Well here we are beginning the 2010 year in the auto industry.  This year will bring an awaited recovery to the dealership environment.  We must not forget that it is about the people that we hire to play the pivotal positions within the dealership.  Dealership management has a lot of talent to chose from and must take advantage of this.  There are some talented automotive people that are ready to join your team.  It is easy to take the first applicant that applies so we can move on to our next task.  More thought needs to go into adding a member to your team.  Can they perform at a high level?  What is the applicants depth of knowledge?  Does the applicant have multiple talents that can be utilized?  Having strong interchangable parts within your staff will provide you with a foundation for the future.  Let's hire smarter in 2010 and build a team that will exceed expectations and forecast.

Automotive dealerships all provide service (auto repair facility) to their customers.  As customers are now in a pattern of trying to stretch more use out of the current family vehicles, service advisors around the country are seeing an up-tick in traffic and writing more service.  Turning this into more gross depends on if you have service writers, who just write up the order and do little selling of preventative maintenance on the vehicle rolling through the service department.  And then you have the dealerships that really understand that service advisors, those who actually identify, diagnose, and explain how preventative measures can save vehicle owners future maintenance and repairs. A consulting approach on the service drive can turn the increase in R.O. volume into gross profit and increase the dealership absorption that will surely add to the net profit of any dealership. Service advisors are also effective when it comes to fielding incoming service calls that should always result in appointments, when service writers are called they treat the calls more like “411” and provide enough information that enables your customers to shop the issues with their vehicles. Examine if you have service advisors or service writers and determine how you can increase your fixed gross profit, which will eventually float those customers into your showroom.

The next generation of automotive talent is underway, while the industry progressively down-sizes the number of dealerships.  With the unemployment rate soaring auto dealers accross the country are adjusting their lineup like a fantasy football draft.  This is an incredible opportunity for auto dealers to develop new talent and more importantly change the culture of their dealerships.  Other industries are squeezing an incredible amount of talented sales and management people into other employment sectors, and many see the auto industry as a great fit.  Embracing these new faces will be key for future generations of managers.  The industry as a whole should really look to see how the new people are being managed and take this time to develop and cultivate the group of talented people we are getting filtered within our industry.  We have to grow these people and manage them different than we have in the past.  This generation of talent does not respond well to the normal pressure tactics that have been used in the past to manage employees.  If we adjust our thinking and grow them right, our newly created culture will generate higher C.S.I.

Automotive dealership inventory management is something that is talked about often, but is exercised in moderation.  Managers that can properly manage new and pre-owned inventory levels are a key component to successful dealerships accross the country.  In some cases we see dealers that have managers that know how inventory should be managed, but have their hands tied by the dealer when it comes to creating quick turn.  This is a behavior by dealers that have had managers running a department that had either limited knowledge on how or their pay plan was not condusive to adequately manage inventory levels, which can create water and turn issues in either example.  Dealers need to define immediately on turn time to the manager that is responsible and make sure that he/she has the understanding of turn time and wholesale loss control.  Without a plan in place there is an inconsistancy that will assure inventory problems and the cost could be significant.

Genius.  Yes, I think this advertising campaign that General Motors is launching on Monday is exactly what the potential consumer base needs to enable the automotive giant to begin it's rise to the top again.  With  General Motors thinning the product line for more focus on brands that are market leaders and losing brands that only offer the consumer choice while swallowing the thin profits of winning lines.  The automotive consumer will really look and compare and see that General Motors is aggressively moving forward they are likely to attract those consumers that have abandon the GM model due to lack of confidence.  By providing the consumer this return guarantee buyers will consider the brand that has been trusted for generations.  The risk is going to provide a solid pre-owned stock pile for General Motors Dealers in a supply low pre-owned market.  Great job G.M., and between your talented dealers and this campaign, I would look for increase market share and reclaiming a lost customer base. 

When was the last time you discussed employee satisfaction among your management team?  This is a real measurement of your dealership's success, culture, and a glimse into upcoming C.S.I. (customer satisfaction index) scores.  Auto industry managers so often use the pressure to performance management style we lose the employee's ability to learn and understand how they can contribute to the goals of the dealership as a whole.  Giving your staff, from sales to service, the encouragement to move forward within their position for the greater good of the dealership is paramount to achieving employee longevity and stability within your entire staff.  Manager report cards come from the very people they are trying to lead and winning your staff through knowledge, guidance, and encouragement gives great people a sense of purpose and contribution to the good of the entire organization, which will increase performance and commitment.  Many dealerships have bought into this philosophy and have slowed down the revolving door of really talented people.  Tip:  Never have an employee without at least one year tenure shadow, train, or assist in the development of process within your store.  This pitfall, where a relatively new employee that does not understand the process, system, or culture themselves attempts to melt a new piece of fabric into the current environment.  Great teams are put together one position at a time and the managers should have a weekly staff meeting so they can measure the E.S.I. (employee satisfaction index) within the dealership and all departments.  Discussing portions of your dealership culture will enable suttle changes where management can win with the staff while assisting those in need of melting into the entire make up of your store.  Measure your E.S.I. and your C.S.I. will soon follow. 

From a dealer perspective, extended warranties on new and pre-owned vehicles have been a fabric of genuine protection for their customer bases for decades and a stream of revenue in variable and fixed operations.  Extended warranties enable a dealer to maintain a consumers vehicle and increase customer retention for the dealership.  We have seen warranty companies come and go for years, so to us, this is part of the automotive landscape.  Dealers are, in most cases, very sincere in backing any of the products that they have vetted themselves and sold at their dealership, and have paid in hundreds of thousands to right a wrong by endorsing a warranty company that has simply run out of funds and reinvent themselves under a new name to continue an assault against our customers and industry for years.  

With a rise in longevity of consumer vehicle ownership, fixed operations in dealerships have seen a sharp increase in business and the need for extended service contracts that are designed to insulate the consumer against the cost of repairs that often come in numbers that are not budget friendly to the average consumer that lives month to month.  As dealers we must be vigilant in informing the consumer of the advantages to our store bought products vs. extended service contracts that are printed in a number one font and accepted nowhere. 

Any dealership management staff should really look hard at the finance department, where a majority of dealership endorced extended service contracts are sold, and have them lift the mask for the consumer that really does appreciate solid automotive breakdown coverage.  We can back our product because of our servicing and reconditioning of a vehicle, most of the companies are claiming to back vehicles without a proper mechanical inspection of a vehicle, which makes no sense when the risk to large claims can loom for these companies crippling the ability to process and pay claims.  Have your finance department research this and share their finding with our customers.
 

As more and more companies continue to down size the automotive industry begins the push to add some of the cross over talent to its' ranks.  There are many career choices for solid qualified candidates out in the work force, but many are seeing what the auto industry can offer.  With mortgage brokers, investment bankers, hospitality industries, and many more watching the opportunities shrink within the career landscape the auto industry creates a great fit.  It is important to note that this industry takes a little time to master, but provides well above average income throughout the learning curve.  The training is what will make the difference of a candidate succeeding or failing in an industry that is changing to a consumer driven culture.  Auto dealers are emphasizing customer care more than ever as auto manufactures' gear thier product platform toward taking care of customers for retention.  Great auto industry professionals are adjusting the current staff to accomodate such movement.  As one learns the auto industry you will find you can set yourself up for contiuous employment and self fulfilling accomplishment as you compete to move up the ranks within this gratifying industry.  So when considering a career move, look to a business that will always have open arms to qualified individuals that are savy to the many moving parts within the automotive industry. 

Dealership Experts offers career coaching within the automotive industry for veterans or beginners, let us train you for an exciting career where you will never have to worry about the employment market again.

As the "Cash for Clunkers" stimulous program begins a wind down after this weekend the automotive dealerships that participated begin the receivables process.  Right from the start of this program it took federal agencies over-seeing this auto industry stimulous over 45 days to define the parameters that dealers would have to use that would guide them to the seamless stream of rebates.  While some dealers chose to be patient and waited to see how this process would work, many jumped the gun to market with a blitz of advertising anticipating what the rules would entail.  In retrospect, this may have created a cash flow issue within previously liquid organizations.  Then as the flood gates released the program on the 24th of July dealers rushed to get on board what seemed to be a rebate program much aligned to factory specs, not.  It is the responsibility of dealership managers to process qualifying transactions and have a complete understanding of the rules.  Just like in our industry advertising, you should always read the fine print.  Many dealerships are now seeing a significant amount of claims being rejected due to rules tailored into the "Cash for Clunkers" program that disqualify a large number of transactions due to the eagerness to get their share.  The sales results were very promising with the exception of realizing gross profit that may quickly turn into red ink.  It will be interesting to see how this funding or lack there of effects the bottom line of these participating dealers that were not process oriented and how they will untangle the knots that are sure to be left at some dealers door steps.

As a majority of companies reel from the hiring process, the auto industry in entering a hiring boom.  Auto Jobs around the U.S. are plentiful and most dealers are offering bonuses to qualified and seasoned personell.  We have seen an enormous gap in the amount of employees needed to get the job done with the volume increase dealerships are experiencing.  With factories coming on line to meet the demand for autos throughout the country this has opened up employment opportunities throughout the metro areas.  Dallas Texas has a shortage of qualified candidates in over 90% of the dealerships in the DFW area.  Dealers are offering training to those qualified individuals that are career minded to engage and create the next generation of automotive talent.  Job seekers have many avenues within the auto industry.  Dealership Experts offers hundreds of employment opportunities to candidates that are willing to learn a new career.  E-mail employment@dealershipexperts.com for more information. 

Just as dealerships accross America adjust to government assistance in defibulating the volume in a showroom near you, not really knowing the receivables nightmare that may follow due to lack of knowledge and ability to properly audit individual qualifying transactions, enters E-Bay Motors.  Yes, the auction giant will begin assisting General Motors on the west coast in moving new vehicle inventory through the power of an online auction for consumers. 

Will this formula sacrafice gross for volume?  The answer is in the piloting of the dealerships that have been selected and how far the auto consumer will drive to save $100.  If history tells us anything, consumers will drive to save money as with the pre-owned internet market that has enabled many dealerships to reach into markets far away from their PMA and enhance their presence.  Gross profit is traded for volume within the pre-owned market and with margins ever so little on new vehicles we could see a trend that impacts the net profit of dealerships nationwide.  E-Bay Motors will get fees that could exceed the profit of a franchised dealer in some of these transactions, which should concern all dealers that have invested millions in operations that are seeing the profit margin shrink and expenses rise.  Stay tuned for this latest move by the auto experts in Washington that seem to be blind to the reality of gross profit.

When any individual enters the job market seeking employment there are several things to consider.  Are you in search of a job or career?  There is a definitive difference in the two.  A job is an employment position that you settle for to help you attain your long term goals and asperations and you knowingly go forward with no intent of staying the course with that position.  A career is entered with the intent to master the many facets of an industry and become the best at every level that encompasses that particular industry. 
So remember, if you are in the market for a job, it is only fair to enlighten your prospective employer of your intent so that the companie's investment in you is true.  Companies are more likely to invest in a career minded individual with professional training and the inner workings of the employers business providing knowledge, experience, and time that will give the employee the rewards that come with a career and enhance the value of the employee.  A career now becomes your long term goal.

Well, the much anticipated "Cash for Clunkers" program has a full head of steam for automotive dealers all over the U.S.  Dealers have been busy utilizing the funds to move what was an aging new car inventory fleet and taking the cash from Uncle Sam.  After quickly running out of cash not realizing the adaptability of auto dealers to move rapidly into retail mode, the U.S. government is said to have replentished the program with additional funds keeping "Cash for Clunkers" alive.  

But is this a receivables nightmare in the making?  Time will be the teller of that tale when all the money is used up and sitting on the receivables of over 20,000 automotive dealerships' books.  We rely on our managers to make the right decision when qualifying these transactions and unfortunately there will be some dealers that end up with deals that should not have been put into this program for qualifying purposes.  What will happen with these huge balances?  Auto dealers need to still appraise these vehicles as trades to get a snapshot of the exposure.  They also should go through an internal audit daily tracking the program's transactions to have a few heads verify the plausability of the qualifications of each deal limiting your exposure.  With a few simple steps dealers can take the "Cash for Clunkers" program to the bank.

If your dealership would like to see how this program can be receivable proof in your dealership contact Dealership Experts in Dallas for a free initial consultation. 

Automotive jobs are surfacing some of the top talent in the industry with the thinning out of dealers by not only the auto manufactures, but with the closing of many independent auto dealers via the inability to establish adequate floor planning of inventory.  Many banks around the country are pulling out of volitale portions of their portfolios and leaving small dealers with little options to continue without the ability to pay for the most expensive and risky part of any automotive operation, inventory.  If your dealership is not on the hunt to improve in key positions you may miss an opportunity to increase your net profit in variable and fixed operations by moving forward with sub-par employees in key roles.

Internet sales departments and BDC centers within automotive dealerships are becoming more important every day as the print of the past moves onto your desktop.  But are dealers increasingly getting over charged by internet service providers in the pay per click sector, SEO, and SEM?  If your internet department is not the growth area within your store you may be missing the gross profit target and volume to sustain significant profit within this auto market.  It is not about a flashy website, it is about how the back side of your website is put together that will move your store rankings naturally, which in turn can reduce the money your dealership spends monthly.  Let Dealership Experts provide you with a free evaluation of your internet direction today.

Well finally there is a stimulous that everyone in the automotive industry can cheer about.  It's the "Cash for Clunkers" bill.  This is bill that is aligned with the same type of footprint as the "Texas Clean Air Cars" that has been in the state of Texas for a while.  It has created plenty of new and used car, truck, and SUV purchases in the state of Texas and I suspect that if the funding is quick from the government it should pack a great economic stimulous to the one level of the auto industry needing it most, the auto dealers.