Tuesday, April 21, 2009

Take the Bull by the Horns and Take Action


  • DEALERS AND MANAGEMENT REPORT
    A challenging perspective
    Dave Kemp, the Automotivator

    Provide the taxpayer's money to the taxpayer to buy vehicles.
    The auto sector is in trouble, but it won’t be terminal if we quit talking bull and grab the bull by the horns. The world wide automobile industry needs immediate stimulus but not the factory bail out type of stimulus. There is a very quick and positive solution to our economic problem that will impact on every part of the economy, not just the retail car industry.
    We need to provide the taxpayer's money to the taxpayer to buy vehicles to kick start the factories. There is no value to providing taxpayers money to idle, unproducing manufacturing plants.
    We need to create demand now and the automobile manufacturer’s problem will vanish. So will the politicians problems improve. The retail dealers need to create real pressure on the USA and Canadian governments and across the world in G20 countries to make major cash incentives available directly to the buyer not the manufacturer.
    Key Point
    This can’t be just a token amount of cash incentive. It has to be a major impact incentive to the retail buyer. It has to explode the lethargy and fear factors of millions of buyers needing vehicles. The goal is to jolt the potential buyers to buy now. Money talks.
    We have virtually millions of owners driving vehicles four to 10 years old that need to be replaced. Scrap heap 7 year and older vehicles that desperately need to be replaced in the best interests of the owners and the countries—serious incentives for scrapping vehicles is required. These vehicles are inefficient, lack safety advantages and most definitely not meeting the current needs of their families.
    Rick Gauthier, President of the CADA is right.
    "The system is broken down. Credit is not flowing through the system. So we need to get creative." The government needs to encourage credit and car loans available for more buyers. It is a sham response for parliament and congress to talk but not take tangible, specific action for the retail buyers. Credit should be made available to dealers to inventory vehicles.
    The Facts
    In Canada alone over 6,000,000 people bought vehicles 4, 5, 6 and 7 years ago.
    These old cars and trucks don’t meet the owner’s needs anymore.
    People are postponing buying to their detriment in your town and this country every day, week and month.
    Most potential buyers have good jobs, steady employment and available credit.
    Thousands of people in your community need to get out of vehicles that are paid off or nearly paid off. Why?
    The average repair bill to keep their vehicles safe and running is too costly—over $2000.
    The fact is, these vehicles need and are ready to be traded.

    We need to create significant motivation to overcome fear, lethargy and indifference in an uncertain public now! We need to create credit availability and financial incentives that drive the buyers into the showrooms now.
    The resulting demand for vehicles will have a huge impact on the parts manufacturers and vehicle makers. It will immediately stimulate employment. Income earning workers will drive the economy out of this mess.
    It will be the entrepreneurial car dealers, motivated and effective sales leaders and quality sales professionals who will ultimately deliver the country out of this mess.
    The financial sector caused this downfall. It was caused by greed, and unethical mortgage practices made worse by complicated, mismanaged credit and inept corporate financial leadership.
    For sure it is necessary for auto manufacturers to right their ships and improve profitability by decisive and essential actions. For sure the CAW and UAW unions needs to be held accountable for their blackmail over these many years. For sure the NA manufacturers caved in for expedient, short term gain and now, long term pain. But this can be dealt with effectively with fresh, creative commitment from all parties.
    Don’t be mislead by left leaning media. This is not a ‘made in North America’ problem. All manufacturers, from Asia to Europe have been impacted by this melt down.
    President Obama says the nation “cannot make the survival of our auto industry dependent on an unending flow of tax dollars.”
  • I agree. But we sure as heck can’t have him, a guy who has never really worked for a living in a business environment acting as defacto CEO of our automobile business.
    Make no mistake about this—if Obama gets traction in this auto business it will be incredibly disastrous for the entire population. Can you even imagine the possibly—Government mandated vehicle design and distribution channels? They can’t even get their own house in order.
    Don't leave this to someone else. Take the personal responsibility today, right now, to connect strongly with your elected officials to get this done. Especially don't leave this to the government bureaucracy! They are going to screw this up. Giving money to the non-producing companies is insane. Create vehicle demand and you solve the manufacturer’s problem and the world wide problems. It will also cost far less than a bailout. I have called and contact my Member of Parliament and provincial representatives today. Let’s all act together. Today!

    Dave Kemp, the Automotivator, is President of Automotivator Professional Development and Trackstar International Follow-up Systems. Dave, a car industry expert who focuses on improving the sales process for dealers and manufacturers with great results. Contact info. http://www.automotivator.com/ Email Dave@Automotivator.com 1-800-668-0362

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