F&I and Showroom, Industry Summit 2016
www fi magazine com 22 F I and Showroom Industry Summit 2016 ON THE POINT plotting to set up online stores and get rid of salespeople managers and yes even dealers The plot is to sell directly to the public and ultimately to turn your dealership into a delivery center for their sales and profits If you sell Dodge Chargers youre trying to beat the national average of 428 profit on a 28000 car Thats not a profit Thats a gratuity Ive said it before and Ill continue to scream it from the mountaintops Manufacturers and vendors are colluding to destroy dealers and take over sales and distribution The plan is to do it with data and online technology by marketing directly to the consumer The flaw in this tactic is the human factor which they have no ability to relate to Speaking of which CADILLAC IS SWIRLING DOWN THE TOILET Why do manufacturers continue to put blind faith and precious resources toward bad plans and the crackpots who conceive them I wrote about this more than a year ago when the then incoming Cadillac president Johan de Nysschen gave details of his long term marketing strategy for the company At the time I thought it must be April Fools Day He couldnt possibly be serious Could he De Nysschens grand plan is to throw away Cadillacs core customers and replace them with upscale European luxury import buyers Nobody asked my advice but if they had I would have told them that aint gonna happen Its the same mistake Lincoln made five years ago and we can see how well that worked Then he moved the headquarters to New York Brilliant Finally last month de Nysschen outlined his next step with plans to turn smaller Cadillac dealerships into virtual showrooms In other words he plans to make them online delivery centers It appears his goal is to reduce his headcount If that is the case he would have to depend on the metro market big city dealers to carry the brand after he assassinates the little guys I have bought nine Escalades two SRXs one XLR and one used Corvette from my local Cadillac dealer since 1990 But I have also bought a Buick and a Ford from dealers who were closer to my home because my Cadillac dealer is 20 miles away I even had my Caddies serviced at the Buick dealer for the same reason Thats the truth And there are thousands and thousands like me Are you making more than 428 in profit on the 28000 Dodge Charger If so the author says you may be surprised to learn youre ahead of the national average COURTESY FIAT CHRYSLER AUTOMOBILES Johan de Nysschen left president of General Motors Cadillac division stands with Dan Amman president of GM at the Paris Motor Show Ziegler fears de Nysschens plan to reposition Cadillac as a European highline competitor could lead to the brands demise COURTESY GENERAL MOTORS LLC
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