Showing posts with label Chrysler. Show all posts
Showing posts with label Chrysler. Show all posts

Monday, June 1, 2009

Requiem for a Heavyweight

Flint, MI… 6-01-09
When Dinah Shore sang “See the USA in a Chevrolet”, GM was rolling solidly on all four wheels; over 600,000 were employed globally, and they had a fat 51% market share. Now, GM stock is the price of a newspaper and soon to go away, market share is 21%, and when things shake down, only about 40, 000 people will be GM employees world-wide. Being in the broken heart of the GM bankruptcy this week and being surrounded by a very somber state of Michigan is very tough to take. Today is a day to remember.

Because today the headlines should read, Detroit R.I.P.

Not rest in peace mind you. No. The RIP stands for “Results in Politics.” I drove past and around Buick City today. I spent a couple hours in Flint. I will be in Detroit in the morning and for the rest of the week. I want to be a witness. This is my home. But things are changing with lightening speed. The factories closed by GM will be someone else’s soon. All the car songs will change. It will now be “See the USA in your Hyun-dai!’ Instead of Mustang Sally, we will dance to “Tata Sally”. The Beach Boys classic will shout “she’s real fine my hybrid mine”.

Like a heavyweight champ, Detroit was left hooked. Knocked out cold. The people of the United States will now own 60% of General Motors. Our choice to drive what we want will soon be over. Smaller, more fuel efficient vehicles will be the norm. It is not without coincidence that gasoline is rising at a record pace, again forcing people into considering small vehicles. Here is the sad truth. Americans do not want small cars. They want cars with good gas mileage.

Ford, Honda, Toyota, and all the smaller companies will listen and watch this week. Notice there is no comment from them today. Chrysler and General Motors are in essence, nationalized. It does not make any difference if we agree or not. This is the new reality.

When we go from 16 million to 10 million units sold, very ugly things can and indeed do happen. One thing for sure is the Big Three is changed forever. Detroit, the once Arsenal of Democracy is forever a much smaller shadow of itself. Re-invention must come from within. And it will quickly come from being without. Those working and those retired are just hoping to keep what they have.
The days of Detroit as the Motor City are modified forever.

This is the result of car sales that melted to nothing. And consumer confidence will not improve overnight, unlike the gas prices approaching three dollars AGAIN.

Tuesday, May 19, 2009

Detroit Idle Thoughts

5-19-09 Apex, NC

Very quietly, every Big Three medical plan has changed. Now there is less coverage and more cost.

RUN don't walk to a Chrysler or General Motors dealership. They are now customer heaven. Work out a good deal that is fair to the store and to you. There have never been better deals.

If you work in or with the auto industry, you are not dreaming. It is a low grade nightmare that is not ending for awhile.

Yes Virginia, there is indeed more Fords running around in areas where there are a lot of imports.

Mr. President, please understand Americans do not want small cars with great gas mileage; they want cars with good gas mileage and cars that are comfortable. The tiny cars you expect us to drive are harder to get into than a Sprint Cup Car, and long distances guarantee pinched nerves and scary moments. Remember Mr. President you cruise I-95 in a bullet-proof stretch Cadillac Limo. What is your MPG?

Toyota announces a new, cheaper Prius; desperate times and desperate measures.

Google The Henry Ford in Dearborn and head there for the day; stay at the Dearborn Inn, the most historic Marriott in the country. And grab a Buddy's Pizza when you are up there. Summer is gorgeous in Southern Michigan.

How about the Red Wings and the Tigers? Good news is rare in this town.

Google American Dream Rally.

Buy American. I check the labels, and the nameplates.

Sunday, May 17, 2009

MESSellaneous Idle Thoughts

Apex, NC 5-17-09

The Apex High Women's Lacrosse Team took home the NC state title after a thrilling 13-12comeback win over Charlotte Catholic yesterday. Great Job!!

I have been thinking that the deflection of incompetence is a growing art form within poor leadership.

Raising gas prices two cents a day, every day, is not good for anyone but big oil. As the economy gets healthier, let it naturally rise based on usage. NO NEED to hurry it up.

Airlines are raising stowed baggage fees again. Why not? Captive audience and easy money make profit.

President Obama and Notre Dame.

Domino's Oven-Baked Sandwiches are just plain yummy.

My beloved Detroit Tigers are in first place. Please pinch me in a non-usable part.

Have you ever had anybody walk out of your life leaving you with all the bills? When dealership tax bases cease to exist; they are coming after us!! And you know who the THEY are.

Former Governor Easley sure has his challenges today. As any good farmer will tell you, you have to dig deep for the richer soil.

GM + Chrysler = 100,000 - X. Whether we want to or not we are solving for X. I cannot even get into the algebraic reality let alone the calculus. But 100,000 fellow Americans still is 100,000. It is the constant not the variable we have to worry about.

On Memorial Day, before you crack open a beer or slice open a bag of hot dogs, get on your knees and pray for our troops, our veterans, and our history of freedom and heroes. There is only one country like the USA.

No one will ever fly into one of our skyscrapers ever again because of our brave men and women in the Armed Forces, the CIA, the Secret Service, and the FBI. Keep them in our prayers. Their business is Freedom and their product is Bravery. Godspeed.

Finally, here is career advice. Find out what you have a wild passion for. Plan honest profit from that passion. And then draw customers to your passion.

But remember changing careers can sometimes be a simple process, BUT it is never an easy one. If someone recruits you and promises you easy money, turn and run... FAST!

Have a great week and happy selling!

Wednesday, May 6, 2009

Are You Feeling It Yet?

5-6-09 Apex, NC... The signs of recovery are on the horizon. The market is up. Gas prices are rising. Credit is available to those who qualify. And the Chrysler makeover coupled with the shedding in GM has created a calming effect to the economic
situation. Mr. Obama is losing his new car smell as he puts some miles on his experience as the most powerful person on Earth. Considering what we have lived through the past seven months, this peek into the second quarter has some very positive signs.

We get the car business stable and we get the economy stable. If people start buying cars at a 15 million (a year) pace as we head to Summer, things can only get better.

If the automotive industry goes upbeat so will the vendors and suppliers. And I am one of those. Small business across the United States will also benefit. Unemployment will lower and consumer confidence will rise. Both will move in different directions at about the same rate. People are not dumb. But they are worried and they are watching.

Time will tell but I really feel it coming!

Thursday, April 30, 2009

The New New Chrysiat

4-30-09 Apex, NC

We will never forget this day. Ever. It is dark, cloudy and pouring rain in Detroit. And Walter Chrysler is turning over. The Dodge Brothers have tears running down their cheeks and are now the Blues Brothers. And everyone in the now defunct Chrysler LLC is on pins and needles waiting for the shiny shoe of the White House to drop.

Interesting it was done on the last day of the month and the last day of the quarter. Perfect timing to go bankrupt. Any car guy would have waited a day or two. But the spokesperson, the announcer, the gentleman with the shiny shoes, is no car guy. He is the President. Wow... No one from Chrysler announced this powerful change.

Over time this could be a good thing. But we are looking at 12-18 months from now. Allegedly Chrysler Financial goes away and GMAC walks in. GMAC? I would be careful with that too. Time will tell with GMAC financing Chrysler customers.

What happens to dealers, suppliers, employees, inventories, floorplan, warranties, and the success of all the local businesses tied to Chrysler? One in seven are directly or indirectly supported by the auto industry.

Bankruptcy can be messy... Does Delphi come to mind?

Chrysler as a company stops right now. It goes to bankruptcy court. Assembly plants close NOW. This impacts every aspect of the US economy and this will set back consumer spending.

I have family at Chrysler. I have good friends at Dodge stores. I just pray and hope everyone making this decision today knows what they are doing.

Godspeed and BUY AMERICAN.