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Jim HenryAutomotive News
April 3, 2013 - 11:05 am ET
Auto shows are all about product, but auto finance is never far beneath the surface.
Here are a few quick comments on auto finance from executives at the New York auto show last week.
Subaru: No captive? No problem
Tom Doll, president of Subaru of America Inc., said he's happy with Chase Auto Finance, which provides private-label loans and leases for Subaru dealers, instead of a captive finance company.
"They're great partners," he said. Through April, he said, Subaru is offering lease deals on some Impreza and Legacy models, but Subaru incentives are typically among the industry's lowest. "The offers are pretty generous for us," he said.
Doll acknowledged that Subaru lease penetration is also below average. Subaru's average lease penetration for 2012 was 9.8 percent compared with an industry average for nonluxury brands of 15.5 percent, says ALG Inc.
Doll said Subaru customers tend to keep their cars a long time and "drive the hell out of them." That's part of an outdoorsy, active lifestyle, he said, adding: "Our people want to own."
VW Group: Staying in step
In contrast to Subaru, Volkswagen shares a headquarters in Herndon, Va., and works "in lockstep" with captive finance company VW Credit Inc., says Jonathan Browning, CEO of Volkswagen Group of America.
Both companies have grown in the United States as VW Group sales have taken off. In 2012, U.S. sales for all VW Group brands combined increased 30 percent from a year ago to 615,281 units.
"I'd say there is tremendous alignment between Audi or VW and VCI. We all work very closely together," Browning said. "The mission of VW Credit is to support our growth."
Nissan: Loyalty is key goal
Meanwhile, Al Castignetti, vice president of Nissan Motor America's Nissan Division, said customer loyalty is a top item on his agenda.
"Years ago, all anybody talked about was 'customer satisfaction, customer satisfaction, customer satisfaction.' That's important, but what you really need is customer advocacy, and that goes directly to customer loyalty," he said.
Extended-service contracts contribute to customer loyalty by retaining service customers, Castignetti said. Finance and insurance products aren't his responsibility, but service contracts contribute to the overall picture, he said.
He said Nissan has a dealer incentive program that takes customer retention into account.
You can reach Jim Henry at autonews@crain.com.
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