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Archives:
Feb - 2004
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| Thursday, February 05, 2004 |
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They quoted Ford's "vow to make money on Ford Motor Co. cars that debut in 2004." The author also says he (Bill Ford) acknowledged that the company, in previous years, had inflated volume projections on some cars, leading to money losers. "we're not approving any product programs these days that don't make money," Ford said.
The article also stated that Ford Motor, in the last decade, has made its money in trucks, while front-drive cars have produced marginal profits or outright losses.
I applaud Bill Ford's commitment to make a profit on cars, and I hope all the automakers follow this policy -- but for a different reason. For years we truck lovers have paid inflated prices for our work vehicles and our hard-earned toys so the automakers can cover their losses on cars. If the proverbial playing field is leveled, continued light truck market share growth will be assured. To meet the demands of the driving public vehicle owners vehicles that provide more flexibility to enhance their active lifestyles. We will all be better served. Go Bill!
The Mobile Enhancement Retailers Association, MERA, recently helped to organize retailers to fight a proposed noise ordinance that would ban the sale of aftermarket car audio equipment in Albuquerque, New Mexico.
MERA worked with CEA to develop language in a letter to city council members that would inform them that what they were about to do was unconstitutional and would violated antitrust laws. MERA forwarded along with the initial letter proposed noise ordinance language that would make the noise ordinance more applicable for the city of Albuquerque. It The language established noise noise-free zones for churches, schools, and hospitals, it and also established nighttime hours to protect that residential areas would be protected from noise so that the peace and tranquility of private citizens would not be compromised.
MERA mobilized six Albuquerque retailers so that they would be informed of industry efforts to stop this potentially damaging ordinance. For more information contact MERA at 800-WHY-MERA (949-6372) or visit the website at www.merausa.org.
I say that I'm sure that not all of these 6 businesses were members of MERA, which shows the importance of belonging to an association and keeping up on their issues. This shows that we can have some hope of countering the constant barrage of assaults we face in this industry Someone knew of MERA and was involved enough in their city government to enable them to get the proper help and to take effective action. We do not work in a vacuum. We need success stories like this to battle discouragement. There are good things going on, and we need to be part of them.
Lincoln is preparing to re-enter the pickup market with a full-sized Lincoln pickup based off the redesigned Ford F-150 Crew Cab. The four-door Lincoln is expected to go into production in July 2005, according to the product forecasting arm of J.D. Power and Associates as quoted in Automotive News
I say BRING IT ON! Let's fill Lincoln Mercury showrooms with these new trucks. This will be Lincoln's second attempt to grab incremental sales from a pickup. The Blackwood failed, in my opinion, because it was competing in the ever-dying mini pickup market, and it was grossly over-priced for that market. The Japanese saw a steadily eroding market and converted to the full-size pickups with a vengeance. Perhaps if Lincoln had created a full-size truck from the beginning they would have headed off the stampede of new full-size. We all see better in our rearview mirrors.
Automotive News reports that the Chrysler group plans to boost sales of parts and accessories with the opening of Mopar Speedshops at dealerships. When the Speedshop concept was unveiled a year ago, 250 Chrysler group dealers expressed interest.
I believe that if Mopar uses their head about this it can be good for everyone. The reasons people buy performance products are as varied as the myriad of products available. Countermen are not capable of optimizing that market without a lot of training. It will be interesting to watch warranty and residual values of products as these. |
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| Dave Herrmeyer @ 1:01:00 PM | |
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| Thursday, February 05, 2004 |
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According to The Detroit Free Press, Japanese automakers are moving toward a more efficient business model in which customers order their vehicles with the color and options they want and receive them within two to three weeks. Toyota is at the forefront of building cars to order but other automakers won't won’t be far behind in this competitive market.
Custom ordered vehicles could make buyers happier with their vehicles -- further improving Customer Satisfaction Index ratings -- while enabling dealers to cut inventories. That could lead the industry out of the current rebate system and into higher profitability for everyone. It will also make it easier for the OEs to sell and install a wider range of products demanded by their customers.
Is believe that if the OEs think this is worth fighting over, let's pay attention. Change is inevitable, and the aftermarket follows the OEs -- like it or not.
This will intensify competition for quick delivery as other OEs respond. That will raise expectations for delivery speed for aftermarket products as well.
As a few manufacturers and WDs come up with innovations and a stronger commitment to shorter delivery times, competition in our industry will increase as well, and it won't take long.
This could impact on how, or whether, OEs sell aftermarket products through their dealerships. It could potentially make it more difficult for them and create opportunities for the traditional dealer.
If this improves the OE Customer Satisfaction Index ratings, it would also improve the aftermarket's. YES!
If this enables dealerships to cut inventories, it should work for aftermarket dealers as well.
Cutting inventories for aftermarket dealers could enable them to expand their product offerings, making them even more competitive with auto dealerships who offer more limited selection.
For restylers, dealers and WDs who sell to car dealerships, this could mean an immediate demand for faster service.
If the change can lead the industry out of the current rebate system and into higher profitability for everyone, the same thing should work for us. I doubt the profitability part. It would more likely take a little pressure off pricing and put it more on to service for dealers, WDs and accessory manufacturers alike.
If it makes it easier for the OEs to sell and install a wider range of products, it should also work for aftermarket products if we change the emphasis.
Obviously some products (caps) are influenced more by delivery times than others. We need to constantly strive to do better. This is just one more news item that prepares us for continuing our efforts to provide better products and services. |
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| Dave Herrmeyer @ 12:49:00 PM | |
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