In the Canadian automobile and automobile manufacturing landscape big and bigger groups of dealerships seem to be seen almost as a threat by auto makers.

Yet when it comes to other side of the coin – did not the marketplace coalesce and have economies of scale even early on in the 1900′s.  The example is often given , especially in relation to lost jobs and outsourcing , that isn’t it great that the horse and buggy makers went by the wayside and now we drive around in cars.  What would of been the value of keeping those old producers of products not needed around ? It would be a lost waste of resources.

In the same manner it was seen as better that larger more efficient auto making operations  emerged .  G.M. is an example of a company that merged a good number of somewhat smaller operations into one giant and very powerful monolith – both in procuring raw materials , design and management , manufacturing economies of scale etc etc etc.

Even a college economics professor who uses kitschy Apple computers or perhaps Linux would well admit its better to have such an economic arrangement than have 100′s of small backyard , or small town smaller industrial setups putting out hundreds and even thousands of models.  Cars might well not be affordable by the average person  being hundreds of thousands of dollars rather than an affordable amount. Parts too , might be hard to procure , a myriad of part types and models with no standardization  and be hard to source or have delivery for repairs.  Never mind finding proper and experienced service people for your vehicle.

Hence market consolidation of operations to a point where they are big enough to serve the automotive marketplace efficiently and cost effectively is seen as good and to be rewarded.

Hence why is not the same when seen in light of dealerships , dealer networks and large scale auto dealership groups ?

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It was not long ago that a major study of the auto industry was completed for a major business journal.
The results indicated a massive oversupply of production and that all of current automakers needs could be completed in just one country – that being South Korea.

Not withstanding the facts that one mindset and culture of production might lead to a rather sterile set of products with little need for innovation – where was all this leading ?

The point of the article was to suggest or work out that with major oversupply in the system that mergers down to three companies in the world was the coming trend , upshot or a fact of life. There seemed to be a GM-Toyota merger in the mix. A European merger with an American and somewhere in the mix South Korea.

Yet its always like fighting a war . Wars are never fought the way they were “supposed to be” – that is the way expected. New factors come into play , and under-swellings that were either not thought , thought to be insignificant or human ingenuity or innovation come into play.

Also the famous quote after World War 1 of a journalist of how wars come about. His answer was that such catastrophic events come about when politicians / leaders / management come to believe the lies that they ask to told to them or written.

So it goes with upper management and pundits in the automotive industry and industries.

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It can be said that its both a dog eat dog world out there – yet some will always prosper and grown lucrative as well as profitable business.

Take BMW as a prime example. BMW knows its market in Canada and does it best to service it well – and not with platitudes.

BMW head office Canada actually runs competitions among it retail sales dealers to put their money where their mouth is , and compete in service competitions . Its not a case of a canned detail at the companies corporate meetings in Toronto. Rah , rah rah . “Best thing since sliced bread”. Then once on the plane at Pearson Airport in T.O., and a few drinks its back to the old ways of what works in our area or what we like to do. Sum total.

Competitors were worked up in three regional competitions , with the finalists narrowed down to the top three in its regions. These teams were then given 45 minutes to complete a custom delivery process on a BMW X3 for a given imaginary customer. Contestants did get a workup on the customer ahead of time – including a brief profile detailing their age , basic interests , martial status and of course driving preferences.

BMW executive and management staff could be commended on setting up and following through on such a useful and instructive exercise. A new bar is set for service levels – not only for BMW motors and dealerships themselves , for peer pressure for less advanced dealers in their chain and network and lastly even other competitive dealerships and models in their higher end market niche. It can only do the auto industry and consumers as well well.

Competition it seems always results in better products, better service levels , higher expectations by customers and overall much much better value , than a lackadaisical approach. So be it.

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It can be said that life and the marketplace is cruel.

Yet if a business makes poor decisions – say in the case of wagon builders pre auto industries and don’t change with the times , well then its goodbye and end of the road.  Add in the same for those in the printing industries who did not heed the advent of “desktop publishing”.

The story was told of a businessman in the printing business , who at the advent of the Macintosh gave an industry presentation at a conference in San Francisco, and told his peers that you / they can prosper if they invest in equipment and get on the bandwagon with high volume printing – where desktop publishing was not cost effective ,and as well provide equipment facilitating the desktop publishing trade.  If you don’t he predicted your profit and income and your business will fall by the wayside.  He was correct in his predictions.

In the same manner at a Winnipeg meeting of Ford dealers years ago – Lee Iaccoca ( then of Ford not Chrysler) , advised the Manitoba & Winnipeg top Ford dealers that times were changing.  With the advent of the US & Canadian highway systems ( the national Canadian highway 1 was in construction mode), “people would be driving a lot more.  You will make your money not the old way , selling cars and trucks themselves, but rather on service”.  The dealers were advised to update and improve their Winnipeg & Manitoba Ford auto service centers, hire better people ,train staff and send them to Ford factory training programs as well as the local Red River Community college for advanced auto diagnostic and service training.  Lastly as  the Manitoba Public Auto insurance monopoly – Autopac  ( now known simply as MPI) came into place it was also vital to have auto body shops that were fully MPI accredited collision auto facilities – available to the Winnipeg & Manitoba markets.  One stop shopping as well as buy it here , finance it here auto financing availability.

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2012 auto industry sales forecasts sound like a speech by President Obama – where reality is ignored and a North end Winnipeg Babba’s story is made up.  Alternatively it might be told as the part of the giant Titanic shipwreck which has not yet slid under the water.

Sure auto sales staff by their nature tend to be – indeed have to be optimistic – as sales is 99 % reassurance and the best sales types are the ones who throw money around – like an irresponsible woman on a vacation paid for by a mark viewed as a a sugar daddy.  This is all true – yet at the end of the day auto dealerships and auto dealers have bills to pay, and sales staff need commissions to pay their own bills and sustain their livelihoods.

The word out is that “2012 forecast : Markets Soft Yet Positive”.  Its going to be all estimates in the auto trades – a repeat of 2011.  Look in the rearview mirror the automotive industries’ slang portrays.

Wait a minute.  2011 was nothing , in auto parlance to write home about or crow about.

Amazingly growth is not in the niche boutique areas predicted – fuel efficient , vehicles , hybrids or even boutique vehicles that were going be saviours such as the  Chrysler / Fiat 500  but in  big old heavy old fashioned but well like by Canadian and US auto buyers and consumers “TRUCKS”.   Small trucks yet again are going to be the savior of the domestic auto industries.

Of course the hope is that just like teachers retiring that cars will become older and will have to be replaced.  Yet just as older experienced teachers seem to hang in and never retire – old cars , especially if driven less due to high gas prices, seem to sustain themselves and their automobile owners providing ever reliable transportation and very good gas mileage if driven very little.

Auto buyers and researchers in the Winnipeg & Manitoba areas looking to trade cars , trucks and SUVS need to look no further than Winnipeg Auto Traders  & Winnipeg Truck Traders . A large variety of low km vehicles with instant auto financing available can be had.

Are these upper end higher end of the auto model most desirable models and brands that are on hand – or better yet have a “sold sticker” on their windshields and hoods fast moving on the sales lot or lots.  After all until the vehicle has its tires on the pavement and rolling down the road away from said dealer or dealerships its all essentially academic.

If it can be said that a or indeed any auto dealer or dealer in a dealership group  can say “yes”  to the above questions they may and are successful already.  Yet without “tracking”  and following up on their sales & marketing data , how indeed will they truly know , and be in a situation or situations to act upon and take full advantage and advantages  of every each and every opportunity to maximize sales fully – including dealer profits and sales commissions to sales people – be they salesmen or saleswomen ?   In addition  it is also vitally important no doubt , to recognize this statistic when it comes to current levels of marketing and advertising.

Some auto dealers and dealerships -  at dealer principal and management levels – feel that looking at stats and statistics is one giant waste of time.  “You have no time for naval gazing and philosophies”   ( so to speak).  You have to get out there and “sell , sell sell”.  “Beat the pavement ” etc etc etc.  Yet in the same breath these same individual authorities will quote Yoga Berri that “If you don’t know where you are going you will end up somewhere else”.   Its all about proper valuations and doing a full and comprehensive job.  Nothing is for nothing so to speak.

    Winnipeg 2012 Ford Fiesta Quotes Online

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A major stakeholder in a well run chain of new and used car & truck auto dealerships remembers as a focal point in his empire’s growth was a talk given by none other than Lee Iaccoca to a local group of Ford dealers.

The message was then in the 60′s was that times in the auto industry were changing.  The American interstate highways system was being built.  Fellows said Lee times are changing – people are going to be driving more.  You are going to make your money not on the sales of cars but on service.  You are going to have to improve your service department – its equipment , their staff – their skills and training – and you are going to have to charge more.

Witness this as a trend for summer time driving.  Less vacation drives mean less wear and tear and service on vehicles.

Its not good for the auto service industry , gas sales nor eventual new car replacement vehicles – be they cars , trucks or SUVs.:

Stock Market Confidence.  Nearly one-in-three (32%) now say they’re Less Confident in the U.S. stock market than they were 90 days ago – 8-pts worse than in March.  Only 25% say they’re More Confident – down 11-pts from previously.  All-told, we’ve seen a huge net 27-pt decline over the past two months.

Consumer expectations with regards to the overall direction of the economy are showing a downtick for the first time in eight months, while confidence is registering its second consecutive monthly decline.

Consumer Expectations.  A total of 26% now believe the overall direction of the economy will worsen over the next 90 days, which is 3-pts more than previously.  And while 31% still think it will improve, that’s 4-pts worse than previously.

Despite these increases, the current results are still well below the impact we saw at the peak of the surge in energy prices back in July 2008, when 12% said rising gas prices were Very Much affecting how much they drive and 64% Modestly affecting how much they drive.

We also asked consumers to tell us the impact energy costs are having on their discretionary spending.

What effect – if any – are energy costs (i.e., gasoline, heating oil, natural gas, electricity) currently having on your discretionary spending plans for the next 90 days?

A total of 10% say their discretionary spending will be Much Lower due to energy costs, which is the same as in March.  Another 40% say their discretionary spending will be Somewhat Lower going forward – a 2-pt improvement.

Importantly, the impact of rising energy costs on discretionary spending is considerably less than when oil prices were peaking at $150 per barrel back in July 2008.  Here’s a comparison of the current survey results with our July 2008 findings: 

Coping With Higher Gas Prices: Consumers Cut Back on Travel

A total of 36% now say rising prices at the gas pump have caused them to make changes to their normal routine – up 8-pts since March.

Despite these increases, the current results are still well below the impact we saw at the peak of the surge in energy prices back in July 2008, when 12% said rising gas prices were Very Much affecting how much they drive and 64% Modestly affecting how much they drive.

We also asked consumers to tell us the impact energy costs are having on their discretionary spending.

What effect – if any – are energy costs (i.e., gasoline, heating oil, natural gas, electricity) currently having on your discretionary spending plans for the next 90 days?

A total of 10% say their discretionary spending will be Much Lower due to energy costs, which is the same as in March.  Another 40% say their discretionary spending will be Somewhat Lower going forward – a 2-pt improvement.

Importantly, the impact of rising energy costs on discretionary spending is considerably less than when oil prices were peaking at $150 per barrel back in July 2008.  Here’s a comparison of the current survey results with our July 2008 findings: 

We asked respondents whether the rise in gas prices has affected how much they drive.

A total of 8% of consumers now say rising gas prices are Very Much affecting how much they drive, 2-pts more than a month ago. Another 53% say rising gas prices are Modestly affecting how much they drive – up another 3-pts since March.

Has the rise in gasoline prices affected how much you drive?

Stock Market Confidence.  Nearly one-in-three (32%) now say they’re Less Confident in the U.S. stock market than they were 90 days ago – 8-pts worse than in March.  Only 25% say they’re More Confident – down 11-pts from previously.  All-told, we’ve seen a huge net 27-pt decline over the past two months. Respondents were also asked about their investing plans going forward, and the rate of money inflow into U.S. Stocks (+6; down 7-pts) has slowed since last month.  Non-U.S. Stocks (-1; down 3-pts) are once again registering a money outflow. The Impact of Higher Energy Costs Higher energy costs and inflation continue to weigh upon consumers, but there are some signs of stabilization. Among consumers who are spending less, Inflation (40%) remains a top reason why – up another 1-pt since March.  Higher Energy Costs (30%; up 1-pt) is also a top reason for why consumers are spending less, but after a huge leap last month that does appear to be leveling off.
We also looked at the impact of rising gas prices on actual consumer behavior. Coping With Higher Gas Prices: Consumers Cut Back on Travel A total of 36% now say rising prices at the gas pump have caused them to make changes to their normal routine – up 8-pts since March. Among this group, we’re seeing a serious cutback on normal travel-related activity, with more than four-in-five (83%) saying they’re Consolidating Multiple Errands into One Trip. And while 43% also report they’re Eating Out Less, other travel-related changes include Working More From Home (22%), Walking and Riding Bikes More Often (15%), Taking Fewer Long Vacations and More Weekend Trips (11%), and Changing the Way They Commute to Work (11%). We asked respondents whether the rise in gas prices has affected how much they drive. A total of 8% of consumers now say rising gas prices are Very Much affecting how much they drive, 2-pts more than a month ago. Another 53% say rising gas prices are Modestly affecting how much they drive – up another 3-pts since March. Has the rise in gasoline prices affected how much you drive? Despite these increases, the current results are still well below the impact we saw at the peak of the surge in energy prices back in July 2008, when 12% said rising gas prices were Very Much affecting how much they drive and 64% Modestly affecting how much they drive. We also asked consumers to tell us the impact energy costs are having on their discretionary spending. What effect – if any – are energy costs (i.e., gasoline, heating oil, natural gas, electricity) currently having on your discretionary spending plans for the next 90 days? A total of 10% say their discretionary spending will be Much Lower due to energy costs, which is the same as in March.  Another 40% say their discretionary spending will be Somewhat Lower going forward – a 2-pt improvement. Importantly, the impact of rising energy costs on discretionary spending is considerably less than when oil prices were peaking at $150 per barrel back in July 2008.  Here’s a comparison of the current survey results with our July 2008 findings:         Auto Finance Vs leasing Surrey Vancouver BC  Buy Here Finance Here Edmonton Saskatoon Lloydminister Alberta    Nepon Auto – automobile industry blog http://www.neponauto.com/

Looking and evaluating  “Used Vehicle Marketing Reports”  and determining at a given point in time which is the most popular and ( appraised) car in Canada or the US should be overall no “major”  surprise or revelation.   The answer should be as clear as mud on inspection.  Yet dealers and dealership management / principals need to ask simply one critical question that is “Is our organization ( business or dealership) winning our fair share of those given brand or model of trades.

Yet stats and statistics dictate that the “average”  dealer wins around 35 – 45 %  of the trades that they appraise.  The key it seems is to know and comprehend what vehicles are being appraised the most often and how well overall these are being converted into real and solid sales.

Yet again the one item that does and will stand out is that both import as well as domestic American and Canadian auto , truck & SUV dealers  , consistently will see more appraisals on those on those most desirable rated top models ,  than any other vehicle -  be they either domestic or imported vehicles.  A simple way to know overall  , that is a “quick and dirty” workup ,  is to know exactly how dealers are doing exactly with their used car , truck & sports utility vehicle SUV inventories  Do they have any of these most highly valued  used products in stock ?  And overall can these be considered “fast”  or “hot “  movers on said auto dealership sales lots ?

Its a new world out there in the automobile sales and marketing fields.  Yet the more things stay the  same – the basics have not changed 1 %  at all.

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Its not over till the fat lady sings so to speak .  Yet this time when the world wide recession end “it won’t be the same”.  Put another way the war that is fought – is never the planned battle , strategy , tactics that was supposed to be.

Yet within North America- Canada, the USA and Mexico  new car  and truck sales while they may have rebounded can be said to have dropped to unprecedented levels overall.  If you think Obama and the politicians have the economy solved – just look around your neighborhood, the  local mall and especially the car lots.  Its certainly not business as usual.  On top of that the EPA and all the allied agencies have to speak declared war on the automotive industry and the internal combustion engine.  The aim it seems is to make us all drive East German Trambant economy cars  – all the while the politicians – especially the left wing Pelosi’s and Reids live the life of kings – jetting around in “corporate jets”  all the while telling us its time to  tighten our belts and be green.  Yet how is the White House powered .  Certainly not by green energy – solar or windmills – evidently by the lack of such in the local areas of the establishments.

Overall in the automotive industries it could be said that in the past volume declines led to relatively minor industry restructuring actions.  It was a case of capacity “rationalized “  or “rightsized” , model counts reduced  and capital expenditures moved back down or held back for a time – only to be restored back when sales returned.  It was minor tinkering to the business plan so to speak – not major revolutionary changes so to speak.

Yet its not that way this time no doubt.  Count on it in both the overall global , North American , American and Canadian local and national economies and first and foremost in the automotive and automobile industry and industries both primary , parts support and tertiary.

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Its a amazing thing and a sign of current economic conditions , as well as to pricing in the automotive industry – as well as parts and components.  Never mind inflation and the debasement of the US / Canadian dollars as well as other currencies with the move towards retention of value in precious metals and minerals – now they are stealing catalytic convertors – for both the auto parts valuations and precious minerals and metals inside – for “recycling”.  Whats next on the auto industry horizon one might say . Never mind carjacking but rather theft of autos and auto parts wholesale :

Oregon Police are investigating after dozens of catalytic converters were stolen from cars at a used car lot. This happened late last week at Nationwide Auto Finance on Woodville Road.

This has been a major issue for the people over at Nationwide Auto Finance. On Saturday, an employee discovered the catalytic converter was missing when he was showing a car to a customer and heard a strange sound after starting the car.

According to police, thieves sawed off the catalytic converters of approximately 20 different General Motors vehicles, with most being vans. They were valued at about $4,500.

General Manager Al Tawil said the same incident happened at the storage lot about a year and a half ago.

“It’s really sad people have to go that low to get money when they could just get a normal job. It’s really sad,” said Tawil.

http://www.wtol.com/story/17258098/oregon-police-looking-for-suspect-in-catalytic-converter-thefts.

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