Are you better off than this time last year?

[Chuck Hartle]

I am in the middle of writing an article for "The Parts Manager" and I wanted some honest feedback for it?

Question 1:
Is your parts department better off now than it was last year at this time?

Question 2:
Do you feel that your manufacturer has improved or gone backwards in dealing with parts departments... ie terms and conditions, incentives, and such?

Question 3:
What makes (franchises) do you currently have?

Please feel free to post here or you can email me direct at
chartle@partsedge.com

Thanks and Happy New Year!

[Richard]

Question 1:
Is your parts department better off now than it was last year at this time?

Currently, No. Several factors involved here, including the fact that several dealership in my area have changed hands in the last 60 days.

Question 2:
Do you feel that your manufacturer has improved or gone backwards in dealing with parts departments... ie terms and conditions, incentives, and such?

Manufacter still doesn't consider the dealer to be a real customer, worthy of their ear. They do as they please, with no thought to how it will affect OUR business. Case in point; GM Required Stocking; Our list went from almost 2,000 parts, to just over 1,000, now that they have to take the stuff back we don't sell. Most of my obsolete parts? RSG parts from the last 2 yrs. Next; PLUS...We (the dealer body) spend thousands a year meeting the 'standards' for this program, and it is dropped like a rock, and now all those special programs you had to be a PLUS dealer to get, anyone can have. (In other words, stop using me as a Lab Rat; I'm tired of funding your experiments)


Question 3:
What makes (franchises) do you currently have?

Chevrolet, Buick, Cadillac

[DanaC]

Q1: Yes, sales are up 5%, overall positive attitude in dealership. New construction and expansion of facility. Overall, we have remained busy!

Q2- MFG has improved, more partnership relationships, treat us as customers. Established later VOR cutoff times, attitude at PDC's more customer oriented towards dealers.

Q3 - BMW

[Louis]

Question 1:
Is your parts department better off now than it was last year at this time?

About the same. The parts dept. net profit for 2002 was ahead of 2001 and I am forecasting a better year for profits in 2003 but only time will tell. You have to work smarter and harder every year to keep ahead of the previous year.

Question 2:
Do you feel that your manufacturer has improved or gone backwards in dealing with parts departments... ie terms and conditions, incentives, and such?

It seems GM doesn't know what to do with its programs so they keep flip-flopping them around trying to find something that works but causing alot of confusion, distrust, and misinformation (i.e. RSG, order discounts, On A Roll Tire program, "Plus", etc.) I look at it this way. If I lowered my discounts to my wholesale accounts they would say "see ya later" and I wouldn't have the option to come back later and say we made a mistake and you can now have part of your discount back. I could never get away with treating my customers like that. Thats what GM has been doing to it's dealers. All I ask is to be treated the same as I would treat any of my customers. So to answer your question GM definitely went backward in 2002, but they have a chance to change that in 2003.

Question 3:
What makes (franchises) do you currently have?

Olds, Pontiac, Buick, Cadillac, GMC

[DEPRESSED]

Is my parts department better off now than it was a year ago?
HEll NO!!!!!!!!

My inventory value is up, my obsolescence is up and my sales are down. My parts to labor ratio took a nose dive in the fourth quarter. Zero percent financing has killed parts and service.

We are GM and Toyota. GM took away discounts and return reserve last year and it has had a negative impact on my department.

The parts business just isn't fun anymore!

[NetProfits]

Q1: Yes, sales and gross are up but net is down due to recent acquisition that has skyrocketed fixed expenses. Gross on repair orders up due to implementation of matrix pricing. No thanks to GMSPO. Overall morale is up.

Q2: My belief if that many dealers miss the point and relevance of this question. GM is in the business of mainly making money for shareholders. Hence, they probably will never truly perceive dealers as being "their customers ". In their mind, their customer is the end user, the consumer purchasing their vehicles retail. We are only the "tool" of distribution to that end user. If GM could find an alternate and equally effective way of distribution, we'd be in the archives. Until then they will continue to smile in your face.....and you know the rest! Corporate politics at it's best. Now that I have vented, I still feel that GM continues to slide rearward with dealer relations, trustworthiness, programs of the day, incentives etc. Heck, they are just like the government when it comes to money....when they want more, they just take it!

Q3: Presently Chevrolet, previously Cadillac, Oldsmobile, GMC, Pontiac...did I miss one? They are all schooled in the same auditorium.