Auto Transportation Blog

Well, this is new to me – Hummer apparently has been cut by General Motors. But I guess that’s not really the point of this post, even though it’s big news. There are major questions still on the table in regards to owners and dealers, with some dealers still hoping that GM will find another buyer for the brand name. Hummer currently has 153 dealerships, all of which that have their own dealer auto transport networks, and sixteen of those of those are stand-alone dealerships.

High gas prices is among the largest reason why GM has stopped production of all Hummer products, and frankly who can blame them? Those things are freaking gas-guzzlers of the highest caliber – try driving one through the streets of New York City or Miami, too! People think a lot like me when it comes to Hummer vehicles, and it shows: Hummer sales have dropped more than any other brand over the past two years, and GM has had plans on cutting the brand name since 2008. They had a deal going with Chinese manufacturer Tengzhong, though the Chinese government (in its infinite wisdom) didn’t approve the deal, and now owners are worried about replacement parts and resale values. GM, however, has said they will still honor warranties and service plans, though how long that will last remains to be seen.

So…wait…Hummer’s gone? Figures.

Dealer auto transport networks don’t just ship new cars – many handle used cars that are sold on car lots, and they’ve been talking about the huge decrease in the amount of Toyota used cars that have been sold since Toyota found itself in trouble over their recalls. Sales of used cars are down 1.8% from last year, with prices down 1.3% since January 2010. This affects all of Toyota’s vehicles, not just the models that are affected by the recent recalls. Independent dealers still don’t have recall information or the parts to replace the affected vehicles either, which is definitely hurting the numbers that Toyota is seeing slip away.

Experts are saying that we shouldn’t read too much into February’s numbers, though I’ve said it before and I’ll say it again – numbers don’t lie. There are too many outside influences to represent the true market for used vehicles, though the numbers are still down, and that’s enough for me to say that Toyota is still in trouble. Honda is still number one in quality perception of new-car buyers, with Mercury and VW gaining ground that Toyota has given up. Poor Toyota – next time, don’t lie to your customers. That always helps.

According to the Detroit News, GM’s sales in China have risen 51% from last year’s numbers, while Ford and Toyota also reported sales gains in the double digits. This comes in the face of decreasing momentum and sales in the United States and elsewhere, with GM selling over 174,000 in February in China, which was a company record for February sales; however, it was still below January’s record-setting number of over 219,000 vehicles sold. Nationwide auto shippers in China have also seen an increase in American cars being shipped across the country, though the numbers could be a reflection of even lower numbers to come.

Ford sold over 18,000 vehicles in February, and while it is a lot lower than GM’s number it is still a high for the company, who’s February numbers are usually only in the four-digit range. Toyota sold over 45,000 units as well, though that is down from the 72,000 they sold in January. No matter which way you stretch it, however, the companies had big gains in February and are still hopeful for the future.

The North American Dealers Association is calling for unity in the industry, according to NADA’s official website. They are calling for dealers and automakers coming together and working closely together, no matter if the dealers have a separate dealer auto transport service or something else. This news comes after 2009’s terrible sales year and amidst over 2,000 dealerships closing across the United States. Ex-chairman John McEleney made his speech at the NADA convention in Orlando, Florida.

McEleney praised dealers and their efforts in appealing their problems to Congress, with which lawmakers approved a measure which would give dealers who have closed up shop a second change. Another big thing that proved that dealers and the auto industry as a whole could work together is the Cash for Clunkers program, passed this past year by lawmakers. NADA is hard at work with other things as well, and with new chairman Ed Tonkin now holding the reins it might be time that this unity could see a real chance to get off the ground.

Let’s face it – Ford is pretty awesome. They are the only company out of Detroit to not declare bankruptcy, didn’t want government aid, and is currently doing the best out of the three. Ford has been beating GM in US sales since late 2009, and this could be just the beginning – this is the first time that Ford has topped GM since 1998, and the last time before that was in 1970. GM is still in “turnaround” mode, however, and is looking to reclaim that top spot, though Ford has built their reputation up in the past few years. Nationwide auto shippers have noticed a huge increase in the number of Ford vehicles being shipped, while GM has remained relatively stable.

Ford reported a huge increase in sales in February, up a whopping 43%, while GM reported a modest 20% increase. Any increase, of course, is great news for the American auto industry, but Ford’s increases are absolutely massive, and they’re also gaining more market share and more ground in consumer confidence, while GM is still slipping in both categories. Ford could even top Toyota if things keep going the way they have been – Toyota has been a major player for a long time in the US, and for Ford to reclaim the throne…well, the only thing we can do right now is watch and wait. But it is good news nonetheless.

Apparently Mercedes-Benz Financial has been talking about enhancing their lease turn-in process, with the head of Mercedes-Benz Financial talking about completely reworking the way that the lease system operates. Currently lease penetration is 50% of retail sales, and is also stating that three of four retail transactions in the United States occur at Mercedes-Benz dealers. This is a huge benefit to dealers, especially those with ties to nationwide auto shippers.

Mercedes-Benz Financial recently upgraded their First Class Finish lease program’s turn-in process, giving dealers new software for PDA’s as well as computers. Dealers can now can the VIN number on returned units, which helps eliminate the paperwork required for any inspections that might occur. This also saves valuable minutes and is virtually paperless, and can also be done at any Mercedes-Benz dealer, not just the one you leased the vehicle from (as was the case prior). This is a great idea – it’s a wonder that more dealers don’t do this. Currently dealers in major cities such as New York City and on west have implemented the program, with more coming by 2011.

Honda has been working to ensure that its image won’t be tainted like Toyota’s, especially after the Prius was recalled due to braking problems. The CEO of Honda has said that product quality is highly important to Honda and was crucial in the development of the new CR-Z hybrid that Honda has recently unveiled. Initial sales reports that Honda may be picking up many customers that Toyota has lost, especially in the United States, and Honda has made a point of showing off the new braking system that the CR-Z has, which is quite different from the one in the 2010 Toyota Prius that has been causing so many problems.

Honda dealers who have a dealer auto transport network have noticed a small increase in the amount of sales, most likely due to Toyota’s problems. But Honda hasn’t been the best of the best either – many of their newer products have received at best mixed reviews. But Honda is really hoping that things will change, and now the new braking system is going into all their hybrid vehicles. The CR-Z is currently sold only in Japan , though there are plans to introduce it to larger markets in the US (such as Chicago, for instance) by 2011.

Traditional CRM systems are not delivering the desired customer experience transformation, according to CRM-Daily, and most organizations are seeing the customer’s experience improvement as highly desirable. 74% of customers are likely to buy more as a result of service excellence, and a survey of international businesses across the United States and Europe has been undertaken by Pegasystems, an independent organization.

Many dealers, especially those who have nationwide auto shippers at their disposal, are eager to please their customers, because that typically means repeat business and more money as a result. However, many businesses outside the automotive industry have yet to change their ways, as many often prioritize reductions in operational spending over improvements to customer service and their experiences. Many dealers across the country – most in east coast cities like Boston - have already taken the next step in customer relations, removing the salespeople that customers see first and replacing them with receptionists, and results are impressive. We can only hope that other businesses see this model and maybe – just maybe – we can get rid of the automated telephone systems forever. Or maybe we can keep dreaming…

According to Subprime News, captive finance companies have lost a huge share of outstanding loan balances in the third quarter of 2009, down 5.4% - or $12 billion – when compared to 2008 numbers. Outstanding balances in finance and other categories fell a whopping 22.7%, or $23 billion, in the same time frame. This trend is due mainly to troubled capital markets, and non-prime loans dropped by 12.8% while subprime numbers are down by 21%. So what exactly does this mean for you, the consumer?

To be frank, not much in the long run. In the short term, financing numbers and APR rates have increased, putting increased pressure on current buyers, though numbers have remained steady since they were torn asunder after the economic collapse a few years ago. The current top lenders, by market share, have also not changed much; Chase, Toyota, Wachovia, GMAC and Ford are still the top lenders in play today. Dealers have been feeling the strain, though, especially those who operate a dealer auto transport network, as they have to balance the costs with the amount of money that they can get for their vehicles. Dealers from Los Angeles to Miami have been feeling it – over 2,900 dealers have closed since everything hit the fan, but those numbers are inching up as well. It’s all a numbers game, folks, and the smaller the better in this case.

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According to Business Wire, Toyota’s purchase intent numbers averaged at just over 13%; in the wake of the massive recalls, however, their numbers plunged to just 9.7% in February. Now, however, Toyota’s purchase intent has recovered back to 13% despite still being in a ton of hot water over the recall debacle. The biggest factor is the fact that Toyota recently announced a zero percent financing and special lease deal at the beginning of March, and incentives programs have also been announced. If you’re wondering, purchase intent measures buyer interest in any given company, and 13$ is a lot to take in.

Nationwide auto shippers have noticed the drop in Toyota vehicles being bought and shipped, though have also noticed the rebound in the number as well. Customers have obviously been watching Toyota’s moves with the utmost of interest, as has much of the rest of the Detroit automakers. Just to compare, Chrysler’s current purchase intent stands at 2.9%, which is down from 3.3%, and GM’s stands at 12.7%, which is actually an increase from 12.6%; you can see just how dominant Toyota is in the eyes of its customers.