Luther Burnsville Volkswagen James Mercer Luther
Transcription
Luther Burnsville Volkswagen James Mercer Luther
Inside this issue: Dealership Showcase Luther Burnsville Volkswagen Industry Spotlight James Mercer The Diesel Debacle Summer 2014 www.mada.org Volume 10 • Issue 4 IN THIS ISSUE 8 Cover: The Diesel Debacle 33 Dealership Showcase: Luther Burnsville Volkswagen 34 Industry Spotlight: James Mercer Table of Contents 2014 Executive Committee President Morrie Wagener, Morries Automotive President Elect Greg House, House Chevrolet Treasurer Mike Saxon, Inver Grove Ford Lincoln Secretary Rick Jensen, Jensen Motors, Inc. Immediate Past President Steve Brimhall, Minnesota Motor Company Executive Vice President Scott Lambert EDITORIAL STAFF Scott Lambert, Publisher Ginger Lemke, Editor MADA Minutes AYES Tech Competition.............................4 Kjell Bergh Award.......................................4 Board Meeting Recap.................................5 On the Cover The Diesel Debacle....................................8 MADA News Cars Could Help the Poor.........................14 Dealers Are Good Neighbors Good News...............................................16 Minnesota Auto Outlook Comprehensive New & Used Vehicle Information on Minnesota’s Automotive Market.......................................................19 Dealership Showcase Luther Burnsville Volkswagen...................33 Industry Spotlight James Mercer...........................................34 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 On the Cover: Unhappy with the status of Diesel Fuel in the State of Minnesota, MADA Executive Vice President Scott Lambert lays out the empty state of affairs in this week’s cover story. Data Source Information for Minnesota Auto Outlook on pages 19 - 32. 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 Advertising Directory Blue Cross Blue Shield MN............................. 25 CVR............................................................. 7 CliftonLarsonAllen..................................... 18 MADA Business Cards.............................. 29 MADA Direct Mail........................................ 6 MADA Endorsed Services and Vendors...... 6 Protective.....................................Back Cover Reliable Plus.............................................. 25 Schmit Towing........................................... 25 Super America........................................... 15 StarTribune.......................Back Inside Cover Wings Financial................Inside Front Cover WIPFLI LLP............................................... 30 Visible Customer....................................... 15 3 MINUTES AYES Tech Competitors in New York A St. Cloud team, supported by MADA, advanced to the national competition in New York City April 23. Apollo High School students Ethan Vanlonden and Theodore Pillsbury, who won the Minnesota AYES high school competition, went on to compete against 29 other U.S. teams at the National Automotive Technology Competition. Instructor Byron Byker led his student team to an 11th place finish at the competition. From left, Ethan Vanlonden and Theodore Pillsbury competed in the National Automotive Technology Competition, supported by MADA. In the weeks prior to the contest, the Minnesota team spent much of their spare time preparing for the contest, which is a test of skill, a measure of knowledge, and a race against the clock, all rolled into one. The first day involved problem solving at workstations that mimic discrete systems on vehicles. The second day’s competition was to diagnose and repair problems on the 2014 Lexus RX 350. Not only did the students have to repair the car, but they had to document the concern, cause and correction on the repair order, as if the vehicle was a customer’s car at a dealership. Both seniors plan to continue in the automotive field. Pillsbury, a technician at Gilleland Chevrolet’s Quick Lube, plans to continue his automotive education. Ethan Vanlonden plans to focus his engineering major on Vehicle Wind Tunnel testing. Kjell Bergh Award Kjell Bergh of Borton Volvo has received the 2014 International Citizen award from Twin Cities Business for building bridges between communities, at home and abroad. Bergh is a member of the Consular Corps of Miami and the Minnesota Consular Corps. In 1995 he hosted the Royal family of Norway on safari in Tanzania, East Africa. He also organized and participated in an official visit by His Majesty King Harald and Her Majesty Queen Sonja to the Tanzanian President, Benjamin Mkapa. In 2000, he was appointed Honorary Consul of the United Republic of Tanzania. This nationally recognized competition--which was developed in 1990 by the Greater New York Automobile Dealers Association to help curb the shortage of qualified automotive technicians and raise the level of vocational/technical education standards in the public school system--is celebrating its 25th year in 2014 as the Bergh is active in civic and charitable organizations in preeminent competition of its kind. each of his “three home countries”—the United States, Norway and Tanzania. 4 www.mada.org Board Meeting Recap From left, members of the MADA Executive Committee: Front row: Steve Brimhall, immediate past president; Mike Saxon, treasurer; Morrie Wagener, president. Row 2: Rick Jensen, secretary; Scott Lambert, executive vice president; and Greg House, president-elect. The MADA Board of Directors met June 4, 2014 at the St Paul Hotel for their annual summer meeting. Among the topics discussed by the board were: • an upcoming Vendor Appreciation Event to recognize sponsors of MADA events and programs; • setting the Annual Meeting date for Dec. 5, 2014 at the DoubleTree by Hilton Bloomington and NADA Brunch Jan. 25 in San Francisco; • reviewing the recent membership drive which achieved 100% of Minnesota dealerships. President Morrie Wagener thanked Scott Lambert for reports on legislative, legal, and program developments. From left, members of the MADA Board met at the St Paul Hotel for the Annual Summer meeting. Front row: Steve Brimhall, immediate past president; Michael Saxon, treasurer; Dave Buerkle, foundation chairman; Cindy Wagener Robin, AIADA Director. Row 2: Mark Juettner; Chad Murphy; Morrie Wagener, MADA president; Peter Hasselquist; Michael Stanzak. Row 3: Paul Harpel; Mike Gallagher, GMADA president; Rick Jensen, MADA secretary; Greg House, MADA president-elect; Row 4: Scott Lambert, executive vice president; Steve Whitaker, GMADA president-elect; Bob Nuss, chairman MADA Truck Division. CHOOSE YOUR NEWS The MADA email subscription helps to filter just the updates you can use: • Industry Updates • Legislative Bulletin • Legal Updates • Fraud Alerts • People News • Training News • Apparel and Promotional Specials • Direct to inbox Magazine and MADA News Can’t Decide? Sign up for MADA Shorts, the emailed single-page of short summaries with links to more information. Go to www.mada.org/news/sign-up-for-email-updates to subscribe or change your preferences. www.mada.org 5 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 6 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 7 The Diesel Debacle Is it a debacle or a disaster? It depends on what side of the ownership question you are on. 8 www.mada.org Scott Lambert Executive Vice President Amber Backhaus Director of Government Affairs • If you own a refining facility, gas station, truck stop, trucking company or dealership, it’s a debacle. Which means it’s a bad mess, not of your own making, but recoverable. • If you own a diesel vehicle, especially an older diesel vehicle, it’s probably closer to a disaster. As values plunge for older diesels that are not rated for this mandated fuel, owners will have to come to grips with the fact that the value lost is unrecoverable. B-10 is not rated for use in any vehicles 2011 or older. For the most part it’s also not rated for diesel But in Minnesota, it’s the only diesel fuel sold sedans from 2012 to present day. But in six months of the year. Minnesota, it’s the only diesel fuel sold six months of the year. If you own one of these vehicles, will it choke and die on the road as you leave the gas station? No. Are you going to suffer long term damage? Probably. Is this long term damage avoidable? Maybe. If you don’t operate it in cold or hot weather, if you don’t let it sit too long, and if you change your oil with the precision of a NASCAR pit team, you have a better chance of avoiding problems. But for those hard-working Minnesotans who leave gassed-up trucks at cabins, fill their tanks in April* and can’t always get their vehicle in for an oil change every 3,000 miles, it’s more of a problem. *The average statewide low temperature in April 2014 was 32 degrees. www.mada.org 9 The Diesel Debacle Is your used diesel vehicle worth a lot less? Absolutely. What brought us to this sorry state of affairs? Greed, arrogance and stupidity are all at the forefront. Soybean and agricultural policy makers pushed for increased bio-fuel additives for well over a decade. And, while they were slowed down for a bit, no one really wanted to tell them that it was a bad idea to promote a fuel that vehicles weren’t ready for. This is Minnesota, after all. Farmers and farm communities hold considerable economic and political power. One would have hoped they would have used it wisely. Sadly, they were blinded by the increase in soybean prices that their policy was driving. ...new vehicle models were not ready and that tens of Looming problems were simply thousands of legacy vehicles already on the road would plowed over. likewise have problems. Throughout the debate, motor vehicle manufacturers and dealers were of single voice on the issue: if the fuel works in our vehicles, that’s great. But, if the fuel is not rated for the vehicles--or if it affects a vehicle’s warranty--then it’s a problem. As we approach statutory deadlines for this policy, the factories were adamant that many of their new vehicle models were not ready and that tens of thousands of legacy vehicles already on the road would likewise have problems. What part of “this fuel doesn’t work for these vehicles” policymakers failed to understand is one of the perplexing questions in this unfolding economic tragedy. The state government, whose primary duty in this instance is to ensure a reliable fuel supply, didn’t just turn a deaf ear to consumer concerns; they actively encouraged this destructive policy. Governor Dayton’s Bio-Diesel Task Force, (made up of farm groups, agriculture department personnel, refiners, truckers, and oil jobbers, all housed and staffed by the state Department of Agriculture) which was charged with the implementation of this nationally unique policy, actively ignored pleadings from the new car industry. The economic damage to consumers was not their concern as long as their interests were being well served. On the eve of this new mandate’s effective date, the Bio-Diesel Task Force discovered to their horror that Minnesota law was going to require appropriate 10 www.mada.org signage at gas stations to inform consumers about the content of fuel they are pumping into their car or truck. This unprecedented declaration to consumers could not stand. So, as you would expect, this panel of unelected officials without consumer representation passed a motion asking the Director of Weights and Measures to ignore state law and use FTC-required pump labels (approximately 3 by 3 inches) at Minnesota gas stations until they can legitimize their cover-up with a new law next year. Throughout this debate, appeals by MADA and the manufacturers to the Governor’s ...service managers can expect reactions ranging office as well as the Commissioner of from shock to dismay to anger. Agriculture were dismissed or ignored. Meanwhile, forestry and mining interests took a prudent “don’t put that stuff in our expensive equipment” tack and wisely gained their own exemptions from the mandate. Dealers and manufacturers sponsored legislation to delay the mandate, but DFL House legislative leaders shuttled their bill to the agriculture committee where it stayed in the Chairman’s bottom drawer. The Senate held one hearing in the Commerce Committee but, with the Senate Agriculture Committee ready to also swallow the bill, it was eventually dropped. Ordinary consumers were left unheard, uncared for, ignored and with no seat at the table. When these customers end up in a dealer’s service bay and are delivered the bad news about their precious and expensive vehicles, service managers can expect reactions ranging from shock to dismay to anger. And remember, we’re moving to B-20 in just four short years. www.mada.org 11 ACTION: The Minnesota 1st state in the nation to pass a biodiesel content mandate – at 2% Diesel Debacle 2002 OTHER NOTES: Trucking fleets primary focus; Permanent exemptions provided for mining, railroads, and nuclear facilities PRODUCTION: 15 million gallons of biodiesel produced nationally ACTION: 9•29•05 2% mandate became effective ACTION: 12•23•05 Governor suspends mandate for 21-days due to fuel quality issues ACTION: Governor Pawlenty and legislature add staggered increases from 5-20% OTHER NOTES: Impact on trucking fleets still the main focus; Timber added to exemptions, which became temporary 2008 ACTION: PRODUCTION: 2009 700 million gallons of biodiesel produced nationally ACTION: MN mandate increases to 5% biodiesel year-round Manufacturers begin to introduce more diesel passenger vehicles into the US market in response to new federal CAFÉ standards 5•1•09 ACTION: ACTION: Alliance of Automotive Manufacturers meets with top Minnesota officials to voice concerns about non-compatible vehicles Fall 2012 2012 Dayton Administration defers increasing to B10 due to supply issues OTHER NOTES: Exemptions expanded and extended until 2015 ACTION: 2013 Dayton Administration authorizes increase to B10 PRODUCTION: 1.8 BILLION gallons of biodiesel produced nationally ACTION: Legislature tweaks biodiesel statute OTHER NOTES: Prospect for B20 delayed until 2018; additional exemptions granted and all made permanent 12 2014 7•1•14 ACTION: B10 only diesel fuel allowed to be sold at retail in MN www.mada.org What to Watch for When Using B10 in Non Approved Vehicles: Biodiesel can attract water and also deteriorate with age. Small amounts of biodiesel can get into the engine oil, but unlike petroleum diesel, it does not evaporate over time. This can cause the oil level in the engine to rise and can affect the quality of the oil. With B10, be on the lookout for: Vehicle stalling and poor performance which may Engine damage – or even failure – which may be caused by biodiesel be caused by clogging of fuel filter by soaps formed by biodiesel components such as products of biodiesel aging or production contaminants. that has not evaporated after it enters the engine oil during particulate trap regeneration. The oil becomes diluted, which then forms sludge as the biodiesel degrades in the engine oil and starves the engine bearings of lubrication. With B10 the mandated fuel on the market, customers driving non-rated vehicles should take the following into consideration: • Routinely check the engine oil to ensure the level is not getting higher. • Biodiesel fuel quality can degrade with time. More frequent refueling provides the best opportunity to ensure a supply of fresh fuel. • Storage at hot ambient temperatures may accelerate biodiesel degradation. • At colder temperatures, B10 can gel much faster than other diesel fuel. From left to right: new filter; a filter at 10,000 miles using conventional diesel; a filter at 9,000 miles using greater than 5% biodiesel. Premature fuel filter clogging and more frequent fuel filter service which may be caused by the switch between using conventional diesel (which will be available from October – March) and B10, which will be the only fuel available from April-September. B10 Sales Schedule: Diesel cars and light-duty pickups model year 2011 and earlier are not rated to accept biodiesel blends of more than 5%. Beginning July 1, 2014, 10% biodiesel (B10) will be the only fuel available for sale in Minnesota’s retail marketplace during certain months. Under Minnesota’s bio-diesel Mandate: B10 is the only diesel fuel you can purchase • July 1 – September 30, 2014 • April 1 – September 30, through 2017 • April 1 – September 30, 2018 and each year thereafter, B20 will be the new mandated diesel fuel MINNESOTA AUTOMOBILE DEALERS ASSOCIATION 200 Lothenbach Ave | West St. Paul, MN | 800.652.9029 | 651.291.2400 | www.mada.org Scott Lambert | lambert@mada.org | Amber Backhaus | amber@mada.org MADA NEWS Cars Could Help the Poor For many low-income families, automobiles are a key to a better life Most Americans are driving less. After adjustment for population growth, miles driven per year have dropped 8.9% since peaking in 2005. But a new study conducted by the Urban Institute and the Universities of California and Maryland suggests there is at least one group that should drive more, not less: low-income residents of high-poverty neighborhoods. ...members of a subgroup who had access to a car were twice as likely to find a job Cars are expensive to purchase and to maintain, even more so for families with severely limited resources. A low-income household that is somehow able, inclined, or afforded the opportunity to buy a car might also do many other things to get ahead. Motivation, opportunity, or both could be key.” Cars may not be the emblem of freedom and status The study examined neighborhood quality, that they were 30 years ago. However, even as highly neighborhood satisfaction and employment outcomes educated millennials and baby boomers fantasize about for almost 12,000 families receiving federal housing car-free cities, car access is still indispensable for many vouchers in 10 large U.S. cities. The study concluded families seeking safety and economic security. that voucher recipients with cars tended to live and remain in better neighborhoods—places with less poverty, stronger housing markets and ...car access is still indispensable for many families lower health risks. seeking safety and economic security. Cars also mean better employment outcomes. In one major study, members of a subgroup who had access to a car were twice as likely to find a job and four times as likely to remain employed as those without a car. Even though many of us believe that driving is inherently superior to public transit, the study concludes that the importance of automobiles arises because public transit systems in most metropolitan areas are slow, inconvenient, and lack sufficient metropolitanwide coverage to rival the automobile. According to one of the leaders of the study, Rolf Pendall, “More research is needed to determine if the relationship is casual or associative, that is, whether the car is the catalyst or if there is something deeper at work, of which the car is simply one manifestation. 14 www.mada.org BUY FUEL ? WANT FUEL DISCOUNTS ? NEED CONTROL? C M Y CM SA FLEET smart answer! SAVE 10¢ a gallon for the first 90 days Then continue to save 5¢ a gallon with the MADA discount Call Lisa 651-403-3267 Start SAVING Today MY CY CMY K SUPERAMERICA.com 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 safleet@superamerica.com 5) Measure 3) Design 4) Orchestrate Email Postal Phone 15 Dealers Are Good Neighbors MADA salutes Minnesota new vehicle dealerships and dealership employees who make their communities a better place to live. Some services include durable medical equipment, communication devices and respite care for full-time family caregivers. Kolar Toyota became title sponsor of the event in 2007. Since their involvement, more than $1,000,000 has been raised for the cause. The dealership is actively involved with the year-round planning of the tournament. Food Drives 2014 Kolar Toyota ALS Walleye Tournament The 19th Annual ALS Walleye Tournament was a huge success with 162 two-person teams fishing for record weights for a total of six fish. Even though the teams battled rainy breezy conditions, a whopping $171,525 was raised. All proceeds from the event go to fight Amyotrophic Lateral Sclerosis (ALS), also known as Lou Gehrig’s Disease. The ALS Association, MN/ND/SD Chapter provides services at no charge to individuals with ALS. 16 Brandl Motors in Little Falls hosted a test drive fundraiser for the National FFA Organization in support of local FFA chapter leadership programs. A $400 donation was made from the test drives in the RAM Truck brand vehicles. Luther Automotive’s fourth annual “Drive to Serve” event partnered with Coon Rapids-based Feed My Starving Children. Volunteers packaged 723,000 meals for children in Haiti. To assist with the needy in Minnesota, Luther Auto partnered with the Emergency Foodshelf Network, which coordinated food collection efforts at 15 Luther stores and at the food packaging event. www.mada.org Scholarships It’s baseball time again Chevy Youth Baseball is A Perham high school student was awarded a $5,000 scholarship sponsored by the Heartland Chevy Dealer’s Scholarship Program. The Heartland Chevy Dealers Local Marketing Association is comprised of 20 Chevy Dealerships across North Dakota and Minnesota. Send YOUR good news to Sandy at brom@mada.org a grassroots initiative that establishes a positive relationship between local dealers and the communities they serve. Chevy dealers sponsor their local youth baseball leagues as part of Chevrolet’s nationwide commitment to support youth sports. Lewiston Auto is sponsoring the Lewiston Youth Baseball program; Dan Welle Chevrolet Buick is partnering with the Sauk Centre Youth Baseball Leagues; Mike Motors is partnering with the Ely Little League in Ely; and Papik Motors is sponsoring Luverne Community Education. Each league can be awarded up to a $500 contribution from test drives plus equipment such as bags, batting tees, catcher’s gear, water bottles and t-shirts. A.M. Maus sponsored the Dodge Booster Club Fundraiser for the Kimball Area High School students and families. The Dodge brand contributed $20 for each test drive and $4,640 was raised. www.mada.org 17 ©2014 CliftonLarsonAllen LLP ENVISION THE FUTURE Plan for a new generation of owners under the guidance of experienced professionals who understand your dealership. Audit 18 Tax Consulting Outsourcing Wealth Advisory Investment advisory services are offered through CliftonLarsonAllen Wealth Advisors, LLC, an SEC-registered investment advisor. 612-376-4500 www.mada.org CLAconnect.com/dealerships New New Vehicle Market is UpisSlightly in First FourFour Months of ‘14 Vehicle Market Up Slightly in First Months of ‘14 Small improvement predicted for entire year year Small improvement predicted for entire Comprehensive Information on the Minnesota Automotive Market Below isBelow a list of 10list key developments in the Minnesota new vehicle market: is a of trends 10 key and trends and developments in the Minnesota new vehicle market: MINNESOTA AUTO OUTLOOK 1. Minnesota new retail light vehicle registrations were basically flat during the first four of thisof this 1. Minnesota new retail light vehicle registrations were basically flat during the firstmonths four months year versus a year earlier, while the National market was up 5.4%. (Note: April 2014 figures were year versus a year earlier, while the National market was up 5.4%. (Note: April 2014 figures were estimated). estimated). FORECAST 2. Auto Outlook’s annual forecast for 2014 new retail light vehicle registrations: 210,500 units, up 3.4% 2. AutoMarket Outlook’s forecastin forFirst 2014Four new retail light vehicle Newfrom Vehicle isannual Up Slightly Months of ‘14 registrations: 210,500 units, up 3.4% 2013. from 2013. Small improvement predicted for entire year 3. Light truck market share increased from 58.6% during during the firstthe four months 2013 to 62.4% this year. market increased 58.6% first four months 2013 to 62.4% this year. Below is a3.listLight of 10 truck key trends andshare developments in from the Minnesota new vehicle market: 4. Registrations for Japanese brands brands were upwere 8% up so far this year, industry was flat. flat. 4. Registrations Japanese so far thiswhile year,the while industry 1. Minnesota new retailforlight vehicle registrations were8% basically flat during the firstthe four monthswas of this year 5. Theversus vehicle market hasthe come long way from depths of April the recession. Registrations in the in the a year while National market was upthe 5.4%. (Note: wereRegistrations estimated). 5.newThe newearlier, vehicle market hasacome a long way from the depths of2014 the figures recession. First Quarter of this year were 44,475 units, up more than 18,000 compared to the First Quarter of First Quarter of this year were 44,475 units, up more than 18,000 compared to the First Quarter of 2. Auto Outlook’s annual forecast for 2014 new retail light vehicle registrations: 210,500 units, up 3.4% from 2009. 2009. 2013. 6. Alternative powertrain (hybrid (hybrid and electric) marketmarket share was 2.4% March of this of year, from from 6. Alternative powertrain and electric) share wasthru 2.4% thru March this down year, down 3. truck market share increased from 58.6% during the first four months 2013 to 62.4% this year. lastLight year. last year. Registrations for Japanese upCompact 8%are so Compact farSUV, this year, while the industry flat. Standard 7. 4. Three segments in brands the state Full Size Pickup, andwas Standard Mid Size 7. biggest Three biggest segments inwere theare state SUV, Full Size Pickup, and MidCar. Size Car. The market has come aincreases long way from theindepths of the recession. Registrations in this the of First 8. 5. Brands withvehicle thewith largest percentage in registrations during the firstthe four months of year: 8. new Brands the largest percentage increases registrations during first four months this year: Quarter of this year were 44,475 units, up more than 18,000 compared to the First Quarter of 2009. Mitsubishi, Jeep, Acura, and Ram. five in market share were Toyota, Mitsubishi, Jeep, Subaru, Acura, Subaru, andTop Ram. Top five in market shareFord, were Chevrolet, Ford, Chevrolet, Toyota, Honda, and Nissan. Honda, and Nissan. 6. Alternative powertrain (hybrid and electric) market share was 2.4% thru March of this year, down from last 9. Theyear. unemployment rate hasrate declined from a from high of 9% in of 2009ofto 4.5% AprilinofApril thisof this 9.state The state unemployment has declined a high of March 9% in March 2009 to in 4.5% year. 7. Threeyear. biggest segments in the state are Compact SUV, Full Size Pickup, and Standard Mid Size Car. 10. fivethe selling cars inmarket: state market: Ford Fusion, Camry, Fordfour Focus, Subaru Outback, 10. 8. TopBrands fiveTop selling cars in state Ford Fusion, ToyotaToyota Camry, Ford Subaru Outback, and and with largest percentage increases in registrations during the Focus, first months of this year: Chevrolet Cruze. Top five light trucks: Ford F-Series, Chevrolet Silverado, Ram,Escape, Ford Escape, Chevrolet Cruze. Top five light trucks: Ford F-Series, Chevrolet Silverado, Ram, Ford and Mitsubishi, Jeep, Acura, Subaru, and Ram. Top five in market share were Ford, Chevrolet, Toyota, Honda, and Chevrolet Chevrolet EquinoxEquinox and Nissan. 9. The state unemployment rate has declined from a high of 9% in March of 2009 to 4.5% in April of this year. 10.Top five selling cars in state market: Ford Fusion, Toyota Camry, Ford Focus, Subaru Outback, and Chevrolet Cruze. Top five light trucks: Ford F-Series, Chevrolet Silverado, Ram, Ford Escape, and Chevrolet Equinox Annual State New Vehicle Annual Trend in Trend State in New Vehicle Market Market MarketMarket ReviewReview Annual Trend in State New Vehicle Market New light vehicle registrations New light vehicle registrations 250,000 200,000 150,000 100,000 50,000 0 Market Review 250,000 200,000 203,604 210,500 210,500 203,604 183,863 183,863 170,413 150,000 170,413 154,312 154,312 133,482 100,000 133,482 128,088 128,088 50,000 0 2008 2008 2009 2010 2011 2012 2013 2014 2009 2010 2011 2012 2013 2014 Forecast Forecast Source: Polk. Source: Polk. Source: Polk. www.mada.org TOTAL Car TOTAL '13'14 YTD Chg. Mkt. Share YTD '13 YTD YTD %'14 Chg. %Mkt. Share thru April thru April* '13 to '14 thru April thru April* '13 to '14 YTD '14 YTD '14 Car Light Truck Light Truck Detroit Three Detroit Three European European Japanese Japanese Korean Korean 64,653 26,749 37,904 35,001 4,333 20,716 4,603 64,653 65,141 65,141 0.8% 0.8% 26,749 24,517 37,904 40,624 24,517 -8.3% 40,624 7.2% -8.3% 37.6% 7.2% 62.4% 37.6% 35,001 34,706 4,333 3,909 20,716 22,371 4,603 4,155 34,706 -0.8% 3,909 -9.8% 22,371 8.0% 4,155 -9.7% -0.8% 53.3% -9.8% 6.0% 8.0% 34.3% -9.7% 6.4% 53.3% 62.4% 6.0% 34.3% 6.4% Detroit consists of vehicles sold by GM, DetroitThree Three consists of vehicles soldFord, by and GM, Ford, and Detroit Chrysler. Three consists of vehicles sold by GM, Ford, and Chrysler. Chrysler. Source: Polk. *Source: Figures for April 2014 were estimated by Auto Outlook. Polk. Source: Polk. * Figures for April 2014 were estimated by Auto Outlook. * Figures for April 2014 were estimated by Auto Outlook.19 Brand Registrations Report Minnesota New Retail Car and Light Truck Registrations TOTAL Last Three Months (Feb '14 thru Apr '14) Registrations Market Share (%) 2013 2014 Change 2013 2014% change 52,260 51,243 -1.9 YTD thru April Registrations Market Share (%) 2013 2014% change 2013 2014 Change 64,653 65,141 0.8 Cars Light Trucks 21,872 30,388 19,778 31,465 -9.6 3.5 41.9 58.1 38.6 61.4 -3.3 3.3 26,749 37,904 24,517 40,624 -8.3 7.2 41.4 58.6 37.6 62.4 -3.8 3.8 Domestic Brands European Brands Japanese Brands Korean Brands 28,057 3,513 16,950 3,740 26,912 3,190 17,830 3,311 -4.1 -9.2 5.2 -11.5 53.7 6.7 32.4 7.2 52.5 6.2 34.8 6.5 -1.2 -0.5 2.4 -0.7 35,001 4,333 20,716 4,603 34,706 3,909 22,371 4,155 -0.8 -9.8 8.0 -9.7 54.1 6.7 32.0 7.1 53.3 6.0 34.3 6.4 -0.8 -0.7 2.3 -0.7 Acura 374 439 Audi 344 410 BMW 737 662 Buick 1,081 1,004 Cadillac 356 323 Chevrolet 8,459 7,777 Chrysler 1,074 803 Dodge 1,865 1,857 FIAT 81 57 Ford 10,145 9,165 GMC 1,898 1,915 Honda 4,318 4,203 Hyundai 1,825 1,491 Infiniti 252 258 Jaguar 16 11 Jeep 1,342 2,088 Kia 1,915 1,820 Land Rover 111 103 Lexus 547 585 Lincoln 285 251 Mazda 1,112 1,156 Mercedes 457 486 MINI 236 159 Mitsubishi 228 495 Nissan 2,414 2,669 Other 120 108 Porsche 55 69 Ram 1,496 1,682 Subaru 1,919 2,276 Tesla 23 19 Toyota 5,714 5,710 Volkswagen 1,274 1,049 Volvo 187 143 Top ten brands are shaded yellow. 17.4 19.2 -10.2 -7.1 -9.3 -8.1 -25.2 -0.4 -29.6 -9.7 0.9 -2.7 -18.3 2.4 -31.3 55.6 -5.0 -7.2 6.9 -11.9 4.0 6.3 -32.6 117.1 10.6 -10.0 25.5 12.4 18.6 0.7 0.7 1.4 2.1 0.7 16.2 2.1 3.6 0.2 19.4 3.6 8.3 3.5 0.5 0.0 2.6 3.7 0.2 1.0 0.5 2.1 0.9 0.5 0.4 4.6 0.2 0.1 2.9 3.7 0.0 10.9 2.4 0.4 0.9 0.8 1.3 2.0 0.6 15.2 1.6 3.6 0.1 17.9 3.7 8.2 2.9 0.5 0.0 4.1 3.6 0.2 1.1 0.5 2.3 0.9 0.3 1.0 5.2 0.2 0.1 3.3 4.4 0.0 11.1 2.0 0.3 0.2 0.1 -0.1 -0.1 -0.1 -1.0 -0.5 0.0 -0.1 -1.5 0.1 -0.1 -0.6 0.0 0.0 1.5 -0.1 0.0 0.1 0.0 0.2 0.0 -0.2 0.6 0.6 0.0 0.0 0.4 0.7 0.0 0.2 -0.4 -0.1 442 443 914 1,356 469 10,617 1,325 2,323 99 12,505 2,446 5,131 2,195 300 18 1,670 2,408 137 650 352 1,339 564 280 280 2,913 140 72 1,866 2,434 31 7,146 1,548 240 550 512 794 1,234 426 10,065 992 2,250 69 11,878 2,486 5,253 1,923 331 13 2,731 2,232 141 712 357 1,390 609 196 608 3,372 136 74 2,222 2,899 22 7,214 1,262 188 24.4 15.6 -13.1 -9.0 -9.2 -5.2 -25.1 -3.1 -30.3 -5.0 1.6 2.4 -12.4 10.3 -27.8 63.5 -7.3 2.9 9.5 1.4 3.8 8.0 -30.0 117.1 15.8 -2.9 2.8 19.1 19.1 0.7 0.7 1.4 2.1 0.7 16.4 2.0 3.6 0.2 19.3 3.8 7.9 3.4 0.5 0.0 2.6 3.7 0.2 1.0 0.5 2.1 0.9 0.4 0.4 4.5 0.2 0.1 2.9 3.8 0.0 11.1 2.4 0.4 0.8 0.1 0.8 0.1 1.2 -0.2 1.9 -0.2 0.7 0.0 15.5 -0.9 1.5 -0.5 3.5 -0.1 0.1 -0.1 18.2 -1.1 3.8 0.0 8.1 0.2 3.0 -0.4 0.5 0.0 0.0 0.0 4.2 1.6 3.4 -0.3 0.2 0.0 1.1 0.1 0.5 0.0 2.1 0.0 0.9 0.0 0.3 -0.1 0.9 0.5 5.2 0.7 0.2 0.0 0.1 0.0 3.4 0.5 4.5 0.7 0.0 0.0 11.1 0.0 1.9 -0.5 0.3 -0.1 Source: Polk -0.1 -17.7 -23.5 1.0 -18.5 -21.7 Top ten ranked brands in each category are shaded yellow. 20 www.mada.org MARKET TRACKER: BRAND MARKET SHARE Change in Market State Market YTDthru 2014April* April* vs.2014 Same Period Year Earlier Japanese Brands Increase inthruEarly Change in State Share:Share: YTDShare 2014 vs. Same Period Year Earlier MARKET TRACKER: BRAND MARKET SHARE Change in State Market Share: YTD 2014 thru April* vs. Same Period Year Earlier Japanese Brands Japanese Increase Share in Early 2014 2.3 Japanese 2.3 Change in State Market Share: YTD 2014 thru April* vs. Same Period Year Earlier Korean Korean Japanese -0.7 European European Korean -0.7 Detroit Three Detroit Three European -2.0 Detroit Three -2.0 -1.5 -0.8 -1.5 -1.0 -0.7 2.3 Japanese brand share increased by Japanese 2.3 brand share increased share points duringby the first four 2.3 share points during the first four months of 2014. months of 2014. -0.7 -0.7 -0.8 -0.7 -1.0 -0.5 -0.8 Japanese brand share increased by 2.3 share points during the first four months of 1.0 2014. -0.5 0.0 0.5 1.5 2.0 0.0 0.5 1.0 1.5 2.0 2.5 Change in market share Change in market share 2.5 3.0 3.0 *Figures for April 2014 were by-0.5 Auto Outlook. Source:1.0Polk. 1.5 -2.0 estimated -1.5estimated -1.0 0.0Source: 0.5 *Figures for April 2014 were by Auto Outlook. Polk. 2.0 2.5 3.0 Change in market share MARKET TRACKER: AND ELECTRIC VEHICLES MARKET TRACKER: HYBRIDHYBRID AND ELECTRIC VEHICLES *Figures for April 2014 were estimated by Auto Outlook. Source: Polk. *Figures for April 2014 were estimated by Auto Outlook. Source: Polk. Hybrid & Electric Vehicle Market Share Heads Lower Hybrid & Electric Vehicle Market Share Heads Lower MARKET TRACKER: HYBRID AND ELECTRIC VEHICLES MARKET TRACKER: HYBRID AND ELECTRIC VEHICLES Hybrid & Electric Vehicle Market Share HeadsShare Lower Heads Lower Hybrid & Electric Vehicle Market Quarterly Alternative Powertrain Market Share Quarterly Alternative Powertrain Market Share (includes and electric vehicles) (includes hybridhybrid and electric vehicles) Quarterly Alternative Powertrain Market Share (includes hybrid and electric vehicles) 4.0% 3.5% 3.0% Quarterly Alternative Powertrain Market Share Trendline Trendline hybrid and electric vehicles) (includes 3.5% 4.0% 3.0% 2.5% 2.5% 4.0% Trendline 2.0% 2.0% 3.5% Alternative powertrain market share has 1.5% Alternativetrended powertrain market has three years, 1.5% 3.0% higher duringshare the past trended higher during the past three years, 1.0% but declined again in the First Quarter of '14. 1.0% 2.5% but declined again in the First Quarter of '14. 0.5% 0.5% 2.0% 0.0% Alternative powertrain market share has 0.0% 1.5% Q1 Q2 Q3 Q4 Q1 Q2 higher Q3 during Q4 the Q1 Q2 Q3 Q4 Q1 trended past three years, Q1 Q2'11Q3'11Q4'11Q1'11Q2'12 Q3'12Q4 Q1'12Q2 Q3'13 Q4'13 Q1'13 '14 '12again '13 1.0% but declined in the First Quarter of '14. '11 '11 '11 '11 '12 '12 '12 '12 '13 '13 '13 '13 '14 0.5% Source: Polk. 0.0% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 '11 '11 '11 '11 '12 '12 '12 '12 '13 '13 '13 '13 '14 Source: Polk. Source: Polk. www.mada.org Source: Polk. State Hybrid and Electric Vehicle State Hybrid and Electric Vehicle New Retail Registrations New Retail Registrations 2009 thru 2013, and YTD '14 thru March 2009 thru 2013, and YTD '14 thru March Year Hybrids Electrics Total Year Hybrids Electrics Total 2009State Hybrid and 4005 8 4013 Electric 2009 4005 8 Vehicle 4013 2010 New Retail 3267 7 3274 Registrations 2010 3267 7 3274 2011 3258 14March3272 2011 2009 thru 2013, 3258 and YTD14'14 thru 3272 2012 5100 121 5221 Electrics 2012 Year 5100Hybrids 121 5221 Total 2013 6359 278 6637 8 4013 2013 2009 6359 4005 278 6637 YTD '14 1051 28 1079 7 3274 YTD '142010 1051 3267 28 1079 2011 3258 14 3272 New registrations of hybrid and electric 2012 5100 121 5221 vehicles were 1,079 units in the First 2013 6359 278 6637 Quarter of this year. New registrations of hybrid New registrations YTD '14 1051 of hybrid 28 1079 electric vehicles and and electric vehicles were were units theQuarter First Quarter 1,079 1,079 units in the in First of this year. of this year. New registrations of hybrid and electric vehicles were 1,079 units in the First Quarter of this year. 21 T TRACKER: SEGMENTS mpact SUV Market Share Exceeds 20% MARKET TRACKER: SEGMENTS Compact SUV Market Share Exceeds 20% Minnesota Segment Market Share Review Segment Compact SUV Full Size Pickup Standard Mid Size Car Sub Compact Car Mid Size SUV 3 Rows Mid Size SUV 2 Rows Mini Van Large Mid Size Car Entry Car Mid Size Luxury SUV Near Luxury Car Compact Luxury SUV Full Size SUV Luxury and Sports Cars Full Size Van Compact Pickup Sport Compact Car Entry Luxury Car Full Size Luxury SUV Market Share YTD '13 thru March 16.0 18.5 15.9 14.7 9.0 4.8 4.1 2.7 3.1 2.2 1.8 1.3 1.6 1.4 0.9 0.7 0.8 0.2 0.3 Market Share YTD '14 thru March 20.3 18.3 14.8 12.6 9.0 5.3 3.5 2.5 2.4 2.4 1.7 1.6 1.6 1.3 1.0 0.6 0.5 0.3 0.3 Change in share YTD '13 to YTD '14 4.3 -0.2 -1.1 -2.1 0.0 0.5 -0.6 -0.2 -0.7 0.2 -0.1 0.3 0.0 -0.1 0.1 -0.1 -0.3 0.1 0.0 Best selling model in segment Ford Escape Ford F Series Ford Fusion Ford Focus Toyota Highlander Ford Edge Dodge Caravan Chevrolet Impala Kia Soul Lexus RX BMW 3-Series Buick Encore Chevrolet Tahoe BMW 5-Series Chevrolet Express Toyota Tacoma Chevrolet Camaro Mercedes CLA-Class Cadillac Escalade The table above shows Minnesota market share for 19 vehicle segments during the first three months of 2013 and 2014, 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 2014 share. Mostmarket popular segment state is Compact SUV, which also had the first largestthree gain. Data Source: above shows Minnesota share in forthe19 vehicle segments during the months of Polk. able 201 014, and the change in market share over the period. The best selling model in each segment is als n. Segments are ranked from top to bottom based on 2014 share. Most popular segment in the state act SUV, which also had the largest gain. Data Source: Polk. visit us online at www.mada.org 22 www.mada.org Altima and Civic Post Big Market Share Gains Altima and Civic Post Big Market Share Gains Top three selling light trucks are Full Size Pickups Top three selling light trucks are Full Size Pickups MARKET TRACKER: SEGMENTS The two graphs below show market shares in the state car and light truck markets during the first three month Compact SUV Market Share Exceeds The two and graphs below showthe market shares in 20% the car and truck markets during the first three month of 2013 2014. Includes top ten selling car state and light trucklight models. Top three trucksthe aretop Fullten Sizeselling Pickupscar and light truck models. of 2013 andselling 2014. light Includes The two graphs below show market shares in the state car and light truck markets during the first three months of 2013 and 2014. Includes the top ten selling car and light truck models. Change in Market Share for Top 10 Selling Cars - YTD 2014 thru March vs. YTD 2013 Change in Market Share for Top 10 Selling Cars - YTD 2014 thru March vs. YTD 2013 Change in Market Share for Top 10 Selling Cars - YTD 2014 thru March vs. YTD 2013 7.0% 7.0% Outback, Altima, and Civic market shares were up sharply. Outback, Altima, and Civic market shares were up sharply. 6.0% 6.0% Market Market Share Share 5.0% 5.0% 2013 YTD 2013 YTD 2014 YTD 2014 YTD 4.0% 4.0% 3.0% 3.0% 2.0% 2.0% 1.0% 1.0% 0.0% 0.0% Ford Fusion Ford Fusion Toyota Camry Toyota Camry Ford Focus Ford Focus Subaru Outback Subaru Outback Chevrolet Cruze Chevrolet Cruze Honda Civic Honda Civic Nissan Altima Honda Accord Toyota Corolla Nissan Altima Honda Accord Toyota Corolla Chevrolet Malibu Chevrolet Malibu Change in Market Share for Top 10 Selling Light Trucks - YTD 2014 thru March vs. YTD 2013 Change in Market Share for Top 10 Selling Light Trucks - YTD 2014 thru March vs. YTD 2013 Change in Market Share for Top 10 Selling Light Trucks - YTD 2014 thru March vs. YTD 2013 12.0% 12.0% Market shares for CR-V and Ram improved. Market shares for CR-V and Ram improved. Market Market Share Share 10.0% 10.0% 2013 YTD 2013 YTD 2014 YTD 2014 YTD 8.0% 8.0% 6.0% 6.0% 4.0% 4.0% 2.0% 2.0% 0.0% 0.0% Ford F Series Ford F Series Source: Polk. www.mada.org Source: Polk. Source: Polk. Chevrolet Silverado Chevrolet Silverado Ram Ram Ford Escape Ford Escape Chevrolet Equinox Chevrolet Equinox Honda CR-V Honda CR-V Toyota RAV4 Toyota RAV4 GMC Sierra GMC Sierra Toyota Highlander Toyota Highlander Ford Edge Ford Edge 23 Acura, Subaru, and Ram are also up sharply The graphs below provide a comparative evaluation of brand sales performance in the state market. They BRAND SCOREBOARD-PART ONE show the year-to-date percent change in registrations for each brand, organized by category (i.e., Detroit Mitsubishi andJapanese, Jeep Postand Large Percentage Gains Three, European, Korean). Acura, Subaru, 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 in State New Retail (i.e., LightDetroit Vehicle Registrations percent change in registrationsPercent for eachChange brand, organized by category Three, European, Japanese, and Korean). YTDin2014 thruRetail April* vs.Vehicle YTD 2013 Percent Change State New Light Registrations YTD 2014 thru April* vs. YTD 2013 63.5% Jeep 19.1% Ram GMC 1.6% Lincoln 1.4% -3.1% Dodge Ford -5.0% Chevrolet -5.2% Buick -9.0% Cadillac -9.2% Chrysler Detroit Three Brands -25.1% 15.6% Audi 8.0% Mercedes Land Rover 2.9% Porsche 2.8% -13.1% BMW -18.5% Volkswagen Volvo Jaguar European Brands -21.7% -27.8% MINI -30.0% FIAT -30.3% 117.1% Mitsubishi 24.4% Acura 19.1% Subaru 15.8% Nissan Infiniti 10.3% Lexus 9.5% 3.8% Mazda 2.4% Honda 1.0% Toyota -7.3% Kia Korean Brands -12.4% Hyundai -50.0% Japanese Brands -30.0% -10.0% 10.0% *Figures for April 2014 were estimated by Auto Outlook. 30.0% 70.0% 90.0% 110.0% 130.0% 150.0% Source: Polk. *Figures for April 2014 were estimated by Auto Outlook. 24 50.0% Source: Polk. www.mada.org better together Welcome to Blue Cross and Blue Shield of Minnesota. Together, the Minnesota Automobile Dealers Association and Blue Cross are offering you and your employees: ➜➜ More choice – The largest network of providers in the state delivers value and preserves provider choice ➜➜ Better value – More benefit plan options make it easy to choose a plan that fits your health care needs and your budget ➜➜ Bigger savings – Working with providers, Blue Cross rewards quality of care to deliver you bigger savings ➜➜ Added convenience – From retail clinics to online care options, we make it convenient for your employees to get the care they need Find out how to accelerate your health care savings. Contact your Blue Cross sales representative or call MADA Insurance at (651) 291-2400 or 1-800-652-9029. Blue Cross® and Blue Shield® of Minnesota and Blue Plus® are nonprofit independent licensees of the Blue Cross and Blue Shield Association. The Best of Both Worlds: Soft-touch & Touch-free now on one machine. Introducing the Mark VII Choicewash XT®. Decades of proven Aquajet® Touch-free technology and the unsurpassed efficiency and effectiveness of a Softwash XT® Soft-touch automatic—truly two machines in one! Choicewash XT® is an industry first . . . One machine that can deliver a top quality wash in either mode and it’s your customer’s choice! For more information on upgrading your car wash— Call Reliable Plus today 800.782.8793 reliableplus.com Minnesota • Wisconsin North Dakota • South Dakota www.mada.org 25 BMW isselling best luxury car brand; Acura leads for luxury trucks BMW is graphs best luxury car brand; Acura leads for luxury trucks The four belowselling show market share leaders in Minnesota during the past months for fourforprimary The four graphs below show market share leaders in Minnesota during thesix past six months four prim segments. (Note: figures for April, 2014 were estimated.) Toyota was the best-selling Non Luxury Car brand, segments. (Note: figures for April, 2014 were estimated.) Toyota was the best-selling Non Luxury Car bra with a with very aslim lead place Ford. the topthe ranked Non Luxury Light Truck ahead ahe very slimover leadsecond over second place Ford Ford.was Ford was top ranked Non Luxury Light brand, Truck brand, The four graphs below show market share leaders in Minnesota during the past six months for prim The four graphs below show market share leaders in Minnesota during the past six months for four primary of Chevrolet and Toyota. BMW was the best-selling Luxury Car brand, while Acura was highest for trucks. of Chevrolet and Toyota. BMW was the best-selling Luxury Car brand, while Acura was highest for four trucks. segments. for2014 April,were 2014estimated.) were estimated.) was the best-selling Non Luxury Car bra segments. (Note: (Note: figuresfigures for April, ToyotaToyota was the best-selling Non Luxury Car brand, SCOREBOARD-PART TWOsecond with aslim very slim lead over second place Ford Ford.was Ford was top ranked Non Luxury Light brand, Truck brand, with BRAND aSource: very lead over place Ford. the topthe ranked Non Luxury Light Truck ahead ahe Data Polk. Data Source: Polk. of Chevrolet and Toyota. BMW was the best-selling Luxury Car brand, while Acura was highest for trucks. of Chevrolet and Toyota. BMW was the best-selling Luxury Car brand, while Acura was highest for trucks. Toyota is Non-Luxury Car Brand Leader; Ford #1 for Trucks BMW is best selling luxury car brand; Acura leads for luxury trucks Data Source: Data Source: Polk. Polk. The four graphs below show market share leaders in Minnesota during the past six months for four primary segments. (Note: TopApril, 10 Top Non Luxury Car Brands Top Car 10 Top Non Luxury Light Truck Brands figures for 2014 were was the best-selling Non Luxury brand, with very slim lead over second 10 Nonestimated.) Luxury CarToyota Brands 10 NonaLuxury Light Truck Brands place Ford. Ford was the top ranked Non Luxury Light Truck brand, ahead of Chevrolet and Toyota. BMW was the best-selling November 2013 thru April 2014 November 2013 thru April 2014 November 2013 thru April 2014 November 2013 thru April 2014 Luxury Car brand, while Acura was highest for trucks. Source: Polk 15.7 15.7 Toyota10 Top Non- Vehicle Luxury Car Brands Top Non 10 Luxury Car Brands Brand Market Share 2 years old or newer November 2013 thru April15.6 2014 15.6 November 2013 thru April 2014 2013 Ford Toyota Ford 13.6 15.713.6 15.7 Toyota Toyota Chevrolet Chevrolet Ford Honda Ford Honda Honda Hyundai Subaru Nissan Subaru Nissan Hyundai Kia Hyundai Kia VolkswagenVolkswagen 0.0 0.0 5.0 5.2 Honda Jeep 6.47.3 GMC Ram GMC Ram Jeep Nissan Jeep Nissan 5.2 6.4 Ram Subaru Ram 3.0 Subaru 5.7 Nissan Dodge Nissan Dodge 2.9 4.6 5.2 5.0 10.0 10.015.0 15.020.0 20.0 0.0 5.0 0.0 5.0 10.0 10.015.0 20.0 9.7 9.7 6.8 6.47.3 5.76.8 5.7 5.7 3.0 2.9 4.6 3.0 10.0 5.0 15.0 10.0 20.0 15.0 25.0 20.0 5.0 10.0 10.0 15.0 15.0 20.0 20.0 25.0 Acura 10 Luxury LightBrands Truck Brands Top 10 Top Luxury Light Truck 16.0 Acura November 2013 thru April 201416.0 November 2013 thru April 2014 Lexus Lexus Acura BMW Acura BMW Lexus Cadillac Lexus Cadillac 16.2 12.5 12.5 16.2 11.7 11.7 20.5 20.5 16.2 10.3 12.5 10.3 12.5 Lexus Cadillac Lexus Cadillac Audi Infiniti Audi Infiniti Cadillac Lincoln Cadillac Lincoln Infiniti Volvo Infiniti Volvo Lincoln Acura Lincoln Acura Volvo Tesla Volvo 1.5 Tesla 10.3 7.1 7.1 Cadillac Audi 10.3 5.5 1.5 Acura 0.0 Acura 0.0 5.04.5 Tesla 1.5 0.0 5.0 7.1 4.5 7.1 4.5 10.0 5.0 20.0 15.0 25.0 20.0 25.0 Share of luxury (%)market (%) Sharecar of market luxury car 1.5 5.0 10.0 10.0 15.0 9.1 8.3 Audi Infiniti Infiniti Volvo Infiniti Volvo 15.0 10.0 11.212.6 11.212.6 6.3 LandLincoln RoverLandLincoln Rover 5.5 15.0 20.0 Sharecar of market luxury car Share of luxury (%)market (%) 20.0 25.0 25.0 8.3 5.3 5.3 3.3 9.16.3 6.3 3.3 Volvo 0.0 11.49.1 11.4 11.2 8.3 11.2 9.1 8.3 6.3 5.3 Land RoverLand 0.0 Rover 0.0 5.0 5.3 5.0 10.0 Volvo 16.0 14.8 14.8 11.4 11.4 Cadillac Audi Audi Infiniti 14.8 16.0 12.6 12.6 Mercedes Lincoln Mercedes Lincoln 5.5 7.5 5.5 7.5 4.5 14.8 BMW BMW Mercedes Mercedes 11.7 11.7 7.5 7.5 25.0 November 2013 thru April 2014 16.2 20.5 25.0 Share of non truck Share of non luxury truckluxury market (%)market (%) 10 Luxury Car Brands Top 10 Top Luxury Car Brands 20.5 BMW November 2013 thru April 2014 November 2013 thru April 2014 Mercedes Audi Mercedes Audi 26 19.7 Top 10 Top Luxury Light Truck 10 Luxury LightBrands Truck Brands November 2013 thru April 2014 November 2013 thru April 2014 Top 10 Luxury Light Truck Brands BMW Lexus 0.0 23.7 Top 10 Top Luxury Car Brands 10 Luxury Car Brands November 2013 thru April 2014 November 2013Car thru April 2014 Top 10 Luxury Brands Mercedes Mercedes Tesla 23.7 4.6 6.4 4.6 6.4 0.0 5.0 0.0 November 2013 thru April 2014 BMW Lexus 23.7 Share of non luxury truckluxury market (%)market (%) Share of non truck 2.9 Dodge 2.9 Share of non luxury car Share of non luxury car market (%)market (%) BMW 23.7 19.7 7.3 5.76.8 3.0 Subaru 0.0Subaru 0.0 5.0 Dodge 15.020.0 9.7 7.3 Honda Jeep 11.3 11.3 7.4 Share of non luxury car market (%)market (%) Share of non luxury car 2.9 Dodge 2.9 Dodge 9.7 6.8 5.7 7.4 5.7 7.4 5.72.9 Ford Toyota Toyota GMC 6.4 8.1 6.4 8.1 Kia 2.9 Dodge Ford Toyota Toyota GMC 7.4 5.2 6.4 Ford Chevrolet Honda Chevrolet Honda 13.6 8.1 13.6 8.1 Nissan NissanVolkswagen Volkswagen Kia Dodge 15.6 15.6 11.3 11.3 Chevrolet Subaru Chevrolet Subaru Honda Hyundai 10 Light Truck Brands Top 10 Top Non Luxury Truck Brands Brand Market Share - 3Non and Luxury 4Light Year Old Vehicles November 2013 thru April 2013 thru April 2014 2013 19.7 2014 Chevrolet ChevroletNovember 19.7 Ford 10.015.0 15.020.0 20.0 Share of luxury market (%)market (%) Sharetruck of luxury truck 3.3 3.3 0.0 5.0 5.0 10.0 10.015.0 15.020.0 Sharetruck of luxury truck Share of luxury market (%)market (%) www.mada.org 20.0 Car market share in state fell to 37.6% The accompanying table provides a comparison of results in both the Minnesota and U.S. markets. New vehicle registrations in the state improved a slim 0.8% during the first four months of 2014, while the U.S. market increased MINNESOTA MARKET5.4%. VERSUS Car U.S. market share in Minnesota was 11.4 share points lower than in the Nation. Detroit Three market share in Minnesota was 53.3%, well above the 41.4% share in the Nation. Note: Figures for April Gain in State New Vehicle Market Trails Nation in 2014 2014 were estimated by Auto Outlook. Car market share in state fell to 37.6% The accompanying table provides a comparison of results in both the Minnesota and U.S. markets. New vehicle registrations in Source: Polk. the state improved a slim 0.8% during the first four months of 2014, while the U.S. market increased 5.4%. Car market share in Minnesota was 11.4 share points lower than in the Nation. Detroit Three market share in Minnesota was 53.3%, well above the 41.4% share in the Nation. Note: Figures for April 2014 were estimated by Auto Outlook. Source: Polk Minnesota Market U.S. Market 0.8% 5.4% Car Market Share Car share of industry retail light vehicle registrations - YTD 2014 thru April 37.6% 48.0% Detroit Three Brand Market Share Domestic brand share of industry retail light vehicle registrations - YTD 2014 thru April 53.3% 41.4% Change in registrations % change in registrations YTD 2014 thru April vs. YTD 2013 Top selling light vehicle brands and market share - YTD 2014 thru April First Second Third Fourth Fifth Sixth Seventh Eighth Ninth Tenth Ford Chevrolet Toyota Honda Nissan Subaru Jeep GMC Dodge Kia 18.2% 15.5% 11.1% 8.1% 5.2% 4.5% 4.2% 3.8% 3.5% 3.4% Toyota Ford Chevrolet Honda Nissan Jeep Hyundai Kia Subaru Dodge 13.2% 12.7% 10.5% 9.5% 7.9% 4.5% 4.4% 3.7% 3.5% 3.4% Data Source: Polk www.mada.org 27 NT RESULTS IN MINNESOTA USED VEHICLE MARKET ed vehicle registrations declined 10.9% thru April nnesota Used Vehicle Market Heads Lower Early 2014 Minnesotain Retail Used Light Vehicle Registrations ENT RESULTS IN MINNESOTA USED VEHICLE MARKET ow is a list of key trends in the Minnesota retail d vehicle registrations declined 10.9% thru April ed vehicle market: YTD 2014 thru April* '13 TO '14 innesota Used Vehicle Heads Lower in Early 2014 RECENT RESULTS IN MINNESOTA USED VEHICLEMarket MARKET TOTAL -10.9% Registrations 2013 2014 297,726 265,334 % Change Market Share 2013 2014 • Retail used registrations in the state declined Used Light Vehicle Registrations Minnesota Used Vehicle Market Heads LowerMinnesota in EarlyRetail 2014 150,898 50.7% 49.5% vehicle registrations declined wedis10.9% a list of key trends in the Minnesota retail YTD 2014131,338 thru April* -13.0% during the first four months 10.9% of 2014thru AprilCars Used vehicle registrations declined 10.9% thru April Light Trucks Registrations 146,828 133,996 50.5% % Change -8.7% Market49.3% Share vehicle market: versus a year earlier. (Note: figures for April of '13 TO '14 2013 2014 2013 2014 thisBelow year is were by in Auto a listestimated of key trends the Outlook.) Minnesota retail Minnesota Retail Used185,318 Light Vehicle Registrations Detroit Three 213,084 71.6% 69.8% TOTAL 297,726 265,334 -10.9%-13.0% market: Retail the Minnesota state declined European 16,833 5.7% 6.0% ow is used a used listvehicle ofregistrations key trends in the retail YTD 201415,984 thru April* -5.0% Cars Japanese 150,898 131,33856,466 -13.0% 50.7% 49.5% 21.3% during the first four months of 2014 % Change 60,357 -6.4% 20.3% Market Share Registrations •vehicle As shown on the graph below, the new vehicle d10.9% market: • Retail used registrations in the state LightKorean Trucks 146,828 133,996 49.3% 50.5% '13-8.7% TO '141.5% 20132.5% 2014 2.9% 2013 2014 7,452 7,566 versus a declined year (Note: for of the market grewearlier. at10.9% a slightly faster than duringfigures the firstpace fourApril months TOTAL 297,726 265,334 -10.9% * Figures for April 2014 were estimated by Auto Outlook. this year were estimated by Auto Outlook.) used market inversus 2013, and the vehicle Detroit Three 213,084 185,318 -13.0% 71.6% 69.8% of 2014 a year (Note: figureswas • Retail used registrations inearlier. the new state declined European 16,833 15,984 -5.0% 5.7% 6.0% Cars 150,898 131,338 -13.0% 50.7% 49.5% for early Aprilthe of first this year estimated by up slightly this year, as were well. 10.9% during four months of 2014 Source: Polk. Japanese 60,357 -6.4% Asversus shownaAuto on the graph (Note: below,figures the new Light Trucks 146,828 56,466 133,996 -8.7% 20.3% 49.3% 21.3% 50.5% Outlook.) year earlier. forvehicle April of Korean 7,452 7,566 1.5% 2.5% 2.9% market grew at estimated a slightly faster pace thanforthe were by Auto Outlook.) • this Theyear sharp decline in new vehicle sales 2009 • As shown on the graph below, the new Detroit Three 213,084 185,318 by Auto -13.0% 69.8% * Figures for April 2014 were estimated Outlook.71.6% used was hasmarket ledvehicle toin 2013, short supplies of vehicle five year European 16,833 15,984 -5.0% 5.7% 6.0% marketand grewthe at anew slightly faster paceold % Change 60,357 in Retail 56,466 New and Used Vehicle Markets slightly early this year, well. Japanese -6.4% 20.3% 21.3% Source: Polk. •upAs shown onthe the graph below, the drop newthe vehicle vehicles, resulting inmarket theas 4.5 in market than used inpoint 2013, and new 2009 thru 2013, YTD ’14 thru April*2.5% vs. YTD 2.9% ‘13 Korean 7,452 and 7,566 1.5% market a slightly faster pace vehicleatwas up slightly early this than year, the as share. grew * Figures for April 2014 were estimated by Auto Outlook. The sharp decline in new vehicle sales for 2009 well. in 2013, and the new vehicle was used market Source: Polk. has led to short supplies of old up slightly this year, in asnew well.five • Used •light truck registrations fell year 8.7%, while % Change in Retail New and Used Vehicle Markets Source: Polk. Theearly sharp decline vehicle sales for 30.0% vehicles, resulting in the 4.5 point drop in market cars declined 13%. 2009 has led to short supplies of five year 25.0% thru 2013, and YTD ’14 thru April* vs. YTD ‘13 2009 •share. The sharp new vehicle for drop 2009 20.0% old decline vehicles,inresulting in thesales 4.5 point % Change in Retail New and Used Vehicle Markets 15.0% ledin to short supplies of five year old in market share. • has Chevrolet Impala was the best-selling model 2009 thru 2013, YTDUsed ’14 thru April* vs.Markets YTD ‘13 % Change in Retail Newand and Vehicle 10.0% Used light resulting truck registrations fell drop 8.7%, while vehicles, in the two 4.5 point inormarket 30.0% the state for vehicles years old newer. • Used light truck registrations fell 8.7%, 5.0% cars declined 13%. 25.0% 2009 thru 2013, and YTD ’14 thru April* vs. YTD ‘13 share. Ford F-Series for three while carsled declined 13%. to five year old 20.0% 0.0% vehicles. 15.0%-5.0% Chevrolet Impala was fell the 8.7%, best-selling Impala the best-selling modelwhile in -10.0% •Chevrolet Used •light truckwas registrations 10.0% 30.0% model in the state vehicles old -15.0% the state for vehicles twoforyears oldtwo or years newer. 5.0% cars declined 13%. 25.0% YTD '13 to • Used registrations for Audi, to Kia,five Infiniti, '09 to '10 '10 to '11 '11 to '12 '12 to '13 or newer. F-Series led forSubaru, three five 0.0% Ford F-Series ledFord for three yearto old 20.0% YTD '14* and Acura increased during the first four months -5.0% year old vehicles. 15.0% vehicles. New • Chevrolet Impala was the best-selling model in 4.2% 27.7% 7.9% 10.7% 0.8% -10.0% 10.0% of this•year. Used Audi,old Kia,orSubaru, the state for registrations vehicles twoforyears newer. -15.0% 5.0% 4.3% 0.0% 9.3% -10.9% 5.0%Used YTD '13 to Used for for Audi, Kia, Subaru, Infiniti, Infiniti, led and Acura increased the '09 to '10 '10 to '11 '11 to '12 '12 to '13 0.0% Fordregistrations F-Series three to fiveduring year old YTD '14* and Acurafirst increased during the year. first four months -5.0% four months of this vehicles. Polk. 27.7% New Source: 4.2% 7.9% 10.7% 0.8% -10.0% of this year. Used -15.0% 5.0% 4.3% 0.0% 9.3% -10.9% YTD '13 to • Used registrations for Audi, Kia, Subaru, Infiniti, '09 to '10 '10 to '11 '11 to '12 '12 to '13 YTD '14* Source: Polk. and Acura increased during the first four months Source: Polk. New 4.2% 27.7% 7.9% 10.7% 0.8% of this year.Used Vehicle Registrations - Percent Change in Three Month Moving Average (May ‘12 thru April ‘14*) nesota Retail Used 5.0% 4.3% 0.0% 9.3% -10.9% Minnesota Retail Used Vehicle Registrations - PercentSource: Change inPolk. Three Month Moving Average (May ‘12 thru April ‘14*) sota Retail Used Vehicle Registrations - Percent Change in Three Month Moving Average (May ‘12 thru April ‘14*) *Figures for April 2014 were estimated by Auto Outlook. Source: Polk. Apr-14 Mar-14 Apr-14 Jan-14 Feb-14 Apr-14 Mar-14 Mar-14 Feb-14 Feb-14 Dec-13 Nov-13 Dec-13 Jan-14 Jan-14 Source: Polk. Nov-13 Oct-13 Sep-13 Source: Polk. Dec-13 Oct-13 Nov-13 Oct-13 Sep-13 Jul-13 Aug-13 Sep-13 Aug-13 Jun-13 Jul-13 Jul-13 Jun-13 May-13 Moving Average (May ‘12 thru April ‘14*) Aug-13 28 Jun-13 Apr-13 May-13 *Figures for April 2014 were estimated by Auto Outlook. May-13 Apr-13 Mar-13 Apr-13 Mar-13 Feb-13 Mar-13 Jan-13 Feb-13 Feb-13 Jan-13 Dec-12 Jan-13 Dec-12 Nov-12 Dec-12 Oct-12 Nov-12 Nov-12 Oct-12 Sep-12 Oct-12 Aug-12 Sep-12 Sep-12 Aug-12 Jul-12 Jul-12 Aug-12 Jun-12 Jun-12 Jul-12 May-12 Jun-12 May-12 May-12 esota 60.0% 50.0% 40.0% 30.0% Retail Used Vehicle Registrations - Percent Change in Three Month 60.0% 20.0% 50.0% 10.0% 40.0% 0.0% 30.0% 60.0% -10.0% 20.0% 50.0% -20.0% 10.0% 40.0% -30.0% 0.0% 30.0% -10.0% 20.0% -20.0% 10.0% -30.0% 0.0% -10.0% *Figuresfor for April werewere estimated by Auto Outlook. Source: Polk. *Figures April2014 2014 estimated by Auto Outlook. -20.0% -30.0% www.mada.org ght supplies of 2009 model year vehicles led to the 4.5 market share point decline for five year old cars and ucks during the first four months of this year (see graph below). Three year old market share was up 3.2 hare points. ource: Polk. USED VEHICLE SALES BY AGE Three and Four Year Old Vehicles Gain Market Share Five year old used vehicle market tumbles Tight supplies of 2009 model yearShare vehicles to the 4.5 sharesix point decline year old cars and trucks during the Market byled Vehicle Agemarket (vehicles years oldfor orfive newer) first four months of this year (see graph below). Three year old market share2013 was up 3.2 share points. Source: Polk YTD 2014 thru March vs. YTD Market Share by Vehicle Age (vehicles six years old or newer) YTD 2014 thru March vs. YTD 2013 6.0 Change in market share 4.0 3.2 2.1 2.0 0.0 -0.1 -0.3 -2.0 -4.0 -6.0 -4.5 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 CUSTOM PROFESSIONAL C M Y CM MY CY BUSINESS CARDS • Hundreds of options • Competive pricing • Fast turnaround • Great customer service with an on-staff graphic designer • Quantity options available We can turn your business card into magnets too! CMY K To place your order, please contact Reggie Klein Phone: 651-789-2933 or 800-652-9029 Email: reggie@mada.org www.mada.org 29 30 www.mada.org rd F-Series is Best Seller forSeller Threefor to Three Five Year OldYear Vehicles Ford F-Series is Best to Five Old Vehicle ala was the two year old or newer leader Impala was the two year old or newer leader graphs show top selling models in two age categories: vehicles two years old or newer, and those TOPbelow SELLING MODELS The graphs belowPolk. show top selling models in two age categories: vehicles two years old or newer, a e to five years old. Source: Fordthree F-Series Bestold. Seller for Three to fiveisyears Source: Polk. 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. (Two years old or newer) old. Source: p 25 Selling Models Top 25 Selling Models (3 to 5 year old vehicles) Top 25 Selling (Two years old or newer) ed retail registrations, YTD Models 2014 thru March Top 25 Selling Models (Two years old2014 or newer) Used retail registrations, YTD thru March Used retail registrations, YTD 2014 thru March 825 825 Chevrolet Impala 604 evrolet Silverado 604 Chevrolet Silverado 584 Ford Escape 584 Ford Escape 543 Chevrolet Malibu 543 Chevrolet Malibu 524 Ford Fusion 524 Ford Fusion 496 hevrolet Equinox 496 Chevrolet Equinox 472 Ford F Series 472 Ford F Series 457 Dodge Caravan 457 Dodge Caravan 453 Ford Edge 453 Ford Edge 425 Town & Country 425 Chrysler Town & Country 415 Chevrolet Cruze 415 Chevrolet Cruze 406 Ford Focus 406 Ford Focus 357 hevrolet Traverse 357 Chevrolet Traverse 304 Chevrolet Captiva 304 Chevrolet Captiva 224 Ford Explorer 224 Ford Explorer 219 Nissan Altima 219 Nissan Altima 213 Ford Taurus 213 Ford Taurus 210 Dodge Avenger 210 Dodge Avenger 209 GMC Terrain 209 GMC Terrain 207 Dodge Ram 207 Dodge Ram 192 Toyota Camry 192 Toyota Camry 185 Honda Civic 185 Honda Civic 181 Chrysler 200 181 Chrysler 200 180 GMC Sierra 180 GMC Sierra 178 Grand Cherokee 178 Jeep Grand Cherokee 0 250 500 750 1000 0 250 500 750 1000 Chevrolet Impala www.mada.org Top 25 Selling (3 to 5 year old ve Used retail registrations, YTD Models 2014 thru March Top 25 SellingUsed Modelsretail (3 to 5registrations, year old vehicles)YTD 2014 thru Used retail registrations, YTD 2014 thru March Ford F Series Chevrolet Silverado Ford F Series 1026 10 1015 Chevrolet Silverado 702 Toyota Camry 554 Chevrolet Malibu Chevrolet Malibu 506 Chevrolet Impala Chevrolet Impala 503 Ford Fusion Ford Fusion 451 Toyota RAV4 Toyota RAV4 412 Chevrolet Equinox Chevrolet Equinox 394 Ford Escape Ford Escape 380 Dodge Ram Dodge Ram 380 Ford Edge Ford Edge 371 Toyota Corolla Toyota Corolla 367 Honda Accord Honda Accord 345 Chrysler Town & Country Chrysler Town & Country 345 Chevrolet Traverse Chevrolet Traverse 329 Honda CR-V Honda CR-V 315 GMC Sierra GMC Sierra 285 Honda Civic Honda Civic 278 Ford Focus Ford Focus 274 Hyundai Sonata Hyundai Sonata 264 Dodge Caravan Dodge Caravan 250 Volkswagen Jetta Volkswagen Jetta 237 GMC Acadia GMC Acadia 236 Toyota Prius Toyota Prius 234 Nissan Altima Nissan Altima 0 500 1000 0 101 Toyota Camry 702 554 506 503 451 412 394 380 380 371 367 345 345 329 315 285 278 274 264 250 237 236 234 1500 500 1000 31 Audi, Kia, Subaru, Infiniti, and Acura Used Registrations Increase Audi posts an 8.3% increase BRAND SCOREBOARD The graph shows the percent changeUsed in retail used light vehicle registrations during the first four months Audi, Kia,below Subaru, Infiniti, and Acura Registrations Increase ofAudi 2014 versus the same period a year earlier for the top 30 selling brands in the state. Audi had the largest posts an 8.3% increase increase, up 8.3%. Source: Polk. *Figures for April 2014 were estimated by Auto Outlook. The graph below shows the percent change in retail used light vehicle registrations during the first four months of 2014 versus the same period a year earlier for the top 30 selling brands in the state. Audi had the largest increase, up 8.3%. Source: Polk. *Figures for April 2014 were estimated by Auto Outlook. Percent Change in Minnesota Retail Used Light Vehicle Registrations Percent Change in 2014 Minnesota Used YTD thruRetail April* vs.Light YearVehicle EarlierRegistrations YTD 2014 thru April* vs. Year Earlier 8.3% Audi 6.8% Kia Subaru 4.9% Infiniti 4.8% 3.4% Acura -0.2% Mercedes -2.9% MINI Hyundai -3.6% Honda -3.7% BMW -3.7% Jeep -4.5% Lexus -4.6% -5.8% Porsche Nissan -7.1% Volkswagen -7.1% Toyota -7.2% GMC -7.4% -8.6% Mitsubishi -9.2% Chrysler -9.9% Volvo -10.6% Ford -12.1% Dodge -14.8% Chevrolet Mazda -15.3% Suzuki -15.4% Cadillac -15.5% Lincoln -15.6% Buick -15.6% -21.2% Land Rover -22.4% Jaguar -40.0% 32 -30.0% -20.0% -10.0% 0.0% 10.0% 20.0% www.mada.org DEALERSHIP SHOWCASE LUTHER BURNSVILLE VOLKSWAGEN A wise man once said, “It doesn’t matter where you are, it’s what direction you’re headed.” said Radue. “We like to say we set the standard for exceptional Volkswagen service.” If that’s the case, Luther Burnsville Volkswagen is properly pointed toward the future, both in terms of bricks and mortar and in their understanding of the importance of new technologies. Though Radue has 30 years experience selling VWs, he works with his staff to keep an eye firmly fixed on the present, and on the future. They understand how critical social media has become to a dealership’s success. The dealership, a Luther store since 1982, was on Cliff Road near the river until three years ago. That all changed when they moved into the new, bright white, 50,000 square foot facility on Buck Hill Road, just south of Burnsville Center and overlooking both 35E and 35W. He added, “We say ‘Make the Experience Count.’” That means always trying to go above and beyond...and we are aware of how significantly online reviews at DealerRater, Cars.com, Google and the others can impact customer decisions. We now have more than 1,300 reviews. One gentleman came from Wisconsin because of our reviews, and he specifically asked to work with a particular person because of the great things people were saying about her. General Manager Jay Radue describes the new dealership as “the new Volkswagen ‘white frame’ design. We have two customer lounge areas with Wi-Fi, beverages and snacks. We have a huge training area to meet with all employees ...something the other location lacked. We now have an automatic car wash, too. We used to joke about the old days when we had one stall to hand wash cars, and washed the others outside.” The service area features 20 service bays and includes technicians and advisors who have worked with Volkswagen for more than 25 years. “We have great people,” www.mada.org “We focus on taking care of people,” Radue said. “Good reviews are driving traffic to the store, and so are referrals. Many of our new customers come in based on reviews.” Those reviews HAVE been good. Burnsville Volkswagen is a 2014 DealerRater.com Dealer of the Year. They also are the only Volkswagen dealer in Minnesota to have been inducted into the prestigious “Wolfsburg Crest Club” for 2013; an award earned only by the top 50 VW dealers in the nation. It means Burnsville Volkswagen has met the highest standards for sales and service, and customer satisfaction. As a result, the dealership was top 10 in sales volume last year for Certified Pre-Owned Volkswagens sold in the country. Clearly, they are headed the right direction. 33 Industry Spotlight James Mercer James Mercer is a funny guy in a very unfunny business. The normally stuffy and serious world of finance and insurance is broken up by the arrival of the young man from Woodbury. James is a journeyman car guy but when you meet him, you immediately gather a mischievous side. Despite what he may say or convey, the serious side is driving him all the time. In eight short years, the dad of three from Burnsville went from Account Exec to Regional Manager in charge of MN, SD, ND, Colorado, Montana, Wyoming and Utah, and top trainer for one of the industry’s top Finance and Insurance companies. He sat down recently with MADA Executive Vice President Scott Lambert to discuss where he is so far in his young life. Are you from Minnesota? Yes. My Dad worked for 3M, so we started in Hutchinson, then moved to Naperville, Illinois until I was in 7th grade. Then we came back and settled in Woodbury. Your Dad ended up at 3M world headquarters in Maplewood? Exactly. An only child? Oh no. I have 3 brothers. We fought hard as kids but now we’re the best of friends. How’d you end up in the car business? I went to Mankato State and majored in economics. But that doesn’t get you a job. I graduated from college on Friday and walked into a dealership on Monday. But why a dealership? I was driving up Hwy 169 and heard one of Denny Hecker’s ads on the radio. I had interviewed at some banks but I wanted to do sales. So you just walked in and asked for work? Yep, showed up at Denny Heckers Hudson Pontiac as green as a blade of grass. I knew nothing about the car business. What struck you most about the car business at first? The money. I made twice as much selling cars as I ever would have working at a bank. So how long were you in sales? Only for a year, then I moved into finance. 34 Protective Regional Manager Did you stay in Hudson for long? I was actually at six stores in six years. All Hecker stores? No, after Hudson I went to Denny’s Monticello Dodge and his Inver Grove Heights Hyundai, then Kline Volvo, Walser Dodge and my last store was Freeway Ford. Why all the moves? The turnover at Denny’s stores was out of control. Everyone was interviewing all the time. I followed my bosses to other stores. Do you still keep in touch with Denny? (laughs) How’d you end up at Protective? I answered an ad in the Pioneer Press. All it said was Finance Mgr, 5 yrs exp, college degree, willing to travel. When was that? 2006. I was hired by Wendell Anderson. What’s the first job you ever had? I was a cashier at Target in Woodbury. What was that like? It was relentless. The people just keep coming. It was like the conveyor belt scene in “I Love Lucy.” You just couldn’t push against the tide. So, you’ve been with Protective for eight years now. What’s your takeaway so far? It’s opened my eyes to what the dealer does each day. He could spend 100% of his time on a huge variety of things that have nothing to do with selling cars. If money didn’t matter and you could reinvent yourself as anything, what would you do? I’d write comedy screenplays. That’s an interesting answer. I go to movies with my brothers and we always come out saying. ‘That was funny, but we could write something funnier.’ Besides running eight states, is there anything else you do with Protective? I am the lead Finance trainer for Protective. I train F&I personnel in Chicago. Do you like that? I’ve done it now for five years and I really get a lot of satisfaction out of it. It’s cool when you get a green person and bump into them later in the business and see how they’ve blossomed. And your dream of Hollywood success? But, it’s just that: a dream. I’m a lifer with Protective. I enjoy this job too much. www.mada.org Customers come standard. In Minnesota, Star Tribune rules the road. • Mobile & apps Millions of Minnesotans visit us online every month. We have the only • Geo-targeting top 25 newspaper in the country that’s growing in circulation. And we • Behavioral targeting offer an ever-expanding lineup of mobile solutions. Massive reach. • Search marketing Pinpoint targeting. That’s how you drive your message home. • E-mail marketing Supercharge your advertising. Call Steve Engelhart at 612-673-4950 or Tim Haley at 612-673-7026. 3254047/1/14 With Protective Asset Protection, you protect your best asset – your reputation. In today’s transparent world, consumers are only a few clicks away from uncovering the good, the bad and the ugly about any company. With Protective Asset Protection, you and your customers can rest assured that the products we offer are administered and backed by us, which means reliable service that protects your reputation. What’s more, our company believes in doing the right thing by you and by your customers. We are in business to serve people, build trust, and simplify everything. So when your customers choose our products, they are protecting their own assets – as well as yours. Learn more at protectiveassetprotection.com Protect Tomorrow. Embrace Today.™ Vehicle Protection Plans I GAP Coverage I Credit Insurance I Limited Warranty Products Dealer Participation Programs I F&I Training I Advanced F&I Technology Contact Protective’s Minnesota representative, James Mercer at 866 927 2908 Limited Warranty Products, Vehicle Protection Plans (VPPs) and GAP are backed by Lyndon Property Insurance Company in all states except NY. In NY, VPPs are backed by Old Republic Insurance Company, Limited Warranty Products are backed by Western General Insurance Company and GAP is not available. Credit Insurance is backed by Protective Life Insurance Company in all states except NY, where it is backed by Protective Life and Annuity Insurance Company.