What Does Year 2009 have in store for Auto Industry? Will the present situation get better or worse ? 2008 has been an year of major downturns for auto industry. Suffering huge losses, auto industry is close towards unemployment.
Well, I reckon that the Big Three will become the Big One as Ford takes over GM and Chrysler.
(Yes, I've washed my mouth out. Twice. )
It's finally dawning on people that the primary function of cars is transport. So expect to see a few lifestyle / fashion statement marques bite the dust as we realise that we don't really need ALL the different styles, types, accessories, colours, options, shiny bits, and other assorted crap that has been rammed down our throats ever since Good Old Henry Ford started painting cars in other colours than black.
Instead of say, 20 manufacturers competing with each other to produce variations on the same basic theme, maybe we'll see 2 or 3.
Can anyone say "Economies of Scale" or "Less wasted resources" ?
Eric, I love that forecast for 2009. I mean I don't want to be cold-hearted toward those in the auto industry...and I understand that many would lose their jobs. I have some mechanic friends who specialize in certain auto maker's car work, so they would be put in a bad spot as well.
But, there is so much (read: too much) competition. No I don't think the government should step in and fix everything, no I don't think we should be handing out billions to ceos who visit us here in D.C. with open palms, no I don't want to see so many people lose their jobs. YES, I think there are too many auto makers out there. Consumerism has driven this country into the ground and it's saddening.
We'll see what '09 holds in store for the auto industry...
I'll be happy as long as they keep the Jaguar XKE around
Dealerships are certainly tighten their budgets. I am overseeing the Internet Operations and Digital Marketing efforts for 9 different franchises, and the Motto (coming from the President) is to cut expensive ad spending in the traditional media (TV, Radio, Newpaper), and more likely (thanks God) putting smart spending into the Web. This can mean Third Party Lead providers through edmunds.com, kbb, etc and/or Search Engine Marketing, which has a bigger exposure and is cheaper then the old "Big Three" in conventional advertising.
Further a trend is that General Managers of dealership suddenly starting to "Micro-Manage" their staff. Every phone call, every contact on the car lot has to be put into a CRM tool so that Sales Managers have the opportunity to catch these "lost opportunities", and to call or write to these non-buyers.
Because of tighter budgets from consumer site, Service and Parts Departments will be the key point for surviving and non-surviving dealerships in the United States. Now it will be considered the pay back time for those dealers in the nation, who'd treated customers and prospects like they didn't care, and that they were enogh out there. I guess that we will see around 6,000 dealerships disappear and that domestic brand dealers will be hit twice as hard.
VJ (The VJnator)
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