While the average person may not have much interest in automotive industry news, a lot of useful information can be obtained. This would include the interesting reasoning behind why you can’t always find the car you want at a dealership. Many consultants push for dealers to listen to the customers and their needs. Though this suggestion would work when you look at it theoretically, there are some things that are stopping it from happening.
It is not actually the dealers that are dropping the ball most of the time; it’s the automakers themselves. They may not ship what has been requested by the How To Become An Electrician Apprentice dealers, instead shipping the vehicle they want. This leaves the dealers with an inventory that isn’t what they requested or what their customers want.
This unfortunate circumstance leaves the dealer with the choice of resorting to hard sell tactics or letting the vehicles sit around forever. Those hard to sell cars can continue to sit for a while, but ultimately they will create problems for the dealer, as no customer may really want to buy them. You either hope they have the vehicle you want or sometimes settling on another choice.
Continued build up of those vehicles can leave the dealer with absolutely no cars that will fit their customers’ needs or wants. You will definitely want to figure this in when you head into that local dealership and don’t see a car you want.
Those hard to sell vehicles that continue to sit around are called a “brown banana”, because it’s become overripe and the Finding A Manufacturer To Make Your Product value has been going down as it continues to sit around. At this point what can a dealer really do about that problem?
Giving away the cars free, while it might thrill customers, is something that isn’t going to happen. Even when they knock off a lot of money on the price, they are hurting themselves as dealerships are held to making a certain amount of profit. If they don’t make that amount of profit, they could be shut down.
Of course dealers could head back to the days when hard sells were being used all the time. However, that isn’t going to make a customer happy in any way. Many people hated to see a salesperson walking up them in those days.
You’ve probably had it done before – you know the old “let me see those keys” routine. They would state they needed to look at your car to value it for trade-in, however, once those keys were gone it took some might serious persuasion for them to bring your car around so you could leave.
It was a process that earned many people a bad reputation in the past. They would wear you down over time, until you would finally agree to the sale. Not only would you get a car you weren’t really sure you wanted, but you may have put yourself into too …
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Break Even Point For The US Domestic Auto Industry
In April 2009 Ford declared that it would not need government aid and claimed that it had a plan to break even in two years. Ford has been ahead of its main rival General Motors in scaling down its business by selling Aston Martin, Land Rover Strategic Issues In Manufacturing Industry and Jaguar over the past two years. GM, meanwhile, went through a massive reorganization after filing for Chapter 11 bankruptcy proceedings. GM is temporarily majority owned by US government after it invested $57.6 billion in the company.
Per the plan GM executives presented in congressional hearings the company would reach the break-even point by 2011. They further declared that they would cut costs by eliminating 47,000 jobs, closing five more unprofitable factories and cut at least $18 billion in debt from its balance sheet. It was expected that these cost cuts would allow the company to break even when the U.S. auto market returned to between 11.5 million to 12 million vehicles sold per year.
J.D Power and Associates, a global marketing information services firm, announced its projections about the new automotive industry break-even point. According to Gary Dilts, senior vice president of U.S. automotive at J.D. Power and Associates, due to cost-cutting measures such as renegotiation of union and supplier contracts, the break-even point for the domestic automotive industry will decrease by more than 2 million units when comparing current industry conditions to those forecast in 2010. Dilts explains the reason for this decrease due to the significant declines in the auto industry which resulted in lost sales volume of more than 7 million units between 2000 and 2009. This sales volume makes $175 billion in net revenue.
In automobile industry fixed costs make up a greater portion of total costs. The manufacturing plants, assembly lines and technology invested to build vehicles are some of the items forming the fixed costs. Compared to fixed costs, variable costs form a relatively smaller portion of the total costs. This puts the auto industry into a risky situation due to high operating leverage.
The definition of the operating leverage is the ratio of fixed costs to total costs. The higher a firm’s fixed costs, the higher its operating leverage. In firms having high operating leverage, small percentage changes in sales volumes result in large percentage changes in profits. This variability or sensitivity of profits to changes in sales volume put the firm into a risky position. Per the “Greater Risk, Greater Return” rule this also means more profit if demand and therefore sales volume is high.
In automobile industry since fixed costs are relatively high, during the recession times, as the demand and sales volume go down the likelihood of earnings to cover the fixed costs will decrease, i.e. it will be more difficult for the automobile companies to break even. Therefore the automobile companies start cutting the costs, especially fixed costs, like closing the unprofitable facilities, eliminating jobs. For example, GM sold its unprofitable Hummer to a Chinese company.
The …
China Versus Google – Someone Appears to Be Missing the Point Here
It has been said in intelligence circles within the intelligence industrial complex that there are over 6000 industrial and military Chinese spies in the United States. That’s rather problematic for a nation that the US holds as a major trading partner. It’s getting harder and harder to do business even as China’s best customer, as we watch our intellectual capital being siphoned from our shores.
Of course, it’s not just the spies in country, but also the Internet hackers working with the government and defense sector in China that are using online spying strategies, phishing, and cyber attacks to gain access to top-secret information at corporations, government agencies, and even the military.
Not long ago there was an interesting Blog post on Read-Write-Web Online Blogging Network which was titled; “China Slams Google for Being a ‘Tool for Political Contention'” by the no BS blogger and international GEO Politics expert Dan Rowinski posted on June 6, 2011. Dan stated in his article;
“Google claimed last week that China was behind a massive phishing hack of Gmail accounts that included U.S. government officials, human rights activists and journalists. China has fired back at the search giant, warning Google to stay away from Latest Technology Trends 2018 being a political tool. The supposed hack last week came from Jinan, China, according to Google, which has had an icy relationship in the past. Outside of censorship and Google’s partial pull out of China, Gmail has been a point of contention.”
Now then, one might ask why top US Government Officials are using Gmail, but to that I might add, why are you? You see, non-government business, personal stuff, doesn’t belong on government official email systems, but if Chinese government sponsored hackers are gaining personal information Rise Of The Service Economy on US officials, they can use that information to spy on them or gain access to more information that is government related see that point? It’s a real issue, but anyone who reads spy novels knows that, or anyone working in the intelligence industrial complex is well aware of this.
If a Chinese spy knows where you frequent out in public, they can go to those places and over hear what you are saying, that along with your private e-mails, which they will be able to read through if they have your secret password can give them a lot of information and clues to attain more information the future. So even if US government top officials are only using Gmail for their private e-mails, they are still able to get important information that they can use later to get even more information, information that is secret. Indeed I hope you will please consider all this and think on it.…