P&A Online

August 9, 2010

Welcome to P&A Online, a monthly eMagazine dedicated to the interests and concerns of providers and administrators of automotive finance and insurance products.

P&A Online is your source for industry news and updates as well as original feature articles to keep you well-informed of best practices and trends.

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Integrating Social Media as Part of Your Marketing Mix

It’s difficult to miss the transition that offline and online marketing is undergoing right now. And while it’s in vogue to discuss the decline of traditional marketing, traditional marketing isn’t alone in facing stiff competition for budget. Recently, Ben & Jerry’s informed e-mail subscribers they would no longer be receiving a newsletter but should instead connect … Read More »

LLPW: A Good Concept that Hasn’t Gotten Far Off the Ground

In the early 2000s, manufacturer warranties were 36 months or longer and some manufacturers had begun to extend the base warranty further but limited the extended protection to the powertrain parts. The original Limited Lifetime Powertrain Warranty (LLPW) concept was developed primarily for the Japanese makes. At that time, Toyota and Honda dealers were trying to … Read More »

Software App Solves Industry’s Diverse, Ongoing Integration Needs

In June, P&A Magazine published an article titled “The Integrated Industry: Software Fact or Fiction?” which outlined the industry’s longstanding challenge of integrating various mission-critical software applications with the typical dealership management system (DMS). Sharing data with the DMS is an important requirement for providers of F&I products, and streamlining this process ensures accurate data, fewer … Read More »

VSCAC to Feature the Untold Story of US Fidelis Debacle

The collapse of US Fidelis will take center stage at this year’s Vehicle Service Contract Administrators Conference, as attendees will hear the untold story about the company that symbolized the direct-to-consumer movement for F&I product sales. Occurring on day one of the conference – scheduled for Sept. 14-15 at the Paris Las Vegas hotel and casino, … Read More »

Ally CEO Expects IPO in Late 2011

Ally Financial Inc. is on track to launch a public stock offering late next year, and reported a net profit of $565 million in the second quarter on higher revenue and better operating results, The Detroit News reported. Ally CEO Michael Carpenter, who took over in November, said Tuesday the Detroit-based bank holding company and ... Read More »

AUL Corp. Appoints Jimmy Atkinson Chief Operating Officer

NAPA, Calif. – AUL Corp., a national provider of used-car service contracts, has hired Jimmy Atkinson as chief operating officer and senior vice president. In announcing the appointment, Luis Nieves, president and CEO of AUL Corp., said: “We were determined to introduce someone to the company with a strong history of excellence in leadership, but also ... Read More »

Ally Eases Credit Threshold for Chrysler Leases

DETROIT – Chrysler Group got a boost this week when Ally Bank, the former GMAC, lowered its credit-score threshold for Chrysler customers to qualify for a vehicle lease from 660 to 620, reported Automotive News. The move by Ally, Chrysler’s preferred finance provider, broadens the pool of lease customers. A 660 FICO score is on the ... Read More »

Virginia Surety Achieves BBB’s A+ Rating and Accredited Business Status

CHICAGO – Virginia Surety Co., a unit of The Warranty Group, Inc. and an accredited business of the Better Business Bureau, has achieved an A+ rating for its proven record of trustworthiness and ethics in its customer-related business practices. “Being accredited with the BBB shows that Virginia Surety is committed to our strict code of business ... Read More »

Report: Ford Aims to Win Back Investment Grade Rating

Ford Motor is planning to win back its investment grade credit rating that it lost in 2005, The Wall Street Journal reported, citing people familiar with the situation. Ford, the only U.S. carmaker that did not receive a government bailout during the financial crisis, aims to get back the investment grade rating in 2012, or by ... Read More »

Chrysler Narrows Q2 Losses to $172M; Sales, Revenue on the Rise

A year after emerging from bankruptcy protection, Chrysler Group LLC said Monday that growing car and truck sales helped it narrow its second-quarter loss to $172 million, The Associated Press reported. The U.S. and Canada are Chrysler’s primary markets, and both have seen increased demand for cars and trucks since a recession-related slump last year. Chrysler ... Read More »

Many Mercury Dealers Hold Off on Settlements

Many Mercury dealers are reluctant to sign their settlement deal with Ford Motor Co. because they want larger payments, Automotive News reported. Some dealers and their lawyers say the reluctance to sign points to a rocky wind-down of Mercury. Lawsuits are possible, and negotiations between many dealers and Ford are certain. Many dealers aren’t sure ... Read More »

Governments Help Ford Cut Debt

Ford Motor Co. is getting help from the U.S. and other governments around the world as it races to slash its debt and boost its credit rating—an ironic position for the only U.S. carmaker that didn’t receive a government bailout last year, reported The Wall Street Journal. Ford Chief Executive Alan Mulally and Chief Financial Officer ... Read More »

Healthy Ford Pays Back its Chairman

Ford Motor Co., in another sign of its financial comeback, is writing Executive Chairman Bill Ford Jr. a big paycheck to make up for some of the five years he declined to take a salary, The Detroit News reported. The automaker announced Friday that Bill Ford will get $4.2 million in salary and stock options ... Read More »

F&I Magazine to Kick Off Annual Summit With Agent-Only Event

LOS ANGELES — The 7th annual F&I Conference and Expo has added a symposium exclusively for automotive general agents. The event will take place prior to the opening of the F&I Conference and Expo on Monday, Sept. 13, at the Paris Las Vegas Hotel and Casino. Understanding that general agents are a critical extension of most ... Read More »

GM CEO Expects to Sell All Stock in 1 Batch

TRAVERSE CITY, Mich. — Eager to get out from under government control, GM expects to sell its stock in one swoop when it offers shares to the public sometime later this year, its CEO said Thursday. Some experts had expected General Motors Co. to sell only a partial stake at first, followed by several smaller ... Read More »

Whitacre Says 1,000 U.S. Dealerships Will Get Makeovers

TRAVERSE CITY, Mich. – General Motors Co.’s U.S. dealers are in the midst of the largest dealership facilities makeover in the company’s history, CEO Ed Whitacre told the CAR Management Briefing Seminars. He said 300 dealerships have been upgraded this year and 1,000 will have completed upgrades by year end, Automotive News reported. He also said GM ... Read More »

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