Morgan Auto Group acquires Sun Toyota

Morgan Auto Group acquires Sun Toyota & Scion

NEW PORT RICHEY, FL (February 16, 2016) – Morgan Auto Group acquired Sun Toyota & Scion earlier this afternoon from Jeff Cadwell and Dwane Johansen. The dealership is located at 3001 US Highway 19 in Holiday, Florida. The dealership name will remain the same to capitalize on the strong Sun brand reputation that owners Cadwell and Johansen have built in the Tampa Bay area.

John Marazzi has been named managing partner of Sun Toyota & Scion to oversee operations, adding to his role as managing partner at Brandon Honda. Marazzi has been a successful leader in Florida automobile dealerships for 27 years—first at Ft. Myers Toyota, Audi, Jaguar, Land Rover Fort Myers, and John Marazzi Nissan in Naples, Florida before coming to Brandon Honda.  

"I’ve known Jeff Cadwell for years, initially from our joint efforts in our community hospital system,” said Larry Morgan, CEO of Morgan Auto Group. “Jeff is a first-class gentleman who values his customers and employees alike, just as we do. He’s built a top-quality local dealership that is one of the best in the Tampa Bay area. We are looking forward to following in his footsteps and continuing to build the Sun brand of the future.”  

The hallmark of Morgan Auto Group dealerships is its keen focus on impeccable customer service and direct customer engagement in all departments. Sun customers will enjoy enhanced benefits and loyalty programs not found at other area dealerships. Service department efficiency and affordability will help guests easily blend auto maintenance into busy schedules. Plans include expanding the in-house café operation for added customer comfort and convenience.          

Today’s acquisition brings Morgan Auto Group’s auto dealership holdings to 14 over the last 10 years. In addition to Sun Toyota & Scion, the Morgan Auto Group of dealerships includes BMW of Sarasota, Brandon Honda, Ford of Port Richey, Gainesville Buick GMC, Gainesville Mitsubishi, Honda of Ocala, Honda of Gainesville, Lamborghini Sarasota, MINI of Wesley Chapel, Port Richey Mitsubishi, Toyota of Tampa Bay ǀ Scion of Tampa Bay, and Volkswagen of Gainesville, in addition to Kia of Columbia in Missouri.

Morgan Auto Group is owned by Larry Morgan and his son, Brett Morgan. Both are highly respected business and community leaders in the Tampa Bay area. Larry Morgan is past Chairman of the Florida Automobile Dealers Association, past Chairman of Bay Care Health Systems, Inc., and founder of Tires Plus. His philanthropy and community involvement include past Chairman of the Valspar PGA Championship that raises millions of dollars annually for local charities and a $5 million family gift to establish the Morgan Heart Hospital at Morton Plant Hospital. For more information, visit http://www.morganautogroup.com/.

Sun Toyota & Scion is located at 3001 US Highway 19 between Moog Road and Sunray Drive in Holiday, FL 34691, on the border of New Port Richey. For more information, call 727.478.0070 or visit http://www.suntoyota.com/. 

  

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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." 

4 Takeaways from the 2015 Annual Toyota Dealer Meeting in Las Vegas

Here are my big four takeaways from the Annual Toyota Dealer Meeting (2015): 

These are outside of the the usual product intro’s which would have been highlighted by the new Rav4 Hybrid, the new Tacoma (hot), a commitment to building more truck, Prius re-design (nice) and we saw the Scion CH-R concept which could make some noise if ever produced. 

The Annual Toyota Dealer Meeting was held in Las Vegas this past September

Pictures: https://business.facebook.com/ToyotaOfTampaBay/posts/10156148970695637

#1) With hydrogen vehicles launching this year (only in areas with available hydrogen infrastructure) Toyota feels they have covered the gamut between Hydrogen, Electric, Hybrid and Gas products. Also an all new Prius and Prius electric is coming our way. 

Learn More about Toyota Mirai & Hydrogen: https://ssl.toyota.com/mirai/?

#2) Toyota Express Purchase: We received a live demo of Toyota’s new buying process. Imagine an internet department inside of an internet department and a customer who arrives at the dealership only to “continue” their transaction. The process is seamless and includes F&I products sold by the same sales member who confirms the previously negotiated purchase or lease. While the technology was good and seamless we’d require the same level of integration from World Omni that TFS was supplying not to mention other obstacles that could break the process (someone who wants to negotiate, a vehicle trade-in, someone with changing credit, changes their mind last minute on vehicle). Promising but not even ready for Beta testing. All in all this is going to be a win for consumers and can be adopted in part at some level of our dealership(s) today. 

#3) We are our own worst enemies: We are giving our data to 3rd Party Providers so that they can profit from us…whether it’s TrueCar or Carvana essentially by participating we are allowing other folks the credit for delivering the customer a unique experience (not to mention with potential for a disconnect between consumer and manufacturer). Still buying 3rd party leads? Than you are part of the problem says Toyota.

Biggest Problem: What’s already on their way in the way of data aggregators getting into the pre-owned market. Would you buy a used jacket online? 

#4) Toyota Safety Sense (TSS) is coming to all Toyota models soon (for many models by 2017) and includes the highest tech related to safety. Huge win for consumers and the Toyota brand. 

WHAT IS TOYOTA SAFETY SENSE?

The Toyota Safety Sense C package features three proprietary active safety technologies, and combines a camera and laser radar for enhanced performance and reliability. The package can help prevent or mitigate collisions in a wide range of vehicle speeds.

Pre-collision System (PCS)

PCS uses a camera and laser radar to detect objects ahead of the vehicle.  When the system determines there is a possibility of collision it prompts the driver to brake with an audio and visual alert. If the driver notices the hazard and brakes, the system provides additional braking force. If the driver fails to brake in a set time, the system automatically applies the brakes, reducing speed by approximately 19 mph *1 in order to prevent or mitigate the collision. The operational range of PCS covers speeds at which at least 80 percent of rear-end collisions occur (i.e. relative speeds of between approximately 7 – 50 mph).  

Lane Departure Alert (LDA)

LDA uses a camera to detect visible white and yellow lane markings. If the system determines that the vehicle is starting to deviate from the lane, LDA alerts the driver with an audio and visual alert.

Automatic High Beam (AHB)

AHB helps enhance forward visibility during nighttime driving. It uses a camera to detect the headlights of oncoming vehicles and the tail lights of vehicles ahead, and then automatically switches between high beams and low beams so as not to dazzle other drivers.

Toyota Safety Sense P combines a camera and millimeter-wave radar for enhanced performance and reliability. In addition to the three active safety technologies included in the Toyota Safety Sense C package, the Pre-collision System offered with this package also includes a pedestrian detection function. In addition, Toyota Safety Sense P offers Radar Cruise Control functionality.  (see below)

Pedestrian Pre-collision System

This system uses millimeter-wave radar and a camera to help detect pedestrians in certain conditions in addition to vehicles. To help prevent or mitigate collisions, the system activates an audio and visual alert in addition to brake assist, followed by automated braking if the driver does not brake in a set time. Automated braking operates at relative speeds of between 7- 50 mph for potential collisions with pedestrians, and can reduce speed by approximately 19 mph*1. For potential collisions with vehicles, the enhanced PCS system included with the Toyota Safety Sense P package operates at relative speeds of between 7 mph and the vehicle's top speed, reducing speed by approximately 25 mph*2.

Dynamic Radar Cruise Control

carcarvana

On highways, Radar Cruise Control uses millimeter-wave radar to detect preceding vehicles and determine their speed. It then is designed to adjust vehicle speed (within a set range) to help maintain a pre-set distance between vehicles. By using a forward-facing camera and millimeter-wave radar to monitor vehicles merging into or out of the lane, Radar Cruise Control helps maintain smooth acceleration and deceleration while driving.

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! 

John Marazzi taught me something today...

About two years ago we began tracking front end PVR throughout our auto group. OK not revolutionary but I'm not talking salesperson PVR I'm talking from the desk. But for each action there is an equal and opposite reaction. The negative was that now desk managers would run from low margin deals, internet grosses or deals on age pre-owned inventory. What we wanted was a culture of accountability...what we got was desk managers becoming good at playing matador.

John Marazzi had a solution. Instead of letting his one desk manager who would take any action (be it a detriment to his per copy) become the department laughing stock he created a top ten gross report. The report would pit each desk managers top ten grosses against the rest of the team. What we found was that the playing field was leveled and that when gross was there the so called low PVR performer was hanging with the big boys.

BUT today my mind was further blown. In the ever changing marketplace of pre-owned vehicles prices don't just change daily they change hourly. Now how could you compare a manager selling a 70 day old unit with 400 dollars of profit to another selling a fresh unit with 1800 dollars of wiggle room to retail? The answer is you can't. John Marazzi has changed all that. In transactional selling John has realized success is relative to the opportunity you are given and what you do with it. His price to sale gap report takes all that into account and gives managers a true relative measurement of their dealing success. Simple but effective thinking. Well done John and Brandon Honda!

Morgan Auto Group Acquires Volkswagen of Gainesville

For Immediate Release
July 31, 2014
Gainesville, FL

The Morgan Auto Group (based in Tampa, FL) has brought their lineup of unique brands represented to 11 with the acquisition of Gettel Automotive’s “Volkswagen of Gainesville.” Morgan Auto now has 12 dealerships on the Gulf Coast and in Central Florida where they currently have Honda of Gainesville,Gainesville Buick GMC, Gainesville Mitsubishi and Honda of Ocala in the region.

“We think that there is a ton of upside to the VW brand,” said MAG CEO Larry Morgan. “Volkswagen has a diverse lineup and a loyal following and we are looking forward to growing that business.” The Morgans are no strangers to VW, their first entry into the car business back in 2004 was with then partner Jason Kuhn and his Kuhn Honda Volkswagen store on Kennedy in Tampa. “The first vehicle I ever sold was a new Volkswagen Golf,” remarked Larry’s son and Morgan Auto President Brett Morgan. “It’s a neat brand that appeals to young, educated consumers and we are thrilled to be operating in a University town such as Gainesville, FL.”

Larry and Brett stated that they will continue to operate the store from the current location while a new facility is constructed. “Operations and the Customer Experience will remain consistent and we shouldn’t miss a beat in transition,” said Larry. “We look forward to bringing some of our own priorities to the store but that will be over time. For now, our focus will be in creating and maintaining a great customer experience in Gainesville.”

The Morgans have named Veteran Dealership Manager Tony Turner the new General Manager of Volkswagen of Gainesville.

The first time I met John Marazzi

The first time I met John Marazzi had to be in late 2005 or most likely 2006. I was a "young car guy" LOL (not as young now as when I started this blog, har-har) and a vender friend had offered to take one of my favorite car guys Ross Bauer (our then GM at Toyota of Tampa Bay) and myself to Fort Myers Toyota to meet what we already knew was one heck of an operation.

I was low on sleep in my then role as a Floor Manager at Toyota of Tampa Bay but lucky for me Ross drove all the way down. Operationally John had some things going on I'd never seen before. The bottom line was that each step he found a way to maximize efficiency and get his most capable people in front of the customer every time. He was finding ways (and still is) of getting to what he felt consumers wanted and at the same time breaking sales volume records left and right (with happy customers too).

While my colleague ventured around the store I found myself alone with John in his office. He opened a long file drawer in his desk and asked me to come around to look. "Do you see that Brett," he said with a small trace of his New Jersey roots, "these are all the people who would love to come to work for me here in Fort Myers." As I looked down I saw, neatly organized, near a thousand filed job applications locked away below his desk. I believed John. Anyone with the drive, charisma, excitement and competitive spirit of a John Marazzi doesn't have to tell tales. He's going to just show you sooner than later.

Fast forward to 2014 and John has been partners with my father and I for nearly 2 + years. Everyday I learn from John Marazzi and I still see the very same instincts and energy I found in John some 8 years ago. Is he confident? Sure. Does he run in a million different directions each day? Sure, many successful business leaders do (He's a tough man to keep up with sure). He tries things others in his industry are unwilling to try. Is he perfect? Heck no, John can be fickle and change directions so quickly if he thinks something isn't working, sometimes maybe too quickly but hey, he's impatient. AGAIN --- many great people are. So when you meet John, do me one favor, just don't ever tell him NOT to do something. He'll just work all the harder to prove you wrong.

Brandon Honda is a place today unlike it has ever been. I'm proud to call John my partner and I am proud of what we are able to do as a team. John Marazzi's team is one I'd send my application to any day of the week.

-Brett