Obama’s CAR CZARS still don’t get it.
When will Washington listen? ENOUGH ALREADY! NO MORE MONEY! The CAR CZAR’S are making decisions on the future of the US auto industry with no experience working in the car business, owning a company or actually selling anything but their own hype. Nevertheless, these CAR CZARS (as reported in the Wall Street Journal) say their role is all about brokering a financial deal. These are the same fellows responsible for the masterful execution of the AIG bailout and bonus situation, that in their own words; “will render the AIG name worthless”. CAN Chrysler and GM stock be far behind?
IMHO, their eye is on the wrong ball, and everyone on the bench has told them so. It’s not about when car sales will start to improve. It’s about meeting the needs and expectations of the car buying public. Yes, consumer confidence in the ability to make the monthly payment is issue number one. However, before the consumer can acknowledge the burning desire to rush out and replace that old clunker, terminating lease or inefficient vehicle; several basic tenents must be addressed.
DESIRE, NEED, BUDGET; the basics of Car Sales 101.
After all the barn-storming and chest thumping meetings, even the Italian’s (FIAT) are stunned with the limited grasp our CAR CZAR board appears to have on the underlying motivations of the car buying public. Have any of these guys ever sat in a showroom on a Saturday for eight hours, negotiating a car deal?
Here’s the REAL CAR DEAL Mr. President…
1. JOBS #1. Can’t get a car loan without a JOB.
2. BANKS. The banks are sitting on all that money from the first round of Bailout financing, FAILING to give it up to the very consumers it was meant to help. No bank or car company should get another dime until a portion of the previous funds are used to give consumers CAR LOANS. There are plenty of car buyers, just no way to finance them.
or utility vehicle that runs on natural gas, electric, hydrogen or water, at a reasonable price. The tax initiatives are already in place. What’s the problem? The EPA strangles new technology in years of paperwork, and battery manufacturers can’t make up the time warp fast enough to meet the demand or lower the cost. While gas is cheap, our focus is off the ball, however, all Americans are engaged in the “other shoe dropping” mentality of gas prices coming back to $4.00 a gallon, and they want to get off the oil addiction.
4. Car consumers will buy smarter, safer, more fuel efficient automobiles, but their distrust of Detroit’s ability to make quality product has pushed them into the arms of Toyota, Nissan and Honda. The Big 3 JAPANESE brands are already delivering better quality cars and alternative fuel vehicles.
5. BRAND LOYALTY is the cornerstone of car sales, and neither Chrysler nor GM have earned and sustained their customer following. Therefore, maintaining these entities is a grandiose waste of capital. Fiat can’t burnish Chrysler’s reputation, as proven by their previous owner: Daimler Benz.
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So gentlemen, I implore you once again; take the advice of those in the business who have “sold” the cars. STOP WASTING valuable time and public empathy. The consumer is growing impatient and you: CAR CZAR board, are wasting Obama stock pussy-footing around the inevitable. Chrysler and GM do not need or deserve to remain separate companies. As most doctors will tell you, the sooner you amputate the better chance the patient has of surviving. Take the two month bankruptcy route and get the companies back on track for summer selling season. A bankruptcy decision NOW will reap rewards by third quarter. If you continue with the B.S. foot dancing any longer, the car sales window will close as car hungry consumers will wait for 2010 models while shopping for school supplies.
Sarah Lee is an automotive executive with 20+ years of experience. She writers about Cars, and is a staunch consumer advocate on car related subjects. Her company: MY CARLADY is a car buyer’s service committed to getting you the best deal on your next new or pre-owned vehicle. You can reach her at www.mycarlady.com