Clean Ops Blog

Start Planning for USA TODAY’s Dealer Innovation Award – this is an awesome marketing and PR opportunity!

Nominations for the USA TODAY Dealer Innovation Award will begin at the end of this year for the 2009 contest.

Four winners will be chosen and will be featured in a full-page ad in USA TODAY and NADA’s AutoExec magazine. And one grand winner, selected from among the four, will be honored at a special ceremony held in conjunction with the New York International Auto Show, and will receive roundtrip airfare and hotel accommodations for two in New York City and two VIP auto show passes.

If your dealership or one you know has successfully implemented initiatives that resulted in significant energy savings and reduced utility costs, you should nominate that dealership for the award.

Examples include:

•    Switching to more energy-efficient lighting, heating or cooling
•    Adding insulation or coatings to buildings, heaters, or windows to reduce energy use.
•    Increasing exterior plantings to reduce water runoff, provide shade or lower the effects of pollution.
•    Installing more eco-friendly building materials.
•    Creating, monitoring or using equipment differently to save energy or supplies.
•    Recycling or reusing to create less waste.

2008’s Winner was Jim Hand of Hand Motors in Manchester, Vermont.

He saved more than $50,000 by making upgrade to his dealership and by becoming the first carbon-neutral dealership in the state.

Here are some of the upgrades Hand employed:

• Uses 100% waste motor and vegetable oil to heat his new 11,200 square foot service area, saving more than $15,000 a year on heating oil.
• Installed energy efficient lighting that saves another $10,000 per year in energy costs.
• Buys renewable wind energy credits to offset the store’s electrical usage.
• Shuts down all computer terminals at night.
• Installed motion detectors in vending machines so they only light up as a person approaches.

For more information, visit:

http://www.nada.org/ProgramsAwards/DealerInnovationAward/

I’ll be sure to look for the date you can submit nominations and post it on the Clean Ops Blog.

Technorati Tags: clean tech autos, environmental autos, green award, Green Building, green dealerships

“Just as consumers pay attention to what Greenfluencers are saying, so should brands and organizations. In the map of Intelligent Influence, Greenfluencers are crucial stakeholders.”

A variety of studies have been conducted lately on just how much environmentally friendly marketing influences purchasing decisions. We can all agree that taking care of the environment is important, but just how much does marketing the “green” aspects of cars and the dealerships where they’re sold help sales and repeat business?

One study, conducted by Porter Novelli this year of nearly 12,000 United States adults, and posted on www.EnvironmentalLeader.com, found that while about 16% of the population doesn’t care a whole lot about environmental issues, and another 77% are in the middle range – having some environmental concerns and awareness; the remainder – 7% - are very environmentally savvy, and more importantly – they have a strong influence on that group in the middle.

As is happening all over the Web in virtually every industry, most consumers no longer make purchasing decisions on advertising alone. They read blogs, consult user reviews, and engage in other forms of online social media to get more information before buying. This forum is where the “environmentally-engaged” (3%) and “Greenfluencers,” (4%) as the study refers to them, voice their strong opinions, and where a growing percent of those “light” and “medium” green folks in the middle go to get additional information before the buy.

Has anyone like this walked into your showroom or visited your dealership’s website?

Here are the characteristics of Greenfluencers:

They’re younger.

• Greenfluencers’ mean age is 44.4, compared with the mean age for the sample: 46.1. Compared with the overall population, there are more of them in the 18–24 bracket (16% vs. 13%) and the 25–34 bracket (21% vs. 18%) than the sample.

They’re more ethnically diverse.

• In terms of self-described ethnicity, a majority of the overall sample is white (69%), while a smaller percentage of Greenfluencers are white (66%).
•  While Hispanics make up 13% of the sample; they represent 16% of the Greenfluencers.
• “Other” ethnicities (including Asian) are 7% of the sample but 11% of the Greenfluencers.
• African Americans, on the other hand, account for 12% of the sample but just 7% of Greenfluencers.

They’re more highly educated and earn more money.

• In the overall sample, 30% are educated to college or higher, whereas 42% of Greenfluencers have attained that level.
• A higher proportion is employed (78% vs. 70%),
• Greenfluencers have significantly higher household incomes; 44% have a household income of  $75,000 or higher, compared with 30% of the overall population.

The overall sample and Greenfluencers are similar in other ways.

• There’s very little difference in the proportions of the overall sample and the Greenfluencers who are married (63% and 64%) or have children under the age of 19 (34% vs. 30%).
• There’s little difference in their regional distribution; the biggest regional differences are in the North (overall sample, 18%; Greenfluencers, 20%) and Central U.S. (overall sample, 24%; Greenfluencers, 21%).

This definitely sounds like a group of people you’ll want to cater to!

See the full study at: http://www.environmentalleader.com/2008/07/15/greenfluencers-are-small-but-powerful-group-of-consumers/
 

Technorati Tags: environmentally-friendly marketing, green car buyers, green dealership, green influences, Green Marketing, sustainable business

General Motors’ LEED-Gold Certified plant in Lansing, Michigan

For all the flack GM has taken in the marketplace for its gas guzzling vehicles, I have to hand it to them for stepping up to the plate with some solid green initiatives, from focusing on more fuel efficient and less polluting vehicles to their green building programs. As a manufacturer, GM gets double points for being green in both product and practice:

1. Making their products more environmentally friendly, and
2. Making the actual production process of their products more environmentally friendly. 

According to Kimberly Hosken of the U.S. Green Building Council, buildings in the United States consume 40% of our energy. This is why green building initiatives are a cornerstone of today’s clean technology movement.

GM actually built the first LEED-Gold Certified auto manufacturing facility, in Lansing, Michigan, which was the first its kind, not to mention the largest and most complex manufacturing site, to ever receive this level of LEED certification.

Worth viewing, for both information and inspiration, are GM’s promotional videos on their green initiatives:

http://link.brightcove.com/services/player/bcpid824493250

The press release – “GM Opens First-Ever LEED-Gold Certified Automobile Manufacturing Facility” - can be found here:

http://www.gm.com/corporate/responsibility/environment/news/2006/leed-cert_080406.jsp

Despite of the economic doom and gloom littering the media these days, this puts wind in my sails.

Ford, what they hay???

Technorati Tags: clean tech cars, energy savings, environmentally-friendly, Green Building, green dealerships, green manufacturing, green tax savings

• LEED stands for Leadership in Energy and Environment Design. 

• They are the highly welcomed third party company that sets the standard for the design, construction, and operations of green buildings. 

• They also provide resources to building owners and operators for them to be able to equip their buildings to immediately impact performance.

• LEED certification is based on how environmentally friendly and profitable a building is and whether it is a healthy place to live and work. 

Technorati Tags: Green Building, green dealerships, Leed Certification, LEED certified dealership

Recently, another Toyota dealership, Toyota of Rockwall, received the U.S. Green Building Council certification, at the gold level.  This is the second dealership to receive certification, next to the infamous Pat Lobb store, which received a silver standard certificate.  Savings are huge, according to the store managers, saving nearly $10,000 a month on electricity alone, according to the Dallas Morning News.  Not to mention only spending $600 a month on the water bill when they average about 3,000 washed cars per month.  Those savings are incredible.

There’s no denying that going green can save the environment, as well as your wallet in the long run.  There’s also no denying that it takes a bit of capital to get it started.  If you’re considering investing your store in the green campaign, do your research first.  Talk to dealers in your area specifically.  There are a lot of greening options on a local level, for example, choosing landscaping comprised of trees and plants that thrive in your local climate so you don’t have to water as much.  Also, talk to other dealers that have taken action to go green.  What worked for them?  What would they do differently?  Find out what builders they used and investigate your own.  My own limited research on the subject reveals that Gensler Architecture was the builder for both the Lobb and Rockwall Toyota Stores.  You can check Gensler here. 

NADA wants you to be prepared too, if you’re looking to make your store green.  Click here to check out a list of Do’s and Don’ts for going green with your dealership.  Your colleagues are your biggest asset when it comes to researching, comparing, and brain storming ideas for all practices, including going green.  Heck, that’s why we’re at DrivingSales isn’t it?

Technorati Tags: Green Building Council, green dealership tips, Toyota of Rockwall

Greening a dealership is a very noble feat in terms of contributing to the environmentally friendly cause that our society is currently pushing.  Not only does it reduce energy expenditures, it also, in the long run, helps reduce costs to your store.  But wait, the savings don’t end there.  Greening a store can have a direct impact on the traffic you bring into your store and the subsequent sales. 

That’s right, this LaFontaine Automotive Group dealership made huge strides to create a green dealership, including the use of recycled water, biodiesel, and housing their own geothermal pump.   And their commitment to going green actually increased their sales!  People drove from all over the state to purchase a car from their store because they were going green.

Check out the video clip here.

Is going a green a guarantee for all dealership that their sales will increase within hours, as it did here?  Not necessarily, but with the immense popularity that the going green initiative has, there’s nothing to lose by giving it a try.  Oh yeah, and did we mention it is good for the environment?

Technorati Tags: environmentally friendly dealerships, geothermal pump, green dealership, increased sales

Technorati Tags: green car dealerships, green car maintenance, green checkup month

Recently I had a great conversation with Chris Henderson, operations director, and Matt Rader, green building cost segregation director, of SourceCorp Professional Services, the leading provider of specialized tax services in North America. Undoubtedly, the idea of dealerships becoming environmentally sustainable is a story that makes all of us feel good. But when it comes to “going green” being financially viable, these guys are where the rubber hits the road. SourceCorp has been providing LIFO accounting services to dealerships for over 25 years, and now offers green building tax deduction analysis and certification to help dealers get the maximum tax advantages for green building practices.

A special thanks to Doug Morrell, SourceCorp’s director of marketing, for introducing us. I was doing a little research on my own, and “cold called” Doug, and he immediately put me in touch with Chris and Matt, who had so much information to share that it made my head spin. It’s always best to get information straight from the horse’s mouth, so I encourage anyone interested in learning more, to contact Matt and Chris directly. I’ve included their contact info below.

Here are some key takeaways from our conversation:

The Best Dealership Candidates for the 179D Tax Deduction

The 179D Tax Deduction offers a tax deduction of up to $1.80 per square foot for improving the energy efficiency of your existing commercial buildings or designing high efficiency into new buildings. The Energy Policy Act of 2005 includes a tax deduction for investments in “energy efficient commercial building property” designed to significantly reduce the heating, cooling, water heating, and interior lighting energy cost of new or existing commercial buildings.  The deduction applies for the years 2006, 2007, and 2008, and it’s expected that it will be extended. So, dealerships built within the past three years will most likely be eligible simply due to general environmental improvements in building practices over the past few years.

What do older dealerships do?  While making environmental upgrades does come with a cost, Chris noted that it’s negligible - at a 3-5% premium, and will pay off in the long run. As a marketer, I know that going green can also pay off handsomely in great marketing and PR for the dealership in the short run. Let your customers and local news agencies know your dealership cares about the environment and is doing it’s part to save energy, reduce waste, and create a healthier environment – both in the store and outside.

Easiest Ways to Go Green and Get the Tax Deductions

Lighting

The easiest and least invasive way for dealerships to implement environmental upgrades is with lighting. LED lighting technology, in particular, is leading the way in environmentally sustainable lighting. There’s more upside for bigger dealerships, as the deduction is measured in watts per square foot, with a $0.60 per square foot savings applied. However, even smaller stores can reap rewards in terms of energy cost savings.

One firm that Chris and Matt recommend for energy efficient lighting is LED Green Power:

LED Green Power
www.ledgreenpower.com

John Regan
Phone:  (831) 425-7922

Lindsey Lewis, co-author of the Clean Ops Blog also provided information on lighting in the post: “Going Green: Lighting.”

http://drivingsales.com/blog/cleanopsblog/2008/06/07/going-green-its-the-little-things-part-i-lighting/

LED isn’t the only type of lighting that can qualify; it’s just the most efficient.  There are types of fluorescent fixtures, like “T-5” for example, that can help reach the efficiency thresholds outlined in the 179D provision. 
 

HVAC

The next area where dealerships can win environmental benefits and potentially get tax deductions is via their heating, ventilating, and air conditioning systems. Implementing a geothermal heat pump, for instance, can offer a 10% tax credit. These pumps draw heat form the Earth to generate power. Costs for these pumps, as with many other “clean” technologies, are continuing to decrease as they gain wider spread adoption.

Dealers are also utilizing used motor oil as heat oil to reduce their operating costs and increase efficiency.  When installing a system, look for a high SEER or EER rating - the higher the number the more efficient the unit.
 

The Building Envelope

The third area is in the “building envelope” itself.  Proper insulation and “low-e” windows can also reduce energy costs and be used to apply for the deduction. Increasing the insulative properties of the ceiling and walls is also an option.  This could be as simple as adding thickness of the walls to add more insulation or installing very efficient wall systems like a structural insulated panel.  One supplier that can help with this is:

Green-Source Products
1170 Ivanhoe Road
Cleveland, OH 44110
www.greensourceproducts.com/

Joe Westfall
Vice President of Sales & Marketing
Phone: (216) 851-4641
Email: jwestfall@GreenSourceProducts.com

Take the Time to Determine if Your Store Qualifies

With the various pressures dealers are under today to reduce overhead costs, considering every possible tax advantage is worth looking into. And with stories on “going green” flooding the media today, it makes perfect sense for dealerships that have green initiatives to broadcast it as much as possible – just as you do your excellent customer service. Advertise that you’re a green dealership in your print advertisements, window stickers, posters in the store, your website, email campaigns, etc.

I highly recommend getting in touch with the folks at SourceCorp to learn more.

SourceCorp Professional Services: http://www.SourceCorpTax.com

Chris Henderson, Director of Operations
Email: Chris.Henderson@SourceCorpTax.com
Phone: 817.732.5494 x136
Mobile: 817.475.1943

Matt Rader, Green Building Cost Segregation Director
Phone: 817.732.5494 x133
Mobile: 214.762.5198
Email: Matt.Rader@SourceCorpTax.com
 

Technorati Tags: environmentally friendly dealers, green building practices, Tax Savings

Automotive News Hosts Green Dealerships Webinar

Kudos to Automotive News for hosting a webinar on green dealerships.

One of the presenters was Pat Lobb, owner of Pat Lobb Toyota and Scion of McKinney, Texas. Mr. Lobb can deservedly claim the title of true industry thought leader and innovator as Pat Lobb Toyota and Scion is the first dealership to achieve LEED certification from the U.S. Green Building Council.

While the initial first cost premium to set up was 5% to 7%, and the ROI is expected within three to five years – as they say in the MasterCard ads – the benefits to Lobb’s community, the environment, staff and reputation? – Priceless!

Lobb’s 56+ square foot/14+ acre facility is a verifiable poster child for green dealerships. Here are some of the key green features:

The Power of Landscaping - Above and Beyond Sheer Beauty

• The dealership faces east, allowing the hot sun to hit the rear of the building in the evening, and Japanese creeping ivy covers a “Green Wall” in the back, absorbing the heat.
• West and north panels covered in plants also absorb heat from the sun, keeping buildings cooler, and reducing energy use.
• The plants acts as biofilters
o Humidify dry air
o Adding oxygen to building surroundings
o Removes impurities from the air
• The dealership uses landscaping that is native to North Texas, such as buffalo grass.

Building Materials to Reduce Energy Use, Save Money, and Decrease Toxins

• Building material is comprise of an aluminum composite – 95% recycled aluminum
• Glass is “Low-E” - low emissivity – with a high ‘UV’ rating designed to maximize use of natural light to reduce interior lighting requirements
o Helps to control and moderate internal temperature
o Creates comfortable working environment with natural lights and views
o Entry portal made from special “no-lead” glass

Building Features in the Service Area

• High-speed overhead doors in the service area operate during the day to keep service department temperatures more consistent.
• After hours, a steel security door is closed over the high-speed doors.
• Heated in winter by burning waste oil collected from oil changes of customers’ vehicles.
• Remaining waste oil is sold to recyclers who use it to make plastics.

Lighting – More than Just Ambiance

Exterior Lighting Strategy

• Highest outside lighting levels concentration along property edges.
• A dual switching strategy allows lighting levels to be set back to security levels after reasonable marketing hours.
• 400W with a reflective backing versus 750W results in equal light with less wattage.

Interior Lighting Strategy

• Efficiency and emotion-creating elements are hallmarks of the dealership’s lighting design.
o T-5 fluorescent fixtures with electronic ballasts
o Metal Halide lighting simulate sunlight
o Light-Emitting Diode (LED) exit signs use 25% electricity

And a Water Strategy to Boot!

The dealership has its own 8,660 gallon water cistern.

• Captures water from condensation generated by 12 roof top A/Cs and 7 interior A/Cs, plus rain from a roof top collection system.
• Water is used to irrigate the landscaping.
o This landscaping is low in maintenance and uses little water. The irrigation system uses the underground "bubbler" watering system so the groundcover roots are watered, and less water evaporates into the air.
o It is the most efficient way to water any non-turf area, since the exact amount of water needed is delivered at or near plant roots.
o Benefits include design flexibility, healthier plants and the elimination of water run-off.

The Humble Car Wash – a Green Strategy there too

• The car wash is a “closed loop recycled system,” which recycles the water used in each wash.
• Also, a special system is being used to ionize the water in the car wash to eliminate having to blow dry each car.
• This system saves over 66% of the water normally lost in a traditional car wash and leaves a “spot-free” finish.

Education

In addition, Pat Lobb Toyota has earned LEED innovation points for its educational activities. Throughout the dealership, placards specify the “Eco-Elements” of each area. There is an educational area in the store displaying all of the “green” elements used to build the dealership.

Well done, Mr. Lobb!

Technorati Tags: green dealership tips, LEED certified dealership, Pat Lobb

Hello. I work in the car business and Im an environmentalist. I hope you are too. Or, maybe you’re just a dealer who wants to save some money. If so, read on!

This blog is called the "Clean Ops Blog" because its about running "clean" operations in the dealership. You may have heard about "clean tech" the buzz term used to describe all the environmentally sustainable technologies that are being developed these days. Thus, the "Clean Ops Blog" is about utilizing clean tech and clean, green practices in the dealership.

Lets face it: The auto industry has been wearing a stain on the front of its shirt for a quite a while now that says: Big O’Polluter or worse - Passer of Greenhouse Gas. And as someone who works in the car business, I have to say I’m getting a little sick of my old environmental studies major friends from college giving me snide looks when they ask me what I’m doing these days. Frankly, I’m sick of the dirty looks. If you drive a car, you pass greenhouse gas too, so stop pointing fingers.

Yet, those of us who work in automotive are in the optimal position to lead this industry away from outdated business practices and processes and into sustainability. If automotive sets the example other industries will fall into line.

Solutions will need to take place in virtually every aspect of our business lives because environmental health is holistic,it’s about keeping a whole system healthy, not just parts of it.

Going Green in Both Product and Practice

As my friend Jeremy Walker, a clean tech consultant says, "We need to go green in both product and practice." For dealers, increasingly, this is going to mean selling vehicles that are more fuel-efficient and less polluting. Advancing the development of these vehicles is going to depend on a strong marriage of government policies, consumer initiative, and innovation on the part of technologists, entrepreneurs, and the OEMs. Dealers have always said: Produce a great product and we will sell it.

As automotive technologies improve (let’s hope more of it happens in the U.S. yes, I’m a patriot), dealers can focus on improving other parts of the automotive ecosystem. And that’s what this blog is about: how to operate a green, environmentally sustainable dealership, and doing it in a way that addresses all the compelling reasons why:

1. You can save money.
2. Its healthy for your staff, your community, and the planet.
3. Its great PR/bragging rights - because you’re doing something good.

In upcoming Clean Ops Blog entries, look for:

• Examples of dealerships that are defining what it means to run an environmentally sustainable dealership
• How to market the fact that you’re running a clean, green dealership
• Conversations with professionals from a variety of fields, including the OEMs, progressive dealers, and environmental consulting groups that are helping dealers "go green"
• Links to resources that make it easy for your dealership to save money and become more environmentally sustainable.

Here are some great resources to start:

NADA has a joint program with the U.S. Environmental Protection Agency and the U.S. Department of Energy called ENERGY STAR for Auto Dealers - to help dealers save money and protect the environment through energy efficient products and practice

According to NADA, auto dealerships use, on average, more energy per square foot than a typical office building. However, cost effective opportunities exist for significant reductions in the energy used for lighting, HVAC, and other services, while still maintaining lighting quality, safety, and a great customer experience at the dealership.

Here’s more information on this program:
http://www.energystar.gov/index.cfm?c=small_business.sb_autodealer

Here are a few stories on dealerships that implemented green building programs and saved money:

AutoExec
Lean, Mean, and Green
Fourteen ways to help you cut energy costs.
http://www.autoexecmag.com/archives/articles/feature_jul06_01.html

NADA.org
Dealers Reap Cost Savings of Energy Efficiency
http://www.nada.org/energystar/Cover+feature+6-11-07.htm

Dallas Morning News
Toyota Turns Eco-Friendly
http://www.dallasnews.com/sharedcontent/dws/bus/stories/102206dnbusgreentoyota.3184a5d.html

MotorTrend
Chrysler Dealer Becomes First in the Nation to Achieve Esteemed Environmental Award
http://www.motortrend.com/features/newswire/91/29863/

Look for more on this hot topic soon. And we welcome your questions and ideas on this topic!

Technorati Tags: dealership clean operations, eco-friendly automotive industry, running green dealerships