The Last Days of Scion: A Dealers Perspective

In January of 2016 our Toyota of Tampa Bay store sold 22 Scions (about 8% of our New Car Volume). While that doesn't sound like a lot, we have new car franchised dealerships that play in the same relative ballpark of volume here in Florida (MINI, Buick, GMC, Mitsubishi). So was it a surprise that the Scion nameplate is going away? In many ways yes, but to a great degree it's just the right thing to do. I've seen the media misrepresent this event in their typical fashion ("Millennials are less interested in owning cars, Toyota says" Las Vegas Review Journal) and I felt that my thoughts would paint a picture closer to reality for all concerned. From a dealers perspective and a Scion owner's it's not all positive news but there is a silver lining here. 

First Impressions
Sitting in the showroom of our first Morgan Auto dealership I remember my first impressions of the Scion brand in 2004: Funky, simple to configure, no haggle (pure price) and hell bent on offering a quicker more streamlined process of car buying to the consumer (something dealerships still struggle with 11 years later). The target was younger buyers and I thought Toyota's approach was positive and proactive. Not every Scion model appealed to the target Generation X/Y consumer (xB for example) but overall the Scion brand did its job of bringing first time customers into the Toyota umbrella (70% of Scion buyers were Toyota first timers). Over the next five years I watched as Honda customers got older and Toyota's younger. Scion was a part of solving a challenge that some of Toyota's competition struggled with. 

What Scion did for Toyota
No one wants to know their average buyer's age is growing each year. Acquiring a consumer and creating brand loyalty inside of the 25-34 demo is a huge achievement in retail especially when you have more mature models to bring them into later in life (Camry, Prius, Highlander, Sienna). Plus who wants the stigma of being the most driven car on the Senior PGA Tour (think Buick, Lincoln)? We used to have Scion meetups at the dealership. Scion gave us the right to enjoy the car rally element that only exotic buyers and classic car owners enjoyed. It was always a positive talking point. Their concept models were outlandish and progressive. Then it all just seemed to go away. 

Flyer from a 2008 Scion Event at Toyota of Tampa Bay "Wicked Whips 2.0"

The Beginning of the End
Around 2009 sales began to decrease and the excitement for the brand dropped to a whisper. New Scion models didn't ignite the passion they first had and Toyota annual meetings were spent with mentions of rebooting and revitalizing the brand. Scion tC (Scion's volume model) sales fell in half. The crossover SUV segment was growing and Scion didn't have a dog in that fight. Even the fabled Toyota 86, which became the rear wheel drive Scion FR-S (great car/right price) couldn't bring back the brand. Scion had fallen into a niche and lost all aspirations of regaining growth and of becoming a "2nd dealership" for Toyota dealers. 

What is Actually Happening / Which Scion models are staying with the Toyota brand?
All Scion models will fold into the Toyota brand in 2017 save for the Scion tC which had previously been slated to be discontinued in 2016. So the Scion iA, iM and the FR-S will soon have Toyota badging. Even the Scion CH-R crossover concept will honor it's reported release but as a Toyota model instead. A Scion owners service relationship with their Toyota dealership should remain virtually unchanged. This is good news ultimately for everyone. While I do believe Scion helped bring younger buyers to Toyota over time Toyota was began to do this on their own. It's a challenge to manage two separate brand philosophies under one roof and many elements of the Scion experience are coming to Toyota anyway. 

Is the death of Scion a referendum on "Pure Price?" 

I think to a degree the death of Scion does tell us something about "Pure Price." While the consumer experience is crying out for a new way to engage, interact and ultimately buy from dealers, the appeal of Pure Price within this is overstated. In the past months Toyota has placed a renewed focus on reducing the time it takes to buy a car while encouraging dealers to take advantage of resources that allow customers to do complete a great deal of the purchase from their couch. This is a positive area of investment for dealers. Dealers are re-aligning themselves for this new reality. While there may be generational differences amongst our guests in their level of comfort with negotiation, it is my personal believe that we should trust our customers to be well researched and discerning which can lead to an efficient two way conversation about price.

Scion dealerships need to share in the blame too 
The Scion model of "Pure Price" and delivery within an hour was seldom adhered to by dealers. Competing dealers would use trade allowances, waived dealer fees and free accessories to compromise the element of "Pure Price" and buy consumer favor. Scion as a brand never got a fair look as to the success of this model simply because DEALERSHIPS failed to discipline themselves to it.

Scion: Victim of Its Own Success? 

Ironically Toyota of North America CEO Jim Lentz (and former head of Scion) foretold of this event. "Do you risk alienating the boomer buyer to get to Gen Y?" Lentz told Automotive News in 2002. Scion after all allowed Toyota to market in unconventional ways, breaking ground in event, promotional and social media marketing. "No, it's safer to create Scion and keep the boomer buyer."

He then added, "But in the future, we will have to integrate Toyota and Scion." 

Searching for a Part Time Reputation Management / Social Media Manager in the Tampa Bay Area

Part Time Social Media & Reputation Management Manager

whitehat three60° 

Tampa Bay Area

Florida 

Job Description:

Manage various reputation management accounts and social media accounts for a major independent franchised automotive dealership group based out of Tampa, FL.

Pay: $12 Dollars an Hour / 29 Hours Weekly / Office Hours Negotiable (Flexible Schedule)

Responsibilities:

Respond to dealership reviews on platforms such as yelp!, dealer rater and Google + Business.

Distribute (E-mail) Positive & Negative Reviews to relevant department heads.

Use whitehat’s reputation surge process to drive additional reviews and customer feedback.

Social Media content creation management for Google + Business and Instagram.

Specifically: To grow followers on both platforms, garner engagement, create relationships with brand aficionados and local influencers.

Become a company advocate in these specific social spaces and engage in dialogues and answer questions when appropriate.

Qualifications and Experience:

Possesses excellent written communication skills and the ability to communicate in a personable, not robotic-tone.

Possesses knowledge and experience in the tenets of traditional marketing (Marketing degree or specific study not a necessity).

Demonstrate creativity and documented immersion in Social Media (Include Screen Shots or Links to Specific Examples).

Experienced in sourcing and managing content development in web publishing.

Can transition from the creative side to the analytical side.

Displays in depth knowledge of a broad spectrum of Social Media applications and their associated back end tools.

Is a team player with confidence and the ability to hold oneself accountable to job description. Knows appropriate times to communicate challenges and issues when an escalating situation may arise.

Demonstrates overall winning Social Customer Service skills. But be empathetic overall to customer while holding an upbeat stance that looks at the big picture.

Please contact Brett M @ brett@whitehatthree60.com or 813.340.0544 
Please attach resume & applicable examples of Social Greatness or Written Communication! 

Rick Scott visits the Morgan Auto Group's Brandon Honda store on January 8, 2014

4 quick takeaways from my brief visit with Florida Governor Rick Scott

Florida Governor Rick Scott stopped by our Brandon Honda store near Tampa this past Wednesday to reinforce a major proposal that could amount to $400 million in tax savings for Florida drivers. The tax break would reverse some of the legislation we saw in 2009 that sent tag renewals to record highs. As a dealership employee we often electronically administer this work for customers so naturally we heard the negative response in a major way. In my opinion this move is also a symbolic break from much tougher days...both for our state and car dealers.

Brett Morgan, Larry Morgan, Florida Governor Rick Scott & John Marazzi

#1) He's more personal than people give him credit for.

Like my father, Governor Scott is a mid-western boy by birth and college education. Also like my father he came from humble beginnings in life. He had done his research on my father and while that's what a good politician should do - it was a neat conversation to watch. Say what you will say about them both - but a self made man is exactly that in many respects. Success was neither given nor destined for either. In fact I would also throw our partner John Marazzi into that same breath. These are men who have succeeded in life through hard work, determination in spite of what others were able to provide them in life. Their lives have been more about what they have been able to provide to others in the way of opportunity, growth and success. Don't feel that way about the Governor? That's fine but I'd read this human interest piece and take a break from the politics for a minute.

The Governor also made light of his friendly competition with Texas Governor Perry and a small bet he had with the Alabama Governor over the recent BCS National Championship between Auburn and FSU.

#2) He looks like Peter Garrett, the lead singer from Midnight Oil. 

Ironic maybe that Garrett, is now an Australian politician. Wait? As I was creating this graphic below I googled both names hoping someone already did my work for me. They hadn't, but I did realize Jon Stewart from Comedy Central had already made this joke. So not cool. Jon went to my rival college (College of William and Mary) as I am a Richmond Spider. I no longer like my own joke. At least if you know of Midnight Oil we know you have good taste in music. Moving on...I digress...

#3) The local Media is HARD on Rick Scott...

"They should be!" Stop muttering under your breath...I can hear you. Seriously, yesterday's announcement was a very positive thing. But since he had alluded to it previously at a Tampa press conference some 30 days ago this was most certainly overkill! I didn't feel that at all. This time he decided to return to an appropriate venue (locally owned car dealership), on a slow news day, and talk about the savings and this time with more specificity. I figured he'd gotten it right. Every piece of media written though basically waxed the same... 

"Clearly interested in publicity in the politically crucial Tampa area about a tax cut, Gov. Rick Scott made a second appearance in Tampa in less than a month Wednesday to talk about his proposed cut in vehicle registration fees."

Wow even the Tampa Tribune is worn out by two local visits in a 30 day period! Like you've never written virtually the same article before? Ha! 

#4) People don't see the big picture anymore in politics. They remember only issues (and moments) the media magnifies. And they speak with a venom that makes me sad for my generation. 

People don't look at the big picture, the small victories or potential future gains in politics. My guess is that between the "he's not personable" perception of Rick Scott and issues like the proposed drug testing of welfare recipients that he's gained some enemies. My opinion is that these things sort of become "Red Herring" issues in the sense that they aren't within the top 10 opportunities and challenges facing our state, but all the same they become defining. I would argue the same on the other side of the isle for what happened to former Governor Crist. His brief embrace with Barack Obama lead to his eventual political cross-over. The sad part is as state residents (specifically younger people) we hang our hats on these moments. We close our ears to Scott's vision of a state with a greater draw of large employers. We stop listening when he uses the example of cities like Austin, Texas as a creative and growing city he'd like to see replicated in Florida. We stop peeling the onion and driving towards the core of what could make a better Florida. We roll our eyes and say, "there goes the idiot who wants welfare recipients to be drug free to receive our benefits." When Governor Scott talked about us taking a greater, deeper pride in our state...I was moved. Those are the kinds of beliefs that can bring people from all walks of life together. We grasp at the negatives far too easily...

Don't believe me? Within moments of posting on our Facebook page about the Governor's visit we received the following comments: 

"Great you got to meet the Governor. Just sorry it was THAT one." 

"Ask him how much money he plans to make drug testing all of florida? He voted for drug testing for welfare and state employees because he owns the largest drug testing provider in Florida. Hes an asshat" 

"I couldn't agree with you more. Hes one of the worst thing thats happened to florida."

Truth is we probably always spoke this way, save maybe the "asshat" remark. It's Social Media that has now given every one a voice into a stranger's living room and that's both exciting and terrifying to me. Freedom of Speech is important but I'm probably not wrong if I am assuming that these are opinions being formed on a few basic factoids. I'm trying to be more balanced in my approach in life. Am I saying that the Governor deserves your respect just because he is the Governor? No. What I am saying is that if a large majority don't we probably aren't moving anywhere as progressing people. In walking the room that evening and speaking with many of my business associates we all agreed we wouldn't have the stomach for politics. CAR DEALERS not being able to stomach something? Yes. That's what I said.

When Governor Scott first got out of the car yesterday he first asked about the healthy of our business. It's funny, growing up with an entrepreneurial father you notice some things. One of my greatest takeaways is watching the personal growth opportunities a business leader can provide to so many. The Governor was pleased to hear our business was growing in the post-recession and eluded to a Florida's fiscal health and the success of "smaller government" and a solid foundation moving forward. This philosophy right here is at the core of what drives entrepreneurial America. I am a huge believer in the impact we've made in our communities as entrepreneurs. Bigger more inefficient governments can drain of our own tax revenues while stunting the growth of many whose success paves the road of opportunity for others. That's a BIG PICTURE issue that is effecting our state here and now.

I just hope the next time the Governor (or another politician you consider an asshat) sincerely speaks up, you listen - and don't get lost in the sound-bytes and "red herrings." You might just learn something. 

Tampa Auto Show - Tampa Bay International Car Show is going on now at the Tampa Convention Center (November 22-24)

1) Show's Must See Display: Lamborghini 

It's the 50th Anniversary of Lamborghini and in case you missed the recent incredible 60 Minutes special about it, it's time for you to see what all the fuss is about.

The display is kind of buried in the back of the convention space's first floor but it is well worth peaking around to find. The Lamborghini display actually has one of the thirty 50th-Anniversary Lamborghini Aventadors that are making their way to the United States. They also share an entire room across from the Aventador display with several other Lamborghini's to look at. Last year because of allocation issues Lamborghini wasn't even able to display a single Aventador.

50th Anniversary Lamborghini Aventador (Only 100 Produced)

The Lamborghini display is manned and features inventory from Lamborghini Sarasota which is Tampa Bay's Premier Lamborghini store. You can find out more about Lamborghini Sarasota here:

2) Most Interactive Display: Toyota 

Toyota was giving away prizes, busy with amplified walk arounds (who knew the new Corolla was this exciting?) and had nearly every single vehicle in their line up represented. Several concierge desks also were available for consumers with specific product related questions. Well done Toyota you had a very well staffed booth. 

Notable: Chevrolet's Corvette Media Display was pretty great. 

3) Fun for the Kids

Try Ford's racing simulator. It is after-all the 50th Anniversary of the Ford Mustang. 

The Tampa Auto Show is brought to you by Motor Trend and the Tampa Bay Area New Auto Dealers Association. 

Brett Morgan makes 2013 Automotive News 40 Under 40

Brett Morgan owes his career in auto sales to the fact that his father was restless in retirement.

In 2004, Morgan had a radio-programming job in Virginia when his father offered him a different path.

Larry Morgan had sold his Tires Plus chain of 600 stores a few years earlier but decided he wanted back in the auto industry.

"He just called me up one day and said, 'Have you ever thought about selling cars?'" Brett Morgan says.

Brett Morgan at his home office in Tampa: Toyota of Tampa Bay

Since then, the father-son pair has expanded what began as a minority interest in a Honda and Volkswagen dealership into Morgan Auto Group, which has 11 stores and is ranked 78th onAutomotive News' list of the Top 125 Dealership Groups.

Larry Morgan is CEO of the Tampa-based group, and his son has had a variety of management jobs at its dealerships, including taking over an unprofitable Buick-GMC store in 2009 at age 30. At the time, General Motors had just shut down Pontiac and the store had lost $800,000 the previous year as the recession dried up sales.

Under Brett Morgan's leadership, Gainesville Buick-GMC swung to a $500,000 profit the following year. He attributes the quick turnaround to "thoughtful expense control" and persuading his father to let him hire people into key positions at a time when most dealerships were cutting staff.

Now, as variable operations director for the dealership group, Morgan says he applies sales and marketing strategies that succeed at individual stores throughout the group without taking a "cookie-cutter" approach. He also works to increase customer engagement and retention through social media.

Morgan also is involved with administering the group's Helping Hand Fund, which provides gifts and loans to employees in need.

Morgan says of his unusual business start with his father: "We've learned at the same time. We have an unusually great dynamic. I'm lucky that he was bored and failed at retirement."

-Nick Bunkley (Automotive News) 

For more on Automotive News "40 Under 40" follow this link: http://www.autonews.com/section/under40

Lamborghini Tampa Florida FL

Tampa's Morgan Auto Group has Florida's newest Lamborghini store. Lamborghini Sarasota serves the Tampa Bay area and has since 2010. For Sales and Service Contact General Manager Victor Young or Fabio Ruiz in sales. 

http://www.lamborghinisarasota.com/about-us/staff/

Lamborghini Sarasota is behind BMW of Sarasota off Clark Road in Sarasot

Lamborghini Sarasota

5145 Clark Rd
Sarasota, FL

Sales, Parts & Service: 

(941) 556-2980

http://www.lamborghinisarasota.com/

Visit our showroom to view our current Lamborghini lineup. 

Lamborghini Aventador Tampa

Lamborghini Gallardo Tampa 

Lamborghini Urus Tampa

Pre Owned Lamborghini Aventador 
Pre Owned Lamborghini Gallardo Tampa 
Used Lamborghini Tampa
Used Lamborghini Sarasota 
Used Lamborghini Aventador Tampa 
Used Lamborghini Gallardo Tampa 
Exotic Car Tampa 
Exotic Car Lamborghini Tampa 
  

Ford Turns to Tablets to Grow Consumer Loyalty

When you buy a gift card at Starbucks you have the option to place the card directly on your Smart Phone. When you order a pizza online you can track the Pizza’s progress from the oven to your driveway.  If you were speaking to Ford’s Vice President of North American Sales Ken Czubay he would tell you Ford is behind on the technology front and they know it.

Czubay, whose LinkedIn profile states he is Ford’s “Sales Guy,” is counting on Apple iPads to increase customer engagement. He spoke recently in front of a packed house at Wesley Chapel’s Saddlebrook Resort in Wesley Chapel during Ford’s regional Southeast business meeting. The tablets will be launched in both Sales and Service with a variety of applications targeted at giving customers a greater and more efficient experience. In Service applications will quickly pull up a customers vehicle history and offer an efficient RO build.

Ford began using tablets and their new “Showcase” application recently through a Dealership opt-in program. The application is an extension of Ford.com allowing vehicles to browse inventory and customize the Ford order of their dreams.

Czubay admits that despite Ford’s recent strides they need to become more of a car company being that the opportunity with their best selling F-150 truck is limited. While Ford’s Mike Rowe-lead commercials are favorably received customer loyalty is flat on both of the arena: sales and service. Whether or not tablets become a part of the successful culture of Ford remains to be seen but will in a large part come down to execution. Ford admits that until they find a differentiated customer strategy at the dealership level they will still be haunted by third-party Internet providers like TrueCar that offer and deliver a unique customer experience.

MINI targets Growth and counts recent Success

At their annual Regional MINI meeting in Atlanta, GA MINI USA targeted growth and opportunity while lauding the year’s successes including MINI of Wesley Chapel’s state of the art new facility and franchise.

The United States have become MINI’s largest market and are quickly, in light of BMW’s woes in China, becoming a real focus for BMW as well. MINI targets growth to 100,000 units annually by 2016; which would be a 34% increase for the manufacturer. They also state they will double sales of CPO (certified pre-owned MINI’s) in four years.

The New MINI Paceman Concept is Coming Soon

A large part of their strategy is to fix quality issues inside the brand. MINI has vowed to improve JD Powers initial quality issues which are the single black eye in one of the US’s most exciting car brands. MINI plans to add a few points as well which has not typically been a part of the MINI growth strategy.

MINI also plans new product launches with Paceman, which will be the first MINI to feature a rear boot badge. While MINI is careful not to lose it’s “MINI” appeal it has targeted the larger small car segment (Countryman) as a real growth opportunity. Nationwide events like Dragon and “MINI takes the States” have become more less a cultural phenomenon and will continue to be a point of MINI’s brand awareness strategy. Awareness of the brand is a challenge amongst a humble ad budget and small dealer body but the upcoming MINI advertising campaign will attempt to resonate with the unique proposition and personality of MINI and MINI buyers.

Follow @MINIofWC on Twitter!

Like facebook.com/MINIofWesleyChapel/ on Facebook 

Toyota Unleashes New Slogan; Promise of 8 new models in 2013

HomeNews Releases
 

Categories: Toyota Corporate

September 12, 2012
Toyota Provides Annual National Dealer Meeting Highlights
LAS VEGAS, NV (September 12, 2012) -- Toyota Motor Sales, U.S.A., Inc. held its annual Toyota division national dealer meeting here yesterday attended by representatives from over 1,400 of Toyota’s U.S. dealers. Speakers included Toyota Motor Corporation (TMC) President Akio Toyoda, Toyota Motor Sales, U.S.A., Inc. (TMS) Chairman and Toyota Motor Corporation (TMC) Executive Advisor Yoshi Inaba, TMS President and CEO Jim Lentz, Toyota Division Senior Vice President Automotive Operations, Bob Carter, Toyota Division Group Vice President and General Manager Bill Fay and Vice President-Scion Doug Murtha.

Mr. Toyoda shared his vision for the company and his focus on collaboration as a key contributor to the company’s success moving forward, when speaking about the new tag line, “Let’s Go Places.” Some key points from his speech included:
“Let’s Go Places,” Toyota’s engaging new tagline, reflects the company’s commitment to more exciting products and the promise that customers are invited to take part in shaping Toyota’s future. The new tagline will be integrated into all of Toyota’s national and regional advertising in 2013.
Collaboration not only within Toyota, but across the industry and with key businesses in other industries. Mr. Toyoda pointed out recently formed alliances with Tesla, Microsoft, Salesforce.com as well as BMW and a partnership with Ford on the development of an advanced new hybrid system for light trucks and SUVs. These collaborations help the company stretch beyond its own boundaries and create cars that will improve the lives of customers.
While acknowledging that his vision of collaborating with competitors may seem unorthodox, Mr. Toyoda explained, “Let all of us in this industry strive to make the best cars we can and work together for the greater good of all our customers.”

Highlights from other executive speeches included:
Seven new or updated Toyota and Scion vehicles launched in 2013. The company continues its commitment to building in the U.S. with strong product cadence including the new Avalon and others.
Toyota’s Sales Recovery. Customer loyalty was key to realizing the strong and successful recovery. Toyota’s U.S. sales are up 31 percent from last year, while the industry is up only 14 percent. The company expects to sell over 2 million vehicles in 2012 – the first time since 2008.
Prius family launch. The brand continues its success and domination of the hybrid market with more than 50 percent market share.
The launch of the new generation Camry. The passenger car sales leader launched successfully, resulting in large gains appealing to younger drivers and families. The average Camry buyer is now just 52 years old, down from 60 years old previously and below the segment average of 58. There are 7.5 million Camrys on the road today, and Camry continues to have the highest owner retention in the segment.
Toyota’s commitment to putting a fuel cell vehicle on the road by 2015. Toyota is researching bio-fuels and next-generation materials to help make vehicles that will be lighter, safe and more fuel-efficient. Telematics, another area of investment for the company, will contain research into car-connectivity technology such as gesture recognition and an autonomous car project that would help eliminate driver distraction and improve safety innovations.
Toyota is committed to the communities in which it does business. Since 1991 the company has given nearly $600 million to charities in the U.S. and with the 100 Cars for Good program in its second year, more than 200 local organizations will benefit from the use of a new vehicle to do good.
The new Customer First program. Executives lauded this new program’s launch designed to help connect customers throughout the ownership cycle, from shopping and sales to parts and service.

Media Contacts:
Celeste Migliore
Toyota Motor Sales, U.S.A., Inc.
Celeste_migliore@toyota.com
(310) 468-4491

Toyota Motor Sales, U.S.A., Media Line 310-468-5297


About Toyota Motor Sales, U.S.A., Inc.
Toyota Motor Sales (TMS), U.S.A., Inc. is the marketing, sales, distribution and customer service arm of Toyota, Lexus and Scion. Established in 1957, TMS markets products and services through a network of more than 1,400 Toyota, Lexus and Scion dealers. Toyota directly employs more than 34,000 people in the U.S. and sold more than 1.76 million vehicles in 2010.

For more information about Toyota, visit www.toyota.com, www.lexus.com, www.scion.com or www.toyotanewsroom.com.
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toyota national dealer meeting corporate