First Up: September 2006

ON TRACK  What’s new on wheels

By Joe Phillips

PRODUCT    VW RABBIT: HOPPING BACK

Rabbit redux: VW returns to its roots.

Philadelphia—After a 20-year hiatus, the Rabbit, the all-new replacement for the next-generation Golf, is back in U.S. showrooms. VW hopes the name revives fond memories in older buyers and jump-starts the hearts of younger ones.

But badging aside, this econo-hatchback—available with three or five doors—is quiet and solid. That’s a good thing, considering VW/Audi’s shaky quality rap in recent years. A 150-hp, four-cylinder engine churns out 30 percent more power than the old Golf, and the interior is loaded with standard fare.

And notably, VW seems to be returning to its entry-level roots, casting aside those ill-received Phaeton-like ambitions.

Price: $15,000. Mpg: 23 city/29 highway. Competition: Dodge Caliber, Honda Civic, Kia Spectra, Mini Cooper.

PRODUCT    TOYOTA YARIS: FUN, FUEL-SAVVY COMPACT CAR

Washington, D.C.—Replacing Toyota’s dowdy Echo, the sporty and surprisingly roomy Yaris is available as a sedan or two-door hatch. The sprightly 106-hp four-cylinder comes with five-speed manual or four-speed automatic. Options: keyless entry, side/head airbags, sliding/reclining rear seats. Price: $11,000. Mpg: 34 city/39 highway. Competition: Ford Focus, Honda Fit, Hyundai Accent, Scion xA.

CONCEPT    FORD REFLEX: RADICAL COUPE

What it is: Versatile three- or four-seat coupe.

Details, details: Reverse gullwing doors, 20-inch wheels. With no wood or leather, interior has plastic seats, two headrest-mounted TVs, and techno LED-illuminated dash. Flip a switch to lose luggage space but gain an extra rear seat. Power comes from diesel-hybrid engine that uses headlight- and taillight-mounted solar panels.

Pros: Eco-friendly.

Cons: Many features won’t make production.

Will it hit dealer showrooms? Sometime in the near future.

ON TRACK  What’s new in the business

Edited by Joan Mooney

SERVICE    PLEASE PLEASE THEM

Ready to serve: Morton in the store’s café

To help dealers improve customer service, Lexus lined them up with some corporate stars—Apple, Nordstrom, and the Ritz-Carlton. The automaker paid for dealers to attend a meeting with speakers from those high-profile companies, and several dealers have adopted their recommendations, to good effect.

At Tom Williams Lexus, Irondale, Ala., sales have jumped 20 percent and service retention is up more than 10 percent since the conference, says general manager–dealer operations Bill Morton. The store introduced such programs as personalized valet parking, so customers are always addressed by name. A system for notifying busy service staff that a customer is waiting has led to shorter waits.

David Reeve, director of operations, Performance Lexus, Cincinnati, has developed a local one-day version of the program not only for his managers, but also for those at the other area Lexus store. And Reeve is adding suggested amenities to the customer area—Internet connectivity, a café, and more personalized attention—in a new facility being built next year.

The changes don’t have to cost a lot, says Reeve. “You could see results from something as simple as replacing coin-operated vending machines with free beverages and snacks.”
—Linda Water Nelson

HELP    DEALER DONATES HELP DEALER DONATES CAR TO ASSAULT VICTIM

Thank you! Cade with Harper (center) and      store president Mike Beyer

After Yvette Cade was doused with gasoline and set afire by her estranged husband (who’s now serving a life sentence), she developed disabilities that make public transportation difficult.

So when Warren Harper, business manager, Don Beyer Volvo, Falls Church, Va., heard Cade give a talk about her experience, he wanted to help her.

Harper told boss Don Beyer (a former Virginia lieutenant governor), who said, “Let’s do something.” In a ceremony attended by elected officials and police, Harper and Beyer presented Cade with a 2007 Volvo S40.

Since the presentation, the store has received dozens of phone calls and visits from people vowing to buy their next cars there. “That wasn’t the reason we did this,” says Harper. “The more publicity this brings her, the better.”
—Nancy Dunham

NONRETIREMENT    DEALER BACK IN ACTION

Retirement, not! Maxwell

What does life hold for a retiring auto dealer? For one, it’s not days at the beach but owning a new, smaller dealership and serving a second term as mayor of Round Rock, Tex. Nyle Maxwell sold his three stores to Group One in 1998; three grew to eight, which he operated for the megadealer as the Maxwell Automotive Group until 2005. But while preparing for retirement, Maxwell found he wasn’t really ready to give it all up. He bought Nyle Maxwell Pontiac/GMC, Round Rock, from Group One because he liked its small size and product mix. “Until Group One, I had always been self-employed,” says Maxwell. “I didn’t know how much I missed the day-to-day involvement, warts and all, until I was back into it again.”
—Linda Water Nelson

AWARD    IMMIGRANT WINS AYES INSTRUCTOR HONOR

Recognition: Cruz (second from right) with past winners and AYES executives

Eduardo Cruz immigrated to the United States from Cuba with a Ph.D. in mechanical engineering, but little English. Eight years later, he has been chosen as instructor of the year for Automotive Youth Educational Systems (AYES).

A native of Havana, Cruz spent more than 20 years consulting for automotive companies on auto repairs and tech training there before leaving for the United States and settling in Florida.

He first worked here as a custodian in an elementary school while he improved his English. Eventually he earned his diploma, then his ASE automotive master certification, and has been working with the AYES program since 2002.

Cruz, now an automotive technical instructor at Lorenzo Walker Institute of Technology, Naples, Fla., was picked from more than 900 instructors in AYES-certified training schools nationwide.

POLITICO    DEALER-CANDIDATE BEATS THE ODDS

Winner: Dickerson

When dealer Eric Dickerson ran in the Republican primary for Indiana’s seventh congressional district, he won 55 percent of the vote. Since he had four opponents, including the party’s endorsed candidate, Dickerson’s victory surprised many people—but not him.

“After you have been a dealer, not much can surprise you,” says the owner of Eric Dickerson Buick, Indianapolis. Think-on-your-feet experience is good training for a politician, adds Dickerson, and so is customer retention—which is not unlike voter retention.

Dickerson’s all-volunteer campaign staff included his son, Blan, who began running the dealership a year ago, daughter-in-law (and service manager), new-car manager, technology manager, and legal counsel.   
—Linda Water Nelson

THEFT    SECURITY LESSONS

Hummer H2: Recovered after being stolen

A Billings, Mont., dealership got an inexpensive but scary lesson on lot security when a vehicle was stolen by 21-year-old Daniel Joseph Uptain of Casper, Wyo.

Uptain told investigators he stole six vehicles in two states during five days in June after he found out his National Guard unit would be deployed to Iraq, according to news reports. One vehicle was a 2003 Hummer H2 from Denny Menholt Frontier Chevrolet/Hummer (perhaps he wanted some driving practice for his upcoming duty). The $35,000 Hummer was recovered undamaged, says assistant operations manager Terry Hanson.

During the theft, one of the lot cameras was disabled because of power surges from heavy thunderstorms, and another camera picked up the police coming to investigate, but not the crime. Hanson has now installed additional lot cameras and checks the security equipment each day to make sure it’s working.

The dealership was lucky, Hanson says, because the thief broke the lock off the fenced bullpen where the Hummer was parked, and it was immediately clear the vehicle was missing. Otherwise, the dealership might not have known the Hummer was gone until the monthly inventory.
—Gary Wollenhaupt