Honda Canada Launches Airbag Safety Campaign

Honda Canada Inc. announced this week it is launching a Safety Improvement Campaign in Canada to replace the driver's front airbag inflator in certain 2001 through 2010 Honda and Acura vehicles.
The airbags in question were designed by Takata, and contain inflators that may rupture under intense pressure and have been the subject of 8 million recalls in the U.S. and an estimated 400,000 in Canada.
The new Honda campaign will cover approximately 700,000 vehicles in Canada, and owners will be notified by mail and requested to bring their cars to an authorized Honda/Acura dealer for replacement of the affected part.
Though initial concern for the airbags erupting was tied to regions of high temperature and high absolute humidity, Honda explained this latest action is to address the concerns of customers living outside these areas, "thereby supporting the ongoing investigation into this issue currently underway in the United States."
To data, Honda Canada is not aware of any reported claims of injuries or deaths in Canada relating to a ruptured airbag inflator of any Takata produced airbag in a Honda or Acura vehicle, though the Takata airbags in question have proved dangerous in other vehicles and have been linked to five deaths.
And automakers aren't the only ones reacting to the Takata airbag proceedings - the Merchant Law Group announced it is launching Canada wide class action litigation in Ontario and Saskatchewan regarding the defective airbags just this week.
The affected Canadian models are as follows (certain specific vehicles only):

• 2001-2007 Honda Accord with 4-cylinder engines
• 2001-2002 Honda Accord with V6 engines
• 2001-2005 Honda Civic
• 2002-2006 Honda CR-V
• 2003-2010 Honda Element
• 2002-2004 Honda Odyssey
• 2003-2007 Honda Pilot
• 2006 Honda Ridgeline
• 2003-2006 Acura MDX
• 2002-2003 Acura TL
• 2002 Acura CL

Honda Canada Launches Airbag Safety Campaign....................... www.redlineautosales.ca/honda-canada-launches-airbag-safety-campaign.htm

Top 12 Websites Women Turn To For Auto Research

In an effort to decipher which auto research sites are favorites among the female population, Women-Drivers.com utilized a survey technique to rank the top sites.
And it seems dealers are doing something right when it comes to their online presence, because dealership websites remain the No. 1 online research option for women, with 41.27 percent of survey respondents choosing this option on the survey.

Coming in at No. 2 was manufacturer websites.

WomenDrivers.com conducts ongoing research through its Women Satisfaction Index, and the site also asks women to complete an optional 25-question survey about their dealership experience after completing a dealer review, which includes questions about online research.
After dealer and manufacturer websites, third-party sites began showing up in the results with Kelley Blue Book leading the way, followed by Consumer Reports.
Listed below are the top sites women visited from Women-Drivers.com's most recent 3,220 surveys.
1. Dealership (41.27 percent)
2. Manufacturer (39.75 percent)
3. KBB (39.62 percent)?
4. Consumer Reports (22.23 percent)?
5. AutoTrader.com (21.34 percent)?
6. Edmunds.com (20.38 percent)?
7. Cars.com (18.85 percent)?
8. Carfax (15.29 percent)?
9. Craigslist (7.64 percent)?
10. JD Power (6.05 percent)?
11. TrueCar.com (4.71 percent)?
12. Autobytel (2.29 percent)
* Note: Total adds up to greater than 100 percent as reviewer can leave multiple responses.

Top 12 Websites Women Turn to for Auto Research.................... www.redlineautosales.ca/top-12-websites-women-turn-to-for-auto-research.htm

Buffett's Dealer Group Buy Still Creating Ripples

Two blockbuster dealer group acquisitions this year - Berkshire Hathaway's purchase of the Van Tuyl Group, along with Lithia Motors buying DCH Auto Group - are proving to be game-changers on the mergers and acquisitions side of the retail auto business.
As Erin Kerrigan, founder and managing director of Kerrigan Advisors, said in her firm's latest look at dealership buy/sell activity: "These two mega deals have motivated a new wave of sellers to consider entering the market, while also pushing pricing expectations to peak - and likely unsustainable - levels."

She continued: "In addition, they are inspiring a new class of capital - private equity and family offices - to acquire dealerships."

A synopsis of the Q3 Kerrigan Quarterly Blue Sky Report indicates that price expectations in dealership acquisition are at "record peaks," with the Berkshire Hathaway-Van Tuyl deal - the largest in auto history - playing a major role in that run-up.
Not long after that Berkshire deal was announced, an analysis from Sageworks, a financial information company, examined the financial conditions of privately held auto dealers, in particular, and why some of their traits would entice an investor like Warren Buffett and Berkshire Hathaway. The analysis shares an interview quote from Buffett in which he describes well-run dealerships as "a very good business."
In late October, Auto Remarketing talked with Sageworks analyst Libby Bierman about that notion and what attributes may lead someone like Buffett to have such an outlook on privately held dealers.
"Certainly, I'm sure Warren (Buffett) and other investors are looking at things outside of financial performance, whether that's who the management is, business projections, plans for that business, etc. But when you're looking at, particularly our financial information - so, the net profit margin and sales growth for these industries - they look like pretty sound industries.
"What you don't see is negative sales growth since the recession. You continue to see above-average sales growth, so they're bringing in more, as well as that stable net profit margin," she said. "It's not super high; they're not the most profitable of industries. But the fact that it's consistent, it's more of a steady-Eddie type of investment than maybe some of the higher-risk investments these guys might be considering."
Going back to the Kerrigan report, the firm - citing its own data and that of The Banks Report - said there were 148 completed dealership transactions year-to-date through Oct. 1. That's nearly double the 78 transactions done through the same period of 2014.
Berkshire Hathaway's purchase of Van Tuyl was announced on Oct. 2, and since then, "the number of dealers considering a sale has increased considerably," the Kerrigan report says.
In fact, the firm is projecting buy/sell activity to remain elevated for the rest of the year and most of next year. The report also mentions that private buyers are leading the pack by a wide margin.
 "It is not surprising that private capital is seeking financial exposure to auto retail. These investors see a profitable, fragmented industry with tremendous consolidation opportunities (the top 125 dealership groups represent only 25 percent of industry's sales)," said Ryan Kerrigan, who will be leading the new private equity and family office advisory at Kerrigan Advisors.
"They also see attractive exit opportunities in the public markets through a future IPO (auto retail's stock market capitalization relative to market size is one of the smallest in our economy)," he continued. "Private investors also see opportunity in a changing industry in which online sales, no haggle pricing, and new forms of car ownership create attractive new business models that are less reliant on expensive human capital," he concluded.

Buffet's Dealer Group Buy Still Creating Ripples....................... www.redlineautosales.ca/buffett-s-dealer-group-buy-still-creating-ripples.htm

Vehicle Loan Amounts Reach Record Highs

Perhaps Experian Automotive found another part of what is the "new normal" in auto financing as analysts determined that the average dollar amount for both new- and used-vehicle loans reached all-time highs in the third quarter.
According to the latest State of the Automotive Finance Market report, the average loan amount for a new vehicle was $27,799 in Q3, up $1,080 from the previous year. Used-vehicle loans increased $676, reaching $18,576 over the same time period.

With the continued growth in loan amounts, the quarterly findings also showed consumers leasing at a higher rate, as well as taking out longer loans.

The report indicated leasing accounted for 29.1 percent of all new-vehicle financing in Q3, up 7.1 percent from a year ago. New-vehicle loans in the 73- to 84-month range grew by 23.7 percent in Q3 compared with the previous year, while used loans in the same range grew by 18 percent from a year ago.
"Car buyers tend to shop with a monthly payment in mind. As a result, we are continuing to see them turn to leasing and longer loan lengths as strategies to keep payments down and make vehicles more affordable," said Melinda Zabritski, senior director of automotive finance for Experian.
"As car values continue to reach new heights, these insights will help dealers, lenders and consumers become more aware of the options available to them to keep people buying cars, all while staying within their budgets," Zabritski continued.
Furthermore, the report found that the average monthly payment for new and used-vehicle loans increased from the previous year. The monthly payment for a new-model loan reached $470, up $12 from a year ago, while the monthly payment for a used-vehicle loan reached an all-time high of $358, an increase of $8 over the same time period.
Additional findings from the report showed that interest rates for new-vehicle loans increased slightly in the third quarter, climbing 4.7 percent from a year ago. However, despite the growth, these rates have decreased each quarter in 2014. Interest rates for used-vehicle loans decreased to 8.5 percent in the quarter.
"As consumers explore the different options available to them to keep their monthly payments low, they have to remember interest rates often can play a factor. Making timely payments and becoming a low credit risk are the easiest ways to ensure a low interest rate," Zabritski said.
"For example, the average interest rate for super-prime consumers on a new loan was 2.6 percent, compared with 12.7 percent for deep subprime consumers. Understanding how on-time payments influence credit scores, can help consumers improve their financing experience," she went on to say.
Experian also highlighted five other notable trends, including:
-The average credit score for a new-vehicle loan was 713 in Q3, down 3 points from a year ago.
-The average credit score for a used-vehicle loan rose 2 points in Q3, reaching 650.
-Captives were the only lender type to see an increase in market share year over year, up 28.9 percent.
-A record-high 54.1 percent of all used vehicle transactions were financed, up from 52.6 percent in Q3.
-For new vehicles, 84.8 of all transactions were financed in Q3 2014, which was unchanged from the previous year.

Vehicle Loan Amounts Reach Record Highs................................... www.redlineautosales.ca/vehicle-loan-amounts-reach-record-highs.htm

New Leader At GM Canada As Williams Retires

As of the end of the year, General Motors Canada will have a new leader. Stephen Carlisle has been named president and managing director of GM Canada. Carlisle will be succeeding Kevin Williams, who has led the company since 2010.
The automaker reported Williams, who has elected to retire, effective Dec. 31, will stay on to assist in the transition through the end of the year.
Williams is a GM veteran, having joined the company in 1983. During his tenure, he held progressively more senior roles in manufacturing, supplier quality and development, purchasing and service and parts operations in multiple locations around the globe including Canada, Mexico, Germany and the United States.
Prior to his most recent position, Williams served as vice president and general manager of service and parts operations, where he led all GM's global aftersales businesses.
He also served as president and managing director of GM de Mexico; GM North America vice president of quality and global quality process Leader; and global executive director, supplier quality, development and supplier diversity.
"I'd like to thank Kevin for his leadership and significant contributions throughout a long and distinguished career with GM," said Mary Barra, chief executive officer of GM. "In his most recent assignment, Kevin helped rebuild GM Canada after one of our most challenging periods and has established a solid foundation for growth into the future."
The new president, Carlisle, will report to Alan Batey, president of GM North America.
Carlie previously served as VP of global product planning and program management based in the U.S.
He has also worked as VP, U.S. sales operations, responsible for dealer network, retail sales support and fleet & commercial; as well as president and managing director of GM South East Asia Operations, in addition to leadership positions in Singapore and China. ,
"I'm honoured to have the opportunity to return to Canada and build on the winning foundation established by Kevin and the team over the past four years," said Carlisle.  "Having worked intensely on GM's world-leading new products and technology strategies, I am excited to bring my enthusiasm and product focus to Canada. I look forward to working with our employees, dealers and other key stakeholders to continue to build an organization that puts the customer at the centre of everything we do."

New Leader at GM Canada as Williams Retires......................... www.redlineautosales.ca/new-leader-at-gm-canada-as-williams-retires.htm

Mazda Canada Offers Unlimited Mileage Warranty

Mazda Canada Inc. announced a move today that may help its franchised dealers in their quest for customer retention, loyalty - and, of course, more trade-ins.
The company has launched a new unlimited mileage warranty, which puts an end to distance limitations on its factory warranty coverage - a move which has the potential to keep shoppers coming in to dealerships' service departments' for longer, perhaps leading to a higher number of trade-ins, as well.
This will take effect for all new standard factory warranties on all Mazda vehicles starting with the 2015 model year.
"Mazda's focus is on long-term customer satisfaction," said Kory Koreeda, president of Mazda Canada Inc. "By offering our customers an unlimited mileage warranty, we believe it will enhance their ownership experience by alleviating concerns such as kilometer limitations, repair costs and resale value."
The basic package warranty for Mazda vehicles covers all parts found to be factory defective for three years - now regardless of the number of kilometers driven.
Additional warranties for consumers to choose from cover powertrain components for a period of five years with unlimited mileage; body sheet metal perforation for seven years with unlimited mileage; and roadside assistance for three years with unlimited mileage.
And the company mentioned the new unlimited mileage warranty is retroactive to all owners who have already bought a 2015 model-year Mazda and is transferable to subsequent owners.
"An unlimited mileage warranty fits perfectly with our brand," said David Klan, senior director of sales, marketing and regional operations. "Mazda is a company that always challenges traditional conventions to make improvements. Driving enjoyment is essential to Mazda; it's in our DNA, and every car we make. So offering a different kind of warranty that doesn't restrict customers from enjoying their vehicle and driving as much, or as far, as they want is an ideal fit."

 

 

 

Mazda Canada Offers Unlimited Mileage Warranty......................... www.redlineautosales.ca/mazda-canada-offers-unlimited-mileage-warranty.htm 

 

 

Canadians Vote Honda & Toyota Tops For Quality

It seems the vehicle preferences of Canadians haven't changed much in the last year, as the 2014 iteration of ALG's Canada Brand Perception of Quality (BPQ) rankings look very similar to the 2013 edition.
Once again, Honda, Toyota and Volkswagen are tops for the mainstream sector, with scores of 61.9 percent, 60.6 percent and 60.5 percent, respectively, on a 100-point scale.
And Mercedes-Benz came out ahead in the premium market with a score of 65.8, followed by BMW (65.4) and Porsche (64.3).
"It's clear that the established German luxury marques, along with Lexus, have a solid advantage in the battle for public perception," ALG analysts said.
The company also pointed out overall perception of brand quality in Canada has risen nearly a full point, showing increased confidence in automakers - even amid the extensive recall campaigns launched this year.
Though 2014 BPQ results - which were calculated from an on-line survey of 2,000 recent new-vehicle buyers across Canada -  show similar rankings from last year, ALG pointed out a few notable shifts.
For example, Dodge and GMC moved in "opposite directions", ALG analysts reported.
Dodge saw a BPQ bump of 2.8 points this time around to 53.8, which was nearly two points more than the overall average of 55. According to survey results, the appreciation for Dodge was split between genders. While women's opinion of Dodge went up nearly 2.5 points, men's fell by approximately half a point.
On the other hand, General Motors' truck brand saw perception fall by one point to 53.3, which was enough to drop the brand down five spots in the overall rankings.
Opinions of GMC dropped among both genders,  and ALG pointed out that various demographic groups, such as "leading-edge boomers" and buyers without a college education, also lowered their opinions of the brand.
Another mainstream brand to see a drop in perception of quality was Hyundai, which has moved forward recently in other avenues.
The brand, though, ranks just above average for BPQ, falling below brands such as Subaru, Jeep and Ford.
"Hyundai's biggest shift was among trailing-edge boomers and, more worryingly, millennials," ALG's report said.
And new for this year, ALG broke down the BPQ results by geographic region, highlighting the Quebec results as particularly interesting.
In Quebec, VW ranked significantly above Toyota.
"The German brand also had an advantage when it comes to younger buyers, with Millennials and Gen-Xers ranking marginally below Honda in terms of perception of quality," ALG analysts explained. "Many of these buyers did not experience the quality issues Volkswagen struggled through in the early- to mid-2000s, and just associate the Volkswagen name with German engineering."
And this dedication to German engineering was particularly obvious in the luxury rankings. Results for the premium brands panned out in similar "clusters," ALG pointed out, with the Germans at the top, the second-tier Japanese luxury brands near the average, and the U.S. brands towards the bottom.
"Each of the latter groups have struggled to compete with the Teutonic luxury juggernaut, and have continually sought to reinvent themselves in order to jump-start their market share, though Acura and Infiniti get the benefit of the positive association with Japanese quality," the report stated.
Interestingly, the biggest alteration in the premium sector was seen toward the bottom of the list, with Tesla (15) and Alfa Romeo (14) switching places.
ALG asserts this change is due to increasing familiarity with the Tesla brand, while Alfa Romeo "still relies on public memory of its brand to inform buyers of its quality levels, which is not conducive to high levels of perception."
While Alfa lost more than a full index point, Tesla gained 4.5 points.

Canadians Vote Honda and Toyota Tops for Quality............................... www.redlineautosales.ca/canadians-vote-honda---toyota-tops-for-quality.htm