Archives For Auto Industry News

Source: Google Launches Initiative to Fight Fraud Directed at Car Dealers and Mid-Sized Companies

Google Launches Initiative to Fight Fraud Directed at Dealers and Mid-Sized Companies

Google steps up efforts to fight scams and fraud directed at Small and Midsize Business

Scammers claiming to represent Google continue to prey on small business owners. They often also make threats about removing listings or outrageous claims about ranking improvements. Sometimes they try to charge for things that are free on Google.

In the past, Google has done a number of things to try and stop this kind of fraud, including filing lawsuits. Now, it’s stepping up its efforts and has announced a new set of initiatives.

The company is taking legal action against several entities. In addition, it can now better identify accounts tied to scammers and remove them. Google has also developed a tool to let business owners report scams, and it’s providing a directory of trusted partners.

Here’s an abbreviated version of what Google says in its blog post today:

  • We’re taking legal action against Kydia Inc. d/b/a BeyondMenu, Point Break Media, LLC (and affiliated entities) and Supreme Marketing Group, Inc. d/b/a Small Business Solutions
  • We’ve developed new automated and manual techniques to better identify Google accounts tied to scam efforts.
  • We’ve created a new tool that lets business owners report scammy practices and policy violations.
  • We’ve started providing resources and education to local small business organizations.
  • We’re launching the Google My Business Partners program [with] a directory of trusted partners.

Google is also recommending steps that local business owners should take themselves:

  • Make callers prove they’re from Google.
  • Claim GMB pages.
  • Understand that ranking claims are probably fake.
  • Don’t respond to robocalls.
  • Use the Do Not Call Registry.

The partner directory will be especially helpful. Litigation is also critical. To the extent that Google sues and wins, it will be a deterrent to firms (within the reach of US courts) trying to take advantage of the ignorance of small businesses.

Source: ‘Ralph Recommends…’ Newsletter Announcement on ADM Professional Community

“Ralph Recommends…”
eNewsletter Publication Launch Announcement

Ralph Paglia, "The Godfather of Automotive Digital Marketing"Having been the Editor-In-Chief and managed the ADM Professional Community for over ten years now, it seems that every technology development, software and application being sold to car dealers, along with various service provider programs and just about anything somebody conceives of that they would like to sell car dealers has been pitched to me at some point…

Usually in the form of a product demonstration, sometimes starting with a two minute “Elevator Pitch”. The vast majority of time I have considered incumbent upon my obligations to this professional network to listen, watch, take notes, try it out, talk to any dealers currently using the widget in question and generally become aware of what it is, what it costs and what the claimed Return On Investment (ROI) is all about… The how when and why of ROI.

More background and qualifications; For over 30 years I have been blessed with work and assignments that required me to (in addition to selling cars) create product and solution development “Road Maps” used to guide future products and when they would be released for companies such as American Honda Motor Company, Reynolds, ADP (CDK), JD Power, BMW North America, Tier10 Marketing, Ford Motor Company, Toyota Motor Sales, Mercedes-Benz USA and a few more. These projects resulted in me spending countless hours with software developers, project planners and executive committees as we defined what car dealers would need to stay competitive and to improve what customers experience when dealing with them.

As a result of this exposure, combined with my experience in selling cars while managing car dealerships, solution development and professional services to car dealers while working at the Reynolds and Reynolds Company, ADP Dealer Services (CDK Global), Tier10 Marketing, Courtesy Chevrolet and many other dealerships… I have developed a strong sense of which products and services do what, how well they do it, and whether or not they are worthy of consideration by car dealers, auto groups and enterprise organizations.

You may be thinking “Everybody has an opinion”, and you are correct… However, my opinion comes from an auto industry veteran with Bachelor of Science and Masters Degrees in Business Administration, who has implemented software and business procedures in car dealers that I served as a manager, as well as being employed by the largest software development companies in the car business to serve as Practice Leader and manager of consultants deployed to assist car dealers in the implementation of technology, people and process designed to drive improved business results and customer experience. I know what I am talking about when it comes to deploying solutions in car dealerships and I am eager to share my experience, insights and wisdom on the use of existing solutions and those to come in the future.

Several weeks ago I was approached by a couple of automotive professionals who I consider to be “Thought Leaders” within our industry… They asked me to consider creating and publishing a weekly newsletter with insights, opinions, guidance, reviews and recommendations for car dealers focused on products and services, along with sharing best practices and what I see as future developments, strategies and tactics in the car business.

My initial response was to say I am already doing this with the ADM Professional Community website and network. These people, who I consider to be wiser and possibly more intelligent than me, responded with, “Maybe so, but you currently provide your members with something that they must go to your site to find and see…” Which I acknowledged was true. They went on to say, “We want to create a newsletter that is delivered to members of the ADM Professional Community and additional professionals who are not members, but who work in the auto industry, which will become a valuable resource throughout the car business…”

I agreed and so the genesis of the “Ralph Recommends…” eNewsletter has come to be. Within the next couple of weeks you will be sent the first issue of “Ralph Recommends…” and I would like to ask for your help. Please take a look at what is in there and let me know your opinions about what’s good, what’s bad and what you would like to see. You can send me an email to RPaglia at Gmail dot com, a message via this network, Facebook Messenger, Twitter DM, call or text me on my cell at Five Zero Five, Three Zero One, Six Three Six Nine, or contact me in whatever manner suits you… But any feedback will be appreciated and considered as I move forward with the “Ralph Recommends…” project.

“Ralph Recommends…”

I look forward to hearing back from each of you…

Ralph Paglia
Editor-In-Chief
AutomotiveDigitalMarketing.com

‘Ralph Recommends…’ eNewsletter Launch Announcement

Sales of sport utility vehicles were particularly strong this year, according to joint research by J.D. Power and LMC Automotive.

Total light-vehicle sales are expected to finish out 2017 at 17.2 million units, a decrease of 1.9% from 2016, according to joint research by J.D. Power and LMC Automotive, with retail light-vehicle expected to finish the year just below 14 million units – down 1.1% from 2016.

Having personally invested 5 months into working in car dealerships during 2017, on the front lines managing digital marketing campaigns and supervising BDC operations… I can attest to the simple reality that trucks and SUV’s were where we were able to generate excitement and consumer response in 2017. At Tier 3, we feel the mood of the car buying population far sooner than reflected in sales numbers. 

The continuing shift of sales percentages into more trucks and SUV’s and less conventional passenger cars is reflected in the responsiveness that automotive consumers have to sales promotions and campaigns on each model type.

Looking forward to 2018, both firms expect total light-vehicle sales forecast to top out under 17 million units, a decline of 1.2% from 2017, while the forecast for retail light-vehicles is 13.8 million units for 2018, a decline of 1.4% from this year.

The big surprise for 2017 turned out to be the strength of sport utility vehicle (SUV) sales, according to Jeff Schuster, LMC’s senior vice president of forecasting.

“SUV demand has been robust and is expected to finish up 5% in 2017 from 2016 and a market share of 43% of total light-vehicle sales,” he said in a statement. “The SUV reign will continue for the foreseeable future [as] SUVs are expected to  account for 50% of new model activity in 2018, which will help push the share of total sales to 45% and continue the segment’s volume growth, even as the total market is projected to contract further in 2018.”

He added that light truck models overall accounted for 68% of new-vehicle retail sales through Dec. 17 – the highest level ever for the month of December, making it the 18th consecutive month above 60%.

 

Banks Report: Lithia Acquires DCH Car Dealership Group

The Banks Report: Lithia Motors Acquires DCH
by Cliff Banks

The Banks Report has learned that Lithia Motors has entered into an agreement to acquire the DCH Automotive Group and is waiting for manufacturer approval.(Update — Lithia subsequently sent a press release saying the deal has been completed).

Lithia executives are scheduled to be in New Jersey Monday meeting with DCH executives. The deal is expected to close in the fourth quarter of this year.

Lithia will pay $340 million in cash and $22.5 million in stock for DCH. This likely will be the biggest dealership acquisition in the U.S. since January 2002 when the Sonic Automotive Group acquired the 16-dealership Massey Automotive for close to $200 million.

This acquisition will bring the industry total for 2014 to 121 buy-sells. This is the second monster deal to be done in the last couple of weeks — the David Wilson Automotive Group acquired Fletcher Jones’ Las Vegas Toyota store for $75 million at the beginning of June.

DCH has 25 dealerships (DCH’s website says 27 stores, but TBR combines Toyota with Scion for its records) selling 32 brands in California, New Jersey and New York. It’s one of the top 10 dealer groups in the country when ranked by new car sales, and generates an estimated $1.8 billion to $2 billion a year in revenue.

Chairman Shau-wai Lam’s father, B.Y. Lam, began what would become DCH Automotive as a trading company in Shanghai in the 1930’s. A few years later, he established Dah Chong Hong Limited in Hong Kong. He opened an American subsidiary, DCH (USA), in New York in 1948 focusing on importing food and textiles and trading in commodities.

The USA division of DCH moved out of the import and trading business in 1977 to focus on selling cars. Unable to obtain a dealership selling one of the domestic brands, DCH was given an open point by Honda in Paramus NJ, the company’s first dealership.

In 1979, Lam, who at the time was DCH’s youngest executive, was sent to California to open DCH’s second store, Gardena Honda. Within four years, it became the top selling Honda store in the country. Lam was named president in 1988.

Following the parent company’s sale in 1992, Lam’s family and the Wing On Group of Hong Kong acquired DCH acquired DCH.

DCH President George Liang will continue running the company reporting to Bryan DeBoer while Lam will be on Lithia’s board.

In 1996, led by Sid DeBoer, Lithia Motors became the first dealer group to go public with five stores selling 19 different brands.

Not including the DCH acquisition, Lithia has acquired eight dealerships this year – including four in Hawaii – and nine stores in 2013 bringing its total to 101 dealerships operating in 12 states. It’s now the eighth largest group in the country having generated more than $4 billion in total revenue in 2013.

DeBoer’s son, Bryan, took over as president and CEO of Lithia in 2012.

He’s transformed the group from being a centralized corporate-run firm to being a group of decentralized entrepenurial stores. The company has had a great run since 2012. Company shares were trading about $22 a share two years ago. Recently it’s traded as high as $80 and is now hovering in the $78 range.

Not including acquisition costs, the purchase should add $0.12 to $0.14 to earnings per share in 2014. Annually, adding DCH should increase EPS anywhere from $0.65 to $0,75.

The DCH acquisition will add more than $2 billion in annual revenue and will be Lithia’s first foray east of the Mississippi. Once the acquisition is completed, more than 20% of Lithia’s revenues will come from the east and DCH’s New Jersey and New York stores.

For the most part, the DCH stores matches Lithia’s acquisition strategy , which is to find exclusive domestic and import franchises in midsized markets and exclusive luxury franchises in larger metropolitan markets. The acquisition provides Lithia a foothold in the Los Angeles and New York markets.

Lithia executives are hosting a conference Tuesday morning at 9:00 am to discuss the acquisition with investors.

DCH’s 25 dealerships selling 32 brands

California Dealerships

  • DCH Acura of Temecula
  • DCH Tustin Acura
  • DCH Audi Oxnard
  • DCH Chrysler Jeep Dodge of Temecula
  • DCH Gardena Honda of Oxnard
  • DCH Honda of Mission Valley
  • DCH Honda of Temecula
  • DCH Kia of Temecula
  • DCH Toyota Scion of Simi Valley
  • DCH Toyota Scion of Torrance
  • DCH Lexus of Oxnard
  • DCH Lexus of Santa Barbara

New Jersey Dealerships

  • DCH Montclair Acura
  • DCH Millburn Audi
  • BMW of Bloomfield
  • BMW of Freehold
  • DCH Academy Honda
  • DCH Kay Honda
  • DCH Paramus Honda
  • DCH Freehold Nissan
  • DCH Brunswick Toyota Scion
  • DCH Freehold Toyota Scion

New York Dealerships

  • DCH Honda of Nanuet
  • DCH Toyota Scion City, Mamaroneck
  • DCH Wappingers Falls Toyota

Source: http://www.TheBanksReport.com

Become a subscriber to The Banks Report and get access to more in-depth analysis on the dealership buy-sell market — including the industry’s most comprehensive list of acquisitions going back to January 2013.

You don’t want to miss The Banks Report 2014 Update on Dealership Buy-Sell Activity — available on Monday June 16th.

Report on 2013 Dealership Acquisitions
The pace of automotive dealership buy/sell activity was moderately brisk in 2013, with 180 dealerships accounting for 260 franchises changing owners in the U.S.

The report, the first of its kind in the industry, provides data and analysis by brand, public and private dealer group acquisition. The report, including a list of all transactions compiled is available in Microsoft Excel to subscribers.

The Social Car Sales Daily
Exploring the world of selling cars using social networks!
avatar Published by
Social Car Sales
05 June 2013
Business Stories Education Technology Environment Politics #automarketing #breakingnews
Today’s headline
The Most Creative People Of 2013: A Q&A With Sarah Simmons
avatar Shared by
Fast Company
thumbnail live­.fastcompany.com – The model, as Simmons freely admits, is a hack. She gets lower rent and loaner furniture; her pay-in-advance model reduces risk; and she collects fees from the guest chefs. But these tricks also ma…
Advertisement 4213-html_csssq.jpg
Learning HTML & CSS shouldn’t be difficult.
Master Trainer, Mark Lassoff, will teach you everything you need to know to create a creative and professional web site in 4 hours. 10227f58ad
61 contributors – featured today:
fc-logo-300x300_normal.gif new-dawn-of-radio1-300x298_normal.jpg wiredgadgetlab_normal.png Fortune_Icon_57x57_normal.png eab60d838d5c4bb20fa52f0577a2c698_normal.jpeg
Read paper →
Powered by logo

Ralph PagliaPresident
Automotive Media Partners, LLC
www.RalphPaglia.com
http://LinkedIn.com/in/RPaglia
http://Twitter.com/RalphPaglia
http://Facebook.com/RPaglia
http://YouTube.com/RalphPaglia
http://ADMPC.com
www.dealerELITE.net

GoogleFirstGen.png