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AutoDealer
S P R I N G 2 012 • W W W. A I A DA .O R G
MUNGENAST
AT THE HELM
AIADA’S 2012 CHAIRMAN
IS CHAMPIONING A
LEGACY OF LEADERSHIP
Also Inside:
Dealer Advocates Raise Their Voices
Q&A with Mercedes-Benz
USA’s Steve Cannon
Kia’s Strategy for Growth
®
TM
AutoDealer
S PR I N G 2 012 • VO L . 6, N O. 2
14
11
19
F E AT U R E S
D E PA R T M E N T S
COLUMNS
11|Embracing the Future: MercedesBenz USA’s Steve Cannon Talks
Cars, Dealers, and Football
4|From the Chairman’s Desk
23 |
Dealer Spotlight
5 | In the News:
What Trade Agreement
Means for Growth
Lisa Warner Pickrum, RLJ
McLarty Landers Automotive
Obama’s Class-Warfare,
Tax-the-Rich Budget
Gary Micallef, Hyundai of Everett
8 |
View from the Hill:
Forecast: Gridlock
14|A Legacy of Leadership: Dealers
Usher in 2012 at 42nd Annual
Meeting and Luncheon
19|The Winning Play: With Its
Design, Marketing, and Dealer
Savvy, Kia is Proving it Has
What it Takes to Succeed
26 | The Final Word
9 |
Dealer Involvement:
The Dealer Voice
AIADA BOARD OF DIRECTORS
The Magazine of the
®
PRESI DENT
Cody Lusk
V ICE PRESI DEN T OF P U B L I C
& I NDUSTRY REL ATI ONS
Libby Newman
PRODUCTI ON E DI TOR
Hannah Oliver
D ESI GN CON SU LTA NT
Larnish & Associates
C ON TRI BUTI N G W R I TE R S/
PHOTOGRAPHE R S
Marty Bernstein, Rachel Robinson,
Shannon Scott
For more information about AIADA, topics
addressed in this issue, or for additional copies of
AutoDealer, please contact AIADA Publications at
[email protected] or 1-800-GO-AIADA.
Mr. Ray Mungenast
Lexus of St. Louis,
Chairman
Ms. Jenell Ross
Ross Motor Cars,
Chairwoman Elect
Mr. Larry Kull
Burns Kull Automotive,
Vice Chairman
Mr. Jim Smail
Smail Auto Group,
Immediate Past Chairman
Mr. Greg Kaminsky
Toyota of El Cajon,
Secretary/Treasurer
Mr. George Brochick
Penske Automotive Group, Inc.
Mr. Dave Conant
The CAR Group
Ms. Lisa Pickrum
RLJ Companies, LLC
Mr. Jack Fitzgerald
Fitzgerald Auto Malls
Ms. Peggy Proko
Peters of Nashua
Mr. Howard Hakes
Hitchcock Automotive
Resources
Mr. Paul Ritchie
Hagerstown Honda
Mr. Don Herring
Don Herring Mitsubishi
Mr. Brad Hoffman
Hoffman Auto Group
Mr. Jim Hudson
Jim Hudson Auto Group
Mr. Robert V. Rohrman
Bob Rohrman Auto Group
Mr. Brad Strong
Strong Volkswagen
Mr. Morrie Wagener
Morrie’s Imports
Mr. Jeff Morrill
Planet Subaru
SPRING 2012 | AutoDealer
3
®
From the Chairman’s Desk
S
pring, and the warm weather and new growth that accompanies it, has always
been celebrated in this country. It is a time for fresh starts and renewal of old
commitments. It is a time to air out stale spaces and begin new projects. Above
all, it is a reminder that there is always room to grow and new opportunities
to embrace.
For dealers, spring is all that and more. Traditionally, it is when we get the first solid
sense of how the sales year will pan out. Conventional wisdom tells us that if customers
don’t buy when the weather warms up, they’re probably not going to buy at all.
As small business owners, we welcome the opportunities spring brings, but we also
recognize that it is a demanding season, and how we handle it will set the tone for the rest
of the year. In the spring of 2012, dealers have more than sales to worry about. As I said
during my induction as chairman in February (see page 14), 2012 will be a watershed year
for business in this country. The outcome of this year’s election will determine both the
immediate and long-term future of America’s small businesses — establishing once and for
all if we are a country that benefits from business or one that punishes entrepreneurship.
A dealer’s to-do list is never done, but I learned long ago that some things must take precedence over the day-to-day responsibilities of running a business. One of them is securing the future of that business. As a member of AIADA, you are already working toward that
goal, supporting a group that protects and advocates on your behalf in Washington, D.C.
Now is the time to take that involvement to the next level. Please join me and some
of the nation’s most influential dealers, along with manufacturing executives, political
pundits, and members of Congress in Washington, D.C., on May 23 and 24 for AIADA’s
6th Annual International Auto Industry Summit. See the inside page of this magazine for
registration details. The Summit, and the connections you will make there and on Capitol
Hill, will prove invaluable in 2012, and beyond. Register today and make the commitment
to work to secure a bright future for your business, your family, and your employees.
I hope to see you this spring in Washington, D.C.
Ray Mungenast
AIADA CHAIRMAN
4
AutoDealer | SPRING 2012
The American International Automobile Dealers Association is the only
national lobbying force in the United
States dedicated exclusively to the
economic and political interests of
America’s international nameplate
automobile dealers. AIADA was
founded in 1970 in order to increase
awareness of the international nameplate automobile industry’s value
to the U.S. economy. The association serves as an advocate for the
industry before Congress, the White
House, and federal agencies. It
focuses its lobbying efforts on trade
and anti-competitive restrictions that
limit the availability of international
nameplate automobiles, full repeal
of the Death Tax and other tax measures, affordable health care, labor
issues, energy, fuel economy policies
that constrict consumer choice, and
other industry-related matters.
AIADA Affinity Partners
IN THE NEWS
What Trade Agreement
Means for Growth
By Mark Kennedy, Tim Penny,
and Steve Sanger
W
hile much of Washington, D.C., is fiddling
with further extending
“temporary” measures
to stabilize employment, one of the most promising and proven
paths to job creation and sustained economic
growth is well underway, while drawing little
public attention in the United States.
A new free trade agreement, the Trans
Pacif ic Par t nership (TPP), is current ly
being negotiated among nine countries of
the Asian-Pacific Rim, including Australia,
Brunei Darussalam, Chile, Malaysia, New
Zealand, Peru, Singapore, Vietnam, and the
United States.
President Obama announced U.S. participation in the talks in 2009 as part of a larger
effort by his administration to increase the
U.S. commercial and strategic engagement
in the region. On Nov. 12, 2011, the nine partnership countries announced the framework
of an agreement that negotiators will push to
finalize by the end of this year.
At a time when America is still struggling
with a weak recovery and Europe is staggering under the weight of its sovereign debt crisis, the United States can and should make
every effort to strengthen new export markets
for our goods and services. The region represents more than 40 percent of global trade
and, as a group, the countries are the fourthlargest goods and services export market of
the United States, according to the U.S. Trade
Representative’s office.
While the opportunities are great, the economic cost of inaction or allowing the partnership to founder in an election year also is great.
U.S. exports to the Asia-Pacific region increased
63 percent from 2004 to 2009, but we lost 3 percent of our share of regional trade to our competitors during the same period, according to
the U.S. Trade Representative’s office.
This region also is a growing export market
for Minnesota. In the third quarter of 2011,
the Minnesota Trade Office reported that
Minnesota’s exports to the Australia-Pacific
region increased 14 percent, or by $138 million, over the previous year. And exports to
Singapore, which is now Minnesota’s ninthlargest export market, were up 12 percent.
We need to recognize that economic integration in the Asian-Pacific Rim is going to
accelerate with or without us.
The Trans Pacific Partnership is important
to the United States for several reasons. First,
we need to continue to lower trade barriers in
growing Asian and Latin American markets so
we can increase our exports to those regions.
The partnership provides an important legal
framework for reducing tariffs, protecting
intellectual property, streamlining regulations for entry, labor, and health and safety
standards. This will significantly improve
efficiency and make U.S. companies more
competitive in the global economy.
Second, the drivers of growth in the Pacific
Rim are changing. As emerging economies
mature, their growth becomes more dependent on domestic consumption and less
reliant on exports. As a result, there will be
increased demand for the advanced products
and services, industries where the United
States excels. The TPP will ensure that American companies will have the opportunity to
compete on a level playing field with stateowned companies in the region.
Finally, the region will serve as a powerful
incentive for China to embrace more open
trade and go beyond the minimal obligations
to lower trade barriers and protect intellectual
property it agreed to when it became a member of the World Trade Organization.
Although the partnership is a significant
step in accelerating free trade around the
world, it could be strengthened if other major
Pacific Rim countries also signed on. Three
of the largest U.S. trading partners, Canada,
Mexico, and Japan, have all expressed interest
in joining the process and it is in our interest
to bring them into the fold.
As we saw recently with Canada’s bilateral
agreement to sell its oil to China, if America
doesn’t expand our trading relationships,
other countries will seek separate agreements
that might be harmful to U.S. economic and
strategic interests.
Some U.S. manufacturing and labor groups
have expressed concern about broadening the
agreement, particularly because of Japan’s
significant trade barriers in the auto and
agriculture sectors. If such concerns can be
reasonably addressed, however, it would create new markets for industries long closed to
U.S. exports and would only strengthen the
regional trade block.
By reducing trade barriers and expanding export opportunities for U.S. companies,
the Trans Pacific Partnership will create jobs,
strengthen our ties with important allies and
help raise the standard of living throughout
the Pacific Rim. AD
Mark Kennedy, Tim Penny, and Steve
Sanger are co-founders of the Economic Club
of Minnesota. Kennedy and Penny are former
Minnesota Congressmen; Sanger is former
chairman and CEO, General Mills Inc.
This article originally appeared on February 26, 2012 in the Minneapolis Star-Tribune.
Reprinted with permission.
SPRING 2012 | AutoDealer
5
IN THE NEWS
Obama’s Class-Warfare,
Tax-the-Rich Budget
By Larry Kudlow, The Daily Caller
I
f you shake out the Obama budget in
terms of bold headlines, it’s really a classwarfare, tax-the-rich budget. Layer upon
layer of tax hikes are piled on successful
investors, small business owners, and
corporations.
The capital gains tax goes from 15 percent to 24 percent (including Obamacare).
The dividends tax goes from 15 percent to
nearly 40 percent, and that’s not including
the double tax on corporate profits embodied
in dividends and capital gains. The Bush tax
cuts for top earners are repealed. There’s the
30 percent Buffett Rule minimum tax on millionaires. The carried interest tax for private
equity, hedge funds, and other investment
partnerships goes from 15 to 39.6 percent.
The estate tax jumps to 45 percent. State and
local bond interest deductions are severely
limited. Oil and gas companies get hit. So
do banks. And there’s probably more stuff
in there I haven’t read yet. Paul Ryan’s press
release calls it a $1.9 trillion tax hike, with $47
trillion in government spending over the next
decade and the fourth straight year of trilliondollar deficits.
Some kind of corporate tax reform may be
released in a few weeks. But we don’t know
much about it. And while it may lower the top
rate, it’s going to penalize U.S. firms operating
abroad by roughly $150 billion in tax hikes. All
in, the Obama budget raises corporate taxes
by $350 billion. Just what business does not
want or need.
Former Bush economist Keith Hennessey
estimates that new proposals would create
a ratio of at least 1.2 dollars of tax increases
for every dollar cut in spending. Most of the
spending cuts would slam Medicare doctors and other health providers. Unlikely to
happen. And there is no overall entitlement
reform. Somehow the Obama budget is being
offered as a substitute for the $1.2 trillion in
spending cuts from the super committee.
But the slam down in defense remains a huge
problem.
There is no $4 trillion in new deficit savings, because $1.2 trillion was already scored
by the Super Committee. Plus, another $1 trillion was already counted as savings from the
wind-downs in Afghanistan and Iraq. And
$800 billion comes from interest savings, not
program cuts.
So maybe there’s $1 trillion in spending
reductions over 10 years. But as the details
trickle out, that’s a big maybe. Compare that
to $47 trillion of total spending increases and
at least $1.5 trillion of tax hikes.
The deficit for the coming year, which is
$1.3 trillion, would be 8.5 percent of GDP.
More important, budget spending remains
at over 24 percent of GDP. Debt held by the
public for 2013 would be $12.7 trillion, or 77.4
percent of GDP. In terms of 10-year totals,
spending would rise by $47 trillion and deficits by $6.7 trillion.
Really, this is a budget that says we must
raise taxes in order to raise spending. It’s a 1
percent vs. 99 percent budget. But if these tax
hikes ever went through, it would be a 100
percent whack at future economic growth.
Obama chief of staff Jack Lew was wrong
on Sunday [February 12] to suggest that a budget passed in the Senate requires 60 votes. By
law, budget reconciliation requires only 51
votes. But this budget is dead on arrival. All
the Republicans and many of the Democrats
are not going to vote for across-the-board tax
hikes. That’s a good thing.
But the question now is: What happens
next? The U.S. is in a heap of fiscal trouble — on the verge of bankruptcy. What are
we going to do about it? AD
Larry Kudlow is the host of CNBC’s “The
Kudlow Report.”
This article originally appeared at The
Daily Caller on February 14, 2012. Reprinted
with permission.
6
AutoDealer | SPRING 2012
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Visit www.federatedinsurance.com to find
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VIEW FROM THE HILL
Forecast: Gridlock
Dealers Can Expect Legislative Stalemate This Election Year
E
lection year politics, new trade
agreements, controversial recess
appointments, and legislative
congestion are adding up to an
interesting — and even frustrating — spring in the nation’s capital. As always,
AIADA is on the front lines to protect the interests of America’s international nameplate auto
retail industry.
as the “Ambush Election Rule,” the NLRB resolution of disapproval to prevent an agency
believes it will reduce unnecessary litigation from enforcing a rule. The House followed suit
and delays.
when Representatives John Kline (R-Minn.),
Several business groups, including AIADA Phil Roe (R-Tenn.), and Phil Gingrey (R-Ga.)
have taken issue with the rule. The U.S. introduced a similar resolution. AIADA supChamber of Commerce and the Coalition for ports both resolutions.
a Democratic Workplace — of which AIADA
At the time of publication, Congress is
is a member — filed a suit in federal court to back in session, and President Obama has
block the rule on the grounds that it violates presented his State of the Union address and
the National Labor Relations Act, the Admin- budget to Congress. However, it appears that
TPP Heats Up
istrative Procedures Act, the Regulatory Flex- Washington is in for a logjam this election year
Anti-international rhetoric has ratcheted ibility Act, as well as free speech.
as both sides carry on their partisan rhetoric.
up considerably in recent months. Japan has
The same week the rule was adopted, Sena- AIADA will continue to spread its message of
continued its efforts to join the Trans-Pacific tors Mike Enzi (R-Wyo.) and Johnny Isakson free trade, lower taxes, and less government
Partnership (TPP), which is currently being (R-Ga.) introduced a resolution challenging regulation in the interest of securing a positive
negotiated between the U.S. and nine partici- the rule under the Congressional Review Act, environment for today’s international namepating Pacific Rim countries. AIADA recently which allows Congress to introduce a joint plate auto dealers. AD
submitted comments to the Office of the United
States Trade Representative (USTR) concerning
Japan’s stated interest in joining the TPP.
During a recent hearing, Deputy United
States Trade Representative Demetrios MaranAccording to the Constitution, the Senate must confirm all
tis emphasized that the U.S. would only allow
presidential nominees for federal offices. However, the president
Japan to enter TPP negotiations if it is willing
can bypass that rule by making an appointment during a Senate
and prepared meet the high standards set
recess period. This is known as a “recess appointment.” Presidents
within the agreement. Japan’s inclusion in the
typically utilize this option if it looks very unlikely the nominee will
TPP is an issue that greatly impacts internagarner the 60 votes needed to beat a filibuster.
tional auto dealers, and AIADA will continue
to keep tabs on its status.
What is a Recess Appointment?
NLRB Tactics Continue
Labor issues continue to make waves in
Washington this spring. In January, President
Obama made several controversial “recess
appointments,” ignoring the fact that the Senate was still holding pro forma meetings. Three
of his appointees filled spots on the National
Labor Relations Board (NLRB) — Sharon Block,
Terrence Flynn, and Richard Griffin. With all
five seats filled, the NLRB is once again operating at full power.
T he ter m of N L R B Cha i r ma n Cra ig
Becker — one of President Obama’s previous
recess appointees — expired in December.
Dealers will recall that prior to his departure,
the board rushed to adopt its final rule amending union election case procedures. Known
8
AutoDealer | SPRING 2012
What is a Pro Forma Session?
The U.S. Senate defines a pro forma session as “a brief
meeting of the Senate (sometimes only a few minutes
in duration).”*
When President Obama invoked his presidential recess
appointment privilege on January 4, the Senate was
still holding pro forma meetings every three days
during their holiday break in an effort by Republican
leaders to prevent him from making such appointments.
*www.senate.gov
DE ALER INVOLVEMENT
The Dealer Voice:
More Important Than Ever
S
o far in 2012, sales and job creation
figures paint a positive picture for
the international nameplate auto
industry. While the industry is
recovering and moving forward,
dealers cannot afford to become complacent
and lose attention to events happening on
Capitol Hill and in Washington.
The Detroit Three and United Auto Workers (UAW) are doing all they can to undermine the international auto retail industry
and hinder its success. Their targets include
YOUR business. A fundamental part of their
strategy includes persuading a Congress
and an administration that is enamored
with “Made in America” rhetoric.
This is where international nameplate
dealers play a pivotal role. As a dealer, YOUR
voice is the one Congress wants to hear.
Dealers must possess the tools to make their
voices heard effectively in Washington. Begin
by attending AIADA’s 6th Annual International Auto Industry Summit on May 23
and 24 in Washington, D.C. This grassrootsfocused event is an exceptional opportunity
for dealers to arm themselves with the information and skills to take their business concerns directly to their members of Congress.
On Thursday afternoon of the Summit,
AIADA’s Legislative Action Network (L.A.N.)
will focus its efforts on meetings on Capitol
Hill between Congressional members, their
staff, and AIADA dealer advocates. With so
many auto-industry related issues — such
as free trade, taxes, and the economy — at
the forefront of Washington, AIADA needs
3 Ways You Can Raise Your Voice
1 Join the L.A.N.
2 Register and attend AIADA’s 6th
Annual International Auto Industry
Summit on May 23 – 24
3 Request a meeting with your
member of Congress
YOU, our trusted dealer advocates, to build
relationships with your members of Congress and engage them on these and other
key issues.
Upon registering for the Summit,
AIADA will assist you in setting up a meeting with your Congressional members and
provide you with the knowledge and talking points needed to speak authoritatively
on the issues that matter to your business
and employees. Visit www.AIADA.org/events
and select the option on the registration form
to meet with your elected officials. AIADA
will contact you to get the ball rolling.
Don’t wait. Seize the chance to make
your voice heard by registering today for
the 6th Annual International Auto Industry Summit. If you haven’t already done so,
now is also a good time to become an active
member of the L.A.N. It is the best way to
stay connected and know what your members of Congress are doing to help or harm
your business. AD
The dealer voice is the most effective at combating
potentially harmful legislation and policy.
SPRING 2012 | AutoDealer
9
EMBRACING THE
FUTURE
MERCEDES-BENZ USA’S STEVE CANNON
TALKS CARS, DEALERS, AND FOOTBALL
BY AIADA STAFF
E
arly this year, Steve Cannon
took charge of Mercedes-Benz
USA. As one who has served
with Mercedes-Benz in various capacities since 1991, he is
well versed on how to move the luxury
automaker forward in the competitive
U.S. luxury auto market.
Cannon recently spoke with AIADA to
discuss the role the U.S. market plays in
Mercedes-Benz, the automaker’s relationship with its dealers, and how it is paving
new marketing ground with its sponsorship of the Louisiana Superdome.
The auto industry has been
impacted heavily by economic
conditions over the past few years.
How do you think they impacted
the luxury segment? Did they
change the way Mercedes-Benz
operates?
That’s certainly a huge question. We’ve
all been heavily impacted by it. It’s the
worst downturn that the auto industry
has ever seen and left a huge imprint on
the psyche of consumers. We saw a dramatic loss of wealth with trillions erased.
Most of that has been recouped.
continued on page 12
Cannon says the U.S. market is “the most
important now and will remain one, if not THE
most important, for the next several years.”
SPRING 2012 | AutoDealer
11
“We’ve been on a phenomenal roll
with new products,” says Cannon.
One of them is the SL Roadster.
continued from page 11
The good news is that it feels better now than it did in 2009.
Back then, there was a lot of impact; consumers were caught off
guard. They were caught off guard with too many bills. But one of
the things we’ve seen from our customers is that folks have kind
of embraced this post-recession era. They’re taking responsibility
and scrutinizing their bills. The savings rate has increased significantly. They’ve been shocked and responded to it by rationalizing
their expenses along the lines of fewer, better things. [Luxury buyers] felt extremely exposed and have spent the past couple of years
limiting the exposure.
The overall impact on Mercedes-Benz was that, as a company,
we went through a painful market correction that forced us to
correct our own business. The mantra for us inside the company
is that “a crisis is a terrible thing to waste.” We used that time to
cut through old business practices that might have been nice when
everything was rosy, but when we asked the critical questions, the
answer was no. We parted ways with some of those practices.
Our dealers have become better businessmen. As the market has
rebounded, they are in a much better position because they’ve taken
costs out that they don’t need and been able to make more money.
Mercedes-Benz celebrated its 125th year in 2011. Can
you explain the role the U.S. auto market has played in
the brand’s long-term success? What role do you expect
it will play in the coming years?
The U.S. market is the number one market for Mercedes-Benz
and Daimler globally. There is a lot of growth in other BRIC markets. China is coming up in the rear view mirror. For now, the U.S.
is the most important global market.
Beyond that, it’s the heart of the entertainment industry and pop
culture. How our brand fits in is very important and that finds its
way across the globe. A perfect example is that Mercedes-Benz is the
number one product placement brand in Hollywood. It shows up in
more shows and movies that are exported globally. It is a car of celebrity and pop culture that is more global than ever before. That plays
into the reception of the brand — not just here, but everywhere else.
In the coming years, the importance of the market isn’t going
to diminish. We are still growing. I’ve seen projections that put the
U.S. population over 336 million by 2020. We have Gen Y coming
up, and they are 75 million strong. We have an enormous wave of
12
AutoDealer | SPRING 2012
influential buyers who are just at our doorstep now. It will have a
huge impact on our overall success. It [the U.S. market] is the most
important now and will remain one, if not THE most important,
for the next several years.
Tell us how your dealer base factors into your future
plans. Do you plan to expand your CustomerONE
training program as part of your strategy?
Dealers absolutely are. Without the dealers, our plans don’t
make sense. An active, engaged, and profitable dealer base is the
foundation on which all plans will be built. The relationship we
have with our dealers is at a 21-year high. They believe in the brand
and the current and future value of the franchise. It’s as good as it’s
ever been. We are going to use that as fuel to continue our growth
strategy in the U.S.
Our “Customer Driven to Lead” training program will touch
10,000 customer-facing personnel. It is one of our most ambitious
training programs ever, and it’s only our first step. Our focus will
be aimed at delivering a best in customer experience. Our customers will be regularly delighted with what they receive from the
Mercedes-Benz brand. That’s our focus.
What changes and new products should dealers expect
to see in the coming months and years as Mercedes-Benz
makes its play for number one?
We’ve been on a phenomenal roll with new products. Last year,
we launched five new products in a year. This year, we’re launching
the SL Roadster, GL, and the GLK facelift (including GLK diesel), as
well as an E-400 Hybrid. On the telematics side, we just announced
mbrace2 at CES — our latest offering featuring internet and remote
capabilities — all updatable via cloud-based networks.
In our pipeline over the next several years, we’re going to be
looking at a significant expansion of our portfolio. Next year marks
the addition of a new entry point for the brand under the C-Class.
We are going to be making the brand more accessible. That’s a huge
step for this company.
There will be four new models, the first arriving in 2013 and the
others each year thereafter. These vehicles will be: a small fourdoor coupe, a crossover, a five-door coupe based on the A-Class
platform, and a five-door coupe based on the B-Class (alternative
powertrain).
The E-400 Hybrid is one of the vehicles
Mercedes-Benz is launching this year.
Last summer, Mercedes-Benz opened a company-owned
flagship showroom on New York’s 11th Avenue. How has
business been so far, and what are your hopes for that
store in the future?
The store in Manhattan is one of the top stores in the country.
For a lot of people, New York is the capital of the world and brands
like ours need to be present and have flagship stores. We say, ‘In
Manhattan, luxury has a new address.’
For our dealer body, we’ve walked the talk. We’ve pushed them
hard over the past three years to update their facilities. We are practicing what we preach with a state-of-the-art Autohaus investment
directly in Manhattan.
More than 300 of Mercedes-Benz dealerships have
implemented the Autohaus design into their dealerships.
What was the purpose of the Autohaus program, and
how is it being received by customers?
So far, 312, or more than 90 percent of our dealer body, have participated in the program. The reception has been phenomenal. We
did it because we didn’t have a consistent expression for our brand
at retail. We had great facilities, lousy facilities, and everything in
between. There was no kind of expression that said, ‘When you
come into Mercedes-Benz, this is what you can expect.’
Over the last three years, we’ve moved our facilities further
and faster than anyone in the industry. $1.4 billion was invested
in facilities that are coming online. We now have state-of-the-art
facilities that are consistent with our brand. They are open and
they are bright. They are high-tech. Customers tell us they enjoy
doing business. Dealers are telling us that they’re attracting new
talent to their stores because workers want to work in an environment like that. Everyone is validating this approach.
The average age of Mercedes-Benz customers is slightly
higher than that of BMW customers. What are you doing
to attract younger buyers while retaining your existing
customer base?
I’m not worried about it at all. Our marketing is reaching out
to younger buyers. We have new products coming online that
will, from a product and pricing standpoint, reach out and attract
younger buyers. We have in-car connective services that we are
launching on all of our models this year. We will be the most connected of all luxury manufacturers. We are active in social media.
Through our product and dealer network, we are building bridges
every day to younger buyers.
The bottom line is that we are a little lower than BMW because
our transaction price is a little bit more. When we bring new cars
in with new price points, we’re confident we can bring them in.
Last fall, Mercedes-Benz leased an electric fuel cell
version of the current B class to southern California
drivers. Is this a precursor to your company’s strategy as
the industry works to meet tightening fuel standards?
It’s one part of our strategy toward emission-free driving. We
offer fuel cells, hybrids, and diesels. We are downsizing our engines
and using direct fuel injection.
It’s not a single strategy. It’s across the board. We are making
a huge research and development commitment to reducing our
carbon footprint. New standards are pushing all automakers to do
it. Our portfolio is as good as anyone’s in the business.
Mercedes-Benz recently secured naming rights for
the Louisiana Superdome, home of the New Orleans
Saints. Do you expect this will enhance your company’s
relationship with the NFL? How do sporting event
sponsorships play into Mercedes-Benz’s overall
marketing strategy?
“We were able to secure naming rights for one of the most iconic
venues in the U.S. and be part of the birth of post-Katrina New
Orleans,” says Cannon.
We need to open up the brand. It’s not about exclusive events
for millionaires. The Superdome is a great way to do that. The
NFL delivers a mass audience; it is one of the best in the business. It also reaches an affluent audience. It reaches a terrific
demographic.
We were able to secure naming rights for one of the most iconic
venues in the U.S. and be part of the birth of post-Katrina New
Orleans. We are very active in that community to give back. Ultimately, the Superdome gets more than its share of big events.
Next year, the Super Bowl will be happening in “our haus” — the
Superdome. It’s a great exposure for the Mercedes-Benz brand. AD
SPRING 2012 | AutoDealer
13
A LEGACY of
Lindsey Schneider, AIADA President Cody
Lusk, 2011 AIADA Chairman Jim Smail, and Karl
Schneider at AIADA’s industry reception, held
February 4, 2012, at The Bellagio.
14
AutoDealer | SPRING 2012
Hyundai Vice President of Marketing Steve
Shannon, Hyundai CEO John Krafcik, 2010 AIADA
Chairman Rick DeSilva, 2012 AIADA Chairman Ray
Mungenast, and AIADA President Cody Lusk.
Barbara Lentz, AIADA Board Member Greg
Kaminsky of California, Gary Kaminsky, and
Toyota Motor Sales U.S.A. CEO Jim Lentz.
LEADERSHIP
DEALERS USHER IN 2012 AT 42ND ANNUAL MEETING AND LUNCHEON
BY AIADA STAFF
O
n February 6, 2012, dealers packed a Las Vegas ballroom to celebrate the Legacy of Leadership that is
moving America’s international auto retail industry
forward. The occasion: AIADA’s 42nd Annual Meeting and Luncheon.
The event highlighted the leadership of 2011 AIADA Chairman
Jim Smail of Pennsylvania before recognizing 2012 Chairman Ray
Mungenast of Missouri. AIADA also honored Rick and Rita Case
with its David F. Mungenast Lifetime Achievement Award before
Lexus Group Vice President Mark Templin shared with dealers
what they must do to carry on a legacy of leadership in their own
businesses.
“Dealers have always been a resilient group of business owners.
But I have never been as confident of our industry’s growth as I am
today,” AIADA President Cody Lusk said as he opened the event.
“The credit for that goes to you, the dealers, who see the big picture,
and work with both manufacturers and legislators to ensure the
success of your businesses well into the future.”
He introduced AIADA’s 2011 Chairman Jim Smail by noting his
experience at the helm of his family-built business. “Throughout
his career, he has been a steady advocate for our industry. His
regular “Smail Mail” columns provided welcome perspective on
the pressing issues international dealers faced, and his steady
leadership successfully steered AIADA through 2011,” said Lusk.
During his remarks, Smail reminded dealers about the challenges 2011 had brought, including March’s earthquake and tsunami
Tony Hall, AIADA Chairwoman Elect
Jenell Ross, Dawn Kum, and Butch
Spencer of Ross Motor Cars.
in Japan that undermined vehicle production for months, followed
by flooding in Thailand in the fall. Washington provided its own
set of hurdles in the form of overreaching regulatory agencies
like the National Labor Relations Board and the Environmental
Protection Agency.
He also noted the victories dealers had achieved during his tenure. Most notably was the October ratification of the long-awaited
U.S.-South Korea Free Trade Agreement (KORUS). “Dealers should
be proud that they were part of the driving force that passed it.”
Although he finished his year on a high note, Smail pointed
out that there is still work to be done, emphasizing his frustration
over Washington’s willful ignorance of the economic impact international brands make in the U.S. through their manufacturing
facilities, suppliers, and dealerships.
“I truly believe that I’m a part of the American auto industry. We
all are. But, there are some in Washington, D.C., who believe the
American auto industry only exists in Detroit,” he said as he made
the case for the role dealers must play in securing their economic
future. “Now is not the time, not to step back, but to step up and
support AIADA’s mission in Washington, D.C.”
In closing, he thanked dealers for the opportunity to serve them
as chairman. “This has been one of the great honors of my life, and
I am proud to be forever associated with AIADA.”
After lunch, Smail introduced 2012 Chairman, Ray Mungenast
of St. Louis, Mo., by noting the legacy of leadership he is carrying
on in his own family. As the son of the late legendary dealer and
continued on page 16
Mike Burns of AIADA Affinity Partner Shell Lubricants,
Doug Miller of AIADA, Dino DeAngelis of AIADA Affinity
Partner CNA National, Sharron Anania of CNA National,
and Don Moser of Shell Lubricants.
AIADA Board Member Brad Strong of Utah,
Steve Hood of KeyBank, and 2012
AIADA Chairman Ray Mungenast.
SPRING 2012 | AutoDealer
15
AIADA President Cody
Lusk told dealers that “I
have never been as
confident of our industry’s
growth as I am today.”
Outgoing 2011 Chairman Jim
Smail shared the challenges
and successes during his
time at the helm of AIADA.
continued from page 15
stand together as leaders and add to that
former AIADA Chairman, Dave Mungenast,
legacy. Together, we can secure the future for
he is president of the Mungenast Automoour children and the generations to come.”
tive Family, which he operates along with
Next up on the day’s program was the
his brothers, Dave Jr. and Kurt.
presentation of the 2012 David F. Mungenast
After accepting the chairman’s gavel
Lifetime Achievement Award. The award’s
from Smail, Mungenast explained to deal- 2012 AIADA Chairman Ray Mungenast,
namesake was revered for his devotion not
ers his vision for 2012. “If recent history is Barbara Mungenast, and 2012 David F.
only to the international auto industry, but
Mungenast Lifetime Achievement Award
any indication, what we have ahead of us recipients Rick and Rita Case.
also to his family and community.
is a battle. At some point in 2012, we will
Cody Lusk presented this year’s award to
battle new regulations and legislation in a fight for our liveli- dealers Rick and Rita Case of Ft. Lauderdale, Fla. The pair runs the
hoods, for our employees, for our communities, and for our chil- Rick Case Automotive Group — celebrating its 50th anniversary
dren’s future.”
this year — which operates 15 dealerships in Florida, Georgia, and
As the 2012 campaign season kicks into high gear, Mungenast Ohio, including the world’s largest Honda and Hyundai dealerargued that America is at a crossroads, divided over whether to ships, in Broward County, Fla.
support or punish the entrepreneurial spirit. “But I will tell you,”
The Cases donate their time and funds to 30 charitable causes.
he added, “that AIADA will fight to the end to protect this indus- For 25 years, they have served on the board of the Boys and Girls
try. When today’s generation of dealers fades away, the next gen- Clubs of Broward County and raised over $50 million for the
eration will inherit the very best brands and stores in the world.” organization through events such as the Boca Raton Concours’
To achieve this, Mungenast emphasized the need for dealers d’Elegance.
to get involved in AIADA’s work and give back to the industry by
“The Cases have demonstrated a commitment to the same valreaching out to fellow dealers, giving to AFIT-PAC, and developing ues as the award’s namesake, Dave Mungenast,” said Lusk. “Their
relationships with their legislators.
dedication, not only to their business, but also to their community,
“At some level, we all want our businesses to be our legacies. We provides an example for dealers nationwide.”
want people to remember us for the jobs we created, the customers
Lexus Group Vice President Mark Templin rounded out the
who trusted us, and the communities we helped build. We want to event with keynote remarks on the leadership traits dealers must
be remembered for what we stood for and for what we stood against,” embrace as they look to secure the future of their businesses and
he said as he closed. “In 2012, we will all have the opportunity to brands. For more on his remarks, see the side bar. AD
AIADA Vice Chairman Larry Kull
and former AIADA Chairman Fritz
Hitchcock.
16
AutoDealer | SPRING 2012
2012 AIADA Chairman Ray Mungenast, McLarty
Landers Automotive Chairman Robert L.
Johnson, AIADA Board Member Lisa Pickrum,
and AIADA President Cody Lusk.
Hyundai Motor America Director of Communications Chris
Hosford, Hyundai Vice President of Sales Dave Zuchowski, Mary
Hanagan of AFIT-PAC, Cheryl Esmond, and Toyota Motor Sales
U.S.A. Senior Vice President Don Esmond.
Standing the Test of Time
Mark Templin tells dealers how they can
create their own “Legacy of Leadership”
AIADA’s 2012 Chairman,
Ray Mungenast of Missouri,
accepted the chairman’s
gavel from 2011 Chairman
Jim Smail of Pennsylvania.
When kicking off his keynote remarks at AIADA’s 42nd Annual Meeting and Luncheon in Las Vegas, Lexus Vice President Mark Templin
posed a question to dealers: What makes a good leader? While
some may argue that leaders are born, Templin believes that they
are just like the rest of us. But a few key principles set them apart.
ONE: Follow your heart
“Despite all the challenges our industry has faced over the last few
years, we all continued to follow our hearts and never gave up on
this business,” said Templin, noting that the auto industry’s $500
billion payroll is second only to the Defense Department and
Social Security.
“We should all be proud that our passion and dedication to this business helped us ride out the storm during some pretty rocky times.
We should also take pride that our industry is having a positive
impact on society, and we’re helping pull the U.S. economy forward.”
TWO: Have a boldness of vision
and be willing to take risks
“Leaders need to have a long term view of things, and usually work
on a much broader canvas than most people,” explained Templin.
“But, they also need to be willing to take risks to achieve that vision.”
He pointed to the auto industry’s emphasis on research and development as an example of a bold vision at work. Automakers also
take risks in creating products that consumers will buy.
AIADA members are leaders in their own right. “You’re not just
looking out for your own interest. You see the bigger picture and
understand that together we can wield more power and build a
stronger market for all consumers and manufacturers.”
THREE: Lead from the front
“For dealers, leading by example has become part of their lives, and
not just during business hours,” said Templin, citing the examples
of several Lexus dealers who have shoveled customer driveways
and delivered vehicles to stranded customers.
“When you lead by example, and demonstrate your commitment
and passion, it also encourages your team to step up their game.”
Templin concluded with a final question:
What legacy will dealers leave behind?
Lexus Group Vice President Mark Templin explained how today’s dealers
are forging a Legacy of Leadership for tomorrow’s leaders.
By following the example of leaders before them, Templin believes
dealers can ensure their longevity. “There is absolutely no doubt
in my mind that together, with our love of cars, our boldness of
vision, and our willingness to lead from the front … we are writing
history and leaving a legacy that will ensure the test of time.” AD
SPRING 2012 | AutoDealer
17
THE
WITH ITS DESIGN, MARKETING,
AND DEALER SAVVY, KIA
IS PROVING IT HAS WHAT
IT TAKES TO SUCCEED
WINNING
PLAY
©2011 NBA ENTERTAINMENT. PHOTO BY KEVORK DJANSEZIAN. GETTY IMAGES SPORT.
BY MARTY BERNSTEIN
AIADA Contributing Editor
NBA rookie, Blake Griffin, performed a slam dunk
SPRING
2012
AutoDealer
over a Kia Optima
during
last| year’s
All-Star19
Game.
Kia launched nine new products in less than three years.
Hyoung-Keun (Hank) Lee, Kia
Motors Corp.’s Vice Chairman
and CEO, said, “Our recent
performance has been buoyed
by a tremendous leap in product
design, quality, and technology.”
W
hile many automakers have spent the past
few years fighting to remain afloat, Kia has
experienced dramatic growth, often with little
media fanfare. However, the world is starting
to take note.
Buoyed by the introduction of nine new models in recent years,
Kia’s 2011 sales figures were up by double digits for the third year in
a row — more than any other brand. Its marketing strategy has paid
dividends; last year, the brand received the prestigious Nielsen
Award for its Soul commercial, and serves as a major sponsor of
NBA events. Kia’s dealer body has led the industry in terms of
growth, logging an unprecedented 78 percent increase in just three
years. Furthermore, its factory in West Point, Ga., is running at full
capacity and recently completed a $100 million expansion.
“After launching nine new products in less than three years and
opening our first U.S. manufacturing plant in West Point, Ga., Kia
has earned a reputation for offering more than just great value,”
explained Byung Mo Ahn, Group President and CEO of Kia Motors
America and Kia Motors Manufacturing Georgia. “And as a result,
we are a completely different company compared to just three
years ago. Our brand is built on a commitment to offering our customers high-quality, fun to drive, and fuel-efficient vehicles that
are packed with the latest technologies and safety features, and
head-turning designs have brought new and more style-conscious
shoppers into our showrooms and helped Kia to become one of the
fastest-growing car companies in America.”
By all accounts, Kia is in a great spot. So what’s next?
20
AutoDealer | SPRING 2012
Kia’s Chief Design
Officer, Peter Schreyer,
is responsible for
creating several bestselling models, including
the popular Soul.
Expect More Trend Setting Design
According to Hyoung-Keun (Hank) Lee, Vice Chairman and
CEO at Kia Motors Corp., the quality of the automaker’s products
has contributed greatly to its success. “Our recent performance
has been buoyed by a tremendous leap in product design, quality,
and technology that we have achieved in just a few short years, as
evidenced by our new generation of vehicles like the new Sportage,
Optima, and Rio, which have won numerous awards and acclaim
around the world,” he told AIADA during a recent interview.
Its quality is perhaps most evident in its trend-setting vehicle
design language that has become a hallmark. These new and innovative designs are the brain child of Peter Schreyer, the company’s
Chief Design Officer, who has reinvented its lineup. In the process,
he has created many best-sellers in the U.S. and across the world
and moved it toward an overall “brand heritage.”
During a recent interview he explained the concept. “At first
glance, the viewer knows what car brand it is; you’ve seen one and
want one. Good design builds desire for the brand, which is not
always price-driven.”
In terms of exterior design language, Schreyer said he focuses
on the brand. “We are creating hallmarks and proportions … how
the car body works with the greenhouse, how it sets on the wheels
and at the four corners, the thickness of the C-pillar, the expression
of strength and elegance.” As for the interior, Schreyer mentioned
several factors he focuses on, including, “nice materials, comfort,
elegance, colors, shapes of knobs, instrumentation, sitting position, and distances to reach what is needed.”
ABOVE: Kia’s dancing, hip-hop hamster commercials
have received over 10 million YouTube hits.
RIGHT: Kia’s “Dream Sequence” Super Bowl XLVI
commercial ranked high on Ace Metrix’s viewer survey.
Kia’s design staff works closely with product planners and engineers. “We work with both from the beginning to create and make
a good vehicle and do not fight each other,” said Schreyer. “We are
strong in our discussions and fight for good solutions to issues.”
Putting all these elements together means Schreyer works with
and supervises Kia design centers in Germany, California, and
Korea, which requires monthly corporate management meetings
in Seoul. Kia’s design officer is always in motion, just as his vehicles
seem to be. New vehicles under Schreyer’s watch have already
included the best selling Optima, Sportage, and Soul, as well as
new design concepts such as the K9.
Marketing Expansion
Michael Sprague, Kia’s Vice President of Marketing and Communications, recently spoke with AIADA. As one who has helped
drive the brand’s presence in the heavily cluttered and competitive
auto advertising industry, he said his goals for this year include
“increasing brand awareness, reputation, and visibility.”
To achieve these goals, Kia has utilized a mix of distinctive commercials and strategic advertising. According to Kantar Media, the
automaker spent $281.2 million in advertising during the first nine
months of 2011 — up $75.8 million over 2010. Of that amount, the
biggest chunk — $232 million — was spent on television advertisements.
Customers are perhaps most familiar with Kia
today thanks to the dancing hip-hop hamsters it
utilized to introduce its Soul compact crossover and
capture the attention of one of the industry’s most prized demographics — young buyers. To date, the advertisements have garnered numerous accolades from across the advertising industry
and received over 10 million YouTube hits.
The brand also experienced another advertising breakthrough
with its “Dream Sequence” commercial during the broadcast of
Super Bowl XLVI. Ace Metrix’s survey of viewers found that it was
one of the most-liked commercials — an impressive feat for a brand
that flew under the radar only a few years ago.
In addition to groundbreaking television advertising, sporting
events are a lynchpin of Kia’s marketing strategy. To this end, Kia
has implemented sponsorships of the LPGA and golfer Michele
Wie. It is also in its sixth year as an NBA partner and sponsor of its
events. It has mounted a full court press to occupy
advertising real estate during all games in the stadiums of 14 premier teams. Each of Kia’s major markets
are home to NBA teams, and thanks to Kia’s NBA
continued on page 22
SPRING 2012 | AutoDealer
21
continued from page 21
sponsorship, its dealers in these markets receive unique promotional opportunities, activities, and events both on and off the
court. Likewise, the automaker has improved its brand perception
through its sponsorship of the MVP Award, NBA Shoot Arounds,
and other similar events.
The automaker’s corporate Vice Chairman Lee believes that its
sponsorships have played a pivotal role in improving the brand’s
image, not just in the U.S., but all over the world. “We have made big
strides in boosting our brand image and recognition in all global
markets through our active involvement in major sports sponsorships like the Australian Open tennis Grand Slam, the NBA in the
U.S., and the world’s premier soccer championships — the FIFA
World Cup and UEFA EURO tournaments.”
Whether in the U.S. or elsewhere, Kia is establishing benchmarks for automotive sponsorships of sporting events while creating a reputation of high quality, entertaining advertising that
resonates with viewers.
Dealers: The Link to Consumers
According to Tom Loveless, Kia’s Vice President of Sales, from
2008 to 2011, U.S. sales grew an impressive 78 percent. “And that’s
when the industry was in the economic doldrums and industry
sales were down four percent,” he emphasized. “This means we
were the fastest growing brand, beating Hyundai.”
In the midst of the brand’s expansion, Kia’s dealer body has
gained greater importance. The term “partner” is often used in
conjunction with Kia and its dealers, and Loveless says he sees a
positive relationship between the two. “Unprecedented growth has
its own issues, and we are working with our dealers to help them
plan for the future and manage our growth and the opportunity,”
Loveless said.
Last year, Kia sold 485,492 vehicles, up 36 percent over the previous year. As Kia’s 755 dealers cope with demand for their products,
Loveless said the automaker is working to improve volume, starting
Kia has a major presence
in several sporting
arenas, including
Grand Slam tennis.
with a $100 million expansion at its West Point, Ga., factory that is
expected to improve volume by 20 percent.
The additional sales have also had an impact on dealership
supply and repair operations. According to Loveless, Kia is working with dealers to address all facets of their operations that stand
to be affected by rising sales. “If a dealer is willing to invest in the
future, we will work with them.”
The Future
If recent years are any indication, they are only the tip of the
iceberg in terms of Kia’s potential. Vice Chairman Lee boldly
declared the automaker’s ambitions: “We expect this momentum
to continue in 2012, and are targeting a further 9.5 percent jump
in worldwide sales to over 2.7 million units.”
The potential for Kia’s growth is great. With a foundation of
solid products, proactive marketing, and a relationship with its
dealers, it will surely prove a major force to be reckoned with in
the coming years. AD
Kia, by the Numbers:
1.5 Million:
The number of vehicles produced by Kia
each year in its 13 manufacturing and assembly operations
in 8 countries.
360,000: The number of vehicles Kia’s West Point, Ga.,
plant is capable of producing annually.
23 Percent: The volume of Kia’s U.S. division.
42,000: The number of Kia employees worldwide.
33.9 Percent: The share fellow Korean automaker
Hyundai owns in Kia.
485,492: The number of vehicles sold by Kia in the
U.S. in 2011. The number was its best ever.
219,965: The number of Souls the automaker has
sold in the U.S. since it was launched in February 2009.
755: The number of Kia dealerships in the U.S.
22
AutoDealer | SPRING 2012
Dealer Spotlight
LISA WARNER PICKRUM >> Executive Vice President , RLJ McLarty Landers Automotive
Lisa Warner Pickrum represents the Mercedes-Benz brand
on AIADA’s board of directors. She
joined RLJ McLarty Landers in
2005, where she has helped grow
the McLarty Automotive Group
f rom nine dea lerships to 23,
which includes Mercedes-Benz
of Huntsville. The dealership’s
work within its local community
includes tornado relief efforts, the
Boys and Girls Club, the United
Negro College Fund, and the Veterans Memorial.
When did you first
get involved with
AIADA and why?
As a dealer group with both
domest ic a nd i nter n at iona l
nameplates, RLJ McLarty Landers
has always valued the voice that
AIADA provides for international
nameplate dealers in Washington.
When I was asked to participate as
a board member representing the
Mercedes brand, I was delighted
to do so.
Mercedes-Benz of Huntsville
What do you believe
is the most important
part of running a
successful dealership?
A general manager who is
involved in the local community
is the cornerstone of success for
any dealership. We obviously
work tirelessly on CSIs and units
sold, but our impact in the communit y and w ith our team of
employees is what makes the
dealership a place that people
want to visit.
As a member of the
auto retail industry,
what has been your
biggest challenge?
Lisa Warner Pickrum
natural disasters in Asia in 2011
we have all had setbacks.
What is one thing you
would like lawmakers to
know about dealers and
the auto retail industry?
Lawmakers need to understand
the importance of dealers to job
creation and job training. Automotive retailers provide opportunities for individuals to grow and
learn new skills throughout the
different dealership operations,
as well as grow into management
positions over time.
tirelessly work to promote our
interests which are not only good
for us, [but] they are good for the
communities we serve and the
country as a whole.
How do you find and retain
the best employees?
We hire motivated people who
see the dealership, not just as a
job, but as an opportunity and a
place for them to succeed.
What is your personal
“dream car”?
My dream car is the C Class
300. This vehicle gives me the
What is the smartest choice luxury I desire in a practical way.
you have made as a dealer? It allows me to transport the kids
Clearly the general state of the
Hiring good people, being with great safety features and still
economy has had an impact on all i n v o l v e d w i t h A I A DA a n d has the sophistication I’m looking
dealers; and combined with the NAMAD as organizations that for at work or for leisure time! AD
SPRING 2012 | AutoDealer
23
Dealer Spotlight
GARY MICALLEF >> Owner and Dealer Principal, Hyundai of Everett, Everett, Wash.
Gary Micallef is a veteran of
the auto retail industry, beginning
his career in the automotive/tire
center of a local department store.
Today, he is the owner and dealer
principal at Hyundai of Everett.
Among his many pursuits, he
finds time to advocate on behalf
of childhood cancer research
through the Hyundai Hope on
Wheels program. As a founding
board member, this year he is
serving as the program’s chairman. AIADA recently spoke with
Micallef to find out more about
the program, how it has personally impacted him as a dealer,
and how other dealers can get
involved. For more on the Hyundai Hope on Wheels program,
visit www.HopeOnWheels.org.
As the dealer chairman
for Hyundai’s Hope on
Wheels program, can you
tell us more about what
the program does?
Hy u nda i Hope on W heels
is the united effort of Hyundai
Motor America and its more than
800 dealers across the U.S. to
raise awareness about childhood
cancer and to celebrate the lives
of children battling the disease.
Every time a new Hyundai vehicle
is sold in the U.S., Hyundai Motor
America and its dealers make
a donation to Hyundai Hope on
Wheels.
For 14 years, Hope on Wheels
has traveled across the country,
and by the end of this year will
have donated more than $57 million to pediatric cancer research
at institutions nationwide through
its Scholar Grant Tour and September Hope Grand programs.
24
AutoDealer | SPRING 2012
Gary Micallef addresses the crowd at the Congressional Pediatric Cancer Caucus. The event in
Washington, D.C., engaged key organizations and individuals who were leading the way in the fight
against pediatric cancer.
The end goal, of course, is to ulti- cancers are being cured today,
mately cure pediatric cancers.
that’s just not good enough. In
fact, three out of five children will
How and why did Hyundai
suffer long-term health effects
establish the program?
from treatment that will remain
It began in 1998 as a local ini- with them throughout their lives.
tiative supported by New EngDespite being so damaging to
land-area Hy undai dealers to children, pediatric cancer is still
support the Dana Farber Cancer woefully underfunded on the fedInstitute. What began as a local eral level. In fact, only 3 percent
donation has now grown into an of the National Cancer Institute’s
independent 501 (c)(3) nonprofit annual budget is designated for
organization supported by all of pediatric cancer. Hyundai and its
Hyundai’s more than 800 dealers dealers saw this as an opportunity
across the country.
to make a long-standing impact
Even though there have been for children who really needed a
many advances in therapies and hand.
treatment, cancer still remains
the leading cause of death by dis- How did you become
ease in children in the U.S. While involved? What personally
nearly 80 percent of childhood impacted you to become
an advocate for childhood
cancer research?
As a member of the Hyundai
National Dealer Council, I represent the dealers in the western
region. I have personally attended
a number of hospital events, at
which we make the donation. In
that process, I have met countless
young children and their parents
who are literally fighting for their
lives. I have also spoken with
many parents who want and need
their kids to just get better. As a
father and grandfather, I am committed to doing whatever I can to
eliminate this dreaded disease.
That’s why I was pleased to be one
of the founding board members
for Hyundai Hope on Wheels. Our
objective is very clear: We help
Dealer Spotlight
kids fight cancer by providing the leading pediatric oncologists
funds for life-saving research. And from across the U.S. is responwe won’t stop until there is a cure. sible for selecting grant applications based on the best available
What unique things is
science.
the program doing to
As we launch our 14th annual
raise awareness and
Hope on Wheels tour, 2012 will
support childhood cancer
be the largest year in donations
research? What are your
to-date for the program. We plan
plans for the program
to award $12 million to children’s
through the rest of 2012?
hospitals across t he countr y.
Hy u nda i Hope on W heels Our goals are to fund innovative
is unique from other charitable research projects to create more
foundations in a number of ways. public awareness for the cause
First, nearly 90 percent of every and to help save children’s lives.
dollar we generate is donated
And for the third straight year,
d i rec t ly to ped iat r ic c a ncer we conduct a national advertisresearch. Second, our grants are ing campaign during the month of
donated exclusively to non-profit September. September is National
children’s hospitals in the U.S. for Childhood Cancer Awareness
research projects only. Third, we Month. Hyundai, through its Tier
host a donation ceremony at each One media buy and the dealer
hospital grant winner. The hand- group advertising associations,
print ceremony is where the child will air unique, creative [ads] to
cancer patients get to put their inform the public about the issue.
hands in paint and leave their
In 2012, Hy undai Hope on
handprint on a new white Hyun- Wheels will expand the Hyundai
dai vehicle. And finally, a panel of Hope on Wheels 5K Series to five
Gary Micallef meets with Hope on Wheels’ 2010 – 2011 National
Youth Ambassador, Brianna Commerford, at the Congressional
Pediatric Cancer Caucus in Washington, D.C.
cities across the country. These
events are intended to be fundraisers and family “fun-runs” as a
way for local communities to work
together and raise money, as well
as create greater awareness for
pediatric cncer and the children
impacted by the disease.
Dr. Stephanie Savelli, a recipient of a $100,000 Hyundai Hope on Wheels Hope Grant for a cancer
survivorship clinic, shows her handprint alongside the Hyundai FCEV.
How can other dealers
support Hope on Wheels?
Every Hyundai dealer in the
U.S. donates to t he prog ra m
through each car sold. Many dealers have also donated incremental
dollars to the program throughout
the year. However, there are several other ways dealers can support the cause.
One way my fellow Hyundai
dealers can show their support for
Hope on Wheels is to proudly display showroom collateral materials which tell about the program.
Another is to include our Hope on
Wheels story in their social media
strategies. And finally, Hope on
Wheels-branded collateral materials can be obtained from our
website, from which proceeds are
donated back to Hope on Wheels.
Followers may learn more via
the Hope on Wheels Facebook,
Twitter, and YouTube channel, in
addition to our website at www.
HyundaiHopeOnWheels.org. AD
SPRING 2012 | AutoDealer
25
The Final Word
“W hen today’s generation of dealers fades away, the next
generation will inherit the very best brands and stores in
the world, of that much I am certain. Until then, it is our
responsibility to be the trustworthy stewards of that future.”
—2012 AIADA Chairman Ray Mungenast at AIADA’s 42nd
Annual Meeting and Luncheon, February 6
“During 2011, Japanese and Korean companies sold 3.46 million locally built vehicles,
or essentially two out of every three of their
vehicle sales in the U.S. That’s up from 59.4
percent of those sales in 2010.”
—Micheline Maynard, discussing the state
of the international auto manufacturing
industry in the U.S., Forbes, February 20
“Riding a wave of impressive redesigned models in the last few
years, Subaru for the first time
has earned the top score in Consumer Reports automaker report
cards for 2012.”
—Consumer Reports, announcing the results of its annual
automaker report cards for
2012, February 28
26
AutoDealer | SPRING 2012
“New products are converging with pentup demand and an improving economy,
resulting in strong sales for international dealers. I am confident 2012 will
continue to be the best year our industry has seen in quite a while.”
—AIADA President Cody Lusk
responding to February’s positive auto
sales figures, March 2
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