Monday, July 27, 2015

GM Ford's Addition Philosophy To Change

The competitive selling markets of the American Automotive Manufactures has offered the US retail car market a surprising comeback from the debacle three-year death sentences from 2006- 2009 market crash. The strong comeback of General Motors and Ford Motor Company was partly due to a selfish operating philosophy that brought a crack addicted addiction of " No Change " in strategy for design and cost improvements along with "exaggerated cook the books" quarterly profit reports. Now GM and Ford announcements of profitability" has brought some really tough changes and new direction due to accountability from the tax payers, who screamed a big" Hell No" to any corporate bailouts. Chrysler is still a work in progress with Fiat.

Changing direction started first with accountability from an addictive over priced recession and manufacture lobbying for" me too "Tarp funding.

#    The Second start was the fast axing of high salaried big bonuses "good ole' car guys who nurse the stay the course philosophy".
#   Third was terminating dealerships points. This termination idea is still heavy fought by some Dealers on the tactic and criteria of what dealers truly warranted termination.
#    Fourth was the dusting off plan to build the attractive fuel efficiency car's platforms they have had for years on the dust shelf, one example the Volt. Nissan leaf is a strong competitor.
 #   Trucks have always held their stance in lucrative profits margins and lower market depreciation for GM and Ford. If the manufactures can build trucks with such passion, why not cars? One guess in the pass would have been profit margins. So for now trucks and efficient design is off the table still.

The US carmakers addiction of not playing ball to build better cars, while allowing Toyota and Honda's ( started with motorcycles engines) and Datsun, now Nissan to take leadership in sales per dealer and market representation. All foreign car makers were better innovators to build economical priced, quality cars, not trucks that took the American market by storm. In other words the Japanese market value.

The American manufactures surely knew value, it but did nothing to compete as Capitalism was King, and certainly stayed on the crack pipe not to change. The government bailout was surely a slap in the face to GM, while they were begging for survival to drive tail first, no private plans allowed to Washington. And let's just say about the historic Chrysler that they were "old school of the " been there done that " at bail outs, brought about some neck gabbing accountability changes at GM and Chrysler. I got my former GM stock holder Bankruptcy notice letter of "your assed out ". Yes, I got the picture that GM bit the pride bullet to tag a BK on there backs. Now the GM stock is back at $22.00

The American manufacture didn't change simply because of greed and complacency. Yes again, Greed and Laziness took precedence over the future of American car markers and it cost us a lot, including the core of the Car Makers Soul is the retail Car Dealership. Now the said part is the governing body of few brave Dealers fought for rights in the termination process of what's fair and many still are fighting.

Trucks have always held their stance in lucrative profits margins and lower market depreciation for GM and Ford. Now GM is paying back the bail outs and that's great news. Many dealerships will now have to decide on making a plan for tough changes as well, but not the luxury of perfectly timed bail out help needed for small business owners. These changes will take a serious game plan in management, technology and cultural and women selling as a qualified market that can buy. CarLance believes that Dealers has to change their old boy's club mentality.

An eye opener for sure for me as former stock holder that didn't see a dime of profit in the American capital dreams to invest in an American Car Company. But I am still a believer in American Car Makers and the Dealerships that sell. Surely I will invest again. Patriotic stance of Brainwash I am not, but now that the American Car Companies as great as these are be winners again for sure. But comeback kids that I know are American Winners. Yes, I am a believer in the comeback dream of America and car dealerships success to continue.

Deborah Sims, is the owner and writer contributor for Carlance Automotive Consulting and carlance.com. Ms. Sims is a 25 year trailblazer and pioneer in dealership retail sales, marketing and management. She has successfully owned and operated two franchise dealerships and have worked and managed all segments of the retail automotive industry.

No comments:

Post a Comment