Auto Dealer Monthly, May 2015

Vice President Group Publisher AutoGroup Sherb Brown 310 533 2451 sherb brown@ bobit com Publisher Dealer Group David Gesualdo 727 947 4027 david gesualdo@ bobit com Editorial Director Gregory Arroyo 310 533 2592 gregory arroyo@ bobit com Managing Editor Tariq Kamal 323 377 0929 tariq kamal@ bobit com Senior Editor Brittany Marie Swanson 310 533 2588 brittany swanson@ bobit com Art Director Vince Taroc Graphic Artist Jeff Polman National Sales Manager Greg Ree 407 383 2260 greg ree@ bobit com Sales Marketing Coordinator Tracey Tremblay 310 533 2518 tracey tremblay@ bobit com E Media and Print Production Manager Brian Peach 310 533 2548 brian peach@ bobit com Audience Marketing Manager Tony Napoleone Chairman 1961 2014 Edward J Bobit President CEO Ty F Bobit Chief Operating Offi cer Cyndy Drummey Chief Financial Offi cer Richard E Johnson Business and Editorial Offi ce Bobit Business Media 3520 Challenger St Torrance CA 90503 Fax 310 533 2503 Change Service Requested Return Address Bobit Business Media PO Box 2703 Torrance CA 90509 Subscription Inquiries 888 239 2455 BobitPubs@ Halldata com Printed in U S A OPENING OBSERVATIONS ON COURSE The 2015 Automotive Forum promised good times and signifi cant change for dealers in the years ahead By Tariq Kamal Love was in the air at the 2015 NADA J D Power Automotive Forum Th e crowd in the ballroom at the Grand Hyatt New York sat in eager anticipation of the highlight of the conference a Q A with Warren Buff ett and Larry Van Tuyl In October Buff etts investment fi rm Berkshire Hathaway Inc acquired Van Tuyl Group the nations No 4 auto retailer in a multibillion dollar deal Based on their appearance at the Automotive Forum there was no doubt the men had made fast friends and were pleased to be in business together Relaxed and jovial Buff ett nonchalantly dismissed any notion that he planned to steer the newly named Berkshire Hathaway Automotive or the industry as a whole in a radical new direction He pointed out that in the 10 years since he acquired Forest River an Indiana RV manufacturer the founder has only called him twice We own all kinds of businesses We own a railroad I dont know where they buy their diesel fuel from he joked Im not even sure I know what diesel fuel is Asked what opportunities he saw in F I Buff ett said Th at will be up to Larry Hes got his own bank arrangements We dont get into that Ultimately Buff ett said his investment was based on a good business in a huge industry that promised to pay dividends for many years to come Th e same tone was pervasive in earlier sessions including a global economic outlook presented by Nariman Behravesh Ph D chief economist at IHS Inc and a state of the industry report delivered by J D Powers senior vice president of global automotive operations John Humphrey as well as addresses by two OEM executives Nissans Fred Diaz and Subarus Tom Doll both of whom saw blue skies ahead for their factories dealers and customers Some notes of concern were sounded Sandy Schwartz president of Cox Automotive took the stage to share highlights from Autotraders Car 4 AUTO DEALER MONTHLY MAY 2015 Buyer of the Future Study which was released to coincide with the conference Th e report was based on a poll of 4002 car buyers who were asked to refl ect on their dealership experience Th e results demonstrated the desire for profound change Seventy percent of respondents said they wanted to start the F I process online in hopes of shortening it Fift y six percent said they want to start negotiations on their own terms and nearly half said they would prefer not to reveal their identities until the deal is locked in Less than 1 of respondents said they like the car buying process exactly the way it is Th e report included positives as well Eightyeight percent of respondents said they would not buy a car without test driving it fi rst More than half still prefer to negotiate the price and 54 said they would pay a premium for their preferred experience Seventy three percent said they would drive further to deal with a great salesperson Other speakers stressed the need to keep up with customers preferred methods of contact and recapture those who failed to purchase Search Optics Christian Fuller listed responsive websites and phone call and email generating Web functionality Facebooks group director for automotive and fi nancial services Michelle Morris encouraged dealers to use the social media platforms analytics to determine which campaigns are working and which are not Are we in a Golden Age of Advertising an audience member asked Fuller and Morris both nodded Its an incredible time to be a marketer Morris said Its also a good time to be in the auto retail business at least according to Buff ett who also took time to defend the franchise model Usually when a distribution system becomes that fi rmly established theres a reason for it he said Th ats a good sign the lovefest will go on for awhile longer