Thanks for Caring

[Emelaid]

This post is a note of appreciation from myself to my Dealer Principal and all the other Dealers and General Managers right now. My Dealership is one of the domestic stores that is tied up with the GM-Chrysler Hysteria. He has the financial ability to lock the doors and walk away but yet he comes in every day. I can see the toll it is taking on him and the burden he is carrying hoping for the best and yet we are all preparing for the worst. We read comments from all of the experts speculating and making the "let them die" comments and "the domestic car manufacturers quality is substandard" and all of the other garbage the are spewing and it makes me sick. All I know is that this dealership and many others out there have played it straight for over 40 years. We never cheated our customers, employees, the factory, the government or anyone else for that matter. We have overcome recessions, natural disasters, and the unfair placement of not one but two new same brand franchises within 6 miles of our store within the last 10 years. We are making gut wrenching decisions right now that will affect some good honest people who have done nothing wrong. I for one want to say thank you for caring.

[sallen1]

Wow, great post.

Turn a problem over and you will find opportunity! Don't know who said it first but it works in this situation.

In every economic hit to the car business, good dealers got better, great dealers got bigger and bad dealers went away.

This is the time where leaders and motivators make their mark on business. A positive mental attitude every morning, refreshed in the afternoon can and will help thru this tough period. Any dealer properly capitalized and positioned defensively will do just fine. I wouldn't be surprised if those new stores in your area go bust.

Defense: Pare new inventory to one car less than what you think you need. Used cars at 45 days supply, 60 days age max. Focus on fixed ops support: Get sales people to help in the shop (shuttle driving, answering phones). Maximize fixed coverage, cut the extra baggage. Don't know about you but our service business is very busy, so is parts-wholesale. People are fixing vs. replacing.

Ask your employees for ideas. We eliminated uniforms in Parts, bought very nice dress shirts and will save $2700 per year!

Keep your best people and remind everyone that this too soon will pass.

s

[Emelaid]

sallen1,
Thanks for the complement. We do the right things. You are correct in the defense you suggested, we do everything you suggested and more. My Dealer and GM have always kept the new & used inventory clean, 60 day turn on used, 60 day supply of new. Accrued monies for building maintenance, spent money on employee training (fixed and variable), and was/is never afraid to change with the times. Today we made moves with personnel that truly hurt from an emotional point of view. They were the right decisions but hurt nonetheless. He (naturally) did the deeds himself and provided them with a nice severance package. I shook his hand and told him that I too look at this as an opportunity to further hone our skills for when we get through to the other side. As long as the Franchise still exists we will be the "Last Man Standing" in our area.