McKevitt Volvo Case Study

PUNCHING ABOVE THEIR WEIGHT How LotLinx has helped a scrappy Volvo dealer become #1 in its market

Casey TurnerGeneral ManagerMcKevitt Volvo San Leandro, CA

DEALER PROFILE

McKevitt Volvo serves shoppers in areas surrounding Oakland, CA from a single rooftop in San Leandro.

RESULTS May 2017*

VDP Views 1,067

Cost per VDP View $3.27

Vehicles Sold 16

Cost Per Vehicle $39.61

Inventory Turn Increase 176%

Holding Cost Savings $8,866

New Visitors 799

* Based on LotLinx data for for McKevitt Volvo

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As 2014 was coming to a close, McKevitt Volvo of San Leandro, CA found itself faced with a logjam of problems. To begin with, they had too many cars on their lot that just weren’t moving, and that problem alone would have been enough to cause serious headaches. But compounding the situation was the fact that there were no great new cars coming from Volvo under the ownership of the Geely Holding Group, a Chinese auto manufacturer.

Geely had purchased Volvo from Ford in 2010, more than 80 years after its founding in Sweden in 1927, and the cars they were turning out had yet to capture the attention of the car-buying public beyond die-hard Volvo loyalists.

The combination added up to a dealership that was forced to confront a hard fact – it wasn’t making any money.

Fortunately, McKevitt Volvo was about to see its fortunes change with the arrival, not of dynamic new models (although that would happen shortly), but a dynamic new GM.

BORN AND BRED IN THE BUSINESS

Casey Turner has automotive retailing in his blood. His family had a Volvo dealership in Sacramento for more than 50 years, and he cut his teeth selling Volvos and Nissans. However, the dealership was acquired by the Niello Group and turned into a Maserati Alfa Romeo store. Rather than remain in Sacramento, Casey, a college and NADA Dealer Candidate Academy graduate, had other things in mind – namely, the Bay Area and a great opportunity that was presented to him.

He was recruited to McKevitt in San Leandro by Fred and Shave Lavery. Their US Autogroup has dealerships

representing Porsche, Audi, Land Rover, Volvo, Volkswagen and Chrysler, Fiat, Alfa Romeo on both the East and West Coasts.

ADDRESSING SALES CHALLENGES

Casey says Volvo dealers, many of whom have been with the franchise “for the long term,” had been in hunker-down mode in recent years.

When he got to McKevitt, the store was averaging something on the order of 30 new car sales a month, and that was better than other Volvo stores that

were averaging just 10 or 11. But even so, the dealership wasn’t turning a profit.

Casey was mentored and challenged by Fred to get results, and that’s exactly what they did. They achieved record sales, and Lotlinx was a key component of the digital marketing strategy that helped fuel and sustain this growth..

FIRST WITH VDP VIEWS

Casey says he had become aware of LotLinx while he was still

in Sacramento. LotLinx was a trailblazer in helping dealers realize the importance of VDP views and their attribution to sales, and it was that capability that had first captured his attention.

“ LotLinx was the only vendor in terms of digital providers that I kept when I arrived here. We went from a dealership that sold 30 cars a month to one whose sales are now closer to 60.”

LotLinx | McKevitt Volvo | August 2017 3

NEW SHOPPERS DELIVERED TO THE WEBSITE

799

VDP VIEWS ON DEALERSHIP

WEBSITES

1,067COST

FOR EACH VDP VIEW

$3.27 VEHICLES SOLD

TO LOTLINX SHOPPERS

16

COST PER VEHICLE SOLD

THROUGH LOTLINX

$39.61

— SCORECARD: McKEVITT VOLVO RESULTS FROM LOTLINX - MAY 2017 —

“LotLinx had been on my radar with VDP views being kind of new in the automotive space. We were starting to read about it and talk about it, and LotLinx was the first company I was ever aware of to really operate in that space.”

When he joined McKevitt, his digital budget was, in his words, “conservative,” and he knew what he needed.

“I needed a digital partner like LotLinx that could help us bring people to our website and move specific vehicles faster. With inventory being kind of bloated,

it costs us $7 or $8 a day in holding costs. I knew if I could cut a week out of that time by using LotLinx, it was a no-brainer.’

A VOLVO MODEL THAT ILLUSTRATES LOTLINX’S VALUE

LotLinx was already being deployed by McKevitt before Casey’s arrival. Once he got there, he steadily increased his commitment. For a time, in fact, it was practically his only outside digital resource. He was especially appreciative of the fact that he could use

“ We literally had no activity on the XC90 T5 model whatsoever. It wasn’t until we used LotLinx to develop a campaign specifically for those cars that things started happening.”

LotLinx to target the cars he most wants to move.

“If I target a specific model, I know I’m going to have activity through LotLinx versus if I have that car listed elsewhere.”

To illustrate the point, he provides an example of LotLinx in action.

“Our best selling model was the XC90 SUV. We have a five-passenger and a seven-passenger version. The seven-passenger version has been relatively easy to sell, but the five-passenger, not so much. Sales of that model were flat.

“Sure enough, once I ran LotLinx campaigns targeting the car, they started moving. We’ve even had people from other states come to the dealership, and they were LotLinx-sourced leads. One of them even came from Texas to buy the car.

“We literally had no activity on the XC 90 T5 model whatsoever. It wasn’t until we developed a campaign specifically for those cars that things started happening.”

TURNING A CORNER, TURNING A PROFIT

There are a lot of reasons why McKevitt has thrived under

Casey’s leadership, and LotLinx is one of them.

“We’re a scrappy dealership that definitely punches above our weight class, and we have a great team. We worked hard at that, and the results just started to come in.

“When I arrived at McKevitt,” he recounts, “I knew this was going to be a huge undertaking given the slow pace of Volvo sales and the financial performance of the dealership. it’s been a blast to grow and recover from such difficult times.”

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LOTLINX: TRANSFORMING DIGITAL AUTOMOTIVE RETAIL

To set up a meeting with a LotLinx consultant, go to lotlinx.com/schedule For general information, call 1 800 625 LINX or visit lotlinx.com

LotLinx, Inc. 412 South Wells Street, Chicago, IL 60607

©2017, LotLinx, Inc. All rights reserved.

ON THE VALUE OF LOTLINX:

“WITH INVENTORY BEING KIND OF BLOATED, IT COSTS US $7 OR $8 A DAY IN HOLDING COSTS. IF I CAN CUT A WEEK OUT OF THAT TIME BY USING LOTLINX, IT’S A NO-BRAINER.”

INCREASED VEHICLE TURN WITH LOTLINX

176%

SAVINGS FROM REDUCED HOLDING COSTS

$8,866

— MCKEVITT VOLVO — MAY 2017