First Up: June 2009

ON TRACK  What’s new on wheels

By Joe Phillips

PRODUCT    CADDY SRX: A BEAD ON LEXUS

Washington, D.C.—Sure, the focus for months has been on GM’s restructuring. But there’s some stellar new product out this summer, such as Caddy’s SRX redo. Aimed at the class-leading Lexus RX 350, this midsize crossover has edgy, Audi-like looks and a solid BMW feel.

Slightly smaller than its predecessor, this SRX comes with choice of two V6 engines—both of which use regular unleaded gas, not premium. There’s also choice of 18- or 20-inch wheels. And an optional high-tech all-wheel-drive system—courtesy of Saab—uses 20 sensors to really harness torque.

Inside, the cabin is borrowed from the CTS sport sedan, with a pop-up touch screen nav system and slick white-face gauges.

Price: $42,000. Mileage: 18 city/24 highway. Competition: Acura MDX, BMW X3, Infiniti FX35, Lexus RX 350, Volvo XC60.

PRODUCT   2010 INFINITI G37 CONVERTIBLE: RETRACTABLE HARDTOP

Washington, D.C.—Based on the popular G37 sedan and coupe, Infiniti’s first convertible pops into showrooms this month. Two trim levels, plus optional backup camera, iPod interface, and Bose stereo, with 13 speakers (including one in each headrest) Price: $46,000. Mileage: 17 city/25 highway. Competition: BMW 3 Series, Lexus IS 250, Mercedes SLK.

CONCEPT    HYUNDAI NUVIS: A GULL-WING CUV

What it is: Compact hybrid crossover

Details, details: Next-gen gas/electric hybrid power. Air conditioning runs only on battery power to save fuel. Cabin has four captain’s chairs. Each passenger gets his or her own news, music, traffic updates, and menu offerings from local restaurants.


Pros: Futuristic, windswept design. High-tech interface.

Cons: Another crossover?

When will it hit U.S. showrooms? Unlikely, but expect some features in Hyundai models.

ON TRACK  What’s new in the business

Edited by Joan Mooney

GM    HUMMER: LEARNING CHINESE

Welcome to Sichuan! Hummer

One thing is certain: Little-known Sichuan Tengzhong Heavy Industrial Machinery Co. will acquire Hummer at considerably less than the $1 billion it usually takes to develop a new brand, says J.D. Power and Associates Asia analyst Tim Dunne.

“I can only surmise that Tengzhong wants to sell Hummers in China as well as continuing here through Hummer’s 150 U.S. dealerships,” Dunne says. “The Chinese SUV market is small but growing—440,000 last year out of 5.6 million new passenger vehicles sold,” or 8 percent of the total. J.D. Power estimates Chinese SUV sales will nearly double by 2014 to 800,000.

U.S. dealers hope Tengzhong will continue development of Hummer’s H4, a Jeep Wrangler–style SUV prototype that could take either a diesel or electric engine, says general manager Tim Lerchenfeldt, Cadillac/Hummer/Saab Village, Norwood, Mass.

“Hummer shouldn’t lose its iconic off-road image, but we do need more fuel-efficient vehicles in the $16,000 to mid-$20,000 range.” Lerchenfeldt hopes Tengzhong learns from Indian company Tata’s example. When it bought Land Rover and Jaguar last year, Chairman Ratan Tata came here to hear U.S. dealers’ concerns.

—SARAH E. MORAN

LUBE TECH    FUEL DISTRIBUTOR: OILING UP CAR SALES

Buy Now! Lube Tech's $2,000 credit

In the Twin Cities region, a family-owned oil distributor is helping its customers—and ultimately itself. Through September, Lube Tech is offering its employees a $2,000 incentive to buy a new vehicle. The only restriction for the 200 workers: The new unit has to come from a dealership that’s a Lube Tech customer. Lube Tech’s Bob Palmgren says that covers most brands, domestic and import. By June 2, 10 employees had taken advantage of the offer, with another dozen still shopping. Some local dealers have added their own incentives, such as discounts or gift cards, to sweeten the deal. “We thought it was our duty to pay back our dealer customers who have been good to us over the years,” says Palmgren.

—GARY WOLLENHAUPT

CREATIVE    DEALERSHIP TARGETS ETHNIC MARKET

They’ll take Manhattan: Ad campaign

Target marketing can work, even in the sharpest downturn since the Depression. With sales slipping and traditional advertising losing its punch, New York’s Manhattan Automobile Co. teamed up with multicultural marketing firm Global Advertising Strategies on an ad campaign aimed at the tristate Russian-speaking community, which represents a major chunk of the Mazda/Land Rover/Volvo store’s customer base. The ads, which ran on Russian-language cable TV, were cross-promoted by Global with tickets to a Russian concert and gift certificates to Russian businesses. The campaign resulted in six vehicle sales and customer contact information from more than 200 inquiries.  

—JERILYN KLEIN BIER

GM     VEHICLE INTRO: NEW CAMARO STOPS TRAFFIC

Showing some muscle: Camaro motorcade

Chevy introduced the 2010 Camaro in a very public way—and dealers were in the thick of it. Last month, dealer motorcades of the new model rolled through Dallas, Houston, New York, and Philadelphia in what Houston dealer Cary Wilson of Ron Carter Automotive Group called “the best intro event ever for raising awareness.” In Houston, 50 dealers and general managers drove Camaros on a 50-mile route as all other traffic was held back by a police escort, and stop lights were officially ignored. Houstonians watched the caravan from highway overpasses and on city streets, and GM spent more than $300,000 on local advertising.

“There is terrific pent-up demand for the Camaro,” says Houston dealer Matt Davis, whose store, Davis Chevrolet, presold 22 units.

—LINDA WATER NELSON  

CENTENARY    HULSIZER CHEVY: 100 YEARS AND COUNTING

Hulsizer Chevrolet dealer Bill Schneck keeps his family’s history close by—literally. Only steps from his office, his great-grandfather C.L. Hulsizer pounded out horseshoes and farm implements as a blacksmith more than 100 years ago in Montgomery, Pa. His tools are still on display in the showroom. Schneck still gets a laugh thumbing through old dealership records, such as a 1917 bill of sale for a Ford Touring Car that cost $360, plus $14.75 tax.

—LAURA WITHERS

NETWORKING     TWITTER AS A SALES TOOL

Hot tool? Trying Twitter

Twitter may come off as just the latest gimmicky tech toy, but some dealers using the social networking service are seeing real results. Metro Ford of Schenectady (N.Y.) scheduled 50 used-car appointments through Twitter within the first three months of use, says vice president Dave Carach. The service lets users send text-based posts of up to 140 characters to other users who have subscribed to them).

“We’re tweeting to thousands of people, and it’s not uncommon for our messages to be re-tweeted,” says Carach.

Tim Martell is another recent convert. The e-commerce director for Marlboro (Mass.) Nissan got a message from a customer who wanted the dealership to order and install a bumper cover for his Infiniti G35. “He ordered the cover from us, and I told him he could save money by having it installed on his own,” says Martell. “The [Twitter] community knew we weren’t just a business after money.”

—MARTHA THOMAS