Watch Out Mr Dealer.

[worldparts]

Dear Mr. or Mrs. Franchised Dealer.

I really hope you are watching your back door. The factory wants to take over your business! Everything I see points to the fact that the factories are BENT on selling direct to the consumer. They tried and failed in Texas. High fives to all who fought and won that battle. But that plan was doomed to fail because it was too obvious, it was too much of a frontal assault. Lets not be to quick to celebrate. They have not abandoned their plans. They are simply falling back, regrouping and hoping the dealers are lulled into a false sense of security. Here is how they will do it. They will come in through the PARTS DEPARTMENT! Did you read the news? Ford to set up parts outlets in Thailand. Right now they are selling hats jackets and apparel. Thats not much of a threat, most dealers dont generate enough gross on those products to pay for their lunch. But once the general public gets used to buying direct whats to stop the factory from moving up to performance parts, then accessories and then replacement parts? By then they will have developed advertising plans focused on buying direct, and will have already invested millions in getting state franchise laws changed. So What will your business be worth when its the next generations turn?


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Bob Van Der Ploeg
bob@worldparts.com http://www.worldparts.com
ICQ: 7660816

[This message has been edited by worldparts (edited 04-12-2001).]

[This message has been edited by worldparts (edited 04-12-2001).]

[This message has been edited by worldparts (edited 04-12-2001).]

[gizmo]

I don't think the OEMs will be able to compete with local dealers unless they're willing to open hundreds if not thousands of PDCs across the nation.

Why? Delivery! No one wants to wait 2-3 days for their parts & they're even less thrilled about paying $25 or more for overnight shipping.

With the exception of Dell & Gateway, almost NO manufacturers sell directly to the public. Why you ask? Because they can't fulfill the order as quickly and accurately as a local dealer. Returns are also a big hassle and involve 2x shipping fees (3x if they exchange the incorrect part for the correct part).

I think it would be foolish to ignore direct sellin attempts by the OEMs, but in the long run I don't think they'll have much success.

[worldparts]

Did you read the article about Ford opening parts stores in Thailand?
http://www.dealersedge.com/dailybriefin ... 0413.htm&2

That is what prompted my post, along with the knowledge that in the late 1930's 80% of the parts purchased in this country were purchased from franchised dealers. Today they have less then 20% of the market. Here are questions that have been running through my mind Is it possible that the OEMs believe that they have missed billions of dollars of revenue because dealers have been so focused on selling new and used cars that they have virtually ignored the parts market? If I can buy an A/C Delco filter, spark plug or battery from Pep Boys and AutoZone why not a tail lamp or an ECM? And what about the lost gross on sheet metal as a result of Taiwan Tin? Both Hyundai and Kia have their entire parts catalog on their website and I have seen documetaion of the fact that Chrysler will do the same in the near future. I dont think the OEMs will sell parts direct this year or the next, but I am not so sure about 5 years from now.


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Bob Van Der Ploeg
bob@worldparts.com
http://www.worldparts.com
ICQ: 7660816

[md113]

"They tried and failed in Texas. High fives to all who fought and won that battle."

I would not be giving high fives just yet. What makes you think the factory stores are not in Texas......."THEY ARE" selling new vehicles,parts and service....and have plans to continue to do so..

[cwalden]

We just recently took on a hyundai franchise
and I have sold parts to customers who have
gotten their part numbers from hyundais web
site after checking to see if correct first.
I dont see it being that bad, an automobile
to most is still something that they know
very little about and would come to a dealer
anyway for service. Now days people want to
protect their investment and have piece of
mind that if anything goes wrong,they can
rely on some one to fix it.
I dont believe any carline will ever capture
back that 80% of the market they supposedly
have lost but if you sell your dealership i.e
personell,experience,ect they will come to
you.

[fburrows]

I cant believe that the manufacturers would jeopardize their relationship with their dealers just to compete with their dealers for the do it yourself market. The parts market in the United States is dealer service departments, chain and independent repair shops and body shops. Every parts department knows what he sells retail over the counter and it is insignificant to his other business

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Frank Burrows
Automotive Business Solutions
frank@autobusiness.org

[worldparts]

Yes. I agree. You will notice in the article ( http://www.dealersedge.com/dailybriefin ... 0413.htm&2 ) it says "to sell parts to wholesale customers". The point is that selling parts directly to any kind of customer is just one step closer to selling cars direct.


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Bob Van Der Ploeg
bob@worldparts.com
http://www.worldparts.com
ICQ: 7660816

[MMiller]

Ford tried to buy 13 Ford dealerships in Indianapolis, IN but the owners stood their ground and Ford moved on to Salt Lake.

Now General Motors is tring to sell parts to our customers directly though a publication that they charge against our advertising account.

Will the assault ever end?