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Dave's Rants and Raves...

BRIEF edited review of news that impacts the vehicle personalization industry.

NAPA Auto Parts Stores Identifies Top 10 Holiday Wish List Gifts: Transmission Flush, Exterior Detailing, Floor Mats, Tire Alignment, Cabin Air Filter, Speaker System, Vent Visor Deflectors, Remote Starter, Battery Service - check and clean, and Premium Headlights. Source: NAPA

Anne K. Johnson has joined Dealer Services International as the Sales Rep in Northern California. Dealer Services International (DSI). is the nation’s largest provider of Aftermarket Accessories for new car dealerships. Anne will place accessorized vehicles at local car dealerships for customer purchase. Anne Johnson was former co-owner of California Truck Works, Inc. and currently serves on the SEMA, Board of Directors. She is a past president of LTAA.

RAVE: Congratulations Anne - you’ll be great asset to DSI.

Anand Motors Inc. will provide rent-to-own Program as Means to Hassle-Free Vehicle Ownership. AMI makes vehicle ownership possible with 0% financing, no up-front sales tax, in- house maintenance and no license fees. Because the customer is ‘renting’ the vehicle; at the conclusion of the rental contract the customer receives the title for the vehicle. AMI is located in Chattanooga, Tennessee.

Motor Trend Named Toyota Tundra 2008 Truck of the Year. Toyota Delivers a Full-Size Pickup that Matches Detroit Rivals, they say. The complete report on Motor Trend’s 2008 Truck of the Year™ will be published in the magazine’s February issue, available on newsstands January 1, 2008. “Toyota’s introduction of a full-size pickup truck in the U.S. was a seismic event and one of the most highly anticipated vehicle launches in recent years,” said Angus MacKenzie, editor in chief of Motor Trend. “The question on everybody’s mind was whether Toyota could use its manufacturing and marketing muscle to compete with the big boys on their home turf. The answer can be found in one of the biggest and most capable vehicles in the segment, and one that can compete with any American-made pickup truck, at any level.” Source:Motor Trend Magazine

"Smart" tire developed by a Purdue University professor senses damage when a tire goes flat or loses treads, making it safer for road travel. The tire's technology also can be used to detect impending defects before a tire is mass produced. A team led by Gary W. Krutz, director of Purdue's Electrohydraulic Center and a professor of agricultural and biological engineering, developed the system to sense failures in real time. The entire tire acts as a sensor that sends information to onboard computers. Sensors alert operators when a tire condition has degraded, has low pressure or has been damaged by a road hazard like a rock or loose concrete.

Toyota’s Upfitter Web site, www.toyotaupfitter.com, is updated with 2008 Tacoma Technical information, 2008 model table of specifications, what's new for 2008, towing information, and more. Hot button can ask questions. Visit www.toyotaupfitter.com. Source: NTEA

2007 will be another record year for aftermarket mergers & acquisitions, with more deals completed through the first eleven monthsof the year than were completed in all of 2006. Source: Capstone Group’s Aftermarket Analyst Newsletter

RAVE:A reader “asked” for my opinion! “What are the Detroit Manufacturers going to do (or should do), about the huge number of Pickups stacking up on dealer lots. I really don't see any O.E. offered incentives - it looks like they would rather shut down the production plants.”

Thanks for the assignment! I did some research. The right hand columns shows selling day supply Dec 1 and Nov 1 respectively. The Industry average for all vehicles 12/1/07 was 74 selling days.

Source: Automotive News Data Center

I have several observations

1. The day supply glut begins to show up 11/1/07
2. The day supply increase from 11/1/07 to 12/1/07 is staggering
3. The day supply of trucks is nearly double the day supply for ALL vehicles - a higher number than I would expect
4. GM built too many trucks. Their sales were not off much more than Ford’s. They apparently did not see this coming, or had commitments they couldn’t get out of - perhaps related to the UAW contract negotiations.
5. Our reader is likely seeing GM products being stockpiled.

Where do we go from here?

1. Look for more production cuts from GM
2. Look for more sales incentives from GM
3. Sell GM stock short term and pick it back up in about 90 days - purely amateur advice - so don’t blame or credit me...
4. Go make a deal on a GM pickup - they have been winning quality awards. With a hot new GM diesel and an all-new F-150 coming next fall, we might be in for a slim year. I know I’m waiting to buy another truck.

I talked to another person who was concerned about all the automobile dealers closing in his area. We reported on that recently. These are long overdue corrections that make us all healthier. The sky in not falling - that’s a totally different problem. These corrections happen - I believe the decision-makers are doing the right thing, and doing the thing right.

Got a question? Send it to daveh@truckingtimes.com. Nothing political or religious, however - I’m from Iowa for heaven’s sake…

FYI- I prepared the inventory story on 12/20. Automotive News just posted this: “General Motors plans to chop pickup production in January, but it may be too late to avoid a fire sale. Inventories were bloated despite $5,000 rebates on 2007 models. When demand went soft, GM hesitated to trim production of the restyled 2008 model, which arrived in showrooms in November 2006.

RAVE: The auto industry is abuzz with comments on the new federal fuel economy standards that will not be fully phased in until 2020. Let us all hope this will spur bright engineers to action to meet these new standards without sacrificing the features and flexibility we have come to enjoy.

HELP! If you know someone who might be interested in volunteering to work in a small group to develop our industry marketing skills please have them contact daveh@truckingtimes.com. Passion in the belly for marketing and a willingness to work to make a difference required.

Kari Harris also contributed to this e-newslewtter.

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This BRIEF edited review of news that impacts the aftermarket also provides Dave Herrmeyer's personal commentary and opinions. We accept no responsibility for business decisions you make based on editorial opinion, and views expressed do not necessarily reflect the views of our sponsors. Contact daveh@truckingtimes.com for comments. Articles quoted are from Automotive News unless otherwise stated.