MENLO PARK, Calif. – Facebook (NASDAQ: FB) today announced the pricing of its initial public offering of 421,233,615 shares of its common stock at a price to the public of $38 per share. The shares are expected to begin trading on the NASDAQ Global Select Market on May 18, 2012, under the symbol “FB.” Facebook is offering 180,000,000 shares of Class A common stock and selling stockholders are offering 241,233,615 shares of Class A common stock. Closing of the offering is expected to occur on May 22, 2012, subject to customary closing conditions.

In addition, Facebook and the selling stockholders have granted the underwriters a 30-day option to purchase up to 63,185,042 additional shares of Class A common stock to cover over-allotments, if any.

Morgan Stanley, J.P. Morgan, Goldman, Sachs & Co., BofA Merrill Lynch, Barclays, Allen & Company LLC, Citigroup, Credit Suisse and Deutsche Bank Securities are serving as book runners for the offering. RBC Capital Markets and Wells Fargo Securities are serving as active co-managers.

The offering will be made only by means of a prospectus. Copies of the prospectus related to the offering may be obtained from: Morgan Stanley & Co. LLC, 180 Varick Street, 2nd Floor, New York, New York 10014, Attention: Prospectus Department (Tel: +1 866 718 1649; e-mail: prospectus@morganstanley.com); J.P. Morgan Securities LLC, c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, NY 11717, (Tel: +1 866 803 9204); or Goldman, Sachs & Co., 200 West Street, New York, NY 10282, Attention: Prospectus Department (Tel: +1 866 471 2526, e-mail: prospectus-ny@ny.email.gs.com).

A registration statement related to these securities has been filed with, and declared effective by, the U.S. Securities and Exchange Commission. This press release shall not constitute an offer to sell or a solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

Source: PR Newswire (http://s.tt/1caHI)

This is the POV of the Year Award’s third year. In 2010, the ‘07-‘10 Toyota Camry was selected. In 2011, the ’06-’09 Ford Fusion took top honors. Each POVY trophy is custom made for that year’s recipient. Last year’s award featured a 17” 1918 Model T steering wheel. It now sits below a portrait of Henry Ford at Ford’s World Headquarters in Dearborn, Michigan.

This year’s trophy includes an authentic 17” 1937 Chevrolet pickup truck steering wheel. The unique award was accepted by Laura L. Toole, Manager, Communications, GM Northeast Region. In accepting the award, Laura said, “The Silverado has demonstrated for decades that it is the most dependable, longest lasting pickup on the market and this award is further proof that Chevrolet is delivering the products that more people want with the right technologies and capabilities at a true value.”

The POVY was presented in association with NEMPA at a banquet at the Faculty Club of the MIT Sloan School of Management following NEMPA’s annual Technology Conference. Wayne Carini, the host of Chasing Classic Cars on the Velocity Network, hosted the event along with NEMPA President Keith Griffin. Said Keith, “NEMPA is proud to present this award in conjunction with WheelsTV because the previously-owned vehicle market is where most Americans buy their cars and trucks. The selection of the Silverado was an excellent choice because of its durability and functionality.”

In presenting the prestigious award, Jim Barisano stated, “Fuel economy and alternative fuels are all the buzz today and every family needs a fuel efficient, reliable day-to-day driver. But, as has been the case for hundreds of years, having a solid workhorse in the barn remains essential for many families and businesses. This year’s POV of the Year recipient, the ’07 to ’10 Chevy Silverado, is exactly that, having proven itself through years of dependable service.”

About The New England Motor Press Association: NEMPA (http://www.NEMPA.org) coordinates professional coverage of the auto industry in six New England states. NEMPA’s 55 working media members appear on network and cable TV, on the Internet and radio, and in regional and national newspapers and magazines. NEMPA members reach virtually all of New England’s 14.5 million citizens—in Connecticut, Maine, Massachusetts, New Hampshire, Rhode Island and Vermont—and they understand their audience’s demographics, buying habits and automotive preferences.

About WheelsTV: WheelsTV (http://wheelstvnetwork.com) is the first multi-screen program service in the U.S. devoted exclusively to consumers’ interests in cars, trucks and motorcycles—serving both the enthusiast and motoring public with a wide spectrum of vehicle-based entertainment, news and information. WheelsTV tests and researches hundreds of pre-owned vehicles each year in creating the video series, POV Reviews. POV Reviews help used car buyers to select the most reliable, economical, safe and comfortable vehicles for their needs. WheelsTV is a service of Automotive Networks Corporation, headquartered in Acton, Massachusetts.

NEW YORK – Data through April 2012, released today by S&P Indices and Experian for the S&P/Experian Consumer Credit Default Indices, a comprehensive measure of changes in consumer credit defaults showed that, with the exception of bank cards, all loan types saw a decrease in default rates for the fourth consecutive month. In addition, the four that did decrease posted their lowest rates since at least the end of the recent economic crisis. The national composite declined to 1.86% in April from its 1.96% March rate. The first mortgage default rate decreased from March’s 1.88% to April’s 1.76%. The second mortgage default rate also declined from 1.03% in March to 0.93% in April. Auto loans default rate hit its lowest in its eight year history — 1.07% in April down from March’s 1.11%. Bank card was the only loan type where default rates increased marginally in April, to 4.49% from its 4.47% March level.

“April data show the continuation of the positive trend we saw in the first quarter of 2012,” says David M. Blitzer, Managing Director and Chairman of the Index Committee for S&P Indices. “Not only have we continued the general downward trend in consumer default rates that began in the spring of 2009, but we appear to be reaching new lows across many of the loan types. The first four months of 2012 show broad based declines in default rates with first and second mortgage, auto and composite default rates all reaching new post-recession lows.

“The first mortgage default rate fell by 12 basis points in April over March and is the lowest rate since July 2007.  The second mortgage rate also fell during the month, by 10 basis points, and is at a seven-plus year low.  The auto loans default rate hits its lowest rate in our history of these data.  While the bank card rate rose, it was not by much and is still close to the recent low reported in February.

“Four of the five cities we cover saw their default rates drop, with all four at post-recession lows.  For the fourth consecutive month, Chicago saw a decline, moving from 2.84% back in December 2011 to 2.21% in April.  That’s a 0.63 percentage point decline and a new low. New York and Miami both fell for the third consecutive month. New York dropped almost a quarter percentage point over the month, from 2.01% in March to 1.78% in April. Miami decreased by almost a half a percentage point, from March’s 3.62% to April’s 3.14%.  While still the highest default rate, Miami hit a post-recession low.  Dallas hits its lowest rate in its eight years of history, moving from 1.44% in March to 1.25% in April and retains the lowest rate among the five cities we follow. Los Angeles is the only city where default rates remained flat, at 1.88%.”

The table below summarizes the April 2012 results for the S&P/Experian Credit Default Indices. These data are not seasonally adjusted and are not subject to revision.

The table below provides the S&P/Experian Consumer Default Composite Indices for the five MSAs:

About S&P Indices
S&P Indices, a leading brand of the McGraw-Hill Companies (NYSE: MHP), maintains a wide variety of investable and benchmark indices to meet an array of investor needs. Over $1.45 trillion is directly indexed to our indices, which includes the S&P 500, the world’s most followed stock market index, the S&P/Case-Shiller Home Price Indices, the leading measure of U.S. home prices, the S&P Global BMI, an index with approximately 11,000 constituents, the S&P GSCI, the industry’s most closely watched commodities index, and the S&P National AMT-Free Municipal Bond Index, the premier investable index for U.S. municipal bonds. For more information, please visit: www.standardandpoors.com/indices.

It is not possible to invest directly in an index. S&P Indices does not sponsor, endorse, sell, or promote any S&P index-based investment product. This document does not constitute an offer of services in jurisdictions where S&P Indices or its affiliates do not have the necessary licenses. S&P Indices receives compensation in connection with licensing its indices to third parties.

About Experian
Experian is the leading global information services company, providing data and analytical tools to clients in more than 80 countries. The company helps businesses to manage credit risk, prevent fraud, target marketing offers and automate decision making. Experian also helps individuals to check their credit report and credit score and protect against identity theft.

Experian plc is listed on the London Stock Exchange (EXPN) and is a constituent of the FTSE 100 index. Total revenue for the year ended 31 April 2011 was $4.2 billion. Experian employs approximately 15,000 people in 41 countries and has its corporate headquarters in Dublin, Ireland, with operational headquarters in Nottingham, UK; California, US; and Sao Paulo, Brazil.

For more information, visit http://www.experianplc.com.

Experian and the Experian marks used herein are service marks or registered trademarks of Experian Information Solutions, Inc. Other product and company names mentioned herein are the property of their respective owners.

WASHINGTON – Since establishing itself as an innovator in mobile technology with the introduction of an app for the Apple iPhone® in October 2009, Mercedes-Benz Financial Services (MBFS) is seeing steady growth in the number of customers using mobile channels for account management.

Today, nearly 10 percent of the payments MBFS receives through its online payment system are submitted via mobile channels.  In the first quarter 2012, the company received $14.1 million, more than double last year’s $6.5 million.  MBFS sees considerably higher customer satisfaction index (CSI) scores, approximately 6-7 points, for customers using mobile account management options.

“We quickly recognized that mobile devices were a preferred channel for our customer base, and we’ve tailored our account management offerings around these platforms,” Matt Wiethoff, Manager, Business to Consumer Marketing for Mercedes-Benz Financial Services, told members of the Washington Automotive Press Association today at its monthly meeting at the National Press Club in Washington, D.C.

The iPhone app launch in 2009 was followed in early 2010 with the launch of a mobile version of mbfs.com, accessible from all smart phone devices and capable of accepting monthly payments on MBFS loans and leases. In 2011, MBFS further enhanced the app for iPad® compatibility.

At the close of 2011, the first full year both mobile payment channels were available, the company collected $38 million in payments.  MBFS expects to process over $68 million  in mobile payments in 2012, eclipsing the total funds collected through mobile channels for the nearly three-year history of its mobile program.

MBFS saw a growth rate of 127 percent in the mobile payment channel in 2011, and continues to evaluate new technologies with the goal of providing account information anytime, anywhere.  With over 40% of the total retail portfolio of 530,000 accounts using online, self-service methods, MBFS recognizes the value of emerging technologies in servicing its consumers.

Wiethoff recapped Mercedes-Benz Financial Services’ recent initiative to update the app for the iPhone and iPad, adding a sales lead channel for its dealers.  Continued expansion of mobile offerings could lead to additional platforms, with new and emerging technologies always being evaluated.

iPad, iPhone, and iPod touch are trademarks of Apple Inc., registered in the U.S. and other countries.  App Store is a service mark of Apple Inc.

Mercedes-Benz Financial Services B2C Mobile Strategy Chronology

• MBFS launches iPhone app for customers to manage accounts, October 2009
• MBFS launches smartphone capability to manage accounts, February 2010
• MBFS has received approximately $68 million as of Q1 2012 in retail lease/loan payments from iPhones and smartphones via a payment channel established October 2009.

About Mercedes-Benz Financial Services USA LLC

Mercedes-Benz Financial Services USA LLC, headquartered in Farmington Hills, Mich., with Business Center Operations in Fort Worth, Texas, provides brand-specific financial services and products for Mercedes-Benz automotive dealers and their retail customers. It also provides financial support to smart USA dealers and customers.

In the U.S. trucking industry, it conducts business as Daimler Truck Financial and finances Daimler Trucks North America commercial vehicles branded Freightliner, Western Star and Thomas-Built Buses. Mercedes-Benz Financial Services USA LLC serves as the headquarters for operations in the United States, Canada, Mexico, Argentina and Brazil, and has approximately 1,500 employees. It is a company of the Daimler Financial Services Group, headquartered in Berlin, Germany, which does business in 39 countries with an employee base of approximately 6,700. Daimler Financial Services is one of the leading financial services organizations worldwide.  For more information, go to: www.mbfs.com/corpor facebook.com/mbfsamericas.

Source: PR Newswire (http://s.tt/1c1Kq)

Blue Link® Mobile App Highlights

• Completely redesigned interface and navigation
• Swipe gestures allow quick access to core features
• Remotely access many Blue Link® features found on MyHyundai.com
• Manage multiple Blue Link-enrolled vehicles
• Remotely control vehicle functions: Door lock/unlock, horn & lights, lights-only and remote vehicle start (not available on all models)
• Search, save and send POIs to vehicles for in-car navigation
• Innovative new features: car finder, parking meter/timer and vehicle diagnostics
• Remotely manage Blue Link alerts and notifications

Blue Link is an innovative telematics solution from Hyundai that combines safety, service and infotainment into a complete package. Blue Link is powered by Agero’s next-generation telematics platform, which offers a flexible architecture that supports multi-modal interfaces for vehicle owners. “This improved app demonstrates one of Agero’s core capabilities: developing customized user experience interfaces, from end to end, on behalf of our automotive OEM clients,” said Tom Metzger, senior vice president of Global Sales & Account Management (Connected Vehicle Services) at Agero. “In addition to increasing the Blue Link app’s capabilities, we made it more intuitive for users, while also extending the unique Hyundai brand experience to vehicle owners.”

The refreshed app is part of a series of enhancements planned around Blue Link, including a re-designed Blue Link section on HyundaiNews.com and 12 all-new instructional videos designed to familiarize viewers with Blue Link features. The videos, which feature actual Hyundai employees, can be seen on Hyundai’s YouTube channel, HyundaiBlueLink.com or in a dedicated section on HyundaiNews.com.

Hyundai offers a complimentary trial period for Blue Link-equipped vehicles. Customers opting-in for a no obligation auto-renewal can receive up to one year of Blue Link Assurance and 6 months of Blue Link Essentials and Guidance with access to the Blue Link app and its innovative features.

INTUITIVE INTERFACE DESIGN
Customer feedback and real-world usability testing played a key role in the development of the all-new Blue Link® mobile app. “We looked at how our customers use their Smartphones to enhance various aspects of their lives,” said Michael Deitz, senior group manager, Blue Link. “We wanted to design an app that allows them to enhance their Hyundai ownership experience through Blue Link.” Navigation elements are designed to reduce the steps needed to access Blue Link® features and services by leveraging familiar Smartphone touch commands.  A new swipe carousel allows users to quickly access core features without needing to take several steps. Shortcut buttons allow one-touch access to vehicle diagnostics and POIs while the main menu allows one-finger access to all features within the application.

REMOTE ACCESS FEATURES
Blue Link® Essentials subscribers can access a number of key vehicle functions remotely from the mobile application without the need to be in the proximity of the vehicle. Remote Door Lock or unlock allows for remote control and convenience from virtually anywhere. Remote Horn & Lights allows the subscriber to remotely activate the horn and lights. Remote Lights allows subscriber to remotely activate the vehicle lights only. Remote Vehicle Start, which has been expanded to include more Hyundai models, allows the subscriber to remotely start their vehicle, an especially convenient feature in cold states during winter months. Vehicles equipped with push-button start and automatic or dual-clutch transmissions are supported for Remote Vehicle Start. For added security, all remote access features require the vehicle PIN to be entered prior to the command being sent.

ENHANCED POI FUNCTIONALITY
The all-new Blue Link® mobile app includes new useful POI (Point of Interest) features that will come in handy for Blue Link® Guidance subscribers. Included is the ability to search POIs using the Smartphone’s on-screen keyboard by entering the name, city, state and/or zip. Searches can be done using the Smartphone’s built-in location service or by manually specifying the location. POIs then can be saved to the phone for quick access. Subscribers also have the ability to send the POI directly to their Hyundai vehicle or by email to a friend through the application. POIs sent to the vehicle also may be saved for later use via the POI History function. Blue Link®-equipped vehicles are not required to have a touch-screen navigation system to take advantage of Guidance features. Vehicles not equipped with touch-screen navigation will display navigation information on the standard vehicle audio screen using Blue Link’s Turn-by-Turn feature.

POCKET-SIZED PEACE OF MIND
Blue Link® subscribers can rest assured knowing that trained specialists are available 24/7 to help when needed most. Taking it one step further, the mobile application includes speed dial buttons to contact Roadside Assistance and Blue Link. A Vehicle Diagnostics screen provides access to critical maintenance information and the ability to view their Monthly Vehicle Report. Essentials subscribers can easily schedule a service appointment with their preferred dealer without making a phone call. Blue Link® alerts also can be toggled remotely from the application without visiting MyHyundai.com.

INNOVATIVE NEW FEATURES
In typical Hyundai fashion, Blue Link aims to set the standard for vehicle telematics through its innovative features and exceptional value. A variety of unique features have been included in the Blue Link® mobile app. Users can be a step ahead of Parking Enforcement via the built-in Parking Meter/Timer function. Car Finder allows Essentials subscribers to either search for their vehicle if they are within a 1-mile radius of their vehicle or save its location, useful when needing to recall a specific location of their vehicle.

BLUE LINK® PACKAGES

Blue Link Assurance package:

• Automatic Collision Notification (ACN) and Assistance – Provides immediate assistance when an accident occurs and an airbag is deployed.  In this event, an ACN signal, containing customer and location information, will automatically be transmitted to the response center.  Upon receipt of the signal, a response specialist will attempt to establish voice communications with the vehicle occupants and forward any pertinent information to emergency services.
• SOS Emergency Assistance – Customers request emergency 911 assistance by pressing the dedicated SOS button in the vehicle.  This action transmits vehicle information and location to specially-trained response specialists, who assist in coordinating the dispatch of appropriate emergency assistance to the customer.  The response specialist remains on the line with the customer until advised assistance has arrived.
• Enhanced Roadside Assistance – Enables customers to utilize their Hyundai Assurance 24/7  Roadside Assistance via a single in-vehicle button-press. With Blue Link, vehicle information (including location) is automatically transmitted to a response center, enabling the specialist to dispatch assistance more quickly and efficiently for vehicle assistance and retrieval.

Blue Link Essentials package:
Remote Access:

• Remote Door Lock/Unlock - Enables locking or unlocking vehicle doors via a toll-free number, owner’s website, or mobile phone application.
• Remote Horn and Lights - Enables activating the horn and/or lights via a toll-free number, owner’s website, or mobile phone application.
• Panic Notification – Notifies customers when the panic button on their vehicle key fob has been activated, signifying when a family member or other vehicle occupant may be in danger.  Notifications are configured online and occur via email or text message.
• Remote Vehicle Start – Enables customers to start the vehicle via owner’s website or toll-free number, or mobile phone application.
• Car Finder – (Exclusively available via mobile app) Allows you to find your vehicle on a map if you are within a 1-mile radius of your vehicle and gives you the ability to save your vehicles location for future reference.

Convenience:

• Alarm Notification – Notifies customers when and where the vehicle alert is activated via a text message, email or an automated phone call.
• Quick Tips – Provides quick reference assistance for primary vehicle feature location and function.
• Location Sharing – Enables sending vehicle location to select friends and members of social networking sites, including Facebook – directly from the vehicle.
• Voice Text Messaging – Enables hands-free outgoing text messaging to SMS text recipients allowing for distraction-free driving experience.

Vehicle Self Diagnostics:

• Automated Diagnostic Trouble Code Notification – Provides explanation and repair assistance using vehicle data and off-board diagnosis capabilities to better inform the customer of vehicle trouble alerts.  A combination of in-vehicle display alerts and guided voice messages provides customers with additional instructions (information also sent to the customer’s preferred dealer to assist with the repair process).
• Maintenance Alert – Notifies customers in vehicle as well as via website, email or SMS message that an upcoming service is due at various thresholds leading up to the event.  Configured online, the alerts explain what is included in particular maintenance intervals.
• Recall Advisor – Provides all pertinent recall information should a recall be initiated.
• Web Vehicle Diagnostics – Provides a report of vehicle diagnostics, eco-coach performance and other important information in a monthly email report and web page update, starting 30 days after registering with the Blue Link service.

Theft Protection:

• Stolen Vehicle Recovery – In the event a customer’s vehicle is reported stolen (and a stolen vehicle report has been filed with the appropriate police department), the response center can provide assistance to the police in an attempt to recover the vehicle.
• Stolen Vehicle Slowdown – Used with Stolen Vehicle Recovery, this enables law enforcement to gradually reduce the engine power of the vehicle, thus slowing it down to safe levels. A warning will be transmitted to the driver prior to the slowdown procedure.
• Vehicle Immobilization – Used with Stolen Vehicle Recovery, this enables law enforcement to send a signal to the vehicle which immobilizes the engine management system, thus preventing startup. This capability is only valid when the ignition is off, but the command can be saved by the engine ECU for later immobilization if the vehicle is on or in motion at the time of signal transmission.

Safeguard:

• Valet Alert – Enables alert via email, text message or automated phone message when the customer’s vehicle moves beyond a prescribed distance threshold after leaving the vehicle with the valet.
• Geofence – Enables monitoring vehicle movement in and out of pre-defined regions configured on the owner’s website. When the vehicle enters or leaves a designated region, the customer is notified by email, text message or automated phone message.
• Speed Alert – Notifies the customer via email, text message or automated phone message when their vehicle exceeds the specified speed threshold established on the owner’s website.  High value for parents of teen drivers and fleet customers.
• Curfew Alert - Notifies owners if the vehicle is being used outside a pre-determined time interval. Alerts are configured online and sent via email, text message and/or automated phone message.

Blue Link Guidance package:

• TBT (Turn-by-turn) Navigation Service Turn-by-turn navigation guidance provided for downloaded Points of Interest. Both visual and audio guidance is provided.
• POI Web Search by advanced voice recognition system and download – Enables Point-of-Interest searches using an automated voice system. Results can be downloaded to the vehicle navigation system. Live operators provide additional support, if needed.
• Daily Route Guidance with Traffic Condition – Enables customers to pre-define several routes to a common destination and receive a regularly-scheduled traffic alerts for traffic delays along those routes. Results include flow and incident data, along with “Fastest Route” recommendation.
• Traffic – Provides traffic information surrounding the customer’s vehicle and in the nearby area, based on preferences established using the owner’s website.
• Gas Station Locations and Gas Prices – Locates the nearest gas stations by price and provides brand and regular unleaded fuel price. Results are played back via automated voice, and can be downloaded to the vehicle’s navigation system.
• Eco-Coach – Tracks the customer’s driving performance habits (MPG and CO2 emissions) on a continual and historical basis. Results and environmentally responsible driving recommendations are provided on the owner’s website.
• Restaurant Ratings – Provides restaurant ratings for local restaurants with address download for turn-by-turn navigation or onboard navigation.
• Weather – Provides weather forecasts for the immediate area or for customer-defined locations within the owner website.

More details on Hyundai Blue Link are available at www.HyundaiUSA.com/BlueLink.

HYUNDAI MOTOR AMERICA
Hyundai Motor America, headquartered in Costa Mesa, Calif., is a subsidiary of Hyundai Motor Co. of Korea. Hyundai vehicles are distributed throughout the United States by Hyundai Motor America and are sold and serviced through more than 800 dealerships nationwide. All Hyundai vehicles sold in the U.S. are covered by the Hyundai Assurance program, which includes the 5-year/60,000-mile fully transferable new vehicle warranty, Hyundai’s 10-year/100,000-mile powertrain warranty, and five years of complimentary Roadside Assistance.

AGERO
Agero is a leading provider of connected vehicle services for the automotive, insurance and aftermarket industries and is a market leader in roadside assistance and claims management. Based in Medford, Massachusetts, the company has operations throughout North America and offices for connected vehicle programs in Europe. For more information, visit www.agero.com.

For more details on Hyundai Assurance, please visit www.HyundaiAssurance.com

What do you think of GM’s decision to pull its paid advertising from Facebook?

Thirty-four dealerships selected as WomenCertified Top Dealerships for Outstanding Customer Experience for 2011 were honored at the 12^th Digital Dealer Conference & Exposition held in Orlando in April.

This Top Dealership list, which is the first in an annual series, identifies the country’s top auto dealerships based on female customer satisfaction and women’s reported preferences during their car buying, leasing and service experiences.

WomenCertified®, the collective voice of the female consumer, created this important list so that women can identify dealers of choice in their community. The list is being sponsored by Dealer Communications, the leading multi-media information source for franchised automotive dealers and managers, and the owner and operator of the Digital Dealer Conference & Exposition.

Michael Roscoe, president and CEO of Dealer Communications, extends congratulations to all the dealers on the list. “If a dealership provides superior service to its women customers, it will provide that same level of service and satisfaction to all its customers. Earning a place on this list enhances any dealership’s reputation for superior customer service. Being identified by women as a dealership that can be trusted is something every dealership should strive for in today’s marketplace.”

A special luncheon honoring these dealerships at the 12^th Digital Dealer Conference & Exposition was sponsored by ELEAD One, a leading automotive CRM and marketing provider in the automotive industry.

Delia Passi, CEO and founder of WomenCertified, and former publisher of Working Women and Working Mother magazines, says, “Congratulations to our Top Dealerships who were selected because 9 out of 10 of their female customers would highly recommend the dealership to others.”

Passi added, “We were honored to partner with Dealer Communications to celebrate America’s Top Dealerships with the Women’s Choice Awards at the Digital Dealer Conference. The dealers were so impressed with the ceremony and luncheon and all the VIP treatment they received at the conference and from our luncheon sponsor, ELEAD One. We can’t wait to do this again at the next Digital Dealer Conference in October!”

Eligibility for the list is determined through WomenCertified’s detailed surveys of dealers’ female customers. Dealerships are scored against the WomenCertified Female Sales and Service Satisfaction Index, which is based on a joint customer satisfaction study with the Wharton School of Business. Criteria for being named to the list include: cleanliness, quality of the sales experience, women’s propensity to refer that dealership, and more.

“Through our customer surveys these dealerships demonstrated not only great service, but a sincere commitment to meeting the needs and preferences of their female customers. A sincere thank you to the progressive leaders listed below that are supporting WomenCertified to empower women both in their community, and globally to raise the bar in the customer experience. Women in your community applaud you!” Passi stated.

The following 34 dealerships are on the WomenCertified Top Dealerships for Outstanding Customer Experience for 2011 List.

Those dealerships highlighted in yellow also carry the seal for the Women’s Choice Award. Women’s Choice Award recipients are those Top Dealerships who have also made a commitment to partner with WomenCertified to promote their distinction in the community.

• Acura Columbus, Dublin, OH
• Acura of Libertyville, Libertyville, IL
• Alberni Toyota, Port Alberni, BC, Canada
• Alexandria Toyota Scion, Alexandria VA
• Darcars Toyota of Frederick, Frederick, MD
• DCH Tustin Acura, Tustin, CA
• Don Ledford Automotive, Cleveland, TN
• Fitzgerald Toyota Gaithersburg, Gaithersburg, MD
• Fresno Lexus, Fresno, CA
• Hank Graff Chevrolet, Davison, MI
• Harry Robinson Buick GMC, Ft. Smith, AR
• Jim Norton Toyota, Tulsa, OK
• JM Lexus, Margate, FL
• Jon Lancaster Toyota, Madison, WI
• Leachman Buick GMC Cadillac, Bowling, KY
• Lexus of Edmonton, Edmonton, AB, Canada
• Lexus of Orlando, Orlando, FL
• Longo Lexus, El Monte, CA
• Longo Toyota, El Monte, CA
• McGrath Lexus, Chicago, IL
• Miracle Motor Mart, Columbus, OH
• Paradise Chevrolet Cadillac, Temecula, CA
• Rusnak Arcadia Mercedes Benz, Arcadia, CA
• Rusnak Audi Pasadena, Pasadena, CA
• Rusnak Audi Westlake, Westlake, CA
• Rusnak Hyundai Inland Empire, Loma Linda, CA
• Rusnak Jaguar, Pasadena, CA
• Russell & Smith Honda, Houston, TX
• Scholfield Honda, East Wichita, KS
• Schumacher Chevrolet, Little Falls, NJ
• Suntrup Nissan Volkswagen, St. Louis, MO
• Victory GMC Trucks, Calera, AL
• Westchester Toyota, Westchester, NY
• Wheelers Automotive, Marshfield, WI

(See related story on this page for the first dealers named to the ongoing WomenCertified Top Dealerships List for 2012.)

These 2011 award recipients were extremely enthusiastic about being named to the list. Here is a sampling of their comments:

“The Women’s Choice Award was one of the highlights of going to the Digital Dealer Conference. With all the companies that attend, just about all are there to sell you additional products and services. WomenCertified.com was genuinely just there to say thank you for being a business that takes great care of all customers equally. All of us at Jim Norton Toyota are proud of this award since it is one that rewards our character and is not tied to sales goals or products in any way. Thank you Women Certified!” stated Hans Hulsman, Internet sales director of Jim Norton Toyota, in Tulsa, OK.

Brent Anhorn, marketing brand specialist, at JM Lexus, in Margate, FL, was also very enthusiastic about being named to the list. “Thank you WomenCertified, the team at Digital Dealer and ELEAD One for the world-class treatment throughout the event. We’d like to recognize the hard work and dedication of every JM Lexus associate that earned us this prestigious award. We couldn’t have done it without them. It was a great honor to share the stage with so many other dealerships that believe in providing a positive experience for the woman consumer.”

Rachel Webb, guest relations director at Lexus of Orlando, in Orlando, FL, concurred. “We would like to express our appreciation to WomenCertified for honoring Lexus of Orlando as a “Top Dealership for Outstanding Customer Experience” at the 12th Digital Dealer Conference & Exposition held on April 4, 2012. This is recognition that we are very proud of and it reinforces our commitment to ‘building relationships through better service’ for all of our guests.”

Liz Kelly, e-commerce director at Suntrup Automotive Group, in St. Louis, MO, was equally enthusiastic: “What could be better? The Women’s Certified Award is becoming the modern equivalent to the Good Housekeeping Seal. Both Delia (president of Women Certified) and Judy (president of ELEAD One) went above and beyond what was expected or imagined by honoring us with the Women’s Certified Award. We received white glove treatment the entire time. We will continue to strive to educate and train our staff so we may win this award each and every year. This is such an honor and a most prestigious award. I would like to thank Women’s Certified for bringing this certification into the automotive market.”

Trish Wagener, office manager at Acura Columbus, in Dublin, OH, agreed.  “It was an honor to be part of such a progressive group of dealers with the common goal of outstanding client service. Being recognized with the prestigious WomenCertified Award is an achievement we welcome and embrace.”

Tammy Darvish, vice president, Darcars Automotive Group, in Fredrick, MD, was also very pleased, “We were very honored to be part of such an exclusive event that sent a pretty strong message to our industry of the importance of not only recognizing but understanding the vital need for significant attention to such a vital market. Thank you to Judy Hathcock, president of ELEAD One, and Delia Passi, CEO, WomenCertified for being the business partners that took the lead to ensure that this event was all that more special.”

Judith Hathcock, owner and president of ELEAD One, who sponsored the luncheon honoring the dealers noted, “On behalf of my team at ELEAD One, I warmly congratulate all the Top Dealerships who not only provide outstanding service, but demonstrate an intuitive understanding of the requirements and preferences of their female clients. We deeply appreciate these progressive leaders’ commitment to support WomenCertified and treat all customers with respect and integrity, thereby raising the bar in customer experience. Women in your industry applaud you.”

(To read more quotes from dealers named to the 2011 WomenCertified Top Dealerships, list see the article on page 20 in the 2012 April issue of Dealer magazine.)

“Car buying is often viewed as a male-dominated activity,” said Delia Passi, “but women not only buy 51% of vehicles today, they also influence 96% of vehicle purchases for their families. Our goal is to identify and reward the dealerships that meet and exceed women’s expectations for the car buying process and encourage the industry to better serve their top customers’ needs.”

“Our study with the Wharton School showed that when you meet the expectations of women, you exceed those of men. This study clearly found that women set the standard for customer service. The top dealerships we’ve identified understand that meeting this standard is good business – both for the dealership and for the customer. The Women’s Choice Award is a win-win,” said Passi.

“In establishing this list and the high standards it represents, WomenCertified is providing an ongoing and extremely valuable service to automotive dealers.WomenCertified is offering added motivation and recognition to dealerships for achieving that superior level of customer service and satisfaction that all dealerships aspire to. Dealer Communications has been very pleased to sponsor this endeavor and work in partnership with WomenCertified, during 2011, and will continue to do so this year,” said Roscoe.

For information on how dealerships can become eligible for the 2012 Top Dealerships for Outstanding Customer Experience, visit: www.womencertified.com or email: info@womencertified.com or phone: 1-866-937-6996.

CHANTILLY, Va.. -– Social media advertising revenues will grow from $3.8 billion in 2011 to $9.8 billion in 2016, representing a compound annual growth rate of 21 percent, according to BIA/Kelsey’s U.S. Local Media Forecast (2011-2016). BIA/Kelsey, adviser to companies in the local media space, expects the local segment of U.S. social media advertising revenues to grow from $840 million in 2011 to $3.1 billion in 2016 (CAGR: 29.8 percent).

“Better performance, coupled with richer formats and creative elements, like video, will be the principal social ad market growth drivers,” said Jed Williams, analyst and program director, Social Local Media, BIA/Kelsey. “Social advertising’s local business penetration will steadily increase as SMBs’ understanding of social media deepens, and as the networks continually improve the ease of onboarding and campaign management. Facebook opening its Ads API to more partners, including those that work with SMBs, and Twitter’s self-serve platform will help to ‘democratize’ social ads, which will ultimately lead to more local growth.”

Click to expand/collapse graphics:

BIA/Kelsey defines social media advertising as money spent on advertising formats across social networks. The predominant social ad format continues to be display, spending on which will increase from $3.6 billion in 2011 to $9.2 billion in 2016 (CAGR: 20.6 percent), according to the forecast. BIA/Kelsey expects the social non-display segment to grow from $140 million in 2010 to $630 million in 2016 (CAGR: 35.2 percent).

Findings from the social local media forecast will be discussed during BIA/Kelsey’s upcoming conference, Mobile Local Media San Francisco, which takes place June 27. MLM San Francisco is focused on the intersection of mobile, local and social media. Information about this new one-day event is available at http://www.biakelsey.com/mlmsf.

Additional BIA/Kelsey analysis of the social media space is available in a special BIA/Kelsey advisory report titled, “$100B Valuation: Can Facebook Support It … and How?” The report is available for purchase at http://www.biakelsey.com/reports/facebookvaluation.asp. In addition, a slide presentation and on-demand playback of a companion webinar on this topic is available at no charge at http://www.biakelsey.com/Events/Webinars/.

About BIA/Kelsey’s U.S. Local Media Forecast

BIA/Kelsey’s U.S. Local Media Forecast (2011-2016) draws from proprietary data; company, industry and country information in the public domain; and discussions with clients and non-clients about the direction and pace of development in the local media marketplace. The social local media segment of the forecast is available to clients of the firm’s Social Local Media Continuous Advisory Service. For information on BIA/Kelsey’s CAS offerings, contact Steve Passwaiter at spasswaiter@biakelsey.com or visit http://www.biakelsey.com/Advisory-Services/.

About BIA/Kelsey

BIA/Kelsey advises companies in the local media space through consulting and valuation services, research, Continuous Advisory Services and conferences. Since 1983 BIA/Kelsey has been a resource to the media, mobile advertising, telecommunications, Yellow Pages and electronic directory markets, as well as to government agencies, law firms and investment companies looking to understand trends and revenue drivers. BIA/Kelsey’s annual conferences draw executives from across industries seeking expert guidance on how companies are finding innovative ways to grow. Additional information is available at http://www.biakelsey.com, on the company’s Local Media Watch blog and on Twitter at http://twitter.com/BIAKelsey.

AUBURN HILLS, Mich. — Chrysler Group LLC is playing matchmaker in Southern California this week as it brings together 40 Chrysler, Jeep®, Dodge, Ram, and FIAT dealers with 67 minority-owned suppliers from across the state.

• Program brings together 40 dealers with 67 minority-owned suppliers
• Designed to foster more dealer purchasing from minority suppliers
• Concept fashioned after Chrysler Group’s benchmark Supplier Matchmaker

More than 200 representatives from these California dealerships and suppliers will meet this afternoon at the Balboa Bay Club & Resort in Newport Beach.

This pilot Dealer Matchmaker event is designed to help Chrysler Group dealers learn about minority-owned suppliers and consider them for future business. These suppliers can provide the dealers with everything from furniture and office equipment to information technology, construction, and training services.

“We are hoping to create some long-lasting relationships between our California dealers and these minority-owned suppliers and vendors,” said Peter Grady, Vice President of Network Development & Fleet, Chrysler Group LLC and member of the Company’s Diversity Council. “We would like to continue these matchmaking events in other parts of the country.”

All of the participating suppliers were certified as minority-owned businesses by the Southern California Minority Supplier Development Council (SCMSDC). The matchmaker event is being hosted by Chrysler Group’s Network Development organization and Diversity Council.

The Dealer Matchmaker initiative is fashioned after Chrysler Group’s benchmark Supplier Matchmaker event, held annually the past twelve years in the fall, focused on providing minority-owned, women-owned and veteran-owned businesses access to Chrysler Group’s Tier 1 suppliers and the Company’s procurement organization.

Since Chrysler first launched the annual Supplier Matchmaker event in 1999, it has become a premier networking event in the automotive supplier diversity community. This year’s event grew to more than 2,000 participants, including 270 minority-owned, women-owned, veteran-owned and majority-owned Chrysler Group suppliers.

Chrysler Group’s diversity goals require that 10 percent of a Tier 1 supplier’s procurement buy be sourced to certified minority suppliers. The Company announced early this year that it spent $2.1 billion with approximately 200 minority suppliers in 2011, representing 13.4 percent of its total annual purchasing. Since 1983, the Company has purchased more than $45 billion from minority-owned suppliers.

“Chrysler remains as committed as ever to creating a diverse and sustainable supply base that directly reflects our customer base,” said Sig Huber, Director – Supplier Relations, Chrysler Group LLC. “Chrysler Group’s Matchmaker concept creates business connections that ultimately lead to positive economic outcomes for our supplier partners, our Company, our customers, our communities and, now potentially, our dealers.”

About Chrysler Group’s Leadership Commitment to Diversity and InclusionRecognized as a leader in promoting diversity throughout its enterprise, Chrysler Group was named one of the “100 Best Companies for Working Mothers” by Working Mother magazine 12 times, and has been recognized six times by the Human Rights Campaign Foundation as one of the country’s leading corporations supporting diversity and inclusion.

Chrysler Group has been included in DiversityInc magazine’s Top 50 or 25 Most Noteworthy companies for diversity lists six times since the benchmarks were establish in 2001. In addition, Chrysler Group has been named to HispanicBusiness magazine’s annual Diversity Elite 60 list for implementing strategies to reach more Hispanic customers and to pursue more business with minority- and Hispanic-owned suppliers.

In 2011 and in 2012, Chrysler Group was named among nation’s “Top Supporters” of Engineering Programs of Historically Black Colleges and Universities, recognizing the Company’s efforts to develop, recruit and hire talented students pursuing technical careers at the nation’s minority-serving institutions.

Over the years, a long line of Chrysler Group employees have received important professional recognition from various diversity organizations, including Black Engineer of the Year, Women of Color, HENAAC Great Minds in STEM and others, reflecting the Company’s strong commitment to developing its diverse workforce.

About Chrysler Group LLC Chrysler Group LLC, formed in 2009 to establish a global strategic alliance with Fiat S.p.A., produces Chrysler, Jeep, Dodge, Ram, Mopar, SRT and Fiat vehicles and products. With the resources, technology and worldwide distribution network required to compete on a global scale, the alliance builds on Chrysler Group’s culture of innovation, first established by Walter P. Chrysler in 1925, and Fiat’s complementary technology that dates back to its founding in 1899.

Headquartered in Auburn Hills, Mich., Chrysler Group’s product lineup features some of the world’s most recognizable vehicles, including the Chrysler 300 and Town & Country, Jeep Wrangler, all-new Dodge Dart, Ram 1500, Jeep Grand Cherokee SRT8 and Fiat 500. Fiat contributes world-class technology, platforms and powertrains for small- and medium-size cars, allowing Chrysler Group to offer an expanded product line including environmentally friendly vehicles.

Follow Chrysler news and video on:

YouTube: http://www.youtube.com/pentastarvideo
Chrysler Connect blog: http://blog.chryslergroupllc.com
Twitter: www.twitter.com/chrysler
Streetfire: http://members.streetfire.net/profile/ChryslerVideo.htm
Corporate website: http://www.chryslergroupllc.com

SOURCE Chrysler Group LLC

]]> http://dealer-communications.com/news/chrysler-group-llc-matches-dealers-with-minority-owned-suppliers/feed/ 0 http://dealer-communications.com/news/4-4-million-altimas-later-another-first-all-new-2013-nissan-altima-begins-production-in-tennessee/ http://dealer-communications.com/news/4-4-million-altimas-later-another-first-all-new-2013-nissan-altima-begins-production-in-tennessee/#comments Tue, 15 May 2012 17:45:02 +0000 Dealer http://dealer-communications.com/?p=36055

SMYRNA, Tenn. – It has been 20 years since the first Nissan Altima rolled off the line in Smyrna. Today, more than 4.4 million Altimas later, Nissan celebrates another milestone: production of the top-selling vehicle’s fifth generation.

The all-new 2013 Nissan Altima, which has been produced at Nissan’s Smyrna Vehicle Assembly Plant since the first generation rolled off the line in 1992, is the first of five all-new Nissan vehicles coming in the next 15 months. The most innovative Altima yet, the fifth-generation model builds on its strong reputation for quality and reliability and adds new levels of innovation, fuel-efficiency, dynamic performance and premium style.

“The Nissan Altima ranks among the country’s top-selling cars and best-known nameplates,” said Bill Krueger, vice chairman, Nissan Americas. “This generation is not only the most innovative Altima ever, it also becomes the benchmark for quality in the midsize car segment. And there’s no better plant to rise to the challenge than our top-quality manufacturing operations in Smyrna.”

To commemorate Altima’s start of production, Tennessee Governor Bill Haslam joined Smyrna team members and Nissan leadership as the first all-new mid-size sedan rolled off the assembly line. Smyrna will serve as home to more “firsts” in the coming months, including welcoming production for the 100-percent-electric Nissan LEAF and the batteries that power it, the next-generation Nissan Pathfinder, and, in 2013, the next-generation Nissan Rogue.

“We are proud that Nissan calls Tennessee home and that the Altima has been made here for more than two decades,” Haslam said.  “This new model is a testament to the company’s strong brand and globally competitive reputation and a reflection of our state’s talented workforce.”

The Altima begins arriving at Nissan dealers nationwide in June with a manufacturer’s suggested retail price (**MSRP) of $21,500. Like previous generations, the 2013 Nissan Altima will also be manufactured in Canton, Miss., and the engines will be produced in Decherd, Tenn.

“Thirty years ago, Nissan North America was at the forefront of what is now a thriving Tennessee auto industry that has brought good-paying jobs and economic growth to our state.  With the new 2013 Nissan Altima coming off the line today, I want to congratulate Nissan, its employees and all those involved in making this another successful year,” said U.S. Senator Bob Corker. “I truly believe Tennessee is now THE state for auto production in America, and Nissan deserves a great deal of credit for helping make that a reality.”

“This new Altima is one more reminder that for 30 years, ‘Made in Tennessee’ by Nissan has meant quality,” said U.S. Senator Lamar Alexander.

About the 2013 Nissan Altima

With the arrival in summer 2012 of the all-new fifth generation design – the most innovative Altima yet – Nissan promises to shake up the mid-size sedan segment again with the most engaging, innovative and stylish vehicle in its class. Among the 2013 Altima’s many attributes are a targeted best-in-segment* fuel economy of 38 mpg highway (2.5-liter engine), new premium exterior styling with a strong presence and excellent aerodynamics, an upscale interior with premium materials, and an outstanding balance of ride comfort, stability and a fun-to-drive demeanor with projected best-level acceleration.

Building on Nissan’s “Innovation for All” philosophy, the new Altima offers standard Bluetooth® Hands-Free Phone System with Streaming Audio via Bluetooth®. Also available are NissanConnect(SM) and NissanConnect(SM) Navigation with a suite of Bluetooth® phone connectivity features, including hands-free text message integration, Pandora® playback, real-time Google® POI search and more; along with Easy Fill Tire Alert, and next-generation Safety Shield Technologies, including Blind Spot Warning (BSW), Lane Departure Warning (LDW) and Moving Object Detection (MOD) systems.

The premium interior design looks and feels a class above, with new NASA-inspired “zero-gravity” front seats, available leather appointments, and a new standard Advanced Drive-Assist™ Display in the center of the instrument cluster that integrates key information – including available navigation, text messaging notification and audio data – right in front of the driver.

Dynamic performance is provided by a choice of a redesigned 182-horsepower (est.) 2.5-liter DOHC inline 4-cylinder engine or a 270-horsepower (est.) 3.5-liter V6, with both engines matched with standard Xtronic CVT® (Continuously Variable Transmission).

Altima’s next-generation CVT reflects Nissan’s more than 20 years of engineering and development leadership with its smooth, fuel-efficient design. Altima’s redesigned 4-wheel independent suspension features segment-first Active Understeer Control for refined feel and responsive handling.

The 2013 Nissan Altima is offered in seven well-equipped models to meet a range of customer needs and budgets. MSRP for the 2013 Nissan Altima sedan include:

About Smyrna Assembly Plant

Smyrna Assembly Plant employs approximately 5,600 employees and is 5.4 million square feet. The models produced at Smyrna include the Nissan Altima midsize sedan, Frontier, Maxima, Xterra and Pathfinder. In early 2012, the 2013 Infiniti JX became the first Infiniti and first luxury vehicle ever built in Tennessee. This year, the Smyrna manufacturing complex will begin producing the all-new Nissan Pathfinder as well as the 100-percent electric Nissan LEAF and the lithium-ion batteries that power it. In 2013, the all-new Nissan Rogue will join the Smyrna-produced lineup when it’s built in the United States for the first time.

About Nissan North America
In North America, Nissan’s operations include automotive styling, engineering, consumer and corporate financing, sales and marketing, distribution and manufacturing. Nissan is dedicated to improving the environment under the Nissan Green Program and has been recognized as an ENERGY STAR® Partner of the Year in 2010, 2011, and 2012 by the U.S Environmental Protection Agency. More information on Nissan in North America and the complete line of Nissan and Infiniti vehicles can be found online at www.NissanUSA.com and www.InfinitiUSA.com.

*Fuel economy comparison against internal combustion gasoline engine-equipped mid-size sedans. Excludes hybrid and diesel models.

** MSRP excludes applicable tax, title, license fees and destination charges. Dealer sets actual price. Prices and specs are subject to change without notice.

]]> http://dealer-communications.com/news/4-4-million-altimas-later-another-first-all-new-2013-nissan-altima-begins-production-in-tennessee/feed/ 0 http://dealer-communications.com/news/chrysler-and-gm-continue-strong-improvement-ford-stalled-in-3rd-toyota-and-honda-continue-their-slide-in-annual-study-of-automaker-buyer-supplier-relations/ http://dealer-communications.com/news/chrysler-and-gm-continue-strong-improvement-ford-stalled-in-3rd-toyota-and-honda-continue-their-slide-in-annual-study-of-automaker-buyer-supplier-relations/#comments Tue, 15 May 2012 12:04:27 +0000 Dealer http://dealer-communications.com/?p=36045

DETROIT – The real story in this year’s rankings of automakers by their suppliers in the 12th annual study of OEM working relations is not their overall rankings, but rather the dramatic and continuing slide of Toyota and Honda, and the continuing improvement of Chrysler Group, General Motors and Ford since 2005.

While still in first and second place overall respectively in this year’s rankings, Toyota and Honda – which had the highest scores in the study in the 2005-2007 period – have fallen this year to their worst scores in 11 years while Chrysler, GM and Ford have improved dramatically and as a group, have achieved their highest scores.  Nissan’s rankings have also fallen during the same period but showed slight improvement this year; however, it could lose fourth place to GM or Chrysler next year if these companies continue their current trend lines. Only eight points separate the three.

For 2012, Toyota and Honda still rank first and second overall, while Ford fell slightly but continues to lead the US automakers and remains in third place overall even though its improvement has been stalled for the last three years.  Nissan showed slight improvement and is in fourth place, while GM and Chrysler continue to improve and remain in fifth and sixth place respectively, according to the 12th Annual North American Automotive OEM-Tier 1 Supplier Working Relations Index® Study conducted annually by Planning Perspectives, Birmingham, MI, USA.

The study tracks supplier perceptions of working relations with their automaker customers in which they rank the OEMs across the six major purchasing areas broken down into 14 commodity areas.  The results of the study are used to calculate the Working Relations Index (WRI®) based on 17 working relations variables. This year, 564 supplier personnel from 439 suppliers participated, representing 62 percent of the six automakers’ annual buy.

However, all is not rosy for any of the automakers.  “It’s a concern that all of the automakers are ‘converging toward mediocrity’ in the overall low Adequate range in the Working Relations Index which is equivalent of a grade C in academia,” says John Henke, president of Planning Perspectives and a Professor at Oakland University.  In fact, 40 percent of suppliers still rank the Detroit 3 and Nissan in the “Poor – Very Poor” range.  According to the Henke, there are several reasons for this:

• Much of the improvement of the US automakers has come by fixing some fundamental relations problems – the “low hanging fruit” says Henke — problems that are relatively easy to identify and rectify, such as Chrysler improving processes to quickly rectifying late payment issues.
• There is still considerable performance variation among all OEMs’ purchasing areas except GM’s.  For instance, this year Honda’s Electrical & Electronics group scored 328, while its Body-in-White group only scored 231 (see Table 1 below).
• Implementation of the Working Relations variables year-to-year is inconsistent within each OEM.  For example, if GM had maintained its ranking in the “Help” category this year, it probably would have surpassed Nissan and Ford in its overall WRI ranking.
• While automakers’ top purchasing executives understand and support positive working relations, many individual buyers who work for them apparently do not.

Cost of Poor Relations; Benefits of Good Relations; Shortage of good suppliers

The costs to automakers of poor working relations are substantial, and the importance of good relations is significant and will only increase going forward with more automakers manufacturing more vehicles in North America, while competing for the same suppliers.

Over the years, the study has shown convincingly that automakers with Good-Very Good working relations get the following benefits.  Their suppliers:

• Are more willing to invest in new technology, and more willing to share new technology with the OEM
• Are more willing to support the automaker beyond contractual terms
• Are assigning their “A teams” in terms of OEM support personnel
• Are communicating more openly and honestly with the OEM
• Are willing to give greater price concessions to OEMs

“However, in spite of their willingness to give greater price concessions, OEMs have to give up the idea they can expect 5% reduction annually,” says Henke.  “That’s a race to the bottom and it will eventually destroy suppliers.  The price of vehicles does not decrease five percent a year; if it did, automakers would go out of business. So why should the price of parts?”

Whereas, automakers with poor relations with their suppliers:

• Receive smaller price concessions and must work harder to get them
• Are supported by less experienced supplier personnel
• Typically are not among the first to get their suppliers’ best ideas and innovations

How to Improve Supplier Relations: Focus and Discipline

The most important factor in improving supplier relations is consistency in managing the purchasing-engineering-quality interfacing activities.  “The automakers must understand that maintaining supplier working relations is a never ending process; it’s dynamic, not static, and requires continuous attention,” says Henke.

“Decades ago, US automakers thought they were building the best vehicles possible – until the Japanese came here and suddenly everything changed.  Automakers now expect 100 percent quality and are building the best vehicles they ever have.

“It is going to take that kind of focus and discipline to consistently achieve high levels of supplier relations – and the payoff will be just as valuable. Look at Chrysler’s performance during the Stallkamp days and where Toyota was only five years ago in the WRI ranking. It can be done – and Dan Knott did a remarkable job getting Chrysler turned around.  However, the challenge for Chrysler, GM and Ford will be to continually improve how they are working with their suppliers in the coming years and not stall, or worse – fall back to their adversarial practices – something that suppliers are telling us more frequently is already happening.”

The WRI consists of five key behavioral Component areas broken down into 17 variables that contribute to good supplier relations.  The five areas are OEM Help, OEM Hindrance, Relationship, Communication and Profit Opportunity. “It’s obvious these are not being implemented consistently nor are they being measured, and many buyers are not performing as if they understand that good working relations are essential to their company’s future,” says Henke.

There are two key things these automakers can do to tackle this problem, he says:

• Automakers should focus resources and training on improving “working relations quality” with measurable performance metrics — just as they did to improve product and manufacturing quality.
• Train the buyers better and make sure they understand that poor supplier relations are costing the automaker money and will no longer be tolerated.

The German Big Three

In 2010, Planning Perspectives began studying the Big Three German automakers in with manufacturing operations in North America:  Volkswagen, Mercedes-Benz and BMW.  Because this study is very new, its results are not yet included in the “official” Working Relations Index because the data doesn’t yet provide the historical depth of information necessary to explain trends and relationships relative to other OEMs.

However, certain broad trends are identifiable and credible.

For instance, since 2010, all three German automakers have fallen in their WRI rankings as dramatically as have the Japanese domestics, as the chart below shows – and for the same reasons:  Wide variations in managing the Working Relations Components across purchasing areas.  In fact, the German automakers’ variations are much wider than either the US or Japanese Big 3.

At Mercedes, for instance, its chassis area scored a very high 397, while its Powertrain area was more than 200 points lower at 192.

In addition, Trust has fallen all three years for the German automakers, while it has increased significantly during the period for both the US and Japanese automakers as the chart below shows (note the descending green lines).

(Photo: http://photos.prnewswire.com/prnh/20120514/DE05225-b )

Overall rankings – combining the Big Three German, Japanese and US automakers puts BMW and Mercedes at the top of the nine automakers, with VW at the bottom – as shown in the chart below.

(Photo: http://photos.prnewswire.com/prnh/20120514/DE05225-c )

About The Study:  Now in its 12th year, the Annual North American Automotive OEM-Tier 1 Supplier Working Relations Index® Study determines the supplier working conditions in numerous areas at the North American domestic OEMs (GM, Ford and Chrysler) and the foreign domestic OEMs (Toyota, Honda and Nissan).  This year, 564 sales persons from 439 Tier 1 suppliers – representing 1,915 buying situations (e.g., supplying brake systems to Chrysler, tires to Toyota, seats to GM) and 62% of the OEMs’ annual buy – responded to the survey.  Demographically, the supplier-respondents represent 39 of the Top 50 North American suppliers, 67 of the Top 100 North American suppliers.  The study culminates in the Working Relations Index (WRI®) which is a quantitative ranking by suppliers of their working relations with each of the six OEMs.  For the last three years, VW, BMW, Mercedes Benz have also been included.

About PPI:  Since 1990, PPI has specialized in developing and implementing in-depth surveys of suppliers for the automotive OEMs and Tier 1 suppliers, and companies in numerous other service and manufacturing industries worldwide, including the aircraft engines, computer, construction tools, electronics, energy, and food industries.  In 2001, PPI initiated its syndicated annual North American Automotive OEM – Supplier Working Relations Study.  This annual study has been recognized as the benchmark of supplier working relations for the automotive industry in the Harvard Business Review and several books.  The Studies provide critical sales and financial planning information for suppliers and their sales, marketing, and financial staffs, as well as a means by which OEMs and their purchasing staffs can get a reality check on their working relations with suppliers.  John W. Henke, Jr., Ph.D. is president of Planning Perspectives, Inc., and a Professor of Marketing at Oakland University in Rochester, MI.  PPI is based in Birmingham, Michigan USA and can be reached at +1.248.644.7690.  Visit PPI at www.ppi1.com.

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