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It is not a surprise to anyone that we are going through an economic slowdown. I am pretty sure that everyone got that memo. Instead of looking to blame some government entity for our day to day struggles why don’t we change the future?

One thing that we know especially well in the auto industry is this: ‘What worked in the past will not necessarily work in the future.’ So what then can we do? Any person or small company able to think outside the box will quickly adapt and find solution to change the future. One example that comes to mind now is Hyundai. They are now offering virtually no risk financing. If you lose your job they make your payments for 3 months. If in the first year you are not able to make payments anymore for one reason or another, they will take the car back. This is one example of a company that was able to capitalize on a bad economy. People wanted security when buying a car and Hyundai delivered.

For those that are willing to look you will see companies changing and evolving. Those that refuse to change will find themselves out of business. We are part of a country and a world that is hungry for innovative ideas that make our lives simpler and easier. Don’t believe me? Business people everywhere use to carry around a day planner and a phone. Then we evolved, people started carrying around a palm pilot and a phone. Now what are we doing? Exactly we are carrying around smart phones, and they are changing the way the world communicates. This is why companies such as Apple, Blackberry, and HTC are leading the communication race.

The wise old robot Bigweld in the Disney movie Robots said this: “See a need, Fill a need”. I would encourage all to take this advice. It is within all of us to change our situation, not some government entity.

“In the middle of difficulty lies opportunity.” Albert Einstein

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Automotive, News & Updates, Uncategorized change, Economy, innovation

As Americans we have been through some pretty tough times recently. What makes us Americans is our ability to keep going through the tough times, and keep our sights set on brighter futures. So while we watch government try to fix the economic mess, let’s look at some of positive signs that the economy is improving.  

Last week GM (General Motors) announced that they would not need the additional $2 billion loan from the government to make through the rest of March. This is a positive sign as the automaker has till March 31st to prove to the government that it is still viable. Auto sales for GM (while still down from a year ago) were up 23 percent last month compared to January. These are trying times, but they seem to be improving. This is great news for the huge number of Americans that work in the automotive industry.

Leaving the automotive arena for a while let’s take a look at what is turning out to be a big scandal, AIG bailout bonuses. When I first saw this story on the news I was shocked, we as the taxpayers have given AIG billions of tax dollars to recover from their own poor business practices, and they plan on spending $165 million on executive bonuses. Maybe it is just me, but every company I have ever worked for only paid bonuses at times of profitability. Come on, if your company is in the shambles and at the brink of going under how do you sleep at night paying over a hundred million dollars of taxpayer money to your executives? It is this blog posters opinion that this is one company that should not have been bailed out.

Ok, that was enough rant! The economy appears as a whole to be on the upswing, and the recent rally on Wall St is a good sign. America needs to regain consumer confidence so cash can get flowing again. If companies new and old restructure to be more efficient, we will make it through this economic battle with a some casualties, but few fatalities (companies not people).

So what is your opinion? All are encouraged to leave a comment on any of our blog posts.

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Automotive, News & Updates AIG, Auto Industry, bailout, Economy

January 24th 2009 marks the opening of the NADA (National Automobile Dealers Association) show. This year the show will be held at the Morial Convention Center in New Orleans. There are an estimated 520 booths that will be at the show this year. This is down a bit from last year which is understandable because of the state that the industry found itself at year end.

The theme of the show this year is ‘Voice of the Dealer® … Committed to Community.’ This should be an excellent convention full of insight and opportunity for all that attend.

The Auto Dealer Improvements team will be onsite at the show and would love to meet with all who would like to spend some time and get to know us. We will be sharing the success of our product MyObsoleteParts.com and showing the dealers how they can discover and unlock new streams of revenue to propel them into the future. 

To set up a meeting click on the link below and fill out the contact form. We will then get a hold of you and set up a time. We look forward to seeing you there.

Nada Meeting Contact Form

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As I reflect on the past year I am tempted to not reflect on the big bad state of the USA automotive industry. I have chosen for this blog post to look into the future, and see what great things will come to pass in the year 2009. 

The first and biggest thing not related to the auto industry is the change in the presidency. Though not all of us voted for president Obama I think we are all interested and excited to see what he can bring to the table as the leader of our nation. I for one have high hopes that the Obama administration will be able to correct the course of the economy. I especially would like to see this affect the lives (in a positive way) those that are involved in the automotive industry.

My thinking has brought me to this; I believe a turnaround in the industry will start around midyear. I believe the beginning of the year will be geared toward corporate restructuring, and will flow all the way down to the day to day operations of the car dealerships. I think we will see the large corporations that have dominated the industry for so long become sleeker and more efficient. There will be many new companies that will also show up, and have a huge impact on the way the industry operates, and this will help develop new and untapped streams of revenue. This in turn will aid in the creation of more jobs. Many of the people displaced by corporate downsizing will now find there traction in new companies that are shaping the future of our industry and our nation.

I would like to invite all the readers out there to share their opinion just as I have shared mine. One of us has to be correct, or close to what the outcome will be for 2009.

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Automotive Auto Industry, Economy, Presidency

History has shown us that automotive dealers are slow to bring on and adapt to new technology. Currently there are dealerships in the United States that do not use a DMS (Dealer Management System) provider. Yes, you heard me correct, these dealers hand write everything. However this is not the norm, most dealers run a dms system to keep their business running smooth. I am not here to touch on this so much as I want to talk about other aspects of technology that could really help the dealers in today’s market increase their profit margins.

Dealer Management Systems have been around the industry for almost 40 years now, and this has led to them being used in almost every dealership. The internet on the other hand has only been in the mainstream for about 10-15 years. Find me a dealer that has a web-site and you are going to find thousands. Find me a dealer that uses the internet effectively and you will get probably less than 50. I am not saying that dealers do not have helpful sites full of content for potential buyers to sink their teeth into. I am saying that most of these websites cater to the selling of vehicles and leave little to the real money maker for the dealer, the parts and service departments.

Dealers have spent all kinds of money developing great websites. Most are created by a hand full of companies that specialize in dealer websites and do a terrific job. The next time you click on a dealer’s website find the link to the parts department. 99 percent of the parts sites are a form for the customer to fill out a request and then a dealer representative will contact them. This is a major turn off to an end consumer. In a time when they can get everything here and now, they want everything here and now.

According to a study only 2% of parts inventories are exposed on the internet. This is not just OEM parts, but all the aftermarket parts as well. This number is a fraction of a percent when talking about OEM parts. Up until now, there have been limited solutions that were cost effective and easy to use. That time is now past as there are companies that provide services to people wanting to list inventories.

Auto Dealer Improvements has launched the first strike to get dealership parts inventories listed on the internet. Myobsoleteparts.com is an excellent and inexpensive tool for the dealers wanting to increase revenue and embrace the technology of the internet.

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In the midst of the biggest automotive crisis of all time, dealerships now more than ever are finding themselves stuck with idle inventory. Some may be using dealer to dealer programs and inventory swapping to help each other gain inventory that is more sell-able in their markets.

One of the biggest and most appealing trends happening in the dealerships, is the concept of liquidating the inventory by selling it off to a wholesaler for 50 cents on the dollar. This is if you let the buyer pick and choose what they want to purchase. If a dealer wants to get rid of everything and does not allow the pick and choose method they will be lucky to get somewhere between 10 and 20 cents on the dollar.

I can see why a dealership facing possible shutdown would be tempted or even required by the owner to take these measures to free up as much cash as possible. However unless in dire need I am not a fan of these cash discovery or inventory liquidation programs. Think about it for a minute, if the inventory is just sitting there and not really hurting you why not find a way to sell it for a profit? There are different methods out there to get this done. Here is a short list of options:

* Amazon.com
* eBay Motors
* MyObsoleteParts.com

Here are the three biggest players out there (in no particular order).

Amazon.com is getting into the automotive parts market. Currently most of their automotive clients are after market suppliers, but Amazon encourages dealerships selling OEM parts to sign up. Amazon charges $40 per month for their basic package and 12% of the revenue for each part sold. It also will need to be maintained closely by a member of the dealership staff to make sure inventory is up to date.

ebay Motors as we all know is huge. They sell a very high number of parts and accessories both OEM and after market. This also requires the dealer to manage this to make sure that everything is up to date. There are a number of third party companies out there that can help you streamline your listings onto eBay to make it less time consuming for the dealership. eBay runs on a listing fee for each listing, and then adds a charge based on the selling price of the parts.

MyObsoleteParts.com is the new kid on the block. You know the kid that has something to prove and has an innovative grasp on the industry. There are no listing fees associated with the program just a one time set-up fee and revenue share on parts sold. There is also not a monthly fee at this time, or any limits to the number of parts that can be submitted on the site. The major difference with MyObsoleteParts.com is that there are not after market parts allowed on the site. It is 100% OEM so you as the dealer will not be competing with a less expensive copy of the OEM part.

Whatever you choose make sure it is the correct fit for your department. There are a lot of dealerships that have not considered going to the Internet beyond signing up with companies that connect their inventory with other dealerships selling the same stuff. Its time that dealerships started making there parts known to the world and not just other dealerships.

For questions regarding any of the above programs please contact the companies and all would be more than happy to explain the benefits of creating a relationship with the Internet.

By: Adam Judson - CEO - Auto Dealer Improvements

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Automotive Automotive Parts, dealer to dealer, idle inventory, obsolete parts, wholesale

Today the Big 3 from Detroit were back before congress pleading for a bailout. After their review and submitting plans, they are now seeking $34 Billion for the bailout. Ford is looking the best going into the future and are simply asking for a line of credit that they can draw upon if they need it. To appease the government group and to show a decrease in spending the 3 arrived in Washington in hybrid vehicles.

Ford CEO Alan Mulally stated that Ford could survive through 2009 and may be able to get by without the funding, but would like to have the option there. GM and Chrysler on the other hand are struggling to get by and need a quick remedy.

According to an article on cnn.com Ford CEO Alan Mulally stated that according to an estimate from Goldman Sachs the impact to ecomomy for failure of the industry could be $1 Trillion.

Congress seems to be split on whether they should have the automakers go under bankruptcy protection or simply be given a bailout plan. It is my opinion that the government should bail them out and watch over there business carefully until full repayment of the bailout funds has occured.

I would like to hear what the readers of this blog think. Please comment with your in sites and opinions on the bailout.

The Great Depression, like most other periods of severe unemployment, was produced by government mismanagement rather than by any inherent instability of the private economy - Milton Friedman

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Automotive Auto Industry, bailout, Economy, washington

Well it is that time of year again, a slight nip in the air, and the sudden desire to drive across cities, counties, and states to enjoy a feast with people that you would never hang out with unless you were related (or maybe you would)!

Its a wondrous time of food, family, friendship, and depending on your family, football. I know I look forward to all the turkey, dressing and pie, oh yeah….pie.

Before all the fun happens you get the enjoyment of the drive. I was thinking back to thanksgiving road trips of the past, you know the ones I am talking about. You would load up in the family station wagon and hit the road.

Now if your station wagon was like ours it had the rear facing flip up seat in the very back. This seat was the perfect place for us kids to look at people out of the back window. We would move our arm up and down to get the semi trucks to honk the horn. We would make faces so that other drivers would laugh (or get mad and show us the ‘bird’)! Most importantly this is the seat that would get us car sick. It seems the only benefit to the car sickness was the empty stomach enabling us to cram in more thanksgiving goodies. Of course as a parent you can’t pull that car over fast enough because the puke smell is just too much. However to us kids you were just getting to our aid as fast as possible as any good parent would! The one perk for the parents of the day was that this rear seat was almost always vinyl. This made clean-up a snap! I have no doubt that an engineer designing this had this though…’Let’s put is a rear flip up seat in the back of the station wagon, of course make it vinyl because kids are going to puke.”

I hope you have enjoyed this look back on the great thanksgiving road trips of the past.

Happy Thanksgiving (kid puke free),

Auto Dealer Improvements and MyObsoleteParts.com

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This is a very scary time for our country and for the automotive industry. It seems like each time we are close to a bailout solution the rules change. I for one am starting to wonder if the decision will be made before it is too late.

I came across this interesting news story on msnbc.com that shows business’ that are already being affected by the slowdown in the automotive industry:

Can you imagine if one of these were to go down it would mean the loss of 2.5 million jobs. There is barely that many people in the state in which I live. Imagine all of your friends and neighbors suddenly out of work. They are skilled in a trade or occupation that is no longer available in the United States. Do we really want to give up our automotive industry to foreign markets? I don’t. We are looking at the possible end of corporations that are (or were) listed as some of the largest in the world.

I suppose there is nothing left to do but sit back and see what tomorrow brings. Let us all hope that this America that we all love does not fail in the support of the lives of those U.S. Autoworkers that call it home.

If all the economists were laid end to end, they’d never reach a conclusion.  ~George Bernard Shaw

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Automotive Auto Industry, Bail out, Chrysler, detroit, Economy, Ford, GM

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