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Volume 9 • Issue 4www.mada.orgSummer 2013

Collision & Service Council

Inside this issue:

Dealership Showcase Luther Brookdale Toyota

Industry Spotlight Steve Brimhall

How MADA,s Wheel Theft

Investigation Can Help Protect Your Dealership From Crime

Spinning Our Wheels:

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delivering affordable care. offering more ways to save.The Minnesota Automobile Dealers Association and Blue Cross and Blue Shield of Minnesota

offer more choices to keep health care affordable and provide opportunities to manage future

health care costs for you and your employees.

➜ Delivering affordable care – Blue Cross plans deliver the lowest total cost per member

per month1

➜ Offering more ways to save – Our total cost-of-care high-performance networks and

integrated pharmacy solutions offer savings opportunities you can see now

➜ Providing longer-term savings strategies – Our health support programs can help

employees take action to live healthier lives and reduce future health care costs

Blue Cross® and Blue Shield® of Minnesota and Blue Plus® are nonprofit independent licensees of the Blue Cross and Blue Shield Association.

Find out how to accelerate your health care savings

today and tomorrow. Call MADA Insurance at

(651) 291-2400 or 1-800-652-9029.

1 2010 Milliman data

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2013 Executive CommitteePresident

Steve Brimhall, Minnesota Motor CompanyPresident Elect

Morrie Wagener, Morrie’s Automotive GroupTreasurer

Greg House, House ChevroletSecretary

Mike Saxon, Inver Grove Ford LincolnImmediate Past President

Paul Walser, Walser Automotive Group Executive Vice President

Scott Lambert

EDITORIAL STAFFScott Lambert, Publisher

Alyssa Schlander, PublisherGinger Lemke, EditorPHOTOGRAPHY

Jim Mims, Mims PhotographySUBSCRIPTIONS

Minnesota Dealer Outlook is an official Minnesota Auto Dealers Association

publication, provided quarterly to Members of the Minnesota Automobile

Dealers Association.SUBMIT ADDRESS CHANGES TO:Minnesota Automobile Dealers Association

200 Lothenbach AvenueWest St. Paul, MN 55118-3505

Phone: 651.291.2400 • Fax: 651.291.2894Toll Free: 1.800.652.9029Email: [email protected]

ADVERTISING SALES:Ginger Lemke

Phone: 651-291-2400Email: [email protected]

IN THIS ISSUE10Cover: Spinning Our Wheels

34Industry Spotlight: Steve Brimhall

33Dealership Showcase:Luther Brookdale Toyota

On the Cover: It’s elementary! Sherlock Holmes is none other than Bernie Wagnild of the Valley Auto Group who appears to have caught his man. MADA and GMADA Executive Vice President Scott Lambert surrenders to Bernie Wagnild for our cover story on private investigation of Wheel Theft.

Advertising Directory

Blue Cross Blue Shield MN .. Front Inside CoverCarSoup.com ............................................ 23CVR ............................................................ 9CliftonLarsonAllen ...................................... 6MADA Business Cards ............................. 32 MADA Direct Mail ....................................... 8 MADA Endorsed Services and Vendors ..... 8

Protective ....................................Back CoverReliable Plus ............................................. 29Schmit Towing .......................................... 29Super America ............................................ 5StarTribune ......................Back Inside CoverWings Financial ........................................ 18WIPFLI LLP .............................................. 30

Table of Contents

MADA MinutesAwards .......................................................4On the CoverSpinning Our Wheels: How MADA’s Wheel Theft Investigation Can Help Protect Your Dealership From Crime ...................10Legislative News2013 Legislative Wrap Up .........................7Dealers Are Good NeighborsGood News ..............................................16Minnesota Auto Outlook Comprehensive New & Used Vehicle Information on Minnesota’s Automotive Market ......................................................19Dealership Showcase Luther Brookdale Toyota ..........................33Industry Spotlight Steve Brimhall .........................................34

Data Source Information for Minnesota Auto Outlook on pages 19 - 33

Exclusive source for new vehicle registration data presented in Minnesota Auto Outlook is AutoCount, an Experian Company. AutoCount specializes in providing detailed new and used vehicle sales and registration statistics. Data is available on a timely basis on the internet.

For more information on Auto Count, call 407-770-5900 or visit AutoCount’s web site: www.autocount.com

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mailto:[email protected]


CarSoup.com

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Ken Waschke Auto Plaza of Virginia has been recognized by General Motors as one of its Mark of Excellence Dealers; the 14th time that the dealership has been recognized with this honor by GM. The distinction is reserved for dealerships who exhibit professionalism and superior customer service, while growing their business. “We had a very strong year in 2012, and are proud that our hard work has been recognized,” said Kerry Waschke Collie of Ken Waschke Auto Plaza. Of GM’s approximately 4,500 Chevrolet, Buick, GMC and Cadillac dealerships across the United States, Ken Waschke Auto Plaza was one of only 308 dealerships to receive the Mark of Excellence award.

AwardsKen Waschke Auto Plaza Receives Award

In May, the American International Automobile Association (AIADA) honored Morrie Wagener and Cindy Wagener Robin with its Legislative Action

Network Grassroots Award. The award recognizes advocacy in reaching out and engaging Congress and other policy makers on issues important to the international nameplate auto dealer community.

AIADA Honors Local Dealers

MINUTES

Tom Heffernan Ford celebrated the dealership’s 40th year as Lake City’s Ford Dealer.

Minnesota Motor Company will celebrate its 90th anniversary as a Chevrolet dealership. The celebration was delayed while a remodeling project was underway.

Higley Ford of Windom is celebrating 50 years as a family-owned dealership.

Anniversaries

The Winona Chamber Ambassador’s Progress Award recognized Dahl for “continuing to introduce into our economy their initiative, savings, resources, courage and enterprise.” The Dahl family has been in the automotive business for over 100 years. The family operates two dealerships in Winona; Dahl Chevrolet, Buick, GMC Inc. and Dahl Toyota. Co-owners of the dealerships are Andrew, Jansen and Tyler Dahl.

Winona Chamber Celebrates Dahl Family

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The Minnesota Automobile Dealers Association again sponsored a Minnesota High School AYES team, plus their instructor, to compete in the Greater New York National Automotive Technology Competition. As the first-place winners of the state competition, Moorhead High School automotive students Ken Bye and Bryce Jossund held their own, placing 6th out of 30 finalists.The national competition tests participants’ knowledge over 6 hours and then requires each student team to diagnose and repair a number of problems in a “bugged” car within 3 hours.

Minnesota Automotive Youth Educational Systems is a partnership among manufacturers, dealers and select high schools/tech prep schools to prepare students for careers in automotive technology. It is supported by the MADA Charitable Foundation.

AYES Team in National CompetitionMI N N E S O TA TE A M FI N I S H S 6T H OV E R A L L AT T H E 2013 GNYADA A U T O M O T I V E CO M P E T I T I O N

Pictured Left to Right Bryce Jossund, Kenneth Bye Jr and their stall judge (an unidentified MAZDA Field Engineer).

2013

The Minnesota Automobile Dealers Asso-ciation again sponsored a Minnesota High School AYES Automotive Team and their teacher to the Greater New York National Automotive Technology Competition. Moorhead High School AYES student team of Kenneth Bye,Jr and Bryce Jossund won the state competition placing first overall, giving them the chance to compete at the 2013 National Automotive Technology Competition. Their instructor Lauren Rood worked closely with the team to prepare them for the competition. He accompa-nied the team to the contest which was held on April 2nd and 3rd at the Jacob K. Javits Convention Center. This years team placed 6th overall after finishing two days of competition.

The Greater New York National Automotive Technology Competition is a test of skill, a measure of knowledge, and a race against the clock—all rolled into one. It features hundreds of the nations best automotive high school seniors from across the country competing for the title of THE BEST AUTOMOTIVE TECHNICIAN. This nationally recognized competition, which was developed in 1990 by the Greater New York Automobile Dealers Association to help cure the shortage of qualified automotive technicians and raise the level of vocational educa-tion standards in the public school system. This year’s competition is cele-brating its 24 year as the preeminent competition of its kind. This year more than $3 Million dollars in prizes were awarded to the partici-pating students and their schools from across the country. Thanks to the generous support provided by nearly every automaker, industry suppliers, dealer associations and dealerships.

Minnesota’s auto technician team Ken Bye and Bryce Jossund demonstrated their sleuthing skills at a New York national com-petition as finalists sponsored by MADA.

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Assurance Tax Advisory cliftonlarsonallen.com/dealerships

Scott Gorden 612-376-4751

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LEGISLATIVE NEWS

Although the 2013 Legislature passed plenty of tax increases and made some dramatic public policy changes this year, we were pleased that the MADA-led initiative to eliminate the $6.50 wholesale transfer tax on used vehicles was approved. The fee sunsets in 2017.

Also, after several years of debate, the legislature finally approved a change to the imposition of sales tax on auto repair shop materials and auto repair paint from the wholesale level to retail.

For the first time since 1990, the DFL held complete control of state government. The legislature passed substantial tax increases on high-income earners, cigarettes, and other services. Lawmakers also approved some long-sought DFL initiatives like providing funding for all-day kindergarten, legalization of gay marriage, and authorization for the unionization of child care providers who receive state subsidies.

The Governor’s campaign promise to “tax the rich” will become reality after the legislature approved a state income tax rate hike on top earners. The 2013 rate for married, filing jointly with taxable income over $250,000 will increase to 9.85%.

Part of the legislature’s effort to raise over $2 billion in new taxes included extending the state sales tax to certain services like warehousing, commercial equipment repair services, and electronics repair services.

Some tax increases will specifically affect the retail auto industry. The tax bill increased the rental car tax from 6.2% to 9.2%, making Minnesota’s taxes on rental cars amongst the highest in the country.

Additionally, all Minnesota counties were granted new authority to impose a $10 wheelage tax on annual motor vehicle registrations. Counties are now authorized to impose a $10 tax until 2017, then the wheelage tax may be increased “up to $20.” Wheelage taxes are imposed on vehicles according to where the vehicle is kept, not where the vehicle is sold.

MADA’s government affairs team successfully led the fight against municipal street improvement fees which would have allowed municipal governments to impose new property taxes.

In addition, MADA opposed several other damaging tax increases:

• efforts to increase the transit sales tax in the 7-county metro area,

• an effort to increase the motor vehicle sales tax from 6.5% to 6.875%,

• a proposal to increase the motor vehicle registration tax,

• a move to impose sales tax on advertising, accounting, legal and most other business-to-business services, and

• the extension of sales tax to auto repair labor, service contracts and extended warranties.

Though these proposals did not become law in 2013, MADA expects many of these tax proposals to be on the table when the legislature reconvenes on February 25, 2014.

Legislature Hikes Taxes by $2.1 billion; More To Come Next Year

Part of the legislature’s effort to raise over $2 billion in new taxes included extending the state sales tax to

certain services...

by Alyssa SchlanderVice President, External Affairs

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Call MADA for all of

your Direct Mail Needs.

651-291-2400 • 800-652-9029

MADA Endorsed Services & VendorsComputerized Vehicle Registration CVR

Dealership Marketing Visible Customer

F&I Products Protective

Group Health Insurance Blue Cross Blue Shield of MN Delta Dental ReliaStar Life

Workers Compensation Ensure Agency Midwest Family Mutual

Dealer Bond Program Ensure Agency

Collections Springer Collections

Check Guarantee/Credit Card Processing FIS / Certegy

Disability Income Insurance & Section 125 Cafeteria Plans American Fidelity Assurance

OSHA, EPA & DOT Compliance/Training ComplyNet Corporation

Fleet Fueling Program SuperAmerica

Office Supplies S&TOfficeProducts

Uniforms and Linen Services AmeriPride Linen and Apparel Services

Hole-In-One Insurance Hole-In-One-USA

Pre-Paid Legal, Jim Gavin Identity Theft Shield & Pre-Paid Legal Services

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COMIC CORNER

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Minnetonka: 72 wheels with 20,,

alloy rims stolen off 18 Chevy Suburbans and Tahoes.Annandale: 12 wheels with 18

,, alloy rims stolen

off three Chevy Suburbans

Lakeville: 68 wheels with 20,,

and 22,,

alloy rims stolen from Chevy trucks and SUVs.

White Bear Lake: 40 wheels with 18,,

and 20,,

alloy rims stolen off Chevy Silverados and Tahoes.

Roseville: 8 wheels with 22,,

aluminum rims stolen off a Mack Truck.

How MADA,s Wheel Theft Investigation Can Help

Protect Your Dealership From CrimeSpinning Our Wheels:

Minnetonka:

Annandale:

Lakeville:

White Bear Lake:

Roseville:

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www.mada.org 11

When Edmund’s reviewed the Lincoln Town Car a few years ago they appreciated the Town Car’s abundant storage areas, soft ride quality its “interior spaciousness and ability to swallow four sets of golf clubs in the huge trunk.”

When Oakdale police stopped a 23-year-old man from Fridley driving a Town Car last spring, it was quickly apparent that the vehicle’s interior spaciousness was good for more than just four sets of golf clubs. The state trooper who stopped the Town Car noticed two new tires and Corvette rims in the backseat. Upon further inspection, he found two more wheels and tires, floor jacks, tire irons, a flashlight, gloves and concrete landscaping blocks swallowed up in that huge Town Car trunk.

The Town Car-driving thief caused $7,000 in damage to a Corvette ZRI, now sitting on concrete landscape blocks at Village Chevrolet. But, that’s just the tip of the iceberg when it comes to wheel and tire thefts from Minnesota dealerships in the last couple of years.

An MADA investigation of wheel and tire thefts in the greater metropolitan area revealed that financial losses to the dealerships and their

by Alyssa SchlanderVice President, External Affairs

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www.mada.org12

insurance companies attributed to wheel and tire thefts is almost a half-million dollars in the past 18 months alone.

There were no eyewitnesses to any of the thefts. There was little or no evidence of value found at the scenes. In most cases, the only remnants of a crime were vehicles sitting on supporting blocks without their wheels, lug nuts scattered on the ground and sometimes broken glass from vehicle windows.

There were at least three large incidents involving the theft of more than 60 wheels and tires, which law enforcement says points to suspects with a well-planned and coordinated operation.

In a couple of instances, security cameras captured shadowy images of the suspects committing the thefts, using a U-Haul truck to transport the stolen property. The video footage exposed the swiftness and methodical approach of the thieves, armed with cordless power tools and working as a crew to carry out the crimes.

Nationally, wheel and tire thefts are now resurgent, thanks to anonymous online marketplaces. Couple that with the functionality of cordless power tools that allow thieves to remove wheels in a minute or two, and you’ve got an easy and lucrative target.

According to the National Insurance Crime Bureau (NCIB), Honda vehicles are the favorite target of thieves in California, Nissan vehicles in Illinois, while Chevrolet and GMC vehicles are the top target in Texas and Minnesota.

All of the victims interviewed in our investigation reported that the wheels stolen were alloy or aluminum wheels, ranging between 18” and 22” rims. Chevrolet and GMC tires are less traceable for police and, therefore, less risky for thieves. For instance, unlike Ford Motor Company, General Motors does not record the Department of Transportation number imprinted on the tires for each vehicle when

How MADA,s Wheel Theft Investigation Can Help Protect Your Dealership From Crime


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www.mada.org 13

they are mounted at the factory. Moreover, interviews with GM dealers revealed that they do not regularly document the tires’ DOT numbers when the vehicles are entered into their inventory. Even when law enforcement is able to recover stolen property, the lack of serial numbers or identifiable marking makes verifying ownership of wheels and tires impossible.

Law enforcement agencies have had limited success on these cases with a small number of suspects apprehended and charged with theft or attempted theft. In some cases, the thefts were disrupted by alert police officers. On others, police officers apprehended suspects on traffic stops shortly after the theft and found stolen wheels and tires, as well as the necessary tools and equipment, in their possession.

Because these thefts are widespread across the metro area, a law enforcement task force has been established so that officers from various jurisdictions can share information on wheel thefts. Although the details of their investigations are sensitive and prohibited from public disclosure, a number of thefts appear to be linked to criminal gangs.

GMADA has reached out to the task force to offer any assistance in sharing information on these crimes. If your dealership has experienced wheel thefts or attempted wheel thefts, please let us know so that we can continue to keep law enforcement informed.

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Private Investigator and Former FBI Agent George Kyrillis investigated the rash of the thefts from Twin Cities dealers on behalf of MADA. Mr. Kyrilis recomended some common-sense strategies that dealers can use to deter wheel thieves.

Use locking lug nuts on alloy and aluminum wheels. They won’t stop thieves entirely, but they may slow down organized criminals or cause amateur criminals to look elsewhere.

Hide the keys indoors. Don’t keep the keys to the locked lug nuts in the vehicle’s glove box or anywhere else in the vehicle. Thieves have no problem breaking windows to find the keys.

Keep the wheels where we can see ,em! Don’t park the vehicles

with the alloy wheels in back of the lot.

Stagger your display. Consider parking vehicles with alloy wheels next to vehicles without alloy wheels. Our investigation revealed that the large thefts involved vehicles with alloy wheels parked in a row, making it easy for thieves to

How MADA,s Wheel Theft Investigation Can Help Protect Your Dealership From Crime


,,Crime is common. Logic is rare.

than upon the crime that you should

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www.mada.org 15

be efficient. Creating distance between the targeted vehicles would disrupt the speed of organized tactics.

Turn the front wheels. With the front wheels turned, removing the lug nuts and front wheels from the vehicle would be more difficult.

Use and record identifiable markings. Recording the DOT numbers on tires for each vehicle in dealership inventory and/or discretely marking wheels with engraving pens will help law enforcement trace stolen wheels and return them to their rightful owners.

Lights, camera... no action! Better lighting creates higher visibility for law enforcement and security patrols. It also improves the quality of the images captured by security cameras. Security cameras should be updated to capture nighttime images and positioned to capture images of vehicles and suspects at the entrance to the parking lot and the area where the trucks and SUVs

are parked. If possible, cameras that capture the area adjacent to the dealership can capture usable evidence. Capturing an image of the vehicle used to transport the stolen property provides more evidence to law enforcement than footage of shadowy figures.

Therefore, it is upon the logic rather dwell.

,, -- Sherlock Holmes.

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www.mada.org16

Building Communities

Clusiau Sales and Rental, Grand Rapids, helped to raise over $2,000 for the Greenway/Nashwauk-Keewatin Track Team.

The Dodge Brand and A.M. Maus & Son, Inc., Kimball, helped to raise $4,500 for the Kimball Area High School to be used for the KAHS Booster Club.

Lee Brothers Sales, Inc. partnered with the Norman County Summer League Baseball in Ada to provide new equipment, a monetary contribution, invitations to free instructional clinics and the opportunity for community members to enter the free Chevrolet vehicle sweepstakes.

Hawkins Chevrolet has a similar partnership with the Fairmont Baseball Association in Fairmont.The national Chevrolet Youth Baseball program makes these contributions possible. In the eight years since Chevrolet introduced the program, more that 3 million young people have participated.

The Marshall Fire and Rescue was presented with a Resusci Anne by Lockwood Motors and MADA Charitable Foundation.

Support for EducationCompetition was tense for the Chevy Scholarship Program which offered a $5,000 scholarship check to a deserving student. The Program was created by 20 Chevrolet dealers that make up the Certified Heartland Chevy Dealers. The winner of the scholarship was Isaac Loegering who was sponsored by Brost

Chevrolet in Crookston.

Stafford Thompson of Brainerd High School FFA was awarded a $1,000 scholarship by Mills Motor, Inc. and the Ford Motor Company. The Built Ford Tough FFA Scholarship program is designed to recognize FFA member’s talents and accomplishments while encouraging future academic achievements.

Partners in our CommunitiesHonda of St. Cloud combined the fun aspects of a holiday party with charitable giving in a casino royale night theme to support Toys for Tots.

Rudy Luther Toyota Scion built up Toys for Tots stock by offering $9.95 oil changes with a toy donation of $10 minimum value. The toy collection program has grown every year and will continue to be an annual tradition for both dealerships.

A special event to support Gillette Children’s Specialty Healthcare was sponsored by Jaguar Land Rover

Dealers Are Good Neighbors

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Fairmont.The

www.mada.org 17

Minneapolis. The event raised $8,000 for this internationally-recognized pediatric care facility.

Rudy Luther Toyota Scion was very pleasantly surprised when their very successful food drive results were matched by Toyota, resulting in a $5,000 food drive total!

Make-A-Wish for MatthewIn early January, Morrie’s Automotive Group partnered with Make-A-Wish of Minnesota to grant “Matthew’s wish.” Matthew, who has battled Hodgkin’s Lymphoma for

the past two years, wished to have his 1968 Dodge Charger restored and Morrie’s gladly delivered. After five months, over 600 hours of work and the combined efforts of over 40 employees and a dozen vendors, the car was completed in late May. On May 31, Morrie’s held a surprise reveal of the renewed car for Matthew and his family to meet the dozens of people who helped make his wish come true.

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to Sandy at [email protected]

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MINNESOTA AUTO OUTLOOK Comprehensive Information on the Minnesota Automotive Market

The Minnesota new vehicle market got off to a good start in 2013, with new retail light vehicle registrations increasing 13.4% during the first four months versus a year earlier. The uptick comes on the heels of steady gains during the past three years. Registrations increased 3.7% in 2010, 25.4% in 2011, and 29.5% in 2012. Indeed, this trend of growth following the market collapse in 2009 is exactly what Auto Outlook predicted four years ago.

Our forecast at the time was predicated on two main themes. First, depressed new vehicle sales in 2008 and 2009 would lead to an aging vehicle fleet and the accumulation of pent up demand that would give the market sustained momentum. Second, the onset of the financial crisis and ensuing de-leveraging process in both the private and public sectors of the economy would put a damper on economic growth for several years. These two primary forces have indeed directed the course of the new vehicle market for the past four years. Pent up demand has supported the market, while sluggish economic growth has held back the pace of the sales recovery. This prescription should remain in place for at least the next two years. Auto Outlook is predicting a 7.2% increase in sales this year, with further improvement likely in 2014.

Below are some other trends in the Minnesota vehicle market:

• Car registrations were up 17.4% during the first four months of this year, while light trucks increased 10.9%.

• Japanese and Detroit Three brands had double digit percentage increases in the first four months of this year, while European brands declined.

• Alternative powertrain (hybrid and electric) vehicle market share reached 3.5% in the First Quarter of 2013.

• Dodge, Mazda, and Lexus had the largest percentage increases in registrations.

• Chevrolet and Ford market shares in the state exceeded national levels by a wide margin.

FORECAST

State New Vehicle Market Improves 13.4% thru April of 20137.2% increase predicted for entire year

Market Review

The Minnesota new vehicle market got off to a good start in 2013, with new retail light vehicle registrations increasing 13.4% during the first four months versus a year earlier. The uptick comes on the heels of steady gains during the past three years. Registrations increased 3.7% in 2010, 25.4% in 2011, and 29.5% in 2012. Indeed, this trend of growth follow-ing the market collapse in 2009 is exactly what Auto Outlook predicted four years ago.

Our forecast at the time was predicated on two main themes. First, depressed new vehicle sales in 2008 and 2009 would lead to an aging vehicle fleet and the accumulation of pent up demand that would give the market sustained momentum. Second, the onset of the financial crisis and ensuing de-leveraging process in both the private and public sectors of the economy would put a damper on economic growth for several years. And these two primary forces have indeed directed the course of the new vehicle market for the past four years. Pent up demand has supported the market, while sluggish economic growth has held back the pace of the sales recovery. And this prescription should remain in place for at least the next two years. Auto Outlook is predicting a 7.2% increase in sales this year, with further improvement likely in 2014.


‣ Car registrations were up 17.4% during the first four months of this year, while light trucks increased 10.9%.

‣ Japanese and Detroit Three brands had double digit percentage increases in the first four months of this year, while European brands declined.

‣ Alternative powertrain (hybrid and electric) vehicle market share reached 3.5% in the First Quarter of 2013.

‣ Dodge, Mazda, and Lexus had the largest percentage increases in registrations.

‣ Chevrolet and Ford market shares in the state exceeded National levels by a wide margin.

FORECAST


Annual Trend in Minnesota New Vehicle Market

Detroit Three consists of vehicles sold by GM, Ford, and Chrysler.

Data Source: AutoCount data from Experian Automotive. Data Source: AutoCount data from Experian Automotive. Data Source: AutoCount data from Experian Automotive.

168,673 148,311

116,541 120,903

151,589

196,295 210,500

0

50,000

100,000

150,000

200,000

250,000

2007 2008 2009 2010 2011 2012 2013 Forecast

New

ligh

t veh

icle

regi

stra

tions

Years

YTD '12thru April

YTD '13thru April

% ch.'12 to '13

TOTAL 61,012 69,201 13.4%

Car 23,925 28,078 17.4%Light Truck 37,087 41,123 10.9%

Detroit Three 33,140 37,632 13.6%European 4,668 4,469 -4.3%Japanese 18,372 21,998 19.7%Korean 4,832 5,102 5.6%

Market Review

The Minnesota new vehicle market got off to a good start in 2013, with new retail light vehicle registrations increasing 13.4% during the first four months versus a year earlier. The uptick comes on the heels of steady gains during the past three years. Registrations increased 3.7% in 2010, 25.4% in 2011, and 29.5% in 2012. Indeed, this trend of growth follow-ing the market collapse in 2009 is exactly what Auto Outlook predicted four years ago.

Our forecast at the time was predicated on two main themes. First, depressed new vehicle sales in 2008 and 2009 would lead to an aging vehicle fleet and the accumulation of pent up demand that would give the market sustained momentum. Second, the onset of the financial crisis and ensuing de-leveraging process in both the private and public sectors of the economy would put a damper on economic growth for several years. And these two primary forces have indeed directed the course of the new vehicle market for the past four years. Pent up demand has supported the market, while sluggish economic growth has held back the pace of the sales recovery. And this prescription should remain in place for at least the next two years. Auto Outlook is predicting a 7.2% increase in sales this year, with further improvement likely in 2014.


‣ Car registrations were up 17.4% during the first four months of this year, while light trucks increased 10.9%.

‣ Japanese and Detroit Three brands had double digit percentage increases in the first four months of this year, while European brands declined.

‣ Alternative powertrain (hybrid and electric) vehicle market share reached 3.5% in the First Quarter of 2013.

‣ Dodge, Mazda, and Lexus had the largest percentage increases in registrations.

‣ Chevrolet and Ford market shares in the state exceeded National levels by a wide margin.

FORECAST


Annual Trend in Minnesota New Vehicle Market

Detroit Three consists of vehicles sold by GM, Ford, and Chrysler.

Data Source: AutoCount data from Experian Automotive. Data Source: AutoCount data from Experian Automotive. Data Source: AutoCount data from Experian Automotive.

168,673 148,311

116,541 120,903

151,589

196,295 210,500

0

50,000

100,000

150,000

200,000

250,000

2007 2008 2009 2010 2011 2012 2013 Forecast

New

ligh

t veh

icle

regi

stra

tions

Years

YTD '12thru April

YTD '13thru April

% ch.'12 to '13

TOTAL 61,012 69,201 13.4%

Car 23,925 28,078 17.4%Light Truck 37,087 41,123 10.9%

Detroit Three 33,140 37,632 13.6%European 4,668 4,469 -4.3%Japanese 18,372 21,998 19.7%Korean 4,832 5,102 5.6%

Annual Trend in Minnesota New Vehicle Market Market Review

Data Source: AutoCount data from Experian Automotive Data Source: AutoCount data from Experian Automotive

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Top ten ranked brands in each category are shaded green.

Brand Registrations ReportMinnesota New Retail Car and Light Truck Registrations

April Year-to-date thru AprilRegistrations Market Share (%) Registrations Market Share (%)

2012 2013 % change 2012 2013 Change YTD '12 YTD '13 % change YTD '12 YTD '13 ChangeTOTAL 19,191 17,168 -10.5 61,012 69,201 13.4Cars 8,016 7,415 -7.5 41.8 43.2 1.4 23,925 28,078 17.4 39.2 40.6 1.4Light Trucks 11,175 9,753 -12.7 58.2 56.8 -1.4 37,087 41,123 10.9 60.8 59.4 -1.4Domestic Brands 10,234 9,132 -10.8 53.3 53.2 -0.1 33,140 37,632 13.6 54.3 54.4 0.1European Brands 1,457 1,084 -25.6 7.6 6.3 -1.3 4,668 4,469 -4.3 7.7 6.5 -1.2Japanese Brands 5,926 5,659 -4.5 30.9 33.0 2.1 18,372 21,998 19.7 30.1 31.8 1.7Korean Brands 1,574 1,293 -17.9 8.2 7.5 -0.7 4,832 5,102 5.6 7.9 7.4 -0.5

Acura 104 95 -8.7 0.5 0.6 0.1 340 415 22.1 0.6 0.6 0.0Audi 142 112 -21.1 0.7 0.7 0.0 486 448 -7.8 0.8 0.6 -0.2BMW 243 207 -14.8 1.3 1.2 -0.1 733 848 15.7 1.2 1.2 0.0Buick 381 399 4.7 2.0 2.3 0.3 1,122 1,465 30.6 1.8 2.1 0.3Cadillac 124 131 5.6 0.6 0.8 0.2 430 578 34.4 0.7 0.8 0.1Chevrolet 3,358 2,563 -23.7 17.5 14.9 -2.6 10,414 11,414 9.6 17.1 16.5 -0.6Chrysler 452 339 -25.0 2.4 2.0 -0.4 1,474 1,387 -5.9 2.4 2.0 -0.4Dodge 501 635 26.7 2.6 3.7 1.1 1,648 2,383 44.6 2.7 3.4 0.7Fiat 27 36 33.3 0.1 0.2 0.1 72 119 65.3 0.1 0.2 0.1Ford 3,492 3,421 -2.0 18.2 19.9 1.7 11,819 13,477 14.0 19.4 19.5 0.1GMC 788 603 -23.5 4.1 3.5 -0.6 2,400 2,736 14.0 3.9 4.0 0.1Honda 1,390 1,456 4.7 7.2 8.5 1.3 4,708 5,350 13.6 7.7 7.7 0.0Hyundai 677 633 -6.5 3.5 3.7 0.2 2,214 2,450 10.7 3.6 3.5 -0.1Infiniti 73 101 38.4 0.4 0.6 0.2 266 360 35.3 0.4 0.5 0.1Jaguar 3 11 266.7 0.0 0.1 0.1 12 16 33.3 0.0 0.0 0.0Jeep 632 443 -29.9 3.3 2.6 -0.7 2,043 1,862 -8.9 3.3 2.7 -0.6Kia 897 660 -26.4 4.7 3.8 -0.9 2,618 2,652 1.3 4.3 3.8 -0.5Land Rover 48 35 -27.1 0.3 0.2 -0.1 143 167 16.8 0.2 0.2 0.0Lexus 149 228 53.0 0.8 1.3 0.5 535 733 37.0 0.9 1.1 0.2Lincoln 98 108 10.2 0.5 0.6 0.1 361 431 19.4 0.6 0.6 0.0Mazda 307 362 17.9 1.6 2.1 0.5 942 1,309 39.0 1.5 1.9 0.4Mercedes 238 159 -33.2 1.2 0.9 -0.3 740 731 -1.2 1.2 1.1 -0.1MINI 72 70 -2.8 0.4 0.4 0.0 205 199 -2.9 0.3 0.3 0.0Mitsubishi 63 96 52.4 0.3 0.6 0.3 212 290 36.8 0.3 0.4 0.1Nissan 851 822 -3.4 4.4 4.8 0.4 2,953 3,092 4.7 4.8 4.5 -0.3Porsche 19 14 -26.3 0.1 0.1 0.0 56 50 -10.7 0.1 0.1 0.0Ram 408 490 20.1 2.1 2.9 0.8 1,429 1,899 32.9 2.3 2.7 0.4smart 3 0 -100.0 0.0 0.0 0.0 7 5 -28.6 0.0 0.0 0.0Subaru 816 656 -19.6 4.3 3.8 -0.5 2,170 2,783 28.2 3.6 4.0 0.4Toyota/Scion 2,146 1,814 -15.5 11.2 10.6 -0.6 6,150 7,536 22.5 10.1 10.9 0.8Volkswagen 552 407 -26.3 2.9 2.4 -0.5 1,899 1,704 -10.3 3.1 2.5 -0.6Volvo 82 31 -62.2 0.4 0.2 -0.2 257 174 -32.3 0.4 0.3 -0.1Other 55 31 -43.6 0.3 0.2 -0.1 154 138 -10.4 0.3 0.2 -0.1Source: AutoCount data from Experian Automotive

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MARKET TRACKER: BRAND MARKET SHARE

Japanese Brand Market Share Has Increased in 2013

-1.2

-0.5

0.1

1.7

-1.5 -1.0 -0.5 0.0 0.5 1.0 1.5 2.0

European

Korean

Detroit Three

Japanese

Change in market share

Japanese brand share has increased 1.7 points so far this year.



MARKET TRACKER: HYBRID AND ELECTRIC VEHICLES

Hybrid & Electric Share Hits 3.5% in First Quarter of 2013

Data Source: AutoCount data from Experian Automotive.

Change in State Market Share: YTD 2013 thru April vs. YTD 2012

Quarterly Alternative Powertrain Market Share (includes hybrid and electric vehicles)


0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0

Q2 '10

Q3 '10

Q4 '10

Q1 '11

Q2 '11

Q3 '11

Q4 '11

Q1 '12

Q2 '12

Q3 '12

Q4 '12

Q1 '13

Quarters

Alternative powertrain market share is trending higher and reached 3.5% in the First Quarter of this year.

Trendline



-1.2

-0.5

0.1

1.7

-1.5 -1.0 -0.5 0.0 0.5 1.0 1.5 2.0

European

Korean

Detroit Three

Japanese

Change in market share

Japanese brand share has increased 1.7 points so far this year.









0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0

Q2 '10

Q3 '10

Q4 '10

Q1 '11

Q2 '11

Q3 '11

Q4 '11

Q1 '12

Q2 '12

Q3 '12

Q4 '12

Q1 '13

Quarters

Alternative powertrain market share is trending higher and reached 3.5% in the First Quarter of this year.

Trendline



Data Source: AutoCount data from Experian Automotive


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BRAND SCOREBOARD - PART ONE

Dodge, Mazda, and Lexus Post Largest Gains So Far This YearMitsubishi, Infiniti, and Cadillac also had big increases

1.3%

10.7%

4.7%

13.6%

22.1%

22.5%

28.2%

35.3%

36.8%

37.0%

39.0%

-32.3%

-28.6%

-10.7%

-10.3%

-7.8%

-2.9%

-1.2%

15.7%

16.8%

33.3%

-8.9%

-5.9%

9.6%

14.0%

14.0%

19.4%

30.6%

32.9%

34.4%

44.6%

-40.0% -30.0% -20.0% -10.0% 0.0% 10.0% 20.0% 30.0% 40.0% 50.0%

Kia

Hyundai

Nissan

Honda

Acura

Toyota/Scion

Subaru

In�niti

Mitsubishi

Lexus

Mazda

Volvo

smart

Porsche

Volkswagen

Audi

MINI

Mercedes

BMW

Land Rover

Jaguar

Jeep

Chrysler

Chevrolet

GMC

Ford

Lincoln

Buick

Ram

Cadillac

Dodge

Detroit Three Brands

European Brands

Japanese Brands

Korean Brands

BRAND SCOREBOARD - PART ONE

Dodge, Mazda, and Lexus Post Largest Gains So Far This YearMitsubishi, Infiniti, and Cadillac also had big increases

The graphs below provide a comparative evaluation of brand sales performance in the state market. It shows the year-to-date percent change in registrations for each brand, organized by category (i.e., Detroit Three, European, Japanese, and Korean).

Source: AutoCount data from Experian Automotive.

Percent Change in State New Retail Light Vehicle RegistrationsYTD 2013 thru April vs. YTD 2012

The graphs below provide a comparative evaluation of brand sales performance in the state market. It shows the year-to-date percent change in registrations for each brand, organized by category (i.e., Detroit Three, European, Japanese, and Korean). Source: AutoCount data from Experian Automotive.

Percent Change in State New Retail Light Vehicle RegistrationsYTD 2013 thru April vs. YTD 2012

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The four graphs below show market share leaders in Minnesota during the first four months of this year for four primary segments: Non-Luxury Cars, Non-Luxury Trucks, Luxury Cars, and Luxury Trucks. Ford was the best-selling Non-Luxury Car brand, with a 1.8 point lead over second place Toyota. Ford was the top-ranked Non-Luxury Light Truck brand, ahead of Chevrolet. BMW was the best-selling Luxury Car brand, while Lexus was highest for trucks.Source: AutoCount data from Experian Automotive.

BRAND SCOREBOARD - PART TWO

Ford is Non-Luxury Car and Light Truck Brand Leader BMW is best-selling luxury car brand; Lexus is luxury light truck leader

Top 10 Non-Luxury Car Brands in State MarketYTD 2013 thru April

3.5

6.3

6.3

7.0

10.7

10.9

11.1

12.3

14.8

16.0

0.0 5.0 10.0 15.0 20.0

Volvo

Land Rover

In�niti

Audi

Acura

Mercedes

Lincoln

Cadillac

BMW

Lexus

Share of luxury light truck market (%)

0.9

3.5

5.6

5.9

8.4

11.0

11.5

13.5

19.2

19.7

0.0 5.0 10.0 15.0 20.0 25.0

Porsche

Volvo

Acura

Lincoln

In�niti

Cadillac

Audi

Lexus

Mercedes

BMW

Share of luxury car market (%)



Ford is Non-Luxury Car and Light Truck Brand Leader BMW is best selling luxury car brand; Lexus is luxury light truck leader

The four graphs below show market share leaders in Minnesota during the first four months of this year for four primary segments: Non Luxury Cars, Non Luxury Trucks, Luxury Cars, and Luxury Trucks. Ford was the best-selling Non Luxury Car brand, with a 1.8 point lead over second place Toyota. Ford was the top ranked Non Luxury Light Truck brand, ahead of Chevrolet. BMW was the best-selling Luxury Car brand, while Lexus was highest for trucks.

Top 10 Non Luxury Car Brands in State MarketYTD 2013 thru April

Top 10 Non Luxury Light Truck Brands in State MarketYTD 2013 thru April

Top 10 Luxury Car Brands in State MarketYTD 2013 thru April

Top 10 Luxury Light Truck Brands in State MarketYTD 2013 thru April

3.9

5.7

5.9

6.2

7.3

7.5

9.8

12.1

15.2

17.0

0.0 5.0 10.0 15.0 20.0

Dodge

Nissan

Volkswagen

Kia

Subaru

Hyundai

Honda

Chevrolet

Toyota/Scion

Ford

Share of non luxury car market (%)

2.8

3.6

4.2

4.9

5.0

7.1

7.4

9.4

21.6

23.8

0.0 5.0 10.0 15.0 20.0 25.0

Kia

Dodge

Nissan

Jeep

Ram

GMC

Honda

Toyota/Scion

Chevrolet

Ford

Share of non luxury light truck market (%)

Top 10 Non-Luxury Light Truck Brands in State MarketYTD 2013 thru April


3.5

6.3

6.3

7.0

10.7

10.9

11.1

12.3

14.8

16.0

0.0 5.0 10.0 15.0 20.0

Volvo

Land Rover

In�niti

Audi

Acura

Mercedes

Lincoln

Cadillac

BMW

Lexus

Share of luxury light truck market (%)

0.9

3.5

5.6

5.9

8.4

11.0

11.5

13.5

19.2

19.7

0.0 5.0 10.0 15.0 20.0 25.0

Porsche

Volvo

Acura

Lincoln

In�niti

Cadillac

Audi

Lexus

Mercedes

BMW

Share of luxury car market (%)



Ford is Non-Luxury Car and Light Truck Brand Leader BMW is best selling luxury car brand; Lexus is luxury light truck leader

The four graphs below show market share leaders in Minnesota during the first four months of this year for four primary segments: Non Luxury Cars, Non Luxury Trucks, Luxury Cars, and Luxury Trucks. Ford was the best-selling Non Luxury Car brand, with a 1.8 point lead over second place Toyota. Ford was the top ranked Non Luxury Light Truck brand, ahead of Chevrolet. BMW was the best-selling Luxury Car brand, while Lexus was highest for trucks.

Top 10 Non Luxury Car Brands in State MarketYTD 2013 thru April

Top 10 Non Luxury Light Truck Brands in State MarketYTD 2013 thru April



3.9

5.7

5.9

6.2

7.3

7.5

9.8

12.1

15.2

17.0

0.0 5.0 10.0 15.0 20.0

Dodge

Nissan

Volkswagen

Kia

Subaru

Hyundai

Honda

Chevrolet

Toyota/Scion

Ford

Share of non luxury car market (%)

2.8

3.6

4.2

4.9

5.0

7.1

7.4

9.4

21.6

23.8

0.0 5.0 10.0 15.0 20.0 25.0

Kia

Dodge

Nissan

Jeep

Ram

GMC

Honda

Toyota/Scion

Chevrolet

Ford

Share of non luxury light truck market (%)



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BRAND SCOREBOARD - PART THREE

Ford and Chevrolet are Market Leaders Market share for both brands exceeds U.S. by a wide marginThe graph below provides a comparison of Minnesota and U.S. new retail market share during the first four months of this year for the top 20 selling brands in the state. Brands are positioned on the graph from top to bottom based on state market share. Ford was the state leader, accounting for 19.5% of the market, higher than its 13.8% share in the nation. Source: AutoCount data from Experian Automotive.


BRAND SCOREBOARD - PART THREE

Ford and Chevrolet are Market Leaders Market share for both brands exceeds U.S. by a wide margin

The graph below provides a comparison of Minnesota and U.S. new retail market share during the first four months of this year for the top 20 selling brands in the state. Brands are positioned on the graph from top to bottom based on state mar-ket share. Ford was the state leader, accounting for 19.5% of the market, higher than its 13.8% share in the Nation. Source: AutoCount data from Experian Automotive.

Minnesota and U.S. Market Share - YTD 2013 thru April

1.3%

2.3%

2.0%

2.4%

1.9%

1.5%

1.4%

2.8%

3.1%

2.2%

3.2%

4.6%

3.6%

3.1%

2.9%

7.1%

10.3%

13.3%

10.8%

13.8%

0.8%

1.1%

1.1%

1.2%

1.9%

2.0%

2.1%

2.5%

2.7%

2.7%

3.4%

3.5%

3.8%

4.0%

4.0%

4.5%

7.7%

10.9%

16.5%

19.5%

0.0% 5.0% 10.0% 15.0% 20.0% 25.0%

Cadillac

Mercedes

Lexus

BMW

Mazda

Chrysler

Buick

Volkswagen

Jeep

Ram

Dodge

Hyundai

Kia

GMC

Subaru

Nissan

Honda

Toyota/Scion

Chevrolet

Ford

Market Share

Minnesota

U.S.

Chevrolet, Ford, and Subaru market shares in the state are well above U.S. levels. Honda, Nissan, and Toyota are lower in the state.

Minnesota and U.S. Market Share - YTD 2013 thru April

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MODEL SCOREBOARD

Ford Focus Gains Market ShareToyota Camry and Ram are also upThe two graphs below show market shares in the state car and light truck markets during the first four months of 2012 and 2013. Includes the top ten selling models for cars and light trucks. Data Source: AutoCount data from Experian Automotive.

MODEL SCOREBOARD

Ford Focus Gains Market ShareToyota Camry and Ram are also up

The two graphs below show market shares in the state car and light truck markets during the first four months of 2012 and 2013. Includes the top ten selling models for cars and light trucks.

Data source: AutoCount data from Experian Automotive.

Change in Market Share for Top 10 Selling Cars - YTD 2013 thru April vs. YTD 2012

Change in Market Share for Top 10 Selling Light Trucks - YTD 2013 thru April vs. YTD 2012

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

Ford Focus Toyota Camry Ford Fusion Chevrolet Cruze

Honda Accord Subaru Outback

Honda Civic Hyundai Sonata

Toyota Prius Chevrolet Malibu

Mar

ket S

hare

2012 ytd

2013 ytd

Focus, Camry, and Sonata market shares are up this year.

0.0

2.0

4.0

6.0

8.0

10.0

12.0

Ford F-Series Chevrolet Silverado

Chevrolet Equinox

Ford Escape Ram Honda CRV Toyota RAV4 GMC Sierra Ford Edge Ford Explorer

Mar

ket S

hare

2012 ytd

2013 ytd

Ram, Equinoix, and RAV4 market shares have increased.



MODEL SCOREBOARD

Ford Focus Gains Market ShareToyota Camry and Ram are also up

The two graphs below show market shares in the state car and light truck markets during the first four months of 2012 and 2013. Includes the top ten selling models for cars and light trucks.

Data source: AutoCount data from Experian Automotive.



0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

Ford Focus Toyota Camry Ford Fusion Chevrolet Cruze

Honda Accord Subaru Outback

Honda Civic Hyundai Sonata

Toyota Prius Chevrolet Malibu

Mar

ket S

hare

2012 ytd

2013 ytd

Focus, Camry, and Sonata market shares are up this year.

0.0

2.0

4.0

6.0

8.0

10.0

12.0

Ford F-Series Chevrolet Silverado

Chevrolet Equinox

Ford Escape Ram Honda CRV Toyota RAV4 GMC Sierra Ford Edge Ford Explorer

Mar

ket S

hare

2012 ytd

2013 ytd

Ram, Equinoix, and RAV4 market shares have increased.

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The accompanying table provides a comparison of results in both the Minnesota and U.S. markets. New vehicle registrations in the state improved 13.4% during the first four months of 2013, while the U.S. market increased 9.7%. Car market share in Minnesota was 9.3 share points lower than in the nation. Detroit Three market share in Minnesota was 54.4%, up slightly from a year earlier, and well above the 40.8% share in the nation.Source: AutoCount data from Experian Automotive.

MINNESOTA MARKET VERSUS U.S.

Increase in State Market is Higher than U.S.Detroit Three market share in state is 13.6 points higher than in the Nation



The accompanying table provides a comparison of results in both the Minnesota and U.S. markets. New vehicle registrations in the state improved 13.4% during the first four months of 2013, while the U.S. market increased 9.7%. Car market share in Minnesota was 9.3 share points lower than in the Nation. Detroit Three market share in Minnesota was 54.4%, up slightly from a year earlier, and well above the 40.8% share in the Nation.Source: AutoCount data from Experian Automotive.

Minnesota Market U.S. MarketMarket Growth% change in registrationsYTD 2013 thru April vs. YTD 2012

13.4% 9.7%

Car Market ShareCar share of industry retail light vehicleregistrations - YTD 2013 thru April

40.6% 49.9%

Detroit Three Brand Market ShareDomestic brand share of industry retail light vehicle registrations - YTD '13 thru April

54.4% 40.8%

Top Selling Retail BrandsTop selling light vehicle brands andmarket share - YTD '13 thru AprilFirst Ford 19.5% Ford 13.7%Second Chevrolet 16.5% Toyota/Scion 13.3%Third Toyota/Scion 10.9% Chevrolet 10.8%Fourth Honda 7.7% Honda 10.4%Fifth Nissan 4.5% Nissan 7.2%Sixth GMC 4.0% Hyundai 4.7%Seventh Subaru 4.0% Kia 3.7%Eighth Kia 3.8% Dodge 3.3%Ninth Hyundai 3.5% Jeep 3.1%Tenth Dodge 3.4% GMC 3.0%

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The accompanying table provides a comparison of results in both the Minnesota and U.S. markets. New vehicle registrations in the state improved 13.4% during the first four months of 2013, while the U.S. market increased 9.7%. Car market share in Minnesota was 9.3 share points lower than in the Nation. Detroit Three market share in Minnesota was 54.4%, up slightly from a year earlier, and well above the 40.8% share in the Nation.Source: AutoCount data from Experian Automotive.

Minnesota Market U.S. MarketMarket Growth% change in registrationsYTD 2013 thru April vs. YTD 2012

13.4% 9.7%

Car Market ShareCar share of industry retail light vehicleregistrations - YTD 2013 thru April

40.6% 49.9%

Detroit Three Brand Market ShareDomestic brand share of industry retail light vehicle registrations - YTD '13 thru April

54.4% 40.8%

Top Selling Retail BrandsTop selling light vehicle brands andmarket share - YTD '13 thru AprilFirst Ford 19.5% Ford 13.7%Second Chevrolet 16.5% Toyota/Scion 13.3%Third Toyota/Scion 10.9% Chevrolet 10.8%Fourth Honda 7.7% Honda 10.4%Fifth Nissan 4.5% Nissan 7.2%Sixth GMC 4.0% Hyundai 4.7%Seventh Subaru 4.0% Kia 3.7%Eighth Kia 3.8% Dodge 3.3%Ninth Hyundai 3.5% Jeep 3.1%Tenth Dodge 3.4% GMC 3.0%

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Below is a list of key trends in the Minnesota retail used vehicle market:

‣ Retail used registrations in the state increased a reported 27.7% during the first four months of this year versus a year earlier

‣ As shown on the graph below, the new vehicle market grew at a significantly faster pace than the used market in 2012, while both markets were up this year.

‣ The sharp decline in new vehicle sales for 2009 has led to short supplies of four year old vehicles, leading to the 9.5 market share point drop in four year old vehicle registrations.

‣ Used light truck registrations were up 28.7%, while cars increased 26.8%.

‣ Ford F-Series was the best-selling model in the state for vehicles three and four years old.

MINNESOTA RETAIL USED VEHICLE REGISTRATIONS-THREE MONTH MOVING AVERAGE (MAY ’11 THRU APRIL ’13)

RECENT RESULTS IN MINNESOTA USED VEHICLE MARKET

Minnesota Used Vehicle Heads Higher in 2013Used vehicle registrations increased 27.7% in first four months of the year

% Change in Retail New and Used Vehicle Markets


27.7%

1.9%

13.4%

29.5%

-30.0%

-20.0%

-10.0%

0.0%

10.0%

20.0%

30.0%

40.0%

YTD '13 vs. YTD '12

2012 vs. 2011

Used

New

MINNESOTA RETAIL USED LIGHT VEHICLE REGISTRATIONSYear to date thru April

Registrations % Change Market ShareYTD '12 YTD '13 '12 TO '13 YTD '12 YTD '13

TOTAL 85,438 109,137 27.7%

Cars 42,972 54,493 26.8% 50.3% 49.9%Light Trucks 42,466 54,644 28.7% 49.7% 50.1%

Detroit Three 61,647 77,485 25.7% 72.2% 71.0%Japanese 17,213 22,760 32.2% 20.1% 20.9%European 4,642 6,091 31.2% 5.4% 5.6%Korean 1,936 2,801 44.7% 2.3% 2.6%

0

5000

10000

15000

20000

25000

30000

35000 Trendline



Minnesota Used Vehicle Heads Higher in 2013Tight supplies and high prices should ease in 2013












27.7%

1.9%

13.4%

29.5%

-30.0%

-20.0%

-10.0%

0.0%

10.0%

20.0%

30.0%

40.0%

YTD '13 vs. YTD '12

2012 vs. 2011

Used

New



TOTAL 85,438 109,137 27.7%



0

5000

10000

15000

20000

25000

30000

35000 Trendline













27.7%

1.9%

13.4%

29.5%

-30.0%

-20.0%

-10.0%

0.0%

10.0%

20.0%

30.0%

40.0%

YTD '13 vs. YTD '12

2012 vs. 2011

Used

New



TOTAL 85,438 109,137 27.7%



0

5000

10000

15000

20000

25000

30000

35000 Trendline


• Retail used registrations in the state increased a reported 27.7% during the first four months of this year versus a year earlier.

• As shown on the graph below, the new vehicle market grew at a significantly faster pace than the used market in 2012, while both markets were up this year.

• The sharp decline in new vehicle sales for 2009 has led to short supplies of four-year-old vehicles, leading to the 9.5 market share point drop in four-year-old vehicle registrations.

• Used light truck registrations were up 28.7%, while cars increased 26.8%.

• Ford F-Series was the best-selling model in the state for vehicles three and four years old.

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Tight supplies of 2009 model year vehicles led to the 9.5 market share point decline for four-year-old cars and trucks during the first four months of this year (see graph below). Three-year-old or newer share increased. The recovery in new vehicle sales during the past three years will lead to increased supplies of nearly new used vehicles in 2013, which has been a contributing factor to the increase in used vehicle registrations. Source: AutoCount data from Experian Automotive.

USED VEHICLE SALES BY AGE

Four-Year-Old Vehicle Sales Declined Sharply Early This YearTwo and Three-year-old market shares improve

USED VEHICLE SALES BY AGE

Four Year Old Vehicle Sales Declined Sharply Early This YearTwo and Three year old market shares improve

Tight supplies of 2009 model year vehicles led to the 9.5 market share point decline for four year old cars and trucks dur-ing the first four months of this year (see graph below). Three year old or newer share increased. The recovery in new vehicle sales during the past three years will lead to increased supplies of nearly new used vehicles in 2013, which has been a contributing factor to the increased in used vehicle registrations.


Change in Market Share by Vehicle Age (vehicles six years old or newer)YTD 2013 thru April vs. YTD 2012

6 years old5 years old4 years old3 years old2 years old or newer0.3

-1.1

-9.5

5.1 5.2

-15

-10

-5

0

5

10

15

6 years old 5 years old 4 years old 3 years old 2 years old or newer

Chan

ge in

mar

ket s

hare

Change in Market Share by Vehicle Age (vehicles six years old or newer)YTD 2013 thru April vs. YTD 2012

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TOP SELLING MODELS

Ford F-Series is Best Seller for Three- and Four-Year-Old VehiclesImpala was the two-year-old or newer leaderThe graphs below show top selling models in two age categories: vehicles two years old or newer, and three- and four-year-old vehicles. Source: AutoCount data from Experian Automotive.

308

308

341

341

343

391

397

419

426

437

439

453

455

501

549

562

574

636

637

798

878

920

1059

1065

1122

0 500 1000 1500

Honda Odyssey

Mazda 3

GMC Sierra

Toyota Prius

Chevrolet Traverse

Volkswagen Jetta

Dodge Ram

Chevrolet Equinox

Honda Crv

Ford Edge

Nissan Altima

Dodge Caravan

Ford Focus

Chrysler T & C

Ford Escape

Honda Civic

Chevrolet Malibu

Honda Accord

Toyota Rav4

Chevrolet Impala

Ford Fusion

Toyota Corolla

Chevrolet Silverado

Toyota Camry

Ford F-Series

TOP SELLING MODELS

Ford F-Series is Best Seller for Three and Four Year Old VehiclesImpala was the two year old or newer leader

The graphs below show top selling models in two age categories: vehicles two years old or newer, and three and four year old vehicles. Source: AutoCount data from Experian Automotive.

Top 25 Selling Models (Two years old or newer)Used retail registrations, YTD 2013 thru April

Top 25 Selling Models (3 and 4 Year Old Vehicles)Used retail registrations, YTD 2013 thru April

331

331

332

340

395

411

412

451

473

529

579

664

679

688

723

748

762

770

815

891

918

1020

1043

1096

2843

0 1000 2000 3000

Dodge Avenger

GMC Sierra

Buick Enclave

Ford Explorer

GMC Acadia

Chevrolet Suburban

Volkswagen Jetta

Toyota Corolla

Kia Sorento

Nissan Altima

Ford Edge

Hyundai Sonata

Ford Focus

Chrysler T & C

Toyota Camry

Ford F-Series

Chevrolet Equinox

Dodge Caravan

Ford Escape

Chevrolet Traverse

Chevrolet Cruze

Ford Fusion

Chevrolet Silverado

Chevrolet Malibu

Chevrolet Impala



308

308

341

341

343

391

397

419

426

437

439

453

455

501

549

562

574

636

637

798

878

920

1059

1065

1122

0 500 1000 1500

Honda Odyssey

Mazda 3

GMC Sierra

Toyota Prius

Chevrolet Traverse

Volkswagen Jetta

Dodge Ram

Chevrolet Equinox

Honda Crv

Ford Edge

Nissan Altima

Dodge Caravan

Ford Focus

Chrysler T & C

Ford Escape

Honda Civic

Chevrolet Malibu

Honda Accord

Toyota Rav4

Chevrolet Impala

Ford Fusion

Toyota Corolla

Chevrolet Silverado

Toyota Camry

Ford F-Series

TOP SELLING MODELS

Ford F-Series is Best Seller for Three and Four Year Old VehiclesImpala was the two year old or newer leader

The graphs below show top selling models in two age categories: vehicles two years old or newer, and three and four year old vehicles. Source: AutoCount data from Experian Automotive.



331

331

332

340

395

411

412

451

473

529

579

664

679

688

723

748

762

770

815

891

918

1020

1043

1096

2843

0 1000 2000 3000

Dodge Avenger

GMC Sierra

Buick Enclave

Ford Explorer

GMC Acadia

Chevrolet Suburban

Volkswagen Jetta

Toyota Corolla

Kia Sorento

Nissan Altima

Ford Edge

Hyundai Sonata

Ford Focus

Chrysler T & C

Toyota Camry

Ford F-Series

Chevrolet Equinox

Dodge Caravan

Ford Escape

Chevrolet Traverse

Chevrolet Cruze

Ford Fusion

Chevrolet Silverado

Chevrolet Malibu

Chevrolet Impala

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www.mada.org32

BRAND MARKET SHARE BY VEHICLE AGE

Chevrolet and Ford are Leaders in State Used Vehicle MarketChevrolet has narrow lead over Ford for three- and four-year-old vehiclesThe two graphs below show brand market share leaders for vehicles two years old or newer, and for three- and four-year-old vehicles. Chevrolet, Ford, and Toyota/Scion were ranked first, second, and third in both age categories. Honda had a 7% share for three- and four-year-old vehicles, compared to 3.5% for vehicles two years old or newer.

BRAND MARKET SHARE BY VEHICLE AGE

Chevrolet and Ford are Leaders in State Used Vehicle MarketChevrolet has narrow lead over Ford for three and four year old vehicles

The two graphs below show brand market share leaders for vehicles two years old or newer, and for 3 and 4 year old ve-hicles. Chevrolet, Ford, and Toyota/Scion were ranked first, second, and third in both age categories. Honda had a 7% share for three and four year old vehicles, compared to 3.5% for vehicles two years old or newer.

Brand Market Share - Vehicle 2 years old or newerYTD 2013 thru April

Brand Market Share - 3 and 4 Year Old VehiclesYTD 2013 thru April

0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0%

Subaru

Mazda

Volkswagen

Jeep

Buick

Kia

GMC

Nissan

Hyundai

Chrysler

Honda

Dodge

Toyota/Scion

Ford

Chevrolet

0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0%

Subaru

BMW

Buick

Mazda

Saturn

Chrysler

Volkswagen

Pontiac

GMC

Nissan

Dodge

Honda

Toyota/Scion

Ford

Chevrolet

Brand Market Share - Vehicle 2 years old or newerYTD 2013 thru April

Brand Market Share - 3 and 4 Year Old VehiclesYTD 2013 thru April

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www.mada.org 33

Anyone in the auto business knows that location is huge – and

the caliber of your facility is almost as important.

For nearly 30 years, “Toyota City” had to deal with being just a little too far north of 694 and working out of a facility that wouldn’t rank high on anyone’s list. The frustration was made even greater because the product was fabulous. During those years, Toyota was becoming the world’s number one automaker.

All of that changed late in 2012. “Toyota City” became “Luther Brookdale Toyota,” sitting right at the exit ramp from 694 to Brooklyn Boulevard and opening its doors every day to a state-of-the-art facility of 6,500 square feet that has left customers pleased and amazed.

Once inside Luther Brookdale Toyota, guests find digital signage around the store, a spacious show floor, a large guest lounge with big screen TVs, freshly ground and brewed Starbucks coffee, a cappuccino machine, pastries, cookies and snacks, six personal TVs, individual work stations, and free Wi-Fi. The new store even has installed high-speed, overhead service doors that open in less than two seconds.

On the roof of the building are solar panels that provide 8% of the total energy that powers the new facility.

One thing the dealership had accomplished in

the old location was to build a service department with an incredible reputation. “Most of our service advisors and our service manager have been with us for more than 20 years,” noted General Manager Ron Murray. “The new facility makes the employees even better and more productive. The new facility has also been much more convenient for our guests because processes have become more streamlined and efficient. There is less waiting time for our service department or when guests purchase a vehicle from us,” Murray added.

Rudy Luther began as a family-owned business in 1952, and still is a family-owned business today. Community involvement has always been part of the equation. Luther Brookdale Toyota has helped produce more than one million meals for starving children, and provided support to Hennepin Community College, Brooklyn Park Public Schools and Brooklyn Park soccer leagues.

The Luther Brookdale Toyota dealership can only continue to get better with a beautiful new building in a new and better location. “Since the new facility opened, we have experienced tremendous growth,” Murray said. “We have increased our staff by 20% since our move.”

Beyond the new location and increased business volume, the new Luther Brookdale Toyota will provide the north metro with a trustworthy and enjoyable customer experience.

DEALERSHIP SHOWCASE

LUTHER BROOKDALE TOYOTA

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www.mada.org34

On the Western plains of Minnesota, nestled at the foot of the Red River Valley and near the Continental Divide where the rivers start flowing North, lies the comfortable town of Fergus Falls. A prosperous farming community, Fergus Falls is a big little town of 20,000 hardworking souls. MADA’s 2013 President Steve Brimhall is the third-generation dealer from this community, and the fourth generation is already working at his side. His Chevrolet Buick store is just finishing up a $1 million renovation and he is busy planning his summer events. But, he took time from his business and construction project to chat with MADA’s Executive Vice President Scott Lambert.

Happy to have the construction done?It was more of a remodel but yes.

Are you satisfied with the outcome and the process?The process seems pretty inconsistent. Some dealers have to do some things while others can get away with not doing the same thing. We got a few breaks with our remodel. And we’ve had a lot of compliments about the store now that it’s finishing up.

How’s your relationship with General Motors?It’s OK. I’m still mad about the circumstances of losing Cadillac during the whole bankruptcy/arbitration process. I’ll probably never get over it.

GM didn’t act very rationally. Well, they sure didn’t with us.

Tell me about your roots in the area?My grandfather started in 1922 with Chevrolet. He added Buick in 1924 and Cadillac in 1941.

Always in Fergus Falls?My grandfather also started the GM stores in Alexandria and Wadena. We eventually sold the Alexandria store to the Steinbrings and the Wadena store to the Hubers. The Wadena store is closed now.

Your Dad, Dick, was the dealer here for a long time.My grandfather died at only 60, but it was my Dad and my Uncle Bradford who partnered in the store.

How long have you been the dealer?I’ve been the dealer for 20 years, along with my cousin, Tom.

Family is important to you, correct?Well, I got a lot of them.

What about your children what do they do now?Matthew is working as a General Manager and Benjamin is the Internet Manager.

What about your daughter?Jessica is a professor of Biology and Chemistry at M State here in Fergus Falls.

So she’s the smart one?Yes, and she’s married to a professional comedian, Chad Daniels.

That must be interesting.It makes for some great 4th of July parties. He’s very funny. Carol and I are very lucky and happy the way all of our kids have turned out.

Fergus Falls has been good to you and your family?Very much, and we try to give back to the community every day. We’ve contributed to the new cancer center and hockey arena, and I think we’ve bought every scoreboard in town, not to mention Ducks Unlimited.

I’m a longtime DU member myself.I’ve been with DU for over 40 years and have held just about every position. We’ve got one of the biggest chapters in the state, and our Greenwing event is the biggest in the nation. We’ll have 600 to 800 kids here.

You like to Duck Hunt?I prefer pheasant hunting, but I’ve recently torn up my Achilles tendon and it’s hard to walk the fields right now.

What do you have for dogs?Two large Munsterlanders, eleven and three years old. They’re pointers.

Any plans to slow down?I have no plans to retire. I’ve recently taken up golf, but I love what I’m doing.

Industry Spotlight

STEVE BRIMHALL . MINNESOTA MOTOR CO.

President

MADA President 2013

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3253815R/7/12 Source: Omniture May 2012.

In Minnesota, Star Tribune rules the road. Over 3.2 million Minnesotans visit us online every month. And our

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Customers come standard.

Turbocharge your advertising. Call Steve Engelhart at 612-673-4950 or Tim Haley at 612-673-7026.

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