2012 Chicago Auto Show: Spotlight on FORD, Part 2….a resurgence of noteworthy & edgy designs

2013 Ford Escape

With over 2 million vehicles sold since it’s introduction in 2001, the Ford Escape is America’s best-selling SUV, so I was quite enthusiastic to speak to Jason Sprawka, Escape Marketing Manager, at this year’s Chicago Auto Show, and hear about the future plan for this bread-and-butter vehicle.

Jason Sprawka, Ford Escape Marketing Manager

Sprawka started off by explaining that “most consumers start in the middle (size-wise) when car shopping.  The middle is largest segment. Then from there, they move to bigger or smaller options.” The new model boasts a sleeker and more modern design.  In their research conducting focus groups and satisfaction surveys regarding the Escape, Ford found that the area with the largest room for improvement was the design. Consumers wanted modern sophistication.

Sprawka shared that “the SUV elements are what people like about the current Escape, primarily the cargo room and tow capacity.  In redesigning the vehicle, we not only included these elements, but we improved upon them.  There’s more cargo space, as the vehicle in four inches longer, yet a sleeker design gives the illusion that it’s not longer.” Not only is the sleeker design aesthetically pleasing, but the sleeker design makes the Escape nearly 10% more aerodynamic…which, of course, means better fuel economy!

Standard in the 2013 Escape is the 2.5L, 4-cylinder naturally aspirated engine.  For the fuel efficient-minded consumer, the 1.6L EcoBoost engine provides better performance, and the highest level of efficiency. And for those looking for the punch, the 2.0L EcoBoost boasts 240 hp, yet gets around 28 to 29 mpg.  The new model is projected to be up to 5 mpg better than outgoing model, AND best in its class of compact SUVs.

2012 Chicago Auto Show

The 2013 Escape is the first Ford SUV to combine class exclusive technology– Curve Control, (which slows vehicle when it detects that you’re approaching a corner too quickly), and Torque Vectoring Control, (which helps transfer torque from the pivoting tire to the outside tire to maintain stability when accelerating through a corner.)  The new Intelligent 4WD helps keep control of the vehicle in adverse driving conditions, and also provides excellent traction off-road.  Using 25 external signals to function, including wheel speed, accelerator pedal position and steering wheel angle, this allows the system to assess road conditions and driver input 20 times faster than the blink of an eye.

Additional notable options include the panoramic Vista Roof, premium quality materials, SYNC with MyFord Touch, a premium Sony audio system, BLIS (Blind Spot Information System), and Active Park Assist. (For further explanation on these technologies, you can reference my post on the Fusion.)

Perhaps the most brilliant new feature, (in my opinion), and one which will particularly entice the ladies, is the handsfree liftgate.  This is enabled by

2013 Ford Escape, hands-free liftgate

motion technology used in today’s video games, under the rear bumper of the liftgate. All you need to do is simply kick your foot under the center of the rear bumber, (with the key fob in hand), and the hatch unlocks and raises.  This eliminates the need to dig for keys or set down any bags or equipment.  The same process also closes the liftgate.  (I could’ve really used this myself the other day as I was unloading my shopping bags.)

Furthermore, as I mentioned earlier, there’s more cargo volume than outgoing Escape, partially due to the approximate 4 inch increase in length– 68.1 cubic feet of space behind the first row and 34.3 behind the second. The seat backs easily fold flat—  there’s a button for the head restraint, as well as a lever for the seat to flip forward.  The two-position load floor allows for either maximum luggage volume or a flat load floor.  AND, for those concerned about the utility aspect of the vehicle, the Escape has a trailer tow rating of 3,500 lbs.

So who’s the target customer? Well, let me preface this by noting that the small SUV segment fluctuates between the 3rd and 4th largest segment in the country.  Essentially it appeals to all, which represents a huge opportunity for those who can capture the market.

2013 Ford Escape, featuring SYNC with MyFord Touch

According to Sprawka, the target customer is “‘plugged-in,’ in their late 20s/early 30s, a highly-connected professional, design conscious, and really appreciates technology.  They like to feel good in what they drive.” He went on to explain that they want to demonstrate professional success in the vehicle that they drive, yet they want the utility aspect, and have a sense of adventure. Sprawka painted a clear picture when he discussed the results of their market research on the Escape, and mentioned how one individual said that “Mondays are better when there’s a great story to tell.” (I concur- no explanation necessary.)  And Sprawka added, “the Escape embodies this way of thinking.”

As to pricing– it remains about the same. However, I would like to note that despite the addition of all the new technology, the base price of $23,295 is is $200 less than the current Escape!

The newly designed Escape presents a global opportunity for Ford.  In Europe the sale of compact sport utilities has increased by 200% since 2000.  The Escape will be revealed in Europe (March) at the Geneva Motor Show as the “Ford Kuga,” with its own unique powertrains and features.  China will see the Kuga in the spring.

So will the new Escape live up to the public’s expectations?  Well, the design is distinctively different than the current model, which may deter some, but will obviously attract others.  That being said, in today’s society, when most of us are looking for versatility AND more technology in our vehicles, there’s no doubt that the 2013 Escape fits the mold.

2012 Chicago Auto Show: Spotlight on FORD, Part 1….a resurgence of noteworthy & edgy designs

2013 Ford Fusion

How does one begin to describe the new 2013 Ford Fusion?  “High visual quality, improved materials, attention to detail, and elevated levels of craftsmanship— so it feels like quality to the driver. This is a culmination of the best platform globally,” says Zack Nakos , Product Marketing Manager for the Ford Fusion.  By 2015, this platform will serve as the derivative for over a million vehicles, beginning with the Fusion in the U.S., and followed by the Mondeo next year in Europe and then in Asia.  And it’s no doubt that this dramatically redesigned vehicle demands attention.

2013 Ford Fusion

The Fusion is the first sedan to offer gasoline, hybrid and plug-in hybrid models. “It’s about the power of choice,” says Nakos.  For those concerned about fuel economy, the 1.6L EcoBoost, 4-cylinder engine is expected to deliver best-in-class fuel efficiency (around 37mpg).  Also offered in the line-up is 2.0L EcoBoost for performance-minded consumers, interested in the punch.  Furthermore, the Fusion Energi, which is the plug-in hybrid, aims to be the most fuel efficient mid-size vehicle in the world, with projected numbers at over 100MPGe. (For those of you wondering about the “e” at the end, this is a mile per gallon equivalency metric for electrified vehicles.)

The current hybrid boasts a nickel-metal-hydride battery, but in the 2013 model, it’s been replaced with lithium ion.  Most of you are probably wondering what the hec does this mean?  Well it’s 50% less weight and consumes 25% less space than the former option.  It also raises the speed under electric-only power from 47 to 62 mph.  So at the end of the day, you save weight, add power, and increase the cargo room by saving space.

2013 Ford Fusion

Now let’s talk technology– it was a major focus at this year’s Chicago Auto Show across the board, but Ford’s no stranger on the subject matter, leading the way in the industry with what they have to offer.  Featured in the Fusion is their first automatic transmission with an automatic start/stop system.  This stops engine power when vehicle is stopped and seamlessly restarts as driver releases the brake pedal— in turn, this helps to reduce fuel consumption and emissions by about 3.5%.

Some of the additional advanced technology features that will be available in the 2013 Fusion include SYNC- Ford’s award-winning, industry-exclusive, voice- activated communications and entertainment system.  Delving further is the optional MyFord Touch system, which adds an 8 inch screen in the center stack, and two 4.2 inch LCD screens in the instrument cluster, giving the driver the option to control the system by voice, the touch screen, or the 5-way controllers on the left and right sides of the steering wheel.  Launched on the 2011 Ford Edge, the Fusion will feature the latest, most up-to-date version of the MyFord Touch technology.  An all-new Lane Keeping System helps to keep the driver in their intended lane, and also provides an alert when drowsy driving is detected. BLIS, (which stands for blind spot information system), detects when there are vehicles in driver’s blind spot, and a light is illuminated to warn the driver.  Cross Traffic Alert warns the driver of oncoming traffic when reversing out of a parking

2013 Ford Fusion

spot.  And Active Park Assist helps alleviate the anxiety of parallel parking by calculating the trajectory and steering the vehicle into a parallel parking space.  Adaptive Cruise Control, when activated, can detect slow traffic ahead and slows the vehicle to the appropriate speed, resuming the set speed when traffic has moved or increased speed.  It also incorporates Collision Warning which warns the driver of a potential collision and assists in decreasing brake time by pre-charging the brakes.

The new model has grown, (literally), one inch bigger in height and one inch bigger in length, and the nearly five inch bigger wheelbase gives the illusion of grandeur, coupled with the sleek and sophisticated exterior styling.  Pricing has not yet been revealed, but you can expect the base price to start just above $20,000.

And specifically for the ladies?  Well the number one concern was ergonomics, according to Nakos.  Ford conducted both external and internal research, and to that end, one of the main goals was to create a comfortable, yet safe driving position for the female driver, (apparent when I sat in the driver’s seat.)  A lower, flush lift-over for the trunk also makes it easier for shorter people to load and unload cargo.

2013 Ford Fusion

In terms of safety, the body strength was increased by 10%, and dual front row knee airbags were added, along with adaptive front airbags that vent and tether to conform to the specific occupant’s size, position, and seatbelt usage.

Produced in the Hermosillo, Mexico plant and later in Flat Rock, MI, the Ford Fusion will  be seen in North & South American dealerships later this year, followed by the Mondeo in Europe and Asia next year. As most of you know the 2010 Ford Fusion received several accolades, including Motor Trend’s Car of the Year, and from what I can see, the future looks pretty bright.

Putting it out there….Chevrolet’s New Ecologic Environmental Labels

At this year’s (2012) Chicago Auto Show, I had the opportunity to speak with Bill Devine, Chevrolet’s Cross Brand Marketing Manager, about the launch of their new Ecologic labels.  Bill started off by explaining how the Chevy brand has made a major transformation over the last several years– from being recognized as a brand known for performance vehicles and trucks, Chevrolet now showcases a robust portfolio of eco-conscious vehicles.  A perfect example is the all-electric Chevy Volt, followed by the Malibu ECO. “Our main goal is to extend our environmental responsibility by sharing the environmental attributes of each of our products.  We like to call it responsible manufacturing.”

Ecologic Label on 2012 Chevy Sonic

The badge exemplifies a “wholistic” approach to environmental responsibility, expressing the “before”, “during”, and “after” in the vehicle lifespan.  It communicates vehicle-specific features like environmental aspects that relate to vehicle manufacturing and/or assembly (before); fuel-saving technologies, aerodynamics, lighter weight components, low-rolling resistance tires (during/on the road); and the “after” reflects how 85% of the vehicle, as determined by its weight, can be recycled at the end of the vehicle lifespan.  In essence the badging will showcase environmental features of the vehicle that relate to manufacturing, driving and recycling.

The label is audited by TwoTomorrows, an independent, third-party sustainability agency that provides auditing and assurance services to companies for environmental initiatives.  Devine went on to say that “they verify our technology, and more importantly how we articulate the information to the consumer.”

Chevrolet conducted two types of research in the process of the Ecologic label creation– qualitative (focus groups), and quantitative (metrics).  Female consumers were clearly interested, but they also found a significantly higher appeal amongst younger consumers (18-26), and older (46+) generations.

Ecologic 101

So what were the most compelling aspects?  According to the focus groups, consumers seemed to find the greatest appeal in the “landfill free” aspect of the manufacturing step, and also the “fuel saving technologies,” (for obvious reasons- we all want more bang for our buck).  Interestingly enough, they found women to be more in-sync with educational and informative labeling.  Ladies– perhaps this has something to do with the familiarity of reading nutrition labels at grocery stores?  Needless to say, I was curious as to how Devine thought this would affect the performance-minded consumers, and he stated that “it’s an eye-opener.”

When should we expect to see the labels?  The first vehicle to display the eco-badging will be the 2012 Sonic, put on by the manufacturer on the rear driver’s-side window, and we should see the vehicle sometime this February.  The Sonic will be followed by additional 2013 Chevy vehicles that will receive the label later this year.

Devine explained that Chevy started with the Sonic as it’s eco-friendly and also, it’s assembled in America.  “It’s a differentiation for us.  We’re going to get even more environmental credit.”

The Chevy-specific initiative, will debut first in the U.S. and then they will evaluate the global opportunity with the brand.  So what do you think folks–  Will this blatant display of information on environmental responsibility influence your car buying decision?  At very least, it’s a “feel good” motivator, right?

A “First Look” at the Chicago Auto Show 2011

This past Thursday, February 10 2011, I had the honor of joining my friends from Univision Chicago and attending the First Look for Charity benefit at the Chicago Auto Show.  This exclusive event is held the evening prior to the auto show opening and offers a premier viewing of all of the exhibits. Attendees danced to the beats of KC and the Sunshine Band, dined on elegant hors’ devours and libations from local establishments, and mingled while checking out all of the new vehicles.

This year’s event raised almost $2 million dollars– $1,905,060 to be exact, which benefits eighteen area charities.  Individuals can choose a specific charity to sponsor or elect to have the proceeds equally benefit all of the participating charities.  Kevin Mize, owner of O’Hare Honda and O’Hare Hyundai, Board member of the CATA (Chicago Automobile Trade Association), and Chairman of this year’s show, stated, “All of the benefitting charities are involved locally, so the money that’s raised in Chicago stays in Chicago.”  The black-tie benefit has been in existence over 20 years, and since it’s inception has raised over $30 million dollars.

The First Look for Charity is also a way for the Chicagoland new car dealers to showcase their positive impact on the community, and this year was no different.  One of the highlights of the evening was the drawing for the (2) grand prize vehicles– a 2011 Honda CR-Z, compliments of American Honda Motor Company, and a 2011 Hyundai Sonata Turbo, compliments of the Chicagoland and Northwest Indiana Hyundai Dealers.

Benefitting charities included:  Autism Speaks, Boys & Girls Clubs of Chicago, Catholic Charities of the Archdiocese of Chicago, Catholic Charities- Diocese of Joliet, Children’s Memorial Hospital, The Cradle Foundation, Cystic Fibrosis Foundation, Evans Scholars Foundation, Franciscan Community Benefit Services, Ray Graham Association for People with Disabilities, March of Dimes Foundation, Misericordia Heart of Mercy, Respiratory Health Association of Metropolitan Chicago, Special Olympics Illinois, Spina Bifida Association of Illinois, St. Coletta’s of Illinois Foundation, St. James Hospital & Health Centers, Jesse White Tumbling Team.

Automotive Sales Consultant Fired Over His Selection of Necktie… what is this world coming to?

An automotive sales consultant was fired from an Illinois dealership for wearing a Green Bay Packers tie in honor of his late grandmother.  This happened on Monday, the day after the NFC Championship game where the Chicago Bears were defeated by the Green Bay Packers.  The sales consultant stated that his grandmother was a big Green Bay fan.

Now don’t get me wrong, I happen to be an avid sports’ enthusiast and like most of those around me, fully support my home teams.  However, when does the situation permit your work superior(s) to dictate which sports team you can or cannot support?  There comes a point where figures of authority step too far, and in this case, that line was crossed…. by a lot.  Where does it end?

Priorities…

In a time where people are still struggling to find jobs or hold on to those that they have, someone gets fired based on the team they support?  Last time I checked, we live in America, the land of free choice.  One would assume that the manager would be focused on something a bit more relevant to the success of the store– say how many cars were being sold, or the service provided to the customers, rather than focus on the attire of the individual.  Unless of course, it violates a specific policy, which in this case, the manager admitted it did not.

Aren’t we backtracking here?  In a society so concerned with discrimination [of all sorts], the scenario becomes hypocritical if one can justify terminating an employee because of what sports team they support.  It’s a throwback to the “old” days of the stereotypical car dealerships and the image that manufacturers and dealerships themselves, have been trying to change for many years now.  It evidently still exists in some places.

A “Happy” Ending?

Last I heard, after the media got word of the situation, the dealership attempted to “re-hire” the individual, but he refused after receiving and accepting an offer from another store.  Kudos to him.

Correct me if I’m wrong, but this game has gone too far…

Have you been SYNC-ed yet?

No, I’m not referring to your kitchen amenities–  I’m talking about Ford Motor Company’s hands-free entertainment and communications system.

For you ladies that like to talk on the phone while driving- be it gossiping with your girlfriends, checking in with the kids, or taking care of business, this technology could be a life-saver, and in many cases now, prevent a costly ticket.  And gentlemen (and ladies) that like to conduct business calls on the road, well this too benefits you.  But in all seriousness, it’s truly a game-changing innovation for the auto industry that is altogether becoming a necessity.  And I’m not talking simply convenience here, but more importantly, safety.

Did you know that according to the National Highway Traffic Safety Administration,  drivers that are talking on the phone are 4 times more likely to get into an accident?  And the delayed reaction time caused by cell phone usage is as great as having a blood-alcohol level of .08! You all know what I’m talking about here– you see that person that slows down, cuts you off, or somehow aggravates you on the road (often causing road rage or unneeded stress), and when you pull up next to them, lo and behold, 95% of the time, they’re on their phone and not paying attention to the road.  Irritating, no?  (My blood pressure would probably drop a few notches if this was eliminated.)

So what does SYNC include?  Well, first off, as you may have guessed, hands free use of your mobile phone.  The system, built on a Microsoft platform, syncs with a Blue-tooth enabled phone and allows the user to make and receive phone calls while driving, by simply using basic voice commands.  The “entertainment” aspect of SYNC includes the USB feature, which allows the driver to plug in their flash drive, iPod, or other compatible music device into the vehicle’s USB port, and pick and choose their music simply with voice prompts.  Added in 2009, 911 Assist, a key safety feature when turned on, will automatically place a call to 911 in the event of airbag deployment or if the fuel cut-off switch is triggered, therefore ensuring that emergency vehicles are dispatched in the event of an accident where the driver is unconscious, or unable to place the call themselves. Vehicle Health Reports give the vehicle owner the ability to run a diagnostic report of the vehicle after creating an account on syncmyride.com, with the intent of promoting more regular vehicle maintenance.  And recently added for convenience and entertainment, is option called “SYNC Services”, which include things like turn-by-turn directions, sports updates, news, live traffic, stock quotes, even movie listings, …. (and the list goes on.)

The main competition at this point is General Motor’s OnStar system.  Albeit different than SYNC, both systems are based on the same concept of allowing drivers to talk hands-free while operating their vehicle, and in essence promoting safer driving.  Although OnStar was introduced to the market long before Ford’s SYNC system, the recent turmoil of the industry, coupled with GM’s bankruptcy allowed Ford to jump ahead of the game and lead the way in providing more advanced technology.

Some of the major differences?  GM charges a $199 annual subscription fee for their built-in mobile device. (In essence the vehicle itself acts as a phone that OnStar operates through, whereas SYNC connects with the driver’s own mobile device.)  Ford’s price points are significantly less, costing the consumer a one-time fee of about $395 to have the SYNC system installed in the vehicle, and for the basic communication and entertainment features, including 911 Assist, no additional charges.  For those that would like the additional SYNC Services features, like live sports updates, turn-by-turn directions, live traffic, weather, movie listings, and so forth, the service is free for 3 years, and then to continue the subscription after that period, a $60 annual fee is required.

In any case, automotive retailers are finding that BOTH systems are being seriously considered during vehicle purchases.  If we can prevent unnecessary accidents, and in some cases fatalities, due to distracted driving, then we all benefit.

And the Guest of Honor is…. Porsche 911 GT2 RS!

Last week I had the privilege of attending an uber-exclusive Porsche event at The Porsche Exchange in Highland Park, IL, where the “guest of honor,” for you Porsche fanatics, was the rare and limited vehicle on the showroom floor.  Upon arrival, I was greeted by the very hospitable Sales Manager, Faris Nijim, who led me to the 2011 Porsche 911 GT2 RS.  Yes, it was the car itself, live in the showroom!

Limited to only (2) public appearances in the U.S., The Porsche Exchange was the lucky contender for the second viewing of the vehicle.  The former was the unveiling at the L.A. Auto Show back in the fall.  Nijim proceeded to tell me that the next stop would be the Porsche Sport Driving School in Birmingham, AL, and then went on to share some of the details of the vehicle.

The Ultimate Driving Machine…

A Porsche enthusiast himself, Nijim was eager to relay that only 138 customer cars would be built for the U.S., out of a total of 500 GT2 RS vehicles to be built worldwide.  In the showroom was #31 out of 500, (which we noted from the numbered commemorative plaque on the glovebox.)  The MSRP base price comes in at a mere $245, 000.  Well, being the fastest and most powerful street-legal car Porsche has ever built and unmatched in its class, I thought it a relatively conservative number– relatively speaking, of course.  That being said, the top track speed was recorded at 205 miles per hour, boasting 620 horsepower at 6,500 rpm and 516 pound-feet of torque at 2,250 rpm, or a mind-boggling output of 172HP per liter.  Equipped with a 3.6L twin-turbocharged engine and 6-speed manual transmission, reaching 0-60 mph in 3.4 seconds, this Porsche is not for the meek or inexperienced driver. The quarter mile flashes by in a tick over 11 seconds at an incredible 129 MPH!  The color palette includes GT Silver Metallic (which is what I got to see at the dealership), black, white or red, and weighs in at 3,075 lbs as a result of a primarily carbon fiber construction and even an available lithium-ion battery.  One thing I found rather entertaining was the “emblem” that adorned the hood, which was indeed a decal rather than the traditional metallic ornament, to eliminate even the smallest ounces.

The national delivery date is set for February, and customers were given (2) options:  they could either pick-up the GT2 RS at their Porsche dealership, OR, at no additional cost, they have the opportunity to attend the Porsche Sport Driving School (Birmingham, AL for the Midwest), where high-performance, professional drivers will teach them the techniques and skill to handle their ultimate driving machine.

A bit about The Porsche Exchange

To give you a bit of background on the store, The Porsche Exchange has been family-owned for over 30 years, at their current location for over 7 years.  And for those of you movie buffs out there, this was the dealership that appeared in the movie “Risky Business!”  They are ranked the number ONE store in the Midwest, and fluctuate between number 12-15 in the entire country out of 200 franchises.  This past year (2010) they sold close to 400 new cars– not too shabby for an unstable economy, and out of the 138 new 911 GT2 RS vehicles, they are getting two of them.

One thing I noticed immediately, was the immaculate showroom, and Nijim went on to explain that The Porsche Exchange is one of the first stores to align with the corporate identity design.  Furthermore, because of their status and deep involvement with corporate, they are one of the first dealerships to pilot the “Porsche Experience”, which he explained as being the ultimate program in Porsche identity, which they also helped to create.  I’m not talking product knowledge here, that’s an obvious requirement for an employee.  The program is simply about the customer experience, and how Porsche wants to be the first and only automaker with a globally certified customer-facing workforce..  Beginning in March with the pilot, The Porsche Exchange will be investing over $4,500 per employee to participate in the program.

Expect the Exceptional

Delving further into the customer service experience displayed at The Porsche Exchange, I had the opportunity to speak with co-owner & VP, Bruce Semersky, who shed light on a particular situation that he encountered.  Ladies (and gentlemen), how did The Porsche Exchange build their top-notch reputation?  Well after speaking with Semersky, it was evident that even from the onset of ownership, they were a forward-thinking group.  He told me a story about his experience with an employee that insulted one of his female customers back in the 70’s.  Luckily for the customer, Bruce happened to be in the vicinity and intervened, AND proceeded to fire his employee for not displaying all due respect to the customer because she was female.  Impressive, to say the least!   Ladies… this is a store I’d buy my Porsche from, hands down.

No wonder they’re the number ONE volume Porsche store in the Midwest– they stand behind their motto “Expect the Exceptional.”  Actions speak louder than words, that’s for sure.

That’s Amore… a little bit of Italiano in the U.S.

Chrysler has finally released its full list of 130 [potential] dealerships across the U.S. that will enthusiastically sell the Fiat brand.   They’ve all received letters of intent, but must first fulfill the requirements to secure their spots.

A small car to compete in the B-car segment, the Fiat 500, is currently being introduced to the U.S. at the Los Angeles Auto Show.  Although some dealers are expected to receive a few of the vehicles in December, none will be delivered to customers until January.  This will be a 2012 model of the vehicle, and the major launch is planned for March.

There are plans to add additional dealers to the already designated list, which will blanket the 119 markets, identified as areas with high growth potential for small cars over the next several years.

Fiat will join the Chrysler dealerships, but vehicles will be in an allocated area known as the “Fiat Studio,” accompanied by accessories, and more importantly, trained experts on the product.  The North American version of the vehicle will be manufactured in Chrysler’s Toluca, Mexico plant, with the initial model being a 2-door hatchback.  Plans for a convertible and an electric model are in the works, but don’t expect to surface until later in 2011.

AutoNation, Inc., (largest publicly traded auto group), will take the lead on dealerships sporting the new Fiat.  They’ve reported to have received seven letters of intent.  Meanwhile they announced that they feel well-positioned with this vehicle, particularly with the fluctuating gas prices.  Being able to offer a smaller, more fuel-efficient vehicle will be to their benefit.

As far as expected numbers for the first year?  Chrysler has hopes to sell 50,000 Fiats in 2011, and then to increase this number to approximately 78,000 by 2013.  The current model has been referred to as an “icon” in Italy…. but then again, so has the Ford Fiesta for that matter.  And actually on a greater scale, it’s the number one selling small vehicle (B-car) in Europe.  That being said, although this is a smart move for Chrysler, these dealers have their work cut out for them.

Like the Fiesta, the Fiat has been modified to adapt to U.S. safety and emissions standards.  Last sold in the U.S. in 1984….(Fiesta was last sold in 1980).  A bit of a follow-the-leader trend here?  Well, I’m just pointing out the facts that I’ve noticed– the actual numbers will do the telling…

And how about Alfa Romeo?  Well it could be another opportunity down the road for these dealers, but we won’t know until next year.  I can say one thing, Marchionne is definitely keeping them busy…

Vicious Circle of Stolen Parts

A business model that revolves around theft? Not that unfamiliar when you look at the black markets that exist, albeit we’re specifically talking automotive here.  Police investigations have reported an increase of stolen in-dash, GPS navigation systems, especially over the last few months.  (And in case you didn’t know, GPS stands for Global Positioning Systems.)  Target vehicles include newer Cadillacs, Jeeps and Chrysler 300s, and the primary crime scenes- Michigan and Florida.

Re-purchased parts

In one particular situation [in Michigan] where a man’s in-dash navigation system was stolen, he ended up getting it back and re-installed, AFTER his insurance company paid the repair bill from the dealership.  You’re probably wondering what is she talking about???  Well, let me explain. What happened was the unit was stolen, after which the individual reported the incident to his insurance company.  The insurance company told him to go to his dealership and get the replacement.  Meanwhile, the thief got $200-$300 from the fence, who then sold it to an auto parts store for around $1,000.  The dealer then purchased the unit for $1,300 from the store and charged their customer, (in this case, the insurance company,) $1,875 + labor costs.

Total cost of the repair:  $4,700, including the $1,875 for the actual navigation unit.  When the man got his vehicle back and his CD ejected out of the stereo, he verified via the serial number that the unit was in fact, the original.

And the cycle of thievery…

Although it is ironic that this guy got the exact same unit back, the scenario as a whole is typical of what’s been happening.  The sequence is as follows:  Parts are stolen and the thieves make money; then the fences sell them online or to auto parts stores and also make money; dealerships purchase parts from the auto parts stores at a mark-up, and then the insurance is footed with a rather high bill to cover the cost of the unit and labor.  At the end of the day, the insurance pays out an exorbitant amount of unnecessary claims, which causes our rates to go up.  Between claims and repair costs, it’s estimated that somewhere over $3M has been paid out due to these thefts.

So as you can see, it’s all about simple economics here– the more parts stolen, the higher the demand for replacements…  and the vicious cycle continues.

You’ve got to admit, it is a pretty clever system that they’ve concocted.  That being said, the FBI has also gotten involved since many of the parts are being transported over state lines.  Between FL and MI, over 1,500 stolen units have already been recovered.

Now I don’t know about you, but I sure as hec don’t need to spend any more money on car insurance!  I feel enough ‘theft’ from my pocket that contributes to insurance companies…

From Cars to Politics…

Well the auto industry IS political, no?  Did you know that four automotive dealers (current and former) were bidding to upheave Democratic incumbents in this past election?  Well they did, and three of the four were successful in doing so, following suit with the rest of the national sweep of the GOP across America.

The Republican [dealer] victory has doubled the number of dealers represented in the House of Representatives, not only signifying a record number of representation, but all of them from the GOP.  The candidates include Mike Kelly of Pennsylvania, James Renacci of Ohio, and Scott Rigel of Virginia, all of which by won by margins of at least 10 percentage points.

Well folks, I may have my own thoughts and opinions about this situation, but at the end of the day, let’s hope that they remember their roles and put the interests of their constituents before their own.

But now on to a more positive note, October signifies the “road to recovery” for the auto industry.  All major auto manufacturers showed a solid increase in sales, with the exception of Toyota, and have furthermore exceeded the auto analysts’ predictions.  New vehicle models are drawing in consumers, meanwhile confidence in the domestics has risen.

Despite the situation of turmoil and the struggle to reach this point, it looks as if there is light at the end of the tunnel.  The numbers are discernible and a more positive future is imminent.  I think that auto manufacturers can finally say, “yes we can”…