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.
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.
Automotive, Myobsoleteparts.com Team
Auto Industry, dealerships, internet, parts, website
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
Automotive
Auto Industry, bailout, Economy, washington
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
Automotive
Auto Industry, Bail out, Chrysler, detroit, Economy, Ford, GM
I was recently enjoying an evening at home watching the television when a commercial came on that made me think ‘GM if you don’t have money why did you make this commercial?’.
The commercial I am referring to is the new commercial for the Chevrolet Traverse that has the mythological Minotaur. As I watched I pondered in my head ‘What is the point of this commercial?’.
I started thinking about the struggling auto industry and the fact that GM is wondering if they will even make it to year end. Then I thought this ‘How many millions of dollars could be saved if they made a simple and to the point commercial?’
Detroit, you are hurting and need to stop this wound of of overspending on pointless ads. I for one would like to see a CEO of one of the big three in a commercial saying to the American people something like this:
America, as you are aware the US auto industry is in trouble. This is why our engineers have designed a car with you in mind. The new Chevrolet Traverse, it seats up to 8 and gets an EPA estimated 24 MPG. Do America a favor and buy an American automobile.
Now that is a script I can enjoy, no mythical creatures hopping through the forest looking at a family car. A real American selling a real car to a real person, family, or group.
Well, that is my 2 cents for the day. If you agree or disagree or simply have a comment please select comments and submit your 2 cents.
Automotive
Auto Industry, Chevrolet, commercial, mythical, traverse
Today we are going to talk about content, and what a consumer is looking for when they come to your site. Put yourself in the spot of the consumer as you think about what it is they may be looking for.
Let us say that you have a site where you have the latest and greatest widget for sale. You are 100% sold that your widget is better than the leading widget companies. What are some ways that you can pass this along through content that your widget really is superior for your customers? Let’s look at the following:
- List on your site that it is the best widget available - While to you as the seller believes that you are telling the truth, the consumer thinks you are just feeding them a line.
- Allow customers to rate your widget and post that on your site - This allows the customer to read the rating and the reviews of people who have purchased your widget. This in turn will give your customer more confidence in the purchase. Well unless it has bad reviews and the product stinks!
- Start a blog - A blog is something that you should be familiar with if you made it to
this article or post. A blog is a good place to build credibility. A company can blog about anything and it does not need to be related to what the company does. If a consumer can get a non biased opinion on subjects, or just enjoys your style of writing it will give you credibility. They will then return to the blog often and they will have exposure to your company.
A blog is merely a tool that lets you do anything from change the world to share your shopping list. - Unknown
These are a few ideas that should help you get started. If you attend any web 2.0 training they will tell you that content is king. In a later post we will talk about free or low cost ways to advertise your site and get your name out there.
Automotive, Web 2.0
Auto Industry, auto parts sales, Blog, Content, ecommerce, internet, Reviews, Web Site
We are in a very time sensitive and scary economic situation with the US auto industry. Every day we hear talk about bail-outs and solutions that may or may not happen to assist the big three, General Motors, Ford Motor Company, and Chrysler.
Among the top news stories in the country are General Motors and their chances for survival. Today the headlines read that “GM stock is at a 65 year low“. Further research into the news shows us that if change does not happen soon GM may not survive till the end of the year.
This brings me to my question and the headline of this post. Will Barack Obama be able to make a difference in the US auto industry? Or is the path of the industry on an unchanging course and headed for certain disaster? I for one think that something needs to happen and fast. There are whispering in the winds that they should just file for bankruptcy protection much like the airlines. Others say that they should part of the 700 Billion dollar bailout. The fear for many of those involved in this decision is that it will act like a band-aid. When the band-aid comes off the wound will open back up and will fall into the same course.
It seems that in a recent article discussing talk between Obama and Bush, which
Obama is entertaining the idea of having someone appointed to be over the auto industry. Bush while not opposed to this idea is behind giving the auto workers help now. (to read about this click here)
I think that waiting for someone to be appointed in January under the Obama administration is a great idea that will do a lot of good. This author however feels that it would be in the best interest of the country to give the big three a loan. What I mean by this is let the government step in and help the auto industry become solvent. Then instead of a bail out let the auto industry pay it back. This has worked in the past just ask Lee Iacocca! For those not familiar he was the President of Chrysler Corporation and brought them back onto the playing field in the early to mid 80’s. One impressive note here is that he did not draw a salary from the corporation until they were profitable.
Automotive
Auto Industry, Bail out, Bush, Chrysler, Economy, Ford, General Motors, Obama
