Daddy-O

Auto Sales See Best Month in ’03
In a fresh sign of growing consumer optimism, August is shaping up to be
the best month this year for U.S car and light truck sales, say analysts
and auto dealers. Industry analysts predict August sales will reach an
annualized rate of 18 million to 18.2 million vehicles. That's less than
last August's banner sales rate of 18.6 million units, when automakers
pumped up incentives and zero-percent financing offers. But it would be
the strongest monthly showing since December. The strong demand --
coming after solid July sales -- is another sign the second-half
turnaround auto industry executives have been anticipating may be
gaining traction. On Wednesday, the Conference Board reported that its
widely watched Consumer Confidence Index rebounded in August after a dip
in July. Car buyers braved sweltering temperatures to take advantage of
generous close-out deals on 2003 models before the new model year, which
traditionally begins in September. Demand was strong across most vehicle
segments, but particularly for pickups, sport utility vehicles and
luxury cars, dealers report. Though rising incentives will further erode
automakers' profits in the United States, financial analysts say the
August sales boom will bolster the companies' performance by cutting
inventories back to normal levels and boosting production rates.
(Source: The Detroit News)


[FOOTNOTE: NADA Chief Economist Paul Taylor expects a strong performance
in August, but points out that there are some specific dynamics driving
August sales. Some lush incentives are driving 2003 model sales. For
September, Taylor points out that fairly strong incentives on 2004
models will be important, as well as "catching up" on '04 production
lost to the power outage, in order to assure a full selection of new
models as '03 vehicles sell out early. Some of the August rush is caused
by consumer concern that interest rates will be higher during the fourth
quarter.]

State Auto Dealers Step Up
To ensure a fair and honest marketplace for new car and truck buyers,
the Washington State Auto Dealers Association Board of Directors has
adopted a "Dealer Code of Ethics," which emphasizes high business and
customer-service standards. The code was developed by the National
Automobile Dealers Association and outlines standards for advertising,
sales, service and financial professionals to follow when interacting
with customers. "Washington's auto dealers have been practicing these
high standards for years, but in today's climate, where businesses
nationwide are being scrutinized by the government, media and ...
public, we thought it was time to make them official," said WSADA
President **** Hannah, owner of Hannah Motor Co. in Vancouver.
(Source: The Seattle Post-Intelligencer)


GM Extends Test-Drive Program Again
Pleased with its effectiveness, General Motors Corp. has extended, for
the second time, a 24-hour test drive program. The program will run
until Jan. 2, 2004, according to GM spokeswoman Marcia McGee. It was due
to end Tuesday. "The original idea is to get people into the cars,"
McGee said. "We want to be on people's consideration lists and
consideration is increasing." Consideration of GM products is 50 percent
higher once a customer takes home a vehicle for a test drive, she said.
Since the program began in May, 257,000 test drives have been taken,
resulting in about 81,000 sales. GM says 31 percent of test drive
participants have opted to buy. That's about 10 percentage points higher
than the closing rate for customers who simply walk into a dealership
looking for a vehicle. The program allows qualified drivers 21 and over
to take many GM vehicles home overnight for a test drive of 100 miles or
less, instead of a traditional quick trip of just a few miles. GM says
75 to 80 percent of its 4,700 dealers -- representing 82 percent of the
automaker's sales volume -- are participating in the program.
(Source: The Detroit News)


Dealerships Add on Movies, Haircuts, More
Vehicle-sales trend offers relaxation in a tranquil setting
Let's face it. A trip to the car dealership is unlike any other shopping
experience. Aggressive salespeople, bright lights, pressure and
uncertainty traditionally have shadowed the experience. But many car
dealerships are trying to change that. They want relaxed, comfortable
and stress-free customers, and their attempts at tranquility are
changing the landscape of car sales. Automobile dealerships are
expanding their showrooms beyond the traditional lukewarm cup of coffee
and a place to sit. They're offering diversions and entertainment to
entice time-crunched customers and keep them coming back. Among the
carrots being dangled: children's play areas, restaurants, putting
greens, barbershops and movie theaters with stadium seating. "Child
care, restaurants and others extras associated with car dealerships make
sense, if the dealership provides good, affordable service, first of
all," said Michael Marsden, dean and academic vice president of St.
Norbert College in DePere, Wis. Marsden, a professor, author and
nationally recognized expert in popular culture, pays particular
attention to the automobile industry and teaches a class called "The
Automobile in American Culture." By adding restaurants and other
amenities, Marsden said, "you could have the next generation of
automobile dealerships."
(Source: Florida Today)