Carson City Used Car Dealerships – After spending most of my career mostly working with car dealers, dealer associations and for lower-level producers, I was very sad and rather angry at the current state of affairs of the automotive industry. Let me explain.
First of all, for those who are politically correct or easily offended, you might want to skip this post. Let’s start with domestic producers. The so-called Big Three Chrysler, Ford and GM have done a much better job in building vehicles in recent years. The gap between the quality of domestic vehicles and Asian or European brands in many cases disappears.
Carson City Used Car Dealerships
Domestic vehicles are now often superior to the Asian or European models they compete with. If you don’t believe me, check the amount of factory recall to see defects in each manufacturer and you might be surprised at how domestic people accumulate against the leaders of the qualities that Toyota feels. Check ratings for satisfaction too.
However, the leadership of the Big Three has not been able to find their butt with both hands. I say that with the exception of the leadership shown during Alan Mullaly’s tenure as far as the CEO of Ford. If I had to enter leadership before Mullaly, the CEO had acted slowly, arrogantly and incompetently. The bureaucracy that was built has been maintained and no one has the courage to make the difficult decisions needed. Inbreeding will cause people to believe that many of the leaders of the Big Three must have six feet and be a little slow. My thoughts were confirmed during the testimony given before the congressional hearing. The collective intelligence shown is not the same as Ozzie Osbourne. As a matter of fact, I pointed my hat at Ozzie because it was more coherent and smarter than Rick. “I think I lost the train” Wagoner and whoever ran it, “I seem to have been hit by a bus.” Cerebus, I mean Chrysler. By the way, Chrysler, do you remember Mercedes’s “equal merger?” What are the results for you? Oh well, I’m sure you will sell a lot of Fiat’s crap popping up. Where will the cars be made? And if that doesn’t work, you should burn fast when Obama is still in the office. Obama can always make a deal with Fred Flinstone Cars and trucks. I heard they got good mileage.
While I think of gas mileage and all the anger for small cars. If you are old enough, you might remember Johnny Carson and his “The Great Carnack” character? By the way, I’m not sure whether I spell correctly or have the right character name, so forgive me if I’m wrong, but now everyone is redeemed for their mistakes, so I hope I’m forgiven. Great Carnack Carson’s character will put an envelope closed on his head and can see its contents. Right now I’m going to play Carnack. I predict that all the hype made about this little car is bullshit. Big fat Americans drive cars on big roads, sleeping on big beds and fat in big houses will want big cars and trucks. It is our American right to want big fat things. The Government will NOT change this in the long run no matter how hard they try. Does anyone remember a film with a world theme determined by the government? How far it seems it seems now. I think it’s okay, I have full confidence that the government will always make the right and best decisions for all of us. Moreover, the track record has become a star so far. Did anyone read Ayn Rand? Maybe if it was made into a Star Trek film? Hmmm … Just a thought.
Now let’s look at the good and bad sides of car dealers and their role in this mess. Although it is true that there are too many dealers in the US for this market, most of these dealers are carried out after WWII by producers. The dealer is a franchise and the franchise is leased and permitted by the manufacturer. 25% or more of dealers in the US will join or go bankrupt. Many of these dealers will be stopped by the manufacturer. The state franchise law imposed to protect them will be null and void due to federal bankruptcy. The dealer as usual will be chaotic. The dealer doesn’t make this mess.
Most dealers are owned by entrepreneurs who often start with a little, work hard and take big risks. They only prosper with their minds and serve their community. Wait until Main Street America wakes up and feel the loss of tax revenue, charitable donations and lost work. The shockwave will be like an exploding nuclear bomb. Automatic dealers are people who have saved manufacturers time and again through every mess. Think back to the dealer who sold the ugly K car to redeem Chrysler through their last gift. Over the years, manufacturers have defecated at dealerships and made them sell it to the public. Just remember, manufacturers sell it retail to dealers and hope they sell it wholesale to the public. If Joe Q’s public really realizes how thin margin is in selling new vehicles and what their average tax profit margins really are, maybe they will value dealers more. Come to think of it, maybe not. Most people only see dealers as criminals trying to get their money because they also hit the same dealer for charity.
The dealer body that is really going to win in this chaos is the dealers who don’t deserve it the most and they are publicly owned aggregators. In almost every case, the dealer that has been purchased by the aggregator performs worse than when it is run by an independent dealer owner. This large group of public dealers will look after their dealers and their sales and service business will soar. This extraordinary result will not occur because of whatever they did but because it was left to them on a silver plate. Once again “little one” will be chaotic. Is there a pattern here?
However, Mr. Your dealer is not without error. Many of you have changed with time but so many have not. Many dealers have spent their business in bankruptcy by using the magic pill advertising formula sold to them by advertising agencies that are nothing more than media prostitutes who are looking for commissions and cannot spell marketing, let alone know what it is. In the past few years I have asked many dealers the following questions: What percentage of your customer base is buying from you? What percentage of your customers who bought from you began to serve you and then continue to serve you? What percentage of your customers are inactive customers who no longer do business with you? What are your plans to create continuity? The answers to these questions are almost non-existent or embarrassing. Mr. Dealers, if most of you have worked hard on business like you do in business, manufacturers will not be able to attract your franchise because you will sell vehicles in droves and make lots of money, no matter the economy.
Wall Street and the banking industry marched and “stole” the money and were not even asked what they would do with it. Just like with a child, gifts create repetitive behavior. So like good kids, Wall Street and the banking industry continue to line up for their rewards. It can’t be trusted how greedy and sometimes even thief institutions are rewarded while hard-working car dealers are confused. Where is the bail out for the dealer? Damn, even the factory is not treated fairly compared to Wall Street and bankers.
The bank where I do business takes bailout money and buys other banks that are denied bailout money. With their balance sheets and portfolios much better, they decided to slow down the pace of their lending. Who else is the money for? What is the purpose of the bailout? What are bankruptcy courts and what do they do? I was confused trying to track everything.
Unfortunately, car dealers get problems on both sides. The smart Obama task force is trying hard to cut this dealer. This part is amazing to me. Yes, it’s true that there are too many dealers. The reality is that domestic producers do very little to service dealers and the costs are minimal. In fact, my position is that manufacturers realize the net profit from having more dealers. Obama ran on “Help the little platform.” The dealer is “little one.” Likewise all dealer employees will lose their jobs. The “little man” took it behind the “little man” he said.
What about the dealers who are loyal to the manufacturer and the loan arm? Many dealers who wake up one day to hear “Thank you but no thanks. You have to get another source. Hopefully you will find one banking source who received a bailout because they have a lot of money to lend. I think we have a problem connection. Luv Yes, Must go! ”
Speaking of the Auto Obama task force, it is no coincidence that the UAW has ended with a large percentage of ownership at Chrysler and soon GM too. Unions that make Obama elected will be rewarded. It must have been a coincidence and this could not have happened on purpose. I grew up in a united household. My father is a union electrician. I am all for unions looking for workers’ interests. However, one of the biggest contributors to automatic chaos is trade unions. Unions have helped destroy the people they are supposed to protect. For many years now, unions have not been about protecting the interests of workers but in protecting the interests of the union leaders. This latest agreement will be more similar. Are there really factory workers who believe that it is justified to be able to sit in a room without doing anything for a year and withdraw a large portion of your salary to be called a Working Group? There are things that are negotiated as too good a deal. Congratulations to UAW workers, in the new arrangement, your union leader will send your work to another country. How is that to win and trust your leaders?
Let’s go back to the Obama Administration and their role in all this. Politically, I am an independent and strong person who is now encouraged to become a libertarian. Do you really think that the government will do better work mostly than the private sector? Let’s see, Wall Street or Pennsylvania Avenue? If you think there are criminals on Wall Street, you must try Congress. At least Wall Street is more honest about what they do.
Our founders will look disgusted at what is happening now. Never before in our history have there been major changes to the nationalization of so many of our countries in a fast period of time. For all of you Democrats who read this and thought I was ruining your party, you were wrong. Personally, I think George Bush is one of the worst Presidents in history and set the stage for many unconstitutional behaviors that occur. Again, each party only protects themselves and not our country. US citizens, you and your country are being sold to the highest bidder.
I have to go now. I have to pick up my child from school and take him to baseball practice. I hope that I and the local car dealer will be able to sponsor his team next year. Must go!
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