Dealers: welcome to interesting times!

 

Interessanti

The car market trend is positive in the World: in 2012 the enrollment grew by 5.7%.

Not in Italy, where dealers falls in the middle ages and develop the numbers of 1979, when there were the Fiat 127, the Alfetta and the VW Golf’s first series, inflation was 24% and “Car and Driver” was at 1,25 US $!

F1

To comment this data, some authoritative representatives of the carmakers and three of the category associations (Unrae, Anfia, Federauto) has met themselves, pointing out the absolute lack of a vision of the future in the italian automotive distribution chain: the dealers – but also some managers of the carmakers – are still working with tools, processes and mindset of the 70s.

Massimo Nordiothe new CEO and MD of Volkswagen Group Italy – noted that the crisis of the automotive is not only due to the economic factor, but also to a changed relationship between youngs and automobiles. Beside this, now there is a stronger competition with train and plane, today efficient and low-cost.

Everything changes quickly: TV campaigns successful few months ago, now does not produce traffic-floor into the dealerships.

The purchase process is changed: if prospects and customers are increasingly using Internet instead of visiting dealerships during the decision process, perhaps – to the dealers – in the future will no longer serve show-room of 800 square meters.

This can help the entire automotive industry, to rethink particularly the distribution in a more modern way, responsive to the real needs of consumers.

F2 dati mercato ENG

Loris CasadeiCEO of Porsche Italy – indicated the growing importance of Social Media as socialization containers – liquid aggregation sites – and the consequent feeling for less need of mobility among young people.

Casadei has therefore signaled the myopia of some carmaker’s managers (BMW) that in the past have bottled their dealers with expensive inventories of new cars, and now are repurchasing these new cars from dealers they themselves have put in difficulty.

Fabrizio LongoCEO of Hyundai Italy – has highlighted how the current crisis – which will have an impact in terms of social costs still underestimated – is demanding for an urgent change in all the actors of the automotive market; change that must be understood as opportunity to modernize.

The multi-branding? It is not a disease!

Nothing new from the Associations! Some self referential speeches, some whine and the usual incessant requests of Government bonus, contributions, tax relief and incentives…

Are these automotive trade unionists still necessary?

When the Fiat workers in Termini Imerese and in Turin have lost their jobs, they were heard! But when hundreds of dealers businessmen with direct responsibility on thousands of other workers – have lost their jobs and their companies, no one has perceived.

But while the Fiat’s workers have lost their job not for their faults, many dealers have direct responsibility for their bankruptcies, and must think on what they have not done in their companies to modernize or to avoid the catastrophe.

F3 ENG-KmZero

Pre-owned, self registrations, “one-day-cars” and “km zero” in June 2012?

Do you think it is useful to continue to slavishly follow the wrong policies and the dictates of the carmakers?

Why – in the midst of the worst disasters of the last 33 years – Fiat dealers accepted to register the 54% of cars (14.910 vs the total 27,803) in the last 72 hours of the month? Fiat has returned to more than 30% market share? Hooray!

And why Ford dealers, BMW, Mazda, Nissan and Volvo have agreed to register more than 45% of the cars in the last three days of the month?

We proved that there is no future for… “modernization”!

F4 Dealer Data 2012

Italia Bilanci presented the 2011 Annual Accounts of the dealers and a projection of the 2012 revenues.

66% of the dealers is losing money in 2012: the average loss is 136,000 euros!

Beside this, the italian dealers are not taking advantage from all opportunities: for example, who only sells Spare Parts and Accessories produces an income of 4% mind the best Italian dealers with spare parts earn only 0.4%! 10 times less!

Someone is trusting in Italy and invests in our Country! Not all leave our country, a couple of months ago the U.S. giant Penske decided to buy some italian BMW dealerships; and he will introduce his system that produces 50% of the profits by focusing on parts, service and financial products!

F5 Nardo-porsche

Porsche has bought the car track of Nardò, one of the most advanced facilities in the world with its 75 kilometers of trails, site of countless records. Porsche will develop in this region a new research center.

My maternal grandmother was Chinese. In China if you hate somebody and you want to curse him, no one says “I wish you a cancer” or “go to hell”, but it is left to the events and history the finalization of the malicious thought.

So to the enemy is told “welcome in interesting times”.

Interesting times are periods of unrest, wars and struggles for power that led to suffering and death to millions of innocents. A cynical Slovenian thinker – Zizek – claims that we are approaching a new era of … “interesting times”.

Welcome Dealers!

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4 Comments

  1. Cristiano says:

    Eh, pero’…. la Lagonda… 🙂

     
  2. ENG – @ Cristiano.

    You are one of the few remembering the legendary Lagonda… (photo on Cars & Drivers, 1979), launched by Aston Martin to honor the acquisition of the Lagonda brand in the late ’40s.

    This stunning car had a very long life (1976-1989), even if rather troubled (3 face lift and many technical improvements), for a total of 645 units produced.

    Just today – full page in the Corriere della Sera – is emphasized the opening of the fourth Italian store Aston Martin – Lagonda.

    Good luck to Mr. Jeffrey Scott – CEO of Aston Martin Lagonda Europe – and to all the italian dealers!

    ——————

    ITA – @ Cristiano.

    Sei uno dei pochi che in Italia si ricorda della mitica Lagonda… uscita per onorare l’acquisizione da parte di Aston Martin del marchio Lagonda avvenuto a fine anni ’40.

    La vettura ebbe vita lunga 1976-1989 e piuttosto travagliata (3 face lift ed innumerevoli migliorie tecniche), per un totale di 645 esemplari prodotti.

    Proprio oggi – pagina intera sul Corriere della Sera – viene enfatizzata l’apertura del quarto punto vendita italiano Aston Martin.

    In bocca al lupo Mr. Jeffrey Scott, Direttore Generale di Aston Martin Lagonda Europa ed a tutti gli operatori italiani!

     
  3. @ My Friend George from Los Angeles wrote this comment:

    “Hello Maurizio,

    It pains me to see when dealers suffer because in the end its the Brand that takes a hit. And what about the employees, especially those that devoted a better part of their life to the organization? I love Italy having spent some time there as a kid in the 70’s. I hate to hear negative things about this wonderful country. The photos of abandoned dealerships was very disturbing to see.

    I think that Penske will have success in the Italian market. The American car market prides itself on ensuring that not $1 is left on the proverbial table. We know how to sell cars and products to make an overall transaction profitable.

    Dealers in the US are competing for customers not only in their showrooms but also through their parts wholesale. Many are giving generous discounts to body and mechanical business customers, offer more frequent deliveries and extend part order cut off times to the end of the work day. All this means is that the dealer applying the proven approach of “listening to the customer and identifying the needs”.

    I would love to have an opportunity to work in a european dealership or russian dealership. There’s just so much more that can be done to turn the business around.

    I want to wish Italy’s dealer body to get through these interesting times with as little loss as possible and hopefully there’ll be a pot of gold at the end of the rainbow for them.”

    Great George, thanks for your contribution!

     
  4. George,
    wonderfull…wonderfull comment!

    😉

     

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