Review About Automotive Industry

Today the global automotive industry faces a brand new set of challenges as well as opportunities. Recent demand for cars, SUV’s and light trucks dropped significantly during the past year as a result of several significant factors including:

o Higher prices at the gas pump
o Deteriorating consumer confidence
o Deterioration in the global economy
o Higher unemployment levels
o Tightening credit requirements
o Lack of availability of credit

These factors have only recently exacerbated the decline of the US-owned automotive companies. For the past twenty five years or so, increased competition, pricing pressures, higher fuel economy requirements, improved quality level from some foreign automotive manufacturer have hurt the US companies’ standings in the global market place. Ford’s US market share has declined from about 25 per cent to about 15 per cent. Since 1982, GM’s market share has deteriorated from about one half of the US market to roughly 25 per cent.

To put this drop into perspective, based on unit sales, Ford used to be the number two automotive manufacturer in the world. By 2007, Ford ranked fourth behind GM, Toyota and Volkswagen. In 2008, Gm slipped into the number two position behind Toyota. Finally, the domestic US market used to be the largest in the world. Today, that position has been taken over by China.

Ford, however, is financially in better shape than the other US automotive manufacturers in today’s environment. By structuring to “spin off” some of its parts businesses and starting to refocus on its core business of manufacturing vehicles, Ford began laying the groundwork to solidify its business base. Eventually, by selling off some of its parts manufacturing operations as well as some of the brands (i.e. Aston Martin, Jaguar and Land Rover) it had acquired earlier, Ford gained cash to be used for other purposes such as funding the development of new vehicles and new technologies required for them to become more competitive and to meet customer needs.

It appears that these actions have generated the cash to help them bring out a stream of new vehicles with enhanced product content, and with product quality equal to or better than its competitors. In addition, Ford remains the only US-owned automotive company that did not have to go begging to the government for “bailout money”. And that’s good for Ford, its shareholders and us, the taxpayers.

By: Charles H. Newman

About the Author:

The Italian based “Bertone” or formally named “Gruppo Bertone” has had an outstanding and exceptional influence on the automotive industry far away from its native country of origin of Italy. Bertone’s influence on a stable of automotive extended over a whole different geographic and company automotive manufactures across the globe – whether if be Italian cars such as Alfa Romeo, Lamborghini, Fiat or European cars such as Mercedes Benz or the Swedish Volvo vehicles. To some degree there are family similarities in the designs across the mix. This would be expected. On the other side of the coin each Bertone design project is a unique creation from inception to fruition.

With the death of Giuseppe “Nuccio” Bertone in 1997, at the age of 82 a glorious period of Italian car design came to an end. It can be said that before the end of the Second World War, and the period that followed in 1946, that Italian automotive design was plainly a regional event and nothing more. Even if vehicle designs had been downright brilliant little was ever noted or noticed outside of the immediate area and car community of Italy. The world looked to France for coachwork from 1919 to 1938, and might have continued to do so had Communist influenced governments after the war not punitively withheld raw materials from coachbuilders. Italy’s communists it seemed were more interested in jobs primarily. As a result, or as a direct initiative, they directly encouraged and nurtured a luxury car industry, in essence moving Italian automotive design to a center stage.

It can be best said that Bertone was one of the first carozzerie (coachbuilders_ to move into “series” production, with the construction of 200 Bertone MGs for Wacky Arnolt of Chicago starting in 1952. These orders then directly led to the production of some 350 Arnolt-Bristols and put Bertone in a position to manufacture a small series of coupes for Alfa Romeo, which was then in trouble with clients who had been promised a new car , whose release had been delayed by body tooling. That product – the Giulietta Sprint designed by Alfa’s Ferruccio Palamidessit, can be said to have put Bertone on the map forever. More than 40,000 of these classic vehicles were produced before replacement by the Bertone-styled Giulia GT.

Nuccio Bertone was not a designer himself, but he served first and foremost to discover, employ and guide some of the very best automotive designers known. An astute businessman, Bertone owned several anonymously titled companies in the Turin area .Thus as a result of splitting the work, and the pie across several enterprises and unconnected enterprises; he was able to persuade different automobile manufacturers across the board to let him produce automotive vehicles in series for them. Fiat 850 spiders and X-1/9s, Opel Cabriolets, Volvo coupes, and many others came from his factories. In addition his design center also created practical shapes for Japanese Mazda, French Citroen as well as Korean Daewoo among others. It could be said that this was the start of the globally integrated car industry. The country of origin of an automotive product no longer was distinct and mattered so much. The car might be designed in one country, engineered in another and yet be manufactured in yet another country and even be marketed from a different area. Where was the car made? Who knew? In the coming future the direct geographical origins of a car would be even less evident and distinct.

Time went on and with impeccable taste Bertone continued to issue audacious show cars, including several Chevrolets, the astonishing Lancia Stratos Zero and the Alfa Romeo Carabo. The production Lancia Stratos and the Lamborghini Miura and Countach brought that audacity to the automotive marketplace.

In the end it can be said that Nuccio Bertone himself was the last of the creators of the Italian automotive renaissance, a group whose names became magical talismans in the automotive world. By his ability to launch so many brilliant design careers as well as so many legendary as well as wonderful cars it can be said that this gentleman had a great influence which has left an impact not only then but even on the automotive market and styling even today.

By: Shaun Stevens

About the Author:

According to the Indianapolis Star, in the year ending 2007, the average base wage for a GM blue-collar employee, was just under $28 an hour. GM officials say that average reaches $39.68 an hour, when you consider base pay, cost-of-living adjustments, night-shift premiums, overtime, holiday and vacation pay. Health-care, pension and other benefits average another $33.58 an hour. This brings the total average cost of employing a single GM worker to an astounding $73.26 per hour.

Compare these outrageous hourly numbers to those of our Mexican counterparts. In June of 2008, Ford Motor Company announced that their Union had agreed to cut wages for new hires, to about half of the current wage of $4.50 per hour. Starting wages at some plants in Mexico are as paltry as $1.50 per hour with a lot less of the related pension and health care costs of U.S. workers. The total cost to employ a worker in China is even less than the cost in Mexico. There is no need to dissect those numbers, as I believe the point has been made quite clear.

The entire North American auto industry is on the brink of collapse and we wonder how in the world this could happen. The answer is quite obvious. North America can simply not compete with the foreign auto manufacturers. Certainly not at these hourly labor rates. The Unions have been holding a knife at the throat of the manufacturers for far too long. Greed in its purest form has broken the back of the auto industry. The Union is unrepentant as they have already spoken out and declared that they refuse to make any form of concession even during the industries darkest hour.

Leadership on behalf of the Union is largely responsible. The shepherds of the cattle if you will, who advise and direct their herd to fight to the bitter end in order to get what they want. They have no regard for the economics of their demands. Their stance has consistently been, give us what we want or we will take our ball and go home. In other words they will go on strike. Once again, holding the industry hostage.

The talking heads at the Big Three have asked Congress to kindly hand over $25 Billion of taxpayer money to help solve this crisis. Although this is an astounding number, it is certainly not the saving grace, which the auto industry requires. A Band-Aid on a gunshot wound will not stop the bleeding. Without becoming more competitive with foreign markets, the auto sector will gradually regress back into the funk it’s in today.

Congress, it would seem, is negotiating with the wrong people. They need to sit down with the United Autoworkers Union and provide them with a simple ultimatum. Either accept some very deep cuts not only to your wages but to your benefits and pension as well or the Government will break the Union and start anew. Then and only then should the Government consider providing financial aid to this troubled industry. Harsh, Perhaps, necessary absolutely. I am certain there are enough people currently on unemployment and welfare who would be thrilled to work in this industry for $15 an hour with limited benefits and a small pension program. And let’s face it, most of these positions require the intelligence and dexterity of a monkey, so the supply pool should be quite large when you consider we have college graduates and computer programmers currently sitting on the dole.

The repercussions of a North American auto industry collapse are enormous. Imagine hundreds of thousands of workers no longer contributing towards income tax, Health-care, pensions or unemployment insurance. Instead these same workers now become a drain on our society as they all rush to the unemployment line at once.

The U.S. Government just bailed out the financial sector with a $250 Billion payout. The collapse of the auto industry will result in a further collapse of the financial industry. The Government brain trusts need to determine just how many of these auto workers are likely to forfeit on their loans and mortgages should they suddenly find themselves unemployed. Those numbers will be staggering and that bailout money will disappear quicker than a box of donuts at a Policeman’s ball. Of course, those of us that are still employed will be left footing the bill through higher taxes.

Management of these companies cannot escape unscathed either. Although they are a contributing factor towards this financial crisis with their multi million dollar salaries and corporate jets, the Union eats up far more money than management. It is however, time for these so called brilliant CEO’s to lay down their Crackberrys, roll up their sleeves and formulate a viable plan that can save North America from financial disaster. A plan that not only includes drastic company wide cuts but a plan that will make this industry competitive with other world markets.

Our Nation cannot sustain a collapse of the auto industry. The impacts are so vast and the trickle effects so numerous it would be near impossible to evaluate the total devastation. It is essential that we resolve this crisis. The Government must hold the Union Leaders and the CEO’s of these failing companies accountable. Most importantly, we, the people, need to hold our Governments accountable. After all, they are the ones giving our hard-earned money away to these failing businesses.

By: A Brown

About the Author:

The role of the automotive advertising agency in today’s consolidating auto industry must change to accommodate the needs of the auto dealers that they serve. Reduced sales volume and profits have forced auto dealers to reduce their automotive advertising budgets and sales staff. As a direct result, automotive advertising agencies are being challenged to deliver more for less and reduced budgets and floor traffic suggest that they must increase their areas of responsibility to justify their agency fees or risk losing accounts. More importantly, they must learn the auto industry from the auto dealer’s perspective if they expect to be able to contribute in any meaningful manner.

Assuming that we all work our pay plans to maximize our own ROI in our chosen careers in the automotive advertising industry, I thought I would share some best practices regarding an auto dealership’s Internet sales processes with my fellow automotive advertising professionals to help them better serve their auto dealer clients. Not all of the situations I discuss will apply to every auto dealership so take note of ones that do and save the others for future reference in case they surface in some other form. I will cover common issues that are part of human nature. After all, the key to success in the car business is in the people – not in the franchise or facility – so most problems start and finish with people.

The Internet Department — From The Dealer’s Perspective

As a former new car dealer and current consultant on dealer operations and marketing I am constantly amazed by the disconnect between dealers and their key personnel. I liken the miscommunication of their common goals — to sell more cars/service and make more money — to that of a long marriage. Courting equates to the interview and the first few months are like an extended honeymoon. Once the excitement wears off it is a lot of work to remember why you got married in the first place; but worth the effort!

Dealers are people too! They often indulge their emotions in the hiring process based on the fact that they need help more than the applicants need the job! Great interviews get an applicant the job with the dealer’s hope and desire to solve a problem – not make a friend. Their business needs eventually outweigh their emotions and words like bottom line profits, accountability and the latest buzz words — verifiable R.O.I. — take over. Dealers should always have job descriptions and areas of responsibility along with supported compensation plans based on individual and department guidelines and objectives. Unfortunately, not many auto dealers have those today and few automotive advertising agencies are prepared to provide them.

Today’s market losses have forced dealers to make difficult decisions that should have been made before a position was even considered. The survival of the fittest must apply! It’s a dirty job but someone has to do it and the Dealer must base his decisions on performance and individually contributed profits or we will all suffer the consequences! That observed deficiency is a perfect opportunity for a forward thinking and prepared automotive advertising agency to earn their fees when direct sales won’t support them by passing on the observed need to their auto dealer clients while providing them proven processes to satisfy them.

Re-defining the role of the Internet Sales Manager, (ISM), at the Dealership – Customer Communication Center, (C.C.C.) vs. Business Development Center, (B.D.C.)

The A, B, C’s of the car business — Always Be Closing — go beyond the showroom floor and apply to the ISM as well as their staff. The key to the close, however, is to know the answer before you ask the question, or at least provide a limited response that you can control!

Based on your new found knowledge and understanding of the dealer’s requirements of their ISM, I suggest that you ask the hard questions before your dealer client does! The more you and the ISM are involved in the selling process in both vehicle sales and fixed operations the more productive and profitable you will be. The more accountable and verifiable your R.O.I. to the dealer the more secure your income and the account. Sell yourself and the added value that you bring to his Internet department to your dealer with the leverage of verifiable performance in a clearly defined position on the team beyond what most dealers envisioned from their automotive advertising agency and be paid accordingly.

I propose that you literally have the tail wag the dog, so to speak, by suggesting that the Internet Department become more than a lead generator with limited selling responsibilities. All communications, before, during and after the sale can, should and soon will be handled over the internet and/or on the dealership’s website which should now be part of your shared area of responsibility with the ISM.

Currently, Business Development Centers, or B.D.C’s., coordinate selling opportunities developed on the cellphone, showroom floor, service drive, data base marketing and in many cases the Internet. They rely on linked technology like telephony systems, vendors, such as Whos Calling, and onsite data base management systems, (DMS), such as ADP or Reynolds and Reynolds and customer retention management systems, (CRM), like Higher Gear or DealerUps, that are all now available on the internet.

Who is better prepared to coordinate communications and even transactions on the Internet than the Internet Manager supported by an involved and educated advertising agency? Who has the best understanding of computers, software and integrated links to access and apply information directed to the contacts sourced from the auto dealer’s automotive advertising investments? It better be you!

Customer Communication Centers, or C.C.C’s. provide a more integrated and accessible central point of contact at the dealership for their customers in both their brick and mortar dealership and their online virtual showroom. All customer contacts for sales, service/parts and office should be channeled to one location from all sources including telephone, email, mail, internal DMS and CRM, Internet — you name it! The cross-sell opportunities between sales and service/parts by having one contact person suggesting shared opportunities is obvious but unlikely if they are handled by two different people or departments! Less obvious opportunities like customer complaints and key vendor communications provide the ability to turn a problem into a solution but only if channeled properly.

The Internet is hosting telephone, DMS and communications through webinars and emails so take charge and credit with the dealer. Re-define your role at the dealership by increasing your areas of responsibility!

Integrating the Internet into the selling process — Sales and Fixed Operations

Most dealers have been traumatized by software solutions they are still paying for and never used. Usually they require secondary input, are redundant with other more integrated systems to the selling process or just lack real world applications to their deal flow — which is driven by human nature on all levels. Inspect what you expect coupled with standards like you can’t manage what you can’t measure can be applied to support your close for enhanced opportunities for you, his staff and your dealer.

Place the Internet C.C.C. squarely in the middle of all selling processes. Of course be careful what you ask for since an astute dealer will, and should, hold you accountable. No pain, no gain — so go for it!

As admitted, the devil is in the details, and there is no standard application to apply to all situations. Deciding what to do and what to delegate, and how to best integrate with the auto dealer’s current systems to minimize disruption, is the key. Don’t throw out the baby with the bath water but expecting different results from the same action is a good definition of insanity.

The auto dealer’s sales staff and service writers hate you — join the team!

The automotive advertising agency has always been perceived by the auto dealer’s staff as an outsider and the ISM has only recently earned the respect that he deserves by the old car guys who may still be fighting the shift to the World Wide Web. The Internet Geek of the old days has matured into a key manager in most dealerships and the trend is growing! You can’t possibly expect to cross train on all aspects of operations — but you should try! Evaluate the current communications, customer and deal flow and create a business pro forma in concert with the ISM and the other department managers to develop a profit and increased R.O.I. for all involved and you will earn your position on the team.

Inter-department squabbles in the car business will always exist but your new position on the team — if introduced correctly — will transcend individual motives to resist your efforts to improve everyone’s bottom line. Taking on the burden of helping the ISM and his team to make appointments and providing centralized communications — both internally and externally to the dealership — will free everyone else up to sell more cars, service and parts!

Real time paperless reports available online — or in the DMS/CRM — will provide the department managers with the information and tools they need to do their jobs. Your complimentary secretarial services, automated and managed follow up systems to recapture lost sales opportunities coupled with your shared goal to increase appointments, sales and customer satisfaction is not a threat but a blessing!

Establishing goals, accountability — getting paid on the bottom line

Most automotive advertising agencies and ISMs are involved in search engine optimization plans, (S.E.O.), and search engine marketing plans, (SEM), with applications on their website that track leads, conversions and R.O.I. — or they should be! Your goal should start with continuing your efforts to increase traffic to your auto dealer’s website rather than the telephone. It represents the most sophisticated tracking software available; now and for the foreseeable future. Your ability to track results is where your accountability part gets covered!

Sales goals theoretically start with the dealer’s market share responsibility for the manufacturer, (M.S.R.), but fixed and semi-variable expenses quickly establish more pressing goals. Covering the Nut is a street level goal which must be met or none of the others matter. Have the dealer provide you with what he expects — or needs — and that should become your common goal!

An example of a realistic goal for an auto dealership should be 4-5 generated appointments per day per person; selling one. This represents 120 + appointments each month, 80 +/- that show up and an additional 20 units per person per month based on a 25% closing ratio.

Include areas that you and the ISM can directly impact and monitor like new and used vehicle sales — units and gross profit, sales and service appointments, customer satisfaction scores and all monthly sales or performance goals. Define the areas of responsibility that you will handle and decide on which ones you will delegate. Compute the budget, staff and facility you will need, online and in concert with your conventional advertising and community networking proposals, to develop the traffic required to achieve the sales and performance goals the dealer has established.

Use industry guidelines as far as closing ratios and conversion ratios specific to the auto dealer’s franchise, size of market, staff, inventory and facility to “back into” your sales vs. traffic needs. Resource local media statistics, like cost per point, C.P.P., to determine the most cost effective media to dominate within your budget focused on the Internet customer and then dominate it.

On broadcast, for example, a 5 plus frequency and a 50% reach coupled with consistent and coordinated dealer specific brand-tail messages, (branding and retail), over a ninety day period with creative directed to your dealer’s web site as well as a monitored 800 number will absolutely drive traffic.

Of course expenses must be considered based on line item percentage guidelines vs. other expenses to preserve profits. Another common budget tool is to establish a per unit cap based on experienced expenses per unit which range from $250-$500 per car but it can double in certain markets. Pick a basis for your budget, any basis, and stick with it!

Monitor shifts within budget based on results and R.O.I. per investment but never increase the budget without a proper risk to reward consideration and an acceptable projected R.O.I. The days of guessing are over; so be right!

Do all of the above, design an agency fee tied to specific performance under your control and you will have deserved a bonus tied to the total dealership bottom line because you have contributed to it. More importantly, as a valued member of the team your agency relationship with your auto dealer clients and their staff will survive today’s downturn in the economy and the auto industry with its reduced conventional advertising budgets.

By: Philip Zelinger

About the Author:

The very competitive automotive repair industry depends highly on sophisticated equipment which is very expensive. Automotive repair equipments like hydraulic lifts, alignment equipment etc play a vital role in the business operations of this industry. Although expensive, they are indispensable in various repair services. Therefore automotive repair equipment financing is assuming greater importance in the automotive repair industry.

The traditional lending institutions may not be willing to finance sophisticated automotive repair equipment due to their unique nature. However, there are a few genuine financing companies which understand your needs and requirements. They offer financial assistance under various categories and at better interest rates.

Commercial car wash requires lot of equipment and so an automotive repair industry needs to be equipped with all the essential equipments for the same purpose. Automatic car wash, In-bay car wash system, vacuum system etc are some of the sophisticated equipment required in car wash processes. But they are quite pricey especially in case of multiple car washes. Therefore, one can acquire the sophisticated equipments through automotive repair equipment financing.

Tire changer is another important component of any automotive repair shop. Nowadays people are particular about the tires they use and thus excellent tire changer equipment is indispensable for satisfying the customers. Automatic tire changer, PAX tire changer, manual tire changer are some of the equipments available in the market. They can be expensive and so the automotive shops need to look for automotive repair financing.

Auto body equipment plays a crucial role in making a wrecked vehicle to useful. This work however involves full line of auto body equipments like straightening equipment, painting bays and so on. In case they have to be worked on various types of vehicles, a full line of auto body equipment can be quite expensive. In such cases the help of automotive repair financing is much required.

Wheel balancer is another vital tool in an automotive repair shop which helps in assessing the potential problems in the wheel, quickly and accurately. Therefore this equipment helps in providing improved customer service. But the cost of wheel balancer is high and so wheel balancer financing provided by some reliable financing companies is essential.

Wheel alignment equipment is another valuable tool in an automotive repair shop. It saves time and helps the mechanic in easy and quick assessment and repair in any vehicle’s wheel alignment. Though essential, they are quite costlier and so many repair shops are not able to afford it. However automotive repair equipment financing provides valuable service to repair shops to acquire these essential tools.

A frame machine in an automotive shop helps to provide life even to severely damaged vehicle. It is also quite expensive, but some valid financing companies offer easy financial assistance to acquire a frame machine.

Automotive repair equipment financing therefore helps almost all automotive shop owners to acquire the valuable automotive repair tools. The financing companies provide straight forward approach in offering financial help. They provide fast approval with minimum application process. Even an online application is enough to get financial help from them. These companies offer help at better terms so that owners can pay their bills in low easy monthly installments.

By: Chris Mark Fletcher

About the Author:

There is a real challenge out there as the Automotive Industry ‘globalises’ – experts in a number of disciplines from Sales to Design, Engineering to Manufacturing are having to talk to each other across continents. This brings so many challenges, both for the business and the individual. Companies like Nissan and Renault have important alliances in place, and most automotive manufacturers are present in China, working with local industries.

The Challenge

English is the global language of the Automotive Industry

There are ever increasing demands on Automotive executives:

International Travel

International Companies & Alliances

Shared, Time-pressured Development programmes

International Meetings – face to face, on the phone, even on TV

International Communications – e-mails, letters, video conferencing

Global Experts in Design, Sales, Engineering, Manufacturing, Finance who have challenges when trying to get their expertise across.

The Personal Challenge

Imaging the difficulties posed by the following examples:

1. “He’s wrong!” – but how do I tell him that politely?

2. “That’s not the best way” – but how do I tell them what is the best way in terms that they will understand and without offending them?

3. “I’m thirsty” – but how do I ask for a drink around here?

4. “I’d really like to see the way that he calculated that” – but how do I ask him?

5. “I don’t want to eat here, I’ve heard it’s no good!” – but how do I let them know?

6. “That’s a lousy deal!” – but how do we discuss this in the kind of detail I want to go into??

7. “I really want to understand what makes this colleague / customer ‘tick’ – it would make this project / negotiation much easier” – but I’m stuck for words! English is too difficult!

The Solution

The Automotive giants and their suppliers need to get their experts ‘up to speed’, NOW. International alliances and cooperation means more travel, more meetings and more and more shared projects and platforms. There are various options available to employers to enhance their employees’ skills in English, especially to those in Japan, Korea and China. The best option has to be one-to-one tuition in the UK, Australia or the US. Good training (which can also be carried out in-house, or in a language school either ‘at home’ or abroad) enables international experts to communicate easily and with confidence, so that a car-makers’ ideas and agenda are definitely put forward.

Too often during my career in the industry I have watched Japanese colleagues struggling to communicate their point of view (and therefore that of their employers!) to people from very foreign cultures. My favourite example of this is sitting in a car in the UK, next to a Turkish gentleman, and hearing one half of a conversation he was having with a Vietnamese gentleman who was speaking from his desk in France where he works for a German company – all about a project for a French customer for parts that would be manufactured in Turkey for a Romanian factory! All of this was in ENGLISH!

By: Andrew Carter

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“If we are not customer driven, nor will our cars be.” Henry Ford

As you read this article, I believe you will discover the real key to true greatness. The key is to be of service to others. No matter who you are, if you are breathing you are in customer service in one way or another. The concept of service has not been understood by most people. Whether you are Madonna, or Billy Graham, you are in customer service. We are all rewarded materially based on the pleasure or service we bring to others.What do all the great ones have in common? They have an attitude of being of service instead of being self-serving. They all serve their audiences or customers with impeccable excellence which resulted in them becoming great.

THE AUTOMOTIVE INDUSTRY CRISIS
We have a crisis in this country underlying the financial crisis. I believe that it is at the root of the present financial crisis. It is called the CUSTOMER SERVICE CRISIS! The word crisis in Chinese means danger yet opportunity. We definitely have lots of opportunity to improve in our nation in the area of customer service. I think it is the real financial problem we face today. I am not an economic genius, but I am a customer service expert. I am tired of watching people put band-aids on economic cancer. So I am writing a series of articles which will get to the root of the economic problem and if heeded could help turn this crisis around.

AMERICA WAS BUILT ON SERVICE, BUT TODAY WE HAVE BECOME “SELF-SERVING!”

We have a service crisis that has caused a financial crisis in everything from banking to housing, and of course, automotive.With GM, Chrysler and others bleeding, and people losing their livelihoods and retirements you don’t have to be a rocket scientist to see it. Have you had any poor customer service lately? Cold food or dirty restrooms, Late deliveries, Defective parts, Unfulfilled orders, Lazy, rude staff (this is epidemic!!!)

I started out in the auto industry in the mid 70s or what we now call the good old days. I was working for the largest GM dealership in Alaska and one of the largest in the country. This was when GM was GM! I started out washing cars (or busting suds as we use to say). I eventually moved up and became a corporate trainer for the SOUTHEAST Automotive group. One thing I noticed over the years was the deterioration of customer service in the automotive industry. My first boss was a thirty year company man that was customer driven and he constantly reminded us that without a customer we would all be unemployed!

I drank the kool-aid, I believed him. But as the years passed, I noticed that the customer started to become more of a statistic on a graph in a conference room where strategies for up-selling and getting more out of each transaction at the point of sale was the goal. At the same time we were cutting back on quality and service! “Higher profits” – less service became the mantra. Don’t misunderstand me, I believe in profit. But I believe what my good friend and mentor Dr. Ken Blanchard has said about it; “Profit is the applause we get for taking care of our customers…

“If We Are Not Customer Driven, Then Our Cars Won’t Be Either!” Henry Ford

By: Bernard Smalls

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