Ziegler Supersystems, Inc. March 2003  Dealer Mag Article

In the Pursuit of True North

Sitting here at the word processor, writing the first words to yet another article; Before the first word appeared in the title I have already invested more than thirty hours researching and condensing hundreds of pages of information, Faxes, emails and correspondences, as well as personal contacts and phone conversations...funneling it all down into what you are about to read.

As a professional speaker I have been blessed with experiences that border the edges on the realm of the incredible. My life has become a roller coaster...a cacophony of wall-to-wall adventures. Several years ago I received the prestigious award “Certified Speaking Professional” which is the highest earned designation anyone can receive in the speaking profession.

The intellectual dynamics and pure exhilaration of personal expression is the fuel that drives my life. I have had the rare honor of knowing many of my heroes personally. Zig Ziglar, Harvey McKay, Don Hutson, Les Brown, Tony Robbins...I move in those circles and these people are my friends.

Another one of my heroes, Stephen Covey has written several books and recorded many hours of audio about ethics and honor in life, leadership, and business. In the book “Principle Centered Leadership” Covey details a concept he describes as “True North”. Covey’s philosophical approach to “Moral Compassing” as a guiding principal in life and business has occupied my mind during many hours of personal solitude. In the final meltdown “True North” is simply quantifying those values we feel are most important in the direction we’re heading...family, spirituality, business, ethic, morality...it is the principles upon which value laden leadership is achieved. In life and business we all would like think we are fair, honest, and decent people.

Just got back from the NADA Convention in San Francisco...an incredible experience! I have not missed a convention since 1987. It is beyond comprehension to me why anyone in our industry would miss this opportunity to see and hear new industry trends, products and services as we chart the future of the business.

Thousands of Dealers, Industry Executives, Vendors and Allied Industry Representatives...hundreds of booths and displays...reporters and presenters; It was electricity all over again.

Friday night was the Dealer Magazine party at Buco Di Beppo Italian restaurant. Mike and Amie Roscoe always have a wonderful party. I spent a lot of time plotting with my good (great) personal friend and fellow columnist, Dan Myers, who is the absolute best dealer advocate attorney in the entire universe. He is also my personal attorney. There we were all of the writers and contributors to Dealer Magazine as well Mike Roscoe himself. You can bet there is more than one factory executive who would’ve loved to have dropped a hand grenade in that crowd.

I experienced several events that will be burned into my memory for the rest of my life. Before the convention I received a correspondence from Ms. Julie Hamp at General Motors inviting me to meet with John Smith and Pete Gerosa during the convention. If you’ve been following my articles, you know John Smith is a factory executive I hold in extremely high regard. Pete Gerosa is controversial and flamboyant (I can relate to that)...this was like being given a backstage pass at a rock concert... And...Of course I was curious where they were going to find a room big enough to fit these two monster egos, mine and Gerosa’s. (I wasn’t disappointed, Gerosa not only lived up to it but actually went beyond expectation)

We didn’t really talk politics and we didn’t try to do business with each other...this was just a conversational meeting to establish a relationship. Smith was exactly who I thought he was...and Gerosa was genuine (and direct). I didn’t promise them “good ink” in my articles and they didn’t ask for any. At one point I looked at Pete and said... “Okay, where’s the cigar?” He smiled and reached in his coat pocket... “Right Here!”

These guys are a tightly choreographed team. They have a communication body language in tight sync. Julie Hamp sat quietly recording significant points of the conversation...a lot of eye contact and subtlety. We talked about the industry...we felt each other out to see if we were competent and worthy of each other’s respect...Smith and I were both unassuming dynamic, which is his normal style, I was practicing. We talked about the industry in general and the trends as we saw them. Smith asked me about Ford...and Daimler-Chrysler...and what I was hearing from the dealers....He was quick to point out that they didn’t buy Daewoo, only the assets. It was relaxed and deep to the nth degree. Damn, I really like this guy.

When I walked out of that suite more than an hour later Pete Gerosa and I continued the conversation in the hallway all of the way to elevator. Gerosa...I gotta admit, I like this guy too... I believe they are some of the most competent executives at that level with any manufacturer…and I honestly believe they have the dealers’ best interest at heart. In article after article I have continually predicted a renaissance at General Motors starting with Bob Lutz and Rick Wagoner as well as the diplomacy of my recently retired friend, Bill Lovejoy, who single-handedly repaired dealer relationships which were devastated during the Zarella years. John Smith was on my radar screen long before he acquired power. I believe General Motors has entered an era of electricity and magic. This renaissance is product-driven and dealer friendly. (BTW...In case all of this flowery rhetoric sounds a little too cozy…if anything changes remember I always have another article coming out next month) 

Gerosa...yeah, I can see where this guy might really piss some people off...Hell; I’ve been doing that for years. Bottom line, this guy is a no nonsense car guy. Sure, he’s full of bullcrap and showmanship...so what! I can tell you he knows this business. AND...I believe, in my heart, he’s going to be good for dealers and dealers’ interests. Will he push you to your limits? I think he’ll ride your butt if you aren’t performing. Is he rough around the edges...God bless him.

Saturday evening we attended the General Motors reception at the San Fran Marriott as guests of John Smith...there was magic in the air.

Then...there was the second event that rocked my world.

Speaking at the NADA Convention is what I live for. When I am invited to share my vision, knowledge and expertise with dealers and executives at our annual convention it is my ultimate validation.

On Sunday morning I was preparing to perform my first workshop for the convention. Even though I have spoken hundreds of times before audiences of thousands, I was nervous. When I present to you, I am under heavy pressure to be my absolute best. The room was packed...the NADA had set up chairs for about 450 attendees....People were sitting in the aisles...up and down the aisles on the sides of the room...standing in the back of the room…standing in the hall outside the door looking in. Wow! There were perhaps as many as 550 people in that room to hear my workshop. My workshop this year was titled “High Profitability with Zero Liability”...it was about legal compliance in the sales and F&I processes. About seven or eight minutes til Showtime I was checking out my microphone and PowerPoint projector when I looked up and there was Jim O’Connor, Vice President of Ford Motor Company walking down the aisle toward me. What a class act this guy is! He shook my hand in front of more than 500 people and actually embraced me in a manly hug. There were tears in my eyes. I gotta tell ya. I have said...and will continue to say some very critical things about Ford Motor Company (or General Motors or any other corporation when it is merited) Yet...Here was Jim O’Connor, a man I consider to be my friend, even though I have written some harsh criticisms, even though we have some severe differences of opinion, politics, and philosophy...here he was he was chatting with me and my wife and my employees at the front of the room. At one point he jokingly said to my wife... “I’m the guy he’s always writing about.”

O’Connor and I have so much in common...remember, he came from the retail side of the business too. He’s a sharp businessman and...I am sure he is a loyal soldier under orders when it comes to his allegiance to Ford Motor Company. BUT...you will never find anyone who can righteously say he is not a fine human being and a great man. Truthfully, I can see the seeds of a new direction and a new mindset in Ford dealer/factory relations starting to emerge. I honestly believe they are about at the crossroads…replacing treachery of bygone regimes with a new, sincere spirit of cooperation. Not there yet by a long, long shot but certainly taking baby steps toward repairing the damage.

Saturday afternoon Bill Ford delivered the opening keynote speech for the 2003 NADA Convention. I could feel his pain as he labored over every word. As a professional speaker (which Bill obviously is not) I could see, hear and feel the inner workings and the mental dynamnicism as a speaker struggles during the presentation. There he was the head of Ford Motor Company, repeatedly apologizing for the fact that his corporation had double-crossed their loyal dealer body thinking they could do a better job of retailing automobiles.

Well, excuse me folks...I can feel Billy’s pain BUT who in the Hell allowed Jacques (the suspected, alleged, diminutive, megalomaniacal, unsubstantiated egotist, perceived by many to be a jerk-off) Nasser to commit all of these abuses while the Ford family and other previously thought to be competent members of the board sat around with their thumbs stuck up in undisclosed warm dark locations.      

Bill Ford actually walked the floors of the convention with an entourage of Edsel Ford, Jim O’Connor and Allan Gilmore, shaking hands with dealers and mangers...stopping to answer questions...even telling jokes and trading cordialities.  The image?  We’re trying to say Bill Ford is a regular guy and “We’re wid ya dealers!”… “It’s back-slapping time!”  Remember all of this is happening in the shadow of Ford Motor Company’s 100^th birthday. Here we’ve got Bill tap-dancing on the griddle following the 2003 NADA survey ranking Ford and Lincoln-Mercury at the absolute very ultimate bottom of the Dealer Attitude Survey...Lincoln-Mercury rating 33^rd and 34^th out of 34 brands surveyed. GM shat all over Oldsmobile, killing off the franchise...guess what?  Ford and Lincoln-Mercury Dealers voted their manufacturer to be more despicable than Oldsmobile dealers did. Daewoo dealers are happier campers than your average loyal Lincoln-Mercury dealer.

Hey Bill...look here...Scuse me here big fella’ the problem is the dealers don’t like your company’s heavy-handed tactics and arrogant self righteousness and denial of responsibility for the messes caused by your anti-dealer corporate policies…many of which are obviously still ongoing.

Excuse me Mr. Bill Ford, your dealers have unanimously voted that your corporate/dealer relations SUCK...AS IN SUCKS BIG-TIME...AS IN BITES THE BIG ONE.  You can no longer deny your dealers think your corporation has crapped all over them continuously and these abuses are still ongoing...AS IN NEVER-ENDING.

It cracks me up when your factory executives spout off the party-line that all of your bad dealer relations are just a small group of malcontents.  I have documented proof that your regional managers put unreasonable, unconscionable,  pressure on your dealers to give you a good score on this NADA survey...BUT...they, your dealers, still rebelled and told the truth anyway...You Guys (Ford Motor Company)  Absolutely Suck at dealer/factory relations. Mr. Ford, Your factory “Heavys” couldn’t even threaten, coerce,  or intimidate the dealers into giving you a good survey... your dealers hold your corporation in such a high degree of contempt for abuses that are still in motion that they couldn’t be intimidated or threatened enough to give you a good score.  I am in contact with hundreds of small dealers as well as larger dealers...the story’s the same...large and small, rural, urban and suburban…they are pissed off Bill.

In recent years past some of your former executives, who honestly weren’t qualified to supersize fries, always liked to cultivate relationships with hand-picked factory-friendly dealers so they could hold them up to show how great factory-dealer relations were…in spite of bad surveys from all reputable research companies. Please reread the first couple of paragraphs of this article about decency and integrity.

Bill Ford, I loved your speech...honestly...BUT...there was nothing in the meat of it that rang true in reality. Are you not in control of your field personal and your district managers? Are your attorneys still pursuing legal battles to defeat state dealer-protective legislations? Ford Motor Company is NOT doing anything in reality that remotely resembles that flowery speech you gave.

I am warning Ford Dealers DO NOT FALL ASLEEP until Ford Motor Company backs off of their legal attacks on dealer protective laws in every state, stay the course and keep the pressure on.

Part of Bill Ford’s speech said... "In the 1990s, some of us thought we could do a better job. We learned the hard way we were wrong. We do a lot better when we cooperate than when we compete. We've committed ourselves to strengthening our ties with our dealers."

In other words...Ziegler paraphrases Bill Ford’s statements here... “We tried to screw you guys over but, we were extremely incompetent and unable to run factory-owned dealerships at a profit... So we are once again appealing to you to bail us out of the deep sh*t that we find ourselves in… again.”

Okay, enough Ford-Bashing for the moment. Let’s pretend that Bill Ford is serious about re-establishing factory/dealer relationships, which I believe he is.  What do we have to do to get this accomplished?

You want the dealers to take your words seriously? Okay…First of all Bill, if you want anyone to believe you’re genuinely sincere, it might be a good idea to call off your attack dogs in North Carolina. Last month North Carolina declared that Blue Oval Certification is illegal in that state... and ruled that Ford disband the program and restore the 1% stolen from the dealers’ invoice to fund the program. Instead of compliance, Ford elected to appeal the decision with the Division of Motor Vehicles. But Ford is spitefully refusing to lower invoice prices of new vehicles, as ordered by regulators.  "Ford does not plan to change margins in North Carolina right now,"…a Ford Spokeswoman said.

Ziegler interpretation paraphrase... “We will rain hellfire on the poor brave woman dealer who sued our dishonorable butts over this gross injustice and we will make her life hell by not restoring the 1% as justly ordered by the state…a tactic to infuriate other dealers just to punish her.”…at least that’s my personal slant on this as I see it.

Hey Bill...you guys and gals at Ford are apparently still shatting all over your dealers and, at the same time, asking them for support? It appears to me you haven’t done what it takes to deserve their support…yet.

I honestly believe Ford will get through this crisis with the help of their dealers but don’t tell us it’s because of market conditions like Steve Lyons said on the November FordStar broadcast. You’re in this mess because of bumbling incompetent inept management at the top and deliberate treachery of past regimes. Truthfully, I intend to become your biggest cheerleader as your corporation rebuilds relationships. Mr. Ford I offer you respect and whatever support I can afford. In the meanwhile I suggest you finish dismantling this Blue Oval Certification insult your company inflicted on the dealers…please fire J.D. Power and Associates…call off your attorneys and stop relentlessly attacking state dealer-protective laws…and get back to core competency of building great cars and trucks with no more dabbling at micro-managing the retail dealers and their processes….And, oh yeah, promise never to do anything like this again…okay?

Ford’s salvation will only come when there is new, exciting product. I was impressed with the new Mustang GT concept displayed at the show…as well as the redesign of the F-series. In the recent past Ford has fumbled and bumbled every launch and totally misread the market (opinion) For instance…what genius decided to come out with the new Thunderbird with an anemic underpowered engine? That design begged for performance. Truthfully, I will probably have one of the new Mustangs myself if it delivers the promise of the concept.

Speaking of product…Daimler-Chrysler has rapid-fire new launches scheduled featuring cars that absolutely sizzle. This guy Deiter Zetsche is some kind of a genius maybe. The Daimler influence is evident and I predict the next generation Chrysler will be world class. I still think they should put the new Hemi engine in a retro “Hemi Cuda” reminiscent of say the 1970 model.

In my opinion, Daimler-Chrysler is on fire with great new product and inspired leadership BUT there’s still that one fly in the ointment that will not go away. A new document introduced into evidence as a part of the Kirk Kerkorian $13 Billion lawsuit against DaimleChrysler appears to document the allegation that Daimler plotted for years to buy Chrysler, and perhaps supports Kerkorian’s allegation that the Germans (Juergen Schrempp and top Daimler officials) actually conspired to takeover Chrysler under the fraudulent guise of a merger in order to cheat stockholders. This internal document, evidently from pre-Chrysler Daimler-Benz is rumored to be a lead pipe cinch, smoking gun, proving Kerkorian’s claim. Kerkorian’s company, Tricinda Corporation, was a major stockholder in Chrysler. This lawsuit is moving forward and is a class action (can get larger) and it is the wild card in DaimlerChrysler’s future.

Remember, in Germany Juergen Schrempp is under a lot of pressure from many stockholders to spin Chrysler off and return to the Daimler-Benz heritage. If Kerkorian wins a major settlement, it might be the straw that broke the camel’s back bringing this scenario to reality. Is it possible that the corporation might one day be known as General Electric Chrysler?

While I am still talking about product…I had an opportunity to stop by the Toyota exhibit and there it was on display for all of the world to see…The new Toyota Scion. It sort of took me by surprise and, I must admit I wasn’t ready for what I saw. If I had seen this on an airplane I would have been scrambling for a barf bag. We are talking world-class Butt-Ugly…this car or whatever that thing was…is probably more Butt-Ugly than the Honda Element if that is possible. The Honda Element is another little cheap, allegedly cheesy, hideous square roller skate which I also personally believe to be a World-class contender in the Butt-Ugly category. Hey, I might just have to start giving out some bogus little glass trophies similar to the ones some of the research companies sell to their manufacturers. One would get the award and the other would get the runner-up trophy in the Butt-Ugliest category. Of course this is all my opinion based on good taste and the fact that I have a strong grip on reality. I think these cars are so Butt Ugly they make the Pontiac Aztek look attractive. If these models represent what Toyota and Honda think the future is all about, I can safely predict market share diving into toilet as these erstwhile arrogant corporate juggernauts chase that elusive, non-existent, Generation Y Buyer. All I can say is that I don’t think for a minute our kids are that screwed up.

I told you so…Posting a 102% sales increase in less than three years…coming from bankruptcy to super-solvency…now Nissan is thundering into the U.S. Market with some of the most impressive new product as well as stepped up production on their hot-selling Altima and the XTerra truck. Recently overtaking Honda to regain the number two manufacturer position in Japan, Nissan is poised to kick ass in North America with capacity of 1.3 million units this year. Their new product lineup centers around the forthcoming launch of the new “Titan” pickup truck featuring a 5.6 liter, 300-horsepower engine ( compared to the 4.7 liter, 240-horsepower Toyota Tundra and the 4.6 liter, 230-horsepower F-150) This guy, Carlos Ghosn, is making no apologies and taking no prisoners. This is the most impressive multi-model lineup ever introduced by any import manufacturer in the U.S. Market…and it’s all going to hit at once.

Many Honda dealers approached me at the convention asking why I was so down on Honda. Well, the truth be known, I think Honda is really screwing up in the direction they are taking…and the directions they are apparently planning to take. Honda has been known for great cars and great dealers, some of the best dealers on the planet in my opinion…BUT…remember I said this…they are poised to take a hard, hard fall as they begin to accelerate their intrusion into the retail sales process reminiscent of and in some ways similar to Ford Blue Oval Certified. In Ziegler terminology, I think these people are going to start to accelerate their perceived interference in the sales processes of their dealers…dicking around with what has been a winning formula.

Both Honda and Toyota have, in my less than humble opinion, gotten distracted…eye off of the ball…chasing allegedly goofy new age marketing processes and low end product as well as sucking up to and trying to win the approval of  questionable research firms. In the meanwhile Nissan is bringing the game straight at them with this impressive product blitz …and…these players haven’t got the depth on the bench to stand up to it. I think Nissan and Hyundai are going to eat their lunch in a vicious dogfight on U.S. turf.

Well, I’m home now even though it’s just for one day. I flew directly from the NADA convention to Reading, Pennsylvania where I performed some in-store training for the management of the Savage Auto Group…wonderful people. There was more than eight inches of snow on the ground which fell in less than eight hours. I almost didn’t make it out of Philly Friday night as the roads were really sketchy. Now, here I am sitting at the word processor swirling a snifter of fine Remy-Martin cognac and contemplating the meaning of “True North” as it applies to my life. It’s 4:00 A.M. in Atlanta and I am flying out in the morning at 11:00 A.M. to West Palm Beach to perform a keynote speech for Universal Underwriters regional meeting. I am definitely back on the treadmill as another convention becomes another fine memory.

More Food For Thought

The 2003 NADA Convention in San Francisco was another career milestone for me. I was more relaxed and more at home than ever before. I am settling in and enjoying the people and the experience to a much higher degree. I found myself posing for photos with dealers and managers as well as signing a lot of autographs. I still get a kick out of it when someone asks for an autograph…I am really not used to that. I keep thinking to myself… “Hey, it’s just me.”

What really put it together for me is the fact that after 28 years in the industry, I am being recognized by the industry for my insight, innovations, and intellectual contributions. I remain in awe that factory executives at the highest levels from most of the big players are asking me for advice and opinions. Several reporters from the mainstream press actually interviewed me about the state of the retail industry. My reputation for accuracy in predicting the retail car business has spread to the non-industry media.

BUT…best of all, I enjoyed seeing my friends...thousands of you…dealers and managers and factory executives, people I know personally stopping and shaking hands, slap on the back, or just a nod on the escalator. I was leaving the NADA finale dinner where Kenny Rogers performed and, as we passed a group of dealers in the hotel lobby, one of them yelled out… “Mr. Ziegler, you are our hero!” They actually applauded holding their hands high. I was beaming. For so many years I have felt unappreciated. When my friend, Jackie B. Cooper passed away two years ago there wasn’t even a mention in any of the trade publications. He was a great man and deserved this industry’s respect and memorial for his contributions. I didn’t know him all that well but on the occasions we spoke he was an inspiration to me. I just hope to hell when I pass away (no time soon I hope) but, when I do leave, I hope someone out there has the decency to remember what I stood for.

This Man Means Business!