Ziegler Supersystems, Inc. February 2003  Dealer Mag Article

God Bless the USA

This week marked another milestone in my life. Not that I am particularly proud of the fact but, just the same, I am now officially a two-million-miler with Delta Airlines. Actually that means I have traveled more than 250 days a year, away from my home and family, sleeping in hotel rooms in distant cities, for more than fifteen years now.

My last trip in calendar year 2002, the one that put me over the top, was a short hop to Orlando where I was the keynote speaker for the Central Florida Automobile Dealers Association the week before Christmas. I nailed that one...again. There’s one thing that a futurist, columnist, and professional speaker knows for sure...that’s when he (she) has done their best presentation at their highest level. This is one of the premier dealer associations in the country. There were Automobile Dealers, Bankers, Prominent Politicians, Media and The Press represented in the audience...and I was in the zone.

After the speech I stayed for another half hour shaking hands and meeting new friends as well as renewing friendships with old friends and acquaintances. I love car dealers and, for the most part, they love me. Then...on an all too familiar tight schedule, I jumped into a Town Car and headed for the airport.

On the way to the airport I sat alone in the back of the limo savoring the experience...damn its fun being me. My very best friends in the world are the most influential car dealers in the universe as well as the small struggling Mayberry Dealers...what an incredible euphoria. This mutual love is electricity.

Stark cold reality slapping me in the face now...a real downer...standing in the airport with both hands stretched out spread-eagled. An immigrant with broken English is instructing me to loosen my belt so she can pass a wand over my midsection to be sure I am not carrying any weapons. My shoes are going through the x-ray machine as I stand here humiliated in socks that have chosen to develop a hole at the heel. They empty my carry-ons on the table and swab my computer with something designed to pick up explosive residue. Yup... that’s my dirty underwear folks, right there on the table for everyone to see.

Excuse me, am I missing something here?  Let me explain something to you...I am a fat, bald-headed, fifty-five year-old, Caucasian, 5^th generation American Citizen of German heritage traveling in a business suit with a driver’s license and birth certificate in his procession. I have flown two-million miles with this airline and I am a documented Platinum Medallion-Elite, Flying Colonel, Full-Fare First-Class Flyer (Ziegler don’t fly in the back of no planes) as well as a Crown Room Member. These perceived fools have a lot of documentation as to who I am.

No one is more patriotic than I am. My father was a thirty-four year veteran with the U.S. Navy. BUT...there comes a point when we loyal Americans are persecuted in the name of social correctness. This is absurd!

We have a fairly accurate idea of what a terrorist profile might look like, don’t we? I am genuinely sorry that many innocents might have to endure this scrutiny because of their heritage.

Are we so socially correct that we have to spend billions humiliating our own citizens who obviously are not a threat so as not to offend terrorists?  Excuse me...get real! BUT, once again, I have seen eighty-year-old blue-haired grandmothers and six year-old terrified children screened by this asinine process so we don’t, God forbid, accidentally offend potential terrorists.

Looking at the industry I see clouds in the tea leaves,

We are entering a period of absolute unpredictability.  I am always amused when so many alleged morons line up to predict future sales statistics (to the decimal point accuracy) for the coming year. If you were to stick a pin into some of these pompous self-absorbed inbred asses, don’t be smoking a cigarette because you’d certainly cause an explosion of unimaginable magnitude fueled by the propensity of flatulent gases.

Has anyone ever looked up the meaning of the word “buffoons’ in the Webster’s dictionary?

In a related story... J.D. Power and Associates recently reported their 2003 North American Automotive Production Forecast Lowered to 16.1 Million Units (J.D. Power and Associates)

The press release said in part... “J.D. Power and Associates has lowered its 2003 North American light-vehicle production forecast to 16.1 million units.  In fact, even with respectable redesign and new model activity at General Motors and DaimlerChrysler, J.D. Power and Associates expects the traditional Big Three share of production to fall to an all-time low of 73 percent, down from 75 percent in 2002.”

I am so sorry but a prediction or a forecast is supposed to be an educated statistical analysis that you can rely upon. These J.D. Power folks seem to keep adjusting their alleged forecasts monthly...maybe even whimsically; I haven’t checked. In other words...this information appears to be about as meaningful and useable as Ms. Cleo’s predictions on the cable access channel. (Remember any personal opinions I express about J. D. Power and Associates must tempered by the fact that I personally violently despise these allegedly despicable people and I think they are disreputable, biased, in total conflict of interest, and unethical...and that they are unfit and unqualified to be involved our industry. I invite you to judge for yourselves however based upon the evidence...I might be wrong.)

My wife, Debbie, and I are looking forward to the 2003 NADA Convention in San Francisco. I have attended at every NADA Convention since 1987...and I have been a featured speaker at four of them...AND...I will be presenting again this year...PLEASE...come out and support me and my message. My workshop this year is titled “High Profitability with Zero Liability”. I want to meet you and see you there.

Dealers are facing more legal liability in the sales process than ever before. My presentation this year is about high-profit, high-ethic, and high-integrity sales processes.

Speaking about the convention....I have a personal invitation for myself and wife to attend the General Motors reception at the convention by one of my newest personal heroes... John Smith, General Motors group vice president for North America vehicle sales. Replacing Bill Lovejoy is filling big shoes but I am confident Smith has the right stuff.

When Lovejoy announced his retirement in November there were several announcements and promotions associated with the shift in management at the top at GM. Without a doubt, the most controversial news centered on the advancement of Pete Gerosa, replacing Smith as vice president for field sales, service and parts. Wow! I haven’t received this much mail since the Zarella days. This guy is the most controversial character in the equation I have ever encountered. There is nobody that doesn’t have an opinion about Pete...AND...They either love him or hate him...there is no in-betweens on this guy.

When Gerosa’s promotion was announced I started receiving a lot of unsolicited emails and letters. Mike Roscoe and Dealer Magazine also received a lot of mail. Most of what I was getting was extremely negative and unflattering. Bear in mind, I correspond with several hundred dealers every month. So last month I mentioned in my article that I’d like to hear from dealers about their experiences with this guy. Frankly, I was unaware of Peter Gerosa and I was really hoping for a replacement tar-baby since Ron Zarella left the company. It’s kind of boring beating up on Ford motor Company in issue after issue.  Well...well the letters and phone calls and emails were overwhelming. Hundreds of you responded.

Okay, I have never met Pete Gerosa but here’s the impression I get from the collective consciousness of the dealers’ letters and emails. This guy is a cartoon character...bigger than life. He always has a three-foot long cigar in his mouth or hand that he never lights...It may be the same one he’s had for years, who knows. He will, on occasion (many occasions) use foul language and he will impolitely tell you exactly what’s on his mind. His shortcomings are that he’s short with people, opinionated, and has no patience with people he disagrees with, especially small dealers. Many dealers think he’s condescending and arrogant. We have it from reliable sources that he’s lousy at counting Cadillac sales.

Everyone agrees that he is the master of the world-class, high-volume hairspray comb-over AND a contender for a cameo walk-on part on any episode of the Sopranos. He travels with an entourage of bodyguards and blockers...AND...He is a master in “Street Talk 101.”

Then, many other dealers told me he’s the best car-man in the company. They said he’s the real deal and a no-nonsense, get-it-done sort of guy. People I respect called me and said Peter Gerosa was all about performance and that he was on the dealers’ side.

I have gotta tell ya...and you people know me...the positive responses on Pete Gerosa outnumbered the negatives three-to-one. I know there are many of you that wrote letters and emails and called me about this guy that expected me to really trash him. Some of you are close friends of mine and I will never betray your confidence...BUT...I have gotta say this. My initial feeling about Pete Gerosa is that he is going to be a driving force in the revitalization of the corporation. If anything changes, you know I am not in anybody’s pocket. I always have another article coming out next month.

Screw-Ups at Honda

Last month I began a series of articles examining what I perceive to be the decline of Honda.

Let me preface this with an analysis of an article I read in Auto Snooze back on December 18^th.  The headline read...Honda expects record global sales in 2003.

Of course, according to the article, Honda began predicting they expect to more than quadruple sales in China next year. Excuse me, I don’t mean to be the troublemaker here BUT I really doubt that’s gonna happen. I am so sick of all of the American and International Manufacturers who believe that they are going to strike gold in China.

Remember this; history is the best prediction of future events.

China has historically double-crossed everybody. Also, remember I said this!  Every manufacturer that is investing their future in China is going to get their collective asses kicked...again...AND...You deserve it for being such cerebral greedy suck-up ninnies. The article went on to say that Honda plans to increase global production by more than 10.8% next year to meet expected global production. Are you guys on drugs or what?

The Honda “Element”...All I have to say is that I have seen the photographs and I sincerely pray that the actual car is not as butt-ugly as the initial photographs I have seen. All-in-all my personal opinion of the car, or whatever that abortion is, is that it is one ugly son-of-a-bitch.

Whispers in the background say that Honda is concerned that their dealers scored below the industry average in providing a pleasing experience for auto shoppers according to the prestigious, irrefutable, unbiased J.D. Power surveys this year. Like many other manufacturers, Honda has come to the realization that you must score high in the J.D. Power surveys if you ever hope to obtain low market share. This fact is particularly evidenced in the fact that Ford Motor Company has risen sharply in J.D. Power customer satisfaction surveys as their market shares dives deeper into the proverbial toilet.

Honda is just one more manufacturer chasing the Generation Y buyer. The Element is just another contender responding to the Koreans. Hyundai and Kia have scared the dog-poop out of every player in the industry and now they are all trying to get a corner on the geek market. 

Look at Toyota Scion...Saturn...and Focus...every manufacturer is furiously trying to capture this phantom market that doesn’t really exist. They are designing for an elusive stereotype that really doesn’t exist. There is no Gen Y...just buyers. These fools have been attending too many of their fourteen year-olds Vin Diesel movies. Even Fujio Cho, president of Toyota Motor Corp., had to concede in a recent interview that Toyota has been unsuccessful in trying to capture the youth market in Japan.

Toyota has been incredibly successful in wresting market share away from entrenched U.S, Manufacturers surpassing Chrysler and threatening Ford.  Now, with the average age of the average Toyota buyer in the U.S. sitting at 48 years of age, is suffering corporate anxiety. I predict Toyota is about to suffer a hard fall.  Regardless, Toyota is charging ahead with their Scion franchise requiring U.S. Dealers to cough up more than $112.5 Million. Like I said...The word “Scion” in Japanese means “Saturn”. Toyota is about to get their butts handed to them on this deal.

Honda is prepared to escalate their Excel Program to meet J.D. Power standards and I predict their market share will plunge into the deepest levels of the toilet. Honda has been one of the premier, best selling cars in the world, with a world-class quality reputation, and now they are preparing to start screwing with their dealers, chasing some bogus “Blue Oval Certification” type program. Are you people stupid or what?  You’re prepared to screw with the dealers that put you where you are to do what?  I suggest that those geniuses at Honda better take a look at what happened to Ford when they started screwing around with their dealers and chasing J. D. Power surveys. Hondas new thirty-five page dealer agreements are the death knell of the company. No wonder Nissan is poised to kick your ass.

When Will It End?

Over the last few years Ford Motor Company has been sued by their own employees...consumers that purchased their cars and trucks...relatives whose loved ones died in their vehicles...their suppliers...their dealers...AND NOW...they are about to be sued by the technicians that work for the dealerships. A class action by Ford Technicians to be filed against ford motor company is gathering snowball momentum. A website, www.flatratetech.com is building a case that Ford Motor Company is deliberately assigning labor hours to repairs that are unattainable to save money because of the corporation’s financial problems.

The technicians are prepared to sue Ford for retroactive pay dating back several years for what they claim are unreasonable repair hours assigned to repairs that were results of engineering defects.

Here’s what’s so cool about this deal. I know at least fifty dealers who have told me they are supporting the technicians’ lawsuit. In other words, many dealers feel Ford has transferred their responsibilities for defective cars to the dealers by putting unreasonable repair times on jobs that are a result of factory defects to start with. This is where it gets weird...many dealers are encouraging their technicians to join the class-action lawsuit.

If you are also one of those dealers who feel the factory has screwed you over once again, perhaps you might want to get your technicians to log on to www.flatratetech.com and get involved in the class-action.

Shaking my head in total disbelief now! The headline reads...

Kia Motors Announces New Program to Enhance Retail Buying Experience

The article went on to explain that Kia Motors America has announced an ambitious three-year initiative plan called the “Kia Circle of Excellence” to signify improved customer satisfaction and to enhance the company’s brand position.

The press release read in part... Planned for launch in Spring 2003, Kia Circle of Excellence contains financial assistance to improve customer service at Kia dealerships, upgrade dealer facilities and ultimately increase the proportion of exclusive Kia retail operations nationwide. Kia Circle of Excellence is the culmination of months of planning by KMA in conjunction with its dealer council to create an appropriate financial assistance program for Kia's retail partners to accommodate more customers with higher expectations in the years ahead.

Excuse me but does this appear to be another “Blue Oval Certification” ambush? I have repeatedly congratulated Kia on their marketing victories but now it appears they are about to really screw up.

Then I noticed just a little lower in the text of the article, what I consider to be the kiss of death... Kia.com Remains One of the Industry's Highest Ranked Web Sites According to J.D. Power and Associates Web Site Study (Kia Motors America) Kia Motors'.

 

How did I guess that J.D. Power would somehow be involved in this travesty?

You know, we’ve got a convention happenin’ this month and I want to leave this as positive as possible. We are going to continue to experience a fluctuating and erratic market...certainly the Iraq equation is the wild card in the future predictions. It appears to me that the players are fighting for market dominance and no one can predict where it will all fall out in the end.

I will spend most of my time at the Dealer Magazine booth...Please come by and say hello...I want to know each of you personally. AND...whatever you do PLEASE bring all of your employees to attend my workshop at the convention.

As for me...it’s Christmas Eve as I write these words and I am still sitting here at the computer thinking about you. Once again I have opened the bottle of 125 year-old cognac which I have reserved for these occasions. Swirling a snifter filled nearly to the brim...I smile...where else? Where else but the United States of America could anyone enjoy these blessings? I will say this and I will say it without shame.

This land is my land...my home...The United States of America. No matter what your race, religion, and nationality...we are all equals and I embrace you...We are a country of immigrants and I welcome you to share in the bounty and overflowing abundance of the American Dream. It is my personal wish that you are happy and prosperous. I will befriend you, help you, and encourage you to prosper. BUT...if you carry hatred, deceit, or if you hate what we stand for, make no mistake about it...you are my enemy.

More Food For Thought

You may have noticed that I have been very light on my criticism of Ford Motor Company in this article in this issue. Truthfully, I am saving it all up to really blast the Hell out of them in the next issue.

No, actually I am waiting to see where they go next with their restructuring plans. I don’t want to beat Ford up anymore. They have done some incredibly idiotic things and they are paying some incredibly high prices for their stupidity and treachery (my opinion). My biggest remaining grievance with Ford was the continuing Blue Oval Certification Program. I am still not 100% sure they have honorably done way with this disgrace but I am willing to wait and see before I give them any more bad ink in these pages. When I am convinced they have completely divorced J.D. Power and Associates and restored the stolen profit margins I will feel this issue is in the past.

It all turned out the way I always told you it would. There was never a doubt in my mind that this insult could not survive. In truth, I am wondering if it will survive another two years.

One thing that really perturbed me was the fact that the Ford Dealer Council was totally ineffectual. I am not saying anything negative about anything or anyone on the Ford Dealer Council...what I am saying is that Ford apparently ignored you and disregarded you completely as if you were fleas on a dog. Apparently, you were treated like children with no say so or authority. Let’s face it...they only really negotiated this deal when the big dealers got involved. From everything I have seen, read, and heard...the Dealer Council was impotent. Whether or not that is true only the players know...BUT...I don’t blame you. I know that this current Dealer Council did not sell out but you were powerless in the final showdown.

Ford Dealers...Ford Motor Company was Camelot and could be again. If Ford can find it in their conscience to deal in good faith once again...everyone can be winners.

Jim O’Connor...I would really like to shake your hand again.

This Man Means Business!