The Impact of Health Care Reform on Dealerships The Impact of

Inside this issue:
Dealership Showcase
Papik Motors
Industry Spotlight
Paul Walser
The Impact of Health Care
Reform on Dealerships
Fall 2012
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Volume 9 • Issue 1
2
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IN THIS ISSUE
8
Cover:
OUCH!
33
Dealership
Showcase:
Papik Motors
34
Industry
Spotlight:
Paul Walser
Table of Contents
2012 Executive Committee
MADA Minutes
Gary Papik honored as TMQDA nominee
from Minnesota...........................................4
MADA in Washington DC...........................4
President
Paul Walser, Walser Automotive Group
President Elect
Steve Brimhall, Minnesota Motor Company
Treasurer
Morrie Wagener, Morrie’s Automotive Group
Secretary
Greg House, House Chevrolet
Immediate Past President
Don Hilligoss, Ranger Chevrolet
Cadillac Buick GMC
Executive Vice President
Scott Lambert
On the Cover
The Impact of Healthcare Reform on
Dealerships: An Employee Benefits
Compliance Perspective...........................8
EDITORIAL STAFF
Scott Lambert, Publisher
Alyssa Schlander, Senior Editor
Ginger Lemke, Editor
Minnesota Auto Outlook
Comprehensive New & Used Vehicle
Information on Minnesota’s Automotive
Market.......................................................19
PHOTOGRAPHY
Jim Mims, Mims Photography
SUBSCRIPTIONS
Minnesota Dealer Outlook is an official
Minnesota Auto Dealer Association
publication, provided Quarterly to Members
of the Minnesota Automobile
Dealers Association.
SUBMIT ADDRESS CHANGES TO:
Minnesota Automobile Dealers Association
200 Lothenbach Avenue
West St. Paul, MN 55118-3505
Phone: 651.291.2400 • Fax: 651.291.2894
Toll Free: 1.800.652.9029
Email: brom@mada.org
ADVERTISING SALES:
Ginger Lemke
Phone: 651-291-2400
Email: ginger@mada.org
www.mada.org
MADA News
MADA Takes on Visible Cusotmer..........15
Dealers Are Good Neighbors
Good News..............................................16
INDUSTRY News
2011 Industry Data..................................18
Dealership Showcase
Papik Motors.............................................33
Industry Spotlight
Paul Walser..............................................34
Advertising Directory
Blue Cross Blue Shield MN... Back Inside Cover
Bank Of America Merill Lynch..................... 5
CarSoup.com............................................. 14
CVR............................................................. 7
CliftonLarsonAllen..................................... 13
MADA Business Cards.............................. 26
On the Cover:
John Wiese, John Wiese Ford, Inc., Sauk
Centre, is not a doctor, but he plays one
on the cover of this issue of Dealer Outlook
magazine – along with patient Dennis
Oltman and Alyssa Schlander of MADA.
Data Source Information for Minnesota
Auto Outlook on pages 19 - 32
Exclusive source for new vehicle
registration data presented in Minnesota
Auto Outlook is AutoCount, an Experian
Company. AutoCount specializes in
providing detailed new and used vehicle
sales and registration statistics. Data is
available on a timely basis on the internet.
For more information on Auto Count, call
407-770-5900 or visit AutoCount’s web
site: www.autocount.com
MADA Direct Mail........................................ 6
MADA Endorsed Services and Vendors...... 6
Minnesota Dealer Outlook Online.............. 29
Protective.....................................Back Cover
Reliable Plus.............................................. 29
StarTribune................................................ 30
Wings Financial................Front Inside Cover
WIPFLI LLP............................................... 28
3
MINUTES
Gary Papik honored as TMQDA nominee from
Minnesota
The MADA Selection Committee has named Gary Papik of Papik Motors,
Inc., Luverne as the 2013 Time Quality Dealer of the Year nominee
representing Minnesota. The TIME Magazine Dealer of the Year award is
one of the automobile industry’s most prestigious and highly coveted awards
for new car dealers. Recipients are among the nation’s most successful
auto dealers who have also demonstrated a long-standing commitment to
effective community service.
Gary started in the auto industry while still in high school, eventually
becoming full owner of his own dealership in 1994. Gary’s wife Janine;
daughter Heidi Sehr and her husband, Micky; daughter Gretchen Jepperson;
and son Jordan, are all involved in the family business.
The finalist and national award winners will be announced at the NADA
Convention opening ceremony in Orlando, Florida on February 9th, 2013.
Gary Papik, TMQDA nominee
visit us online at
www.mada.org
MADA in Washington DC
NADA Director Todd Snell, Mike Gallagher, Vice
President of Operations at Motors Management
Corporation, MADA Executive Vice President Scott
Lambert, and Government Affairs Associate Jacob
Millner recently attended the annual NADA Washington
Conference. This national meeting included staff and
dealers from across the country, a long list of notable and
interesting speakers, as well as meetings with members
of Minnesota’s Congressional delegation. Work included
meetings with NADA staff, other interested state and
regional Associations, and Members of Congress
Pictured from left: Todd Snell, Jacob Millner, Mike Gallagher, Scott Lambert
regarding the impending insolvency of the Central States
Pension Fund. MADA also thanked Sen. Klobuchar for agreeing to sponsor H.R. 5859 a bill to eliminate a requirement
that dealers provide certain insurance information to consumers. The group also received a private VIP tour of the
West Wing.
4
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MADA NEWS
New Website for
MADA is pleased to announce the release of our newly
redesigned website. By updating our site, www.mada.
org, with a modern look and feel, we are able to improve
navigation and provide enhanced tools to help your
dealership stay informed.
Training, Webinars and Manuals
All the upcoming classes and webinars offered by MADA
are listed in an easily viewable format, with online
registration. The new site also offers the ability to order
training manuals and past webinars.
Take a Look:
Legal and Legislative Information Easy to Find
Our popular legal and legislative information is now easy
to find and view. The site’s legal pages provide links to
dealers’ most frequently asked-about legal subjects. The
most recent news from the State Capitol is available in
both written and video format so you can stay up-to-date
on public policy discussions affecting the automotive
business.
Buy/Sell Dealership Equipment
Our new site features an online classified ad section
available for MADA members to list used dealership
equipment for sale. Just sign in with your MADA Services
account number to list used equipment on the site.
MADA Products and Services At Your
Fingertips
It’s easier than ever to browse the products and services
offered by MADA Services, Inc. on the web. If you’re
already an MADA Services customer, you can sign in the
same as you always have to view your MADA Services
account history and preferences.
There’s more to discover about our new and improved
website. We hope you’ll take the time to visit us at
www.mada.org!
From driving operational efficiencies
through navigating the road ahead.
Also, it’s easy to find vendors of a variety of products
and services – we encourage our members to check out
our Endorsed Vendors page to find out which companies
support your state association.
For more than seven decades, we’ve helped auto dealers enhance their operations,
improve their bottom line and navigate changing conditions. Delivering unwavering
commitment, deep industry expertise, financial strength and a full range of
customized solutions to help you succeed.
James Hultgren
Dealer Financial Services
Client Manager
James.Hultgren@baml.com - 651.329.1501
“Bank of America Merrill Lynch” is the marketing name for the global banking and global markets businesses of Bank of America Corporation. Lending, derivatives, and other commercial banking activities are performed globally by banking affiliates of
Bank of America Corporation, including Bank of America, N.A., member FDIC. Securities, strategic advisory, and other investment banking activities are performed globally by investment banking affiliates of Bank of America Corporation (“Investment
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5
Banking Affiliates”), including, in the United States, Merrill Lynch, Pierce, Fenner & Smith Incorporated and Merrill Lynch Professional Clearing Corp., both of which are registered brokerdealers and members of FINRA and SIPC, and, in other
jurisdictions, by locally registered entities. Investment products offered by Investment Banking Affiliates: Are Not FDIC Insured • May Lose Value • Are Not Bank Guaranteed. ©2012 Bank of America Corporation | ARW0N392 | DFS-103-AD
MADA Endorsed Services & Vendors
Computerized Vehicle Registration
CVR
F&I Products
Protective
Group Health Insurance
Blue Cross Blue Shield of MN
Delta Dental
ReliaStar Life
Workers Compensation
Ensure Agency
Midwest Family Mutual
Dealer Bond Program
Ensure Agency
Collections
Springer Collections
Check Guarantee/Credit Card Processing
Certegy / FIS
Disability Income Insurance & Section 125 Cafeteria Plans
American Fidelity Assurance
OSHA, EPA & DOT Compliance/Training
ComplyNet Corporation
Call MADA for all of
your Direct Mail Needs.
651-291-2400 • 800-652-9029
Fleet Fueling Program
SuperAmerica
Office Supplies
S & T Office Products
Website Management
Autobase
Uniforms and Linen Services
AmeriPride Linen and Apparel Services
Hole-In-One Insurance
Hole-In-One-USA
Pre-Paid Legal, Jim Gavin
Identity Theft Shield & Pre-Paid Legal Services
6
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COMIC CORNER
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7
As dealerships plan to adjust
employee benefits strategies
to comply with the Patient
Protection and Affordable
Care
Act
(ACA),
it
is
important to understand
the key provisions in the
new law from a compliance
and financial perspective.
The primary compliance
considerations
include
providing employees with
information about coverage,
including costs on employees’
Forms W-2, and understanding
rebates from insurers.
Summary
Coverage
Benefits
and
As plan sponsors, dealerships
will need to provide a Summary
of Benefits and Coverage
(SBC) document to health plan
participants beginning on the first
day of the first open enrollment
8
www.mada.org
by Doug Bertossi
The Impact of Health Care
Reform on Dealerships:
An Employee Benefits
Compliance Perspective
period starting on or after September 23, 2012. The SBC must be provided
to participants and beneficiaries who enroll or re-enroll in group health
coverage during open enrollment.
The SBC should include uniform standard definitions of medical and health
coverage terms; a description of coverage (including the cost-sharing
requirements such as deductibles, coinsurance, and co-payments); and
information about any exceptions, reductions, or limitations under the
coverage. Examples of benefits and coverage for common scenarios are also
required.
W-2 Reporting
Beginning in 2012, employers must report the cost of employer-sponsored
health coverage on plan participants’ annual Forms W-2 for calendar year
2012. The purpose of the requirement is to provide information to employees
about the cost of health coverage; it does not affect taxation. The amount
reported includes both the dealership’s and the employee participant’s
contributions. Small employers — those required to file fewer than 250
Forms W-2 for the calendar year prior to the reporting year — are not subject
to the requirement.
Medical Loss Ratio Rebates
The ACA Medical Loss Ratio (MLR) standard requires insurers in the individual
and small group health insurance markets to spend at least 80 percent of
premium dollars on medical care and quality improvement. This amount
increases to 85 percent for insurers serving large groups.
Insurers that do not satisfy the MLR standards must provide rebates to their
employer plan sponsors. For individual policies, the insurer must provide
www.mada.org
9
The Impact of Health Care
Reform on Dealerships... (cont...)
an MLR rebate to each individual participant/employee. For group policies,
the insurer must generally provide the rebate to the dealership as the plan
sponsor, who, in turn, must ensure that the rebate is used for the benefit of
plan participants.
There are also financial implications to consider under reform. ACA mandates
responsibilities for employers regarding coverage,
including analysis of costs.
Employer Mandates
Beginning in 2014, employers with 50 or more
full-time equivalent employees become
subject to penalties if they fail to comply
with ACA. Employers are required to offer
coverage or pay a penalty if they have
full-time employees who would qualify
for premium tax credits and other costsharing assistance.
Also in 2014, health insurance exchanges
will allow millions of individuals and
small employers to access and compare
insurance plans. These exchanges are also
central to determining whether individuals
are eligible for Medicaid or premium
tax credits to assist in purchasing health
insurance coverage.
No Coverage Penalty (Pay or Play)
An employer is subject to a penalty of $2,000
per full-time employee (excluding the first 30
full-time employees) if:
• It does not offer full-time employees the
opportunity to enroll in minimum essential coverage
under an eligible employer-sponsored plan, and
10
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• At least one full-time employee enrolls in a health plan
via a state or federally-established health insurance
exchange, and
• The full-time employee receives government
subsidies to pay the premiums for the health
insurance exchange coverage.
A full-time employee is defined as someone who works
an average of 30 or more hours per week. The dealership will
need to total employee hours worked in a month and divide by 120 to
determine whether someone is a full-time-equivalent employee.
Unaffordable Coverage Penalty
This penalty applies if an employer offers full-time employees the opportunity
to enroll in minimum essential coverage under an eligible employer-sponsored
plan that either is unaffordable or does not provide minimum value. A plan
is unaffordable if the full-time employee’s premium payments for self-only
insurance coverage are more than 9.5 percent of household income.
If at least one full-time dealership employee enrolls in the exchange and is
certified to receive a government subsidy, the dealership is subject to the
penalty of $3,000 for each full-time employee who enrolls in the exchange.
The government subsidies are available for individuals whose household
income is between 100 percent and 400 percent of the Federal Poverty
Level — currently $92,200 for a family of four. Full-time employees whose
household income is below 133 percent of the poverty level will be covered
by Medicaid, unless the state opts out of this provision of the ACA.
Health Insurance and Penalty Calculator
CliftonLarsonAllen has a Health Insurance and Penalty (HIP) Calculator
to provide employers with concrete information about how ACA will
impact them. The calculator helps dealerships weigh their options
about coverage, cost-sharing, and health plan design. The financial
impact of health reform depends on the specific demographic
information for each individual dealership.
www.mada.org
11
The Impact of Health Care
Reform on Dealerships... (cont...)
The chart below shows HIP calculator results for a hypothetical dealership
group. These results are based on three scenarios:
Pre-reform 2014 — The current-year total employer-sponsored-insurance
premium cost, with projected annual premium and volume increases.
Post-reform cost 2014, with employer-sponsored insurance — The 2014
total employer-sponsored-insurance premium cost, including premium
increases and health reform penalties.
Post-reform cost, without employer-sponsored insurance — The 2014
total employer penalty cost where an employer does not offer health
insurance.
Auto dealer
full-time
equivalent
employees
900
Pre-reform
2014 cost
$3,200,000
Post-reform
cost, with
employeesponsored
insurance
$4,000,000
Post-reform
cost, without
employeesponsored
insurance
$1,750,000
Not all employers will pay more for insurance under these provisions;
results vary quite dramatically between individual employers.
It is important for dealers to understand the impact of reform on their
specific dealership. Dealers should take time to consider the financial and
regulatory impacts of the ACA on their businesses and their employees.
To learn more about health care reform, access information
about the Health Insurance and Penalty (HIP) calculator, and
download the whitepaper, “Medical Loss Ratio Rebates,” visit
http://www.cliftonlarsonallen.com/healthcare/.
Doug Bertossi is a Partner with CliftonLarsonAllen LLP in Minneapolis who
specializes in benefit services. He can be reached at douglas.bertossi@
cliftonlarsonallen.com or (612) 376-4693.
Scott Gorden is the Managing Partner of CliftonLarsonAllen’s Dealership
team. He can be reached at scott.gorden@cliftonlarsonallen.com or
(612) 376-4751.
About CliftonLarsonAllen
CliftonLarsonAllen is one of the nation’s top 10 certified public accounting and consulting firms.
Structured to provide clients with highly specialized industry insight, the firm delivers
assurance, tax and advisory capabilities. CliftonLarsonAllen offers unprecedented
emphasis on serving privately held businesses and their owners, as well as nonprofits
and governmental entities. For more information about CliftonLarsonAllen, visit
www.cliftonlarsonallen.com.
12
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ASSURANCE
TAX
ADVISORY
SINGULAR
CLIENT SERVICE
CliftonLarsonAllen offers something different: a team of CPA’s and
advisors who provide accounting, tax, and consulting services
to new and used dealerships nationwide.
•
•
•
•
•
•
Financialanalysisandbenchmarking
Buy/sellconsulting
Fraudpreventioncontrolreviews
Incometaxcomplianceandconsulting
Costsegregationstudies
Outsourcedaccountingstaff
Serving you from offices across the
country and throughout Minnesota.
©2012 CliftonLarsonAllen LLP
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www.cliftonlarsonallen.com
13
14
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MADA NEWS
VISIBLE CUSTOMER
OPENS UP NEW ERA IN DEALER SERVICE
The Minnesota Auto Dealers Association is proud to announce the purchase of Visible Customer, an
international new car and truck dealer service company.
Visible Customer is a veteran company that uses the latest in DMS software to ensure accuracy in dealers’
databases and help dealers optimize their marketing efforts to put only the most relevant messages out to
their customers. The company provides a wide range of elements for dealers use including direct mail,
web based marketing and phone contacts. It can even offer the full advertising agency services by creating
broadcast and print ads and conduct the media buying. Most importantly, the state-of-the-art analytics will
enable dealers to measure the effectiveness of their ad expenditures.
“This is a dealer centric company,” stated Scott Lambert Executive Vice President of MADA and CEO/
CFO of Visible Customer. “It’s a company
constructed for dealers, and by dealers, to
give dealers the best resources possible to
communicate with their customers.”
The Minnesota Auto Dealers Association led
the investment group of dealers that purchased
Visible Customer and is now operating the
company.
Visible
Customer
“The software and process we use is already
An MADA Company
proven,” stated Kate Donovan, Visible
Customer’s CRO. “We are already showing
results for dealers in eleven states and Canada. And we are excited to roll this out for the rest of the North
America.”
Visible Customer is based in Eden Prairie Minnesota and plans to grow to seventeen employees in the next
few months.
www.mada.org
15
Dealers Are Good Neighbors
Mauer Chevrolet, Inver Grove Heights, organized
and sponsored an annual end-of-season baseball
tournament, officialy sanctioned by Little League
International and is a fund-raiser for St. Jude
Children’s research hospital. Seventy-five percent of
each team’s $500 registration fee is donated to St. Jude.
Additional funds are raised for St. Jude with the sale of
raffle tickets.
Kolar Toyota, Duluth again sponsored and planned
the Kolar Toyota ALS Walleye Tournament which
took place in June. This tournament was started in
1995 by family and friends of Kevin Kolquist, who had
been diagnosed with ALS. All proceeds from the event
go to The ALS Association, Minnesota/North
Dakota/South Dakota Chapter. The first year,
the tournament raised $43,000; this year more than
$155,000. In the last 17 years over $1.8 million has been
raised.
Albert Lee dealers Dave Christensen, Motor Inn
Company and Bob Syverson, Dave Syverson Ford
Lincoln Mercury presented $1500 to the Freeborn
County Relay for Life.
Lake Country Chevrolet Buick of Warroad
supported Warroad Youth Baseball Program by
donating $500 to go toward the purchase of equipment.
Elk River Ford Dodge Jeep partnered with Feed My
Starving Children and packaged over 108,000 meals.
The cost of set-up and supplies was also covered by the
dealership fundraising.
Automobile dealers serve as pillars
of strength in their communities
across the United States
• According to a recent survey by Ally Financial,
nearly two-thirds of U.S. dealers increased
their charitable contributions in 2012
compared to 2011.
• More than half of those who responded
said they plan to increase their charitable
contributions in 2013.
“Automobile dealers do a tremendous job supporting
their local communities,” said Tim Russi, executive vice
president, North American Auto Operations for Ally
Financial. “Ally will sponsor the TIME Dealer of the Year
program again this year to recognize dealers from every
state who donate their time and money to important
causes.”
Send
YOUR good news
to Sandy at
brom@mada.org
16
www.mada.org
MADA’s Foundation at work
It was a busy summer for requests to the Minnesota
Auto Dealers Foundation for safety equipment. The
following received emergency equipment from the
Foundation and was sponsored by the listed dealership.
Comfrey First Responder sponsored by Chuck
Spaeth Ford, New Ulm
The Hibbing Fire Department sponsored by
Northwoods Ford Lincoln, Inc., Hibbing
Hector Ambulance Service sponsored by Ralph
Larson Chevrolet, Hector
Cottonwood Ambulance Service sponsored by
Kohls Weelborg Ford, Redwood Falls
Morgan Ambulance Service sponsored by Kohls
Weelborg Ford, Redwood Falls
Adrian Ambulance Service sponsored by Kruse
Motors of Worthington, Inc.
www.mada.org
17
2011 INDUSTRY DATA
DRIVING
MINNESOTA’S ECONOMY
Annual Contributions of
Minnesota’s New Vehicle Dealers*
Sales
•Minnesota’s 366 new vehicle dealerships generated $7.9 billion in total sales in 2011. This accounts for 12% of total retail sales for the state of MN.
Employment
•Total number of new vehicle dealership employees in Minnesota........................15,660
•Average number of employees per dealership.............................................................43
•Average weekly wage of a Minnesota new car dealership employee is........$850 ($21.50/hr)
•Total annual payroll of new vehicle dealerships in Minnesota...................$700 million
•Average annual payroll per new vehicle dealership in Minnesota...................$1.92 million
Taxes
•Minnesota new vehicle dealerships generate approximately $513.5 Million in state sales
tax revenue each year.
•MADA members generate approximately 10% of Minnesota’s total sales tax revenue.
*Numbers reflect annual economic activity during 2011
MADA • 200 Lothenbach Ave, West St. Paul, MN 55118 • (800) 652-9029 • Fax (651) 291-2894 • www.mada.org
For more information please contact:
Jacob Millner or Alyssa Schlander
Jacob@mada.org alyssa@mada.org
18
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highly
that
these
events
will
derail
the
new
vehicle
market
recovery.
Indeed,
our
basic
outAtAt
this
point,
it seems
highly
unlikely
that
these
events
will
derail
the
new
vehicle
market
recovery.
Indeed,
our
basic
outOutlook
is point,
currently
projecting
anunlikely
8% improvement
for
2013,
below
the
21%
increase
expected
for
this year.
lookhas
hasremained
remainedintact
intactsince
sincethe
therecession
recessionhithitin in2008
2008and
and2009:
2009:the
themarket
marketwill
willremain
remainononitsitslong
longterm
termimprovement
improvement
look
path,
with
sales
having
a
good
chance
to
hit
record
levels
before
the
end
of
the
decade.
path,
with
sales
having
a
good
chance
to
hit
record
levels
before
the
end
of
the
decade.
Why do we think the pace of the recovery will ease next year? Here are the three primary reasons. First, economic growth is
expected to remain sluggish, as likely fiscal tightening by the Federal government will limit growth, and the European financial
crisis is likely to put a damper on the global economy. Second, the unemployment rate is expected to remain relatively high, with
slim gains in employment. And third, although households have made headway in reducing debt, there is still a lot of work to do
in curing ailing balance sheets, which are still on the mend following the financial crisis.
At this point, it seems highly unlikely that these events will derail the new vehicle market recovery. Indeed, our basic out-look has
remained intact since the recession hit in 2008 and 2009: the market will remain on its long term improvement path, with sales
having a good chance to hit record levels before the end of the decade.
Annual
Trend
Minnesota
New
Vehicle
Market
Annual
Trend
in in
Minnesota
New
Vehicle
Market
Market
Review
Market
Review
Annual Trend in Minnesota New Vehicle Market
Market Review
New light vehicle registrations
New light vehicle registrations
250,000
250,000
200,000
200,000
198,000
198,000
183,900
183,900
150,000 168,673
150,000
168,673
151,589
151,589
148,311
148,311
100,000
100,000
120,903
120,903
116,541
116,541
50,000
50,000
0 0
YTD
YTD
'11'11
thru
July
thru
July
86,735
86,735
YTD
YTD
'12'12
thru
July
thru
July
124,480
124,480
%%
ch.ch.
'11'11
to to
'12'12
43.5%
43.5%
Car
Car
Light
Truck
Light
Truck
37,359
37,359
49,376
49,376
52,812
52,812
71,668
71,668
41.4%
41.4%
45.1%
45.1%
Detroit
Three
Detroit
Three
European
European
Japanese
Japanese
Korean
Korean
45,352
45,352
5,537
5,537
28,946
28,946
6,900
6,900
66,094
66,094
9,055
9,055
38,392
38,392
10,939
10,939
45.7%
45.7%
63.5%
63.5%
32.6%
32.6%
58.5%
58.5%
TOTAL
TOTAL
2007 2008
2008 2009
2009 2010
2010 2011
2011 2012
2012 2013
2013
2007
Forecast
Forecast
Forecast
Forecast
Years
Years
www.mada.org
19
Brand Registrations Report
Minnesota New Retail Car and Light Truck Registrations
Most recent three months (May thru July)
Year To Date thru July
Registrations
Market Share (%)
Registrations
Market Share (%)
2011
2012 % change
2011
2012 Change YTD 2011 YTD 2012 % change YTD 2011 YTD 2012 Change
TOTAL
30,832
63,468
105.9
86,735 124,480
43.5
Cars
14,618
28,895
97.7
47.4
45.5
-1.9
37,359
52,812
41.4
43.1
42.4
-0.7
Light Trucks
16,214
34,573
113.2
52.6
54.5
1.9
49,376
71,668
45.1
56.9
57.6
0.7
Domestic Brands
15,567
32,954
111.7
50.5
51.9
1.4
45,352
66,094
45.7
52.3
53.1
0.8
European Brands
2,073
4,387
111.6
6.7
6.9
0.2
5,537
9,055
63.5
6.4
7.3
0.9
Japanese Brands
10,387
20,020
92.7
33.7
31.5
-2.2
28,946
38,392
32.6
33.4
30.8
-2.6
Korean Brands
2,805
6,107
117.7
9.1
9.6
0.5
6,900
10,939
58.5
8.0
8.8
0.8
Acura
199
407
104.5
0.6
0.6
0.0
592
747
26.2
0.7
0.6
-0.1
Audi
196
380
93.9
0.6
0.6
0.0
617
866
40.4
0.7
0.7
0.0
BMW
373
847
127.1
1.2
1.3
0.1
1,114
1,580
41.8
1.3
1.3
0.0
Buick
698
1,274
82.5
2.3
2.0
-0.3
2,001
2,396
19.7
2.3
1.9
-0.4
Cadillac
224
382
70.5
0.7
0.6
-0.1
745
812
9.0
0.9
0.7
-0.2
Chevrolet
5,220
10,344
98.2
16.9
16.3
-0.6
15,842
20,758
31.0
18.3
16.7
-1.6
Chrysler
624
1,846
195.8
2.0
2.9
0.9
1,841
3,320
80.3
2.1
2.7
0.6
Dodge
738
1,904
158.0
2.4
3.0
0.6
2,150
3,552
65.2
2.5
2.9
0.4
Fiat
7
124
0.0
0.2
0.2
7
196
0.0
0.2
0.2
Ford
5,481
10,945
99.7
17.8
17.2
-0.6
14,505
22,764
56.9
16.7
18.3
1.6
GMC
1,013
2,410
137.9
3.3
3.8
0.5
3,662
4,810
31.3
4.2
3.9
-0.3
Honda
3,053
4,721
54.6
9.9
7.4
-2.5
8,077
9,429
16.7
9.3
7.6
-1.7
Hyundai
1,321
2,852
115.9
4.3
4.5
0.2
3,411
5,066
48.5
3.9
4.1
0.2
Infiniti
157
351
123.6
0.5
0.6
0.1
472
617
30.7
0.5
0.5
0.0
Jaguar
15
18
20.0
0.0
0.0
0.0
29
30
3.4
0.0
0.0
0.0
Jeep
734
2,001
172.6
2.4
3.2
0.8
1,857
4,044
117.8
2.1
3.2
1.1
Kia
1,484
3,255
119.3
4.8
5.1
0.3
3,489
5,873
68.3
4.0
4.7
0.7
Land Rover
51
98
92.2
0.2
0.2
0.0
145
241
66.2
0.2
0.2
0.0
Lexus
330
551
67.0
1.1
0.9
-0.2
1,114
1,086
-2.5
1.3
0.9
-0.4
Lincoln
207
384
85.5
0.7
0.6
-0.1
588
745
26.7
0.7
0.6
-0.1
Mazda
611
1,253
105.1
2.0
2.0
0.0
1,586
2,195
38.4
1.8
1.8
0.0
Mercedes
219
458
109.1
0.7
0.7
0.0
655
1,198
82.9
0.8
1.0
0.2
MINI
155
254
63.9
0.5
0.4
-0.1
296
459
55.1
0.3
0.4
0.1
Mitsubishi
117
231
97.4
0.4
0.4
0.0
318
443
39.3
0.4
0.4
0.0
Nissan
1,514
2,947
94.6
4.9
4.6
-0.3
4,304
5,900
37.1
5.0
4.7
-0.3
Porsche
28
44
57.1
0.1
0.1
0.0
66
100
51.5
0.1
0.1
0.0
Ram
614
1,463
138.3
2.0
2.3
0.3
1,875
2,892
54.2
2.2
2.3
0.1
smart
6
4
-33.3
0.0
0.0
0.0
16
11
-31.3
0.0
0.0
0.0
Subaru
943
2,169
130.0
3.1
3.4
0.3
2,781
4,339
56.0
3.2
3.5
0.3
Suzuki
36
99
175.0
0.1
0.2
0.1
118
195
65.3
0.1
0.2
0.1
Toyota/Scion
3,427
7,291
112.8
11.1
11.5
0.4
9,584
13,441
40.2
11.0
10.8
-0.2
Volkswagen
836
1,843
120.5
2.7
2.9
0.2
2,128
3,742
75.8
2.5
3.0
0.5
Volvo
158
292
84.8
0.5
0.5
0.0
375
549
46.4
0.4
0.4
0.0
Other
43
26
-39.5
0.1
0.0
-0.1
375
84
-77.6
0.4
0.1
-0.3
Source: AutoCount data from Experian Automotive
20
www.mada.org
MARKET TRACKER: BRAND MARKET SHARE
MARKET TRACKER: BRAND MARKET SHARE
Japanese Brands Lose Share in First Half of ’12;
Japanese
Brands
Share
First Half of ’12;
Rebound
Likely
in Lose
Second
HalfinHalf
Japanese
Brands
Lose
Share in First
of ’12; Rebound Likely in Second Half
Rebound Likely in Second Half
MARKET TRACKER: BRAND MARKET SHARE
Change
in in
State
Market
vs.YTD
YTD2011
2011
Change
State
MarketShare:
Share:YTD
YTD2012
2012 thru
thru July
July vs.
Change in State Market Share: YTD 2012 thru July vs. YTD 2011
European
0.9
European
brand
share
European
has
increased
brand share
0.9
so
has points
increased
far this
year.
0.9
points
so
European
Detroit Three
Detroit Three
0.9
0.8
0.8
far this year.
Korean
0.8
Korean
0.8
Japanese
-2.6
Japanese
-2.6
-3.0
-2.5
-2.0
-1.5
-3.0
-2.5
-2.0
-1.5
-1.0
-0.5
Change
share
-1.0 in market-0.5
0.0
0.5
1.0
1.5
0.0
0.5
1.0
1.5
Change in market share
MARKET TRACKER: HYBRID AND ELECTRIC VEHICLES
MARKET
TRACKER:
HYBRID
ELECTRIC
VEHICLES
MARKET
TRACKER:
HYBRID
AND AND
ELECTRIC
VEHICLES
Hybrid & Electric Share Increases
Hybrid
& Electric
Share
Increases
Hybrid
& Electric
Share
Increases
Quarterly Alternative Powertrain Market Share (includes hybrid and electric vehicles)
QuarterlyAlternative
AlternativePowertrain
Powertrain Market Share (includes
Quarterly
(includes hybrid
hybrid and
andelectric
electric vehicles)
vehicles)
3.5
3.5
3.0
Trendline
3.0
2.5
Trendline
2.5
2.0
2.0
1.5
Alternative powertrain market share has
trended
lower
during the
past share
three years,
Alternative
powertrain
market
has
but
is
up
so
far
this
year.
trended lower during the past three years,
1.5
1.0
1.0
0.5
0.5
0.0
0.0
but is up so far this year.
Q4
'09
Q4
'09
Q1
'10
Q1
'10
Q2
'10
Q2
'10
Q3
'10
Q3
'10
Q4
'10
Q4
'10
Q1
'11
Q1
'11
Q2
'11
Q2
'11
Q3
'11
Q3
'11
Q4
'11
Q4
'11
Q1
'12
Q1
'12
Q2
'12
Q2
'12
Q3
'12
Q3
'12
Note: Third Quarter 2012 includes July figures only.
Note: Third Quarter 2012 includes July figures only.
www.mada.org
21
BRAND SCOREBOARD - PART ONE
Jeep Posts Largest Gain So Far This Year vs. 2011
BRAND SCOREBOARD - PART ONE
Toyota new retail registrations improve 78.9% from First to Second Quarter of this year
Jeep Posts Largest Gain So Far This Year vs. 2011
Toyota
new retail
improve
78.9%
fromsales
Firstperformance
to Second Quarter
of this
yearFor the top 20 selling brands,
The graph
below registrations
provides a quick
snapshot
of brand
in the state
market.
it shows the percent change in new retail light vehicle registrations during the first seven months of this year versus the
The
graph
below
provides
a quick
snapshot
brand
performance
in the
state
market.
For theBrands
top 20 are
selling
brands,
same
period
a year
earlier,
and the
changeof
from
the sales
First Quarter
of 2012
to the
Second
Quarter.
shown
from it
shows
the
percent
change
in
new
retail
light
vehicle
registrations
during
the
first
seven
months
of
this
year
versus
the
same
top to bottom based on the year-to-date percent change.
period a year earlier, and the change from the First Quarter of 2012 to the Second Quarter. Brands are shown from top to bottom
based on the year-to-date percent change. Source: AutoCount data from Experian Automotive.
Percent Change in State New Retail Light Vehicle Registrations (Top 20 Selling Brands)
Percent
Change
State
VehicleQuarter
Registrations
(Top
20 Quarter
Selling Brands)
YTD 2012
thruin
July
vs.New
YTDRetail
2011 Light
and Second
2012 vs.
First
2012
YTD 2012 thru July vs. YTD 2011 and Second Quarter 2012 vs. First Quarter 2012
Jeep
117.8%
42.6%
Mercedes
82.9%
12.0%
80.3%
74.1%
Chrysler
Volkswagen
75.8%
36.6%
68.3%
Kia
65.2%
63.8%
Dodge
Ford
36.5%
56.0%
Ram
48.5%
Audi
72.0%
40.4%
11.0%
40.2%
Toyota/Scion
Mazda
38.4%
Nissan
37.1%
39.6%
GMC
31.3%
Chevrolet
31.0%
78.9%
88.7%
YTD '12 vs. YTD '11
58.1%
16.7%
Honda
-2.5%
2Q '12 vs. 1Q '12
53.1%
19.7%
Buick
22
69.7%
41.8%
BMW
76.8%
54.2%
40.7%
Hyundai
-20.0%
Jeep had the largest gain during the first
seven months of 2012. Improving supplies
helped Mazda post an 88.7% gain from
the First to the Second Quarter of this year.
56.9%
Subaru
Lexus
87.4%
69.1%
39.2%
39.6%
0.0%
20.0%
40.0%
60.0%
80.0%
100.0%
120.0%
140.0%
www.mada.org
BRAND SCOREBOARD - PART TWO
BRAND SCOREBOARD - PART TWO
Ford is
is State
State Car
Car Market
Market Share
Share Leader
Leader
Ford
BRAND SCOREBOARD - PART TWO
Ford also leads for light trucks; Jeep market share moves higher
Fordis
also
leads
for Market
light trucks;
JeepLeader
market share moves higher
Ford
State
Car
Share
Ford
lightshow
trucks;
Jeepshare
market
share
Thealso
two leads
graphsfor
below
market
for the
topmoves
ten car higher
and light truck brands for the first seven months of 2011 and
The
two
graphs
below
show
foreach
the top
tenbased
car and
brands
for the
first seven months of 2011 and
2012.
Brands
are
shown
frommarket
left to share
right on
graph
onlight
first truck
half 2012
market
share.
2012.
shown
left to
rightfor
onthe
each
on first
halfbrands
2012 market
share.
The
twoBrands
graphs are
below
showfrom
market
share
topgraph
ten carbased
and light
truck
for the first
seven months of 2011 and 2012.
Brands
areAutoCount
shown from
leftfrom
to right
on each
graph based on first half 2012 market share.
Source:
data
Experian
Automotive.
Source: AutoCount data from Experian Automotive.
Source: AutoCount data from Experian Automotive.
Brand Market Share in State Car Market - YTD 2011 and YTD 2012, thru July
Brand
Market
Share
inin
State
andYTD
YTD2012,
2012,thru
thru
July
Brand
Market
Share
StateCar
CarMarket
Market- -YTD
YTD2011
2011 and
July
Top Ten Brands only
Top
Top Ten
Ten Brands only
16.0%
16.0%
Ford is the best selling brand in the Minnesota
Ford
is the best
sellingKia,
brand
thehave
Minnesota
car market.
Chrysler,
andinVW
posted
car
Chrysler,
big market.
gains this
year. Kia, and VW have posted
big gains this year.
14.0%
14.0%
12.0%
12.0%
YTD '11
YTD '11
YTD '12
YTD '12
10.0%
10.0%
8.0%
8.0%
6.0%
6.0%
4.0%
4.0%
2.0%
2.0%
0.0%
0.0%
YTD '11
YTD '11
YTD '12
YTD '12
Ford
Ford
13.6%
13.6%
13.3%
13.3%
Toyota/Scion
Toyota/Scion
13.1%
13.1%
13.2%
13.2%
Chevrolet
Chevrolet
14.1%
14.1%
13.0%
13.0%
Honda
Honda
11.4%
11.4%
8.3%
8.3%
Hyundai
Hyundai
6.9%
6.9%
7.4%
7.4%
Kia
Kia
4.9%
4.9%
6.5%
6.5%
Subaru
Subaru
5.2%
5.2%
6.3%
6.3%
Volkswagen
Volkswagen
4.8%
4.8%
6.2%
6.2%
Nissan
Nissan
6.0%
6.0%
5.6%
5.6%
Chrysler
Chrysler
1.1%
1.1%
2.9%
2.9%
Brand Market Share in State Light Truck Market - YTD 2011 and YTD 2012, thru July
Brand Market Share in State Light Truck Market - YTD 2011 and YTD 2012, thru July
Brand Market Share in State Light
Marketonly
- YTD 2011 and YTD 2012, thru July
Top Truck
Ten Brands
Top Ten Brands only
Top Ten Brands only
25.0%
25.0%
Ford is the Minnesota light truck leader, while
Ford
the Minnesota
truckshares
leader,have
while
Ford,isJeep,
and Dodgelight
market
Ford,
Jeep,
andinDodge
moved
higher
2012.market shares have
moved higher in 2012.
20.0%
20.0%
YTD '11
YTD '11
YTD '12
YTD '12
15.0%
15.0%
10.0%
10.0%
5.0%
5.0%
0.0%
0.0%
YTD '11
YTD '11
YTD '12
YTD '12
www.mada.org
Ford
Ford
19.2%
19.2%
22.0%
22.0%
Chevrolet
Chevrolet
21.5%
21.5%
19.4%
19.4%
Toyota/Scion
Toyota/Scion
9.6%
9.6%
9.1%
9.1%
Honda
Honda
7.8%
7.8%
7.0%
7.0%
GMC
GMC
7.4%
7.4%
6.7%
6.7%
Jeep
Jeep
3.8%
3.8%
5.7%
5.7%
Nissan
Nissan
4.2%
4.2%
4.1%
4.1%
Ram
Ram
3.8%
3.8%
4.0%
4.0%
Kia
Kia
3.4%
3.4%
3.4%
3.4%
Dodge
Dodge
2.9%
2.9%
3.4%
3.4%
23
BRAND SCOREBOARD - PART THREE
Chevrolet and Ford Are Relatively Strong Performers in State
BRAND SCOREBOARD - PART THREE
Chevrolet and Ford Are Relatively Strong Performers in State
GMC,
Chrysler,
Subaru
also high
rank high
GMC,
Chrysler,
and and
Subaru
also rank
The graph below provides an indicator of brands that are popular in Minnesota (relative to the National standard), and those
that
aregraph
not. Here’s
it works:
For the top
30 selling
in the state,
each brand’s
sharetoofthe
theNational
U.S. market
is multiplied
The
below how
provides
an indicator
of brands
thatbrands
are popular
in Minnesota
(relative
standard),
and
are not. Here’s
30 selling
brands
in the
state,
each
of state
the U.S.
market
is
bythose
retailthat
registrations
in thehow
stateit works:
during For
the the
firsttop
seven
months
of 2012.
This
yields
a brand’s
“target”share
for the
market.
Target
multiplied by
registrations
the state
during the
seven
of 2012.
a “target”Brands
for the at
state
registrations
areretail
subtracted
from in
actual
registrations
to first
derive
the months
measurement
of This
salesyields
performance.
the martop of
Target
are subtracted
from actual
registrations
to derive strong
the measurement
saleswith
performance.
Brands
theket.
graph
(i.e.,registrations
Chevrolet, Ford,
GMC, Chrysler,
and Subaru)
are relatively
sellers in theofstate,
actual registrations
at the top of the graph (i.e., Chevrolet, Ford, GMC, Chrysler, and Subaru) are relatively strong sellers in the state, with
exceeding
the calculated
target bythe
a large
margin.
For by
instance,
registrations
exceeded the
target by 6,902
units.the
actual registrations
exceeding
calculated
target
a largeChevrolet
margin. For
instance, Chevrolet
registrations
exceeded
Source:
AutoCount
data units.
from Experian Automotive.
target
by 6,902
Source for registration data: AutoCount data from Experian Automotive.
MinnesotaRetail
RetailMarket
MarketPerformance
Performancebased
basedon
onregistrations
registrationsfor
for YTD
YTD 2012
Minnesota
2012thru
thruJuly
July
Actual registrations minus target (state industry registrations times U.S. market share)
Actual registrations minus target (state industry registrations times U.S. market share)
Chevrolet
6902
Ford
6223
GMC
1219
Chrysler
1119
Subaru
1010
Buick
790
Ram
465
Kia
352
Dodge
251
Volkswagen
26
Volvo
-39
Lincoln
-44
Suzuki
-55
Mazda
-91
Mitsubishi
-111
Land Rover
-166
Fiat
-171
MINI
-208
Jeep
-317
Audi
-441
Infiniti
-453
Cadillac
-479
Acura
-692
BMW
-831
Lexus
-1126
Mercedes
-1429
Hyundai
-1596
Nissan
Toyota/Scion
Honda
-6,000
-2755
-3238
-3644
-4,000
-2,000
0
2,000
4,000
6,000
8,000
Actual registrations minus target (Minnesota industry registrations times U.S. market share)
24
www.mada.org
MODEL SCOREBOARD
MODEL SCOREBOARD
Ford
Fusion
is onisTop
Standard
Mid Size Car
Ford
Fusion
onofTop
of Standard
MidSegment
Size Car Segment
Grand Cherokee is best-selling Mid Size SUV
Grand Cherokee is best-selling Mid Size SUV
The table below shows the top five selling models during the first seven months of this year in 16 primary market seg-ments.
In addition to unit registrations, it also shows each model’s market share in its respective segment. Ford Fusion retained the
The table below shows the top five selling models during the first seven months of this year in 16 primary market segtop
spot as the best-selling Standard Mid Size Car, with a 15.5% share. Chevrolet Cruze was first among Sub Compact Cars,
ments. In addition to unit registrations, it also shows each model’s market share in its respective segment. Ford Fusion
followed
Ford
and
Civic. Standard
BMW 3-Series
remained
at the
top, asshare.
the perennial
seller
among
Near Luxury
retainedbythe
topFocus
spot as
theHonda
best-selling
Mid Size
Car, with
a 15.5%
Chevroletbest
Cruze
was
first among
Sub
Cars.
Chrysler
Town
and
Country
and
Chevrolet
Equinox
were
the
best
selling
Mini
Van
and
Com-pact
SUV,
respectively.
Ford
Compact Cars, followed by Ford Focus and Honda Civic. BMW 3-Series remained at the top, as the perennial best seller
among was
Nearfirst
Luxury
Cars.
Chrysler
Town(including
and Country
and Chevrolet
the best selling
MiniSUV.
Van and Compact
Explorer
among
Full
Size SUVs
Crossovers).
LexusEquinox
RX waswere
the best-selling
Luxury
SUV,AutoCount
respectively.
Explorer
was
Source:
data fromFord
Experian
Automotive.
Luxury SUV.
first among Full Size SUVs (including Crossovers). Lexus RX was the best-selling
Top Selling Models in Each Segment - Minnesota
New Retail Registrations, YTD 2012 thru July and Market Share of Segment
Entry
Model
Regs. Share
Kia Soul
1417
31.0
Chevrolet Sonic
634
13.8
Ford Fiesta
584
12.8
Honda Fit
391
8.5
Kia Rio
367
8.0
Large Mid Size
Model
Regs. Share
Chevrolet Impala
918
25.2
Buick LaCrosse
751
20.6
Ford Taurus
649
17.8
Chrysler 300
352
9.7
Nissan Maxima
323
8.9
Compact Pickup
Model
Regs. Share
Ford Ranger
806
39.1
Toyota Tacoma
538
26.1
Chevrolet Colorado
256
12.4
Nissan Frontier
237
11.5
Honda Ridgeline
138
6.7
Compact SUV
Model
Regs. Share
Chevrolet Equinox
4067
21.1
Ford Escape
3356
17.4
Honda CRV
2794
14.5
Toyota RAV4
2090
10.9
Nissan Rogue
1256
6.5
www.mada.org
Cars
Sub Compact
Sporty Compact
Model
Regs. Share Model
Regs.
Chevrolet Cruze
2545
13.9 Chevrolet Camaro
419
Ford Focus
2283
12.5 Ford Mustang
344
Honda Civic
2028
11.1 Hyundai Veloster
255
Toyota Prius
1994
10.9 Dodge Challenger
226
Toyota Corolla/Matrix
1608
8.8 Scion tC
81
Near Luxury
Luxury
Model
Regs. Share Model
Regs.
BMW 3-Series
556
19.0 BMW 5-Series
322
Infiniti G
345
11.8 Mercedes E-Class
219
Mercedes C-Class
314
10.7 Audi A6
105
Audi A4
231
7.9 Audi A5
82
Lincoln MKZ
231
7.9 Lexus GS
80
Light Trucks
Full Size Pick Up
Mini Van
Model
Regs. Share Model
Regs.
Ford F-Series
7541
37.6 Chrysler T & C
1793
Chevrolet Silverado
6800
33.9 Dodge Caravan
1112
Dodge Ram
2829
14.1 Toyota Sienna
1076
GMC Sierra
2049
10.2 Honda Odyssey
1054
Toyota Tundra
413
2.1 Kia Sedona
185
Mid Size SUV/Crossover SUV
Full Size SUV
Model
Regs. Share Model
Regs.
Jeep Grand Cherokee
1796
14.2 Ford Explorer
1480
Ford Edge
1737
13.7 Chevrolet Traverse
1101
Kia Sorento
1688
13.3 GMC Acadia
1027
Toyota Highlander
1559
12.3 Buick Enclave
914
Honda Pilot
1022
8.1 Chevrolet Suburban
628
Share
31.1
25.5
18.9
16.8
6.0
Share
23.5
16.0
7.7
6.0
5.8
Share
32.8
20.3
19.7
19.3
3.4
Share
20.6
15.3
14.3
12.7
8.8
Standard Mid Size
Model
Regs. Share
Ford Fusion
3151 15.5
Toyota Camry
2705 13.3
Subaru Legacy
2493 12.3
Chevrolet Malibu
2064 10.2
Honda Accord
1909
9.4
Sports Car
Model
Regs. Share
Chevrolet Corvette
111 42.2
Porsche 911
32 12.2
Mazda MX5
30 11.4
Audi TT
25
9.5
Nissan 370Z
21
8.0
Full Size Van
Model
Regs. Share
Ford Transit Connect
216 34.7
Ford E-Series
143 23.0
Chevrolet Express
143 23.0
Nissan NV
57
9.1
Dodge Sprinter
38 610%
Mid Size & Full Size Luxury SUV
Model
Regs. Share
Lexus RX
553 13.2
Cadillac SRX
411
9.8
Acura MDX
339
8.1
Lincoln MKX
317
7.5
BMW X3
280
6.7
25
MINNESOTA MARKET VERSUS U.S.
Increase in State Market Easily Surpasses U.S.
MINNESOTA MARKET VERSUS U.S.
Light Truck
share in Easily
state nine
points higher
Increase
in market
State Market
Surpasses
U.S.than in Nation
Light Truck market share in state nine points higher than in Nation
The
resultsininboth
boththe
theMinnesota
Minnesota
U.S.
markets.
vehicle
registrations
Theaccompanying
accompanying table
table provides
provides aa comparison
comparison ofofresults
andand
U.S.
markets.
NewNew
vehicle
registrations
in thein
thestate
stateimproved
improved
a reported
43.5%
during
the seven
first seven
months
of versus
2012 versus
year earlier,
while
U.S.increased
market increased
a reported
43.5%
during
the first
months
of 2012
a yearaearlier,
while the
U.S. the
market
11.2%.
(Note:(Note:
delayeddelayed
title processing
in the summer
2011 contributed
to the big percentage
gain in Minnesota.)
market share
Min11.2%.
title processing
in the of
summer
of 2011 contributed
to the big percentage
gain inCar
Minnesota.)
Carinmarket
nesota
was
nine
share
points
lower
than
in
the
Nation.
Detroit
Three
market
share
in
Minnesota
was
53.1%,
up
from
2011,
and
share in Minnesota was nine share points lower than in the Nation. Detroit Three market share in Minnesota was 53.1%, upwell
from
above the 40.2% share in the Nation.
2011, and well above the 40.2% share in the Nation.
Source: AutoCount data from Experian Automotive.
Source: AutoCount data from Experian Automotive.
Market Growth
% change in registrations
YTD 2012 thru July vs. YTD 2011
Minnesota Market
U.S. Market
43.5%
11.2%
42.4%
51.4%
53.1%
40.2%
Car Market Share
Car share of industry retail light vehicle
registrations - YTD 2012 thru July
Detroit Three Brand Market Share
Domestic brand share of industry retail light
vehicle registrations - YTD 2012 thru July
Top Selling Retail Brands
Top selling light vehicle brands and
market share - YTD 2012 thru July
First
Second
Third
Fourth
Fifth
Sixth
Seventh
Eighth
Ninth
MADA BC Ad 1-3h 5_11.pdf
1
5/27/11
11:04
Tenth
AM
Ford
Chevrolet
Toyota/Scion
Honda
Kia
Nissan
Hyundai
GMC
Subaru
Jeep
18.3%
16.7%
10.8%
7.6%
4.7%
4.7%
4.1%
3.9%
3.5%
3.2%
Toyota/Scion
Ford
Chevrolet
Honda
Nissan
Hyundai
Kia
Jeep
Volkswagen
GMC
13.4%
13.3%
11.1%
10.5%
7.0%
5.4%
4.4%
3.5%
3.0%
2.9%
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www.mada.org
RECENT
RESULTS
IN MINNESOTA
USED
VEHICLE
MARKET
RECENT
RESULTS
IN MINNESOTA
USED
VEHICLE
MARKET
Minnesota
Used
Vehicle
Market
Falls
13.6%
SoSo
FarFar
This
Year
Minnesota
Used
Vehicle
Market
Falls
13.6%
This
Year
RECENT RESULTS IN MINNESOTA USED VEHICLE MARKET
Minnesota
Used
Vehicle
Falls
13.6%
Tight
supplies
continue
to put
a damper
on on
sales
Tight
supplies
continue
toMarket
put
a damper
sales So Far This Year
Tight supplies continue to put a damper on sales
Below
is a is
lista of
trends
in the
usedused
vehicle
Below
listkey
of key
trends
in state
the state
vehicle
Below
is a list of key trends in the state used vehicle
market:
market:
market:
‣ Retail
‣ Retail
usedused
registrations
declined
13.6%
during
registrations
declined
13.6%
during
•the
Retail
used
registrations
declined
13.6%
first first
seven
months
of this
yearyear
versus
2011,
the
seven
months
of this
versus
2011,
during
the
first
months
ofincrease
thisfor
year
much
weaker
thanseven
the the
43.5%
increase
new
much
weaker
than
43.5%
for new
vehicles.
versus
2011, much weaker than the 43.5%
vehicles.
increase for new vehicles.
‣ As
‣ shown
on the
below,
the Minnesota
newnew
As shown
on graph
the graph
below,
the Minnesota
•vehicle
As vehicle
shown
onhasthe
graph
below,
the
market
posted
larger
percentage
market
has
posted
larger
percentage
Minnesota
new
vehicle
market
posted
gains
during
the the
past
couple
of years.
There
are are
gains
during
past
couple
of has
years.
There
two
primary
reasons
for
this:
First,
the new
vehicle
two
primary
reasons
for this:
First,
the
larger
percentage
gains
during
the new
pastvehicle
market
fell
precipitously
in 2008
and and
2009,
and and
market
precipitously
in 2008
2009,
couple
of fell
years.
There
are
two
primary
consequently
the the
bounceback
has has
beenbeen
sharper.
consequently
bounceback
sharper.
reasons
for tighter
this: supplies
First, the
newmodel
vehicle
And
second,
of late
vehi-vehiAnd
second,
tighter supplies
of late model
market
fell
precipitously
in
2008
and
clescles
havehave
restricted
usedused
vehicle
sales.
restricted
vehicle
sales.2009,
and consequently the bounceback has been
‣ Soft
‣ Soft
newnew
vehicle
sales
in 2009
were
responsible
sharper.
And
second,
tighter
supplies
of
vehicle
sales
in 2009
were
responsible
for
big
share
decline
for three
year
old old
formodel
the market
big vehicles
market
share
decline
for three
year
latethe
have
restricted
used
usedused
vehicle
registrations
so far
this
year.year.
vehicle
registrations
so
far
this
vehicle sales.
‣ •Used
‣ Used
light
truck
registrations
8%,
while
carscars
Soft
new
vehicle
sales fell
in fell
2009
were
light
truck
registrations
8%,
while
were
off 18.2%.
were
off 18.2%.
responsible
for the big market share decline
for three year old used vehicle registrations
‣ Korean
‣ Korean
brand
registrations
declined
a relatively
brand
registrations
declined
a relatively
so
far
this
year.
slimslim
5.3%.
5.3%.
• Used light truck registrations fell 8%, while
‣ Chevrolet
‣ Chevrolet
waswas
the best-selling
model
in in
the best-selling
model
cars
wereSilverado
offSilverado
18.2%.
the state
for three
and and
four four
yearyear
old vehicles.
the state
for three
old vehicles.
• Korean brand registrations declined a
relatively slim 5.3%.
• Chevrolet Silverado was the best-selling
model in the state for three and four year
old vehicles.
MINNESOTA
RETAIL
USED
LIGHT
VEHICLE
REGISTRATIONS
MINNESOTA
RETAIL
USED
LIGHT
VEHICLE
REGISTRATIONS
YTDYTD
THRU
JULY
THRU
JULY
Registrations
Share
Registrations % Change
% ChangeMarket
Market
Share
20112011 20122012'11 TO
'11 '12
TO '12 20112011 20122012
TOTAL
156,936
TOTAL
156,936135,670
135,670 -13.6%
-13.6%
CarsCars
84,861
84,861 69,388
69,388 -18.2%
-18.2% 54.1%
54.1% 51.1%
51.1%
LightLight
Trucks
72,075
66,282
-8.0%
45.9%
72,075
66,282
-8.0%
45.9% 48.9%
48.9%
Trucks
Big Three
Big Three
Japanese
Japanese
European
European
Korean
Korean
114,364
114,364
30,898
30,898
8,417
8,417
3,257
3,257
97,939
97,939 -14.4%
-14.4% 72.9%
72.9% 72.2%
72.2%
27,148
27,148 -12.1%
-12.1% 19.7%
19.7% 20.0%
20.0%
7,498
7,498 -10.9%
-10.9% 5.4%
5.4% 5.5%
5.5%
3,085
3,085 -5.3%
-5.3% 2.1%
2.1% 2.3%
2.3%
% Change
in Retail
NewNew
and and
UsedUsed
Vehicle
Markets
% Change
in Retail
Vehicle
Markets
% Change in Retail New and Used Vehicle Markets
50.0%
50.0%
40.0%
40.0%
30.0%
30.0%
20.0%
20.0%
10.0%
10.0%
0.0%0.0%
-10.0%
-10.0%
-20.0%
-20.0%
-30.0%
-30.0%
43.5%
43.5%
Used Used
25.4%
25.4%
New New
-1.0%-1.0%
-13.6%
-13.6%
Jan thru
Jan July
thru '12
Julyvs.
'12 vs.
Jan thru
Jan July
thru '11
July '11
20112011
vs. vs.
20102010
MINNESOTA
RETAIL
USED
VEHICLE
REGISTRATIONS-THREE
MONTH
MOVING
AVERAGE
(AUGUST
THRU
JULY
’12)’12)
MINNESOTA
RETAIL
USED
VEHICLE
REGISTRATIONS-THREE
MONTH
MOVING
AVERAGE
(AUGUST
’10’10
THRU
’12)
MINNESOTA
RETAIL
USED
VEHICLE
REGISTRATIONS-THREE
MONTH
MOVING
AVERAGE
(AUGUST
’10JULY
THRU
JULY
35000
35000
30000
30000
Trendline
Trendline
25000
25000
20000
20000
15000
15000
10000
10000
50005000
0
0
www.mada.org
27
28
www.mada.org
USED VEHICLE SALES BY AGE
3 Year Old Vehicle Sales Decline Sharply
Two year old market share moves higher
USED VEHICLE SALES BY AGE
3 As
Year
Old Vehicle
Sales
Decline
Sharply
highlighted
on the graph
below,
the sweet
spot in the Minnesota used vehicle market is shifting, due to changes in
wholesale
of pre-owned
vehicles. Depressed new vehicle sales in 2009 have made three year old used vehiTwo
year oldavailability
market share
moves higher
cles a scarce commodity, with market share declining 8.7 points. Two year old market share increased 7.6 points during
Asthe
highlighted
the graph
below,
sweetaspot
the Minnesota used vehicle market is shifting, due to changes in wholesale
first sevenonmonths
of this
yearthe
versus
yearinearlier.
availability of pre-owned vehicles. Depressed new vehicle sales in 2009 have made three year old used vehicles a scarce
commodity, with market share declining 8.7 points. Two year old market share increased 7.6 points during the first seven months
Change in Market Share by Vehicle Age (vehicles six years old or newer)
of this year versus a year earlier.
YTD 2012 thru July vs. YTD 2011
Change in Market Share by Vehicle Age (vehicles six years old or newer)
YTD 2012 thru July vs. YTD 2011
15.0
Change in market share
10.0
7.6
5.0
1.7
0.0
-0.1
-0.5
-5.0
-10.0
-15.0
-8.7
6 years old
5 years old
4 years old
3 years old
2 years old or
newer
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Minnesota • Wisconsin
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In Minnesota, Star Tribune rules the road.
• Mobile & apps
Over 3.2 million Minnesotans visit us online every month. And our
• Geotargeting
newspaper circulation is growing, reaching over 1.3 million people every
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Source: Omniture May 2012.
BRAND MARKET SHARE BY VEHICLE AGE
Chevrolet is the Top Selling Brand in State Used Vehicle Market
Honda share is higher for three and four year old vehicles
BRAND MARKET SHARE BY VEHICLE AGE
Chevrolet is the Top Selling Brand in State Used Vehicle Market
The two
graphs
below for
show
brand
market
shareold
leaders
for vehicles
twovehicles
years old or newer, and for 3 and 4 year old veHonda
share
is higher
three
and
four year
vehicles
or newer
hicles. Chevrolet, Ford, and Toyota/Scion were ranked first, second, and third in both age categories.
The two graphs below show brand market share leaders for vehicles two-years-old or newer, and for 3 and 4-year-old vehicles.
Chevrolet, Ford, and Toyota/Scion were ranked first, second, and third in both age categories.
Brand Market Share - Vehicle 2 years old or newer
Brand Market Share - Vehicle 2-years-old or newer
YTD 2012 thru July
YTD 2012 thru July
Brand Market Share - 3 and 4 Year Old Vehicles
Brand Market Share - 3 and 4-Year-Old Vehicles
YTD 2012 thru July
YTD 2012 thru July
Chevrolet
Chevrolet
Ford
Ford
Toyota/Scion
Toyota/Scion
Dodge
Honda
Honda
Dodge
Chrysler
Nissan
Hyundai
GMC
Nissan
Pontiac
GMC
Volkswagen
Kia
Chrysler
Buick
Saturn
Jeep
Mazda
Volkswagen
Buick
Mazda
BMW
Subaru
Subaru
0.0%
www.mada.org
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
0.0%
5.0%
10.0%
15.0%
20.0%
31
TOP SELLING MODELS
Impala & Malibu Rank First and Second in 2 Year Old or Newer Market
TOP
SELLING MODELS
Silverado
was leader among two year old vehicles
Impala & Malibu Rank First and Second in 2-Year-Old or Newer Market
The graphs
below
show
top selling
models
two age categories: vehicles two years old or newer, and three and four year
Silverado
was
leader
among
two year
oldinvehicles
old vehicles. Source: AutoCount data from Experian Automotive.
The graphs below show top selling models in two age categories: vehicles two-years-old or newer, and three and four-year-old
vehicles. Top
Source:
data from(Two
Experian
Automotive.
25 AutoCount
Selling Models
years
old or newer)
Top 25 Selling Models (3 and 4 Year Old Vehicles)
Used
registrations,
YTD 2012 thru
July
Top
25 retail
Selling
Models (Two-years-old
or newer)
Used retail registrations, YTD 2012 thru July
Used
retail registrations,
2012 thru
July
Top
25 Selling
Models (3 andYTD
4-Year-Old
Vehicles)
Used retail registrations, YTD 2012 thru July
2834
Chevrolet Impala
1673
Chevrolet Impala
1354
Chevrolet Malibu
1717
Chevrolet Silverado
Ford Fusion
1136
Ford F-Series
Toyota Camry
1097
Toyota Camry
1079
985
948
Chrysler T & C
1035
Honda Accord
Chevrolet Traverse
1018
Ford Escape
798
Honda Civic
770
959
Ford F-Series
Chevrolet Silverado
864
Chevrolet Malibu
706
Dodge Caravan
829
Nissan Altima
699
Toyota Corolla
759
Ford Fusion
695
Ford Focus
749
Chrysler T & C
673
Ford Escape
748
Pontiac G6
694
Chevrolet Equinox
637
Ford Edge
597
Chevrolet Cruze
624
Toyota Corolla
587
Chevrolet HHR
595
Dodge Caravan
574
Ford Edge
533
GMC Sierra
545
Hyundai Elantra
483
Honda Crv
541
Hyundai Sonata
481
Volkswagen Jetta
527
Nissan Altima
453
Ford Focus
526
Jeep Grand Cherokee
425
Dodge Ram
437
Chevrolet Cobalt
404
GMC Acadia
436
Chevrolet Tahoe
394
Saturn VUE
428
Buick Enclave
384
Chevrolet Cobalt
413
Kia Sorento
383
Honda Odyssey
406
Dodge Avenger
375
Toyota Rav4
382
0
32
1000
2000
3000
0
500
1000
1500
2000
www.mada.org
DEALERSHIP SHOWCASE
PAPIK MOTORS
Papik Motors in Luverne, MN broke ground on their brand
new General Motors showroom on October 31, 2011. The
new showroom was built from floor to ceiling following
the new Chevrolet image standards and is located next
door to their existing showroom, which now houses their
Chrysler, Dodge, Jeep, and Ram brands. The dry and
warm winter was a good one for construction and things
moved along quickly. Papik Motors kept their customers
up-to-date during the construction phase by regularly
posting photos on their facebook page. Visit this photo
album at www.facebook.com/papikmotors.
On May 18 and 19, 2012, Papik Motors celebrated the
Grand Opening of their new showroom in conjunction
with their annual Spring Rally & Car Show. It was a
great celebration with lots of classic and collectible cars,
free burgers, inflatables, and some beautiful weather to
go along with it all. The community was happy to share
in the excitement of opening the new showroom!
dealership
that
makes customer
service its number
one goal.
With an emphasis
on serving the
customer first, Papik Motors “makes it easy” by offering
a professionally trained and experienced sales staff along
with service that is at the top for customer satisfaction.
Along with the convenient, I-90 location and the extensive
product line all on one campus, Papik Motors offers
something different for shoppers.
While the celebration and excitement of the new facility
has now passed, Papik Motors is enjoying the changing
of the seasons with their regular business of providing a
great experience for the customer.
Papik Motors is located on Interstate 90 in the
southwest corner of Minnesota and serves the
tri-state area of Minnesota, South Dakota and
Iowa. It offers eight new vehicle lines: Chevrolet,
Buick, GMC, Cadillac, Chrysler, Dodge, Jeep
and Ram as well as General Motors and Chrysler
Certified pre-owned vehicles, and an assortment
of pre-owned inventory. It is a family-owned
www.mada.org
33
Industry Spotlight
PAUL WALSER .
Much has been written about Paul Walser already. His picture graced
the September cover of Dealer Magazine and his life from the storied
dealership family has been well chronicled. He and his brother, Andrew,
entered the 21st Century pushing constant path-breaking changes on an
industry that had done business the same way for a generation. The wellknown maverick Twin Cities auto dealer is charming, articulate and funny
if not often a confounding competitor to other dealers.
While he relishes the role of change agent, his feet are
permanently glued to the ground on the thing that
matters most to him: his family. As 2012 President of
MADA he was forced to sit down recently with MADA’s
Executive Vice President for a little reflection on his life.
Family is important to you correct?
Well, I got a lot of them.
Break your kids down for me?
Tucker is 20 and at Denver University studying
Business. He’s currently studying abroad in
New Zealand
Campbell is 19 and went straight to the car
business. He’s the top salesperson in the
Roseville store and has a real passion for the
business.
Charlie is a Junior at St. Thomas Academy.
He plays varsity soccer and has a million
friends. Very social kid.
Sawyer is 14 and goes to Providence Academy
in Plymouth. He’s the only kid his age on
the Junior Varsity soccer team. He’s a real
outdoorsman, loves to hunt and fish.
Our only daughter, Ruby, is 12 and is a middle
schooler at Providence also. She is also a
soccer player and is an avid English Jumper.
Horses are her life, which she gets from her
mother.
Is that how you grew up?
No, I was a challenge to my
parents, and I am so lucky I
haven’t had the misery I put my
parents through. Karma may
catch up to me some day, but my
kids are all in a better place than I was when I
was at this time.
How is your father?
He’s in a very good place in his life. He’s in
Minnesota in the summer and Florida in the
Winter. He remarried a wonderful woman.
Do you see him much?
We get together and play bridge once a week
while he’s in Minnesota.
How did you meet Becky?
We were set up by a cousin. Becky was
working at WCCO-TV with the I-Team at
the time. I asked her to go to one of the 1987
World Series games. Before we met, I told her
I looked like Gandhi.
What do you and Becky try to impart on Gandhi?
I figured if her sights were set low enough I
them?
My wife is the most giving person I’ve ever
known. She practices a life of putting herself
second. She’s very giving and works to make
everybody else happy first. That isn’t lost on
the kids. They’ve learned so much from her.
And what do you try to teach them?
I try to leave them with a sense of balance.
Their spiritual, social, academic and family
lives all have to work in harmony.
34
WALSER
AUTO GROUP
Owner
might get a shot at a second date.
Was it love at first sight?
It was for me. The funny thing was that she
admitted to me years later that she called her
mom and said she felt kinda bad about going
out with me because she really just wanted to
get to a World Series game. Her mom told her
not to worry as only moms can, because ‘it’s
not like you’re going to marry him.’
Tell me about the changes you have put
your stores through.
We are investing in process. We want
everything to be efficient and transparent in a
customer centered process.
How hard has it been?
Very. We’ve gone through three major changes
here. We took on the one price system. We
went to a centralized system for back office,
service and parts, and most recently changed
our compensation and recruiting systems.
Each change followed a similar pattern of pain
and self questioning before we got to a better
day.
What’s the big lesson you’ve learned?
You’ve got to have the confidence to stay true
to your vision; you’ll only get in trouble when
you waver from your goal.
How have you enjoyed your year as
President of MADA
It’s been grueling, easily the hardest thing I’ve
ever done in my life. In fact, it’s aged me.
I know, I feel years older as well.
www.mada.org
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