3 - MADA

Inside this issue:
Dealership Showcase
Lake Country Chevrolet Buick
Industry Spotlight
Mark Morcomb
MAKING
DIFFERENCE
A
Spring 2015
Does More than Fix Cars
www.mada.org
Volume 11 • Issue 3
IN THIS ISSUE
10
Cover:
Making A
Difference
34
Dealership
Showcase:
Lake Country
Chevrolet
Buick
32
Industry
Spotlight:
Mark Morcomb
Table of Contents
GMADA Minutes
Twin Cities Auto Show Photos....................4
TCAS Opening Night Party.......................18
2015 Executive Committee
President
Greg House, House Chevrolet Company
President Elect
Mike Saxon, Inver Grove Ford Lincoln
Treasurer
Rick Jensen, Jensen Motors, Inc.
Secretary
Michael Stanzak, Key Cadillac, Inc.
Immediate Past President
Morrie Wagener, Morries Automotive Group
Executive Vice President
Scott Lambert
EDITORIAL STAFF
Scott Lambert, Publisher
Amber Backhaus, Senior Editor
Ginger Lemke, Editor
PHOTOGRAPHY
Jim Mims, Mims Photography
SUBSCRIPTIONS
Minnesota Dealer Outlook is an official
Minnesota Auto Dealer Association
publication, provided Quarterly to Members
of the Minnesota Automobile
Dealers Association.
SUBMIT ADDRESS CHANGES TO:
Minnesota Automobile Dealers Association
200 Lothenbach Avenue
West St. Paul, MN 55118-3505
Phone: 651-291-2400 • Fax: 651-291-2894
Toll Free: 1-800-652-9029
Email: [email protected]
ADVERTISING SALES:
Ginger Lemke
Phone: 651-291-2400
Email: [email protected]
www.mada.org
On the Cover
Making A Difference..................................10
Legislative News
Assembling the Pieces to Build a Strong
Workforce...................................................8
Dealers Are Good Neighbors
Good News...............................................16
Minnesota Auto Outlook
Comprehensive New & Used Vehicle
Information on Minnesota’s Automotive
Market.......................................................20
Industry Spotlight
Mark Morcomb..........................................32
Dealership Showcase
Lake Country Chevrolet Buick..................34
On the Cover:
Making a difference are the MADA Collision
& Service Council Advisory Committee
members (l-r): Wayne Nielsen, Steve
Weisenberger, Mark Morcomb, Brian
Steffensmeier, Tony Simoneau, and Sid
Osterman at the 2015 Twin Cities Auto
Show Council exhibit. Above, MADA’s
own Denise Anderson and Jim Schutjer
emphasize the Council’s tagline.
Data Source Information for Minnesota Auto Outlook on pages 20 - 31.
Exclusive source for new vehicle registration data presented in Minnesota Auto Outlook is
R. L. Polk and Company, a leader in providing detailed new and used vehicle sales and
registration statistics. Data is available on a timely basis on the internet.
For more information visit www.polk.com
Advertising Directory
Blue Cross Blue Shield MN............................. 15
CliftonLarsonAllen..................................... 19
CVR............................................................. 7
LubeTech................................................... 33
MADA Business Cards.............................. 27
MADA Direct Mail........................................ 6
MADA Endorsed Services and Vendors...... 6
Meg Corp................................................... 23
MSRA........................................................ 17
Pleasureland RV.......................................... 9
Protective.....................................Back Cover
Reliable Plus................................................ 9
Schmit Towing............................................. 9
Super America........................................... 29
StarTribune.......................Back Inside Cover
WIPFLI LLP......................Inside Front Cover
3
MINUTES
2015 Twin Cities Auto Show
The Twin Cities Auto Show drives sales once again.
Thousands of buyers and automotive enthusiasts packed the aisles to
see the latest in over 525 new cars and trucks that were on display.
Other show highlights included the Davisson Brothers performance,
the 1st Annual Military Appreciation Night, Downtown Days, Disney
star Peyton List and a GMC Canyon Truck Giveaway.
4
www.mada.org
www.mada.org
5
MADA Endorsed Services & Vendors
Computerized Vehicle Registration
CVR
Dealership Marketing
Visible Customer
F&I Products
Protective
Group Health Insurance
Blue Cross Blue Shield of MN
Delta Dental
ReliaStar Life
Workers Compensation
Ensure Agency
Dealer Bond Program
Ensure Agency
Collections
Springer Collections
Check Guarantee/Credit Card Processing
Certegy / FIS
Disability Income Insurance & Section 125 Cafeteria Plans
American Fidelity Assurance
OSHA, EPA & DOT Compliance/Training
Call MADA for all of
your Direct Mail Needs.
651-291-2400 • 800-652-9029
ComplyNet Corporation
Fleet Fueling Program
SuperAmerica
Office Supplies
S & T Office Products
Uniforms and Linen Services
AmeriPride Linen and Apparel Services
Hole-In-One Insurance
Hole-In-One-USA
Pre-Paid Legal, Jim Gavin
6
Identity Theft Shield & Pre-Paid Legal Services
www.mada.org
COMIC CORNER
I think I’ll do
something nice for
my customers...
like CVR
Benefits of CVR:
• Increase CSI scores
• Accurate fees
• Flexibility with plate
assignments
• Increased
revenue
Contact MADA
today to get
in touch
with CVR.
www.mada.org
7
LEGISLATIVE NEWS
Amber Backhaus
Director of Government Affairs
Assembling the Pieces to
Build a Strong Workforce State statistics on “occupations in demand” are bearing out what MADA Collision & Service Council
members already know: there is a definite shortage of qualified automotive service technicians
and mechanics. According to data from the Minnesota Department of Employment and Economic
Development (DEED), vacancies in transportation-related occupations make up over 15% of the
total job vacancies in Minnesota. With an aging workforce – over 10,000 Minnesotans turn 65
daily – the gap between skilled workers and job vacancies will continue to worsen.
To help combat the problem, the Minnesota Legislature is considering a variety of proposals to help
shrink the gap between the supply and demand of skilled workers. MADA is actively supporting
two of these efforts as they move through the legislative process:
The first, Senate File 2 /House File 340, calls for free two-year college tuition at any
Minnesota state community or technical college. The bill allows any Minnesota public or
private high school student to receive free tuition for two years if they meet satisfactory
requirements set by the college they are attending. Minnesota’s students have one of
the highest student debt loads in the nation at over $30,000. Hopefully this initiative can
lessen that load while encouraging more students to enroll in programs that teach the
skills needed to succeed in occupations in demand. State instructional programs that
develop workforce training for the transportation sector graduate approximately 826
vehicle maintenance and repair students per year, nowhere near enough to fill the 14,230
current job vacancies in these fields.
The second proposal, Senate File 5/House File 551, provides grants to expand dual
education opportunities through a public-private partnership allowing Minnesota
companies to invest in and develop the talent that the state economy needs to grow. Dual
education is a model that provides for more flexibility than traditional apprenticeship
programs by giving students work experience while they work toward earning a
postsecondary credential. Currently, the legislation is limited to the fields of advanced
manufacturing, health care, information technology, and agriculture. MADA is working to
add the transportation sector to the mix.
By advocating for these proposals, MADA is able to showcase to state policymakers that investing
in automotive education is a sound decision:
• Automotive and heavy duty-diesel repair jobs provide some of the highest median wages in
the transportation sector.
• These jobs are long-term and can provide a stable career for individuals.
8
www.mada.org
5526Plsld3.75x4.5JanMADAJan2015.pdf
1
1/2/15
3:21 PM
• These jobs are not subject to the boom-and-
bust cycles of other industries and cannot be
outsourced.
• The industry has a strong relationship with
the Minnesota State Colleges and Universities
(MnSCU) system which ensures students
are learning about the latest technologies to
prepare them for rapid changes in the industry
and economy.
Beyond promoting the workforce need at the
Capitol, the CSC is working on a multi-pronged
public awareness campaign to advertise the
benefits of jobs in the industry. The first is
a recruitment tool kit for dealers to use to
attract prospective employees. The second is
the development of NitroX, a summer camp to
introduce youth to the promise our industry holds.
To learn more about either program, contact CSC
Program Director Denise Anderson at
[email protected].
RV Trade-Ins = CA$H!
Pleasureland RV
Will Pay Cash For
Your RV, Truck
And SUV Trade-Ins!
RV BUY BIDS
TRUCK BUY BIDS
ST. CLOUD • 800-862-8603
Call Sal 763-218-9934
ST. CLOUD BUDGET LOT • 320-251-0650
Or Tim 320-251-7588
RAMSEY • 800-725-7740
BRAINERD • 800-514-1129
Find Us On
LONG PRAIRIE BUDGET LOT • 320-732-3949 Facebook & Twitter
www.pleasurelandrv.com
The Best of Both Worlds:
Soft-touch & Touch-free
now on one machine.
Introducing the Mark VII
Choicewash XT®. Decades of
proven Aquajet® Touch-free
technology and the unsurpassed
efficiency and effectiveness
of a Softwash XT® Soft-touch
automatic—truly two machines
in one! Choicewash XT® is an
industry first . . . One machine
that can deliver a top quality
wash in either mode and it’s
your customer’s choice!
For more information on
upgrading your car wash—
Call Reliable Plus today
800.782.8793
reliableplus.com
Minnesota • Wisconsin
North Dakota • South Dakota
www.mada.org
9
MAKING
DIFFERENCE
A
Does More
than Fix Cars
Some of us are joiners. We like to belong, see where
we fit, meet people, and be connected. It’s important
for us to make a difference - even just in our little
corner of the world. You may be one of us. We serve
as little league baseball coaches, church deacons and
Girl Scout leaders. We head up the local neighborhood
block party. We bring the grill.
Within MADA, we have an exemplary group of joiners. They are the
members of the MADA Collision & Service Council (CSC). The CSC is all about
joining in, meeting people, learning new things, connecting with peers,
having fun and of course… making a difference.
What began as an effort to build a collective voice to positively promote
fixed operations within MN dealerships has blossomed into a strong
organization that’s forward-thinking and working to get ahead of the
challenges facing the industry: unfair warranty reimbursement, insurermandated intrusions to operations, workforce shortages…
10
www.mada.org
Denise Anderson
Assistant Director of Collision & Service Council and Training
Jim Schutjer
General Council
CSC membership is open to people - not organizations. The
Council now boasts 175 members encompassing the collision,
parts and service repair sides of the business. In addition to these regular
memberships for dealership repair professionals, the Council has 15
associate members - friends of the industry,
The Council now boasts 175
vendors, suppliers and educational
institutions. Membership expanded rapidly
members encompassing the
during its first years of existence and with collision, parts and service repair
recruitment continuing to be a priority, the
sides of the business.
Council is poised for strong growth into
2016.
As we know, every organization needs its leaders. The CSC is no
exception. Leaders go out of their way to make the organization better
by devoting their valuable time, knowledge and energy. The CSC is no
different. Council leadership is in the form of an eight-person advisory
committee. Their mugs adorn the cover of this edition of MADA Dealer
Outlook. They are, as featured on the cover (l-r): Wayne Nielsen, Steve
Weisenberger, Mark Morcomb, Brian Steffensmeier, Tony Simoneau, Sid
Osterman (not pictured Tony Gerlach and Randy Jacobi).
MAKING a Difference
Some people might quibble with our premise and argue: What’s
the logic of expending resources to “make a difference” in a
business context where the only real goal is to make money? We
here at Dealer Outlook summarily reject that argument. Sure,
individual businesses compete every day in a win/lose market
environment to make money delivering quality products to
satisfied customers. Making a difference is different than that broader in scope. Sometimes we need to improve business by
altering the landscape where businesses compete. We might
work through our elected officials to clear away the debris
of outdated regulation and to build new and effective legal
www.mada.org
Mark Morcomb(l), Luther Automotive
and Council President along with Jim
Falteisek, 3M Automotive Division.
11
MAKING A DIFFERENCE (cont...)
prohibitions against anti-competitive and abusive business practices.
We could seek ways to bring quality people into our industry through
incentives on the one hand and knocking down entry barriers on the
other. What do all these initiatives have in common? They’re game
changers. The sum is positive. We “make a difference” when we step
past our day-to-day activities and work to make business do more for all
of us - workers, customers, and industry alike.
First Steps
Changing the game is not easy. MADA’s Collision & Service Council was
successful with a modest but significant legislative initiative last year.
The Council Advisory Committee urged the MADA Board of Directors
to actively seek legislation to reduce the complexity of foreclosing on a
shop lien. MADA adopted the Council’s recommendation and successfully
passed legislation to permit dealer shops to sell vehicles being held for a
repair or storage bill in a far less difficult manner. Dealer shops may now
bypass antiquated “sheriff’s sales.” This old procedure had been around
since the year 1907 and was filled with complex legalese disclosures and
notices.
This year, workforce development is the Council’s focus, with efforts
both inside and outside the Minnesota State Capitol. The
collision and repair business has a huge need for well-trained
and educated newcomers with the technical talent and desire
to build a career. The Council is actively supporting legislative
efforts to incentivize students and potential workers. Turn back
to page 8 in this edition of Dealer Outlook for a closer look.
Looking Ahead
Jeff Siegfried, Inver Grove Ford, points
out the differences between a VW OEM
headlight and aftermarket part.
12
There’s much more to accomplish at the Legislature. We need
fairer practices from the motor vehicle manufacturers when
reimbursing dealers for warranty labor and warranty parts.
There’s no dispute that dealers should be compensated fairly
for the labor and parts they expend repairing vehicles under
the terms of a factory warranty. Going further, there’s wide
www.mada.org
agreement that dealers should be reimbursed for warranty
repairs at “retail.” Dealers don’t have a choice of whether to
perform warranty services. They are contractually obligated
under their franchise agreements. If dealers are paid less
for warranty work than their other customer-pay service
work, a natural incentive will operate to discriminate against
warranty customers and put them to the back of the line.
As lawsuits around the country settle down, the legislative
climate turns more favorable to open up the issue of unfair
warranty reimbursement. The issue is clearly on the minds of
dealers for upcoming sessions.
More than meets the eye….. John Krostag,
Luther Automotive, shows that the damage
is more than just a fender bender, and why
your dealer is the place to take it for repair.
Elephant in the room
And of course the elephant in the room - the insurance companies and
the incredible power that they exert over collision repair and crash parts
distribution.
For the most part, insurance companies are good corporate citizens.
They provide a wealth of coverages, products and services. They
compete in a crowded national marketplace for customers, market share
and profit margins just like Council members do. They are also operated
by hard-nosed and competent business people.
It’s difficult to blame them for using whatever power they can bring
to bear. And use it they do. Insurance companies and collision centers
are both required players in the drama that plays out after a customer
crashes their car. We’re business partners each playing a role in a series
of scenes beginning with the customer’s first anxious call for a tow and to
a hopefully happy conclusion in a beautifully repaired vehicle.
Even though we’re both required players, we’re not even
close to being equals. Why? It’s about numbers. There are
only a handful of insurance companies who act as payers
in a multi-billion dollar industry. Money is concentrated.
Their “partners” or perhaps “pawns” are the small business
collision repair shops which number in the thousands.
www.mada.org
13
MAKING A DIFFERENCE (cont...)
Insurance companies have always bullied collision centers. If it’s not
aftermarket parts or steering, it’s mandatory estimating systems,
accounting packages and financial practices. They bully us on training,
equipment and of course, price.
The issue of the day is mandatory online parts ordering systems typically described generically as “PartsTrader.” But PartsTrader is just
the bully’s new playground. It’s not really different in character from
many of the abuses of the past. Collision repair shops have a long history
of standing up for themselves and consumers by aggressively seeking
legislative action to curb the insurers’ most egregious conduct and
adding some notion of fairness to the relationship. Good work has been
done. But much, much more needs doing.
The Collision & Service Council and MADA staff have some ideas
on legislation to break the tie between referrals and required shop
practices. It won’t be easy. Making a difference by fighting for what’s fair
never is.
Now, rewind to the 2013 Winter issue
The CSC is tackling industry
this very publication. It was in that
issues, winning legislation, and of
magazine that MADA introduced the
starting initiatives
Collision & Service Council to MADA
members with a cry to “Muscle Up!” Initially launching the Council to
advocate for dealership repair work and a means to respond to AASP’s
negative dealership advertising, the CSC took the high
road. We didn’t need to knock the independents to make a
difference.
The CSC is tackling industry issues, winning legislation,
and starting initiatives never before addressed for the
betterment of MADA dealerships and the industry. But one
of our primary focuses not to be overlooked: promoting
dealership repair work. With the Council’s inaugural exhibit
at the auto show in March, adopting the tagline, “Nobody
knows your car better than your dealer,” has taken this
meaning to a new level. If you missed the exhibit or missed
the reception, you missed seeing the efforts of the Advisory
14
www.mada.org
Committee to position this organization to expand and build
on this premise. The photos tell the story. Great participation,
wonderful camaraderie and belonging. As the Council gains
recognition, it also builds momentum.
From the “Trash-to-Treasure” parts donation program, to
the $25,000 grant to pilot an automotive summer camp,
to accelerated recruitment efforts and OSHA compliance
training, as well as the many ongoing and successful
initiatives of the Council, it is also about meeting people,
having fun and belonging. Belonging to make a difference.
Council members Nick Sundby, Chris O’Hara
and David Miller, of Miller Auto Plaza, St.
Cloud along with Sid Osterman, The Body
Works, Brainerd, take time for a photo op at
the Council’s auto show reception.
better together
Welcome to Blue Cross and Blue Shield of Minnesota. Together, the
Minnesota Automobile Dealers Association and Blue Cross are offering
you and your employees:
➜➜
More choice – The largest network of providers in the state delivers
value and preserves provider choice
➜➜
Better value – More benefit plan options make it easy to choose a plan
that fits your health care needs and your budget
➜➜
Bigger savings – Working with providers, Blue Cross rewards quality
of care to deliver you bigger savings
➜➜
Added convenience – From retail clinics to online care options, we
make it convenient for your employees to get the care they need
Find out how to
accelerate your
health care savings.
Contact your Blue Cross
sales representative or
call MADA Insurance at
(651) 291-2400 or
1-800-652-9029.
Blue Cross® and Blue Shield® of Minnesota and Blue Plus® are nonprofit independent licensees of the Blue Cross and Blue Shield Association.
www.mada.org
15
Dealers Are Good Neighbors
MADA salutes Minnesota new vehicle dealerships and dealership employees
who make their communities a better place to live.
St. Cloud
Toyota
Scion
presented
a check for
$11,100 to
the Coborn
Cancer
Center.
During the
“Pink October” event, a $50 donation was made to the
Center for every car that was purchased. The $6,100
was matched with a $5,000 contribution from the
Toyota Match Program.
Chuck Spaeth Ford, New Ulm-Sleepy Eye, donated
a car to a woman whose home was destroyed by a fire
in November 2014. The car will be invaluable to her
commute to South Central College in Mankato.
Rochester Toyota Scion’s committed staff
made a very chilly jump for the Minnesota Special
Olympics. This year marked the company’s eighth year
participating in the Polar Plunge. Wind chill was -25
degrees! Over $21,000
was raised this year,
bringing the total for the
eight years to $61,000!
The dealership raised
the most money in the
small business category
of 250 or less employees
and came in fifth in all
corporate categories in
the state. Way to go!
16
(Pictured l-r) Sara Dvorak, Jackson United Fund; Chris Drew,
Jackson Ministerial Association, Todd Asa; Ed Eigenberg Windom
Ministerial Association; Justin Storm, Windom hockey Association;
and Joel Timmerman, Riverside Elementary School in Jackson.
Asa Auto Plaza of Jackson donated a portion of
its annual “Countdown to 100” end-of-year sales
promotion proceeds back to several community causes.
The auto dealership donates a portion of each sale to
causes that the customers suggest. Six local charities
received checks for $500.
The Greater Metro Automobile Dealers
Association sponsored the Child Passenger Safety
Associates at the Twin Cities Auto Show on both
weekends of the show. Out of the 123 seats that were
checked, four were installed correctly. Nineteen car
seats were also distributed to families who had expired
seats or where the
child had outgrown
the seat they were
using.
www.mada.org
Minnesota
Chevrolet
Dealers annually
join together
to donate a
new Chevrolet
Silverado 4x4 truck
as a grand prize
(Pictured l-r) Josh Wolf (1), Darin Anderson in a fundraiser
(l) and Tom Noss from Marthaler Chevrolet for Ducks
Unlimited. Each $250 raised translates into one more
acre of wetland preserved for waterfowl and wildlife
in North America. This year’s winner was Josh Wolf of
2014
Glenwood. He selected the2014
winning key and
will pick up
2014
2014
his new Chevrolet Silverado at Marthaler Chevrolet
in
Annual
Annual
Glenwood.
41st
st
Goodwill Easter Seals was the official charity
sponsored this year by the Twin Cities Auto Show.
Approximately 600 lbs. of donated goods were collected
and will be used to ensure 50 hours of on-the-job
training for the community. Goodwill maintains a
strong belief in the transformative power of work to
change individuals, families and
communities. They provide
services to individuals who
have any number of barriers
Send
that prevent them from
YOUR good news
achieving their goals. All
to Sandy at
services are offered at no
[email protected]
cost to eligible program
participants.
41st
st
For REF
In 2014
42 ual
nd
New 2015
W/Fonts
Ann2015
11,816 Registered
Vehicles and over 325
Commercial Vendors
135 Crafters
400 Swappers
New 2015
outlined
Dance to Live 50’s Music Friday and Saturday Evening!
June 19, 20 & 21, 2015
msra.com
www.mada.org
17
MINUTES
TCAS Opening Night Party
Over 350 partygoers enjoyed the opening night
festivities of the 2015 Twin Cities Auto Show.
18
www.mada.org
©2014 CliftonLarsonAllen LLP
FIND OPPORTUNITY
Tune up your tax plan with professionals
who aren’t afraid to get their hands dirty.
Audit
19
Tax
Consulting
Outsourcing
Wealth Advisory
Investment advisory services are offered through CliftonLarsonAllen Wealth Advisors, LLC, an SEC-registered investment advisor.
612-376-4500
www.mada.org
CLAconnect.com/dealerships
FORECAST
Another
Increase Predicted for State New Vehicle Market in 2015
FORECAST
Comprehensive Information on the
Another Increase Predicted for
State New Vehicle
MarketMarket
in 2015
Minnesota
Automotive
Forecasting automotive sales is a delicate balancing act. There are frequently conflicting indicators that can provide mixed
This
year’s increase
the 4.6% improvement in 2014; market is up 68% between ‘09 and ‘14
MINNESOTA
AUTOfollows
OUTLOOK
This
increase
follows The
the trick
4.6%
2014; separating
market is the
up meaningful
68% between
‘14
signals
on year’s
future market
conditions.
is improvement
identifying theseintrends,
from ‘09
the and
meaningless,
FORECAST
and forming a consensus on where the market is headed. Below, we identify the key positive and negative forces that are
likely Forecasting
to impact the
market in sales
2015.is a delicate balancing act. There are frequently conflicting indicators that can provide mixed
automotive
on future market conditions. The trick is identifying these trends, separating the meaningful from the meaningless,
Thissignals
year’s
increase
follows
the 4.6% improvement in 2014; market is up 68% between ‘09 and ‘14
Forces
market
higher
andleading
formingthe
a consensus
on where the market is headed. Below, we identify the key positive and negative forces that are
likely to impact
the market
Forecasting
automotive
sales inis 2015.
a delicate balancing act. There are frequently conflicting indicators that can provide mixed
• Low interest rates and mild inflation growth have kept new vehicle affordability at historically strong levels. Many
signals
on
future
market
conditions.
The trick is identifying these trends, separating the meaningful from the meaningless,
Forces
leading the
higher
economists
are market
expecting
a slight increase in interest rates in 2015, but wages are likely to move higher and gas
and forming
a consensus
where
the give
market
is headed.
Below, incomes.
we identify the key positive and negative forces that are
prices
have fallen, on
which
should
a boost
to disposable
• Low the
interest
ratesinand
mild inflation growth have kept new vehicle affordability at historically strong levels. Many
likely to impact
market
2015.
economists
are expecting
a slight
in interest
in 2015,
but wages
likely tothis
move
higher
and gas
• Payrolls
grew steadily
during 2014,
and increase
the majority
of laborrates
market
economists
are are
expecting
trend
to continue
Forces leading
theEmployment
market
higher
prices
have fallen,
which
boost to impressive
disposable incomes.
in 2015.
levels should
have give
beena posting
increases, while the unemployment rate is down
the highs
in 2009.
is an obvious
plus for new
vehicle
sales.
• Lowconsiderably
interest ratesfrom
and mild
inflation
growthIncreasing
have kept employment
new vehicle affordability
at historically
strong
levels.
Many economists are
• Payrolls grew steadily during 2014, and the majority of labor market economists are expecting this trend to continue
expectingina 2015.
slight increase
in
interest
rates
in
2015,
but
wages
are
likely
to
move
higher
and
gas
prices
have
fallen, which
should
have been
posting
impressive
the The
unemployment
is down
• Pent up demandEmployment
and benefitslevels
to “upgrade”
should
continue
to give increases,
the market while
a boost.
average agerate
of vehicles
giveon
a boost
to disposable
incomes.
considerably
from10
theyears,
highs which
in 2009.
Increasing
employment
is an obvious
new vehicle
sales. that due to
the
road
exceeds
based
on historical
standards,
is very plus
high.for
Some
have argued
• Payrolls
grew steadily
during 2014,
and the majority
market economists
are expecting
thistotrend
to continue
2015.
improvements
in quality
and durability,
this is of
to labor
be expected,
and the time-line
needed
replace
vehiclesin is
• Pent up
demand
toimpressive
“upgrade”
should
toimproved
give
the market
boost.
The considerably
average
age from
of vehicles
Employment
levels
have
beenbenefits
posting
increases,
while the
unemployment
iseconomy,
down
the
stretching
out.
But and
this
only
tells
part of the
story.continue
Greatly
safety,arate
fuel
performance,
andhighs
on the road
exceeds
10and
years, which
based on
standards,
high. Some
thatvehicle
due to
technology
in today’s
cars
a historical
powerful
motivation isforvery
consumers
to have
enterargued
the new
in 2009.
Increasing
employment
is an trucks
obviousprovides
plus for new
vehicle sales.
improvements in quality and durability, this is to be expected, and the time-line needed to replace vehicles is
The average
ten to
year-old,
2005 model
year vehicle
can’t
even come
close
to
a new,age
2015 vehicles
model. From
a
• Pentmarket.
up demand
andout.
benefits
“upgrade”
to give
the market
a boost.
The
average
on the
stretching
But this
only tells should
part ofcontinue
the story.
Greatly
improved
safety,
fuel
economy, of
performance,
androad
car owner’s standpoint, the motivation to upgrade is powerful.
in today’s
and trucks
provides
a powerful
motivation
for consumers
enter the new
vehicle and
exceeds technology
10 years, which
based cars
on historical
standards,
is very
high. Some
have argued
that due totoimprovements
in quality
market.
The
average
ten
year-old,
2005 model
year
vehiclevehicles
can’t even
come close
toBut
a new,
2015
model.
From
a
durability,
this
is
to
be
expected,
and
the
time-line
needed
to
replace
is
stretching
out.
this
only
tells
part
of
the story.
Forces holding
the market back
car owner’s standpoint, the motivation to upgrade is powerful.
Another Increase Predicted for State New Vehicle Market in 2015
Greatly improved safety, fuel economy, performance, and technology in today’s cars and trucks provides a powerful motivation
•Forces
U.S. economic
growth
was
solid
for most
2014, the
economy
has slowed
considerably.
in a to a
forWhile
consumers
tothe
enter
the
new
vehicle
market.
Theofaverage
ten global
year-old,
2005 model
year vehicle
can’t evenJapan
comeisclose
holding
market
back
recession,
Chinese
growth
has
slowed,
and
Europe
appears
to
be
on
the
verge
of
a
recession,
with
deflation.
new, 2015 model. From a car owner’s standpoint, the motivation to upgrade is powerful.
Continued
weakness
in growth
the global
could
eventually
impact
the U.S.
in slowed
the form
of slower employment
• While U.S.
economic
was economy
solid for most
of 2014,
the global
economy
has
considerably.
Japan is in a
Forces holding
the
back
growth,
andmarket
stagnant
incomes.
recession,
Chinese
growth has slowed, and Europe appears to be on the verge of a recession, with deflation.
Continued
in the
economy
could
impacthas
theslowed
U.S. inconsiderably.
the form of Japan
slowerisemployment
• While U.S.
economicweakness
growth was
solidglobal
for most
of 2014,
the eventually
global economy
in a recession,
• Household
balance
sheets. incomes.
Consumers have made considerable headway in reducing debt, but are largely hesitant
growth,
and stagnant
Chinese
growth
has
slowed,
and
Europe
appears
to
be
on
the
verge
of
a
recession,
with
deflation.
Continued
weakness
in the
to fund increases in spending by adding on more debt. In addition, many have insufficient savings for retirement,
global
economy
could
eventually
impact
the
U.S.
in
the
form
of
slower
employment
growth,
and
stagnant
incomes.
necessitating
further restraint
in retail spending.
• Household balance
sheets. Consumers
have made considerable headway in reducing debt, but are largely hesitant
• Household
balance
sheets.inConsumers
have
made
reducing
but are
largelyforhesitant
to fund
to fund
increases
spending by
adding
on considerable
more debt. Inheadway
addition, inmany
have debt,
insufficient
savings
retirement,
necessitating
further
restraint
in retail
spending.
Wrapincreases
up: Positive
factors by
will
likely
lead
the
market
higher inmany
2015,have
but insufficient
we believesavings
that the
factors
will placefurther
a
in spending
adding
on more
debt.
In addition,
fornegative
retirement,
necessitating
ceilingrestraint
on howinhigh
new
vehicle
sales
will
go,
and
we
could
approach
that
ceiling
by
2016.
retail spending.
Wrap up: Positive factors will likely lead the market higher in 2015, but we believe that the negative factors will place a
on how factors
high newwill
vehicle
and wehigher
could approach
that we
ceiling
by 2016.
Wrapceiling
up: Positive
likelysales
leadwill
thego,market
in 2015, but
believe
that the negative factors will place a
ceiling
on how
new vehicle
sales Market
will go, and we could approach that ceiling by 2016.
Annual
Trendhigh
in State
New Vehicle
Market Review
% Chg.
Market
MarketReview
Review
2013
TOTAL
250,000
200,000 250,000
New light vehicle registrations
New light vehicle registrations
New light vehicle registrations
Annual
Trend
in State
Vehicle
Market
Annual
Trend
in State
NewNew
Vehicle
Market
183,264
150,000 200,000
169,988
154,312
100,000 150,000
50,000 100,000
0 50,000
2008
0
127,662
154,312
132,931
127,662
2009
2008
Source: IHS Automotive.
183,264
214,075
204,590
214,075
222,000
169,988
132,931
2010
2009
204,590
222,000
2011
2010
Source:
IHS IHS
Automotive.
Source:
Automotive.
2012
2011
2013
2012
2014 x
2013
2015
Forecast
2014 x 2015
Forecast
CarTOTAL
Light Truck
Car
Light Truck
Domestic**
European
Domestic**
Japanese
European
Korean
Japanese
Korean
2014 '13 to '14*
% Chg.
204,590
214,075
4.6%
2013
2014 '13 to '14*
204,590
83,346
Mkt. Share
2014
Mkt. Share
2014
214,075
78,236
4.6%
-6.1%
36.5%
121,244
135,839
83,346
78,236
121,244
135,839
106,809
112,921
12.0%
-6.1%
12.0%
5.7%
63.5%
36.5%
63.5%
52.7%
13,880
106,809
69,421
13,880
14,480
69,421
12,970
112,921
74,903
12,970
13,281
74,903
-6.6%
5.7%
7.9%
-6.6%
-8.3%
7.9%
6.1%
52.7%
35.0%
6.1%
6.2%
35.0%
14,480
13,281
-8.3%
6.2%
**Domestic consists of Detroit Three brands and Tesla.
**Domestic
consists
ofofDetroit
**Domestic
consists
DetroitThree
Threebrands
brandsand
andTesla.
Tesla.
Source: IHS Automotive.
Automotive.
Source: IHS Automotive.
20
www.mada.org
Brand Registrations Report
Minnesota New Retail Car and Light Truck Registrations
TOTAL
Last Three Months November '14 thru January '15*)
Annual Totals
Registrations
Market Share (%)
Registrations
Market Share (%)
2013
2014% change
2013
2014 Change
Previous Current% change Previous Current Change
48,810 53,877
10.4
204,590 214,075
4.6
Cars
Light Trucks
17,217
31,593
17,242
36,635
0.1
16.0
35.3
64.7
32.0
68.0
-3.3 83,346 78,236
3.3 121,244 135,839
-6.1
12.0
40.7
59.3
36.5
63.5
-4.2
4.2
Domestic Brands**
European Brands
Japanese Brands
Korean Brands
26,551
3,107
16,187
2,965
29,644
3,197
18,098
2,938
11.6
2.9
11.8
-0.9
54.4
6.4
33.2
6.1
55.0
5.9
33.6
5.5
0.6 106,809 112,921
-0.5 13,880 12,970
0.4 69,421 74,903
-0.6 14,480 13,281
5.7
-6.6
7.9
-8.3
52.2
6.8
33.9
7.1
52.7
6.1
35.0
6.2
0.5
-0.7
1.1
-0.9
Acura
408
443
Audi
415
413
BMW
667
703
Buick
864
979
Cadillac
397
332
Chevrolet
7,778
8,609
Chrysler
648
915
Dodge
1,234
1,389
FIAT
49
40
Ford
9,604
9,586
GMC
1,976
2,536
Honda
3,894
4,196
Hyundai
1,505
1,365
Infiniti
267
237
Jaguar
15
19
Jeep
1,933
2,601
Kia
1,460
1,594
Land Rover
116
115
Lexus
552
599
Lincoln
309
352
Mazda
887
915
Mercedes
540
563
MINI
132
138
Mitsubishi
407
485
Nissan
2,168
2,723
Other
54
39
Porsche
41
54
Ram
1,747
2,313
Subaru
2,131
2,817
Tesla
33
27
Toyota
5,468
5,620
Volkswagen
937
951
Volvo
174
209
Top ten brands are shaded yellow.
8.6
-0.5
5.4
13.3
-16.4
10.7
41.2
12.6
-18.4
-0.2
28.3
7.8
-9.3
-11.2
26.7
34.6
9.2
-0.9
8.5
13.9
3.2
4.3
4.5
19.2
25.6
-27.8
31.7
32.4
32.2
-18.2
2.8
1.5
20.1
0.8
0.9
1.4
1.8
0.8
15.9
1.3
2.5
0.1
19.7
4.0
8.0
3.1
0.5
0.0
4.0
3.0
0.2
1.1
0.6
1.8
1.1
0.3
0.8
4.4
0.1
0.1
3.6
4.4
0.1
11.2
1.9
0.4
0.8
0.8
1.3
1.8
0.6
16.0
1.7
2.6
0.1
17.8
4.7
7.8
2.5
0.4
0.0
4.8
3.0
0.2
1.1
0.7
1.7
1.0
0.3
0.9
5.1
0.1
0.1
4.3
5.2
0.1
10.4
1.8
0.4
0.0
-0.1
-0.1
0.0
-0.2
0.1
0.4
0.1
0.0
-1.9
0.7
-0.2
-0.6
-0.1
0.0
0.8
0.0
0.0
0.0
0.1
-0.1
-0.1
0.0
0.1
0.7
0.0
0.0
0.7
0.8
0.0
-0.8
-0.1
0.0
1,605
1,481
2,814
4,023
1,610
31,866
3,849
6,590
309
38,190
7,468
17,267
6,855
881
57
5,745
7,625
389
2,192
1,131
4,260
1,974
709
1,172
9,731
259
219
6,134
8,010
109
24,214
5,038
814
1,662
1,757
2,598
4,114
1,444
32,195
3,629
6,968
259
37,521
8,281
18,135
6,112
887
70
9,498
7,169
345
2,360
1,146
4,429
2,128
534
2,159
10,555
197
280
7,935
10,516
98
24,192
4,221
681
3.6
18.6
-7.7
2.3
-10.3
1.0
-5.7
5.7
-16.2
-1.8
10.9
5.0
-10.8
0.7
22.8
65.3
-6.0
-11.3
7.7
1.3
4.0
7.8
-24.7
84.2
8.5
-23.9
27.9
29.4
31.3
-10.1
-0.1
-16.2
-16.3
0.8
0.8
0.0
0.7
0.8
0.1
1.4
1.2
-0.2
2.0
1.9
-0.1
0.8
0.7
-0.1
15.6
15.0
-0.6
1.9
1.7
-0.2
3.2
3.3
0.1
0.2
0.1
-0.1
18.7
17.5
-1.2
3.7
3.9
0.2
8.4
8.5
0.1
3.4
2.9
-0.5
0.4
0.4
0.0
0.0
0.0
0.0
2.8
4.4
1.6
3.7
3.3
-0.4
0.2
0.2
0.0
1.1
1.1
0.0
0.6
0.5
-0.1
2.1
2.1
0.0
1.0
1.0
0.0
0.3
0.2
-0.1
0.6
1.0
0.4
4.8
4.9
0.1
0.1
0.1
0.0
0.1
0.1
0.0
3.0
3.7
0.7
3.9
4.9
1.0
0.1
0.0
-0.1
11.8
11.3
-0.5
2.5
2.0
-0.5
0.4
0.3
-0.1
Source: IHS Automotive
Any material quoted must be attributed to Minnesota Dealer Outlook, and must also include the statement: “Data Source:
IHS Automotive.” Unforeseen events may affect the forecast projections presented. Consequently, Auto Outlook, Inc. is not
responsible for management decisions based on the content of Minnesota Dealer Outlook.
Any material quoted must be attributed to (name of the publication), and must also include the statement:
“Data Source: IHS Automotive.” Unforeseen events may affect the forecast projections presented.
Consequently, Auto Outlook, Inc. is not responsible for management decisions based on the content of (name
of publication).
www.mada.org
21
MARKET TRACKER: BRAND MARKET SHARE
MARKET TRACKER: BRAND MARKET SHARE
MARKET TRACKER: BRAND MARKET SHARE
Japanese
Brands
Gain Market
in 2014;
Korean
Brands
Japanese
Brands
Gain Market
ShareShare
in 2014;
Korean
Brands
Fall Fall
Japanese
Brands
Gain Market
Share
in 2014;
Korean
Brands
Fall
Change in State Market Share: 2014 Annual total vs. 2013
MARKET TRACKER: BRAND MARKET
SHAREin State Market Share: 2014 Annual total vs. 2013
Change
Change in State Market Share: 2014 Annual total vs. 2013
Japanese Brands Gain Market Share in 2014; Korean Brands Fall
Change in State Market Share: 2014 Annual total vs. 2013
Japanese
Japanese brand share increased by
Japanese brand
Japanese
1.1share
shareincreased
points in by
2014. Domestic
Japanese
share increased by
1.1 share points
in 2014.
Domestic
brand
sharebrand
also increased.
share points in 2014. Domestic
brand share also1.1
increased.
Domestic
brand share also increased.
Domestic
Domestic
Japanese
European
European
Korean
Korean
Korean
-2.0
-1.5
-2.0
-2.0
Source: IHS Automotive.
Source: IHS Automotive.
Source: IHS Automotive.
-0.9
-1.5
-1.0
-1.5
0.5
1.1
0.5
0.5
-0.7
-0.7
European
1.1
1.1
-0.7
-0.9
-0.9
-1.0
-0.5
0.0
-0.5
0.0
0.5
Change
in
market
share
-1.0
0.0
x -0.5
Change in market
share
x ChangeChange
in market
share
in market
share
0.5
1.0
0.5
1.0
1.5
1.0
1.5
1.5
x
MARKET TRACKER: HYBRID AND ELECTRIC VEHICLES
MARKET TRACKER: HYBRID AND ELECTRIC VEHICLES
MARKET TRACKER: HYBRID AND ELECTRIC VEHICLES
Hybrid
& Electric
Vehicle
Market
Share
Declined
to4Q
2%
4Q ‘14
Hybrid
&
Electric
Vehicle
Market
Share
Declined
to
2%
‘14
Hybrid & Electric Vehicle Market Share Declined to 2% 4Q ‘14
MARKET TRACKER: HYBRID AND ELECTRIC VEHICLES
Quarterly Alternative Powertrain Market Share
Quarterly Alternative Powertrain Market Share
(includes
hybrid and
electric vehicles)
Quarterly
Alternative
Powertrain
Market Share
(includes
and electric
vehicles)
Quarterlyhybrid
Alternative
Powertrain
Marketvehicles)
Share
(includes hybrid and electric
(includes hybrid and electric vehicles)
Hybrid & Electric Vehicle Market Share Declined to 2% 4Q ‘14
4.0%
3.5%
3.0%
2.5%
2.0%
1.5%
1.0%
0.5%
0.0%
4.0%
Trendline
3.5%
4.0%Trendline
Trendline
3.0%
3.5%
2.5%
3.0%
2.0%
2.5%
1.5%
2.0%
1.0%
1.5%
0.5%
1.0%
Alternative powertrain market share has trended
Alternative powertrain
market
higher during
theshare
past has
threetrended
years, but declined
powertrain
market
higher during the
past in
three
years,
declined
toAlternative
2.0%
the
Fourthbut
Quarter
ofshare
2014.has trended
higher Quarter
during the
past three years, but declined
to 2.0% in the Fourth
of 2014.
to 2.0% in the Fourth Quarter of 2014.
0.0%
0.5%
Total
4004
Total
3267
4004
3251
3267
5196
3251
6677
5196
5608
6677
5608
Source: IHS Automotive
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Source:
Automotive
New IHS
registrations
of hybrid and electric
0.0%
Q1 Q2
Q3'11
Q4'11
Q1'11
Q2'11
Q3'12
Q4'12
Q1'12
Q2'12
Q3'13
Q4'13
Q1'13
Q2'13
Q3'14
Q4'14 '14 '14
vehicles were 5,608 units in 2014, well
'11 '11 '11 Q1
'11 Q2
'12 Q3
'12 Q4
'12 Q1
'12 Q2
'13 Q3
'13 Q4
'13 Q1
'13 Q2
'14 Q3
'14 Q4
'14 Q1
'14 Q2 Q3 Q4
'11 '11 '11 '11 '12 '12 '12 '12 '13 '13 '13 '13 '14 '14 '14 '14
Newtheregistrations
of hybrid
below
2013 total.
Source: IHS Automotive.
Source: IHS Automotive.
Source: IHS Automotive.
Source: IHS Automotive.
22
Year
2009
2010
2011
2012
2013
2014
State Hybrid and Electric Vehicle
State Hybrid and Electric Vehicle
NewHybrid
Retailand
Registrations
State
Electric Vehicle
New Retail
Registrations
2009
thru
2014
New
Retail
Registrations
2009 thru 2014
Plug
in
Plug2009
in thru 2014
hybrids
Year
Hybrids
Plug in Electrics
hybrids Electrics
Total
Hybrids
2009
3996
0
8
hybrids
Electrics
Year 3996
Hybrids
0
8
4004
2010
3260
0
7
2009 3260
3996
0
7 0 3267 8
2011
3176
63
12
2010 3176
3260
63
12 0 3251 7
2012
4762
31963
11512
2011 4762
3176
319
115
5196
2013
6037
364
276
2012 6037
4762
319 6677
115
364
276
2014
5034
318
256
2013 5034
6037
364 5608
276
318
256
Source:
2014 IHS Automotive 5034
318
256
New registrations of hybrid
and
vehicles
were
New electric
registrations
and electric
vehicles
wereof hybrid
2014, were
well
5,608
units invehicles
and
electric
5,608 units in 2014, well
below
theunits
2013 in
total.2014, well
5,608
below the 2013 total.
below the 2013 total.
www.mada.org
MARKET TRACKER: SEGMENTS
Compact SUV Market Share Increased by 3.8 Points in 2014
Small cars lose market share
MARKET TRACKER: SEGMENTS
Compact SUV Market Share Increased by 3.8 Points in 2014
Change in Segment !Market Share
2014 versus 2013
Small cars lose market share
Change in Segment Market Share
Minnesota and U.S. !New Vehicle Markets
2014 versus 2013
Typical models in segments:
Minnesota and U.S. New Vehicle Markets
Car: Hyundai Elantra
TypicalSmall
models
in segments:
Mid Size & Large Car: Toyota Camry
Small
Hyundai
Elantra
LuxuryCar:
& Sports
Car: BMW
3-Series
Pickup:
FordCamry
F-Series
Mid Size & Large Car:
Toyota
Van:BMW
Honda3-Series
Odyssey
Luxury & Sports Car:
Compact
SUV:
Jeep
Liberty
Pickup: Ford F-Series
Mid Size SUV: Jeep Grand Cherokee
Van: Honda Odyssey
Full Size SUV: Chevrolet Tahoe
Compact SUV:
Jeep Liberty
Luxury SUV: Lexus RX
Mid Size SUV: Jeep Grand Cherokee
Full Size SUV: Chevrolet Tahoe
Luxury SUV: Lexus RX
Compact SUV
Full Size SUV
Luxury SUV
Pickup
Mid Size SUV
Luxury and Sports Car
Van
MN
US
Mid Size and Large Car
Small Car
-4.0
-3.0
-2.0
Source:
IHS Automotive.
Source: IHS Automotive.
www.mada.org
-1.0
0.0
1.0
2.0
3.0
4.0
Change in market share
23
Jeep, Subaru, Ram, and Porsche also had big increases
The graph below shows the percent change in new retail light vehicle registrations in Minnesota from 2013 to
2014. Mitsubishi had the largest percentage increase (up 84%). Jeep, Subaru, Ram, and Porsche were all up
by more
than 20%. ONE
BRAND
SCOREBOARD-PART
Mitsubishi Had Biggest Percentage Increase in 2014
Jeep, Subaru, Ram, and Porsche also had big increases
The graph below shows the percent change in new retail light vehicle registrations in Minnesota from 2013 to 2014. Mitsubishi had the
Percent Change in Minnesota New Retail Light Vehicle Registrations for Top 30 Selling Brands
largest percentage increase (up 84%). Jeep, Subaru, Ram, and Porsche were all up by more than 20%.
2014 vs. 2013
Percent Change in Minnesota New Retail Light Vehicle Registrations for Top 30 Selling Brands
2014 vs. 2013
Mitsubishi
Jeep
Subaru
Ram
Porsche
Audi
GMC
Nissan
Mercedes
Lexus
Dodge
Honda
Mazda
Acura
Buick
Lincoln
Chevrolet
Infiniti
Toyota
Ford
Chrysler
Kia
BMW
Cadillac
Hyundai
Land Rover
FIAT
Volkswagen
Volvo
MINI
-40.0%
-20.0%
0.0%
20.0%
40.0%
60.0%
80.0%
100.0%
Source: IHS Automotive.
Source: IHS Automotive.
24
www.mada.org
Ford and Chevrolet Are Relatively Strong Performers in State
Subaru, Ram, GMC, Buick, and Mitsubishi also rank high
BRAND SCOREBOARD-PART TWO
The graph below provides an indicator of brands that are popular in Minnesota (relative to the National
standard),
and those that
areRelatively
not. Here’s how
it works:
For the top 30
Ford
and Chevrolet
Are
Strong
Performers
in selling
State brands in the state, each brand’s
share of
theGMC,
U.S.Buick,
market
is Mitsubishi
multiplied by
in the state during 2014. This yields a “target” for
Subaru,
Ram,
and
alsoretail
rankregistrations
high
the state market. Target registrations are subtracted from actual registrations to derive the measurement of
The graph below provides an indicator of brands that are popular in Minnesota (relative to the National standard), and those that are not.
sales performance. Brands at the top of the graph (i.e., Ford, Chevrolet, Subaru, Ram, GMC, Buick, and
Here’s how it works: For the top 30 selling brands in the state, each brand’s share of the U.S. market is multiplied by retail registrations
Mitsubishi) are relatively strong sellers in the state, with actual registrations exceeding the calculated target by
in the state during 2014. This yields a “target” for the state market. Target registrations are subtracted from actual registrations to derive
a large margin. For instance, Ford registrations exceeded the target by 10,833 units.
the measurement of sales performance. Brands at the top of the graph (i.e., Ford, Chevrolet, Subaru, Ram, GMC, Buick, and Mitsubishi)
are relatively strong sellers in the state, with actual registrations exceeding the calculated target by a large margin. For instance, Ford
registrations exceeded the target by 10,833 units.
Minnesota Retail Market Performance based on registrations for 2014
Actual registrations
minus
industry
registrations
times
Minnesota
Retailtarget
Market(state
Performance
based
on registrations
forU.S.
2014market share)
Actual registrations minus target (state industry registrations times U.S. market share)
10833
Ford
9945
Chevrolet
2548
Subaru
2088
Ram
1542
GMC
1186
Buick
1003
Mitsubishi
804
Chrysler
421
Dodge
127
Mazda
Volvo
-62
Jeep
-67
Lincoln
-105
MINI
-305
FIAT
-390
Porsche
-406
Land Rover
-418
-603
Volkswagen
Kia
-723
Infiniti
-793
Acura
-833
Audi
-888
Cadillac
-969
BMW
-2267
Lexus
-2285
-2770
Mercedes
-2933
Hyundai
-3078
Honda
-4569
Toyota
Nissan
-8,000
-5493
-6,000
Data Source: IHS Automotive.
-4,000
-2,000
0
2,000
4,000
6,000
8,000
10,000
12,000
Actual registrations minus target (state industry registrations times U.S. market share)
Data Source: IHS Automotive.
www.mada.org
25
Toyota Camry is on Top of Standard Mid Size Car Segment
Ford Explorer is best-selling 3 row, Mid Size SUV
The table below shows the top five selling models during 2014 in 16 primary market segments. In addition to
unit SCOREBOARD
registrations, it also shows each model’s market share in its respective segment. Ford Focus was the
MODEL
best-selling Sub Compact Car, with a 14.4% share. Kia Soul was first among Entry Cars, followed by Honda
Toyota
Camry
is on
Top ofatStandard
Midbest
Size
Caramong
Segment
Fit. BMW
3-Series
remained
the top, as the
seller
Near Luxury Cars. Dodge Caravan and Ford
Ford
Explorer
is the
best-selling
3 row,
Size
SUV
Escape
were
best selling
MiniMid
Van
and
Compact SUV, respectively. Ford F-Series narrowly beat Chevrolet
Silverado
number
one
Full Size
Pickups.
Lexus
RX
was segments.
the best-selling
Luxury
SUV.
The
table belowasshows
the top
fiveamong
selling models
during
2014 in 16
primary
market
In addition
to unit registrations,
it also shows
each model’s market share in its respective segment. Ford Focus was the best-selling Sub Compact Car, with a 14.4% share. Kia Soul
was first among Entry Cars, followed by Honda Fit. BMW 3-Series remained at the top, as the best seller among Near Luxury Cars. Dodge
Caravan and Ford Escape were the best selling Mini Van and Compact SUV, respectively. Ford F-Series narrowly beat Chevrolet Silverado
as number one among Full Size Pickups. Lexus RX was the best-selling Luxury SUV.
Top Selling Models in Each Segment - Minnesota
New Retail Registrations - 2014 Annual Total
Cars
Entry
Model
Sub Compact
Regs. Share
Kia Soul
Model
Sporty Compact
Regs. Share
Model
Standard Mid Size
Regs. Share
Model
Regs. Share
1765
32.2
Ford Focus
3838
14.4
Chevrolet Camaro
464
34.9
Toyota Camry
5018
15.8
Honda Fit
946
17.3
Chevrolet Cruze
3475
13.1
Ford Mustang
409
30.8
Ford Fusion
4444
14.0
Chevrolet Sonic
580
10.6
Honda Civic
3048
11.5
Dodge Challenger
227
17.1
Subaru Outback
4186
13.2
Ford Fiesta
548
10.0
Toyota Corolla
2588
9.7
Hyundai Veloster
158
11.9
Honda Accord
3755
11.9
Nissan Versa
387
7.1
Toyota Prius
2428
9.1
Subaru BRZ
43
3.2
Nissan Altima
2722
8.6
Large Mid Size
Model
Entry Luxury
Regs. Share
Model
Near Luxury
Regs. Share
Model
Luxury and Sports
Regs. Share
Model
Regs. Share
Chevrolet Impala
1257
23.4
Mercedes CLA-Class
195
29.5
BMW 3-Series
677
16.7
BMW 5-Series
372
12.1
Ford Taurus
1129
21.1
Audi A3
170
25.7
Lexus ES
435
10.7
Mercedes E-Class
350
11.4
11.4
Buick Lacrosse
848
15.8
Lexus Ct200H
107
16.2
Mercedes C-Class
347
8.6
Chevrolet Corvette
350
Toyota Avalon
825
15.4
Acura ILX
73
11.0
Lincoln MKZ
347
8.6
Cadillac CTS
224
7.3
Dodge Charger
447
8.3
Acura TSX
47
7.1
Audi A4
342
8.4
Audi A6
206
6.7
Light Trucks
Compact Pickup
Model
Full Size Pickup
Regs. Share
Van
Model
Regs. Share
Model
Compact SUV
Regs. Share
Model
Regs. Share
Toyota Tacoma
814
53.1
Ford F Series
12981
33.9
Dodge Caravan
2098
20.4
Ford Escape
6840
15.0
Nissan Frontier /Xe
284
18.5
Chevrolet Silverado
12847
33.6
Chrysler Town & Country
2031
19.8
Honda CR-V
6654
14.6
Honda Ridgeline
255
16.6
Ram
7572
19.8
Toyota Sienna
1934
18.8
Chevrolet Equinox
6139
13.5
Chevrolet Colorado
133
8.7
GMC Sierra
4047
10.6
Honda Odyssey
1684
16.4
Toyota RAV4
5142
11.3
40
2.6
Toyota Tundra
776
2.0
503
4.9
Jeep Cherokee
3429
7.5
GMC Canyon
Mid Size SUV (2 rows)
Model
Chevrolet Express
Mid Size SUV (3 rows)
Regs. Share
Model
Full Size SUV
Regs. Share
Model
Luxury SUV
Regs. Share
Model
Regs. Share
Jeep Grand Cherokee
3082
35.9
Ford Explorer
2979
16.3
Chevrolet Tahoe
1132
27.9
Lexus RX
1114
12.1
Ford Edge
2569
30.0
Toyota Highlander
2750
15.0
GMC Yukon
1100
27.1
Buick Encore
1057
11.4
Hyundai Santa Fe Sport
1073
12.5
Kia Sorento
1903
10.4
Chevrolet Suburban
926
22.8
Acura MDX
791
8.6
Nissan Murano
888
10.4
Chevrolet Traverse
1886
10.3
Ford Expedition
415
10.2
Audi Q5
514
5.6
Toyota 4 Runner
668
7.8
Honda Pilot
1740
9.5
Ford Flex
260
6.4
Cadillac SRX
513
5.6
Source:
IHS Automotive.
Source:
IHS Automotive.
26
www.mada.org
Car market share in state was just 36.5%, 11.3 points below the Nation
The accompanying table provides a comparison of results in both the Minnesota and U.S. markets. New
vehicle registrations in the state improved 4.6% from 2013 to 2014, while the U.S. market increased 6.5%.
Detroit Three market share in Minnesota was 52.7%, well above the 40.8% share in the Nation.
MINNESOTA MARKET VERSUS U.S.
Minnesota and U.S. Markets Both Increased in 2014
Car market share in state was just 36.5%, 11.3 points below the Nation
The accompanying table provides a comparison of results in both the Minnesota and U.S. markets. New vehicle registrations in the state
improved 4.6% from 2013 to 2014, while the U.S. market increased 6.5%. Detroit Three market share in Minnesota was 52.7%, well above
the 40.8% share in the Nation.
Minnesota Market
U.S. Market
4.6%
6.5%
Car Market Share
Car share of industry retail light vehicle
registrations - 2014
36.5%
47.8%
Detroit Three Brand Market Share
Domestic brand share of industry retail light
vehicle registrations - 2014
52.7%
40.8%
Change in registrations
% change in registrations
2014 vs. 2013
Top selling light vehicle brands and
market share - 2014
First
Second
Third
Fourth
Fifth
Sixth
Seventh
Eighth
Ninth
Tenth
Ford
Chevrolet
Toyota
Honda
Nissan
Subaru
Jeep
GMC
Ram
Kia
17.5%
15.0%
11.3%
8.5%
4.9%
4.9%
4.4%
3.9%
3.7%
3.3%
Toyota
Ford
Chevrolet
Honda
Nissan
Jeep
Hyundai
Subaru
Kia
GMC
13.4%
12.5%
10.4%
9.9%
7.5%
4.5%
4.2%
3.7%
3.7%
3.1%
Data Source: IHS Data
Automotive
Source: IHS Automotive.
MADA BC Ad 1-3h 5_11.pdf
1
5/27/11
11:04 AM
CUSTOM PROFESSIONAL
C
M
Y
CM
MY
CY
BUSINESS CARDS
• Hundreds of options
• Competive pricing
• Fast turnaround
• Great customer service with
an on-staff graphic designer
• Quantity options available
We can
turn your
business card
into magnets
too!
CMY
K
To place your order, please contact Reggie Klein
Phone: 651-789-2933 or 800-652-9029
Email: [email protected]
www.mada.org
27
elow is a list of key trends in the Minnesota
tail used vehicle market:
Minnesota Retail Used Light Vehicle Registratio
Annual Totals
IN MINNESOTA
USED
VEHICLE
MARKET
RESULTS
INRESULTS
MINNESOTA
USED
VEHICLE
MARKET
•RECENT
Used
registrations
in the
state
fell by
more
% Change
'13 TO '14
-10.8%
Registrations
2013
2014
762,182
680,102
TOTAL
Market S
2013
than 10% in 2014, which followed the 9.3%
Cars10.8% 389,657
340,035
-12.7%
Used
Vehicle
Registrations
by
in 2014
increase
in IN2013.
The
decline
wasDeclined
due
RECENT RESULTS
MINNESOTA
USED VEHICLE
MARKET
Light Trucks
372,525
340,067
-8.7%
largely to tightening supplies of used
Usedexpected
Vehicle
Registrations
Declined
by 10.8% inDetroit
2014Three 536,256 470,564
Market
to recover in 2015
-12.3%
expected
tocaused
recover
in
2015 years
vehicles,
by
several
of
below
European
45,711
43,103
-5.7%
Market expected to recover in 2015
average
sales.
Minnesota Retail160,483
Used Light146,932
Vehicle Registrations
Below
is a new
list ofcar
key
trends in the Minnesota
Japanese
-8.4%
Vehicle Registrations Declined by 10.8% in 2014
Below
a list of
key trends
the Minnesota
retail used
s aretail
list
ofis key
trends
in inthe
Minnesota
used
vehicle
market:
vehicle
market:
ed •vehicle
market:
As shown
on the graph to the right, after
51.1%
48.9%
Minnesota
Retail Used19,732
Light Totals
Vehicle
Registrations
Annual
Korean
19,503
-1.2%
Annual Totals
% Change
Market Share
Registrations
'13 TO '14 Market
2013Share
2014
2014
% Change
2013
Registrations
• Used registrations in the state fell by more
70.4%
6.0%
21.1%
2.6%
• Used
registrations
in thethe
state
fell by more
falling
in 2009,
Minnesota
new
TOTAL
762,182 2014
680,102'13 TO-10.8%
'14
2013
2014
2013
thansharply
10% in
in the
2014,
which
followed
the the
9.3%9.3%
Source:
IHS Automotive.
than
10%
in
2014,
which
followed
ed registrations
state
fell
by
more
762,182
680,102
vehicle
market
beenwas
ondue
a largely
fast to
track to TOTAL Cars
increase
in 2013.has
The decline
389,657
340,035 -10.8%
-12.7%
51.1%
50.0%
increase
in 2013.
Thevehicles,
decline
wasby due
an 10% in
2014, which
followed
the caused
9.3%
372,525
340,067
-8.7%
48.9%
50.0%
tightening
supplies
used
recovery.
Gains
inof new
vehicle
sales
have Cars Light Trucks389,657
340,035
-12.7%
51.1%
50.0%
largely
to
tightening
supplies
of used
crease inseveral
2013.
decline
wascardue
yearsThe
of below
average new
sales.
Light Trucks
372,525
340,067
-8.7%
Detroit Three
536,256
470,564
-12.3% 48.9%
70.4% 50.0%
69.2%
easily out-paced
used
vehicles
in
caused
by several
years
of each
below of
%
Change
in
Retail
New
and
Used
Vehicle
gely to•vehicles,
tightening
supplies
of
used
European
45,711
43,103
-5.7%
6.0%
6.3%Marke
As shown
onyears.
the graph to the right, after falling
the
past
four
Detroit Japanese
Three
536,256
470,564
-12.3%
70.4%
69.2%
average
new
car
sales.
160,483
146,932
-8.4%2014
21.1%
21.6%
2009 thru
hicles, caused by several years of below
sharply in 2009, the Minnesota new vehicle
European
45,711
Korean
19,73243,103
19,503
Japanese
160,483
146,932
The Gains
2009
lowvehicle
point
vehicle sales Korean
in new
salesfor
havenew
easily out-paced
30.0%
19,732
19,503
falling
sharply
in
2009,
the
Minnesota
newold
in each decline
of the past four
Source: IHS Automotive.
led toused
a vehicles
significant
for years.
five year
25.0%
-5.7%
-1.2% 6.0%
2.6%
-8.4%
21.1%
-1.2%
2.6%
market
has been on a fast track to recovery.
erage new
car sales.
• As shown on the graph to the right, after
•
6.3%
2.9%
21.6%
2.9%
shown vehicle
on themarket
graphhas
to been
the right,
aftertrack to
on a fast
20.0%
IHS Automotive.
•
The
2009
low
point
for
new
vehicle
sales
led
vehicle
market
share.
Used
registrations
ofSource:
ling sharply
in 2009,
the
Minnesota
new
recovery.
Gains
in
new
vehicle
sales
have
Source:
15.0% IHS Automotive.
to
a
significant
decline
for
five-year-old
vehicle
year
old
orused
newer
vehicles
hiclefour
market
has
been
a fast
track
easily
out-paced
vehicles
intoyear
each were
of
% Change in Retail New and Used Vehicle Markets
10.0%
market
share.
Usedon
registrations
of four
stronger,
due
to
improving
supplies.
the
past
four
years.
covery.
Gains
in
new
vehicle
sales
have
old or newer vehicles were stronger, due to
5.0% % Change in Retail2009
thruUsed
2014
New and
Vehicle Markets
sily out-paced
vehicles in each of
improvingused
supplies.
0.0%
2009and
thru Used
2014 Vehicle Markets
%
Change
in
Retail
New
• Theyears.
2009 low point was
for new
sales in 30.0%-5.0%
• Chevrolet
the vehicle
best-seller
e past
four
• ChevroletSilverado
Silverado was the best-seller
in the
2009 thru 2014
toamong
a significant
five or
yearnewer
old
25.0%
-10.0%
state
six-year-old
oryear
newerforvehicles.
the led
state
among
6decline
old
20.0%
vehicle market share. Used registrations of
e 2009
low
point
for
new
vehicle sales for 30.0% 15.0%-15.0%
vehicles.
•four
Chevrolet
Ford,
yearandold
orcombined,
newer accounted
vehicles were
'09 to '10
'10 to '11
more than decline
42% of the
newer 25.0% 10.0% New
d to a significant
fortwo-year-old
five yearorold
4.1%
27.9%
stronger, due to improving supplies.
5.0%
used
vehicle
market.
20.0%
hicle
market share.
• Chevrolet
and Used
Ford, registrations
combined, of
accounted 0.0% Used
5.0%
4.3%
15.0%
ur year
old
or
newer
vehicles
were
-5.0%
Silverado
best-seller
in
for• Chevrolet
more than
42% ofwas
thethetwo
year old
10.0%or
-10.0%
onger,
due
to
improving
supplies.
the
state
among
6
year
old
or
newer
Source: IHS Automotive.
5.0%
newer used vehicle market.
-15.0%
'11 to '12
'12 to '13
7.8%
11.6%
4
0.0%
9.3%
-1
vehicles.
'09 to '10
'10 to '11
'11 to '12
0.0%
New
4.1%
27.9%
7.8%
-5.0%
Silverado was the best-seller in
-10.0%
Used
Chevrolet
and
Ford,
combined,
accounted
5.0%
4.3%
0.0%
among 6 year old or newer
for more than 42% of the two year old-15.0%
or Source:
'09 toIHS
'10 Automotive.
'10 to '11
'11 to '12
'12 to '13
'13 to '14
'13
11.6%
4.6%
hevrolet
•
9.3%
-10.8%
e state
hicles. Retail Used Vehicle Registrations - Percent Change in Three Month Moving Average
'12 to '13
to '14
nnesota
(Jan.'13‘13
thru Dec.
Source: IHS Automotive.
newer used vehicle market.
New
4.1%
27.9%
7.8%
11.6%
4.6%
Used
hevrolet and Ford, combined, accounted
5.0%
4.3%
0.0%
9.3%
-10.8%
Minnesota Retail Used Vehicle Registrations - Percent Change in Three Month Moving Average (Jan. ‘13 thru Dec. ‘14*)
more than 42% of the two year old or
Source:
IHS
wer
used
vehicle
market.
Minnesota
Retail Used
Vehicle Registrations - Percent
Change
inAutomotive.
Three Month Moving Average (Jan. ‘13 thru Dec. ‘14*)
60.0%
Dec-14
Nov-14
Oct-14
Sep-14
Dec-14
Dec-14
Nov-14
Jul-14
Aug-14
Nov-14
Oct-14
Sep-14
Oct-14
Aug-14 Jun-14
Sep-14
Jul-14 May-14
Aug-14
Jun-14 Apr-14
Jul-14
Mar-14
May-14
Jun-14
Feb-14
Apr-14
ay-14
Jan-14
Feb-14
Mar-14
Apr-14
Jan-14 Dec-13
Mar-14
Dec-13 Nov-13
Feb-14
Nov-13 Oct-13
Jan-14
Sep-13
Oct-13
Dec-13
Jul-13
Aug-13
Sep-13
Nov-13
Aug-13
Oct-13
Jul-13
Sep-13
May-13 May-13
Jul-13
Apr-13 Apr-13
Jun-13
Mar-13
ay-13
Feb-13
Mar-13
Feb-13
Apr-13
Mar-13
Feb-13
Jan-13
Jan-13
Jan-13
50.0%
-20.0%
40.0%
-30.0%
30.0%
-40.0%
20.0%
10.0%
Source: IHS Automotive.
0.0% Data
Source: IHS Automotive.
10.0%
20.0%
Data Source: IHS Automotive.
30.0%
40.0% 28
Jun-13 Jun-13
Registrations - Percent Change in Three Month Moving Average (Jan. ‘13 thru Dec. ‘14*)
Aug-13
50.0%
40.0%
30.0%
20.0%
60.0%
a Retail10.0%
Used
Vehicle
50.0%
40.0%
0.0%
30.0%
-10.0%
20.0%
-20.0%
10.0%
-30.0%0.0%
60.0%
-40.0%
-10.0%
www.mada.org
accompanying pie chart shows market share by vehicle age for 6 year old or newer used vehicles. Three
old The
vehicles
had the pie
highest
share,share
at 21%.
The table
shows
vehicle
by vehicle
accompanying
chart market
shows market
by vehicle
age for
6 yearused
old or
newer market
used vehicles.
Threeage
yearOctober
old vehicles
the highest
market for
share,
at 21%.
The table
shows used vehicle
market
by increased
vehicle age 3.6
g the
thruhad
December
periods
2013
and 2014.
Three-year-old
market
share
duringfive-year-old
the October vehicle
thru December
periods
for 2013 and 2014. Three-year-old market share increased 3.6
s, while
share fell
5.8 points.
USED VEHICLE
SALES BY AGE vehicle share fell 5.8 points.
points,
while five-year-old
Market Share for Four-Year-Old or Newer Vehicles Increased 7.2 Points in ‘14
Three-year-old vehicles accounted for 21% of six-year-old or newer market
The accompanying pie chart shows market share by vehicle age for six-year-old or newer used vehicles. Three-year-old vehicles had the
highest market share, at 21%. The table shows used vehicle market by vehicle age during the October thru December periods for 2013 and
arket 2014.
Share
byShare
Vehicle
Age (vehicles
six years
old old
or
newer)
Market
by Vehicle
Age
six
or five-year-old
newer)
Three-year-old
market
share(vehicles
increased
3.6years
points,
while
vehicle share fell 5.8 points.
2014
Annual
Total
2014
Annual
Total
Market Share by Vehicle Age (vehicles six years old or newer)
2014 Annual Total
Used
VehicleMarket
Market Share
Share by
Vehicle
(6 yrs.
old old
or newer)
Used
Vehicle
byAge
Ageofof
Vehicle
(6 yrs.
or newer)
October thru December 2014 vs. Year Earlier
October thru December 2014 vs. Year Earlier
6 yrs. old
6 yrs. old 16%
16%
1 yr. old or newer
1 yr. old or newer18%
18%
Age
Age
5 yrs. old
5 yrs. old 9%
9%
2 yrs. old
18%
4 yrs. old
12%
2 yrs. old
18%
Source: IHS Automotive.
4 yrs. old
12%
3 yrs. old
21%
3 yrs. old
21%
Source: IHS Automotive.
Oct thru Dec
Oct thru
Dec
2013
2013
Oct thru Dec
Oct thru
2014Dec
2014
Change
Change
1 yr. old or newer
29.3%
31.3%
2.0
2 yrs. old
17.6%
17.8%
0.2
1 yr. old or newer
29.3%
31.3%
2.0
2 yrs.
oldold
3 yrs.
17.6%
14.1%
17.8%
17.7%
3.6
3 yrs.
oldold
4 yrs.
14.1%
8.9%
17.7%
10.3%
1.4 3.6
5 yrs.
4 yrs.
oldold
14.5%
8.9%
8.7%
10.3%
6 yrs.
5 yrs.
oldold
15.6%
14.5%
14.2%
8.7%
-1.4 -5.8
15.6%
14.2%
-1.4
6 yrs. old
Source: IHS Automotive.
0.2
1.4
-5.8
Source:
IHS Automotive.
Source:
IHS Automotive.
ource: IHS Automotive.
BUY FUEL ?
WANT FUEL DISCOUNTS ?
NEED CONTROL?
C
M
Y
CM
SA FLEET
smart answer!
SAVE 10¢ a gallon for the first 90 days
Then continue to save 5¢ a gallon
with the MADA discount
MY
CY
Call Lisa
651-403-3267
Start SAVING Today
CMY
K
SUPERAMERICA.com
www.mada.org
safl[email protected]
29
Chevrolet Silverado is Best Seller in Used Vehicle Market
Impala and F-Series were second and third, respectively
The graph below shows top selling models in the state for vehicles six years old or newer.
TOP SELLING MODELS
Chevrolet Silverado is Best Seller in Used Vehicle Market
Impala and F-Series were second and third, respectively
25state
Selling
Modelssix(Six
years
or newer)
The graph below shows top selling modelsTop
in the
for vehicles
years
old orold
newer.
Used retail registrations, 2014 Annual Total
Top 25 Selling Models (Six years old or newer)
Used retail registrations, 2014 Annual Total
Chevrolet Silverado
8448
Chevrolet Impala
7822
Ford F Series
7642
Ford Fusion
5755
Ford Escape
5596
Chevrolet Malibu
4837
Chevrolet Equinox
4570
Toyota Camry
4275
Chrysler Town & Country
4133
Ford Edge
3835
Dodge Caravan
3773
Chevrolet Cruze
3459
Ford Focus
3428
Chevrolet Traverse
3006
Toyota Corolla
2926
Dodge Ram
2897
Honda Accord
2751
Honda CR-V
2727
GMC Sierra
2713
Toyota RAV4
2681
Honda Civic
2648
Nissan Altima
2590
GMC Acadia
2536
Hyundai Sonata
2314
Jeep Grand Cherokee
2177
0
1000
2000
3000
4000
5000
6000
7000
8000
9000
Source: IHS Automotive.
Source: IHS Automotive.
30
www.mada.org
The two graphs below show brand market share leaders for vehicles two years old or newer, and fo
old vehicles. Chevrolet, Ford, and Dodge were ranked first, second, and third in the 2 year old or newer
year old vehicles. Chevrolet, Ford, and Dodge were ranked first, second, and third in the 2 year old o
gory. Dodge had a 5.8% share for three to five year old vehicles, compared to 7% for vehicles two years
category. Dodge had a 5.8% share for three to five year old vehicles, compared to 7% for vehicles tw
r newer.
old or newer.
BRAND MARKET SHARE BY VEHICLE AGE
Chevy and Ford Accounted for 42.2% of Two-Year-Old or Newer Market
Toyota
and Honda rank third and fourth for 3 to 5 year old vehicles
The two graphs below show brand market share leaders for vehicles two years old or newer, and for three- to five-year-old vehicles.
Chevrolet,
Ford,– and
Dodge were
ranked
first,
or newer category.
a 5.8%
for threend Market
Share
Vehicles
2 years
old
or second,
newerand third in the two-year-old
Brand Market
Share - Dodge
3 to 5had
Year
Oldshare
Vehicles
Brand
Market
Share
–
Vehicles
2
years
old
or
newer
Brand
Market
Share
3
to
5
Year Old Ve
to five-year-old vehicles,
2014 compared to 7% for vehicles two years old or newer.
2014
rolet
Ford
2014
Brand Market Share – Vehicles Two years old or newer
2014
Chevrolet
22.9%
19.3%
22.9%
19.3%
Ford
7.0%
dge
7.0%
Dodge
6.5%
yota
6.5%
Toyota
4.9%
onda
4.9%
Honda
4.3%
ssan
4.3%
Nissan
4.0%
GMC
4.0%
GMC
3.7%
ysler
3.7%
Chrysler
3.2%
agen
3.2%
Volkswagen
3.1%
Kia
3.1%
Kia
3.0%
ndai
3.0%
Hyundai
2.8%
eep
2.8%
Jeep
2.6%
uick
2.6%
Buick
2.1%
baru
2.1%
Subaru
1.3%
azda
1.3%
Mazda
1.2%
edes
1.2%
Mercedes
1.1%
illac
1.1%
Cadillac
1.1%
coln
1.1%
Lincoln
1.1%
MW
1.1%
BMW
1.0%
Audi
1.0%
Audi
0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0%
0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0%
IHS Automotive.
ource:Source:
IHS Automotive.
Source: IHS Automotive.
2014
Brand Market Share - Three- to Five-Year-Old Vehicles
2014
Chevrolet
Ford
Toyota
18.8%
Chevrolet
Ford
15.8%
11.3%
18.8%
15.8%
11.3%
Toyota
7.0%
7.0%
Honda
5.8%
Dodge
5.8%
Dodge
4.6%
Nissan
4.6%
Nissan
4.4%
GMC
4.4%
GMC
2.9%
Hyundai
2.9%
Hyundai
2.9%
Buick
2.9%
Buick
2.7%
Chrysler
2.7%
Chrysler
2.6%
Volkswagen
2.6%
Volkswagen
2.6%
Kia
2.6%
Kia
2.5%
Jeep
2.5%
Jeep
2.1%
BMW
2.1%
BMW
2.0%
Subaru
2.0%
Subaru
1.9%
Mazda
1.9%
Mazda
1.6%
Lexus
1.6%
Lexus
1.6%
Cadillac
1.6%
Cadillac
1.3%
Lincoln
1.3%
Lincoln
1.2%
Mercedes
1.2%
Mercedes
0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0%
0.0% 5.0% 10.0% 15.0% 20.0% 25.0%
Source: IHS Automotive.
Honda
Source: IHS Automotive.
Source: IHS Automotive.
visit us online at
www.mada.org
www.mada.org
31
Industry Spotlight
Mark Morcomb .
Like any large business operation, Luther Automotive is full of different
personalities. There are visionaries, managers, “car guys,” marketing
whizzes, problem solvers and good business people. Making sure they all
mesh together in a cohesive unit that moves the company forward is part
of David Luther’s genius. One of the most interesting characters that has
contributed greatly to this effort is Luther’s Fixed Operations savant, Mark
Morcomb. Mark is not the most flamboyant of Luther’s managers.
But over an 18-year career with Luther Automotive he has quietly
and efficiently built many of the successful branches that have
made the dealer group more than just about selling new and used
vehicles. Two summers ago he approached MADA’s Executive
Vice President Scott Lambert with the notion of creating a Collision
and Service Council (CSC) within MADA. Scott recently visited
with Mark to discuss the success of the CSC and his life in the auto
business...
I have to admit I was pretty skeptical
of the plan to create the CSC. I
thought it would only be 4 or 5
stores that were disgruntled with
the AASP-MN organization. Not an
organization with 180 members in
less than 2 years.
A few of us sensed that there was a need
for our own space. The growth has been
a lot of fun to be a part of. We have a big
footprint right now and it’s getting bigger.
Your leadership has been a key to its
success. How many branches of the
Luther Automotive Company have
you started and currently oversee?
There’s the body work, custom color,
PDR, glass, towing and our call center.
How did all this come about?
David. He allowed me to take ideas
and turn each into a small business.
He provides the resources such as HR,
training, tech support and legal tools then
creates a collaborative environment that’s
upbeat and fun to work in.
LUTHER
AUTOMOTIVE
GROUP
V.P., Fixed
Operations
Well you must’ve gained his trust
somewhere along the way. What was
your path to Luther Headquarters?
I started as a lot person for Bob Ryan
when I was 17.
Was that your first job in automotive?
Not really. I grew up in Bismarck, North
Dakota working for my dad who owned
a machine shop and a NAPA Parts store.
I worked there when I was in junior high
before we moved to Minneapolis.
How long were you with Bob Ryan?
I was a lot boy for a couple years, then
in the early 80’s I moved over to Ryan
Olds Mazda where I worked in the prep
department and did a lot of aftermarket
work such as luggage racks and body
side moldings. There, I gradually moved
into the warranty business, did some
dispatching and became a service advisor.
Did you manage?
Yep. I eventually became the Mazda
Service Manager and the Oldsmobile
Service Manager before I moved to Ryan
Cadillac, Renault AMC in Buffalo.
32
www.mada.org
Geez, I’ve forgotten about some of those brands. But you
finally moved out of the Ryan world?
This all sounds stressful. What do you do for fun?
I get to my cabin in Ely when I can.
Yes, in 1987 John Hirsch hired me at Thomas Pontiac Buick
GMC to be their service manager.
Ely is a long way off.
It seems like a lot of current dealers have some connection
to Thomas. How was your experience at that store?
You have a pilot’s license?
It was very satisfying. When I came in, the service department
wasn’t profitable and had one of the lowest CSI in the nation.
After one year, the CSI became one of the highest.
I bet Thomas was grateful.
Pontiac was grateful. As a reward they flew me and my whole
family to Florida for a vacation.
When you’ve got a young family those things are
important. Speaking of family, let’s pause here and get the
rundown.
My wife Susan and I have been married for 31 years, and we’ve
got three terrific kids all in their mid- to late-20s. My oldest,
Heather, works for Luther in a support role. Jessica graduated a
couple of years ago with a degree in operations and immediately
got a job with 3M, and our youngest Dustin is still in school in St.
Paul.
Five hours if we drive, one hour if we fly.
I’m an IFR-rated [instrument flight rules] private pilot.
Do you have your own plane?
An SR 22, four passenger, single engine, with a parachute.
Parachute?
My wife insisted on the parachute. It’s the only way she’ll fly.
What do you like most about your job?
Over 17 years, it has been watching people grow. Service
advisors have become service managers; car washers have
become techs; techs have become GMs.
What’s the biggest lesson you’ve learned with the Luther
organization?
It’s important to have fun at work. And if you’re going to make
withdrawals from people in terms of extra effort, then you’ve got
to remember to make deposits as well.
No grandkids yet?
Not yet. But I can’t wait for some.
OK so how’d you get to Luther?
After six years with Thomas, I needed a break from direct
dealership operations so seven other guys and I formed
Automotive Fleet Service. After a year of that, I set up my own
consulting firm. In 1997, I met David and worked on some
projects for him.
Is that when David saw your genius and hired you?
Actually, it was the other way around. It took me 8 months to
convince David to hire me.
So this is the question I always ask people with lots to manage
in different locations: how do you keep track of it all?
We meet constantly. We’ve hired good people. And we watch the
basics.
Tell me more.
I’ve got a team of about six people, and for the past several years
we’ve had a rolling agenda every two weeks with a regularly
updated action plan.
Those must be interesting.
It’s very inclusive. Actually, we usually end up with about 12
people in each meeting. Anyone from the main office is invited
to sit in. David will often come listen to what’s going on and
contribute. It’s part of the culture here that made us all so
successful.
www.mada.org
33
DEALERSHIP SHOWCASE
LAKE COUNTRY CHEVROLET BUICK
If you ask Mike Kvarnlov, owner of Lake Country
Chevrolet Buick in Warroad, Minnesota what the
most important aspect of his dealership is, he will say,
“Community.”
Located just six miles south of the Canadian border
in northwestern Minnesota and less than a mile from
some of the best walleye fishing in the world on Lake of
the Woods, Lake Country Chevrolet Buick is a successful
dealership known for being all about its neighbors.
Because of its extreme northern location, Lake Country
Chevrolet Buick is a long way from competition which,
as any successful dealership knows, isn’t usually a
good thing. However, after being in the business at
this location for nearly 30 years, Mike has learned that
the best way to build a successful business is through
customer loyalty. Lake Country Chevrolet Buick looks
to create customers for life - a sentiment that is shared
by other area businesses including Marvin Windows
and Doors, located just across the street from the
dealership.
“We work very, very hard at taking care of our 60 mile
radius: to market
those people, to
try to do what we
can to give them
the opportunity
to stay home and
make their vehicle
purchases locally,
34
and to having all aspects of their service and body shop
needs also done locally. That’s our goal. If you want to
be successful in business today, customer loyalty is a
must.”
One way that Lake Country Chevrolet Buick shows its
community spirit is through its ardent support for local
education and sports. Known as “Hockeytown USA” for
over 50 years, Warroad has produced some amazing
athletes over the years. Most recently, Gigi Marvin and
TJ Oshie, both of whom were 2005 Warroad High School
graduates, played on the USA hockey teams at the 2014
Winter Olympics in Sochi. During the Winter Games,
and in the middle of their participation in General
Motors voluntary remodel program, the dealership
displayed a 6 foot by 80 foot banner celebrating the
2014 Olympians. This banner became a key focal point
and the town’s unofficial “welcome sign” during the
Olympics.
The decision to participate in the GM element program
was not an easy one for this small dealership in remote
northwestern Minnesota, but Mike ultimately decided
to do it. “Is it going to sell us more vehicles? I doubt it.
But, it is going to provide us with a better facility and a
better environment for our consumers today and in the
future. Absolutely.”
Mike’s long-term vision is really no surprise. With a
succession plan in place he’ll eventually retire, passing
on not just a dealership, but a legacy to his son and
grandsons.
www.mada.org
Ready to
With more consumers buying autos now is the time
to turn to Star Tribune – Minnesota’s #1 source for
reaching quality car buyers ready to take action.
In print and online, we reach 65% of metro adults.
To reach the active car buyer we offer more options
to drive more car buyers into your showroom.
Turbocharge your advertising today.
Call Steve Engelhart at 612-673-4950
or Tim Haley at 612-673-7026.
3254104/10/14
buy.
»
»
»
»
»
»
»
Newspaper
Mobile & apps
Geotargeting
Audience targeting
Search engine marketing
E-mail marketing
Retargeting
END YOUR SEARCH
FOR A NEW F&I
PROVIDER TODAY
Over 100 YEARS
of serving people
Over 50 YEARS
of serving auto dealers
Over $330 MILLION
earned through our dealer
participation programs
Nearly $2 BILLION
in customer claims paid
Protective Asset Protection is a proven F&I provider that dealers
can rely on to protect tomorrow, so they can embrace today.
Contact us today so a Protective Asset Protection
representative can shorten your to-do list.
Contact Protective’s Minnesota representative,
James Mercer at 866 927 2908
Protect Tomorrow. Embrace Today.™
Vehicle Protection Plans I GAP Coverage I Credit Insurance I Limited Warranty Products
Dealer Participation Programs I F&I Training I Advanced F&I Technology
protectiveassetprotection.com
Limited Warranty Products, Vehicle Protection Plans (VPPs) and GAP are backed by Lyndon Property Insurance Company in all states except NY. In NY, VPPs are backed by Old Republic Insurance Company, Limited Warranty Products
are backed by Western General Insurance Company and GAP is not available. Credit Insurance is backed by Protective Life Insurance Company in all states except NY, where it is backed by Protective Life and Annuity Insurance Company.
$330 million in dealer participation programs comprise both reinsurance and retro insurance earnings as of 2/2014. Nearly $2 billion paid in customer claims from inception to date as of 1/2013. Protective Life Insurance Company was founded
in 1907 and is not responsible for the financial condition or obligations of its affiliates.