12 AUGUST 20, 2018 opinion We invite letters from readers. Please limit your letter to 250 words and tell us whether we may print it. We reserve the right to edit it. Include your name, title, company’s name, city and state. Tell us what your connection to the auto industry is. Email letters to autonews@crain.com. Consistency amid change is the key A AUTOMOTIVE NEWS ILLUSTRATION C O M M E N T Let’s not make an exception utomakers have an endless supply of great ideas dealers should pay for: bigger showrooms, flashier investments come with the territory.
But costly factory directives become problematic when the next great idea directly contradicts the last one, which many dealers are probably still trying to pay off. signage, better technology. Periodic facility G U.S. government for an exemption from the tariff now placed on the China-made Buick Envision it distributes to American dealers. eneral Motors has asked the the globe. Hopefully, the new tariffs on goods coming into America will eliminate those barriers. Lincoln Motor Co. has good reason to want exclusive dealerships in big luxury markets, rather than the dual-brand showrooms that sell about 20 Ford F-150s or Explorers for every Lincoln Navigator or MKX.
Lincoln’s improvements have been hard-fought and impressive, and the brand is now telling dealers in 30 markets to build standalone showrooms. If countries are willing to eliminate tariffs now in place, they must also be willing to eliminate nontariff barriers. Indeed, Ford, Mercedes and BMW have been dealing with the problem of unnecessary inspections of U.S.-built vehicles at Chinese ports. keith crain But granting the exemption would be a bad idea. Too much is at stake to start making exceptions for a particular product. It’s essentially reversing an effort to put Ford, Lincoln and Mercury all under one roof.
Many dealerships spent big bucks doing that, then lost Mercury and now must weigh another sizable investment to separate Lincoln again. are bound to set up dealer networks and make plans to import tens of thousands of vehicles. If GM is afraid that the tariff puts its model at a disadvantage, then it should consider lowering the price or offering an incentive to maintain the Envision’s competitiveness in America. GM has been hugely successful in China, selling more Buicks there than here. If it wants to offset the cost of the tariff with its U.S. dealers and customers, it can do so overnight. But it doesn’t deserve an exemption. Tis back-and-forth isn’t unique to Ford.
Hyundai has vacillated on plans for a Genesis retail network, and Mazda ordered up a new dealership look not long after many transitioned to a different design and color scheme. It would be foolish to give one vehicle an exemption today just because the automaker happens to be GM. It would have a serious practical and political impact for quite some time. Today, there may be few models imported from China, but it’s certain we will see an increase in the next couple of years.
Several Chinese car companies Meanwhile, car-sharing, ride-hailing and other innovations have created uncertainty over the role of dealerships in the future, meaning more big investments will be needed in the coming years. Change is inevitable, but consistency amid the change is key to keeping dealers successful and content. Tariff and nontariff barriers have had a damaging effect on U.S. exports around You may email Keith Crain at autonews@crain.com. Ed Mullinax was a no-haggle trailblazer L E T T E R S Used cars, GM hire and Opel’s new life Washington for GM, which will obviously have to be made available to all members within the industry — free of charge. 3.
“As part of PSA, Opel discovers the joy of collaboration”: Under PSA’s tutelage, Opel/Vauxhall has shown a first-half year’s operating profit of almost $600 million vs. years of losses under GM’s management. Te conclusion should be obvious. not having had a Ranger pickup for the longest time. Te Toyota Tacoma and Chevrolet Colorado had a ball while Ford fumbled. Perhaps the right sedan, targeted at the right market, was the solution all along. TO THE EDITOR: Being an innovator in any industry takes more than just a good idea; it also demands both the courage to try and a willingness to accept and learn from the results. Ed Mullinax, who died Aug.
4 at 85, was an innovator of the highest order when it came to auto retailing. Te Aug. 6 issue prompted these thoughts: 1. Keith Crain’s “Keep your eyes on used cars” is like “teaching your grandmother to suck eggs.” For those unfamiliar, it means giving advice about a subject of which the audience should be well- versed. HENRI MEISTRE CEO Auto Capital Investments Lewisville, Texas Auto Capital, of Johannesburg, has held numerous new-vehicle franchises. Its division in Texas sells used vehicles. Mullinax pioneered one-price, no-haggle selling in 1975 at his Ford dealership in Amherst, Ohio, seeking to remove the inevitable tension point between a seller and a buyer.
When he tried it out, he didn’t know how it would go. But he soon found out: Te store sold 40 cars in the first five hours. When appointing dealers some 30 years ago, in addition to appraising the candidate’s finances, facilities and experience, I always insisted on knowing who the used-car sales manager would be. Furthermore, I would recommend he/she be compensated higher than the new-car sales manager because the used-car sales manager would have a far greater knowledge of all used-car values as well as mysterious selling margins vs. the relatively tight spread on new-car sales.
In short, a dealer’s operating expense coverage comprises service, parts and used cars — but only partially and never totally new cars. 2. “GM hires ex-Trump aide as its D.C. voice”: A transparent move, methinks. Te auto industry should thank General Motors CEO Mary Barra for this new senior vice president for global public policy because she will be picking up the tab for whatever he might accomplish in RICHARD HERDEGEN Bloomfield Hills, Mich. The writer is a retired General Motors executive. Others have tried to follow Mullinax’s retailing innovation since then, with varying degrees of success. But regardless of the results, they have Ed Mullinax to thank for blazing the trail.
The Juke owner who had enough Those who fill car vacuum will win TO THE EDITOR: TO THE EDITOR: Sanity prevails. I read “Where cars are still thriving” ( autonews.com , Aug. 11), about the future of the sedan, with true appreciation. As an experienced retailer and wholesaler of vehicles, I view Ford turning its back on the sedan as a shortsighted and disappointing strategy. Te headline “Juke dropped from Nissan lineup” (July 30) made me smile, as it reminded me of a situation when a Juke customer traded in her fairly new vehicle because she was frustrated with the laughter and intimidation from fellow drivers.
It seems she was always hearing comments referring to her Nissan “Joke” and finally had enough. T H E W E E K LY N E W S PA P E R O F T H E I N D U S T R Y Established in 1925, published every Monday by Crain Communications Inc. Keith E. Crain, Editor-in-Chief KC Crain, Group Publisher Website: autonews.com Jason Stein, Publisher EDITORIAL STAFF autonews@crain.com Phone: 313-446-0463 | Fax: 313-446-0383 I believe that those who see this as their chance to take advantage of the vacuum left by Ford, and others who follow suit, will be the winners, and in doing so will keep the sedan alive and well.
I assume it isn’t funny for Nissan, but they eventually saw the “joke” in their vehicle and pulled it from our markets. ADVERTISING krentschler@crain.com Phone: 313-446-6058 | Fax: 313-446-8030 CUSTOMER SERVICE New subscriptions | Renewals | Address changes | Delivery problems JACK NOTMAN Cornwall, Ontario The writer is a retired Chrysler-Dodge- Jeep dealer. customerservice@autonews.com 877-812-1584 (U.S. or Canada) | 313-446-0450 (all other locations) Furthermore, I believe Ford’s move in this regard will be a mistake similar to