Fleet-ing Thoughts

Vol. I No. 8

2005 in Review (or how I put all on all those air miles…)

It’s that time of year when you sit around a holiday table and explain to your aging relatives why you don’t call enough (I’ve given up on explaining what I do, kind of afraid to say I sell used cars…). I’m reminded of the idea that those who do not study (or at least review) the past are condemned to repeat it, although I’m already scheduled to repeat at least half of it next year, here’s a synopsis of the major auto events I attended in 2005:

January – JD Power International Automotive Roundtable and National Automobile Dealer Association Convention & Exposition (back to back) – last year it was in New Orleans, LA, and was especially memorable, as I had time to not only attend car things but some local institutions as well, before the Katrina tragedy and devastation. While the Roundtable and the NADA Convention were first class events, I had the incredible luck to get a front row table in a little local jazz club that just happened to be featuring the legendary Marsalis family that night – Ellis, Branford and Wynton. Let’s all do what we can to help this special city once again revive its unique culture and vitality.

February – More back-to-back conferences, this time the International Automotive Remarketers Alliance Roundtable, followed by Bobit Business Media’s Conference on Automotive Remarketing (CAR) in good old Las Vegas, NV. CAR is my favorite remarketing conference, and attended by all of the major remarketing practioners in the industry, from the manufacturers, retail lessors, commercial fleet management companies, etc. Cram packed with information, it’s also a lot of fun…plus, it’s in Vegas in February, so it keeps me out of snowy Chicago and Philadelphia…

March – Kind of a light month for events, but that didn’t stop me from going back to Las Vegas for Bobit Business Media’s Limousine & Chauffer Show – how many of you out there even knew there was a special conference just for Limo people?

April – If it’s springtime, it’s the National Association of Fleet Administrators Annual Conference & Exposition, last year in Dallas, TX. Given that this is the largest event of its kind, uniting more than a dozen or so regional NAFA chapter members, it hosts thousands of corporate and municipal fleet administrators (read, clients for my day job). I really had to work at this one…booths, networking parties, dinners & lunches – Only took a few days, and nights, of this to remind me of how old I’m getting – used to be able to go to these things with no “morning after” effects…

April also was the month for the inaugural conference of the National Association of Dealer Counsel (NADC), held in Atlanta, GA. Just formed in 2004, the NADC is a group of attorneys who focus on automotive issues and clients (from law firms to large dealer group in-house counsel, to automotive vendor counsel, etc.). This group certainly addresses a need; it’s amazing an organization like this wasn’t created long ago.

May – This time two conferences back-to-back, but on opposite ends of the country. First the annual I-Remarketing Conference, which, as its name suggests, is a forum for Internet-focused vehicle remarketing topics held annually by AutoRemarketing Magazine, in Phoenix, AZ.

The next day the National Vehicle Leasing Association (NVLA) Conference, the annual event that unites all of the NVLA Chapters around the country, was held in Orlando, FL. NVLA is made up of leasing companies that satisfy the transportation needs of small and mid-sized business around the country.

June – The National Independent Automobile Dealer Association Convention, held this year in Atlanta, GA, is focused on the non- franchised (used) car dealers around the nation. There are a lot more independent dealers out there than franchised dealers (over a two-to-one ratio), so this gathering presents a different perspective on retail than the manufacturer-dominated NADA.

July – Bet you would think July would be a slow month in the car convention business, mimicking retail sales, wouldn’t you? Not really, as there were three major events this month.

First, Driveitaway held our own, first-ever, “Remarketing Roadshow” in conjunction with our friends at LeasePlanUSA and Manheim Auctions, in New York City, NY. Our half-day seminar, entitled, “Sound Remarketing Strategies in an Uncertain Market” was well attended and received, even if it was pushing 98 degrees in the city. Can’t resist inserting a little panel discussion picture here…


Next, came the annual Ford Fleet Division Conference in Las Vegas, NV. Yes, this is the show that Ford puts on to highlight their vehicles that are particularly useful for fleet service for corporate, municipal and daily rental buyers.

Finally, the International Automotive Remarketers Alliance (IARA) mid-year roundtable was held the end of July, in Atlanta, GA. This one was held at the Manheim DriveCenter, always a great locale for an event (see Vol. 1 No. 4), and was marked by record attendance.

September – My favorite trade association, the Automotive Fleet & Leasing Association (AFLA) held their annual conference this month, in Phoenix, AZ. We started a tradition this year and, on top of all of the scheduled events, we threw our own little party for a few hundred of our closest friends…the association is made up of the most experienced group of corporate fleet managers, manufacturers fleet directors, dealer fleet managers, etc;, out there. The AFLA conference turned out to be one of, if not the, best event of the year, although next time I really should schedule our party for night when I’m not supposed to appear on a conference panel early the next morning…

Next I attended Bobit Business Media’s Car Rental Show in Las Vegas, NV. This is another event I’ve attended for many, many years, and while the car rental industry has been through many substantial changes (and will go through many more in the next year or so from what I can see), fortunately I have many old friends who are “regulars” in this group as well.

Rounding out September was the Auto Finance Summit back in Las Vegas, NV, put on by Royal Media. Focused on automotive financing, this event got all of the country’s leading automotive financing groups (banks, captive finance companies, etc.) all in one place for a multi-day conference…and as this was the first time I’d ever been to the Wynn, the newest hotel on the strip, it was no chore to attend.

Finally, towards the end of the month the National Auto Auction Association (NAAA) had their annual conference, in Scottsdale, AZ. Now, this is an organization made up of the hundreds of wholesale auto auctions around the country, and although many have online programs, as well “bricks and mortar” facilities, they regard “Internet only” companies like ours as the competition; and so I was never invited to attend. No matter, despite what it would seem I have many long time friends who are members of the NAAA, as well as vendors attending their annual event, so I went anyway. Unlike Groucho Marx, I would belong to this “club” if they let someone like me in as a member…

October – Started the month off at the National Fleet Resale Dealers (NAFRD) annual conference in Palm Springs, CA. This group, made up exclusively of used car dealers who buy corporate fleet vehicles and then resell them (either wholesale or retail), has been around a long time and I look forward to getting together with them every year. I have lots to learn about used car dealing from these folks.

Closed the month out at AutoRemarketing’s annual National Remarketing Conference & Used Car Expo in Orlando, FL. Once again got to touch base with a variety of expert remarketing practioners from all sectors of the business (retail banks, manufacturers, commercial etc.).

November – See the first few blog entries for details on the JD Power International Roundtable & the SEMA show in Las Vegas, NV, and Bobit Business Media’s F & I Conference also in Las Vegas, NV.
I made it to a few NAFA chapter holiday parties in Chicago, IL & Kansas City, MO, this month, just to round out the year.


Of course the events above don’t include my normal travels to clients around the country, or certain investors abroad, but it gives you an idea of the major industry events that have become a staple for people like me now for many years. Guess you have to like cars (and liking Vegas doesn’t hurt either…). Happy New Year folks…


Technorati Tags: Driveitaway, upstream remarketing, fleet sales, fleet manager, John Possumato, JD Power International Automotive Roundtable, National Automobile Dealer Association Convention and Exposition, Conference of Automotive Remarketing, Limousine and Chauffer Show, National Association of Fleet Administrators, National Association of Dealers Counsel, I-Remarketing Conference, AutoRemarketing Magazine, National Vehicle Leasing Association, National Independent Automobile Dealer Association

Vol. I No. 7

I’m Going to Kansas City…

I’ve been to so many NAFA Chapter holiday parties recently; I thought that another entry on my most recent visit wouldn’t hurt. It gives me a chance to introduce you to a couple of interesting “party people” whom I met up with, and some old friends I met up with again at the Mid-America NAFA Chapter holiday party in Kansas City, MO on Wednesday (Dec 14).

I rarely get out to the Mid-America Chapter, so when I do it’s a treat to see people I usually don’t get to see more than once a year at the annual NAFA convention. Now occasionally people in the industry bring their spouses or significant others to these events; and when they do, it’s always nice to meet “the better half” as they are invariably introduced in the world of automotive fleet. In the case of Bret Watson and his wife Gail, however, no “introductions” are required. Both Bret and Gail, arguably the fleet industry’s “first couple” are both accomplished fleet managers in their own right. Bret works for Sprint (over 10,600 cars, vans & light trucks, #23 on the list of the “Top 300 Commercial Fleets” according to Automotive Fleet Magazine); and Gail for Nationwide Insurance (over 5,800 cars, vans & light trucks, #53 on the same “Top 300” list). Quite a power couple in the fleet industry world. While I’m sure there are many folks in this business whose spouses are in the same industry, Bret & Gail are the only two I know of who both are in charge of “Top 100” fleets; they’re their own fleet management think tank when they are together -- which is why, after the formal party ended, we sat and talked for hours afterwards. Of course, given my obsession we talked more about used car remarketing than anything else, and how upstream remarketing has really reached the “tipping point” in visibility and acceptability only recently – yep, even in a bar late at night at the Fairmount in Kansas City, can’t get used cars off my mind.

Now, I think somewhere in these passages I may have mentioned that, unlike other areas of the retail car business, the commercial fleet side of this industry tends to attract people who never leave it – from the corporate fleet managers to the corporate lessors to the franchise dealers. Therefore, a long-term view and integrity count a lot, as does investment in the future. The fleet managers at franchise new car dealerships, (those who focus on satisfying the automotive needs of businesses, are typically the longest term sales employees at retail car dealerships. This longevity is noteworthy - in an industry where your average dealership sports a 100% annual turnover in retail sales personnel (a shocking figure, but true, the “front end” sales personnel in a dealership, on average, stay less than a single year…).

All of the info above is meant as a prelude to another old friend I met at the Kansas City shindig, a person whom I hadn’t seen in about 10 years, Bill Raynor, a fleet sales manager at Olathe Ford in Olathe, Kansas. Bill and I met for the first time when I was conducting the dealer focused small commercial sales program for Ford, then called “Ford Mainstreet,” now called “Business Preferred.” Ford was the first manufacturer back then to recognize that local as well as national commercial sales should be an important part of their franchise dealers’ business, and offered the first three-day training course (provided by yours truly) for both dealers and managers interested in starting up a local fleet focused department (a “dealership within a dealership”) in their Ford & Lincoln Mercury stores. In one of these seminars in Kansas City, I was the facilitator, Bill was representing Olathe, and, after the three-day intensive instructional seminar (the last day these folks had to produce a full blown business plan for the dealership), I remember a conversation Bill and I had about the long-term benefits of pursuing commercial sales in the dealership environment. Indeed, that loyalty to customer service, integrity and perspective were tangibly rewarded in the commercial end of things, in contrast to the transient pressures of the straight retail environment.

Well, ironically, it’s 10 years from the time Bill and I spoke about how commercial fleet was a long-term relationship business, and we met up for the first time since, at this NAFA holiday event, each of us plying his trade. Nothing like experience to validate ones predictions of many years ago. How ‘bout it Bill, makes me think maybe I didn’t put everyone to sleep with my ramblings back then…


Technorati Tags: Driveitaway, upstream remarketing, fleet sales, fleet manager, John Possumato, National Association of Fleet Administrators, Automotive Fleet Magazine

Vol. I No. 6

Happy Holidays, from NAFA Chicago Chapter

It’s that time of year again, when all Chapters of NAFA (see definition in 12.5.05 entry) have their holiday parties. There are about 20 or so geographically dispersed Chapters that have regular monthly or bimonthly meetings, and while I can’t get to many regular meetings throughout the year, I like to attend as many local holiday parties as possible, both to reconnect with old friends, maybe gain a few new fleet clients and, well, maybe I just like holiday parties.

Unfortunately, a lot of Chapter parties in different areas of the country fall on the same day in the next two weeks, so my posse and I divided up the map. Collectively we plan to attend the NAFA Chapter parties in Seattle, New Jersey, New York, Boston, Dallas, Michigan, Chicago, Saint Louis, and Kansas. I went to the Chicago Chapter holiday party on Thursday, December 8th. Just behind maybe Philadelphia, New York, and New Jersey, it has the most members who I’ve known for the longest amount of time, but don’t see often enough. The camaraderie at one of these events is rare, I think, in this day and age, at least for trade associations. People who have long been retired from the fleet business, or from work entirely, still make it to these events just to enjoy being with old friends. They volunteer their time and energy, with no monetary or business reward, in the spirit of the holiday, just to make a good event, reconnect with each other, and help new folks in the business ramp up on the learning curve quickly. Most usually connect the event to a charity function; Chicago always generates lots of gifts for the local Toys for Tots campaign.

The thing is, although these holiday NAFA Chapter meetings are attended by fleet managers, manufacturer representatives, fleet dealers, etc., I don’t think I’ve ever talked business directly at these functions, but it has always helped my business regardless of which job title I found myself in at various times. It represents the part of the business that I enjoy the most…


[A little post script – the party was held mid-day on the outskirts of Chicago in the suburb of Schaumburg, and, Chicago being Chicago, by the time I left the place it was snowing so bad that it took over 3 ½ hours to travel what should have been a 30 minute ride to get back to the city…oh the joys of wintertime – any chance they can hold the next Chicago NAFA holiday celebration in Vegas?]


Technorati Tags: Driveitaway, upstream remarketing, fleet sales, fleet manager, John Possumato, National Association of Fleet Administrators

Vol. I No. 5

Let Us Give Thanks, that in 2005, “Car Guys” and “Web Guys” are Starting to Get Along…

[Note: okay so after a week or two I’m still a little behind, as this entry deals with some post-Thanksgiving day thoughts, though Thanksgiving was over three weeks ago…guaranteed next entry will be more up to date, and the one after that will be almost contemporaneous…been running behind all year, I’ll be better next year…promise…]


My deal to myself in writing this blog was that I’ll only write about things I really have some underlying understanding of, which basically means I stay away from the bigger issues of politics, religion, why people give out fruitcakes during the holidays when nobody seems to like them, etc. So forgive me if I just reflect this Thanksgiving on what by any standard is a trivial little tidbit in the world of cars, on the factions that used to war but now have made a productive peace. It reminds me how far the industry has come in the past few years.

In the US auto industry in 1999 and 2000, the “Web guys” were going to “revolutionize” the car business. Young, “20 somethings” (mostly from California), who for the most part had no business management experience at all let alone car business experience, were financed by hundreds of millions of dollars of venture capital to make the bricks and mortar dealership obsolete. It sounds silly now, but I was in the audience when the almost adolescent young man from Carorder.com announced to a group of experienced dealers that his new company would put them all “out of business” with his new model backed with, what was it, $50 or $100 million from Trilogy (a large computer software firm). Claims from the original CEO of Carsdirect.com more or less echoed the same thing, along with others that were to “straighten out” the messy business of selling cars (Imotors.com, ecar, and others). Unfortunately for them what they ended up doing was burning away quickly the hundreds of millions of investor’s money they were entrusted with, on business models that veterans in the industry could tell from a distance were worse than silly. I happened to be sitting next to a Porsche dealer when the original CEO of Carsdirect.com announced that he would eventually make franchise dealers obsolete. The dealer told me how Carsdirect had recently purchased an in-demand Porsche model from him, only to resell it to the ultimate online purchaser for less than they paid him for the car – as he said, “I guess I will really never understand this whole Internet thing – I can’t see that that kind of practice threatens to put me out of business.”

To be fair, probably a majority of the “car guy” retail dealers were equally clueless when it came to the future potential of online sales. For example, I was implementing a dealer based manufacturer fleet program on site to many dealers who, in 1998 had yet to reveal actual new vehicle invoice prices to their salespeople, when that information was already easily available to the general public on the Web. Very few examined or embraced the potential new opportunities the Web opened up, to create buyers for new and used vehicles. As one old time dealer said to me, “I’ve had it with this whole dot com fad; its stupid to think it will have any bearing on dealerships.” His younger management staff who up to then had seen things a bit differently, dutifully did an about face and agreed with him to reject all things Net related, but that’s what happens when the dealership staff is comprised of your sons and grandsons….

Fast forward to November 2005, however, and the gulf between the two factions, in experience and outlook has narrowed dramatically. This is due, to some degree, to Darwinian business evolution -- those Net companies based on ridiculous business models, despite being backed with hundreds of millions in some cases, did go out of business, and a lot of “old timer” dealers have since retired or sold out as well. The poles have edged toward the middle ground and so now 98% of new car dealers have Web sites, and most use one or more Web lead services. Companies like Autotrader.com, Cars.com and eBay Motors are clearly hear to stay. And finally, the most respected old world dealer institutions like the National Automobile Dealers Association (NADA), and the two large dealer computer management companies that together hold 95%+ of new car dealers as customers, are dedicated to adding value by educating dealers on how best to use the Net as a tool for business – not just as a lead generation mechanism, but to facilitate vehicle financing, servicing etc.

The bridging of the gap between the old and the new was never more obvious than at the recent JD Power Roundtable (See entry 11.30.05). Old world suits and Web folks with studs (not on their shirts) together were both audience and presenters. Not quite as dramatic as the “lion and the lamb,” but a milestone nonetheless…


Technorati Tags: Driveitaway, upstream remarketing, fleet sales, fleet manager, John Possumato, National Automotive Dealers Association, JD Power Roundtable

Vol.I No.4

NAFA (Atlanta Chapter) Fleet Industry Symposium at Manheim’s DriveCenter… Yo! Ma, I’m Getting Respectable.
[Note: it is my intent to report on events, as I experience them, but, because I attended some very worthwhile events earlier this month, my first few entries will refer to events of the last couple weeks, in chronological order – don’t worry I’ll catch up in a few days…]

Now if anyone is following my regular missives (if after two inserts, you can call them regular), you realize I left Vegas once again on Friday, Nov. 11 – having been there the week before as well. From there I traveled back for a brief refresh in my home base of Philadelphia, then went to our central office in Chicago, then headed down to the National Association of Fleet Administrator’s Atlanta Chapter Symposium on remarketing, co-hosted and held at Manheim’s DriveCenter.

A Quick Detour for Definitions:

National Association of Fleet Administrators (NAFA)
Founded 35 or so years ago, NAFA is made up of about 4,000 corporate and municipal fleet administrators –the people responsible for operating the vehicles (cars, trucks, equipment rolling stock) owned or leased by the nation’s largest corporations and federal/state/local governments. You may not realize it, but the total number of vehicles represented by the members of this organization is well in the millions. The top 300 corporate fleets alone represent a total of over 1.2 million cars and light trucks. Fleet has comprised at least 20% of Detroit’s total output, year in and year out, for over 30 years, and, in months like October of this year, a whole lot more. As Dee-Ann Durbin from the Associated Press correctly pointed out in a news article this month, if it weren’t for fleet sale registrations, the horrendous 30%+ plunge reported by the “big three” would have been a whole heck of a lot worse…Fleet represented 40% of Chrysler’s sales in Oct. 05, 32% of GM’s sales, and 33% of Ford’s sales…

Manheim
Or Manheim Auto Auctions
A wholly owned subsidiary of Cox Enterprises, Manheim owns the largest group of physical vehicle auctions in the country, with more than 85 auctions in the US (and another 39 or so around the world). The next largest auction player, the recently public ADESA (NYSE: KAR) has 53 physical auctions. You may not be too familiar with them unless you are a new or used car dealer, as the vast majority of their vehicle auctions are restricted to licensed dealers -- a true wholesale outlet closed to the public. This isn’t the case in other countries but in the US, your average consumer can’t even get into one of these auctions, let alone buy anything. What is public, however, is Manheim’s most comprehensive annual report on used cars I’ve ever seen in the industry, called, appropriately enough, the Used Car Market Report, and put together by Tom Webb, one of the most knowledgeable economist type used car guys in the business.

Manheim DriveCenter (Atlanta, GA)
To my knowledge the one and only used car auction think tank facility, equipped with computer touch screens, used car auction viewing chambers, and every high tech gadget you can think of…now whether all this Mobey type techno actually helps to sell more vehicles or garners a higher sales price is open to question, but the bells and whistles sure look impressive…


Back to our story…

This day and half symposium was dedicated to the discipline of fleet remarketing (a subject near and dear to me since I founded a Web based platform/company specifically for this market back when remarketing wasn’t cool), an area that until recently was often ignored. (Actually, those who focused on this area of the business unceremoniously called “vehicle disposal” were usually assigned the task by large corporate bureaucracies as a punishment for some infraction!)

Today, though remarketing is becoming a hot topic as fleets and manufacturers alike have figured out that the true cost of a vehicle that is replaced every three or four years, isn’t the up front cash outlay, but the difference between what you pay on the front end and what you get for the vehicle when you sell or trade out of it, divided by the number of month’s “in service.” Amazing how simple that concept is, and yet this whole notion of “life cycle costing” took years and years for smart people and organizations to catch on to, let alone concentrate on.

Proof that remarketing is now getting serious attention can be seen by this full day and half symposium, which attracted some of the best names in the car business. Mary Ann Keller, the former equity analyst who was rated one of the top three automotive analysts over 12 consecutive years, spoke at the event. Eric Overby, a Goizueta Business School Professor, made a presentation, as did Manheim economist Tom Webb, noted above. Also, for the first time ever on one panel were the remarketing department leaders for virtually all of the major fleet lease management companies, including: GE Fleet, PHH, LeasePlan USA, ARI, Wheels, Donlen and Emkay. Now that last point may not mean that much to the casual reader (do I have casual readers? For that matter, let me know if I have any readers…e-mail me and let me know, it gets lonely “on the road”), but those in the fleet industry know that almost all of the entire large fleet lease market for all of the Fortune 1000 (3 million + vehicles) in the US is controlled by the eight named fleet lease companies above. It didn’t used to be that way. Back even 15 years ago when I was a Chrysler dealer selling a lot of fleet cars, the fleet leasing world was much larger, but, as in other industries, waves of acquisitions, mergers, and consolidations took place and now there are only eight…

Now I’ve been plugging the “new wave” of Web based upstream remarketing with my own company in the marketplace for pretty much five years now, and, up until very recently, only the very brave early adopters in the business would pay much attention. For a industry specific, “star studded” cast to show up on Friday/Saturday just before Thanksgiving week is quite a milestone.

“Vehicle Disposal” has turned into “Vehicle Remarketing.” Even the physical auction giants don’t see Web based remarketing platforms as the enemy anymore. And even the word “upstream” is starting to become a buzzword. And to think, it wasn’t that long ago that I felt like I was banging my head against brick wall. Still can’t tell my mother exactly what I do though -- selling used fleet cars is not all that mainstream respectable yet - but things seem to be moving in the right direction…


Technorati Tags: Driveitaway, upstream remarketing, fleet sales, fleet manager, John Possumato, National Association of Fleet Administrators, Manheim DriveCenter, LeasePlan USA, Emkay

Vol. I No.3

So, Do you Know What “F & I” Stands for?

[Note: it is my intent to report on events, as I experience them, but, because I attended some very worthwhile events earlier this month, my first few entries will refer to events of the last couple weeks, in chronological order – don’t worry I’ll catch up in a few days…]

So I left Vegas from the JD Power Roundtable and SEMA show on November 4, knowing that after a brief stint in Philadelphia and Atlanta, I would return on November 9 to attend yet another industry conference. By the way, it’s a good thing I like Vegas, as it is the most chosen city in the US to hold car related events.

This time, I’m attending the “F and I Conference and Expo” ­­-- another ground breaking industry specialty event pioneered by my old friend Ed Bobit and his group at Bobit Business Media. From a few hundred attendees when it started out a few years ago, this year’s conference and expo looked to me like it had record attendance, six or seven hundred or more from what I could tell, which I guess is no surprise as “F & I” income represents about the only way a new car dealership can make any money selling cars, at least new cars anyway. [Not only do the domestic manufacturers lose millions on selling new cars, but, according to the National Auto Dealers Association (NADA), when costs are factored in, the average dealer loses money on every new car sales transaction. Only the income from “F & I” reverses this dead loss on new car sales.]

“F & I”, in case you don’t know, stands for “Finance and Insurance” and is the car industry’s generalized label for all products and services that are sold with, and as a complementary add-on to, a new or used car sales transaction. New and used vehicle financing, extended service contracts, GAP insurance, credit life insurance, etc., that are arranged and sold to you by car dealerships are all considered “F & I” products. It’s a big business that requires specialization, and recently, has gotten a lot of attention because of the small number of dealers out there who insert abusive mark-ups on financing rates, extended service contract profits, etc. It probably doesn’t surprise anyone that some dealers take advantage of consumers. Most don’t of course, but the ones who do give all a bad name and focus attention on legal compliance and requirements. This, along with the fact that the legitimate profit on “F & I” sales are vital to the viability of your average car dealership as the profit margins on new vehicle sales for a dealer are now pretty much non-existent and there is slimming down on used vehicle sales as well, made for a jam packed conference.

It may or may not surprise the average consumer that pretty much the first day of this three-day conference (Nov. 9-11) was devoted to “F & I Ethics Certification.” Regardless of what makes headlines, most dealers are dedicated to doing it right, and while about half the seminars were devoted to educational topics on recent sales developments and selling more effectively (“Automated Application Technology & Contracting,” “Captive Credit’s Valued Role”, etc.), the other half addressed how to make sure sales are achieved ethically within each store (“The Benefits of ‘Doing it Right,” “Bad Heart or Empty Head; Awareness Training for Legal Compliance,” etc.).

Hats off to the Bobit Media crew once again, not only for being in the forefront of auto retailing developments but also for making legal compliance presentations bearable…


Technorati Tags: Driveitaway, upstream remarketing, fleet sales, fleet manager, John Possumato, JD Power Roundtable, SEMA, Bobit Business Media, National Automobile Dealer Association,

Vol. I No.2

What a (J.D.) Power Play…


[Note: it is my intent to report on things contemporaneously, as I experience them, but, because I attended some very worthwhile events last month, my first few entries will refer to events of the last couple weeks, in chronological order. Don’t worry I’ll catch up in a few days…]


Of all of the auto industry related conferences and events I attend (usually several a month), one of my favorites, and maybe one of the best kept secrets in the industry are the J.D. Power and Associates International Automotive Roundtables. They’re held a couple of times a year in the US (and once or twice a year outside the US), usually just before or concurrent with a major industry convention. The Roundtable conference I just attended, November 1-3, in Las Vegas, coincided with the gigantic Specialty Equipment Manufacturers Association show (no secret here). It was one of the best I’d ever attended, and while I haven’t been going all 20 years the J.D. Power folks have been doing these, I’ve been a regular attendee for a long time.

While at these Power Roundtables, you not only get to see presentations by the CEOs and leaders of the biggest players in the car business (manufacturers, suppliers, dealers, etc.), but you sit next to them in the audience. For me it adds to the quality of the event when the people sitting next to you lead some of the largest Fortune 500 car-related companies. This recent one, however, was even more interesting and relevant, being the first one designed and orchestrated by my old friend Charlie Vogelheim, now the Vice President, Automotive Development at J.D. Power. Charlie and I started in the car business around the same time about 20 or so years ago (although no one would argue that he has aged a lot better), and as well as having a “stage presence” and wit that could put him on the short list to replace Jay Leno someday, his background, as the former Senior Editor of Kelley Blue Book for many years, has given him a really keen handle on how the industry works and new developments on the horizon.

I think the majority of the attendees would agree that Charlie did an effective job of translating his knowledge into a unique conference. For the first time I can recall the Roundtable program has divided into two elements – the automotive review that everyone expects – plus a day and half focused on a new “Internet Automotive Roundtable” which featured panel presentations related to “The Future of Automotive Internet Marketing for Dealers” and “The Current State and Future Potential of Automotive Internet.” Panel presentations on drilled down topics such as “Search and the Future of Search” were populated by people from Yahoo! and Google, not just the normal slew of manufacturer advertising execs. In fact, due to the nature and content of the forum, the average age of the audience was brought down noticeably from past Roundtables, as it consisted not only of the normal MI & CA suit execs, but lots and lots of people from Yahoo, Google, Cnet, etc.

In short, Charlie’s steered the Roundtable to focus on the developments resulting from the convergence of the old line automotive world with the new online innovations. Perfect for me and lots of others who attended, a unique mix and presentation. About the only downside was the fact that with all of the “twenty & thirty somethings” in the crowd, I for the first time began to feel old in one of the last forums I could usually count on to make me feel young…

Good job Charlie…for the industry’s sake I hope you don’t replace Leno too soon…


Technorati Tags: Driveitaway, upstream remarketing, fleet sales, fleet manager, John Possumato, JD Power International Automotive Roundtable,

Vol. I No.1

A Beginning…or My One Chance for a First Impression

My name is John Possumato, and despite some diversions here and there, I am first and foremost a “Car Guy.” People who know me know I live and breathe the used car industry, and I have a stake in how it evolves. What I haven’t been is a journalist, but I am compelled to create this blog, because I have noticed a distinct lack of blogs, or easily accessible and condensed information, on very large chunks of this very large industry of automobiles – namely, car & truck fleet sales in general; and remarketing, which is the current fancy term for selling used vehicles, in particular.This relative lack of discussion is puzzling when you consider that commercial fleet sales (new vehicle sales to Fortune 500 companies and daily rental companies) has consistently represented more than 20% of Detroit’s total output every year for at least the past 20 years. More dramatically, while roughly 17 million new vehicles are sold in the United States annually, more than 43 million used vehicles are sold every year for roughly $473 billion -- that’s right – billion, in dollar sales annually.So in my opinion, the new vehicle fleet business is an important part of the car business and deserves a blog to highlight up-to-the minute developments, and generate conversation on the used car and remarketing business. To put a finer point on it, while the financial impact of the remarketing or sale of used cars impacts the economy more than the sale of new vehicles (there are about 20,000 franchise new car dealers in the country versus 50,000 non-franchise used vehicle dealers), vehicle manufacturers really only care about the sales of new cars, and so that’s where all of the paid advertising and media attention is concentrated. But that’s what blogs are for, right? To shine light on interesting topics which may not get traditional type media attention.For better or worse (or for the sake of transparency), It’s important for you to know that I put my “money where my mouth is” on the above conviction, and founded a company five years ago that is focused on the remarketing of fleet vehicles. In my 20 years in the car business, I’ve been a franchised new car dealer, have worked for large and small manufacturers in designing fleet sales programs for their dealers (Ford, GM & Jaguar); and have been active as a principal or observer in most segments in between, in retail sales and manufacturer issues.Because of what I do now (and whom I have known for as long as I’ve been in the business), I travel very frequently, attending just about every type of car event that goes on. As most of these events are not open to the general public and many fall under the radar screen of the general press, I’ll report on these various car conferences, roundtables, shows, etc. There are quite a few; I logged about 150,000 air miles so far this year, and there’s still a month to go. I’ll also comment, when appropriate, on some of the more colorful industry personalities that organize and attend these events, as I find many are industry icons (and very entertaining and informative), but virtually unknown outside of their particular auto industry trade specialty. I’ll try to insert as many relevant photos as I can as well.In reading these blogs, you’ll no doubt see some familiar car industry company names (like J.D. Power Associates or Kelley Blue Book), and some not so familiar (like LeasePlan USA or Bobit Business Media). You’ll also get a first hand, “off the cuff” account of some well-known car events (the Specialty Equipment Manufacturers Association), and not so well-known (the Conference on Automotive Remarketing), with various recognizable and behind-the-scenes personalities. What links it all together will be cutting edge information, observations, and synopses of events that you won’t likely find in one spot anywhere else on the Web (or anywhere else).I’ll make a commitment to accurate reporting, but most of the time I’ll relay my thoughts in more of a conversational than reportorial style. Let me know what you think about anything that’s put forth; and feel free to suggest blog topics on which you might want more detail. Above all, enjoy the ride…


Technorati Tags: Driveitaway, upstream remarketing, fleet sales, fleet manager, John Possumato, JD Power and Associates, Kelly Blue Book, LeasePlan USA, Bobit Business Media, Conference of Automotive Remarketing