A Swedish meta-study, which analyzes and summarizes studies completed  in the EV field, found that around 150 to 200 kgs of CO2 equivalents (environmental impact equivalent to that of the release of CO2) are produced for every kilowatt hour (kWh) storage capacity of electric car batteries.

The impact isn’t due to any kind of vehicle emissions, and doesn’t even taken into consideration the incremental pollution to landfills from dead batteries. Rather, it’s all about the source of extraction of raw materials including lithium from mines, the processing of raw materials, and production of lithium-ion batteries in factories.

Ironically, a gas powered engine can run for 8 years until it has the same environmental impact as a Tesla Model X. Since the Nissan Leaf has a smaller battery, it takes 3 years to have equivalent impact. That’s the ugly truth folks. For those of us who proudly drive our hybrids and EVs due to environmental concerns (sorry Larry David), we’re driving an illusion. My chosen illusion is that I’m sticking it to OPEC by using less gas.

According to Mia Romare, one of the researchers; “Unnecessarily large batteries weigh more on the environment. One should therefore consider whether one can manage with smaller batteries.”

Even Toyota admits it’s production of the Prius Hybrid emits more CO2 than it’s conventional models due to more advanced componentry which includes a smaller gas engine, and large lithium battery packs.

A 2013 report by the U.S. Environmental Protection Agency’s Design for the Environment program concluded that batteries using nickel and cobalt, (lithium-ion batteries), have the “highest potential for environmental impacts”.  It cited negative consequences like mining, global warming (conflicting data here), environmental pollution and human health impacts.

Although lithium-ion batteries are considered non-hazardous waste, would you be willing to filter drinking water through a funnel consisting of 1,000 lithium-ion batteries and not fear for your life?

The reason why more lithium ion batteries aren't recycled boils down to simple economics: the scrap value of batteries fails the economy of scale test - at $100 per ton, Conversely, the cost of collecting, sorting and shipping used batteries to a recycling center is greater than the scrap value (BRP>SV), so batteries are classified as garbage by you and I. What’s sadly overlooked is that the industry does not factor in the fact that recycling battery metal material like cobalt has a much lower economic and environmental impact than mining raw materials.

The reality is that there will never be a fully environmentally safe technology to replace the combustion engine until either free energy is harnessed or solar energy moves a quantum leap forward. 120 years ago, the streets were covered in horse crap. It was a huge issue as cities stunk to high heaven from road apples and dead horses. The car was supposed to alleviate the issue of such “pollution”, and it did...for a while. The ironic twist is that our green solution - to our green solution of 120 years ago isn’t green at all, regardless of how the media labels it as such.

Kelly Kleinman

The US gov't has closed down all eclectic classified sites that deal with questionable "personal" sections that may deal with sex trafficking.This means that vendors and dealers that list vehicles on Backapage.com, Craigslist.com, and others, are seeing a substantial drop off of traffic and auto leads, and it's being noticed by our industry. Apparently, people like to shop for cars while they shop for companionship.

Vendors that service dealers by listing inventory on Craigslist cheaply, also regularly posted inventory to Backpage.com for free, and got extra bang for their client's buck, especially when Craigslist started charging for automotive listings.  Whereby you'll get a lead in an hour, or at least in the same day by listing on Craigslist, Backpage, would list inventory for free, but you might see a lead show up the next day.  There was far less traffic on Backpage.com, but it was the wild west for hook-up ads, and did drive some leads because of that increase in volume traffic it inherited from Craigslist when Craigslist started to charge for listing inventory.

The Craigslist personal section drove a ton of traffic into the auto section and was apparently a robust source of automotive lead traffic.  That "cruising" traffic that provided healthy automotive leads, has hit a road block and now vendors that don't own their own classified sites on which to list their client's inventory are sweating it out, trying to figure out the most cost-effective alternatives to get inventory visibility, leads, and not lose a client.

DealerLeads.com has been inundated with inquiries.  They own their own classified sites (350 of them), and work on a performance basis which many dealers find attractive.  In fact, one of their sites, usedcarsforsale.com, is a totally free classified site for used car inventory.  Their spokesman says it's free for life so, I'll take them at their word.  It's certainly no Craigslist, but what is?  Still, their sites show up organically in the search engines so, if I were a nervous vendor or dealer who has been listing on a far less "busy" Craigslist, that would be a good place to start.  Anybody have any other cost-effective solutions?

Craigslist says bye-bye to personals:

US Congress just passed HR 1865, "FOSTA", seeking to subject websites to criminal and civil liability when third parties (users) misuse online personals unlawfully.

Any tool or service can be misused. We can't take such risk without jeopardizing all our other services, so we are regretfully taking craigslist personals offline. Hopefully we can bring them back some day.

To the millions of spouses, partners, and couples who met through craigslist, we wish you every happiness!

“Old school selling? Take your automation, I’ll take a smile, a handshake...and sell more than you”, said the 68 year old car salesman from Cleveland, Ohio.  

His comment was brash, and ignorant of facts based on countless studies generated by the top marketing groups in the US. But really, have we gotten to the point of no return with face to face selling?  Have we willingly given devices, and AI reign over how we communicate with other people, or do we have to re-discover the lost art of selling, following up leads, and being responsible dealership representatives?  Could it be a bit of all the above?

Are we that repellent of a profession, or are car salesmen so conniving, and distrustful that we now need to initiate contact via texts, anonymous live video streams, emails, and algorithms defining to us the probability of a lead being truly “in-market” and not just a tire kicker? 

There are thousands of metric tonnes of consultants out there setting dealerships up with state-of-the-art technology that initiates contact with customers, responds to leads, sends emails & review prompts by software, and other clever ways to squeeze dollars out of customers in every inch of the dealership. I even saw one dealer with signs in the urinal asking if the customer was flushing dollars down the toilet by not getting an extended service contract!

WTS, I’m not against automation. My blog site focuses on emerging technology and creates a spotlight in which new and old vendors can wax on about their various solutions, technologies, and philosophies. I do EVERYTHING in my power to help new vendors get huge exposure but...I believe the practice of developing person to person skills  is lost with technology.  Technology dulls our senses, and truncates our ability to communicate with each other the way nature intended.  

Meanwhile, while online yesterday, I uncovered some ancient texts written by some of the world’s greatest sales people, on how to achieve success as a person.  After all, we’re all always selling something right?

Without further ado; here are some success secrets of some of the most accomplished ancient sales people of all-time...just in case your algorithm breaks down.  Notice, these are more like life tips rather than sales advice. It’s about you being the best human you can be, not the best software or sales management tool.  I've included the translations of these texts as Takeaways.

THE ANCIENTS TEXTS

QUOTE: “I determine to render more and better service, each day, than I am being paid to render. Those that reach the top are the ones who are not content with doing only what is required of them.”

-Og Mandino, The Greatest Salesman in the World

TAKEAWAY:  The whole is greater then the sum of its parts and rewards are oft-times bestowed upon us based on effort, effort is energy, and energy is NEVER wasted. Remember, the love you make is equal to the love you take!  Go that extra mile...every day!

QUOTE: “Personally I am very fond of strawberries and cream, but I have found that for some strange reason, fish prefer worms. So when I went fishing, I didn’t think about what I wanted. I thought about what they wanted. I didn't bait the hook with strawberries and cream. Rather, I dangled a worm or grasshopper in front of the fish and said: "Wouldn't you like to have that?"

Why not use the same common sense when fishing for people?”

― Dale Carnegie, How to Win Friends and Influence People

TAKEAWAY: Listen to your customer and introduce them to something they want, not what you want them to have. It’s not about you. They bait their own hooks!

QUOTE: “Never allow two people to do a job which one could do. George Washington observed, ‘Whenever one person is found adequate to the discharge of a duty by close application thereto, it is worse executed by two persons, and scarcely done at all if three or more are employed therein.” -David Ogilvy, Ogilvy on Advertising

TAKEAWAY: If you want something done right, do it yourself!  Believe in yourself, rely on yourself, and stay focused on making sure your customers are happy!  You may hand them off, but make sure you never drop the ball!

QUOTE: “Most people think “selling” is the same as “talking”. But the most effective salespeople know that listening is the most important part of their job.” -Roy Bartell

TAKEAWAY: God gave us two ears and one mouth for a reason.  Fools speak, wisdom listens. The customer will tell you exactly what they want, make sure you can hear it.

QUOTE: “Talk to someone about themselves and they’ll listen for hours.”- Dale Carnegie

TAKEAWAY: Show people you are interested in them, everyone needs attention, be your customers spotlight.  Make them feel warm and bright.

QUOTE: “The reason it seems that price is all your customers care about is that you haven’t given them anything else to care about.” -Seth Godin

TAKEAWAY: Ask questions, listen to answers.  Your customer will tell you why they value what they seek, it will likely never be price first.

QUOTE: “Pretend that every single person you meet has a sign around his or her neck that says, ‘Make me feel important.’ Not only will you succeed in sales, you will succeed in life.” -Mary Kay Ash

TAKEAWAY: People want to feel loved. So do you.  “Do unto others as you would have them do unto you.”  Who said that?

QUOTE: "To build a long-term, successful enterprise, when you don't close a sale, open a relationship." -  Patricia Fripp

TAKEAWAY: Not making a sale isn’t always a loss, if you make a friend, you always win.  

KK

Have you been paying attention to car sales lately...or the lack thereof?  Everywhere you look on the freeway here in Southern California you see SUVs, pickups, and of course, luxury cars.  From what I can see, the same is true for most major metropolitan areas including New York, Miami, Chicago, and Dallas/Ft Worth where pickup trucks are as common as Starbucks is in LA. Car sales continue to decline, and aside from a hurricane or two to inflate future sales numbers, is there anything that can save them?  

Car Sales and Nudibranchs: Endangered Species?

Car sales are down nearly 11% so far this year and the vacuum those sales are leaving is being filled by light trucks and SUVs, specifically crossovers. Purchases of EVs, and hybrids is growing as well, and may be the saving grace of a segment seemingly in the same danger as my favorite nudibranch, Proctonotus Mucroniferus. The decline in auto sales is precipitous and has been collapsing for 4 years...in direct relation to the decrease in gas prices.

In 2011, Obama put forth an initiative for fuel efficiency that mandated specific standards be met by 2025, and the industry spent little time and a whole lot of money complying in a race to meet those standards that were recently reversed by President Trump.  Crude oil markets sustained high price levels in 2011, as the spot price of Brent crude oil averaged $111.26 per barrel, marking the first time the global benchmark averaged more than $100 per barrel for a year. Instead of coming up with a strategy that would decrease oil prices by increasing domestic production, penalizing other OPEC entities, or even stifling futures trading in some way, Obama opted for a longer term solution.

Artificial Price Hikes Enrich Investment Firms and Banks, Spike Small-Medium Car Sales

Even if the price of a barrel of oil is as low as $40, Investment firms and major financial institutions like Goldman Sachs and Citigroup and their unfettered, shady, greed-laden  speculation practices can jack the price of a barrel of oil from $40 to $100. Currently, oil prices are up to nearly $74 a barrel, 36% higher than last year and steadily increasing at a 30 degree upward angle. Is this enough to push prices up enough to dampen SUV and light truck sales?  I say yes...over time.

Although it may not profoundly stifle sales of SUVs and light trucks immediately (to a 10%> drop in sales), it may have that effect in the long run. Remember Obama, the guy who set groundbreaking standards that would have increased fuel economy to the equivalent of 54.5 mpg for cars and light-duty trucks by Model Year 2025?  Automakers have already started to incrementally increase fuel efficiency in SUVs and light trucks, not to 54.5 mpg yet (and now maybe never), but enough to stave off the negative effect of $3.60 per gallon gas prices while the economy is on the upswing. Currently, prices are a dollar less per gallon than when Obama set those standards. We live in good times, but there is a rumbling not just under Yellowstone Park, but the economy as well.

Current Increase in Gas Prices, Repos, Signify the Beginning of a Cycle

As the price of a barrel of oil continues to rise out of the ashes like a fat, greedy, Phoenix, sales of less fuel-efficient SUVs and trucks will slow down as gas becomes too expensive for commuters to afford.  A 10% fall off of sales of SUVs and light trucks in California, where gas prices are highest, will have real impact, and potentially, be enough to flat line sales for those segments. Add an increase in interest rates for subprime borrowers, and you have a recipe for a cyclical downturn in sales for gas guzzlers.

Have you seen the increase in repossessions lately?  6.3 million Americans are over 90 days behind on their payments!  An even more precipitous drop in sales is currently being staved off by really low unemployment rates, but start jacking up gas prices and watch the camel’s back break, gas prices will be that last straw. How many people can even afford those SUVs and light trucks currently being sold in record numbers (rhetorical question)?  Answer is; many cannot.

For Paycheck to Paycheck People; Consider the True Cost of Driving an SUV or Truck

Small and mid-size cars get much better gas mileage than SUVs and light trucks do, it’s not even close. The average in-city mileage for an SUV or light truck is between 19-20 mpg. Those metrics are relative only in optimum driving conditions. The average is probably even less.  Small and mid-size cars average in-city 25-59 mpg if you include hybrids. It’s my conjecture that gas prices may not be an immediate driving force to push down sales of SUVs and light trucks, but I hear the train a comin’.  

Hindsight is Foresight That Happens Too Late

For folks living on the edge, paycheck to paycheck, who want to buy a new SUV or light truck, I urge you to make sure you look at the big picture, and consider the true costs of driving such vehicles for the next several years. History is here to teach us. The oil producers still have a lot of power, and the price of gasoline will forever be artificially pushed upward through market manipulation or even wars. The law of supply and demand doesn't even seem to apply! I chose to buy a Prius when I noticed gas prices were being sucked into the troposphere back in 2011.  I still drive one.

As far as nudibranchs are concerned, and for those of you looking to buy one: https://atmosphereresorts.com/10-things-you-did-not-know-about-nudibranchs/

For those looking to book someone with a fresh outlook on the automotive biz for your expo, convention, discussion panel or Tupperware party, feel free to contact me at Kelly@dealershipnews.com, www.dealershipnews.com

We've had some great discussions regarding auto sales finding a viable platform on a variety of social media platforms.  My contention, fully based on dozens of Facebook campaigns I've actually directed, is that only items with low cogs and a 10x markup can succeed.  This includes factoring in "Save-a-Sale" strategies, upsells, continuity, and bulk buy pricing.  I've never seen anything that sells for over $399 have long term success on FB.  I'd love to hear other folks thoughts!  

Thanks to Josh Wardini at www.webmastersjury.org for the infographic (small part of a huge infographic)

Some of you are wondering why I left out Facebook.  So am I. Realistically though, up until its recent debacle, Facebook has easily been the best social media in which to sell products, and still is at certain price ranges. The issue with Facebook  is CPA when it comes to higher priced items with smaller profit margins. If your COGs are under $5 with a selling price of $79, and laden with up-sells, you just may sell a bunch of units. Not so with cars.  Nevertheless, FB owns Instagram so let’s just overview the two lesser platforms and see how they fit into the mix.

Twitter

Until 2015, Twitter had been adding approximately 12-15 million accounts per year at a 6% growth in ad revenue (over a half billion each year). It’s growth has reached stasis and has slowed considerably to 3 million per year. 54% of its users are between 18-49 years old, which matches the age demographic of those most-likely to buy a used vehicle.  Currently, there are 300 million Twitter users BUT, 79% of Twitter users are outside of the US.  There are 67 million Twitter users in the USA.

My rub on Twitter is that although it started out mostly as a way to express a quick opinion, thought, or Influencer endorsement, it wasn’t visual enough to be engaging.  With the addition of a picture or video to a tweet, engagement increases 150%. The biggest hold back to Twitter was the 140 character limit which is now at 280. It allows you to hashtag more effectively and get more exposure syndication faster (to grow your following) which has long been Instagram's magic bullet. The 280 character limit still limits the platform and because of that, I consider it a supplementary social media platform.  It’s # 3 on my social media list as it is likely yours.

Twitter, the Modern Day Teletype

Do you have a flash sale?  Did the new Camaros come in?  Did you just have a dealership anniversary, or have an exciting new promotion to announce?  If so, Tweet it out! Those event oriented announcements work well on Twitter. Brands, individuals, and media do well on Twitter when they have breaking news to report.  Twitter is more like a modern day teletype that everyone has discriminatory access to. You don’t have to listen to the vapidness of a Kardashian tweet if you don’t want to, but if you’re a car “guy”, you can enjoy exclusive tweets from Drivingsales.com because you have chosen to follow them!  Good Twitter engagement rates vary from .09 to .33%. In plain English, that’s 3-10 engagements per 1,000 followers on Twitter. When I get 5+ likes and a few retweets, I feel pretty good about Twitter and its low bar of engagement.

Instagram Leads All Social Media in Engagement

Instagram is by far the best platform for engagement. Its frequented mostly by 18-29 year olds who make up the largest demographic, followed by Generation X that consists of 34-54 year olds.  It’s noteworthy that most first-time car buyers are actually Gen Xers, not Millennials. 800 million worldwide users attest to it’s addictive gravity. An engagement rate between 3.48% and 6.67% is considered to be high, where an Influencer would expect 34.8 - 66.7 reactions for every 1000 followers on Instagram. Additionally, an engagement rate between 6.67% and 100% is considered to be very high, with expected reactions to be between 66.7 - 100 for every 1000 Instagram followers.  

With the addition of Instagram stories in 2016, another 100 million folks added an account.  Instagram saw 28% growth in 2017 which basically mirrored the loss of 2.8 million under 25 yr. old Facebook users who dumped the platform because their parents “ruined it”.  Instagram is a highly visual medium which makes it perfect for car dealers. Most dealers use it to post pictures of happy car buyers and inventory. In fact, 91% of all Instagram posts have a photo attached.  The speed in which an Instagram post gets a reaction (engagement) is quicker than with Twitter or Facebook, and as mentioned, has a higher engagement rate than either. Here’s why.

You Like My Post, I’ll Like Your Post

Everyone is so darn insecure.  The unspoken rule of Instagram is that if I follow you, you should feel inclined to follow me and like my posts. It becomes a popularity contest with each post as users frequently check back to see how many likes or comments each of their posts generates.  If a dealership has garnered a bunch of followers, they’re hoping that they’ll get more than 10 likes per “car buyer pic post”. A decent engagement gives the dealer the perception that they’re doing something right and reduces a buyers potential cognitive dissonance.  Of course, if the purpose of the post is to congratulate the salesman for being a “sales machine”, it can have the opposite effect.

What I Do

I use Twitter and Instagram to grow my brand visibility.  I have 122,000 legit back-links in just 7 months of incarnation so I know a thing or two about this subject (and others), although I have far more to learn. In fact, if you’re reading this article, feel free to contact me and let’s see how we can collaborate! But I digress, Twitter is the more limited platform to be sure, but I suggest every serious dealer have a regular presence on it for the aforementioned reasons.  Instagram is more fun, more visual, more engaging and easier to grow. It has few limits other than length of videos.

Are either social platforms going to sell cars?  Incrementally speaking, “eh”. Neither Twitter nor Instagram are going to blow inventory out by themselves. Creating a post a day for either platform is just fine as long as they aren’t all ads.  Make the posts compelling or humorous or both. If advertising an event, double down on creativity and cover all the angles. When all is said and done, it’s the preponderance of visibility and good reviews that’s going to increase any dealerships sales.  Should you have a Twitter or Instagram? I hope this article helped as you sit there scratching your head.

KK

DN: What are your thoughts about the direction dealers are taking these days in regards to the ever-changing digital marketplace?

BW: These days, you see a mixture of dealers going with what they know. There are still some old dinosaurs out there, but in this industry, if you don’t reinvent yourselves every couple years you’re going to get left behind. Many of the old school dealers I know have been able to reinvent themselves, and it’s amazing how many have adapted. The dealers that are doing the best are those that have become very good at figuring out where the attributions are from a digital standpoint.

DN: Are dealers hiring young kids right out of college to handle digital or are they nurturing the expertise from within?

BW: The dealers that do it the best are developing that position from within their own dealerships, but I’ve seen a mixture of both. The best dealers have first educated themselves. Lower-performing dealers seem to be hiring from outside sources, but they have no way to be able to monitor and track their internet results, especially if they don’t know what’s going on in the first place.

DN: How do you train dealerships to properly follow up leads considering the fact that only 19% of internet leads are ever responded to according to a number of sources.

BW: The first thing is there is no such thing as an internet department anymore -- all leads should be worked from the cradle to the grave. It should be like a shark tank where the person who grabs the lead first gets to work that lead. Consumers expect more information, and they expect it quicker. Provide the information they want but don't make email love to them - get them on the phone. Don’t get tied up with email templates and auto-responses, etc. Having that one-owner accountability would help on the tremendous amount of leads that go without proper follow-up.

DN: How do you suggest a dealership deal with an Internet sales department and the physical lot staff and should there be a difference?

BW: Every person who comes onto the lot has searched online at some point, as well as on that dealership’s website. The setup to have a split deal between the two salespeople is probably ludicrous at this point. First, managers have no idea where the lead originally came from, and now they have unhealthy and frictional competition. We should give the customer a much smoother one-person (salesman) experience throughout the transaction. The more people they get handed off to, the greater the chance of miscommunication. At this point, it makes no sense to have a separation between the two salespeople in different divisions.

DN: What is your opinion on full transparency regarding giving information such as inventory availability and price for those who really don’t want to be dragged into the dealership?

BW: My philosophy has stayed the same today as it was ten years ago - the consumer must wonder if the dealer isn't giving them the information they want now, then how will it be when they get to the dealership? You have to give the customer the information they want in a timely manner and be authentic and genuine. If you have the inventory, great. If not, here is a resolution, but be trustworthy and honest. Don’t put pressure on the customer to come in even if you do have the inventory they want. Give them the opportunity to do the transaction in their own time frame, and they’ll be much more likely to want to deal with you.

DN: Where will our industry be in 25 years when most of the vehicles will be autonomous?

BW: The one great thing about this industry is that it always finds a way to hit curve balls thrown at it. Whether we look at the post 9/11 economy or the post-2008 economy (etc.), we can go through a litany of catastrophic changes that hit the industry, and we’ve always found a way around it.

Autonomous vehicle technology is still well into the future. There are still a lot of details to be figured out, such as insurance, laws, and the many obstacles that we'll have to overcome first. From a business standpoint, the major manufacturers will lead the movement, and most likely go through the same dealership channels they do now. There’s always something about everybody wanting the latest and greatest shiny object, and it will have a lot to do with what features are available. You may even be able to do a monthly car rental deal like a few companies already offer now. Either way, dealers are going to have to keep up with the technology and advent changes. http://www.ELEAD1ONE.com

Kelly Kleinman/ Content Director/ DealershipNews.com

Although vehicle sales are mostly down from last year, some manufactures saw promising increases in the sales of certain segments, primarily SUVs, hybrids and pickup trucks.

Ford has stumbled out of the gates and is way below last years numbers.  Other than the F-Series trucks, Ford continues to lose sales to everyone in virtually all segments. Misery loves company. If they look to the western horizon they’ll likely see a chute-less Honda CR-V plummeting from the sky as fast as their Escape and Explorers are with sales down 19%and 25% respectively.  Meanwhile, Nissan’s Rogue, Chevy Equinox, and Toyota’s Rav4 are still seeing continued growth and healthy sales increases.  Of the previous mentioned brands, only Toyota is up YTD and YTY. Not surprisingly, Ford shares are at a 5 yr. Low, and Toyota shares are still up over a year.

Jeep sales have jumped thanks to the Wrangler and the Compass which are up close to 500% over last year.  Overall, the full Jeep brand is up 12% over last year. Jeep is the only American brand that has sold over 20K cars experiencing an increase in sales (Caddy is up 14% YTD but only sold 16K cars).  Much of this success is due to the Jeep brand going global, launching in China and Europe. Literally, no other American brand with is seeing positive sales growth based on 20K sales thus far. In fact, Jeep’s mothership, FCA (Fiat Chrysler Automobiles) is experiencing a huge 20% lift in share prices. Part of this is due to the reinvigoration of Alfa Romeo to compete with BMW, and the retooling of several of its North American factories to increase production of more profitable SUVS and pickup trucks.

VW, despite its many legal issues, tripled its sales of February 2017 with the stylish and roomier 2018 Tiguan.  VW as a brand overall is up nearly 6% YTD and YTY, but it’s shares are down 10 points due to President Trump’s suggestion that tariffs may be in play for European car makers in an effort to renegotiate NAFTA and impose tariffs on European imports.

Volvo, BMW and Daimler also saw sell offs after the President’s comments which many believe may just be a negotiating ploy.  It would be bad news for such tariffs to be imposed on European car makers who are all experiencing a spike of success at the expense of US brands as we get out of the gates in 2018.  Ploy or not, the President is motivated to shake things up and no industry is immune.

The pickup truck segment continues to be dominated by Ford F-Series trucks.  They win month after month, after month. Meanwhile, the storm clouds are gathering over the Dodge Ram and the Chevy Silverado.  Sales are down double figures from last year. To make matters even more ominous, the Japanese have established a beachhead and are coming on strong and their invasion armata consists of pickup trucks.  The Toyota Tacoma is becoming wildly successful and has taken a commanding lead in sales over the closest American competitor, the GMC Sierra whose February sales are down 25% from last year. The Nissan Frontier is also climbing the charts, up a whopping 68% in sales over last year.  American pick up manufacturers clearly have things to worry about as their Japanese competition is clearly stealing market share at an alarming rate. It looks like hockey stick growth for Japanese brands and a ski jump for American brands.

Last but not least, we have the EVs, the PHEVs and the hybrids!  Chevy Bolt sales are up 152%, Tesla sales are up 33% across the board, the Nissan Leaf, the most affordable of all EVs, sold over 7X as many vehicles in February as they did in January!  Almost every hybrid or EV experienced sales increases except for the anemic Ford C-Max Energi and the Honda Clarity BEV. Other nice performers were the Toyota Prius Prime, the Chevy Volt, and the Ford Fusion Energi.  Meanwhile, my beloved Prius isn’t faring so well with all the new similar makes and models coming out. Unless your name is Camry, or Sentra, you’re likely experiencing the gravity of market forces as the public shifts from the standard auto, to larger, more functional vehicles, and other more energy efficient, electric or hybrid kin.

Depending on the size of your dealership, whether you’re a franchisee or independent, you may or may not have staff dedicated to social media and or Google AdWords. Much of what you do on social media is based on who you’re targeting. Facebook, the invasive social Frankenstein that knows everything about everybody taking up space on it’s platform, is still the best place to advertise inventory and events your dealership has planned on social media.

It’s relatively inexpensive, and it’s hyper-local, meaning you can target users within your DMA very easily. Video ads do very well on the platform and it’s easily the #1 social media choice for adults over 36 who spend a country-wide average of 45-50 minutes per day perusing it. If you’re looking for leads, expect to pay between $27 and $43. If you build a certain amount of branding into your social media pain threshold, the cost “cringe factor” will subside when you audit your marketing each quarter.

Facebook users are up in volume but overall usage of Zuckerberg’s monster is down between 10-20% depending on the sources you site. There are a number of reasons for this which cover the gamut of political hangovers, the lack of organic reach, annoying memes, the fact that people under 30 sign up but rarely use it, and a sense that the entire platform looks too busy and old to younger users.

Teens and young adults do not like Facebook. It belongs to their parents. For dealers looking to reach first-time car buyers a few years from now, think twice. In fact, Facebook doesn’t even rank in the top 3 of social networks for teenagers who prefer Snapchat and Instagram whereby they can engage with each other quickly, have house parties on the “House Party” app, and instant response to content they post.

Facebook has done it’s best in the past to nurture the aforementioned generation to guarantee long-term domination, but have so far failed with each incarnation. From it’s teenage Lifestage app, to trying to compete with House Party via their stand alone “Bonfire” app, as well as producing original content in the form of Facebook TV, FB has fallen short. Still, nothing will stop FB from attempting to carve out enough erosion in the landscape to create yet another revenue stream on the backs of the next generation once it has disposable income and time to waste starring mindlessly into their mobile device.

Meanwhile, a couple things that aren’t going away anytime soon are Google Search and SEO best practices. For car dealers looking for an easy attribution model, AdWords is a no-brainer. 2 trillion Google searches are performed every year and the analytics provided are not only agnostic but very helpful in determining the efficacy of any campaign. Google isn’t a 3rd party vendor that can choose which data is presented to the client, the Google numbers don’t lie. When the click traffic is legit, it does reflect a bottom of the funnel, first generation, active buyer, and you can easily track the lead as it processes through your organization. It’s a line item in any budget and should make up a minimum of 70% of any digital advertising allocation.

A practice every dealership needs to get good at is one that delivers a near 0 cost per lead. SEO optimization isn’t easy, but just playing by the rules gets you half the way there. Content is the Holy Grail of SEO and should be refreshed as often as possible. Backlinks, proper listings in all of the major data providers, and indexing sites are crucial aspects of top-line SEO. SEO is not paid media but creates superior visibility that drives traffic to a site at no cost to the store. Figuring out how to do it right is the first step in ascension to the top of your DMA and in the long run will cut your overall advertising budget.

On day one of the 2018 CES Show, an enthusiastic crowd of 400+ media gathered at Mandalay Bay to hear Akio Toyoda’s vision of the future.  Akio is the grandson of Toyota founder Kiichiro Toyoda, son of Sakichi, and is the 3rd generation of visionary Toyoda’s who have systematically lifted Toyota to the top of the automotive world.  Toyota was originally in the business of making agricultural equipment (looms) before they sensed an opportunity to gain some ground in the fledgling Japanese automotive industry.  The company spelling was changed due to superstitious belief based on the number 8, which is how many strokes it takes to write the name Toyota - 8 is luckier.

Akio’s vision of the future is a vehicle concept that that he brands “e-Palette”, is bolstered by his historical recount that Toyota didn’t start out in the automotive industry, hence, is an adaptive company, and that “mobility” would be a better single word definition used to describe Toyota as it moves into the future.  His goal is to have 5.5 million EVS on the road by 2030 and 1 million hydrogen fueled vehicles by the same date.  

Toyoda wants to be fully electric by 2025 and is working on new, less expensive solid state battery technology to outperform the current lithium-ion battery they have in production.  Akio Toyoda has a big vision of the future and the muscle to push it.

Developing relationships with other industry leaders to shape the future, Toyoda hopes to materialize his vision of a clean, new, automated world.  He has already teamed with Servco Pacific to test a new car sharing app, as well as Amazon, Pizza Hut, and Microsoft to create his e-Palette vision which is a fleet of autonomous delivery vehicles to serve consumers in a number of ways from delivering food, to providing mobile offices, and transporting the handicapped.

The Toyota e-Palette is a primary component of a comprehensive vision of a future “smart city” whereby autonomous vehicles scurry about delivering goods & services, and providing transportation for all who need it.  All the vehicles will be fully loaded with radar and lidar, and connected to not only the customers mobile devices, but the city infrastructure as well.  It’s a vision where all technology is clean, everything runs on-time, and folks have more time to be productive or simply relax if that’s what they choose.  

Toyota as a company is already well on its way designing it’s e-Palette fleet. The completion of a fleet of concept vehicles is probably the easiest part of the plan to initiate. Obstacles and potholes along the road to success will include dealing with city planners, state transportation officials, insurers, lawyers, state and city officials looking for ways to extract tax dollars, construction of necessary infrastructure, labor unions, criminal syndicates, and issues that include repair and maintenance of technologies that are completely new.

Ford’s Smart Mobility LLC also includes fleets of autonomous vehicles, electric vehicles/bikes, fully wired “smart cities” and zero emission transportation. The issues to get from dream to material are the same in Ford’s vision as they are in Toyota’s. The question is where to fully execute a POC on a large scale?  Singapore comes to mind as the perfect location whereby something this visionary would be readily accepted and easily tested. The population is young, forward thinking, well educated, and relatively crime-free.

New York City has created a smart city advisory council with technology leaders from Google, Microsoft, IBM and others to “advance NYCx's mission to test new technologies, "from drones to blockchain," (according to the city) in different zones of the city and develop smart city tools.  Meanwhile, if we can get past the bureaucracy and hands in coffers issues as is entirely unlikely, we may just see some movement forward.  It’s always us dang humans that get in the way of progress.