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Honda on Civic Misstep (1/16/13)

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  1. Super Bowl2:37
  2. human resource4:13
  3. human services5:37
  4. online shoppers2:57, 3:14
  5. workplace safety4:18
  6. Automotive News0:24, 6:09
  7. salary increase5:42
  8. GM's5:13
  9. Fiat 5002:41
  10. Penske automotive group's4:28

Wed, 16 Jan 2013|

U.S. chief: Concerns with '12 model predated launch; Chrysler speed deed; Penske's people priority; where bacon beats bread.


Automatically Generated Transcript (may not be 100% accurate)

The story behind the civic -- Honda's US bought revealed when we ought to be remembered -- -- twelve compact. Wasn't good enough. -- Wednesday addition of auditors now. I'm Tom -- back we are reporting from the 2013 Automotive News world congress here in Detroit. -- some of the biggest names in the industry are tackling topics from alliances. To meeting future fuel economy rules to redesigning vehicles. We underestimated the competition. And frankly got that the forecast of where the market would move. Slightly wrong. That he is American Honda boss John Mandell talking about the 2012 civic. Which was quickly panned by many journalists and analysts who complained about among other things a -- interior. Honda hustled to refresh the civic. Instead of waiting for years for the mid cycle freshman wholesale changes were made in just nineteen months. And else's cost cutting had little to do with the critics' complaints. It was really about. Taking attack that would react to what we felt it was going to be a more rational. -- coming out of the post 20072008. Kind of crisis. And we knew before we can launch the car there were some things that we got wrong. And I'd like to give all the credit to the consumer reports. But frankly we started working on that before you can watch the car. Because you can't bring that a dramatic change like the one we made with the 2013. Out in twelve months. Many of those critics like the changes Honda made to the thirteen civic. But despite all of the controversy surrounding the redo Honda has been selling about 2502012. Model year civics a month. Tops in the compact segment. Meantime a friendly concession to Honda from a Detroit rival. There's only the number two player we were the number three -- fastest growing auto maker in the country last year. That's Chrysler group US sales chief Reid -- referring to Clijsters point 7% gain in US market share last year. In his address big -- focusing on the benefits twice or his game from innovative advertising. -- his spots such as this 2011 Super Bowl commercials in this provocative -- for the Fiat 500 -- part. Have played a pivotal part in boosting sales 33 months of consecutive games at last count. At the same time the auto maker has been embracing digital marketing in working to improve dealer responses to online shoppers. He says 85%. Of consumers shop online before the body. But as recently as 2011. It was taking place or group dealers in an average of twenty hours to respond to online inquiries. And 31% of online shoppers got no response at all. But now 95%. Of people get a response. And then the average response time is within one hour. We wanna get that person off the street if they're interested in our cars follow up with them right away. And in 2013. We're now time -- Of our field people's variable content compensation. To how quickly their dealers are following up and also are they converting those leads. Into actual sales. This year Chrysler in its dealers will spend at least 300 million dollars on digital marketing. Tuesday night mega dealer Roger Penske talked in large part about people both customers and employees. After acquiring a stake in the former United Auto Group in 1999. He went to work improving employee culture at stores. To attract and keep staffers. He built a field network of human resource professionals in focused on compensation. Benefits workplace safety and training. Get this in 99 united -- annual employee turnover was 80%. In 2009. Penske automotive group's employee retention rate was 92%. Just listen to what workers at the nation's second largest dealership group are now say. But most important they tell us areas. Where we need to improve. And our most recent survey. The question. I believe Ph.D. is serious. About customer satisfaction. Receive the highest rate. The lowest rated response. We needed to move faster. When making decisions. On people who are not performed satisfactorily. That's our people tell. House and mostly with people. Bo Andersson GM's former purchasing -- is now CEO of -- group one of Russia's largest vehicle makers. He saved the feeling government controlled Gaza by eliminating thousands of jobs and bulldozing factories. He fired employees for drinking on the job. But those folks who survived the downsizing. Are being taken care. Guys move money into human services. At the request of employees. I ask you want salary increase they said no. So it's -- what you want is -- upgraded workstations. Halt food. Is so big gun -- porridge. Every morning break. -- -- -- -- Guys also pays for employees' children to attend summer here. That is our time for today tomorrow morning I've -- shift more coverage. Automotive News world -- hope to see that.

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