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General Motors and Cobalt Websites-The Big Rip Off and the Slow Deception

Hello John

Thank you for the post and the information and I have to say it is great to hear that someone is doing well with the cobalt site. If you notice at the begining of my post I said GM and Cobalt had a great idea but with major faults built in. I had a good pro care advocate and was always very helpful.

I have come up with a marketing stratagy as you have suggested and Cobalt gets in my way. I am not complaning as you suggest but pointing out the fact that GM and Cobalt has lied to the dealers and continues to direct consumers away from our website that we advertise for, I believe you have not read the article or understand its content and you need to understand that I have a huge amount of respect for not only GM but also for Cobalt as they have a huge amount of experience etc to offer "some" dealers. Other dealers that have been aggresive on the internet have other " marketing plans" that do not include Cobalt, simply said Gm should not push a website provider on its dealers that have that "marketing plan" in place nor should they place a PPC campaign using a dealers name when they have been asked not to. I want the Cobalt site for one reason and that is to get the link from Chevy.com to a website for Jim Glover Chevrolet.

Thanks for the response. It is good to see another point by a dealer that is successful with a marketing plan utilizing a Cobalt website.

Frank Davis

General Motors and Cobalt Websites-The Big Rip Off and the Slow Deception

Frankly, all the website companies are the same in certain aspects. I think it really comes down to their conversion ratio or the traffic to the site being converted into leads, either phone calls or emails. We personally have a Cobalt website through GM, and we have the upper package with the search. We have gotten great results in the past 8 months. Our "procare" person is awesome and always helping us with specials and going over our reports and constantly helping us with our online strategy. The search that GM does for their dealers are on 3 tier levels. The first pushes back to GM. The second pushes back to a DMA landing page. The third pushes back to the dealer and is triggered by name and location of the dealer. I think this is a good thing that GM is looking out for us and spending our money digitally. As far as doing additional search with Cobalt, it has more than paid for itself. Unlike other companies I have used in the past, they actually come up with a strategy and have someone running my campaigns rather than just flip a switch and spend my money. We can sit here and bash GM and Cobalt or any other OEM or website provider all day long, but at the end of the day, most of the OEMs are moving towards this and if you ask GM and the dealers out there, it has greatly produced results (even for some of us that have been doing this for a long time). Frank, it seems as though you really have a bug up you about GM and Cobalt. I understand that some dealers want their freedom of choice, but most make the wrong decisions. Coordinating efforts gives us better pricing and more value. I love Cobalt and what they have done for my dealership. Best of luck to all of you. Instead of complaining and complaining, come up with a marketing strategy that works for you, use your procare person (the 299 a month is well worth it), and sell some cars. The squeeky wheel gets the greese, but sometimes it gets replaced. Happy Selling!

General Motors and Cobalt Websites-The Big Rip Off and the Slow Deception

I want to thank everyone for all the positive responses and support you all are a huge part of the automotive marketing world we all live and play in. I received an e-mail from GM today which wants me to push that much harder, I believe most of you realize the importance of what I have been talking about in regards to the monopoly and the direction we are headed as having rules stuck in front of us and not being able to make the choices we see best for our dealers etc. Here is part of the e-mail I received minus the name of course.

Frank,

I have ran this issue down through both Cobalt and the Director of the IMR program at GM. The bottom line answer is that IMR program will continue to include the Cobalt website and a basic level of paid search advertising for that site. Modifications to those offerings will not be allowed under the IMR program.
I understand this not the answer you were looking. xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx. However, I have received very clear direction from Detroit on this matter and do not expect a change.


I have done my best to inform and give my best analogy of the situation I see as detrimental not only to our advertising but our actual ability to make choices that effect the way we make a living.

Frank Davis
918-520-6777

General Motors and Cobalt Websites-The Big Rip Off and the Slow Deception

You can add Volkswagen and Audi to the list of manufacturers who require their dealers to have a Cobalt web site in order to receive leads from the manufacturer.
The manufacturers should worry about their own web sites and allow their dealers to be creative with their own. If someone goes to audi.com and asks for a quote, that quote should go to the nearest dealer regardless of what web site provider he has chosen to do business with.
I suppose that a few years ago when we all started to realize how important a web site would be, it perhaps made some sense for the manufacturer to want to dictate dealer web site content and appearances...after all, the manufacturer had more money and resources to make good decisions on behalf of their dealers.
Today, though, I think I can make the case that perhaps most dealers are smarter than GM, Ford, Chrysler etc., all of which are setting new records for poor performance.
Maybe the dealers are actually capable of making their own web site decisions now?

General Motors and Cobalt Websites-The Big Rip Off and the Slow Deception

Great post. I liken this to going into a Chevy dealer tomorrow and all you can choose from is the Malibu. They stopped making every other vehicle because GM felt that was the best choice for customers. You can complain about it all you want but you'll still end up driving home in a brand new Malibu. Just hope they made it in multiple colors!

General Motors and Cobalt Websites-The Big Rip Off and the Slow Deception

Just stumbled on this post and thought I'd chime in with some of my own comments.

First off, I think its an enormous mistake to punish dealers with ambitious internet programs. Clearly, Cobalt's solution was to get dealers on the internet. However, if you're serious about your internet program you realize that Cobalt can only get you so far.

And it's not just GM. Scion has an agreement with Reynolds. Chrysler has a deal with Dealer.com, etc., etc.

These companies can't be everything for everyone. A dealerships internet program requires a great deal of attention that Cobalt, Dealer.com, nor Reynolds can handle.
Things will move to the edges a bit more and I think the overall shopping experience will improve for consumers online.

General Motors and Cobalt Websites-The Big Rip Off and the Slow Deception

I think it is good for the OEMs to mandate certain things on a dealer's website.

But I think this is best done the way Toyota, Honda, Nissan and others do. They review the sites based on certain requirements and the dealership gets in trouble if their site does not comply. They don't FORCE any particular vendors or special secondary websites.

General Motors and Cobalt Websites-The Big Rip Off and the Slow Deception

How does Frank Davis sit down?

Seriously.

Think about it for a second.

How do you sit down with balls the size of spring ripe southern Canteloupes?
You know those big ones the grocer adds another 30% price too from standard, anyway... i digress.

Everyone thank Frank for being upfront and sharing his knowledge which is extremely valuable for us all.

Frank's the man.

General Motors and Cobalt Websites-The Big Rip Off and the Slow Deception

I can understand why GM started the program in the begining, but by now any dealer that would not be able to adequately handle theirselves with an online presence probably won't ever be able to. Why not let them weed theirselves out? I have a deep seeded loathing for Cobalt, and want to pull my hair out everytime I have to call ECare for anything. We have so much trouble with our Cobalt sites.. All of the cars were marked with manual transmissions for awhile, we changed the company that sent the feeds for our inventory, and it took two months for everything to show up properly. One hand has no idea what the other one is doing!!! I do miss having an advocate to make changes for me, but I just couldn't see paying $900 a month for something I can do myself....

General Motors and Cobalt Websites-The Big Rip Off and the Slow Deception

I'm hoping my competition continues to use Cobalt wesbites. They are ineffective in converting customers and have weak tracking/reporting. I have the free site (with no $299/mo advocate support) so I get links from chevy.com. The only 2 problems I have with the whole deal, is not getting a link to my own wesbite and I'm competing with Cobalt PPC campaigns driving the bids prices up.

General Motors and Cobalt Websites-The Big Rip Off and the Slow Deception

Thank you for the posts. Understanding GM had to many dealers not paying attention to internet marketing. They did have to do something I agree. Having one website company on board to lower costs, I agree, but to trick everyone into a free website and actually charge for it? Please lets give it up for "free" if you are going to use that term, not charge it to the advertising funds on the invoice. Also when you have aggresive dealers do not redirect them to a website they are not advertising for, do not steal from a dealer doing everything they can to market on the internet. But most of all do not lie to the dealers that are making it work. It was a good idea I believe they just got off track and imposed rules where they didnt need to be. Also they needed onsite training. an experienced trainer should have visited every dealer to evaluate and discuss the marketing on the internet. One size does not fit all as a matter of fact if its to tight you might just kick it off.

Frank

General Motors and Cobalt Websites-The Big Rip Off and the Slow Deception

Frank - great post! I love it on 3 levels:

1. It strikes home with other brands we do carry, so I can relate - MINI, VW, Audi, Porsche
2. CoBalt is the worst site provider, of the big ones, in the automotive arena - I'd rather pay for something else than take their freebie
3. The more of us complaining about these stupid OEM sites, the better!

I think we need to have an article that talks about all the OEM sites and where they're wrong. Something we can refer our OEM's to when they ask our opinion on things.

General Motors and Cobalt Websites-The Big Rip Off and the Slow Deception

Frank, I sense your frustration... I would venture to offer this. I believe much of the reason that GM started with the mandatory Cobalt sites was to bring a lot of GM dealers into the "modern era", as there were still LOTS of GM dealers that had not grasped the importance of the Internet yet. I can tell you in my area that at least one GM dealer had a website that one of their employees put up on their own because the owner didn't see any value in the Internet (and it was not a good website...). There were lots of GM dealers with no websites, or very poor websites across the country. This approach by GM brought some standardization across their brands and got dealers to get "onboard" with the Internet.

In GM's defense, I have seen a tremendous improvement in their emphasis on being aggressive and good on the Internet. I work with 15 brands, and I would place GM in the top 3 brands for OEM support for the Internet.

With all that said, we still have separate websites for our GM stores, and keep the Cobalt one for the OEM link (I agree, you must have). I also agree that the pay per click using the dealer name for the search terms makes no sense (but makes lots of dollars for the vendor hosting the ppc...). In a perfect world, we could have our own websites linked to GM's sites - but I would imagine that GM would want some requirements met (fair enough) to ensure quality for all of their stores....

General Motors and Cobalt Websites-The Big Rip Off and the Slow Deception

Umer,,,,,You can still have the "free" website with Cobalt. You do not however get the support person unless you pay the 299.00 fee they implemented at the first of the year, They sent out a memo with a bill attatched charging the 299.00. If you choose not to pay the charge then they will still keep the website up and give you the "free" pay per click advertising using the name of your dealership redirecting to the Cobalt website. You can get support from Cobalt if you are not paying the 299.00 but they claim you lose more than you gain, huh?

Another idea was to up sell other services and products once the dealer is on the "free" website and I am sure it has worked. Brilliant plan as I had said give em free stuff but really charge them for it, then up sell the real good stuff, Great plan, awesome monopoly.

General Motors and Cobalt Websites-The Big Rip Off and the Slow Deception

I agree with you Frank, I was working at a GM dealership when they started pushing the free website from Cobalt. I was in the process of getting a Dealer.com website put in place and had to justify spending $900 versus the free site. We had a management meeting to compare the two websites side by side, by the end of the meeting they had decided that while losing the links was a negative, they would still rather go with the Dealer.com site because the look, feel, and navigation were much better than the options that were available from Cobalt at that time.

A dealers website is a major part of their online presence and they should be able to decide who they want to use, they shouldn't be told "use our piece of crap or you won't get our links".

General Motors and Cobalt Websites-The Big Rip Off and the Slow Deception

I do not want to share my name because who knows what the repercussions could be if someone at GM saw the reaction. However, you hit the nail on the head!! The only thing MORE WASTEFUL than IMR is the LMA and that would take another 2 page article! Let the dealers do what they do best. QUIT getting in bed with VENDORS!!!!

General Motors and Cobalt Websites-The Big Rip Off and the Slow Deception

This posting has been removed.

After a deep conversation with Frank, I have decided to remove his post from DealerRefresh. It really sirred up form shit and at the end of the day I would never want anyone to loose their job. I have asked Frank to write a quick retraction request which you can read below.

If you're familiar with the post, please continue to comment (please keep your comments clean and respectful though ;) )

Jeff, Alex an the rest of the DealerRefresh community;

I appreciate your support, I have been watching my post and I am asking that you remove it for a couple of reasons. First of all I have a huge amount of respect for General Motors and Cobalt websites. In our current economic situation I think it would be a benefit to support the manufacture. I also have a huge respect for the dealer I currently work for and I would not want any bad press for this or any dealer just because of my own personal opinion. I appreciate your cooperation in removing my article from DealerRefresh. After review The GM and dealer principle at this store disagree with my opinion and are 100% on board General Motors marketing plan.

Thank you

Frank Davis

EasyAutoSales.com Integrates with Facebook Connect

EasyAutoSales.com Integrates with Facebook Connect and Launches Community to Help Auto Dealers Engage Car Buyers Online

ATLANTA, Georgia, EasyAutoSales.com, America’s fastest growing consumer driven automotive resource is now integrated with Facebook, the largest social network on the Internet. The launch of the new EasyAutoSales Community allows car buyers, car dealers and car enthusiasts to interact online and create a user generated resource for buying new and used cars.

“93% of consumers are researching online and reading peer reviews weeks or months before they browse classified listings,” said Wei Yang, CEO of EasyAutoSales.com. “Educated consumers want to be informed and our Community allows car buyers to engage car dealers and car experts throughout the course of the buyers’ research.”

The EasyAutoSales Community allows users to ask car questions and contribute answers, share vehicle pictures, and post YouTube videos within the online discussions. All relevant activities are linked to the 2 million+ vehicle listings on EasyAutoSales.com. As consumers shop on EasyAutoSales.com, buyers will be able to get the buzz on what people are saying about different make and models.

“One of the biggest concerns with buying used cars is whether there will be major problems with the vehicle after the purchase,” said Will Fleiss, co-founder of EasyAutoSales.com. “If maintenance issues, repairs and complaints are the most popular discussions for a specific make and model, car buyers will be able to easily identify these troublesome vehicles and avoid them.”

In addition to launching the interactive Community, EasyAutoSales has integrated with Facebook.com through Facebook Connect to allow open access to the EasyAutoSales Community for the 175 million+ Facebook users.

“Our goal of integrating EasyAutoSales with Facebook is to allow car sellers to reach a greater audience with their online inventory while allowing car buyers to tap into the wisdom of their existing social network for general car advice,” says Fleiss. “You may want a particular car or truck and not realize some of your friends (or their families) already own it. We want to make online car shopping more transparent and interactive so car buyers can get the real scoop from their friends.”

For more information, please check out http://www.easyautosales.com/community

About Easy Autos, LLC (www.easyautosales.com)
EasyAutoSales.com is America’s fastest growing, consumer driven automotive resource for buying and selling cars. EasyAutoSales encourages consumer education and promotes interaction between car buyers, car dealers and car experts. The website now lists over 2 million vehicle listings from 25,000 dealerships and private sellers. EasyAutoSales.com provides free syndication, video and unlimited pictures for all vehicle listings. Private sellers and dealerships are encouraged to advertise their vehicles for free on EasyAutoSales.com for increased online exposure. To add your vehicles or your dealer inventory to EasyAutoSales.com, contact [email protected] for more information.

TK Carsites Enters Into License Agreement with ContactAtOnce!

TK Carsites Enters Into License Agreement with ContactAtOnce!™ to Enable Auto Dealer Live Chat on Websites

Customers Benefit from Improved Conversion of Website Traffic into Auto Sales

ContactAtOnce!, a leading provider of car dealer internet marketing tools that move online shoppers into live conversations with car dealers, today announced a licensing agreement with TK Carsites, a leading provider of custom auto dealer websites optimized for search engines. Under the agreement, TK Carsites will pre-integrate the ContactAtOnce! Dealer Chat solution with their dealer website platform and offer the combined solution to new and existing TK Carsites customers. ATLANTA, GA – March 4, 2009

Since we started using ContactAtOnce!, our dealership has seen a measurable improvement in the number of website visitors that come in for appointments and ultimately buy vehicles,” said Brian Chapman, general manager of Homer Skelton Ford. “Our customers seem to like the convenience of live chat and the ability to interact with a sales person immediately.”

“TK Carsites built a reputation as the best website provider in the industry through our unique custom automotive websites,” said Richard Valenta, CEO of TK Carsites. “Recently we introduced a new offering, TK5, that maximizes search engine optimization (SEO) and improves site traffic, but traffic alone isn’t enough for our customers – the “clicks” need to become appointments and that’s where the ContactAtOnce! live chat solution adds unique value.”

ContactAtOnce! powers graphical elements such as "drop-in business cards" on a dealership’s website, microsites and landing pages that appear if a sales person is available at the moment a site visitor is looking at a car. Site visitors are offered a variety of ways to contact the dealer, including chat, click-tocall, and a phone number. The graphical elements, combined with the availability of multiple convenient communication options, have been shown to increase the number of shoppers that initiate contact with auto dealers by at least 25 percent. ContactAtOnce! tracks and records all conversations, making it easy for sales managers to measure the effectiveness of car marketing and to conduct sales training. ContactAtOnce! dealer chat is simple to use and designed specifically for sales people who are notalways at their desks.

“TK Carsites helps their customers build and tune websites to attract optimum traffic and once visitors
are on the site, ContactAtOnce! Dealer Chat helps convert more of them to leads and sales,” said John
Hanger, president & CEO of ContactAtOnce!. “The combination of our products with their platform is a
win-win for TK Carsites customers who want to maximize the effectiveness of their website.”

The TK Carsites-ContactAtOnce! dealer chat solution is available from TK Carsites immediately.

About TK Carsites
TK Carsites, Inc. is a marketing and technology services company providing online solutions to automotive retailers. Currently they offer their 1,000+ automotive dealer clients consumer friendly websites, email and search engine marketing programs plus numerous interactive and rich media campaigns and lead generating tools. www.tkcarsites.com

About ContactAtOnce!
Contact At Once!, LLC is a leading provider of internet marketing tools for automotive sales, apartment leasing, and other industries where consumers conduct research online before visiting a dealership or office. The ContactAtOnce! service typically moves at least 25% more website visitors into live conversations with sales people by utilizing a suite of technologies such as presence, IM/chat, VoIP telephony, video chat and text messaging, resulting in increased revenue and a better return on marketing expenditures. ContactAtOnce! is the only solution with features specifically for vertical search websites and over 35 such sites, along with thousands of merchant businesses, are using it today. www.contactatonce.com

FEBRUARY TRAFFIC ON AutoTrader.com SHOWS Hyundai’s Assurance Campaign Pays Off

The mainstream word is "PROACTIVE", dealers need to look at what they DO have (and Not what they don't have) & use to their advantage. Dig down Mr. Dealer, "what separates you from other dealers" Then RUN with it, be positive, be a winner. People are buying cars, make them want to buy them from YOU!

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