compliance? Using a franchised dealer network like other manufacturers, an association spokesman said.

With generous tax breaks for EVs, Georgia is a market of growing importance for electric vehicle makers.

Based on percentage of retail registrations, Atlanta ranked as the No. 2 EV market among major metropolitan areas in the 12 months ending March 31, according to IHS Automotive.

Of all new vehicles registered in Atlanta, 2.15 percent were EVs, behind only San Francisco.

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Dealers in Georgia petition to shut Tesla down
Dealers in Georgia petition to shut Tesla down

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