All day on Tuesday, the world's biggest automakers will roll out their sales results for May.
Economists
expect that auto sales rebounded in May to a seasonally adjusted
annualized rate of 17.2 million vehicles after April's results
disappointed.
In April, sales totaled a pace of 16.5 million.
In
a note to clients ahead of the report, economists at Bank of America
Merrill Lynch wrote, "After flat-lining for several months, we expect
auto sales to have jumped to a solid 17.2mn saar pace in May."
The
firm added: "With winter doldrums well in the rearview mirror, and with
consumers enjoying several months of relatively low gasoline prices, we
see an improvement in vehicle demand. 17.2mn is slightly above the
highs of this year (registered in March), and if gasoline prices remain
subdued and consumer confidence continues to improve, we see further
upside to vehicle sales ahead."
(Bloomberg) -- Toyota Motor Corp. and Ford Motor Co. may join forces
to maintain control of their vehicle dashboards as Apple Inc. and Google
Inc. introduce technology targeting the car industry.
Toyota, the world’s largest automaker, will explore working with Ford
on integrating smartphone applications into future vehicles, the two
companies said in e-mailed statements. Ford says its SmartDeviceLink
technology allows companies such as Pandora Inc. to develop apps only
once for use in multiple infotainment systems, while also allowing
carmakers to control the design of their dashboards.
• Ford statement: Click here
• Toyota statement: Click here
By exploring a collaboration, Toyota and Ford are showing caution
against letting Apple’s CarPlay and Google’s Android Auto dictate the
future of in-car entertainment and navigation systems. Dashboards have
become a battleground for carmakers as they seek to attract younger
customers who demand connectivity features in their rides.
“They’ve put a lot of blood, sweat and tears and a lot of r&d
resources into developing their own systems, so how can you then say,
‘OK, Google and Apple, come in and take over?’” said Mark Boyadjis, an
analyst for IHS Automotive. “The car companies need to be very shrewd
with how they integrate things like CarPlay and Android Auto.”
Automakers may sell about 31 million vehicles with CarPlay and 37
million with Android Auto by 2020, according to IHS forecasts. At those
growth rates, these systems would be available in vehicles about as
quickly as Bluetooth and auxiliary-cord inputs have over the last 10
years, Boyadjis said.
While Apple lists Toyota and Ford as partners that will offer models
with CarPlay on its website, Toyota is absent from Google’s lineup for
Android Auto.
Last week, Hyundai Motor Co. said it would become the first carmaker
with Android Auto available in U.S. models, starting with its 2015
Sonata sedan. General Motors also said its redesigned Cruze compact will
be the first of most 2016 Chevrolets to offer both Android Auto and
CarPlay.
DETROIT (Bloomberg) -- BMW sold a May record of 31,003 cars and SUVs
in the U.S., narrowing Mercedes-Benz's luxury-vehicle lead as both
brands benefit from expanding lineups.
BMW Group's namesake brand reported a 4.7 percent increase, led by
gains of 18 percent for 3- and 4-series cars and 34 percent for the X5
SUV. Daimler’s Mercedes said sales jumped 11 percent from a year earlier
to 29,583, also a record for the month.
The May results left Mercedes with a lead of 479 vehicles over BMW for the year.
Luxury automakers, which sell premium models that can cost more than
$100,000, have found additional success in the U.S. with lower-price
models. With cars such as Mercedes’s $31,500 CLA and BMW’s $32,950 3
series, they are broadening their appeal with younger customers they
hope to keep for life.
“The expansion down-market has revolutionized the access to luxury
brands,” Eric Lyman, a TrueCar Inc. analyst, said in an interview. “And
with the aggressive lease deals, you can get into a luxury brand for
less than you’ve ever been able to.”
This year through May, sales rose 9.4 percent to 136,926 for Mercedes
and 7.3 percent to 136,447 for the BMW brand. The results exclude
Daimler’s Sprinter vans and Smart cars and BMW’s Mini brand, which
aren’t luxury vehicles.
Toyota Motor Corp.'s Lexus reported that May sales rose 10 percent to
29,671, led by the new NX SUV and the larger RX. For the year, Lexus
deliveries have climbed 15 percent to 132,727.
Sales for Audi gained 11 percent to 18,428, the brand’s second-best
month since entering the U.S. in 1970. The increases included 55 percent
for the entry-level A3 and 12 percent for the Q5 SUV. For the year,
Audi is up 12 percent to 75,353.
Spring has officially arrived in Walled Lake! But that doesn’t mean
your vehicle is in the clear – changing seasons means it’s time for
maintenance to make sure your vehicle will keep you safely and
comfortable on the road through the spring and summer.
April is National Car Care Month, which makes it the perfect time to
check the important systems in your vehicle. 7 Action News stopped
by Kenny’s Lakes Area Auto Experts to talk with Kenny about things
viewers of WXYZ Detroit should know as we head into this spring season,
including fluids, timing belts, and more. Watch the video here.
As we kick off National Car Care Month, here are 8 things you should check on your vehicle to prepare for spring:
1. Antifreeze
Many people think of antifreeze only in cold months. But antifreeze
(also known as coolant) also cools the engine in the heat of the spring
and summer. This fluid is responsible for keeping your vehicle running
at a consistent temperature. Don’t ignore it just because it has
“freeze” in its name – antifreeze will become even more important as the
weather warms up to prevent overheating engines and vehicle breakdowns.
2. A/C temperature and check
As the days get warmer in Michigan, we’ve already noticed the need for
air conditioning to stay cool and comfortable driving on the roads. But
not using this system in the winter months means you’ll likely notice
latent problems as the weather gets warm. Stop by our shop and our ASE
Certified technicians will perform an inspection, checking the
temperature and components in your vehicle’s A/C system. (Be leary of DIY Refrigerant flushes – leave this to the professionals to avoid damaging your vehicle).
3. Tire pressure
Warming temperatures affect tire pressure – a 10 degree increase can
drop pressure by 1-2 psi. Low tire pressure means you’ll get fewer miles
to each gallon and means your tires will wear faster than if they were
properly inflated. Every time you stop at a gas station, check your tire
pressure. Many stations even have air available for a top off
on-the-go, or stop by our shop and we’ll fill your tires to the right
pressure to get you back on the road!
4. Potholes
Road damage, from cracks to potholes to bumps in the road, can wreak
havoc on your vehicle in the spring. Even a small pothole can damage
your alignment and suspension. If your daily commute involves risks like
these, stop by for an inspection early to prevent worsening the damage
and premature tire wear.
5. Fluids
Spring is the perfect time to take care of routine maintenance
before warm weather puts a toll on your vehicle. From your oil to
coolant, transmission fluid, and brake fluid, winter can be harder on
your vehicle. Small problems may become more noticeable as we head into
the spring season. Have your fluids checked and replace as needed. When
you bring your vehicle in for an inspection, our ASE certified
technicians will check all of your fluids and recommend maintenance as
needed – we’ll even top off your windshield washer fluid to keep you
safe through spring showers!
6. Wash exterior
Winter roads can leave your vehicle covered in dirt and salt. Not only
is this unsightly, it can actually harm your exterior. A thorough wash
can remove chloride, salt, and chemicals from the exterior of your car.
Be sure you clean the underside too! This is where the most dirt and
chemicals can collect and post the biggest threat. As an extra bonus,
take pride in your vehicle again when it is clean and looks like new!
7. Tire tread
Take a look at the tread on your tires using the penny test, looking
carefully for any uneven patches or bald spots. While it might not seem
as important in the spring, this time of year is the rainiest and
wettest season. Good traction is important for driving on wet roads,
especially unexpected or panic stops. If you’re not sure how to check
your tires, stop by our shop and our technicians will help!
8. Spring Inspection
The best thing you can do for your vehicle this spring is stop by for a full inspection.
When you bring your vehicle into our shop, our auto technicians can
check all of the issues above, and can fix any problems we find right
away. Most issues, including alignment, coolant, and fluid flushes, can
be performed right away to get your vehicle back on the road quickly and
safely.
Don’t be fooled thinking that just because it’s spring your car is
now in the clear – changing seasons mean changing conditions for your
vehicle. Check the elements above in your vehicle, or stop by our shop for a full inspection. Wishing you a fun and safe National Car Care Month!
Audi started the biggest investment program in its history last year
as part of its effort to overtake BMW as the world's largest premium
automaker by 2020. The Volkswagen Group subsidiary will spend 24 billion
euros ($26.12 billion) through 2019.
Audi CEO Rupert Stadler,
52, is particularly bullish about the automaker's fast-growing SUV
lineup. He explained why in an April interview with Automotive News Europe Editor Luca Ciferri at the Shanghai auto show.
Q: Audi will have 60 models or variants by 2020. Which body style will account for the majority of the lineup? A:
Globally, we will respond proactively to the growing number of
customers who enjoy SUVs' higher driving position and their sense of
enhanced safety. We already decided to go smaller with the Q1 and to go
bigger with the Q8. Regardless of the size of the SUV, we strive to be
the most sought-after model in the segment. For example, the transaction
price for a Q7 is very similar to our A8 flagship sedan because our
SUVs are not utilitarian off-roaders.
Last year
Audi showed the SUV-inspired TT Off-road Concept. Is that Audi's vision
for a sporty compact SUV that may be badged as the TTQ?
The
feedback for that concept was very positive, but no decision has been
made on whether we will build something like that. If such a model will
get the green light, to be at the top of its segment it would need to be
underpinned by the next generation of the MQB architecture. That means
it would not arrive until after 2020.
Audi has shown three Prologue concept cars. What is the purpose of those cars?
They
provide a glimpse of our future design direction so that we can get
some customer feedback. The first Prologue concept, shown last year at
the Los Angeles Auto Show, received really positive feedback. This was
very important for us because we had faced some criticism about our
design. With that concept we showed where we are headed.
Does the Prologue Avant concept shown in Geneva hint at a forthcoming A8 wagon?
This
concept, with its strong sex appeal, also generated excellent feedback.
For us, it confirmed that our future design direction is correct.
Unfortunately, wagons are popular only in Europe, so we doubt there
would be enough demand to justify building such a model.
Is global acceptance of Audi's Sportback models growing?
Definitely.
They also enjoy high transaction prices. The A7 Sportback, which is
based on the same architecture of the A5 and A6, has average transaction
prices close to the A8.
Should we expect more Sportback variants?
We
don't discuss future models, but I can say that we are working hard in
this sector. Clearly, models with good margins have a better chance of
getting production approval.
Does Audi need a large, four-seat coupe to compete against the BMW 6 series?
Models
like that add prestige and boost the brand image, but that segment is
very small and getting smaller. If you are looking to boost your global
volume, a large SUV like the forthcoming Q8 is more likely to be a
winner than a large coupe.
Does Audi worry that Google or Apple will become strong rivals to automakers?
No,
because we cooperate closely and effectively with both of them. We know
we will compete in some areas and collaborate in others. That's normal.
More than a year ago we entered the Open Automotive Alliance with
Google. This is good for us because we are learning more about
industries whose product life cycles are totally different from ours.
ALONG THE PACIFIC COAST HIGHWAY, Calif. -- Within minutes of pulling
into space 12 at the Pismo Coast Village RV Resort, my neighbors rush
over to welcome me.
Rather, they charge toward my bright green and
purple campervan, which is emblazoned with signage promising it "comes
with everything … including the kitchen sink."
Jennifer Beall
confirms that there is a kitchen sink and a gas cooker and a
refrigerator -- albeit miniature ones. They are all in the trunk. The
back seat folds down into a bed that can sleep two at night. It also
converts into a dining area. On top of the car is the "penthouse," a
pop-up container that sleeps another two. Below the seats is a storage
area, which I dub the basement.
"This is a lot easier to drive
than that big thing there," says Beall, pointing to the 29-foot
Fleetwood Jamboree RV she and her husband have traveled in from southern
California. It may be hard for her to drive, but it's still better than
a hotel, she says.
The Jucy
RV campervan, based on a Chrysler minivan, is part of a new generation
of RV campers. Travelers, especially younger ones, favor smaller, more
fuel-efficient vehicles over the trailers and motorhomes that have
populated American roadways for decades. Rather than getting around in a
condo on wheels, many road trippers are settling for a living room.
"RV-ing
in the United States is huge," says Dan Alpe, who co-founded Jucy in
2001 in New Zealand. But he observed that operating some RVs is a
"scary, intimidating experience."
That's why Jucy and other companies have made the experience happen in a more compact space.
California Campers offers Volkswagen Westfalia campers from San Francisco. Lost Campers has budget campervans from Los Angeles, San Francisco and Salt Lake City. Cruise America's fleet of compact campers can be found at locations across the USA and Canada.
Like Jucy, which now has 265 vans in the USA, Escape Campervan Rentals
originated in New Zealand and has an over-the-top look. Each van has a
different design by a graffiti artist. The Escape vans can sleep three
adults or more if a rooftop tent is added. The company has about 350
vans in the USA.
They're tapping into a lucrative market.
According to Kampgrounds of America, 46 million households in North
America camp at least occasionally, with 1 in 4 households engaging in
some sort of camping activity each year.
The majority -- 54% -- stay in tents, but 21% are RV campers, according to the latest figures.
The
report also found that Millennials have the greatest potential for
growth in the camping industry in the next year. Six in 10 Millennials
said they would spend more nights camping, compared with 4 in 10 Baby
Boomers.
"We're going to bring a different group of people into
the market," Alpe says. "We are getting young people saying, this is a
cool thing to do."
Americans have always considered camping cool -- or at least economical.
Travelers
"just want a more intimate experience and a way to get off the beaten
path," says Escape Campervan vice president of marketing Chris Knight.
"It's more economical than a rental car. With these smaller vehicles,
you can sleep in your car for free at any national forest."
An
Escape Campervan is not quite free, but it can often be less than a
hotel room. A night in the van can cost as little as $35 a day. Jucy
rentals start at $45. Campsites have nightly rates that vary.
For additional fees, you can also get bedding and a Mi-Fi when you rent a Jucy camper.
I choose both when I drive down from San Francisco to Los Angeles in January.
I
can't get the Mi-Fi to work but I am grateful when I get under the
bedding, which works just fine against the cold California nights.
At the pick-up depot in San Leandro,
a suburb outside of San Francisco, a manager gives a 30-minute tutorial
on how to operate the Jucy. It involves learning how to empty and fill
the water tank and how to crank up the penthouse.
After
filling out my paperwork, I get on the road. At a toll booth, the
employee laughs when she sees my green and purple wheels.
On my
first night in the Jucy, I stay at Veterans Memorial Park in Monterey,
one of the country's only urban campgrounds. I arrive late and stuff my
$30 overnight fee into an envelope that I deposit into a box.
I
rejoice when I spot another green and purple vehicle at the campground.
It's a Jucy camper, and I park right next to it in a show of
camaraderie.
Edmond Kenny and Emma Hore, an Irish couple living in Australia, are taking a road trip though California.
"We were looking into big RVs but more compact models suited us," Kenny says, after cranking up the penthouse.
The next morning, I enlist Kenny to help me pack away my penthouse. We can't quite lock it into place, so John Wilkes, a Veterans Park attendant, offers to help.
He
pushes and pulls and turns, and manages to get the penthouse back in
place so I can drive off. He looks at the Jucy and nods to indicate his
approval.
"The bigger the RV, the less you see people," he says.
He likes to see people, and the Jucy campervan encourages travelers to be social.
I
see many people on my five-day journey, and most are eager to chat.
Whenever I spot another Jucy on the road, we honk at each other.
The beauty of roadtripping in a campervan is that I am not exiled to the RV parking area at Hearst Castle
and other places I pop into. I make a last-minute detour through the
beautiful central California town of Carmel with ease. I park the Jucy
next to all the Mercedes, Lexuses and Bentleys.
As I pull into a parking spot to see the thousands of San Simeon elephant seals that lounge on the beach just south of Piedras Blancas Light Station, members of a National Geographic TV crew stop me to ask for a tour of my Jucy.
When
I'm done showing them the kitchen sink, I head to the boardwalk to see
the seals. It's mating season. Volunteer Jack Morehead, who wears a
bright blue jacket with a patch identifying him as "Friend of the
Elephant Seals," stops to impart his knowledge.
According to
Morehead, the seals have the run of six miles of beach. Many of the
females are pregnant. The males are looking to mate some more. And the
pups are trying to avoid getting crushed in the melee. I stand there for
30 minutes mesmerized by the sight of so many seals piled on top of
each other.
"It's not romantic at all," he says, stating the obvious.
Being in a campervan allows me to stop by the Monterey Bay Aquarium, have fantastic meals at Abalonetti Bar and Grill in Monterey and Big Sur Roadhouse, maneuver around the quaint Danish town of Solvang -- all without having to worry about where to stash my campervan. I can easily parallel-park it.
I
also get to explore many campgrounds. The Recreation Vehicle Industry
Association says there are more than 16,000 public and privately owned
campgrounds nationwide.
On my way down the winding PCH, I stop at
the Los Padres National Forest Kirk Creek Campground to take photos. The
view of Big Sur is spectacular.
I inadvertently park in someone's
spot. John Clayton has driven from Carmel in a motorcycle. He doesn't
mind when he catches me bogarting the space he paid for. There's plenty
of room for the Jucy and the motorcycle.
He tells me that he has a
tent and sleeping bag stuffed into his motorcycle. I'm impressed, as is
he when I show him my kitchen sink. We trade camping stories and admire
each other's vehicles while gazing at Big Sur.
"Wow," he says. "How cool is that?"
It took Mario Murgado a decade to get the Audi franchise he dreamed
of -- and only one year for his store to rise to the brand's highest
echelon of dealerships.
After opening in December 2013, Murgado's
Audi Stuart near Florida's Atlantic coast was one of just a dozen
dealerships last year to win Audi's Elite Magna Society award, the
highest honor bestowed upon Audi dealerships.
It was the
equivalent of an NFL expansion team winning the Super Bowl. For Murgado,
CEO of Miami-based Brickell Motors, it was a quick payoff on his bet
that Stuart, Fla., could hold its own as a luxury market.
Murgado
says he had coveted an Audi dealership since 1993, when he sat on the
brand's dealer council, representing billionaire Miami dealer Norman
Braman's Braman Imports.
During Murgado's final years running
Braman's group as CEO, he says, he saw Stuart, on the tony Treasure
Coast region of Florida's eastern shore, as a promising opportunity for
Audi. Luxury brands such as BMW, Lexus and Mercedes-Benz had locations
farther north and south, but not in Stuart. Yet luxury car demand had
existed there for years, Murgado said, as Stuart residents often bought
BMWs from Braman dealerships in Palm Beach.
"A lot of the dealers
that were there never treated the place with the respect that I thought
it deserved and never built a top-class facility," Murgado said.
After
founding Brickell Motors in 2001, he wrote to Audi asking to add a
store in Stuart, but to no avail. He tried again a few years later, but
the brand still wasn't interested.
Murgado finally got his wish
in the summer of 2011, when Audi's dealer network was growing. He
hatched a plan to turn Stuart, about 100 miles north of Brickell's
primary dealership cluster in and around Miami, into the group's luxury
auto outpost, purchasing 12 acres of land and opening flagship stores
for Audi and Infiniti by the end of 2013.
Murgado invested $14.5
million in his Audi dealership, a 31,000-square-foot store based on the
brand's Terminal design standard.
Customer service scores are
important in Audi's performance metrics, and General Manager Devin
Carlson says he wanted to create an experience that was more luxury than
just luxury auto.
"We wanted people to come into the door and feel like they were at another high end retail business," he said.
Launch
marketing included radio and TV ads, a social media push and events
designed to bring well-heeled customers into the dealership, such as
hosting the annual leadership dinner of the Martin County Economic
Council, a local business leadership group, in the showroom.
The
dealership offers a concierge service that provides loaners and picks up
and delivers vehicles for servicing up to 20 miles away. Murgado says
staffers drummed up fixed operations business by mining registration
data for Audi owners and cold-calling customers to offer the concierge
service and a free oil change.
Test drives are offered at
prospective customers' homes, offices or over a weekend, Murgado says.
Customers needing a car wash can pop in for a free one at any time.
Stuart Audi sold 525 new Audis last year.
One
key to the early success, Murgado says, was the staff, starting with
Carlson, who had been sales director for two Lexus dealerships owned by
Jacksonville, Fla.-based Brumos Automotive.
Carlson oversaw the
rest of the dealership's hiring and brought in many employees with
nonauto backgrounds. His sales team includes a former schoolteacher, a
golf pro, business owners, an insurance salesman and a retirement fund
manager. No employees were brought from Brickell's other dealerships.
"We
wanted to hav-e a culture established here that was unique and created
here in this environment," Carlson said, "not brought in from the
outside."
Audi's Magna Society program rates dealerships on their
performance against goals for sales, customer service, facilities and
fixed operations. Ninety-one Audi dealerships won the brand's Magna
Society award last year. But only the top 12 received the Elite
designation. Carlson says Audi Stuart was one point shy of the highest
possible score.
Murgado hopes his performance with Audi will translate into additional luxury stores in Stuart.
He
said, "It was important to demonstrate to other manufacturers in the
future that we can go anywhere we want and that with the right systems
and processes in place, you can be successful."
