2013 Fleet and Commercial Update 1 Welcome Before you leave today - - PowerPoint PPT Presentation

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2013 Fleet and Commercial Update

Welcome

Before you leave today…

• You will have the latest information on our

Fleet and Commercial Programs

– Marketing – Incentives

• Maintenance Program
• Business Choice

– Lowes Customer Appreciation Days partnership – GM Business Card

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2013 Fleet & Commercial Update

State of the Fleet & Comm. Industry

TOTAL FLEET

CYTD Dec ’12 YOY % Change

674,060

• 1.1%

673,259 5.4%

428,884 13.6% TOTAL 2,333,906 8.8%

■ Ford’s sales were down, but they retained industry leadership by 801 units. ■ Detroit Big Three account for 76% of the total fleet industry ■ GM’s Fleet & Comm. Sales is approximately 25% of GM total NA vehicle sales ■ 75% of Chrysler volume is rental

GM Fleet – 2012 CY Sales Recap

GM Fleet and Commercial posted 673,259 total sales in 2012 Total Fleet Sales Rental Sales Commercial Fleet Sales Gov’t Sales

Source: NAEZQ

Up 5.4%

• vs. Dec 2011

Up 3.4%

• vs. Dec 2011

Up 3.1%

• vs. Dec 2011

Up 24.6%

• vs. Dec 2011

Rental Industry Highlights

RENTAL

CYTD Dec ’12 YOY % Change

431,617 3.4%

322,184 9.2%

259,039 2.4% TOTAL 1,547,477 10.6%

■ There is an influx of foreign interest in the rental market:

– Toyota up 48% – Mazda up 23% – Nissan up 9%

Commercial Fleet Industry Highlights

Commercial Fleet = 24% of total industry

COMMERCIAL FLEET

CYTD Dec ’12 YOY % Change

312,595 3.1%

164,763 3.1%

69,608 26.4% TOTAL 567,283 6.7%

■ Chrysler outpacing the industry

Government Industry Highlights

Government (all) = 10%

% of total industry

GOVERNMENT

CYTD Dec ’12 YOY % Change

102,426

• 18.1%

76,879 24.6%

37,092 33.8% TOTAL 219,146 2.2%

■ Detroit Big Three accounts for 99% of segment ■ Police playing into local/state sales

– GM police portfolio up 40 percent – Dodge Charger strong – Ford down with discontinuation of Crown Vic

U.S. Auto Industry Sales 2013 (light duty)Forecast

16.91 16.99 16.56 16.15 13.24 10.40 11.60 12.80 14.8 15.0 – 15.5 2 4 6 8 10 12 14 16 18 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013F In Millions

U.S. 2013 Fleet and Commercial Industry Sales

• 2013 industry sales for fleet and commercial products are expected

to grow 6.5% to 2,800,000

• Over the past 6 months, fleet sales up 3%, retail grew by 9%

3,303 2,747 1,948 2,410 2,564 2,629 2,800

1,000 2,000 3,000 4,000 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013F In Millions

3,150 3,356 3,547

STRATEGY

VISION MISSION STRATEGIC GOALS STRATEGIES TACTICS/EXECUTION

To be the #1 choice in the fleet and commercial industry. To be the ideal professional partner to savvy business buyers in the commercial, rental, government and small business space by

• ffering great products, innovative business solutions, and an

exceptional customer experience. STRATEGIC GOALS THINGS WE ARE GONG TO DO

1 Grow sales, share and contribution margin Increase CAP business; 2013 Malibu sales blitz 2 Improve brand equity Enterprise “rental to retail” initiative; CPO/Remarketing engagement 3 Build Customer Enthusiasm Business Elite; Train all Chevy & GMC dealers to sell more commercial; New CSI and service retention process 4 Improve cost competitiveness New Business Choice (with 2-year/30K maintenance) 5 Create a world class

• rganization

Field assessment (Install “Insight Selling” process); FCO Career Fair

2013 Q1 GM FCO Sales Performance

Gained 1.9 share points in March – more than any other manufacturer

172,390 UNITS – UP 6% CYTD

■ Commercial fleet & government down 9% in Q1

– Large company fleet sales down 19% – Dealer fleet commercial sales up 22%

SMALL BUSINESS SALES UP

36%

THRU MARCH

■ Full-size pickup sales up 59% ■ Full-size van sales up 28%

2013 Q1 GM FCO sales performance

Do You know your Commercial Opportunities?

Commerci cial al Sales is good

• od for you!

u!

Do You know your Commercial Opportunities?

How man any y Smal all l Busin iness are there in Arizo zona na? How man any y Smal all l Busin inesses have ve emplo ployees?

Do You know your Commercial Opportunities?

How man any y Smal all l Busin iness are there in Arizo zona na?

• Arizona has 396,318 small businesses, according to the most current

federal data available. How man any y Smal all l Busin inesses have ve emplo ployees?

• 107,0

,018.. ..

• The remaining 289,300 are Arizona Small Businesses that have no
• employees. But.. These Small Business statistics for Arizona do not

include all self-employed individuals working in Arizona. According to the latest Federal data, the number of self-employed persons in Arizona (including incorporated companies that file via Schedule C) was 297,672.

What is in your Customers Fleet?

Commerci cial al Fleet t Cens nsus us

• Total

al Units its in Operati ation

• n Smal

all l and d Mid Size ze Fleet Market (US) 985,0 ,000 Cars 2,079,0 ,000 Truc ucks 396,0 ,000 Fleets

Do You know your Commercial Opportunities?

Small and Mid Size Fleets ts in the US.

15 15-99 Uni nits in Operatio ation 11,00 Fleets 72,000 Cars 148,0 ,000 Trucks 5-14 Units its in Operatio ion 364,0 ,000 Fleets 913,0 ,000 Cars 1,931,0 ,000 Trucks

Who is your Commercial Customer?

Who is the Small Fleet t Operat ator

• r
• Contr

ntrac actor

• rs
• HVA

VAC

• Lawn/G

n/Gar arde den Servic vices

• Pest Control
• Electric

ical al Servi vices

• Repai

pair Servic vices

• Local

al Trucking ng and d Tran anspo portatio ation

• Floris
• rist
• Plum

umbin bing

• Roof
• fin

ing

What is Important to your Customer?

What t do Commercial cial Fleets ts Care re Abou

• ut?

t?

• Job

b Suitab abil ility ity

• Safety
• Relia

iabil bility ity

• Cost

Do You try to view w their r busine ness in a way ay that at inspi pires res action

• n

towar ards ds your ur soluti ution

• n?

Who is your Commercial Customer?

What t the Small Busine ness owne ner r Needs ds Fr From You

• Show
• w Up
• Your compe

petitor itors are calli ling ng on them directly ly

• There aren’t a lot of Ups in the commercial market
• Lessors and OEM’s are selling to them before they come into the

market

Who is your Commercial Customer?

What t the Small Busine ness owne ner r Needs ds Fr From You Cons nsul ultati ative ve Selling ng

• Total

al Cost of Owne nershi hip p Anal alys ysis is

• Preve

vent ntative ative Main intena nanc nce

• Upfitt

ittin ing

• Fleet Mana

nagement

Professional Advice?

Value?

What t the Small Busine ness Owne ner r Needs ds Fr From You

• Preve

vent ntative ative Main intena nanc nce

• First in Line Servic

vice

• “Who is to say that we would fix something or maintain something that we really

don’t know anything about or have expertise in? Well, the truth is, we probably wouldn’t. Like what a lot of small fleets probably do, we would wait until it breaks”

• “we’re an ice company that happens to have trucks. We’re not a trucking company

that happens to do ice. I live and die by that”

Value?

What t the Small Busine ness Owne ner r Needs ds Fr From You

• Fleet

t Mana nagement nt Expe perti tise

– GPS and d Route ute Expe pertise ise – Drive iver Trai ainin ing – Fuel l Card d Prog

• gram

ams – Rema marketin ing – License nse and d Title le Wo Work – Fleet Plan anni ning

 The right vehicles in the right place at the right time

– Alternative ative Fuels ls

 Great opportunity to educate your customers about the viability of various alternatives

Do the Basic’s Brilliantly!

Succe cessful ful Small Fleet t Prog

• gram

ams

• D-AB

ABC

• In person
• n sale

les calls ls

• Cons

nstan ant lead ad Gene neratio ation

• Regul

ular ar Cont ntac act with h Custom

• mers
• Marketin

ing Suppo port

• The Right

ht produc duct

Good Industry Data..

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Ques estio tions? ns?

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2013 GM Fleet and Commercial Marketing & Incentive Programs

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• Background

– Program is restrictive, complex, & not customer friendly

• Surveyed all Chevy & GMC dealers

– 425 Responses, 80% were Business Central – Confirmed program restrictive, and complex

– Customers want a reason to return to the dealership 2013 Business Choice - Background

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• Key Objectives

– Challenged to create a ‘Simple & Flexible’ program – Increase Customer Engagement and Retention

>> Pre-paid Maintenance increases purchase consideration 72% >> Increases CSI and dealer profitability

• GM Accessories and Adrian Steel will be our

preferred partners

2013 Business Choice - Background

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• Cash incentive for small businesses to assist in upfitting

their work vehicles.

• Program

am Timeframe ame : January 3rd-September 30th 2013

• Eligible

ible models ls: : – 2011/2012/2013 Chevrolet: Express, Silverado,

• Avalanche. GMC: Savana, Sierra

– 2011MY vehicles will be dropped on Oct 1

2013 Business Choice - Overview

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• Admin

n Messag age Numbe bers 13 13-36 36A and 13 13-36 36B – Business Maintenance Plan Documents are attached – 12-36A1 Ship thru - extended to 9/30/13 to prevent program deadline chargebacks

• Notes:

– Cargo, Cutaway, Chassis Cab and Box Delete/ZW9 vehicles do not require proof of business ownership documentation in the deal jacket – LPO’s are not eligible

2013 Business Choice - Overview

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2013 Business Choice Offers

Business Maintenance Plan

24 Months or 30,000 Miles, whichever comes first on:

• LOF, Single Rear Wheel Tire Rotation, 27 Multi-Point Inspection
• Up to 6 services for dexos1™ gas engine or up to 4 services for diesel engine

Up to $1,200 Cargo/Cutaway Cash

(Minimum $500 must be

spent) OR

Cargo Ship Thru Package:

• Left Hand Door
• Pro Access
• Commercial Bin

($200 Ship Thru Charge)

$750 Chassis Cab Cash

(Also eligible with after market box removal)

1500 Trucks, Avalanche, Passenger Vans: $400 in GM Accessories

(Eligible on all GM Accessories) OR

$200 Upfit Cash

(1500 Trucks equipped with VYU can receive an additional $200 towards a Snow Plow Upfit)

2500/3 /3500 Truc ucks: $1000 in GM Accessor

• rie

ies

(Eligible on all GM Accessories) OR

$500 Upfit it Cash

(2500/3500 Trucks equipped with VYU can receive an additional $500 towards a Snow Plow Upfit)

2013 Business Choice – Key Changes

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• 2011 MY vehicles are eligible for 2013 program
• Eligible delivery types: 014, 018, 029, 035–Non

CAP, 036

• Retail delivery types, 010, 015, have

been removed

• Delivery type 018 can be delivered under

customers business or individual name, 13-36B, Bullet #8:

2013 Business Choice – Key Changes

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THE SALE OF THE VEHICLE MAY BE REPORTED IN EITHER THE NAME OF THE BUSINESS OR IN THE NAME OF THE INDIVIDUAL PROPRIETOR, BUT MUST BE ENTERED AS AN ELIGIBLE BUSINESS DELIVERY TYPE. PROOF OF DOCUMENTATION IS REQUIRED IN THE DEAL JACKET.

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• Eligible proof of business documentation
• Removed: Lowes Installer & Real Estate License
• Added:
• Tax Forms 1120-S and 1065
• Farmers General Liability, Agriculture ID,

Timber Registration Form

• Pocket list of railroad officials guide (only

eligible when railroad operators incentive is not used)

2013 Business Choice – Key Changes

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• Dealer is required to enter posted

customer pay labor rate upon entering first claim

• All offers are determined by MSRP part

price PLUS labor

• If part or equipment price exceeds the

incentive threshold amount, labor price is not necessary

2013 Business Choice – Key Changes

Maintenance

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• Maintenance plan is attached to both Admin

Messages – 13-36A Adrian Steel Ship Thru – 13-36B GM accessories / Upfit Cash

• Maintenance plan is on every Business Choice eligible

vehicle: FSPU & Vans

– Not available on Malibu, or Yukon < not Business Choice eligible

• Tied to the VIN, the plan is Transferable (No charge to

Xfer)

Maintenance

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• The Business Maintenance Plan is activated

when the GM Business Choice claim for that vehicle is submitted via the portal.

• The clock on the 2-year / 30,000 mile Business

Maintenance Plan begins when the unit is reported delivered in CDR.

Maintenance

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• Maintenance is counted within IVH (Investigate Vehicle History)

– Service Advisor run every VIN to determine remaining service visits – Viewable within IVH under ‘Applicable Warranty’ section

• 1. Dealer reports delivery and submits Business Choice claim
• 2. CCA receives weekly maintenance redemption file
• 3. PHQ monitors redemptions by VIN, tracking multiple service

visits

• 4. When cap is met, PHQ send VIN to CCA to remove VIN from

VIS

2013 Business Choice - Key Points

• Offering Maintenance Plan increases purchase consideration by

72% – GM offers maintenance in addition to GM Accessories cash or upfit cash

• Ford removed the F-150 from CTC program
• Maintenance-
• it’s one of three options from RAM / Dodge
• Ford offered 4/18 on select vehicles
• GM Accessories and Adrian Steel continue as preferred program

partners – GM maintains excellent relations with Adrian and Lowes – Mutual agreement with Adrian to remove exclusivity

2013 Business Choice - Key Points

• Mutual decision not to re-new Lowes Gift Card

contract –GM Dealers are encouraged to participate in Lowes Customer Appreciation Days. Up to dealer to initiate, and build the relationship with Lowes store

• GM Business Card will be marketing separately to

grow customer base

Lowes for Pros CAD

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• Apprecia

iatio ion Day ays Wedn dnesda day, , May ay 8th h – Frida day, , May ay 10 10th

th

– One of the longest running events at Lowe’s (45+years) – This is the only event in 2013 – Held at all 1700+ US Lowe’s stores – Lunch is on Friday from 11am – 2pm

• Vendors working directly

with Store Managers & Pro desks report better events and greater engagement with Pro customers than those who arrive unannounced

Lowes for Pros CAD

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• Intended to thank & build deeper relationships with existing

Pro customers, and engage & qualify new Pro accounts

• To maximize exposure, vendors can sign up for multiple store

locations during the 3-day event period – RSVP DM with Lowes store # you will be attending – Understand your Geography, Need permission outside of your APR – Complete a GM Off-site Vehicle display request

• Start Early & Plan ahead…….

– Literature, Premiums / Giveaways, Product Demo’s

GM BUSINESS CARD

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The GM Business Card program is designed to be under the radar incentive

• is to drive profitable vehicle sales to small business owners and repeat service to dealerships
• 60% of GM Business Card Owners have at least one Pick up Truck
• 30% of Cardholders have made one paid service visit in the last year
• It is the ONLY Automotive Business Reward Credit Card, giving you a competitive incentive

advantage over Ford

• Earnings are now redeemable online in the GM Card portal of Global Connect, and no longer

require the card member to be physically present for a redemption

VALUE to the CARDMEMBER

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• Card members receive

– 5% at GM Dealerships – 3% at Restaurants, Office Supply Stores, and Gas Stations – 1% on all other purchases

• There are NO LIMITS to the amount of

Earnings that can be acquired or redeemed up to the purchase price and tax of the vehicle

• Earnings DO NOT expire & there’s NO annual

Fee

VALUE to the CARDMEMBER

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• Plus free Employee Cards are available

–Individual Credit Limits can be set for each employee –Spend activity can be easily tracked on line –All Employee card earnings are rolled up to the primary account –In 2012, the average redemption amount was $2,000

–GM Business Card is compatible with most Fleet, national, and private offers, including TIMP

GM BUSINESS CARD $50 Incentive

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• Sales Personnel are eligible to receive $50 in GM earn Power for each

application submitted for any new Cardmember application sourced through Business Choice as a Bonus Option

• During the Claim process, they are asked if they told the customer

about the GM Business Card. When they check yes, and enter their GMIN, a document will print that details the site and promo code for the customer to enter upon application

• Details and training can be found on the GM Business Choice claim

site or at www.gmprograminfo.com under Incentives and Programs

GM BUSINESS CARD $50 Incentive

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GM Business Card and Dealer Sites

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• Promote the GM Business Card on your commercial web pages
• Link out to the GM Business Card application
• Spiff would be paid for each active account generated from the

placement

GM Business Card

GM Business Card

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• Information can be found at gmcard.com/business
• Future card members can access an Earnings calculator to help them

determine how much they could get in Earnings each year

• Facebook.com/gmbizcard
• Placement on Chevrolet and GMC Fleet pages and gmfleet.com

GM Business Card Team Contacts

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• For information on the program, dealer

materials or give-aways

• Julia VanDerBeek

–Julia.vanderbeek@gm.com –313-570-0769 or 313-665-1077

• Chris Mink

–Christopher.a.mink@gm.com –313-667-2473

SUBMIT CLAIM

VIN will be validated to ensure no typing mistakes Delivery Date must be within correct program year to be eligible.

SUBMIT CLAIM

Enter Customer Info If claim has been processed previously for the customer, this form can be automatically populated by using the look up tool.

SUBMIT CLAIM

Select Business Documentation that customer provided from the eligible list If GM Fleet Account Number (FAN) is selected, the FAN number must be provided in appropriate field If “Other” is selected, dealer must receive authorization number from PHQ

SUBMIT CLAIM

Choose Type of Business If “Other” is selected Type of Business must be entered in the corresponding field.

SUBMIT CLAIM – GM Accessories

Choose accessories from part selector by entering quantity

• desired. Labor hours

can be altered if necessary.

SUBMIT CLAIM – Upfit Cash

Enter upfit information from

• invoice. Quantity,

Part Description, Manufacturer, Cost, and Labor Hours. Cost & Labor Hours are not needed if part cost exceeds allowance. Upfitter information must be entered on claim form.

SUBMIT CLAIM – Review Claim

Process is NOT complete yet – the claim number hasn’t been assigned. Review ALL information for accuracy Click the “Submit Claim” button at the bottom of the screen to complete the claim submission process.

SUBMIT CLAIM – Claim Complete

Print this screen to

• btain customer
• signature. Screen

can be printed at any time. Claim number assigned at this screen. Maintenance Plan Acknowledgment section must be signed by sales person and initialed by customer.

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• VCT Training courses:

– Business Choice Update - Sales SMKBC.013D-0D

– Business Choice Update - Service WMKBC.013D-0D

• Program Readiness Guide on GM PI (GM Program

Info.com)

• Program HQ

– Mon – Fri, 8AM – 8PM (EST) 1-888-566-6393 – Or access GM Business Choice portal via Global Connect > Chat 2013 Business Choice - Resources

Why Sell Business Choice ?

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• Win – Win

–Good for Customer, Good for the dealer & Good for YOU!

• Spiffs – You sell, You Earn!

–GM Accesssories –GM Business Card –Adrian Steel Upfit Rewards

GM Business Card SPIFF

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• Sales consultants who sell an eligible vehicle through the Business

Choice program, and promote the GM Business Card, will be eligible to receive $50 in GM earnPower points for every GM Business Card application that is sourced through the GM Business Choice channel

2012 2013 YTD TD

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Ques estio tions? ns?

GM Accessories Option

GM Accessories Option

• Rusty Hoyt – Vehicle Accessory Center (VAC)

– Pat Franks – Nick Provencher

• Lois Parker – Business Choice/GM Accessories
• Brad Renoult – GM Accessories

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1 out of 4 GM Trucks are purchased by business

• wners.

Accessories Selection Process

• Packages

– Allow for ease in processing – Ease in parts department handling

• A la carte

– More choices for customer – Better opportunity to sell additional accessories.

Silverado or Sierra Sample Items

Express or Savana Sample Items

2013 INCENTIVE PAY SCALE

(BASED ON TOTAL MSRP)

Light Duty

Sales Consultants and Sales Managers take advantage of GM earnPOWER points for each qualifying GM Accessories claim submitted within the 2013 Business Choice Program.

Heavy Duty

Maximize your opportunity - Upsell

Most work truck purchases Will require $ Thousands in additional accessories. “Your first $1000 in GM Accessories is on us; what else will you need to make this Truck work for you?”

Here is what many of you have earned so far in earnPower

• spiffs. Are you leaving something on the table???

DEALERSHIP/SALES MGR/SALES PERSON EXTRA ACCESSORIES ON BC CLAIMS SALES PERSON SPIFF EARNED SALES MGR SPIFF EARNED BROWN & BROWN CHEVROLET, INC. 14,755.12 725.00 450.00 ROBYN SCHLUTER 4,364.00 225.00 125.00 DOUG BONHAM 4,364.00 225.00 125.00 WILLIAM BONHAM 10,391.12 500.00 325.00 DOUG BONHAM 9,524.95 500.00 300.00 DESERT BUICK GMC 759.00

• 25.00

MATTHEW MCCOMBS 759.00

• 25.00

FINDLAY CHEVROLET 874.00 50.00

• GEORGE HEROLD

874.00 50.00

• KEN DOYLE

874.00 50.00

• FREEWAY CHEVROLET

1,465.00

• 25.00

BRIAN BANKS 1,465.00

• 25.00

HENDERSON CHEVROLET CO. 874.00 50.00 25.00 PETER REELE 874.00 50.00 25.00 DANIEL GOUGH 874.00 50.00 25.00 O'RIELLY CHEVROLET, INC. 1,478.00 75.00 50.00 SKIP McGUIRE 1,478.00 75.00 50.00 ROGER LOY 1,478.00 75.00 50.00 SANDS MOTOR COMPANY 1,875.00

• 50.00

KYLE VONTERSCH 1,875.00

• 50.00

TEMPE BUICK GMC 760.00 50.00

• ALAN GIBSON

760.00 50.00

• TOTALS

22,840.12 950.00 625.00

2013 Business Choice Marketing Material

Desk Mat Window Cling

Why Offer Business Choice?

• Closing Tool
• Improve CSI
• Customer Loyalty
• Increase Truck Sales
• Make $$$

Closing – Peter Langenhorst

• Hopefully you walked away with more tools to

impact the Fleet and Commercial market

• GM is committed to growing this integral

portion of our business

• Let’s execute against this plan to reach as

many of these F & C customers as possible

• Thank you for your time and contribution

today!