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Jul 7, 2018

Actor Mark Wahlberg now Owns a Dealership

In a move to grow his business portfolio, Marky Mark Wahlberg is breaking into the automotive world with a dealership in Columbus, Ohio. Yes, you read that correctly.  Mark Wahlberg, former teen pop idol, and current actor extraordinaire, will now be selling Chevy’s in Ohio.

The dealership is aptly named Mark Wahlberg Chevy. Wahlberg is partnering up with Jay Feldman, a veteran Chevy dealership owner who owns eight dealerships throughout southeast and mid-Michigan. He and Wahlberg began searching for their first dealership early in 2017 and the Columbus opportunity emerged later in the year.

Feldman and Wahlberg are no strangers. The pair have been friends for several years and recently became partners in a Wahlburgers restaurant in Cleveland. They are also the master franchise for the state of Georgia.

The Fighter actor says he’s ready to break into new industries, "I am continuously looking for ways to innovate my brand and engage in businesses I am passionate about," said Wahlberg in a press release.  "I love cars and the chance to work with an experienced, proven dealer-operator like Jay and represent an iconic brand like Chevrolet inspired me to get involved."

Owning a Chevy dealership adds to Wahlberg's portfolio of business interests that includes a movie production company, a health and wellness company, a water line with music mogul Diddy and a Wahlburgers restaurant chain that is currently franchised throughout 14 U.S. states and Canada.

"The Wahlberg brand is all about Americana," said Feldman. "Joining forces to sell and service Chevrolets with the magnetic draw of the Mark Wahlberg name allows us to do something special for the state of Ohio and the greater Columbus area."

The duo plan to open additional dealerships together in the future.


 

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Jul 7, 2018

Searching for Fresh Talent in the Automotive Industry

For today’s story auto manufacturers are looking to track down its next generation of employees, as a key section of its workforce ages and retires. According to a recent report from MiBiz, Benteler Automotive Corp., a supplier for automakers will see 66% of the company maintenance technicians “retire out of the workforce over the next few years.”

The retiring group of about 60 employees works for automakers at various Michigan manufacturing facilities. The proposed plan to replace them is an apprenticeship program, which is a 5-year program that works in conjunction with Kalamazoo Valley Community College.

Speaking about the plan to replace the retirees, Moses, a manager at a Benteler Auto training facility said in a statement to MiBiz, “The guy I am looking for, someone else already has him…It really takes growing your own (workforce) now to have a sustainable long-term plan for the normal attrition of retirement.” The report indicates using the apprenticeship program used to be an auto industry norm, and is now getting more and more looks as top talent can be difficult to find.


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Jul 7, 2018

CDK Global to Acquire ELEAD1ONE

CDK Global has officially announced today that they have bought EleadOne. Over the weekend there were rumors this was going to happen. But this morning CDK published a press release confirming the rumors saying, “As we looked at how best to rapidly address the needs of dealers in today's evolving marketplace, we determined that ELEAD1ONE's centerpiece CRM offering and fully integrated suite of layered applications fit well with our diversified product offerings.”

Brian MacDonald, president and CEO of CDK Global says that ELEAD1ONE is well regarded and has customer service capabilities that they are excited to have in their umbrella of skills, “ We look forward to helping dealers deliver a great customer experience with our combined products and services."

ELEAD1ONE’s CRM system is what drew CDK to acquire the company. Until now, CDK did not have a CRM platform, and each company is excited for the future. "Together with CDK, the integrated companies will leverage vast resources to continue to invest in state-of-the-art information technology, innovative software application development, and highly effective communication platforms that emphasize superior user experiences with significant measurable ROI and reporting. Together we remain dedicated to focusing on innovation, support, and delivering the highest quality technology, products and services,” said Judy Hathcock, founder and president of ELEAD1ONE.

Only small details of this business acquisition are public. How much CDK acquired ELEAD1ONE for was not made public, however more details are expected to be released once all the I’s are dotted and T’ are crossed. 

***UPDATE 4:20 7/16/2018 READ THE UPDATE BELOW***


Speaking directly to DrivingSales News, a CDK spokesperson says customers have been notified via the press release, but right now there are no specific changes to current customers products because the acquisition isn’t quite official, “ A public announcement was made this morning and each company is responding to questions from its customers.  Of course, the companies remain separate until the transaction receives the necessary approvals, so for current customers, it is business as usual.”

As far as the merger affecting individual dealerships, that is yet to be determined, although the CDK spokesperson says they believe this will only improve dealerships current products, ”We believe this is a strong positive for customers at both companies.  Dealers will benefit from the rich and fully integrated suite of front office layered applications which will deliver greater experiences to dealers than either CDK or ELEAD1ONE can currently provide separately.”

So when will the official merger take place? Well The transaction is awaiting necessary approvals and no timing has been announced.

Until then, what do you think of this merger? Will this be a good thing, or a bad thing for the automotive industry and dealerships?

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Pierre Legault

H Gregoire Group

Jul 7, 2018  

This is a major acquisition that may reshape the current CRM/DMS scene. It will be interesting how CDK will cope with ELeadOne integrations with other DMS. The opposite is also true: How will other DMS that already integrate with ELeadOne react? We are talking about one of the top CRM joining one of the top DMS. I will be watching this unfold.

Michael Harwood

McCombs Ford West

Jul 7, 2018  

 

CDK has Connected Customer CRM, Desking, Equity management, etc....they are buying the clients. We have eLead One so I better prepare myself for a switch since it looks like the CDK platform is better than the eLead One Platform. 

C L

Automotive Group

Jul 7, 2018  

Wonder if we will start to see more of these types of acquisitions. Seems like all the big boys want to offer an all in one solution. DMS, CRM, Website, etc. 

Derrick Woolfson

Beltway Companies

Jul 7, 2018  

I wonder, too, if the acquisition will hurt the DMS's who compete with CDK whose clients are using EleadOne. I also imagine that in order for the acquisition to go through that CDK will cut a lot of the EleadOne employees out of the picture, which can hurt the end-user experience depending on how they cut the workforce. 

Jul 7, 2018  

I foresee other DMSes looking to strengthen CRM ties elsewhere. 

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Jul 7, 2018

Women Offering Support in the Workplace


Times are changing inside the automotive industry. From increasing technology to an increase of women being hired.

In this edition of Women In Automotive, we’re featuring someone whose passion for online technology has boosted her automotive career.

Meet Lauren Wolfe. Her career has recently come full circle. 20 years ago she worked for CarsDirect.com helping to sell cars online. Now she’s working at a trailblazing company doing the same thing, but more modern, it’s called Drive Motors.

“To me I think it closes the loop on something I started so long ago.”

Recently hired as the Senior Manager of Consumer Experience for Drive Motors she helps dealerships launch their online checkout experience. But she started out in a very different position inside a luxury dealership with her mom, “My first job was working as a receptionist and customer service agent at a Mercedes store where she worked.”

In fact, Lauren’s mom paved the way for her to enter the auto industry and Lauren was able to work with her and learn from her since the very beginning.

“I have watched very few women, and today more women, but very few women in the industry and enjoyed the guidance of my mother until she retired a few years back.”

Acknowledging that the automotive industry isn’t the easiest for women, Lauren stays because she has a passion for the work and loves that the automotive and technology field are finally working closely together.

“For the first time in our industry's history we are beginning to spearhead technology. We are finally seeing us be tech leaders as opposed to the historically ‘tech behind the times.’”

And when it comes to more women working in this industry, especially the dealership setting, she says women are successful, because they are women, “I can’t tell you how many times in my own career let alone just witnessing it in the store that I see customers walk past the male salesperson to work with a female because they feel more comfortable.”

And finally, like most industries throughout history getting more women involved will happen. But there needs to be patience, and lots of support, “As we all join together we will have our own space and equality as well.”

To read more about Lauren and her accomplishments, click here!

How have women influenced your career inside the automotive sector??

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Jul 7, 2018  

Inspiring post! My mentor and top seller was a tenured woman when I started 16 years ago. Mary Sagona. On a staff of 28 sales people, 3 were female. All the others worked in clerical and admin. I am honored to see how much this has changed. 

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Jul 7, 2018

Are Millennials Killing The Car Industry?

Where have all the drivers gone? Something shifted with regards to our driving behaviors during the mid 2000's and we simply started driving less even though the population continued to grow.

Are Millennials Killing The Car Industry

So many different factors may have contributed to this decline: economic factors, gas prices, family dynamics, people working from home, and changes in air travel activity. General family dynamics have changed as well - younger people today simply don't need to go as many places as we needed to at that age - their connected lifestyle has changed the entire concept of ownership and the need to physically go somewhere to acquire something is different. Want to buy something? It's simply a click away.

Consider this statistic: Today's 20-something Amercians drive approximately 20% less today that their parents did while they were in their 20's.

The question remains though, what happens when this segment of the population ages, moves out of their parent's houses, enter the professional workforce and start their own families? They will eventually need vehicles. And when they do enter the market it could create a much needed buying spree. Or, will their historical activities and future needs create a new standard of automotive shopping behavior and disrupt the retail industry even further?

The projections for the future see three possible scenarios, according to a research report from The Frontier Group and the US PIRG Education Fund. These scenarios could vary between: Drivers will re-enter the market and driving will pick up to near-normal levels, drivers will continue to maintain current activities and the trend will be an enduring shift or there will be a full reversal and driving will continue to decline. One contributor to that decline may be the introduction of ride sharing services like Uber, ZipCar and other companies providing cost effective, convenient ownership alternatives. The Frontier Group is quick to point out that all three of these scenarios predict the future outcomes to be below the anticipated historical trend line.

So, regardless of where the trends actually fall dealers will be faced with a different marketing challenge: Connecting with a segment of automotive shoppers who have different needs and an entirely different experience with online shopping and ownership.

 

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Kelly Kleinman

Dealership News

Jul 7, 2018  

No way, just the TV as an entertainment platform.

William Phillips

Automotive Internet Management

Jul 7, 2018  

As another option, possibly their laziness has produced less of an ability to purchase?  I want to be a think tank that gives enough possibilities that one has to be right.   Reality is coming to the Millennials, and that can be taken to the bank.  

Derrick Woolfson

Beltway Companies

Jul 7, 2018  

I would offer that the "millennial" buying patterns and trends can be analyzed by location. Namely, previous generations lived in more suburban/rural areas. Whereas, it is evident that "millennials" tend to prefer urban areas. In which case they can walk or use public transportation. Another huge impact is the "student loan" issue where many of them could be paying as much as $4-500 per month on their student loans. Add $1,200+ in rent it could be a bit tricky. Another concern, too, is their lack of budgeting or inability to manage their finances. Look at their average credit score. It is not pretty.  Personally, I could not survive without a vehicle. That sense of freedom is invaluable to me. I also commute. But then again, not the average "millennial" as I much prefer a suburban area, and own a home. 

Patrick Bergemann

Image Auto LLC

Jul 7, 2018  

Millennials are reaching a point where they'll regain their buying power. Student loans are an undeniable issue for their financials, but there's also a huge difference in the way they communicate.

They look for convenience and empathy. So many dealers are trying to force every shopper to buy the dealer's way. Most shoppers will deal with it and badmouth the experience to everyone they see, but a millennial would have no problem just avoiding the process all together. They'll blame the color of the car as a reason not to buy instead of pointing out that they see countless cosmetic scratches that could have been buffed out.

The fact of the matter is that in a transparent digital world, connecting to consumers is the key to earning their trust. If price and numbers actually mattered more than emotions and feeling, the commercials with a dealer yelling "rockbottom prices" in the middle of their lot would actually work.

AdWeek did a study of how empathy creates a positive brand experience that makes sales easier due to a personalized, friendly experience for the user. A dealership in Phoenix created a buying experience around millennial shopping trends to connect better.

Even the SVP of Customer Experience for Drive Motors stated he doesn't want to buy a new car because he doesn't want to go through the hassle of the buying at a dealership and HE'S IN THE INDUSTRY!

Reality isn't coming for Millennials. It's coming for dealers. Adapt to new standards of omni-channel business or get acquired because you're stuck in your ways and blaming problems on generations and external factors.

Jason Volny

DrivingSales

Jul 7, 2018  

William Phillips, I have worked and currently work with hundreds of millennials. I would argue that They aren't lazy, they just have different priorities, and owning cars just doesn't seem to be high on their list.

Jul 7, 2018  

 Millennials are the largest generation in human history and have so much buying power it is scary. It's mandatory to understand their buying habits and cater to their new approach vs condemning the up and coming due to the environment that is bringing them about. 

William Phillips

Automotive Internet Management

Jul 7, 2018  

Jason and Patrick   

Also work with thousands of Millennials in dealers currently and they are as a group lazy, self entitled and less smart than they think they are.  Not a DS market study or one young inexperienced opinion.   Reality is coming for these and all lazies regardless of age.  (Like the reality of signing for a student loan and paying the debt you signed for, or believing its someone else's problem you signed)   

Dealers have, and will also continue to have a reality check as their practices must change.   

That wont be with the habits of superior elevated inexperience children, given to much credit, and told they deserve a safe empathic place to be and purchase.   Cant wait to start Snow Flake motors where you can buy with just your empathic score.   Then have it acquired, by an omni-channel (zero actual financial state value company) for market share data value.   

Data and experience speaking not theory 

 

Patrick Bergemann

Image Auto LLC

Jul 7, 2018  

I don't think anyone even implied that we were going to start taking feelings as credit or payment for vehicles. The driving point for empathy is in communication. It's a different demographic.

Take toys for example. A kid would watch the commercial where the toy comes to life, but a parent couldn't care less because they know it's all creative liberty for a toy that will most likely disappoint their child. You could make a commercial where kids actually use the toy and have fun, but it won't get the child as excited.

Millennials are the same way. They communicate differently. You can win back their favor in communicating ways they actually pay attention to. There's plenty of data to support how the communicate across a variety of industries. LinkedIn's recent study highlighted ways to retain employees and found that millennials would take a pay cut for a workplace that makes them feel valued.

Baby boomers keep calling them lazy entitled snowflakes just because they work differently and instead of either party trying to understand the other so they work together, they just keep dismissing each other's opinions.

No one will win if all we do is force the opposing party to do things our way. Data shows where we've been, surveys and market research show us where the people we serve want us to go. If we want to succeed, we should move towards serving them the way they want to be served.

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Jul 7, 2018

BMW Partners With Veterans and Camp Pendleton

A new program is helping our Nation’s Veteran’s get jobs… AND it’s helping the automotive service labor shortage at the same time.

BMW of North America and Marine Corps Base Camp Pendleton are supporting a new initiative using the work ethic of U.S. Marines to “produce specialized automotive technicians who will help relieve the labor shortage.”

The automotive Industry is growing in every direction with no signs of stopping - but the country is being forced to slow its progress. Why? Though economic conditions are good, there’s a lack of skilled workers (e.g. machinists, welders, auto/diesel technicians).

One potential reason for the shortage is the societal emphasis on four-year college degrees as the only way to guarantee a steady career, and the devaluation of a technical education. Still, industries are scrambling to hire technical skilled laborers.

Also involved with this initiative is the Universal Technical Institute. UTI is aware of the labor shortage and is trying to counteract it by supplying the transportation and construction industries with highly trained technicians.

Combined with the BMW Military Service Technician Education Program (MSTEP), a 16-week program providing exclusive training to active-duty personnel at Camp Pendleton, these Marines are helping the auto industry.

The course includes how to diagnose and service premium vehicles, and provides personnel with hours of hands-on training working under a BMW’s hood. BMW’s require specialized technicians with in-depth knowledge, as they are some of the most advanced vehicles on the road.

MSTEP teaches students the latest in engine tech and mechanics, as well as manufacturer-approved processes for disassembly and reassembly of high-performance engines and other fundamentals to keep the vehicles running smoothly.

The engine is just one component taught; MSTEP also teaches its students how to access and interpret BMW computer codes, and how to diagnose and repair electrical problems.

During the program, BMW will actively help students get job interviews at its dealerships. Program graduates are recognized as Member Level BMW technicians and earn factory credentials. Jobs are not guaranteed, but the accolades make them suitable candidates to work at any BMW service center or dealership.

With “the transportation industry’s strong demand for highly skilled and trained talent, there has never been a better time to be an automotive technician,” UTI President and CEO Kim McWaters said at a celebration honoring the three-way partnership.

MSTEP provides military personnel with a chance to learn a marketable skill they can use to build their civilian careers after they’ve served their tours of duty, qualifying them to work for a premium car brand and making them invaluable resources for BMW service centers and dealerships.

Brigadier General Kevin J. Killea, commanding general for Marine Corps Base Camp Pendleton, said he recognized the value in MSTEP helping “transitioning service members prepare for a successful career outside of the military ... and find employment as BMW technicians.”

BMW of North America, trying to find creative ways to solve the current labor shortage, is hoping MSTEP will help supply its dealerships and service centers with specialized technicians with military work ethic and strength.

“The skill set these men and women will bring to our dealerships is invaluable,” said Bernard Kuhnt, president and CEO of BMW of North America. “Aside from their unwavering team spirit and discipline, many are already highly specialized in some of the most sophisticated technologies, giving them all the right foundations for a successful automotive career.”

Do you think this will help the labor shortage? Would you hire soldiers from a program like this?

 

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Jul 7, 2018  

I think this is the best post trending right now.

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