Not
at a Loss for Words - motor vehicle industry information
This is my annual chance to say this and that and
whatever else is on my mind. I call it "Thoughts
while shaving." Ouch!...
...Where did all the money for 0% financing come
from? Do automobile manufacturers make that much
money on new vehicles?
...I don't want to look a gift horse in the mouth
as dealers really profited from these incentive
campaigns. But what happens in normal times?
...As a long-term Chevy dealer who was tee'd off
when Saturn was created by Roger Smith "exclusively
to compete against Japanese compacts," I find
my concerns were justified as Saturn has simply
become another GM nameplate!
Jill Lajdziak, Saturn's sales and marketing vice
president, says the GM subsidiary is looking to
expand the number of dealers from 433 to 750 by
2012. Saturn is contemplating larger cars in the
near future, all of which makes Roger Smith's creation
an exercise in B.S. and simply a ruse to create
a needless new division which hasn't made a dime
since its inception.
...Employee compensation in the new-vehicle industry
ranks among the highest in the U.S. So why can't
franchised dealers attract higher quality sales
personnel?
...In a room full of automobile people, why is it
so easy to distinguish wholesale people from retail?
...How do automobile manufacturers establish the
prices of new models and what criteria do they use
in figuring these suggested list prices?
...As I shaved the lather from my craggy face I
realized I was about to observe my 81st birthday.
Except for some minor plumbing problems and some
skin damage from the sun I was in fairly good shape.
...After a half century of commenting on the state
of the industry, I am encouraged with the excellent
reports from dealers and their employees.
...It appears the combative attitude between dealers
and manufacturers has lessened. It's almost to the
point of realizing that dealers actually liked and
respected their respective manufacturers.
...I recently talked to Steve Pitt, the staff guy
who is directly responsible for NADA's outstanding
conventions, and remembering when he took over the
reins from Leroy Smith in 1977. Many people don't
realize Steve's talent and commitment in putting
together this quality meeting and exposition.
...Saw Mrs. Frank McCarthy receiving an award for
her late husband and I was overcome with deep sadness
over the tragedy of Frank's untimely illness and
death. It doesn't seem fair after 33 years serving
the needs of so many as president of NADA that he
should be denied the golden years with his family
and many friends.
...I'm starting my 23rd year as a columnist with
this magazine. I've watched it become one of the
premier publications of the industry.
...You know you're getting old when "happy
hour" is a nap and your address book has names
mostly starting with doctor.
...New vehicles carry the longest and most comprehensive
warranties in the world. Also, more consumer protection
and regulations have been enacted in the past half
century for automobile buyers than any other U.S.
industry. Why then is their reputation still suspect?
...Finally, it's a pleasure to work with Ward's
Dealer Business Editor Steve Finlay. Years ago,
Steve's father, Bob Finlay, as editor of Automotive
News, wrote a weekly dealer-oriented column. Not
a week went by that I missed that column. Fortunately,
the apple didn't fall far from the tree. Steve shares
his dad's interest and approach to dealer issues.
I'm proud to be associated with him. |
