First Up: September 2009

ON TRACK  What’s new on wheels

By Joe Phillips

PRODUCT    LINCOLN MKT: UPSCALE CUV

Modish MKT: Refined crossover

Washington, D.C.—How to cut through the crossover clutter? Lincoln’s strategy is to give its all-new MKT quirky styling, superb handling, and scads of standard fare. Biggest plus: an optional 355-hp, twin-turbo EcoBoost V6 that not only sips gas but also blasts from 0 to 60 in just 6.1 seconds.

There’s room for seven, though headroom is sparse in the third row. A super-quiet cabin has 12-way heated/cooled seats, tri-zone climate control, power-adjustable pedals, and retractable sunshade. High-tech options: panoramic sunroof, dual-screen rear-seat entertainment, and built-in fridge/freezer. A special key even allows parents to set top speed and stereo volume for teen drivers.

Price: $44,500. Mileage: 17 city/23 highway. Competition: Acura MDX, Buick Enclave, Ford Flex, Toyota Venza.

PRODUCT   2009 BMW 7 SERIES: FLAGSHIP SEDAN

Washington, D.C.—BMW’s flagship 7 Series gets a complete redo, with softer styling, user-friendly dash, and more powerful V8. Lots of luxe and safety features, including roll-prevention system, soft-close doors, and rear- and side-view parking cameras. Price: $81,000. Mileage: 15 city/22 highway. Competition: Audi A8, Lexus LS 460, Mercedes S-Class.

CONCEPT    KIA SOUL’STER: FUNKY TUNER

What it is: Dune-buggy wannabe.

Details, details: Based on boxy Soul, but with two doors, shortened windshield, and two-piece canvas roof. Styling cues: side vents, beefy tires, and yowza-yellow exterior. Choice of two 30-mpg four-cylinders. Fold-flat rear seats. Hand-crank windows.

Pros: Cool looks, truck-bed rear.

Cons: Practical only for surfer dudes.

When will it hit U.S. showrooms? Unlikely.

ON TRACK  What’s new in the business

Edited by Joan Mooney

LOAN    COMMUNITY AID FOR DEALERS

Transformation: From Saturn to Mazda

“Unusual times call for unusual action,” says Fran Fulton, economic development manager for the City of Torrance, Calif.

That’s why the Torrance City Council is working to loan the owners of a former Saturn dealership funds to finance a Mazda store on the existing site, Fulton says. The loan will likely be for $250,000 at 6.75 percent interest. “This will help us keep the jobs, keep the revenue, and avoid blight.”

If the Mazda dealership becomes a reality, it should create 10 jobs and $25 million in annual sales, and bring in $150,000 annually in sales tax, according to published reports.

Dealership consultant Richard Flint is not aware of other dealers receiving such loans, but says many are now hosting community activities such as barbecues and car shows in an effort to join together in weak economic times.

The former dealership now sells parts and service, but the owners, Russell and Matt Hand, would like for it to become a new-car dealership again.

—NANCY DUNHAM  

GIVEAWAY    TRADE-IN: HELPING THE HANDICAPPED

Getting a lift: Prize Caravan

When a 1997 Dodge Caravan Sport with a wheelchair lift was traded in at Hyundai of Tempe (Ariz.), general sales manager Jeremy Day realized how much the customized van could mean to someone and decided to give it away. After the store’s “Helping Hands” contest drew more than 500 entries, the Caravan and a three-year/36,000-mile warranty went to a family in need (both the father and son are in wheelchairs). “The father went in two years ago for outpatient surgery, got a staph infection in his spine, and never walked out,” says Day. “And his son has multiple sclerosis.” The family’s happiness at winning was plain to see, says Day.

—KIM FERNANDEZ

FACILITY    GREEN SAVINGS

LEED guys: Jack Caldwell (left) and Jay Caldwell, with Arkansas governor Mike Beebe (center)

Dealer Jack Caldwell and son Jay were pleasantly surprised to find that building a “green” store cost only 7 percent more than building traditionally, and the cost can be totally recouped in six years. Less-toxic adhesives, paints, and sealants were used, says Jay Caldwell, partner and general manager of Caldwell Toyota/Scion, Conway, Ark. The dealership was able to recycle more than 70 percent of the project waste, some through donations to Habitat for Humanity. In August the store became the first dealership in the state to receive the U.S. Green Building Council’s Gold Leadership in Energy and Environmental Design (LEED) award.  

—LINDA WATER NELSON

MAZDA     ‘RETAIL REVOLUTION’ RENOVATION DRIVES SALES

Mazda makeover: Dealer Morais in redone Open Road store

Despite the recession, Open Road Mazda of Morristown (N.J.) is capturing customers with its $2.5 million renovation. Since the June 29 grand opening, new-vehicle sales have doubled for Mazda’s first Retail Revolution store in the New York area—one of 106 nationwide featuring a sporty look, an M Café for no-pressure Internet browsing, and well-charted 20-minute test-drives.

The dealership is on track to sell 1,500 to 2,000 new units its first year, says Open Road Auto Group senior vice president Michael Morais. The 14-store group, which bought and moved the Mazda point to Morristown in late 2007, opened an Audi store and two Volkswagen dealerships in New York City this July.

—JERILYN KLEIN BIER

TRASH   SAVING BY RECYCLING

Don Chalmers Ford, Rio Rancho, N.Mex., cut more than $10,000 from its monthly waste-disposal bill by recycling more of its trash. The store’s Green Team, a cross section of employees, consulted for free with Waste Management Inc. and the state Environment Department.

Trash removal was cut from from daily to three times a week, says Chalmers spokesman Lee Butler. Employee awareness and changing habits were key, he says.

The Green Team created a chart showing staffers what they can re-use or recycle, including aluminum cans (with proceeds donated to the Pediatric Brain Tumor Foundation), cardboard, magazines (with names removed), paper cups (employees must use their own mugs—paper cups are for customers), and paper (employees are urged to print on both sides). “Customers expect it,” says Butler. “We want to be good servants to the community.”

Other area businesses also are interested, including a hospital with which the dealership shares ideas and best practices.

—LEIGH GLENN

100 YEARS    A STORE’S CENTURY OF GOOD LUCK, HARD WORK

Back in the 1980s: Luck Motor Co.

The horseshoe that once adorned Luck Motor Co., a Chevrolet dealership in Ashland, Va., was a relic of its start as a livery stable in the early 1900s. The store has grown in its 100-plus years and moved several times before settling on 22 acres near busy U.S. 1. There have been opportunities to add brands, says Ross Luck, whose great-grandfather James bought the family’s first and only franchise in 1916. But the offers were always refused. Says Luck of his grandfather, who turned down Cadillac in the 1950s, “He wanted to do one thing and do it right.” It’s now one of the oldest dealerships in Virginia.

—LAURA WITHERS