CMDA/NADA Winter Business Meeting Chrysler Minority Dealers

Volume 1, Issue 9
February 2010
CMDA/NADA Winter Business Meeting
INSIDE THIS ISSUE:
Top 10 Focus Factors
2
CMDA-NADA Presenters
3
(PR) Corporate Key
Messages
4
Using Social Media
7
Diversity Statement
8
Business Management
9
Dealer Performance
11
Top Ten - Retail Sales
13
Chrysler Group News
14
“Congratulations to
Mr. Jerry Dillard of
Park DCJ on his
recent election to the
Maryland Automobile
Dealers Association”
ATTN: ALL CHRYSLER MINORITY DEALERS
The Chrysler Minority
Dealers Association
(CMDA) had a great two
day meeting with several
Chrysler executives. The
CMDA leadership had
dinner with Chrysler
Executives on Friday the
12th and met again on
Saturday the 13th for an
executive panel
discussion. Joining the
panel discussion was
Fred Diaz, President &
CEO of RAM Brand &
Sales, Pete Grady, Vice
President of Network
Development & Fleet,
Mark Manzo, Vice
President, Alliance Sales
for GMAC, Rolf Assmuth,
Vice President of
Technical Service
Operations, Jim
Sassorossi, Director,
Global Parts, Sales &
Marketing and Saad
Chehab, Head of Group
Advertising.
In addition, Justin Byrd,
Head of Global Market
Representation and
Marcus Foreman,
Manager, Network
Diversity & Dealer
Development shared
Chrysler’s 2010 Game
Plan with the CMDA.
This was a great meeting
and an opportunity for our
minority dealers to get up
close with Chrysler’s
leadership. We are
committed to continuing
this type of dialogue and
we hope to include YOU
in the next meeting!
Chrysler Minority Dealers Association
We’re on the Web!
www.minoritydealers.com
“Listed Below are some
of the benefits of CMDA
membership:
•
Training and
Advertising
Reimbursement
•
Vendor Discounts
•
Dealer Mentorship
•
Meetings with
Chrysler Senior
Management”
In today’s competitive
environment it's survival of
the fittest; and the more
information you have, the
better prepared you will
be. The CMDA offers
mentorship to its
members. You have the
ability to learn from the
successes and failures of
your peers. The real
power of CMDA is driven
by the collective hard
work, energy and
enthusiasm of its
members.
Here is your chance to
start out the New Year
with a renewed focus on
moving your business
forward through learning
and exchanging with other
diverse Chrysler, Jeep
and Dodge dealers.
•
Vendor Discounts
We encourage you to get
involved in the CMDA or
atleast reach out to
gather more information.
•
Dealer Mentorship
•
Meetings with
Chrysler Senior
Management
Listed below are some of
the benefits of CMDA
membership:
•
Training and
Advertising
Reimbursement
If you are interested in
learning more about
CMDA, or would like to
join, complete the DAP-7
form attached at the end
of the Diversity News and
fax it to 248.512.1990.
A CMDA member will
follow up with you to
answer any questions you
may have regarding
membership.
Congratulations to Mr.
Carlos Hidalgo of Folsom
Lake Chrysler Jeep
Dodge on his recent
st
election as 1 Vice
President of CMDA.
Network Diversity & Dealer Development
Building A Stronger Retail Channel
Focus Factors: Top 10 in 2010
Focus Factors: Top 10 in 2010
‐ Communication
‐ Project Genesis ( 100% by CYE ‘11 )
‐ Dealer Candidate Development D l C did t D l
t
‐ Adopt A Dealer Ad t A D l ( Peer‐to‐Peer )
(P
P
)
‐ Performance Improvement
‐ Increased Diversity Representation
‐ Dealer Standards ‐ Community Service
‐ Capitalizing on Market Opportunities
C i li i
M k O
ii
‐ Cultivating Diversity
C l i i Di
i
3
Network Diversity & Dealer Development
CMDA-NADA Winter Business Meeting
February 13, 2010
Orlando, FL
Network Diversity 2010 GAME PLAN
Presenters
Justin Byrd
Head of Global Market
Representation
[email protected]
248.512.0186
Marcus Foreman
Manager, Network Diversity & Dealer
Development
[email protected]
248.512.1990
Rick Deneau
Head of Brands and Product
Communications (PR)
Chrysler Group LLC
[email protected]
248.512.2694
James McCoy
Regional Manager
Government & AFV Sales
Chrysler Group LLC
[email protected]
407.826.7229
Kathy Graham
Sales, Dealer Network (PR)
Brand Newsroom Communication
Chrysler Group LLC
[email protected]
248.512.6218
Michael Gingell
Vice President, Sales and Client
Services
Polk Global Automotive
[email protected]
248.728.7133
Dave Slubowski
Manager, Dealer Profit Development
Chrysler Group LLC
[email protected]
248.512.2338
Tom Little
Account Executive
Urban Science
[email protected]
313.568.4424
- Corporate Key Messages
The next page does not come from Chrysler's PR Dept. but includes some
tips on using social media to market your dealership.
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Are you using facebook and twitter to help build your business?
Jay Huffschmidt, marketing manager for Beverly Hills
Porsche, spends his days blogging, making videos to
post on YouTube, joining Porsche clubs on Facebook and
MySpace, and tweeting about southern California, sports
and cars. He’s not goofing off. This is his job, and, he says,
the future of dealership marketing.
“From the dealer principal on down, you need to get into this
now,” he says. “We’re in an electronic age. To not be in this
space is inexcusable. Skim 10 percent off the newspaper ad
budget and direct it to paying someone to do social media.
You can’t afford not to. If you don’t get involved, there will be
a dealership that comes along and will eat your lunch.”
The argument for being involved in social media really is that
strong. According to Nielsen Online, the unique audience
for Facebook was more than 65 million in a single month in
2009, and grew by nearly 230 percent from a year earlier. That
growth is dwarfed by comparison to Twitter, which saw an
increase in traffic in 2009 of almost 1,400 percent over the
previous year. And the amount of time that people spend on
social media sites has skyrocketed as well. That’s where people
are spending time, and dealers need to be there.
Yet, car dealers have a tough time with social media, so much
so that they’re cited as a good example of what not to do, says
Larry Bailin, CEO of Single Throw, an internet marketing
firm in Wall, N.J., that works with several dealer groups. “I
friended a car dealer on Facebook out of curiosity and got
bombarded with ads,” he says. “Social media is the new word
of mouth. You have to share information and become part of
the conversation, not interrupt the conversation.”
The ‘golden triangle’ of social media for car dealers, Bailin
says, is YouTube for videos, Twitter for information,
and Facebook to build community. The key is building
community based on what’s of interest to the customers, not
the dealership, and many times, it has nothing to do with cars.
He cites an example of a BMW dealership that had several
employees who were musicians. They played at a charity event
for local Girl Scouts, and posted videos on their Facebook
page and YouTube.
“It made them real to other musicians and people with Girl
Scouts,” Bailin says. “People want to buy from someone they
like and trust.”
Eric Miltsch, internet director for Auction Direct USA
Used Vehicle Superstores in Rochester, NY, Raleigh, NC,
and Jacksonville, Fla., started his group’s online efforts with
its Web site, then a blog, and branched out from there to
YouTube, Flickr, Facebook, Twitter, and microblogging sites
-0$7RGD\9ROXPHZZZMPDJURXSFRP
such as Tumblr and 12Seconds.tv, which is basically a video
version of Twitter.
Then, in a late-night stroke of genius, Miltsch came up with
tweetandgreet.com, a series of interviews with well-known
online marketing pros and Twitter followers, asking them
questions about their cars and their memories of them.
“I sent out 20 emails, hoping to get one or two back,” Miltsch
says. “I got 19 out of 20 in about 20 minutes. It’s close to 300
now. People like to talk about themselves and their cars and
know they’ll be featured somewhere. …If someone has a large
following themselves, those people will retweet it on Twitter
and post it on their own blog.”
Miltsch since has taken the logical next step, which is
augmenting his online marketing efforts with off-line, live
activities. Through participation in local social media clubs,
which he’s happy to host at their stores, he’s connected with
dozens of prospective customers. One such recent connection
resulted in a referral sale.
The real magic of social media is that it takes word-of-mouth
to a potentially massive level, and it can happen in a matter
of seconds. It’s as simple as a person with a lot of
Facebook friends or Twitter followers coming by the store, and posting a message, a
picture, or a video of a car that caught
their eye. It instantly goes to hundreds
of other people—with an unsolicited
endorsement from a trusted source.
“People want to hear about your
brands from their friends, not
from you,” explains Caitlin
McCabe, a partner in 426 Ink,
a Chicago-based marketing
agency that specializes in social
media. “They want to hear from
their peers.”
She also recommends taking
advantage of the search function
on Twitter to do one thing that
should feel very familiar to all
good sales associates—prospecting
for customers. All you have to do is
search for tweets that mention shopping for a new car in your market.
“Those are pretty hot leads,”
she says. “
LEADERSHIP COMMITMENT TO DIVERSITY
As CEO of Chrysler Group LLC, I have taken on the role of executive sponsor of the Global Diversity Council to underline the importance of diversity in
our company. I personally feel privileged to have the opportunity to lead this company … and to work with all of you to build this company and our
great brands into all we know they can and should be.
That effort starts with leadership.
Great leaders are those who have the courage to challenge the obvious, to travel uncharted paths, to break away from convention and the old way of
doing things, to be unpredictable to the competition and to go beyond the tried and tested – men and women who understand the concepts of service,
of community, and respect for others. That’s the kind of behavior we all must expect of each other and of ourselves. It leads to an engaged culture.
Culture is the fabric that holds organizations together. It is not just an ingredient for success; it is the essence of success itself. What will make all of
this possible is the culture we are going to build with great teams based on mutual respect and openness. This is why my leadership team and I are
committed to creating an atmosphere where all of our people feel respected and valued, because every person plays an important role in shaping our
future, including employees, our supply base, our marketing and our dealer network.
Chrysler Group LLC and its people have a future with promise. We will reach the full measure of that promise only as one, united diverse team.
Sergio Marchionne
SUPPLIERS
|
DEALERS
|
CUSTOMERS
|
COMMUNITY
|
EMPLOYEES
ONE
UNITED
DIVERSE
TEAM
Network Diversity & Dealer Development
Network Diversity & Dealer Development
Network Diversity & Dealer Development
Network Diversity & Dealer Development
Marcus Foreman
Manager, Network Diversity & Dealer Development
Average Diversity Dealer ‐ Same Store Performance
(December 2009 YTD vs. December 2008 YTD) Key Performance Indicators December 2009 December 2008 Change Net Earnings $308,049 $69,907 341% %Profitable 64% 52% 12 Pts 1.01% 0.22% .79 Pts New Vehicle Net Profit $266,528 $266,162 0% Used Vehicle Net Profit $459,398 $429,084 7% Mechanical Net Profit $543,258 $451,878 20% Parts Net Profit $530,078 $438,977 21% 72.77% 66.15% 10% Return on Sales Service Absorption All Dealer counts listed below are as of January 31, 2010:
•
•
•
•
•
104 Minority Owned Dealerships
4.4% of Chrysler’s Dealer Network
7.1% of Chrysler’s Retail Sales Volume
77% of Minority Dealerships have Chrysler, Jeep, Dodge and Ram
48% of Minority Dealers are located in Metro Areas
Network Diversity & Dealer Development
Minority Dealer Performance – Dec. 2009 Vs. Dec. 2008
Net Earnings
% Profitable
64%
$308k
341%
52%
12pts
$70k
Return on Sales
1.01%
Service Absorption
73%
0.79pts
7pts
66%
0.22%
44
Minority Dealer Performance – Dec. 2009 Vs. Dec. 2008 New Vehicle Net Profit
$267k
Used Vehicle Net Profit
$459k
-----
7%
$429k
$266k
Mechanical Net Profit
$543k
$452k
Parts Net Profit
20%
$530k
21%
$439k
45
Network Diversity & Dealer Development
“TOP TEN DIVERSITY DEALERS – RETAIL SALES” JANUARY 2010 (CYTD) Sales (CYTD) Diversity Dealer 1. Spring Chrysler Jeep Dodge (Spring, TX) 149 2. Ancira Chrysler Jeep Dodge (San Antonio, TX) 85 3. Greenway Chrysler Jeep Dodge (Orlando, FL) 80 4. Olathe Dodge Chrysler Jeep (Olathe, KS) 74 5. Folsom Lake Dodge Chrysler Jeep (Folsom, CA) 71 6. Landers McLarty Dodge Chrysler Jeep (Huntsville, AL) 66 7. Performance Chrysler Jeep Dodge (La Vista, NE) 62 8. Galeana Chrysler Dodge Jeep (Fort Myers, FL) 61 9. Chrysler Jeep Dodge City of McKinney (McKinney, TX) 61 10. Mission Chrysler Jeep (San Antonio, TX) 60 1.
2.
3.
4.
5.
6.
7.
8.
9.
“MARKETING INVESTMENT DEALERS – RETAIL SALES” JANUARY 2010 (CYTD) Sales (CYTD) Marketing Investment Dealer Dodge Chrysler Jeep City of McKinney 61 Stateline Chrysler Jeep Dodge 38 Superstition Springs Chrysler Jeep 38 Gulfgate Dodge Chrysler Jeep 38 La Brea Chrysler Jeep 37 Bessemer Chrysler Jeep Dodge 29 Stone Mountain Chrysler Jeep Dodge 18 Advantage Chrysler Jeep Dodge 16 Alhambra Chrysler Jeep Dodge 15 February 19, 2010
Dealers express optimism at NADA
More than 15,000 U.S. automobile dealers gathered in Orlando, Fla., earlier this week for
the National Automobile Dealers Association (NADA) Convention and Expo. Reporters at
WKHQDWLRQ¶VPDMRUPHGLDRXW
lets found Chrysler, JeepŠ,
Dodge and Ram dealers feeling confident about the ChrysOHU*URXS¶VIXWXUHDIWHUPHHWLQJ
with company executives.
USA Today VDLG³$IWHUEHLQJ
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Daimler, set adrift by Wall
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agement, run through bankruptcy court and having seen
hundreds of dealers closed,
those dealers who remain
might have the right to feel bitWHU7KH\DUHQ¶W1RUSDUWLFXODUO\
angry. Instead, they are hunkering down and hoping for the
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now runs Chrysler, prepares to
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The Detroit News said that
the mood during a two-hour,
closed-door meeting was
mostly upbeat.
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tives did not push dealers to
buy more vehicles, but reinIRUFHGWKHFRPSDQ\¶VLQWHQWLRQ
to stop producing excess numbers of poor-selling vehicles
that later need to be loaded
ZLWKLQFHQWLYHV´WKHSDSHUVDLG
The News noted the Chrysler
Group is giving its minivans a
substantial makeover and, by
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make changes to 75 percent of
its lineup and introduce some
all-new products.
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its costs are very low, and it is
no longer churning out cars
only to have them pile up on
storage lots, so it can afford to
run for several months with
GHSUHVVHGVDOHV´IHS Global
Insight said. The publication
quoted Chuck Eddy Jr., a
Chrysler, Dodge, and Jeep
dealer in Youngstown, Ohio,
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three or four [in the marketSODFH@:H¶YHQHYHUEHHQ
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dealer in North Carolina, told
Reuters that dealers believe in
the Chrysler Group because
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has convinced them there is a
coherent strategy, even if some
of the details are sketchy.
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hard behind the scenes to get it
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service.
Finally, a Detroit Free Press
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dirt onto Chrysler's grave for a
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to introduce three new vehicles
that are acknowledged leaders
in their segments and one new
model that gets it into a growing and potentially lucrative
new market, the paper said. A
new Jeep Grand Cherokee will
hit the road in about two
months, followed later in the
year by the Fiat 500, a new
Dodge Charger and a new SUV
for Dodge, the Free Press
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what Chrysler does best. Few,
if any, automakers on Earth do
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2010 Chrysler Town & Country and
Dodge Journey Earn Pet Safe
Choice Awards
The Chrysler Town & Country and Dodge Journey have
been awarded Bark Buckle
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Awards at the 2010 Chicago
Auto Show.
The Pet Safe Choice Award is
given to vehicles that best accommodate a variety of pet
needs, including ventilation for
pets and adaptability of thirdparty pet-travel gear.
Bark Buckle UP is the recognized innovative leader and
experts for pet travel safety.
For more news and information, visit
www.barkbuckleup.com
Chrysler Group
News Update
Published by Chrysler
Group Communications and
intended for distribution to
dealership employees to highlight company and industry
news.
It includes third-party news
sources that do not reflect
Chrysler Group views or policies.
Chrysler Group Salutes Scott Wood, TIME
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Chrysler Group LLC
proudly salutes Scott Wood,
owner of Scott Wood Chrysler,
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Arkansas, for being chosen the
2010 TIME Magazine Dealer of
the Year.
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have outstanding citizens like
Scott Wood as our dealer partQHUV´VDLG)UHG'LD]3UHVLGHQW
and Chief Executive Officer±
Ram Brand and Lead Executive for the Sales Organization,
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Wood has been involved in his
community and lending not just
money, but his time and effort
to help make the Batesville
area the best it can be for more
than 30 years. People like Scott
Wood are the backbone of
communities across the United
States and we are proud to
have him representing our
FRPSDQ\´'LD]DGGHG
Wood considers his work to
LPSURYHWKHDUHD¶VSXEOLF
schools his most meaningful
civic achievement. A member
of the Batesville School Board
since 2001, Wood and his fellow members have facilitated
changes that make education
more effective as evidenced
through improving test scores.
In addition to the district receiving national recognition, students want to attend school
because they are having fun.
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prestigious and highly coveted
awards for new-car dealers.
Recipients are among the naWLRQ¶VPRVWVXFFHVVIXODXWR
dealers, but they must also
demonstrate a long-standing
commitment to effective community service.
Designer says no more
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Chrysler focuses on
better supply chain
In an interview with Wardsauto.com Ralph Gilles, Senior
Vice President of Product Design and Dodge Brand CEO
stated that the company no
longer is satisfied with churning
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leader is to motivate my staff to
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last, to really put your heart and
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Gilles also stated that he has
faith the auto maker is moving
in the right direction following
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One reason for his newfound
optimism, he says, is the leadership of Sergio Marchionne.
Managing parts flow is a
daily preoccupation of Dan
Knott, head of purchasing, who
in an interview with The Detroit
News, said the number of supSO\LVVXHVKH¶VGHDOLQJZLWKRQ
a daily basis has decreased
from last year and he anticipates a return to relative normalcy by the end of March.
Knott goes on to say that
fluctuations are a problem because stability is critical for suppliers. Sudden increases in
volume are not always easy to
accommodate and many parts
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GRZQTXLFNO\´
Chrysler 300 Signed by
Celebrities to be Auctioned
Stars For A Cause (501.C 3),
in collaboration with the Chrysler Brand, will auction a Chrysler 300 signed by hundreds of
celebrities on Saturday, Feb.
20 during the Leake Car Auction in Oklahoma City, Oklahoma. 100 percent of the proceeds will go to the American
Red Cross for their Haiti relief
efforts. Auction results can be
found on the websites for both
Stars for a Cause at StarsforaCause.org and Leake Car Auction at LeakeCarAuction.com.
0RSDU¶V%HVW-selling
accessories for the Dodge
Challenger
1.
Door-Sill Guards
2.
Vehicle Cover
3.
Chromed Fuel-Filler Door
4.
Rear Deck-Lid Spoiler
5.
Splash Guard
6.
Classic Mopar T/A hood
7.
Decal Kits
8. Floor Mat Kit
9. Hitch Receiver
10. Interior Trim Bezel
Page 14
Network Diversity & Dealer Development
“Chrysler has lots of products to crow about”
market.”
“This year, Chrysler
plans to introduce
three new vehicles
that are
acknowledged
leaders in their
segments and one
new model that gets
it into a growing and
potentially lucrative
new”
“Let’s stop shoveling dirt
onto Chrysler’s grave for a
moment, shall we,” Mark
Phelan of the Detroit Free
Press wrote Sunday.
He added: “We all know
Chrysler won’t reap the
benefits of its alliance with
Fiat until 2012, but that
doesn’t mean the cupboard
is bare. To the contrary. This
year, Chrysler plans to
introduce three new vehicles
that are acknowledged
leaders in their segments
and one new model that gets
it into a growing and
potentially lucrative new
Phelan said, “The first Fiat
model, the 500, will also
arrive, giving Chrysler
dealers a sophisticated and
chic little car that’s smaller
and considerably less
expensive than the Mini
Cooper. That’s the formula
for a dynamite year for a car
company. If we hadn’t fixated
on what Chrysler lacks,
rather than what it has, we
might be talking about the
flood of new models coming
from Auburn Hills.”
He added: “At about the
same time, dynamic new
versions of the exciting
Chrysler 300 and Dodge
Charger sedans are to arrive
in dealerships. There’s a
built-in audience for those
cars, as there is for the new
Grand Cherokee. All three
are examples of what
Chrysler does best. Few, if
any, automakers on Earth
do it better. They will also
be the first models to
feature Chrysler’s new
Pentastar V6 engine, which
should improve
performance and fuel
economy.”
Concluding, Phelan
said, “The future of Fiat’s
foray into America—and of
Chrysler itself—depends on
the success of cars and
trucks designed and
engineered in Auburn Hills
as well as in Italy. Chrysler,
its faults and failings
notwithstanding, is very
good at developing those
vehicles. Some of the best
will hit the road this year.”
(Detroit Free Press)
Challenger R/T gets classic hood-to-fender stripe
hood-to-fender stripe is
available on 2010
Dodge Challenger R/T
models in either
Brilliant Black or Bright
White.
“The designers at
Dodge have come up
with another classic,
yet modern take on
the new Dodge
Challenger R/T”
The designers at Dodge
have come up with
another classic, yet
modern take on the new
Dodge Challenger R/T.
The new, bright red
Customers may order
the new color/stripe
configuration through
their local dealers
immediately, and
shipments of the newly
minted Dodge
Challenger are set to
begin in March.