Future

Inside this issue:
Dealership Showcase
Luther Burnsville Hyundai
Industry Spotlight
Stewart Mills
the
Future
IS
!
W
NO
Winter 2014
www.mada.org
Volume 10 • Issue 2
Wings Financial Credit Union is federally insured by NCUA.
IN THIS ISSUE
the
Future
IS
!
NOW
10
Cover:
The Future
is NOW
37
Dealership
Showcase:
Luther
Burnsville
Hyundai
38
Industry
Spotlight:
Stewart Mills
Table of Contents
2014 Executive Committee
President
Steve Brimhall, Minnesota Motor Company
President Elect
Morrie Wagener, Morries Automotive
Treasurer
Greg House, House Chevrolet
Secretary
Mike Saxon, Inver Grove Ford Lincoln
Immediate Past President
Paul Walser, Walser Automotive Group
Executive Vice President
Scott Lambert
EDITORIAL STAFF
Scott Lambert, Publisher
Ginger Lemke, Editor
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 Minutes
Anniversaries..............................................4
Celebrity Status..........................................4
Find A Dealer..............................................4
Member Updates........................................4
Annual Meeting Photos..............................6
GMADA Minutes
Scholarships Awarded................................5
Legislative News
2014 Session Preview................................8
On the Cover
The Future is NOW...................................12
Dealers Are Good Neighbors
Good News...............................................18
Collision & Service Council News
Trash to Treasure.....................................20
Council Election Results...........................21
Minnesota Auto Outlook
Comprehensive New & Used Vehicle
Information on Minnesota’s Automotive
Market.......................................................23
Dealership Showcase
Luther Burnsville Hyundai.........................37
Industry Spotlight
Stewart Mills.............................................38
Advertising Directory
Blue Cross Blue Shield MN............................. 29
CVR........................................................... 11
CliftonLarsonAllen..................................... 22
MADA Business Cards.............................. 33
MADA Direct Mail...................................... 10
MADA Endorsed Services and Vendors.... 10
On the Cover:
At last, flying cars, just like we were promised
- with MADA board members no less. On the
cover, from top to bottom, Chad Murphy,
Mike Gallagher, Don Hilligoss, Dave
Buerkle, Peter Kolar, Steve Whitaker
and Steve Brimhall. Above you see Scott
Lambert taking his dog Norskie out for a
future walk.
Data Source Information for Minnesota
Auto Outlook on pages 23 - 36
Exclusive source for new vehicle
registration data presented in Minnesota
Auto Outlook is R. L. Polk and Company, a
leader in providing detailed new and used
vehicle sales and registration statistics.
Data is available on a timely basis on the
internet.
For more information visit www.polk.com
Protective.....................................Back Cover
Reliable Plus.............................................. 29
Schmit Towing........................................... 29
Super America............................................. 5
StarTribune.......................Back Inside Cover
Wings Financial................Inside Front Cover
WIPFLI LLP............................................... 30
Visible Customer....................................... 21
3
MINUTES
Anniversaries
Burnsville Toyota recently
celebrated its 25th
anniversary. Featured from
left in the photo: Toyota’s
Chicago Regional Manager
Kevin Fletcher with Burnsville
Toyota’s Dick Sjoquist,
president; Tony Brown,
partner/general manager; and
Sonja Brown, partner.
Adamson Motors is celebrating 60 years of a
family tradition since Joe Adamson founded this
Rochester dealership in 1953. Joe’s son, Bill
Adamson, learned the business at his father’s
side. Bill now works alongside of his own two
sons, Pat and Mike, as well as his son-in-law, Jeff.
Congratulations to all!
It was an honor to welcome two dealerships into
the Half Century Club at the 2013 MADA Annual
Meeting & Luncheon. This award is given to a
dealership which has been operated by the same
family for 50 continuous years. Higley Ford Sales
Company in Windom and Dan Welle’s GM and
Chrysler in Sauk Centre were each presented with
a plaque to commemorate this milestone.
Celebrity Status
Ted Thielen, Thielen
Motors, Park Rapids can
boast of a celebrity in his
family. Daughter Amy
Thielen has a new Food
Network show, “Heartland
Table” AND has just
published her first book
“The New Midwestern
Table” (Clarkson Potter publisher). Amy is a
classically trained chef and a freelance writer. She
4
won a James Beard Award for a series of articles
she wrote for the Minneapolis Tribune. Amy blogs
about her culinary adventures at amythielen.com.
Find A Dealer
Consumer visits are sharply increasing for the
“Find a Dealer” map search tool at mada.org; this
happens annually in the months prior to the Twin
Cities Auto Show. Visitors spend 40 seconds on
average to search by make, zip code and distance.
See your dealership’s listing at
http://www.mada.org/find-a-dealer.
Member Updates
“How do I get updates from MADA about Fraud
Alerts/Legal Changes/Legislative Developments?”
Employees of member dealerships can choose
exactly what they need to read by subscribing to
email lists. Or, have a digital copy of the MADA
newsletter or magazine sent directly to your desk.
Sign up at http://bit.ly/1fIi2Pp.
David Luther Named Finalist
We are pleased to announce that
David Luther was named a 2014
TIME Dealer of the Year Finalist. The
award ceremony took place today
in New Orleans, LA., at the NADA
Convention.
The TIME Dealer of the Year program honors newcar dealers in America who exhibit exceptional
performance in their dealerships and perform
distinguished community service. Dealers are
nominated by members of the ATAE (Automotive
Trade Association Executives) and the winner is
acknowledged at the annual NADA convention.
www.mada.org
MINUTES
Scholarships Awarded
involvement, community
service activities and teacher
recommendations.
Each year GMADA offers fifty
$2,000 college scholarships
to employees or employees’
children or spouses. Winners
are chosen based on academic
success, extracurricular
New Brighton Ford was excited
to announce that Lauren
Langham, Ken Langham’s
daughter, was one of this year’s
winners! Ken sells new and pre
owned vehicles at New Brighton
Ford. Lauren is a freshman at
Knox College in Illinois studying
Spanish and Business.
president of Whitaker Buick GMC
in Forest Lake. Jo is a freshman
at St. Cloud State University.
Jo’s father, Scott, is a master
technician at Whitaker Buick.
Jo Benson received a $2,000
scholarship from Steve Whitaker,
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5
MINUTES
2013 Annual Meeting
The sold-out 2013 MADA Annual Meeting
hosted a record 350 members at the Hilton in
Downtown Minneapolis. Outgoing President Paul
Walser announced the new car and truck industry
in Minnesota was up 18% over the previous
year and he congratulated the Association for its
achievements during the past year.
6
www.mada.org
THANK YOU TO OUR SPONSORS
www.mada.org
7
LEGISLATIVE NEWS
Legislative Preview:
2014: The (fill in the
The Unsession?
The Bonding Session
Governor Mark Dayton has a campaign to make
the 2014 legislative session the “Unsession.”
Since the summer months, he has engaged state
employees and Minnesota citizens in a conversation
to identify Minnesota laws and regulations that
should be undone or improved, in an effort to
make Minnesota government work better: fast and
smarter. While no specifics on how to accomplish
this goal have been unveiled by the Administration
yet, lawmakers have a lot of other business on
their plates for 2014, making the prospects of an
“Unsession” dubious.
The even-numbered years are also known as
“bonding” years, when legislators contemplate
spending on capital improvement projects for which
the state borrows money, or bonds for it. Governor
Dayton has recommended $986 million in projects
– out of over $3 billion in requests – in which the
state should invest. These projects run the gamut
from improvements in regional convention centers
to new buildings at the University of Minnesota
to local roads and bridges. While DFL legislators
have embraced the governor’s proposed level of
investment, Republican legislators would prefer to
borrow a lesser amount of money (around $850
million). Their opinion matters – as passage of a
bonding bill requires the support of three-fifths of
the members in each body, meaning that GOP votes
are necessary for a bonding bill to be successful.
The Short Session
Historically, the even-numbered legislative sessions
have been known as “short sessions” due to a
lighter workload, but for at least the last decade
they have run just as long as the odd-numbered
years. In an effort to curb legislative activity and
regain its “short” status, the 2014
session is convening much later than
And the call for “unsession” ideas has renewed
usual: Tuesday, Feb. 25. This will give
interest in repealing the Sunday sales ban for both
legislators less than three months to
liquor and motor vehicles.
conduct their business before they
must adjourn by the constitutionallyestablished deadline of May 19.
8
www.mada.org
Amber Backhaus
Director of Government Affairs
blank) Session
The” Fix-it” Session?
win the governor’s office or control of the
Minnesota House of Representatives in the 2014
elections. Included on this list are: an increase
in the state’s minimum wage; a comprehensive
transportation funding package; and increased
recycling rates.
Last year, a number of major new policies were
enacted - a few of which have turned out to be
more workable on paper than in practice. At the
top of the list is MNsure, the state health care
insurance exchange created to comply with the
Affordable Care Act. It
...PartsTrader deserves legislative scrutiny as it appears to
has been plagued with
problems since its Oct.
be a new form of steering, which is already illegal.
1 launch, prompting
everyone – from the governor to the legislative
Whatever it’s called….
auditor – to ask for a top-to-bottom review of the
program and possible changes to its oversight and
The 2014 Session promises to keep your MADA
operations. Similarly, last year’s tax bill included
lobbying team busy. The transportation funding
three new sales taxes on business-to-business
package is likely to contain taxes we oppose, such
services which have riled the business community
as authorization of municipal street improvement
and disrupted certain sectors of the economy, such fees. The coming increase in the state’s biodiesel
as warehousing. Governor Dayton and leading
content mandate is causing heartburn for
House Democrats have indicated their willingness
our member dealers and their customers, so
to repeal the new taxes in light of the $850 million
MADA plans to ask legislators to delay its July 1
budget surplus the state is anticipating, while
implementation. State Farm’s new PartsTrader
Senate Democratic leadership is not as keen to
program for vehicle repairs deserves legislative
concede on the pillars of their 2013 tax policy.
scrutiny as it appears to be a new form of steering,
which is already illegal. And the call for “unsession”
ideas has renewed interest in repealing the Sunday
The “Unfinished Business” Session
sales ban for both liquor and motor vehicles. MADA
While DFLers maintain complete control of state
will work aggressively on your behalf so that when
government, they hope to enact other initiatives
the gavel closes on the 2014 legislative session, we
that have little prospect of passage if Republicans
can call it a “success” for Minnesota’s dealers.
www.mada.org
9
MADA Endorsed Services & Vendors
Computerized Vehicle Registration
CVR
Dealership Marketing
Visible Customer
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
Call MADA for all of
your Direct Mail Needs.
651-291-2400 • 800-652-9029
OSHA, EPA & DOT Compliance/Training
ComplyNet Corporation
Fleet Fueling Program
SuperAmerica
Office Supplies
S & T Office Products
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
10
www.mada.org
COMIC CORNER
I think I’ll do
something nice for
my customers...
like CVR
Benefits of CVR:
• Increase CSI scores
• Accurate fees
• Flexibility with plate
assignments
• Increased
revenue
Contact MADA
today to get
in touch
with CVR.
www.mada.org
11
the
e
r
tu
Fu
IS
!
W
O
N
The dream of a car that can drive
itself is closer to reality than you
might think.
Major carmakers and others claim that
they are on track to deliver affordable, selfdriving cars to their customers by 2020.
The technologies needed to make a car fully autonomous already exist.
Many miles of testing have already been conducted. In Europe, BMW
has already clocked over 10,000 miles of fully autonomous driving
on real roads in its pursuit of developing active driver aids. Sweden’s
transportation regulators approved 100 robocars to drive the streets
12
www.mada.org
Jim Schutjer
Legal Counsel
of Gothenburg in 2017. Over a year ago,
Bold Predictions
Google announced that they completed over
• Later this year, Volvo expects vehicles that can be
300,000 autonomous-driving miles accidentautonomous, travel at up to 31 miles per hour, with
free with a dozen cars on the road at any
expected use in heavy traffic.
given time. Google cars have climbed San
• By 2015, Audi plans to market vehicles that can
Francisco’s famous Lombard Street with its
autonomously steer, accelerate and brake at lower
steep hairpin turns. The vehicles have also
driven over the Golden Gate Bridge and
speeds, such as in traffic jams.
around Lake Tahoe.
Overpromised like electric cars? As the
autonomous vehicle technology continues to
develop, insiders are watching for parallels
with the development of plug in electric
and fuel cell powered cars. Alternative fuel
vehicles have been the dandy of hipsters
and the green generation for decades.
They offer spectacular potential to address
global warming and help wean the world’s
economy from fossil fuels that will ultimately
fall into short supply. However, alternative
fuel vehicles have been slow to fulfill their
promise. Their widespread use has been
“just around the corner” for 20 years.
There is a significant parallel that may be
instructive for the future of autonomous
cars. Even with substantial government
subsidies and huge tax benefits, alternative
fuel vehicles have struggled to become cost
competitive. Even a marvel of design and
www.mada.org
• By 2015, Cadillac plans vehicles with “super cruise”:
autonomous steering, braking and lane guidance.
• By 2015, Nissan expects to sell vehicles with
autonomous steering, braking, lane guidance,
throttle, gear shifting, and, as permitted by law,
unoccupied self-parking after passengers exit.
• By 2015, Toyota plans to roll out near-autonomous
vehicles dubbed Automated Highway Driving
Assist with Lane Trace Control and Cooperativeadaptive Cruise Control.
• By 2018, Google expects to release their
autonomous car technology.
• By 2020, Volvo envisages having cars in which
passengers would be immune from injuries.
• By 2020, Mercedes-Benz, Audi, Nissan and BMW
expect to sell autonomous cars.
13
the
Future is NOW!
economy can’t make much of an impact in the marketplace if it has a
price tag of $10,000 more than its competitor.
At least initially, it appears as though the development of autonomous
vehicles may face the same hurdle. The components currently add
upwards of $100,000 to the price tag of a standard car. Even Google’s
self-driving cars, which start off as showroom standard Toyotas, cost
over $150,000 each to convert. Can the cost structures for equipping
autonomous vehicles be brought into line so as to develop the
economies of scale needed to overrun the marketplace?
In spite of the cost parallel, there are important differences in
the autonomous car roll out. The chief advantage is the greater
opportunity for incremental change. New technologies will come on
line gradually. New systems and ideas can build on the old. It’s easier
for the marketplace to react as well as to spur demand for particular
types of adaptive technology. This is different than the alternative fuel
car builders who had to spend millions developing and then bringing a
vehicle to market with the hope and gamble that the customers would
come. In many cases they haven’t.
Regulation and liability are constraints. Cost may not be the
most significant obstacle
threatening the widespread
adoption of autonomous
vehicles. Regulatory and liability
constraints are onerous.
General Motors exhibit at the Century21
Exposition in 1962
14
Autonomous cars are largely
unregulated by the government
and therefore remain illegal on
most roadways. Four U.S. states
have passed laws permitting
autonomous cars as of December
2013: Nevada, Florida, California,
and Michigan. A law proposed
in Texas would establish criteria
for allowing “autonomous motor
vehicles.”
www.mada.org
The National Highway Traffic Safety Administration
is the Federal Agency with overall responsibility to
ensure the safety of all new cars and trucks sold
in the U.S. NHTSA is adopting a careful “go slow”
approach to the development and testing of Level 3
and Level 4 automated vehicles. It is also advising
states to take a similar approach.
NHTSA’s current policy statement on autonomous
vehicles provides in part:
1956 Autonomous Car
NHTSA does not recommend that states
Illustration
authorize the operation of self-driving vehicles
for purposes other than testing at this time. We believe there are
a number of technological issues as well as human performance
issues that must be addressed before self-driving vehicles can be
made widely available. Self-driving vehicle technology is not yet
at the stage of sophistication or demonstrated safety capability
that it should be authorized for use by members of the public for
general driving purposes. […] As innovation in this area continues
and the maturity of self-driving technology increases, we will
reconsider our present position on this issue.
In addition to regulatory burdens that need to be faced, the fear of
liability may slow adoption of Level 3 and Level 4 vehicle automation.
Unlike alternative fuel vehicles (notwithstanding the Tesla fireball), which
have not been plagued with serious safety concerns, people may not
trust their lives to smart cars. Computers are by their nature “buggy”
and prone to malicious attack and mischief. So far, the safety record
of autonomous vehicles in testing has been flawless, however one high
profile incident could set the adoption curve back several years.
Beyond the carefree example in reruns of “Meet the Jetsons,” what
might automated cars mean for the industry and for society at large in
the future?
The future of car manufacturing may be at stake. Even though
the traditional car builders are actively pursuing autonomous vehicles,
www.mada.org
15
the
Future is NOW!
a ground shift may be in the offing. As cars become less and less
mechanical and more and more high-tech, they are starting to attract
interest from non-automotive organizations who think they can create a
synergy. The best-known example is Google, which not so long ago was
a search engine but is now on the verge of building its own cars. And
Google is now being joined by Nokia. The phone maker and mapping
company believes it has something to bring to the industry in terms
of autonomous cars; its obvious next stop will be the connected car
market.
Will this all play out with partnerships and joint ventures that preserve
the leadership position of the traditional car makers? Perhaps for near
and medium future. However, Detroit hasn’t totally ignored the tech
companies’ inroads into the business . A cute Chrysler ad for a Dodge
Charger from a few years ago takes a direct shot at Google. It’s on
YouTube here http://bit.ly/1fIDAvr. In the ad, the Charger is traveling
through a long gloomy tunnel, the camera tracking with it. A baritone
voice speaks: “Hands-free driving, cars that park themselves, an
unmanned car driven by a search-engine company.” The voice-over is
monotone, lifeless, ominous. “We’ve seen that movie,” the voice intones.
“It ends with robots harvesting our bodies for energy.”
The future for dealers may also be perilous (isn’t it always?)
The American love affair with the automobile may already be waning. If
cars don’t need drivers, will most individuals even own a car? Perhaps
not. Instead, most of us may well schedule a car for routine trips and
call or text one for on-demand service.
And finally, is it time to stick a fork in fixed rail mass transit? If vehicle
automation ultimately succeeds and fully displaces the existing fleet
of driver operated vehicles, no doubt its cost structures and consumer
benefits will be very, very favorable. If this happens - and considering
the safety and convenience of a Jetson ride - who’s going to ride the
metro?
16
www.mada.org
Ultimate
Jetson
Car
Level 4 Full Automation
Driver is not required for
control at any time during the
trip. This includes both occupied
and unoccupied vehicles. By
design, safe operation rests
solely on the automated vehicle
system
Federal Government
Classification of Different
Levels of Vehicle
Automation
Level 3 Limited Self-Driving
Automation
The step up from
Level 2 to Level
3 poses serious
regulatory and
liability challenges
Level 2 cars
are in the
marketplace
now
Driver gives up full control of the vehicle
for extended periods of time and is not
expected to constantly monitor the road or
traffic conditions. However the vehicle will
give control back to the driver if conditions
so warrant - perhaps approaching road
construction
Level 2 Combined Function Automation
Driver gives up primary control of the vehicle in some
circumstances. For example adaptive cruise control with
lane centering and automated parking
Level 1 Function-specific Automation
Driver controls either steering or Foot pedals
Examples include cruise control, automatic braking and lane keeping
Level 0 No Automation
Driver is in complete and sole control of the brakes, steering and throttle at all times,
and is solely responsible for monitoring the roadway for the safe operation of all
vehicle
www.mada.org
17
Dealers Are Good Neighbors
MADA salutes Minnesota new vehicle dealerships and dealership employees
who make their communities a better place to live.
Freezin’ For Food
For the tenth year in a row, nonperishable food items and cash
donations were dropped off
at Kohls-Weelborg Ford in
Redwood Falls. The goal for this
three-day event was 20,000 lbs
in food/cash donations. The final
tally: a whopping 22,422 lbs &
cash donations; bringing their 10year total to 218,986 pounds!
White Bear Mitsubishi is among a group of Twin
Cities car dealerships participating in the Drive Against
Hunger. For the fourth consecutive year, Saint Paul
Auto Group supported Second Harvest Heartland by
collecting 8,498 pounds of food, which means 7,053
families will be impacted by the donations. Their goal-more than the weight of a car---was more than met.
Apple Chevrolet was the sponsor for Northfield’s
“Give to the Max Day” grand celebration event. This
event was set up to encourage donations to support
local non profits and schools.
Adamson Motors presented $250,000 to the Mayo
Clinic as part of the Hyundai Hope on Wheels. All
Hyundai dealerships across the U.S. make contributions
to the company’s Hope on Wheels fund for every new
Hyundai sold. The award is then granted to a worthy
hospital or clinic to support research for childhood
cancer. For the second straight year, Mayo Clinic was
chosen as a recipient.
18
Cornerstone Chevrolet
in Monticello hosted a
Feed My Starving Children
Mobile Pack with over 520
volunteers packing 108,864
meals which will potentially feed 298 children for a year.
Fifty-six Heartland Chevrolet dealers, who sponsored
the Pink Camaro Sweepstakes as part of National Breast
Cancer Awareness Month in October, raised more than
$40,000 for the American Cancer Society.
Coon Rapids Chrysler Jeep, Lincoln, Mercury
donated a van for use by the Coon Rapids Senior
Services.
Sports
Harry Brown’s Automotive, Faribault, was among
the 55 Chevrolet dealerships in the metro area that
partnered with local youth baseball leagues for 2013.
Harry Brown’s supported the Faribault Youth Baseball
League. Dahl Chevrolet sponsored Rollingstone Youth
Baseball though this Chevrolet program which supplies
little leagues with equipment, shirts and funds. Vern
Eide Chevrolet, Albert Lea, donated $500 to the
Albert Lea Knights Baseball.
www.mada.org
Chevy Youth Hockey Program - Mel Carlson
Chevrolet is teaming up with Windom Youth Hockey
to provide players and coaches with hockey equipment
kits, a sponsorship check and an opportunity for
community members to enter the free Ultimate Pro
Hockey Experience sweepstakes which included four
tickets to a MN Wild game, hotel accommodations and
all-access passes at the game.
Drive 4 UR School
Lundeen Brothers Inc., Annandale, presented the
proceeds from the Drive 4 UR school fundraiser to
representatives of the Cardinal Athletic Foundation and
Annandale athletes. The fundraiser netted a $6,000
donation.Nelson Auto Center of Fergus Falls donated
over $4,000 to the Ashby Education Foundation.
Kohls-Weelborg Ford, Redwood Falls, was the local
dealership that sponsored this event for the Redwood
Area Education foundation. In total, $5,300 was raised.
New Brighton Ford
hosted a Drive 4 UR School
in October. The event
benefited the Irondale
High School Booster clubs.
The event was a great
success and $2,800 was
raised.
A.M. Maus & Son, Inc. helped to raise $4,320 in
funding for the Kimball Area High School football team
with the Ram Truck brand’s Ram Gridiron Challenge
program. This new program offers a $20 contribution
for every Ram Truck test drive taken during the
fundraising event.
Drive 4 UR Community
Sponsored by Ford Motor Company and facilitated
locally by Waconia Ford, this event generated several
thousand dollars for St. Joseph Catholic Church and
School in Waconia.
Goodhue County 4-H and Zumbrota Ford also
partnered for this community fundraiser. At their
monthly meeting in October, the Goodhue County 4-H
Council representatives received a $6,000 donation.
Send
YOUR good news
to Sandy at
brom@mada.org
www.mada.org
19
CSC NEWS
Trash to Treasure
Parts Donation Program
MADA’s Collision & Service Council is teaming
up with the I-CAR Collision Repair Education
Foundation to implement a parts donation program
–a win-win for all.
publications, and Council members also receive a
press release to their local media.
You’ve heard the saying, “one person’s trash is
another person’s treasure.” This adage certainly
holds true in the world of collision and autobody
training. With advanced technologies and materials
used in current and future vehicles, our industry
requires a well-trained, skilled workforce to make
repairs safely, efficiently and compliant with vehicle
manufacturer standards. Programs like collision
repair bear the brunt of funding cuts in tight
school budgets. Currently, many collision program
students practice on severely aged vehicles or
teachers’ cars and trucks, and some instructors are
forced to “dumpster dive.” Not familiar with the
term? It describes instructors’ practice of searching
the local dealerships’ trash or repair facility
dumpster to find discarded parts.
At the project website at mada.org/
partsdonationprogram, complete the signup form
with:
Our industry can do better than this! Each year,
dealerships scrap millions of dollars worth of parts,
so why not donate them to a worthy cause? It
is a win-win situation for everyone: the schools
get the parts they need, dealerships receive a
tax deduction for every part donated, our dealer
members are connected to schools for employee
recruitment, and the industry produces a better
trained workforce because students can practice
repair techniques with current parts.
Signing up for the program is simple.
• Dealership name and contact information;
• Your preferred or “adopted” school(s) for your
parts donations; and
• Your donation preference: have a local
collision instructor pick up the parts from your
location; bring them to the school (great photo
opportunity); or ship.
When your dealership is enrolled, the Collision
Repair Education Foundation will follow up with you
and the school. At the end of the school year, the
Foundation provides the completed tax deduction
form to your dealership. That’s it!
We hope you will consider participating in this
program. If you have any questions or prefer to
register your dealership manually, please contact
Denise Anderson, denise@mada.org or 651-7892950. For more information about the Collision
Repair Education Foundation, visit
www.CollisionEducationFoundation.org.
As a donor, your dealership is recognized for your
contribution in national collision industry trade
20
www.mada.org
CSC NEWS
Council Elections
The Collision & Service Council’s recent elections produced clear support for the nominated candidates.
Eight members were elected to 2- or 3-year terms to provide continuity of leadership on the Advisory
Committee. The ninth member, Scott Lambert, serves in his role as MADA’s CEO. Mark Morcomb,
president, and Tony Simoneau, secretary/treasurer, are the group’s officers during 2014. Those elected
are:
Mark Morcomb – Luther Automotive, 2 year term; Tony Simoneau – Buerkle Collision, 3 year term; Tony
Gerlach - Arrow Collision Center, 3 year term; Randy Jacobi - Dondelinger GM, 2 year term; Wayne Nielsen
– Viking Collision, 3 year term; Sid Osterman -The Body Works, 2 year term; Brian Steffensmeier - Snell
Motors, 3 year term; Steve Weisenberger – Luther Automotive, 2 year term.
2) Illuminate
1) Diagnose
Bottom Line Benefits
• Attract and retain more customers for less
money
• Sell more vehicles and increase repeat
business
• Service more vehicles while increasing
average spend per RO
• Increase market share and customer
loyalty
• Create a database of customers with the
highest lifetime value for your dealership
www.mada.org
5) Measure
3) Design
4) Orchestrate
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CLAconnect.com/dealerships
FORECAST
FORECAST
State
New
Vehicle
Market
Predicted
to Increase
in 2014
State
New
Vehicle
Market
Predicted
to Increase
5%5%
in 2014
Comprehensive Information on the
Minnesota
Automotive
Market
Information
overload
is hard
to avoid
Here’s
our attempt
to through
cut through
the
clutter.
Below
Information
overload
is hard
to avoid
thesethese
days.days.
Here’s
our attempt
to cut
the clutter.
Below
is a is a
Improvement
follows
estimated
14.2%
increase
forofall2013
of 2013
Improvement
follows
estimated
14.2%
increase
for all
MINNESOTA AUTO OUTLOOK
concise summary of key trends and developments in the Minnesota new vehicle market.
concise
FORECASTsummary of key trends and developments in the Minnesota new vehicle market.
State
market
posts
gains
during
11Increase
months
of 2013;
is higher
Nation.
State
market
posts
solidsolid
gains
during
first first
11 months
of 2013;
increase
is higher
thanthan
Nation.
New New
retailretail
State
New
Vehicle
Market
Predicted
to
5%
inincrease
2014
registrations
were
up
14.1%
for
the
first
11
months
of
2013
(November
figures
were
estimated)
versus
a year
registrations
were
up 14.1%
for the
firstincrease
11 months
(November figures were estimated) versus a year
Improvement
follows
estimated
14.2%
for of
all2013
of 2013
earlier,
above
the
10.1%
uptick
in
the
National
market.
earlier, above the 10.1% uptick in the National market.
Information overload is hard to avoid these days. Here’s our attempt to cut through the clutter. Below is a concise summary of key
New
market
increases
again
in Third
Quarter
of 2013.
Quarter
increase
23.8%,
trends
andvehicle
developments
in the
Minnesota
new
market.
New
vehicle
market
increases
again
in vehicle
Third
Quarter
of 2013.
The The
ThirdThird
Quarter
increase
was was
23.8%,
higher
the First
and Second
Quarters.
higher
than than
in posts
theinFirst
Second
State market
solidand
gains
duringQuarters.
first 11 months of 2013; increase is higher than Nation. New retail registrations were
up 14.1% for
the first 11 months
ofincrease
2013 (November
figures
were estimated)
versus a year
earlier,
above the 10.1%
uptick in the
consecutive
annual
in 2014.
vehicle
registrations
are predicted
FifthFifth
consecutive
annual
increase
likelylikely
in 2014.
StateState
new new
retailretail
light light
vehicle
registrations
are predicted
to to
National
market.
increase
6% from
to 2014.
2013’s
annual
increase
is pegged
at 14.2%.
increase
6% from
20132013
to 2014.
2013’s
annual
increase
is pegged
at 14.2%.
NewForecast
vehicle market
increases again
into
Third
Quarter
of 2013.
The Third
Quarter
increase
was 23.8%,several
higher than
in the The
First
determinants
slower
growth
in new
vehicle
during
years.
Forecast
pointpoint
to slower
growth
in new
vehicle
salessales
during
nextnext
several years.
The
and likelihood
Seconddeterminants
Quarters.
of less
stellar
economic
growth,
economically
restrictive
policy
Washington,
a
likelihood of less
than than
stellar
economic
growth,
economically
restrictive
fiscalfiscal
policy
from from
Washington,
and and
a
slowing
global
economy
are
likely
to
put
a
mild
damper
on
the
rate
of
growth
in
new
vehicle
sales.
Moderate
Fifth
consecutive
annual
increase
likely
in
2014.
State
new
retail
light
vehicle
registrations
are
predicted
to
increase
6%
from
slowing global economy are likely to put a mild damper on the rate of growth in new vehicle sales. Moderate
up demand,
an increase
improving
housing
market,
low interest
gradually
improving
household
2013pent
to 2014.
2013’san
annual
is pegged
at 14.2%.
pent
up
demand,
improving
housing
market,
low interest
rates,rates,
and and
gradually
improving
household
debt debt
levels
should
ensure
sales
will
continue
to
head
higher,
but
at
a
slightly
slower
pace.
levels
should
ensure sales
to head
but atsales
a slightly
pace. years. The likelihood of less than
Forecast
determinants
pointwill
tocontinue
slower growth
in higher,
new vehicle
duringslower
next several
stellar
economic
growth,
economically
fiscal policy
from Washington,
and increased
a slowing global
economy
are likely
put
Trucks
a larger
share
ofrestrictive
state
market.
market
57.0%
during
thetofirst
Trucks
grabgrab
a larger
share
of state
market.
LightLight
trucktruck
market
shareshare
increased
from from
57.0%
during
the first
a
mild
damper
on
the
rate
of
growth
in
new
vehicle
sales.
Moderate
pent
up
demand,
an
improving
housing
market,
low
interest
11
months
of
2012
to
58.7%
in
2013.
Primary
factors
were
steady
fuel
prices
and
strong
sales
of
Full
Size
11 months of 2012 to 58.7% in 2013. Primary factors were steady fuel prices and strong sales of Full Size
rates,
andand
gradually
improving household debt levels should ensure sales will continue to head higher, but at a slightly slower pace.
Pickups
and Crossovers.
Pickups
Crossovers.
Trucks
grab a larger
share of state
market.
Light
market share
increased
fromsales
57.0%ofduring
theand
firstelectric
11 months
of 2012
Alternative
powertrain
vehicle
sales
aretruck
up sharply
in 2013.
State
hybrid
Alternative
powertrain
vehicle
sales
are
up
sharply
in 2013.
State
sales
of hybrid
and
electric
cars cars
and and
to 58.7%
in
2013.
Primary
factors
were
steady
fuel
prices
and
strong
sales
of
Full
Size
Pickups
and
Crossovers.
trucks
up 38.9%
thru November
of 2013.
Market
increased
to 3.4%.
trucks
werewere
up 38.9%
thru November
of 2013.
Market
shareshare
increased
to 3.4%.
Alternative powertrain vehicle sales are up sharply in 2013. State sales of hybrid and electric cars and trucks were up 38.9%
Chevrolet,
Toyota,
Honda
are leaders
in Minnesota
market.
the best
selling
Ford,
Chevrolet,
Toyota,
Honda
and and
Nissan
are leaders
in Minnesota
market.
FordFord
was was
the best
selling
thruFord,
November
of 2013.
Market
share
increased
toNissan
3.4%.
brand
during
the 11
firstmonths
11 months
of 2013,
an 18.8%
share.
Chevrolet’s
15.7%.
brand
during
the first
of 2013,
with with
an 18.8%
share.
Chevrolet’s
shareshare
was was
15.7%.
Ford, Chevrolet, Toyota, Honda and Nissan are leaders in Minnesota market. Ford was the best selling brand during the first
Detroit
gain
in 2013,
as Korean
brands
lose
share.
Detroit
Three
accounted
a larger
11 months
ofThree
2013,
anground
18.8%
share.
Chevrolet’s
share
was
15.7%.
Detroit
Three
gainwith
ground
in 2013,
as
Korean
brands
lose
share.
Detroit
Three
accounted
for a for
larger
chunk
the state
market
in 2013,
with
increasing
51.8%
during
the 11
first 11 months
of 2012
to
chunk
ofThree
theofstate
with
shareshare
increasing
from from
51.8%
during
the first
of 2012
to state
Detroit
gainmarket
groundin
in2013,
2013, as
Korean
brands
lose share.
Detroit
Three
accounted
for amonths
larger chunk
of the
market
52.6%
in
2013.
52.6%
2013.
in 2013,inwith
share increasing from 51.8% during the first 11 months of 2012 to 52.6% in 2013.
Annual
Trend
in Minnesota
Market
Annual
in Minnesota
NewVehicle
Vehicle
Market
Annual
Trend
in Trend
Minnesota
New New
Vehicle
Market
Market
Review
Market
Review
Market
Review
New light vehicle registrations
New light vehicle registrations
250,000
250,000
200,000
200,000
210,000
210,000
183,863
183,863
170,413
170,413
150,000
150,000
154,312
100,000
154,312
100,000
133,482
128,088
133,482
128,088
50,000
50,000
0
0
2008
2008
2009
2010
2011
2012
2013
2009
2010
2011
2012
2013
Forecast
Forecast
Source:
Source:
Polk. Polk.
Data Source: Polk
www.mada.org
TOTAL
TOTAL
Car
Car
Light Truck
Light Truck
Detroit Three
Detroit Three
European
European
Japanese
Japanese
Korean
Korean
YTD '12
YTD '13
% Chg. Mkt. Share
YTD '12
YTD '13
% Chg. Mkt. Share
thru Nov thru Nov* '12 to '13
YTD '13
thru Nov thru Nov* '12 to '13
YTD '13
163,937
187,126
14.1%
163,937
187,126
14.1%
70,466
77,297
9.7%
41.3%
77,297
9.7%
41.3%
93,471
109,829
17.5%
58.7%
93,471
109,829
17.5%
58.7%
70,466
84,952
98,369
15.8%
98,369
15.8%
11,699
12,411
6.1%
11,699
12,411
6.1%
53,683
62,712
16.8%
53,683
62,712
16.8%
13,603
13,634
0.2%
13,603
13,634
0.2%
84,952
52.6%
6.6%
33.5%
7.3%
52.6%
6.6%
33.5%
7.3%
Detroit
Three consists
of vehicles
by GM,sold
Ford and
Detroit
consists
of sold
vehicles
by GM,
Detroit
ThreeThree
consists
of vehicles
sold by GM,
Chrysler.
Ford,
and
Chrysler.
Ford, and Chrysler.
*November 2013 figures were estimated by Auto Outlook.
*November
figures
estimated
by Auto
*November
2013 2013
figures
were were
estimated
by Auto
Outlook.
Outlook.
23
Brand Registrations Report
Minnesota New Retail Car and Light Truck Registrations
TOTAL
Previous Three Months (Sept. thru Nov.*)
Year to date thru November*
Registrations
Market Share (%)
Registrations
Market Share (%)
2012
2013 Change YTD '12 YTD '13% change YTD '12 YTD '13 Change
2012
2013% change
52,324 51,738
-1.1
163,937 187,126
14.1
Cars
Light Trucks
21,378
30,946
20,081
31,657
-6.1
2.3
40.9
59.1
38.8
61.2
-2.1
2.1
70,466 77,297
93,471 109,829
9.7
17.5
43.0
57.0
41.3
58.7
-1.7
1.7
Domestic Brands
European Brands
Japanese Brands
Korean Brands
27,622
3,627
16,986
4,089
27,978
3,284
16,708
3,768
1.3
-9.5
-1.6
-7.9
52.8
6.9
32.5
7.8
54.1
6.3
32.3
7.3
1.3
-0.6
-0.2
-0.5
84,952
11,699
53,683
13,603
98,369
12,411
62,712
13,634
15.8
6.1
16.8
0.2
51.8
7.1
32.7
8.3
52.6
6.6
33.5
7.3
0.8
-0.5
0.8
-1.0
Acura
415
405
Audi
355
357
BMW
644
592
Buick
945
994
Cadillac
426
495
Chevrolet
8,181
8,216
Chrysler
1,146
919
Dodge
1,524
1,524
FIAT
99
71
Ford
10,039 10,262
GMC
1,906
1,993
Honda
4,136
3,659
Hyundai
2,001
1,788
Infiniti
225
257
Jaguar
6
24
Jeep
1,492
1,577
Kia
2,088
1,979
Land Rover
109
117
Lexus
552
541
Lincoln
320
309
Mazda
1,129
1,038
Mercedes
531
558
MINI
152
127
Mitsubishi
202
361
Nissan
2,344
2,639
Other
156
88
Porsche
47
48
Ram
1,611
1,632
Subaru
1,720
2,059
Tesla
6
32
Toyota
6,165
5,736
Volkswagen
1,448
1,180
Volvo
204
161
*November figures were estimated.
-2.4
0.6
-8.1
5.2
16.2
0.4
-19.8
0.0
-28.3
2.2
4.6
-11.5
-10.6
14.2
300.0
5.7
-5.2
7.3
-2.0
-3.4
-8.1
5.1
-16.4
78.7
12.6
-43.6
2.1
1.3
19.7
0.8
0.7
1.2
1.8
0.8
15.6
2.2
2.9
0.2
19.2
3.6
7.9
3.8
0.4
0.0
2.9
4.0
0.2
1.1
0.6
2.2
1.0
0.3
0.4
4.5
0.3
0.1
3.1
3.3
0.0
11.8
2.8
0.4
0.8
0.7
1.1
1.9
1.0
15.9
1.8
2.9
0.1
19.8
3.9
7.1
3.5
0.5
0.0
3.0
3.8
0.2
1.0
0.6
2.0
1.1
0.2
0.7
5.1
0.2
0.1
3.2
4.0
0.1
11.1
2.3
0.3
0.0
0.0
-0.1
0.1
0.2
0.3
-0.4
0.0
-0.1
0.6
0.3
-0.8
-0.3
0.1
0.0
0.1
-0.2
0.0
-0.1
0.0
-0.2
0.1
-0.1
0.3
0.6
-0.1
0.0
0.1
0.7
0.1
-0.7
-0.5
-0.1
1,213
1,221
1,983
3,035
1,158
25,772
4,034
4,823
298
30,014
5,935
13,901
6,314
728
32
4,749
7,289
291
1,735
980
3,174
1,546
562
571
7,464
456
167
4,371
5,278
6
19,354
4,763
720
1,431
1,294
2,364
3,691
1,489
29,398
3,719
6,231
291
35,190
6,785
15,384
6,416
787
56
5,040
7,217
365
1,944
1,042
3,879
1,791
636
961
9,047
297
191
5,597
7,165
88
22,014
4,610
716
18.0
6.0
19.2
21.6
28.6
14.1
-7.8
29.2
-2.3
17.2
14.3
10.7
1.6
8.1
75.0
6.1
-1.0
25.4
12.0
6.3
22.2
15.8
13.2
68.3
21.2
-34.9
14.4
28.0
35.8
0.7
0.7
1.2
1.9
0.7
15.7
2.5
2.9
0.2
18.3
3.6
8.5
3.9
0.4
0.0
2.9
4.4
0.2
1.1
0.6
1.9
0.9
0.3
0.3
4.6
0.3
0.1
2.7
3.2
0.0
11.8
2.9
0.4
0.8
0.1
0.7
0.0
1.3
0.1
2.0
0.1
0.8
0.1
15.7
0.0
2.0
-0.5
3.3
0.4
0.2
0.0
18.8
0.5
3.6
0.0
8.2
-0.3
3.4
-0.5
0.4
0.0
0.0
0.0
2.7
-0.2
3.9
-0.5
0.2
0.0
1.0
-0.1
0.6
0.0
2.1
0.2
1.0
0.1
0.3
0.0
0.5
0.2
4.8
0.2
0.2
-0.1
0.1
0.0
3.0
0.3
3.8
0.6
0.0
0.0
11.8
0.0
2.5
-0.4
0.4
0.0
Source: Polk
-7.0
-18.5
-21.1
13.7
-3.2
-0.6
Top ten ranked brands in each category are shaded yellow.
Top ten ranked brands in each category are shaded yellow.
24
www.mada.org
Detroit Three and Japanese Brands Gain Ground in 2013
MARKET TRACKER: BRAND MARKET SHARE
State Market Share: YTD 2013 thru November* vs. YTD 2012
Detroit ThreeChange
andinJapanese
Brands Gain Ground in 2013
MARKET TRACKER: BRAND MARKET SHARE
Detroit Three
and Japanese Brands Gain Ground in 2013
Detroit Three
Change
0.8
Detroit Three and
brand
share YTD 2013 thru November* vs. YTD 2012
in
StateJapanese
Market
Share:
Change in
State Market
Share: YTD 2013 thru November* vs. YTD 2012
increased
0.8 points.
Japanese
0.8
Detroit Three
0.8
Detroit Three and
Japanese brand share
increased 0.8 points.
European
-0.5
Japanese
0.8
-1.0
Korean
European
-0.5
-2.0
-1.5
-1.0
-1.0
Korean
-0.5
0.0
-1.5
1.0
Change in market share
Source: Polk. *November 2013 figures were estimated by Auto Outlook.
-2.0
0.5
-1.0
-0.5
0.0
0.5
1.0
Change in market share
Source: Polk. *November 2013 figures were estimated by Auto Outlook.
Source: Polk. *November 2013 figures were estimated by Auto Outlook.
MARKET TRACKER: HYBRID AND ELECTRIC VEHICLES
Hybrid & Electric Share Falls at end of ‘13; But Up Sharply vs. ‘12
MARKET
TRACKER:
HYBRID
ELECTRIC
MARKET TRACKER:
HYBRID
AND AND
ELECTRIC
VEHICLESVEHICLES
Hybrid & Electric Share Falls at end of ‘13; But Up Sharply vs. ‘12
Hybrid &Quarterly
Electric
Share Falls at end of ‘13; But Up Sharply vs. ‘12
Alternative Powertrain Market Share (includes hybrid and electric vehicles)
Quarterly Alternative Powertrain Market Share (includes hybrid and electric vehicles)
4.0%
Quarterly
Alternative Powertrain Market Share (includes hybrid and electric vehicles)
Trendline
3.5%
3.0%
4.0%
2.5%
3.5%
2.0%
3.0%
1.5%
2.5%
1.0%
2.0%
0.5%
1.5%
0.0%
1.0% Q1
0.5% '11
Trendline
Q2
'11
Q3
'11
Q4
'11
Q1
'12
Alternative powertrain market share has
trended higher during the past three years,
but declined from the Third to the Fourth
Quarter of 2013.
Alternative powertrain market share has
trended higher during the past three years,
but declined from the Third to the Fourth
Q2Quarter
Q3of 2013.
Q4
Q1
Q2
Q3
'12
'12
'12
'13
'13
'13
0.0%
Q1 2013
Q2 includes
Q3
Q4
Q1figures
Q2 only.
Q3
Source: Polk. *Fourth Quarter
October
'11
'11
'11
'11
'12
'12
'12
Q4
'12
Q1
'13
Q2
'13
Q3
'13
Q4
'13*
Q4
'13*
Source: Polk. *Fourth Quarter 2013 includes October figures only.
www.mada.org
Source: Polk. *Fourth Quarter 2013 includes October figures only.
25
Full Size Pickup Segment Leads State Market
MARKET TRACKER: SEGMENTS
Full Size Pickup Segment Leads State Market
Minnesota Segment Market Share Review
Segment
Full Size Pickup
Compact SUV
Standard Mid Size Car
Sub Compact Car
Mid Size SUV 3 Rows
Mid Size SUV 2 Rows
Mini Van
Entry Car
Large Mid Size Car
Mid Size Luxury SUV
Near Luxury Car
Compact Luxury SUV
Full Size SUV
Luxury and Sports Cars
Full Size Van
Sport Compact Car
Compact Pickup
Full Size Luxury SUV
Entry Luxury Car
Market Share
YTD '12 thru Oct
16.4
15.5
16.9
15.3
8.6
4.2
4.7
3.5
2.9
2.3
2.2
0.9
1.6
1.4
0.8
1.0
1.2
0.3
0.3
Market Share
YTD '13 thru Oct
17.3
16.4
15.7
15.3
8.6
4.8
4.2
3.1
3.0
2.3
2.2
1.5
1.5
1.4
0.9
0.8
0.7
0.3
0.2
Change in share
YTD '12 to YTD '13
0.9
0.9
-1.2
0.0
0.0
0.6
-0.5
-0.4
0.1
0.0
0.0
0.6
-0.1
0.0
0.1
-0.2
-0.5
0.0
-0.1
Best selling model
in segment
Ford F-Series
Chevrolet Equinox
Toyota Camry
Ford Focus
Toyota Highlander
Ford Edge
Chrysler Town & Country
Kia Soul
Ford Taurus
Lexus RX
BMW 3-Series
Buick Encore
Chevrolet Tahoe
BMW 5-Series
Chevrolet Express
Chevrolet Camaro
Toyota Tacoma
Cadillac Escalade
Lexus Ct200h
The table above shows Minnesota market share for 19 vehicle segments during the first ten months of 2012 and 2013, and
the change in market share over the period. The best selling model in each segment is also shown. Segments are ranked
from top to bottom based on 2013 share. Most popular segment in the state is Full Size Pickup. Full Size Pickup and Compact
SUV had the largest gains. Data Source: Polk.
The table above shows Minnesota market share for 19 vehicle segments during the first ten months of
nd 2013, and the change in market share over the period. The best selling model in each segment is
hown. Segments are ranked from top to bottom based on 2013 share. Most popular segment in the sta
Full Size Pickup. Full Size Pickup and Compact SUV had the largest gains. Data Source: Polk.
26
www.mada.org
Jaguar and Mitsubishi Post Large Percentage Gains
Subaru, Dodge, Cadillac, and Ram are also up sharply SCOREBOARD
PART ONE a comparative evaluation of brand sales performance in the state market. They
TheBRAND
graphs
below -provide
show
the year-to-date
percent Post
change
in registrations
for Gains
each brand, organized by category (i.e., Detroit
Jaguar
and Mitsubishi
Large
Percentage
Three, European, Japanese, and Korean). Data Source: Polk.
Subaru, Dodge, Cadillac, and Ram are also up sharply
The graphs below provide a comparative evaluation of brand sales performance in the state market. They show the year-to-date
percent change in registrations for each brand, organized by category (i.e., Detroit Three, European, Japanese, and Korean).
Percent Change in State New Retail Light Vehicle Registrations
YTD
2013inthru
vs.Vehicle
YTD 2012
Percent
Change
StateNovember*
New Retail Light
Registrations
Data Source: Polk.
YTD 2013 thru November* vs. YTD 2012
29.2%
Dodge
28.6%
Cadillac
28.0%
Ram
17.2%
Ford
GMC
14.3%
Chevrolet
14.1%
Lincoln
6.3%
Jeep
6.1%
Chrysler
Detroit Three
Brands
21.6%
Buick
-7.8%
75.0%
Jaguar
25.4%
Land Rover
19.2%
BMW
14.4%
Porsche
13.2%
MINI
6.0%
Audi
-0.6%
Volvo
FIAT
Volkswagen
European
Brands
15.8%
Mercedes
-2.3%
-3.2%
68.3%
Mitsubishi
35.8%
Subaru
22.2%
Mazda
21.2%
Nissan
18.0%
Acura
13.7%
Toyota
12.0%
Lexus
10.7%
Honda
8.1%
Infiniti
1.6%
Hyundai
Korean
Brands
-1.0%
Kia
-20.0%
Japanese
Brands
-10.0%
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
70.0%
80.0%
Source: Polk. *November 2013 figures were estimated by Auto Outlook.
Source:
Polk. *November 2013 figures were estimated by Auto Outlook.
www.mada.org
27
Chevrolet’s share of state market exceeds U.S. by 4.9 points
The BRAND
graphSCOREBOARD
below provides
a comparison of Minnesota and U.S. new retail market share during the first eleven
- PART TWO
months of 2013 for the top 20 selling brands in the state. Brands are positioned on the graph from top to
Ford is Top Selling Brand in State Market
bottom based on state market share. Ford was the state leader, accounting for 18.8% of the market, above its
Chevrolet’s
of state market exceeds U.S. by 4.9 points
13.2%
share inshare
the Nation.
The graph below provides a comparison of Minnesota and U.S. new retail market share during the first eleven months of 2013
for the top 20 selling brands in the state. Brands are positioned on the graph from top to bottom based on state market share.
Ford was the state leader, accounting for 18.8% of the market, above its 13.2% share in the Nation.
State and U.S. Market Share - YTD 2013 thru November*
Percent Change in State New Retail Light Vehicle Registrations
YTD 2013 thru November* vs. YTD 2012
Ford
Chevrolet
11.8%
8.2%
Honda
4.8%
Nissan
Subaru
3.1%
GMC
10.4%
7.2%
3.0%
3.8%
3.6%
Hyundai
3.4%
Dodge
3.3%
3.2%
Ram
3.0%
2.3%
Jeep
2.7%
Volkswagen
2.5%
2.7%
Mazda
2.1%
2.0%
Chrysler
2.0%
1.5%
Buick
2.0%
1.4%
1.3%
Lexus
1.0%
Mercedes
1.0%
0.0%
13.6%
3.9%
3.7%
Kia
Cadillac
15.7%
10.8%
Toyota
BMW
18.8%
13.2%
4.7%
Area
U.S.
3.4%
2.1%
1.9%
2.2%
0.8%
1.3%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
14.0%
16.0%
18.0%
20.0%
Market Share
Source: Polk. *November 2013 figures were estimated by Auto Outlook.
28
Source: Polk. *November 2013 figures were estimated by Auto Outlook.
www.mada.org
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29
MODEL SCOREBOARD
MODEL SCOREBOARD
Focus and Outback Post Largest Market Share Gains
Focus
and Outback Post Largest Market Share Gains
MODEL
SCOREBOARD
F-Series
and Silverado lead light truck sales chart
Focus
andand
Outback
Postlead
Largest
Share
Gains
F-Series
Silverado
light Market
truck sales
chart
The twoand
graphs
belowlead
show
market
in the state car and light truck markets during the first 10 months of
F-Series
Silverado
light
truckshares
sales chart
2012
and
2013.
Includes
the market
top
ten shares
selling
models
forlight
cars
andlight
lighttruck
trucks.
Data
Source:
Polk.
The
graphs
below
show
market
shares
in the state
car state
and
markets
during
the first
10 months
of 2012
and 2013.of
Thetwo
two
graphs
below
show
in
the
cartruck
and
markets
during
the
first
10 months
Data
Source:
Polk
Includes
the
top
ten
selling
models
for
cars
and
light
trucks.
2012 and 2013. Includes the top ten selling models for cars and light trucks. Data Source: Polk.
Change in Market Share for Top 10 Selling Cars - YTD 2013 thru October vs. YTD 2012
7.0%
in Market
Share
Top
Selling Cars
2013
thru thru
October
vs. YTDvs.
2012YTD 2012
ChangeChange
in Market
Share
forfor
Top
1010Selling
Cars- YTD
- YTD
2013
October
Focus and Outback market shares
were up sharply.
Focus and Outback market shares
were up sharply.
7.0%
6.0%
2012 YTD
2013
2012 YTD
YTD
MarketMarket
Share Share
6.0%
5.0%
2013 YTD
5.0%
4.0%
4.0%
3.0%
3.0%
2.0%
2.0%
1.0%
1.0%
0.0%
0.0%
Toyota Camry
Ford Focus
Ford Fusion
Honda Accord
Toyota Camry
Ford Focus
Ford Fusion
Honda Accord
Chevrolet
Cruze
Chevrolet
Cruze
Honda Civic
Toyota Prius
Honda Civic
Toyota Prius
Subaru
Outback
Subaru
Outback
Chevrolet
Malibu
Chevrolet
Malibu
Toyota Corolla
Toyota Corolla
Change in Market Share for Top 10 Selling Light Trucks - YTD 2013 thru October vs. YTD 2012
ChangeChange
in Market
Share
for Top
1010Selling
Trucks
- YTD
thru October
vs. YTD 2012
in Market
Share
for Top
Selling Light
Light Trucks
- YTD
20132013
thru October
vs. YTD 2012
12.0%
Market shares for Ram and Escape
improved.
Market shares for Ram and Escape
improved.
12.0%
10.0%
10.0%
2012 YTD
2013
2012 YTD
YTD
2013 YTD
MarketMarket
Share Share
8.0%
8.0%
6.0%
6.0%
4.0%
4.0%
2.0%
2.0%
0.0%
0.0%
30
Ford F Series
Ford F Series
Chevrolet
Silverado
Chevrolet
Silverado
Chevrolet
Equinox
Chevrolet
Equinox
Ram
Ford Escape
Honda CRV
Toyota RAV4
GMC Sierra
Ford Edge
Ram
Ford Escape
Honda CRV
Toyota RAV4
GMC Sierra
Ford Edge
Toyota
Highlander
Toyota
Highlander
www.mada.org
Car market share in state is 8.7 points lower than in the Nation
The accompanying table provides a comparison of results in both the Minnesota and U.S. markets. New
vehicle registrations in the state improved 14.1% during the first eleven months of 2013, while the U.S. market
increased
Car market
share in Minnesota was 8.7 share points lower than in the Nation. Detroit Three
MINNESOTA 10.1%.
MARKET VERSUS
U.S.
market share in Minnesota was 52.6%, up slightly from a year earlier, and well above the 40.8% share in the
Gain in State Market to Out-Pace Nation in 2013
Nation.
Car market share in state is 8.7 points lower than in the Nation
The accompanying
table provides a comparison of results in both the Minnesota and U.S. markets. New vehicle registrations
Source:
Polk.
in the state improved 14.1% during the first eleven months of 2013, while the U.S. market increased 10.1%. Car market share in
Minnesota was 8.7 share points lower than in the Nation. Detroit Three market share in Minnesota was 52.6%, up slightly from
a year earlier, and well above the 40.8% share in the Nation. Data Source: Polk
Minnesota Market
U.S. Market
14.1%
10.1%
Car Market Share
Car share of industry retail light vehicle
registrations - YTD 2013 thru November*
41.3%
50.0%
Detroit Three Brand Market Share
Domestic brand share of industry retail light
vehicle registrations - YTD 2013 thru Nov.*
52.6%
40.8%
Change in registrations
% change in registrations
YTD 2013 thru November vs. YTD 2012*
Top selling light vehicle brands and
market share - YTD 2013 thru November*
First
Second
Third
Fourth
Fifth
Sixth
Seventh
Eighth
Ninth
Tenth
*Figures for November 2013 were estimated by Auto Outlook
www.mada.org
Ford
Chevrolet
Toyota
Honda
Nissan
Kia
Subaru
GMC
Hyundai
Dodge
18.8%
15.7%
11.8%
8.2%
4.8%
3.9%
3.8%
3.6%
3.4%
3.3%
Toyota
Ford
Chevrolet
Honda
Nissan
Hyundai
Kia
Jeep
Dodge
Subaru
13.6%
13.2%
10.8%
10.4%
7.2%
4.7%
3.7%
3.4%
3.2%
3.1%
Data Source: Polk
31
NT RESULTS IN MINNESOTA USED VEHICLE MARKET
Used vehicle registrations increased 12.4% in first 11 months of the year
T RESULTS IN MINNESOTA
USED VEHICLE
MARKET Turns the Corner in 2013
nnesota
Used Vehicle
Market
Minnesota Retail Used Light Vehicle Registrations
Below is a list of key trends in the Minnesota retail
YTD2013
thru October
dnesota
vehicle
registrations
increased
12.4%
in
first
11
months
of the year
in
used vehicle Used
market: Vehicle Market Turns the Corner
% Change
Market Share
Registrations
RECENT RESULTS IN MINNESOTA USED VEHICLE MARKET
YTD '12
'12 TO '13
12.4%
YTD '13
vehicle
registrations
increased
12.4%
in first
months
of the
year 635,507
Used Vehicle
Turns
the11
Corner
TOTALin 2013
565,393
•Minnesota
Retail
used registrations
in theMarket
state
increased
YTD '12
YTD '1
Minnesota Retail Used Light Vehicle Registrations
is a Used
list
of
key
trends
in the
Minnesota
retailin
12.4%
during
the first
11 increased
months
of 12.4%
2013
versus
vehicle
registrations
first 11 months Cars
of the year 298,001
9.9%
52.7%
51.5%
YTD thru 327,603
October
vehicle amarket:
year earlier.
Light
Trucks
267,392
307,904
15.2%
47.3%
48.5%
%
Change
Market
Share
Registrations
Below is a list of key trends in the Minnesota retail
MinnesotaYTD
Retail
Used
Light
Vehicle
Registrations
'12 TO '13 YTD '12 YTD '13
'12
YTD
'13
is a list
of
key
trends
in
the
Minnesota
retail
used vehicle market:
406,720
447,493
71.9%
70.4%
thru October
565,393YTD
635,507
12.4% 10.0%
Retail• market:
used
registrations
in thebelow,
state increased
As
shown
on the graph
the new vehicle TOTAL Detroit Three
ehicle
European
31,978
38,126
19.2%
5.7%
6.0%
%
Change
Market
Share
Registrations
• Retailthe
used
registrations
in
the
state
12.4% market
during
firstat11
2013
versus
grew
amonths
faster of
pace
than
the used Cars Japanese
298,001
327,603
9.9%
52.7%
51.5%
113,672
133,443
17.4%
20.1%
21.0%
'12
TO
'13
YTD
'12
YTD
'13
YTD
'12
YTD
'13
increased
12.4%
during
themarkets
first 11 months
a yearused
earlier.
market
in 2012,
while
both
were up this TOTAL
Light Trucks
267,392 13,023
307,904 16,445
15.2% 26.3%
47.3% 2.3%
48.5% 2.6%
Korean 565,393
635,507
12.4%
Retail
registrations
in the
state increased
of
2013
versus
a
year
earlier.
year.
12.4% during the first 11 months of 2013 versus
Detroit Three 298,001
406,720 327,603
447,493
10.0%
71.9% 51.5%
70.4%
Cars
9.9%
52.7%
• As
on the
graphthe
below,
new
shown
onshown
the graph
below,
newthe
vehicle
Source:31,978
Polk.
aAs
year
earlier.
European
38,126
19.2%
5.7%
6.0%
Light
Trucks
267,392
307,904
15.2%
47.3%
48.5%
vehicle
grew
at a vehicle
faster the
pace
than
• The
sharp
decline
inpace
new
sales
for 2009 Japanese
market
grew
at market
a faster
than
used
113,672
133,443
17.4%
20.1%
21.0%
usedwhile
market
in 2012,
whilewere
both
markets
Three
406,720
10.0%
has
led
tograph
short
supplies
of four
year old Detroit
market
in the
2012,
both
markets
up this
Korean
13,023 447,493
16,445
26.3% 71.9%
2.3% 70.4%
2.6%
As
shown
on
the
below,
the new
vehicle
were
up
this
year.
European
31,978
38,126
19.2%
5.7%
6.0%
year.
vehicles,
leading
to
the
6.1
point
drop
in
market
%
Change
in
Retail
New
and
Used
Vehicle
Markets
market grew at a faster pace than the used
Japanese
113,672
133,443
17.4%
20.1%
21.0%
• The sharp decline in new vehicle sales for
Source: Polk.
market share.
in 2012, while both markets were up this
2009
thru
2012,
and
YTD
’13
vs.
YTD
’12
Korean
13,023
16,445
26.3%
2.3%
2.6%
has led
to short
supplies
of four
year
The sharp2009
decline
in new
vehicle
sales
for 2009
year.
old
vehicles,
leading
to of
the 6.1
drop
in15.2%, Source:
30.0% Polk.
Used
registrations
were
up
has •led
to light
shorttruck
supplies
fourpoint
year
old
Source: Polk.
market
share.
25.0%
while
cars increased
9.9%.
vehicles,
leading
to
point sales
drop in
% Change in Retail New and Used Vehicle Markets
The
sharp
decline
in the
new6.1
vehicle
formarket
2009
20.0%
•
Used
light
truck
registrations
were
up
share.
15.0%
% Change
in Retail
NewYTD
and ’13
Usedvs.
Vehicle
has led to short supplies of four year old
2009
thru 2012,
and
YTDMarkets
’12
10.0%
15.2%, while
carswas
increased
9.9%.
•
Chevrolet
Impala
the
best-selling
model
in
2009
thru
2012,
and
YTD
’13
vs.
YTD
’12
vehicles, leading to the 6.1 point drop in market
5.0%
% Change in Retail New and Used Vehicle Markets
the
state
vehicles
years
old 15.2%,
or newer. 30.0% 0.0%
Used light
truckforregistrations
• Chevrolet
Impala two
waswere
the up
best-selling
share.
25.0%
while carsmodel
increased
in the 9.9%.
state for vehicles two years old 20.0% -5.0% 2009 thru 2012, and YTD ’13 vs. YTD ’12
-10.0%
ortruck
newer.
MINI,
Kia,
and Subaru
the largest
15.0%
30.0%
Used •light
registrations
were had
up 15.2%,
-15.0%
10.0%
Chevrolet
ImpalaKia,
was
theSubaru
best-selling
model
in 25.0% -20.0%
percentage
increases
in had
used
registrations
• increased
MINI,
and
the
largest
while
cars
9.9%.
5.0%
YTD '12 to
20.0%
the state
for
vehicles
two
years
newer.
during
the firstincreases
ten months
of or
2013.
'08 to '09
'09 to '10
'10 to '11
'11 to '12
percentage
in old
used
registrations
0.0%
YTD '13
15.0%
-5.0%
during the
firstthe
tenbest-selling
months of 2013.
Chevrolet Impala
was
model in 10.0%
New
-17.0%
4.2%
27.7%
7.9%
14.1%
5.0%
MINI,
and Subaru
largest -10.0%
he
state Kia,
for vehicles
two yearshad
old orthe
newer.
-15.0%
Used
-7.8%
5.0%
4.3%
0.0%
12.4%
0.0%
percentage increases in used registrations -5.0%
-20.0%
YTD '12 to
during
the
first
ten
months
of
2013.
'08 to '09
'09 to '10
'10 to '11
'11 to '12
-10.0%
MINI, Kia, and Subaru had the largest
YTD '13
-15.0%
Note: YTD new vehicle figures are thru November.
percentage increases in used registrations -20.0%
New
-17.0%
27.7%
14.1%
Used
are thru4.2%
October. Source:
Polk.7.9%
YTD '12 to
during the first ten months of 2013.
to '09
'09 5.0%
to '10
'10 4.3%
to '11
'11 0.0%
to '12
Used '08-7.8%
12.4%
YTD '13
NewNote: YTD
-17.0%
4.2% are thru27.7%
14.1%
new vehicle figures
November. Used7.9%
are thru October.
Source:
Polk.
Used
-7.8% new vehicle
5.0% figures4.3%
0.0%
12.4%
Note: YTD
are thru November.
Minnesota Retail Used Vehicle Registrations - Percent
Three Month
Moving
UsedChange
are thruinOctober.
Source:
Polk.Average (Nov ‘11 thru Oct ‘13)
Note: YTD
new
vehicle
figures
thru (Nov
November.
Minnesota Retail Used Vehicle Registrations - Percent
Change
in Three
Month
Movingare
Average
‘11 thru Oct ‘13)
Used are thru October. Source: Polk.
Oct-13
Sep-13
Aug-13
Oct-13
Oct-13
Jul-13
Sep-13
Sep-13
Jun-13
Aug-13
Aug-13
May-13
Jul-13
Jul-13
Apr-13
Jun-13
Jun-13
Mar-13
May-13
May-13
Feb-13
Apr-13
Apr-13
Jan-13
Mar-13
Mar-13
Dec-12
Feb-13
Feb-13
Nov-12
Jan-13
Jan-13
Oct-12
Dec-12
Dec-12
Sep-12
Nov-12
Nov-12
Aug-12
Oct-12
Oct-12
Jul-12
Sep-12
Sep-12
Jun-12
Aug-12
Aug-12
May-12
Jul-12
Jul-12
Apr-12
Jun-12
Jun-12
Mar-12
May-12
May-12
Feb-12
Apr-12
Apr-12
Jan-12
Dec-11
Feb-12
Mar-12
Mar-12
32
Source: Polk.
Feb-12
Jan-12
Jan-12
Dec-11
Dec-11
Nov-11
Nov-11
Nov-11
60.0%
esota Retail50.0%
Used Vehicle Registrations - Percent Change in Three Month Moving Average (Nov ‘11 thru Oct ‘13)
40.0%
30.0%
esota Retail 20.0%
Used Vehicle Registrations - Percent Change in Three Month Moving Average (Nov ‘11 thru Oct ‘13)
60.0%
10.0%
50.0%
0.0%
40.0%
-10.0%
60.0%
30.0%
-20.0%
50.0%
20.0%
-30.0%
40.0%
10.0%
30.0%
0.0%
20.0%
-10.0%
10.0%
-20.0%
0.0%
-30.0%
Source: Polk.
-10.0%
Source:
Polk.
-20.0%
-30.0%
www.mada.org
Tight supplies of 2009 model year vehicles led to the 6.1 market share point decline for four year old cars and
rucks during the first ten months of 2013 (see graph below). Three year old or newer share increased. The
ecovery in new vehicle sales during the past three years will lead to increased supplies of nearly new used
USEDinVEHICLE
vehicles
2014.SALES BY AGE
Improving New Vehicle Market Gives a Boost to Newer Used Vehicles
Source:
Polk.
Four-year-old
used vehicle market tumbles
Tight supplies of 2009 model year vehicles led to the 6.1 market share point decline for four year old cars and trucks during the
first ten months of 2013 (see graph below). Three year old or newer share increased. The recovery in new vehicle sales during
the past three years will lead to increased supplies of nearly new used vehicles in 2014. Source: Polk
Change in Market Share by Vehicle Age (vehicles six years old or newer)
YTD 2013 thru October vs. YTD 2012
Change in Market Share by Vehicle Age (vehicles six-years-old or newer)
YTD 2013 thru October vs. YTD 2012
4.0
2.9
Change in market share
2.0
3.4
0.5
0.0
-0.8
-2.0
-4.0
-6.0
-6.1
-8.0
6 years old
MADA BC Ad 1-3h 5_11.pdf
1
5/27/11
5 years old
4 years old
3 years old
2 yrs old or
newer
11:04 AM
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• Hundreds of options
• Competive pricing
• Fast turnaround
• Great customer service with
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We can
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To place your order, please contact Reggie Klein
Phone: 651-789-2933 or 800-652-9029
Email: reggie@mada.org
www.mada.org
33
34
www.mada.org
Ford F-Series is Best Seller for Three to Five Year Old Vehicles
Impala was the two year old or newer leader
TOP SELLING
MODELS
The
graphs
below show top selling models in two age categories: vehicles two years old or newer, and those
three
five years
Source:
Ford to
F-Series
isold.
Best
SellerPolk.
for Three to Five Year Old Vehicles
Impala was the two year old or newer leader
The graphs below show top selling models in two age categories: vehicles two years old or newer, and those three to five years
Polk.
old.
TopSource:
25 Selling
Models (Two years old or newer)
Top 25 Selling Models (3 to 5 year old vehicles)
Used retail registrations, YTD 2013 thru October
Top 25 Selling Models (Two years old or newer)
Used retail registrations, YTD 2013 thru October
5550
Chevrolet Impala
Used retail registrations, YTD 2013 thru October
Top 25 Selling Models (3 to 5 year old vehicles)
Used retail registrations, YTD 2013 thru October
Ford F Series
3536
3494
Chevrolet Silverado
2675
Chevrolet Silverado
Chevrolet Malibu
2638
Chevrolet Impala
Ford Fusion
2580
Ford Fusion
1948
1935
3030
Toyota Camry
2145
Toyota Corolla
Ford Escape
2015
Toyota Camry
1804
Chevrolet Equinox
1939
Toyota RAV4
1743
Chevrolet Cruze
1883
Chrysler Town & Country
1729
Ford F Series
1875
Dodge Caravan
1606
Dodge Caravan
1631
Chevrolet Malibu
1605
Chevrolet Traverse
1607
Ford Escape
1546
Ford Focus
1516
Honda Civic
1532
Ford Edge
1441
Honda Accord
1460
Hyundai Sonata
1413
Ford Edge
1272
Chrysler Town & Country
1339
Toyota Prius
1213
Nissan Altima
1202
Dodge Ram
1195
Chevrolet Captiva
1094
Ford Focus
1172
Kia Sorento
1023
Nissan Altima
1102
Dodge Ram
912
GMC Sierra
1078
Toyota Corolla
888
Chevrolet Equinox
1025
Volkswagen Jetta
851
Pontiac G6
935
Ford Explorer
848
Chevrolet Cobalt
925
GMC Acadia
838
Honda CR-V
921
Chrysler 200
836
Volkswagen Jetta
860
Honda CR-V
765
Buick Enclave
846
0
www.mada.org
2000
4000
6000
0
2000
4000
35
The graph below shows the percent change in retail used light vehicle registrations during the first ten months
of 2013 versus the same period a year earlier for the top 30 selling brands in the state. Kia had the largest
increase, up 38.4%. Source: Polk.
BRAND SCOREBOARD
MINI, Kia, and Subaru Post Largest Percentage Gains
All of the top 30 brands post increases
The graph below shows the percent change in retail used light vehicle registrations during the first ten months of 2013 versus the
same period a year earlier
for the Change
top 30 selling
brands inRetail
the state.
KiaLight
had the
largestRegistrations
increase, up 38.4%. Source: Polk.
Percent
in Minnesota
Used
Vehicle
YTD 2013
thru October
vs. Light
YearVehicle
EarlierRegistrations
Percent Change
in Minnesota
Retail Used
YTD 2013 thru October vs. Year Earlier
31.0%
Kia
27.9%
Subaru
24.4%
Hyundai
23.0%
Volkswagen
21.8%
BMW
Nissan
20.8%
Mercedes
20.7%
Toyota
20.6%
Mazda
20.3%
Land Rover
20.2%
19.3%
Audi
18.6%
Lexus
16.5%
GMC
Suzuki
13.6%
Ford
13.6%
Honda
12.6%
Chevrolet
12.4%
Jeep
12.3%
Infiniti
11.6%
Chrysler
11.6%
11.0%
Lincoln
10.3%
Mitsubishi
Jaguar
8.9%
Dodge
8.9%
7.9%
Acura
Cadillac
7.0%
Buick
7.0%
Volvo
6.7%
5.8%
Porsche
-25.0%
36
38.4%
MINI
-15.0%
-5.0%
5.0%
15.0%
25.0%
35.0%
45.0%
www.mada.org
DEALERSHIP SHOWCASE
LUTHER BURNSVILLE HYUNDAI
A year ago, just about anyone in the auto business would’ve
looked at Hyundai’s extraordinary success worldwide—then
plotted local auto dealers on a Twin Cities map—and said
something like, “Whoa! No Hyundai dealer in Burnsville???”
That all changed with the opening of Luther Burnsville
Hyundai, right on Buck Hill Road just south of Burnsville
Center.
Not only is the location prime, but management (Charlie
Rassouli and Dean Dreckman) had the opportunity to handpick their sales associates. They scouted the highest-rated
salespeople with a proven track record of being customeroriented, then selected only those with the passion and drive
to find customers exactly what they are looking for.
“This was an incredible opportunity,” said Rassouli, “and
we wanted to make certain that from the moment we opened
our doors everything went just right—the way customers
expected it to be.”
Rassouli and Dreckman repeatedly have defined their passion
to be the “best of the best.”
“Helping people find their way,” is a key phrase Rassouli
uses when working with his sales associates.
Dreckman said, “The number one priority is to fit every
person with their perfect car. We want customers to leave
happy, knowing they made the best decision about both the
vehicle and where to buy it.”
All of this harkens back to foundations of the Luther family
of dealerships. In 1952, Rudy Luther opened his first location
in downtown Minneapolis based on three touchstones:
respect for customers, high standards of customer service,
and fair pricing on every vehicle sold.
“The number one priority is to fit every
person with their perfect car.”
Concerning bricks and mortar, the physical design of
Burnsville Hyundai is intriguing and unlike most auto
dealerships. When determining the layout of their new
dealership, management decided to do something a little
different. They asked the advice of home builders. The
result is an “open floor plan” concept, creating an inviting
environment with tremendous fluidity.
There’s also an outside canopy for customers to drive under
when arriving at the dealership. This offers protection from
the elements, the feeling of a destination, and creates a sense
of welcome.
Family owned and community based, Luther Burnsville
Hyundai intends to set and maintain high standards through
superb location, wildly attractive vehicles, and unmatched
customer relations. Dreckman said, “We are well aware of
the old saying about only getting one chance to make a first
impression.”
Rassouli and Dreckman are among a very few in auto
dealership management who demonstrate their availability
by providing all customers with their direct phone number to
answer any questions.
www.mada.org
37
Industry Spotlight
Stewart Mills
Mills Automotive
He comes from a storied northern Minnesota family steeped in a rich tradition
of retail and auto sales. But Stewart Mills is the first to admit that he is a nontraditional candidate for office. After a long career in the auto business, Stewart
went to work in the family’s other retail enterprise, Fleet Farm. There he was
content working on growing different aspects of the business and was most
recently finding satisfaction in the firearms department. It was from that place
that he took offense to comments on gun control made by Congressman Rick
Nolan (D), who returned to Congress after a 32 year hiatus to
defeat Freshman Congressman Chip Cravaack (R). His YouTube
response to Nolan’s comments caught the attention of many. Now at
age 41, this passionate young man is making his first run for public
office. And as MADA Executive Vice President Scott Lambert
discovered when he sat down with him to discuss dealerships and
politics, his passion on issues is contagious.
How many hits does your YouTube video have?
Just over 300,000 the last time I looked.
How did this turn into a run for Congress?
My sister was driving in the Twin Cities
and called to ask me “Is Dad running for
Congress?” because she saw a Stewart for
Governor bumper sticker.
You were unaware of the draft movement?
Yes, there were some 2nd Amendment Rights
groups that were promoting me for office.
Are your Dad and family supportive of this
endeavor?
Yes. Very. My Dad is very supportive and
believes the race is winnable. The rest of my
family, including my sister, and especially my
wife, Heather, and kids have been great.
The YouTube video is a statement about
Gun Control. Are there any other issues
driving your candidacy?
I am the administrator of the health plan for
Mills Fleet Farm and Mills Automotive and I
am uniquely aware of the problems Obamacare
would bring. I am also very concerned about
the nation’s $17 trillion debt and the $250
billion it takes to service the debt each year.
Government stimulus programs can’t take us
out of this hole.
Tell me about your experience in the Auto
business.
I started at the age of 14 as a reconditioning
technician, which meant mainly that I would
38
fix up and buff-up the trade-in vehicles. After
three summers of that I spent two more as a
Partsman.
Did you enjoy that?
It’s a lot of sorting and stacking, but I really
enjoyed the part when I’d have to go to a
salvage yard and pick through it looking for a
specific used part.
What was next?
I worked sales while I attended Northwoods
University and got a degree in Business
Administration. When I graduated I went
to work full time in the family business and
facilitated the move into our reconstructed
Ford store in Brainerd.
I remember when that store was built; it was
somewhat controversial because the service
area was considered way too big for the
market.
I know other dealers were skeptical of the size
of the store, but we understood the growth
the area was going to see and the markets we
could develop.
But you moved over to the Fleet Farm side
of your business?
I gravitated over gradually. I love the creativity
that the retail business allows, and there are
more opportunities for that at Fleet Farm.
My younger sister, Marisa, focuses on the
automotive side now and she is much better at
it than I ever was.
Do you prefer traditional retail over the car
business?
That’s difficult because they’re such different
businesses. At Fleet Farm if we have trouble
with a supplier we generally have alternatives
to look at. That’s harder to do in a franchise
system.
Let’s get back to politics. The 8th
Congressional District encompasses the
Iron Range and is considered a DFL
stronghold. How can you win?
For one thing the District is trending more
Republican every year. Also, I think I’m a
better fit for the District than the incumbent.
I am pro 2nd Amendment rights, pro-life and
I am an experienced job creator. Finally, I’m
a non-traditional Republican and I think I can
reach Independents.
Non-traditional?
I’m not going to cut my hair.
So what is really driving you to run for
office?
When I was growing up my dad would invoke
the Hunting Camp Doctrine.
Which was?
If you complain about it, you get the job to
fix it.
So who did produce those bumper stickers?
I really don’t know.
www.mada.org
Customers
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