In head offices it can often be the case of  “Yes Men “.    Otherwise put its the case of the emperor’s clothes.  That is its better to tell the boss he is correct rather than tell him the truth and bear the price.  Of was explained by many a young salesman by an experienced man of the road Harold Howden.  The advice or tale to learn from was “No matter how stupid the idea , it may be the world’s worst idea …… yet it may be the brainstorm innovation out of the president of the company , who is sitting right next to you.  So it goes with what was the major and dominant industry of America – the auto manufacturing industry.  While the market leader  G.M. could be said to have the most developed set of rules and bureaucratic procedures and management “upstairs”  in its executive suites and exec dining suites devoid of reality, while giving the rah rah rah and such non-illustrous projects as the Chevrolet Lumina.  It might be said that although the Chevrolet Corvair later went on to earn a reputation , ill-deserved, as an unsafe car, it was at least innovative and a step forward.   The Corvair was meant to counteract the rear engined, aluminum block becoming popular import German Volkswagen VW original “Beetle”.  Noted Winnipeg auto expert and teller of tales expertise in this area William Simpson was that it was not the car – but Canadian and North American drivers who basically had no training and expertise with rear engine vehicles.  In an emergency or dangerous situation they would revert back to standard US type driving procedures and end up in the ditch or worse.   Yet the Lumina was not innovative and illustrates the dangers of head office yes man thinking.

Yet in 2013 Ford Canada head office and its social marketing department has a winner.  It responded well to its consumers who wanted more information and help with their purchased vehicles – Ford cars and trucks.  Whether its a Ford truck – a F150 ,250 , 350 etc, a SUV such as an Edge or Explorer or a run of the mill Fiesta, Focus , Fusion or Taurus- all the owner has to do is enter their Vehicle Identification Number VIN online at the web url  Myford.ca.  Up pops the actual information on the car history itself and as well alerts , recalls plus deals at the dealership of purchase.

It works out well and simply for the automobile owner themselves and on top of that provides for a greater interaction and building of an interactive relationship with the dealer.  Dealers too get feedback from the buyers and are in  much greater position for relationship building and selling.  After all deals come along – be they service or new vehicle promotions.  Its target marketing at a good stead.  On top of that its a win-win situation for all rather than more of the ram it down their throats mud against the wall approach of newspaper mass media and even Google ads.

Workup is on a Yahoo platform.

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An amazing tale of how a number of mid 1950 GM “Motorama” show cars were saved from extinction and now are with us today in 2013.

If not for the stick to it ness – or perhaps laziness of one well known “junker”  auto junkyard owner these would be long gone.

It seems that the owner ( and father_  Harry Warholak Jr.  acquired these classic one of a kind cars for “destruction” and either as you see it “saved them “  as unique classic car memorabilia or perhaps as an alternative tack was just to lazy to send them out for junk metal.  Prices may of been low that low perhaps – or maybe it was a case that these vintage 1950 era Cadillac Town cars , Cadillac Le Salle Roadster, Chevy Biscayne as well as the Cadillac Brougham Town Cars were just to authentic , unique and exciting to let go to the “shredder”.  Yet to many these were “old cars“  that had little interest or value. Even if the Cadillac were upper end luxury collectible vehicles.

Why not more cars saved  ?  Interestingly the story or legend goes that someone from General Motors GM head office – chanced to see some of the collection of “Motorama ” show cars were being toted around on a flat bed trailer and put the word out via corporate channels to put an end to it.  These vehicles were unique , had unique styling and stylings that perhaps were not out in production models off or coming off in the future GM production lines – and it was best to keep under wraps.

Interestingly the question is – are these autos with their setups readily licenseable   for road use or will it be a case that once fully restored they will be taken from auto show to auto show on flatbed trailers.  Additionally will the younger generations treasure these automobiles as well ?

Interestingly enough it was a combination ,happen chance and determination that led to the “discovery” of this treasure trove of vintage 50 real American made vehicles .  Its not as if you have to travel to Cuba to see these relics.  While it was an open secret to the “G.M. Guys”  in Detroit of the existence of these vehicles,  it was only an urban legend of the existence of them.  Why draw attention to the package and cause trouble – were the thoughts of the GM head office aficionados.  In the early 1970′s   GM Heritage Center’s  vintage auto curator Mr. Wallace spotted them sitting in a semi-trailer at the yard while searching for motorcycle parts . Years later the young son of a GM employee Joe Bortz  read an article “Then there was an article about dream cars and my collection—I’d really just gotten started—in Automobile Quarterly in 1988 [Vol. 26, No. 3], and there was this sidebar about this urban legend that there were Motorama cars in a yard outside Detroit” Michigan.

It was urban legend of these GM “Motorama” cars sitting in a yard “just outside of Detroit”.  It was a phone call that followed and an old friendship between Harry & Joe Bortz – the father that cemented the results.

http://www.caranddriver.com/features/their-ghosts-still-haunt-the-place-how-four-gm-motorama-show-cars-were-saved-from-the-scrap-heap-feature

Nepon Auto – Automotive Industry Blog

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Interesting information can be derived from this article : “Cars made in Brazil are deadly” .

The summary of the article is “The cars roll endlessly off the local assembly lines

of the industry’s biggest automakers, more than 10,000 a day, into the eager hands of Brazil’s new middle class. The shiny new Fords, Fiats, and Chevrolets tell the tale of an economy in full bloom that now boasts the fourth largest auto market in the world.”

And yet a more information about the automotive trade and the manufacturing as well as safety of cars , trucks , SUVs and other vehicles on roads and highways can be gleamed.

First of all the growth – or the greatest growth rates in auto purchasing is in the “developing third world“.  Read China,  India , Latin America including Mexico & Brazil.  Secondly while the major “Big 3″ – GM,Ford & Chrysler – would be expected to be in these markets – as standard players with product and expertise – smaller players like French Renault & the Chinese with export model low entry variants abound.  Add to the mix of course the Japanese  Toyota etc  & South Korean car producers.  Secondly profit margins are very high – 10 % versus 5 % globally and 3% in the USA.  Yet accident rates are 4 times as high in Brazil as on American roads.  And these accidents are not just fender benders but are much more lethal and disfiguring.  While it may be said that the culprits are the poor roads of Brazil and 3rd world countries and the driving habits of  the locals – the lack of safety features and especially poor body frame integrity can be held as a most major feature.  Interestingly , aside from lack of automobile safety laws its the price of power bills that can be said to be the most factor ,.

Its often been noted and said by business  people in the 3′rd world & Mexicans that large companies dump old and expired goods on markets such as Mexico.  Areas of the Mexican Yucutan are not only noted for their beautiful beaches & fishing tournaments , historical sites such as the Mayan Ruins of Chichen Itza, restaurants -  but also a good place for large retail operations and big box stores to “dump goods“.  Its possible to sell old unwanted product , marketing mistakes  and auto sales by export sales – selling excess goods on these markets and consumers.  True they get value and bargains & access to goods and services that these “poor people” might not otherwise have.

Yet many of the “entry level vehicles“  that are sold into Brazil are downright unsafe yet they make good money for those who make and sell them .  While its true that Brazil has few auto safety rules and that basic safety features in cars that have been commonplace in the “industrial world” for years are not installed nor is it required they be in Brazil and other similar markets.  Read air-bags , ABS brakes, crumple designs and the like. True the auto makers are following the rules.  Yet most entry level cars here yield only one star put of five in vehicle accident tests and are rated poorly.  What is a minor walk away accident are killers and maimers in Brazil & such other driving /auto sales markets as Mexico.

Interestingly one of the major factors that come into play in terms of solid car and vehicle safety in collisions are the amount of “spot welds” and welding leading to body integrity or lack there of.  The dangers and weak points come down to basics themselves.  Lack of body reinforcements , the use of lower quality steel metals in car bodies and lastly weaker or even fewer weld spots in the auto making and auto manufacturing processes  themselves. Essentially put “The secret of a car’s body being able to withstand real world accidents and collisions ( and the values measured in industry and road safety authorities crash tests)  are the weld spots“.

This brings us to last powerful determinant .  In a practical sense its the price of electricity and power bills.  While power may be cheap – even if derived from hydro water dams, its the price of delivery and  transmission that is a major component of the actual price and cost of power delivered to consumers and the manufacturing industries.  20 % of the cost of building cars overall ( at least in Brazil)  is the price of power.  Hence fewer & not as good spot welds are the result.  Saving welding costs can substantially increase profits on the production line and lines.  Its as simple as that. Yet there is no disputing that entry level vehicles  being sold into these markets are downright dangerous and need not be.  One company VW is to praised for maintaining global standards on welds on its products globally.

In the end it can be said that what was the situation in the US in the 1960s is playing out in the 3rd world and developing countries.  The role of the automakers is to make product and profits.  They are observing local laws.  Yet over time and consumer demand auto safety legislation and standards will most likely develop and come into play.  Its better and more solid both for auto owners, their passengers , their communities and also the auto makers who will better and more long term solid markets.

Nepon Auto

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Gone are the days of big mark ups on standard products in the retail trades.  This used to be the lay of the retail trade whether it was big ticket items like cars, trucks and smaller items like TVs, freezers , sewing machines etc etc.

People it seems “just seem to know more now“.  This came even before the advent of the internet and easy access to the internet with its knowledge based riches.  Time was when auto dealers made their money and profits “selling cars”.  A car or truck was its own model and woe be to the automobile buyer who asked the salesperson – how is this Chevy different than the Ford or even brand new 2013   model.  They would get a look of disdain from the auto salesperson “This is a Chevrolet and that is a Ford“.  They might of even been shown the door and basically told not to “come back”  ( to the factory authorized dealership) again.  Not its a case of i will go to your or another dealer’s home page , browse online and not have to talk to you ( the moronic salesperson) ever again.

More objective sources of information such as Consumer’s Reports became widely available and respected.  Yet the factories and head office types held on to their belief structures.  At one point the talk in the lay press was the answer an auto industry exec gave ( or perhaps  disdainful comment)  to an auto industry journalist.  When asked about the rankings and ratings  in Consumers Reports of a major upcoming ( much ballyhooed) product  ( from head  office)   the exec replied that ” those don’t hold much water with us”. It sure does not look like a Ford Escort nor a F150 Crew Cab Truck.  The automotive industry sector specialized journalist essentially just gulped.

The point here is that auto buyers and consumers have a tremendous of wealth of information at their quick access.  Its hard to make money on selling new vehicles.  Used cars and trucks are  another story as the price paid is not as certain or the product may be in short supply to the one buyer who is on the lot.

So how can a dealership turn a profit on vehicle sales other than just future goodwill and service down the line.  Comebacks are not greenbacks and their no guarantee of future sales , customer loyalty and the truck, car or crossover SUV sitting in the service bay at all.

The answer lies in emulating big box stores.  Big box stores may not be able to make money on that highly discounted  iPhone  ,Apple iPad  tablet  , or Samsung LCD or Plasma big screen TV. Yet they do make money on accessories including extended warranties.  The expression among salespeople is that the first sale is the hardest then it rolls  down the road like a brand new  shiny 2013 Buick .  Alternatively once you got the wallet out or the first commitment its much easier if not a snap to sell the rest of the add-ons  .  And all at good profit.

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There is no doubt about it – read the media , newspapers and on-line.  Immigration and immigrants .  The whole topic and areas of topics are no doubt controversial and full of controversy.  It has always been said that at least two areas are topics of conversation that you can stay away from -  that you just “cannot win” – that you should enter into in especially if you are in “business“.   These are politics, religion and perhaps now immigration and immigration reform.

Yet “we are all immigrants”.  In Canada even the longest standing group – that is aboriginal native “Indians”  are immigrants that came over the land bridge of the Bering Sea eons and eons ago.   Canada is a land built on immigration and immigrants so what is there not to discuss ?  People and their families need services and in this case transportation and update and maintenance of their vehicles.  So why should this not be looked at ?  In some areas of the world , or densely packed regional urban areas mass transportation fullfills that need. Yet in Canada and especially cold climate Winnipeg & even more so rural Manitoba regions reliable transportation is needed in the cold winter seasons and long distances.  Shopping needs to be done, distances are large, mass transit schedules are not frequent etc etc etc.  Add to this the fact that many people need a vehicle to get them to work to create and produce that family income to begin with.  So hello car , truck ,SUV  van  or Crossover ownership or lease. It sure does not look like a Ford Escort nor a F150 Crew Cab Truck.

Hence the immigrant community as a market – this provides a ready group or some say a target of opportunity.  Yet just look at how some auto sales groups or even brand name dealerships target this group.  Its as if they see them as “wetbacks”  or “marks”  just “off the boat” or in 2012 / 2013 “just off the plane”.  One tactic is to apply languages served or offered as “bait”

Well some sales organizations and dealers in the auto trades go as far as to learn the language or languages of new large volume groups others just border on the farcical.   They bona-fide groups are to be congratulated and commended as actually being of depth . While it might be said that are superficial and self-seeking while at least they are doing “the work”.  True in life its a fact of life that most people – except not for Mother Teresa , self motivation is a vital trait of mankind.  Good or bad its a fact of the human animal.  This is what motivates mankind – and hopefully for good.   Even Mother Teresa had her critics who pointed out that she was blissfully ignorant or even ignored the origins of the despots whose funding she often demanded.  Yet their is a far cry from a sales person , agent or dealer principal who take the time and effort to either learn a language to better deal and make comfortable an ethnic group or perhaps sponsor an event or pavilion at Winnipeg’s internationally known “Festival of Nations’  Folklorama  and a dealer who lists the translated phrase “spoken here” in every language across the globe on their front door and window.  Whom do they think they are  – the United Nations and everyone who enters their doors future marks ?  Some even place the flags of their world on their dealership lot – prominently.  Its as if every salesperson who rotated through their employment pool – at one time – over the years  ( and is long gone rotating through a legion of other auto lots)  got their own flag.

Its better to deal with “people ” fairly and legitimately .  This is the best policy overall no doubt.

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Its an interesting case of hoopla in the auto industry , proof of claims in a time of widespread dissemination and questionable claims by auto accessory makers.  After all we live in a time when huge scads of cash are made on late night infomercials.  Auto Preservation Inc. , a Canadian firm that markets an automotive rust prevention product  recently invited members of the media to actually tour their research and design lab.

The goal by the principles of the firm it seems were to actually explain how the module or modules work on modern day Chevies , , Fords etc in our cold Canadian and Northern US climates.  On hand were qualified and certified staff – the actual inventor of the device , a corrosion expert  as well as a staff electrochemist.  Yet it is not as if you can just get an off the lot deal at Costco for a Ford Mustang  XTR  F250 350.Some time ago in the US ( early 2000 decade)  an actual legal battle was fought  with the consumer protection office  of the  federal competition bureau over claims of the device and its makers.  Then it was a simple legal case of providing proof. Proof it seems from an independent testing lab was done – and the award was made in due course.

How did they explain the workings of this what could be described as technical and complex device so that layman could understand and comprehend . Well actually they seemed to have a gift for making the complex simple , and then providing proof in terms of a peer reviewed published paper in the gold standard and benchmark of their professional field -  the “Electrochemical Society”  and more specifically the Journal of the Electrochemical Society.

This firm and trio should be commended for both their approach , planning and work through in such an organized and well done manner and fashion.  Simple as that.  Yet it can be said with advertising , marketing and the automotive industries the more things change the more they fundamentally stay the same.  Even as simple an example of the original Ford Model T plant will make that clear none the less.

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Based on simple laws of economics – that is cash prices you would think that imports of auto say by truck dealerships  in or a car dealer in Winnipeg would be strong.  Yet the facts don’t follow this trend and trending. In fact its the exact opposite.

A couple of years ago with a strong ( par or better)  Canadian dollar vs American dollars an anomaly occurred.  Retail auto sales – that is individual auto buyers , could by the same car or truck in the United States, import it , pay all Canadian government duties and still be way ahead of the game ( in dollars costings for the product).  It was pricing in more competitive markets ( the USA)  vs a more closed market ( Canada).  The humor ( or perhaps dark side) of the equation was that a  person could buy a Canadian made Toyota – say a Toyota Matrix or Corolla , that was made in Woodstock Ontario - had been exported to the states under NAFTA rules, repatriate said auto and be way ahead still. Go figure. Perhaps it is a wise idea to .  Yet some consumers like the older pre-2012 Ford Escape than the newer model 2013 Ford Escape SUVs.

Indeed at that point it got so bad that the response and reply of the Canadian auto industry – retail and factory was threats.  Indeed a person going to buy that Canadian made Toyota or  Honda in the states was seen as a liar and thief – for a  perfectly legal commercial transaction.  Some automakers- say Honda restricted warranties to coverage only in the US for short term buyers who “exported”  the vehicle in a flash.  Others like Toyota figured it was better to build relationships , business was long term and honored warranties to Canadians. It might of been not legal yet many Canadians ( who are rather more conservative than Americans overall), yet the tactic sure dissuaded more than one Canadian potential buyer.  Others thought it was their chance at the big ticket lottery win.  Import say a Lexus, work out the percentages and voila.  Yet add in time , costs and most importantly -  that people who are going to buy a higher end vehicle want to be pandered rather than a deal , and voila it was not such a windfall after all.

Back t o 2012.  While its true that the Canadian dollar is at or close to par with its U.S. counterpart the figures show that the amount of autos - cars , trucks , SUVs and vans overall is down not up.  Indeed some truck dealerships are finding its better , easier and cheaper to source at home in Richmond or British Columbia after all.  At least it saves city wide  Winnipeg baliff services.  Click here to download Adobe Flash player or Google Chrome.

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According to the latest stats & figures Canadians have the recorded highest levels of  “non-mortgage debt”.  Non mortgage debt is money owed for loans and purchases other than simply the family homestead.   Included could be charge cards , standard loans to the bank and auto finance loans and auto financing.  This number sits at approx $ 26,000.  This increase or “jump”  in debt rose overall at a yearly increase of 2.4 %.  What is driving the overall increase are auto loans – which sit at about a yearly increase of 13 %.

Yet two areas of interest.  First why the increase ?  Is it huge increases in the cost of the product ?  Not really apparent unless consumers and auto buyers are moving upscale luxury auto wise to the likes of Cadillacs , Mercedes , Porsche’s and the like up from old standards like good old fashioned Toyotas & Chevies.  Lets not forget good old fashioned reliable Fords. More likely the increase in debt load proffers an overall increase in auto sales. Good news.

Secondly is an auto financing charge and costs a debt or an “investment”.  Having a vehicle may directly allow a person to earn an income – say a delivery person  or alternatively it may allow them to earn a living by providing reliable transportation to work so that they be provided with that regular paycheck.  Bus schedules may not exist or be convenient to afford them a regular and reliable appearance at their workplace  for their job or position  to earn said income .

Hence even if there is an increase in Canadian’s debt load due to an increase in auto finance levels – this can overall be seen in a good light – that is unless the Winnipeg baliff  arrives and tows away the mini-van, truck , SUV or car.  Alternatively its no fun seeing the professional process server at your door one cold Winnnipeg morning.  Or waiting at the bus stop in the 40 below zero January Manitoba winter weather.   Download android app here.

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The Headline Screams :  “Treasury: U.S. to lose $25 billion on auto bailout”

Is this wise or prudent business practice ?

Is subsiding one larger operations or operations a wise idea – or rather should you the US auto industry be punished for its largesse and the US government / Canadian politicians who allowed abuse of the companies in the process on following international trade.  Or is a Chevrolet or Buick still a good car from a well managed company ?  Add in a GMC U.S. made truck to that marketing mix.

Its not unlike the “too big to fail“  banks in the financial and financial service industries.  Yet when issues arise the whole scenario is now a case of extortion to the rest of the banking system and financial blackmail.

Interestingly enough -  GMs major profit centers currently are not  in the good old domestic US auto sales marketplace but rather China.

Its the age old question of retail sales – and auto sales in particular.  On site of off site.  That is do you sell your cars and trucks off your lot or hold satellite or offsite auto sales ?

While there is no question that “overhead runs 24 hours a day“  and why on earth would the dealership spend the money if not to use it – a new and novel site or sites offer advantages.  First of all the sales may be closer to customers or potentially new found customers.  Its a case of location , location and location.  Its found or extra business – that is if you don’t forget your core values (  and costs).

Secondly its not always a case of a tent sale at Garden City Shopping Center always – but rather a smaller and more restrained venue.  Perhaps for example a car or two in the mall itself , or  a smaller office is said shopping mall.  Its a case of if the mountain will not go to Jack – Jack ( or Jill) can go to the mountain.

Once business starts and rolls in – and local networking begins- costs may be well more than covered.  Its extra business and visibility no doubt.  Its all as simple as 1,23 and also – business is not so simple as it used to be where all you had to do was open your doors and be “open “.

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