Rage and sorrow…so many nights now I wake up suddenly during the night and I just lay there in my bed, very still, just thinking…thinking very hard.

September 11^th is one of those dates frozen in memory. Each of us will take the events of that day to our graves with crystal clear recollection of people, places and emotions. We will always remember and relive what we were doing and experiencing that morning when we first heard and watched the news unfolding live. 

The only thing that is certain is uncertainty. A terrible war is brewing. Pandora’s box is open and cannot be closed. All of us are caught up in a storm of contingencies. In my mind I weigh every option and every possibility. I have lived through three wars and the Cuban missile crisis. But, this time it’s different. This time it’s more real. This time the enemy has brought the war to us and we all feel threatened.  

You must have a plan for every eventuality…every possible scenario. In life as in business, now is the time to formulate a Battle Plan.

It’s October 1^st and I am on my way to Indianapolis to deliver the keynote speech to the Indiana Dealers’ Annual Convention tomorrow morning. I have spent several hours over the weekend rewriting and revising my presentation.  In light of what is now happening in the industry and in the world, what I had prepared to say is no longer appropriate.  

It is important to stop and remember that our nation and our industry has survived and thrived through countless threats and upheavals. As always, we will prevail, and ultimately; we will emerge stronger.

It is also important to remember that the retail automobile business was already in deep trouble (with a down arrow) long before this happened. Before I began writing this article, I spent several hours reviewing the news releases and articles that were released in the weeks before the World Trade Center was destroyed. I sincerely hope some factory industry executives don’t use this war as a smoke screen or an excuse to mask their inept management. Let’s face it…you guys (gals) had screwed things up royally long before this happened.

Usually my articles are written for the dealers and the managers in the dealerships to read.  I am amazed at how many dealers and managers have become lifelong friends. It’s incredible how many of you have become my close personal friends. You’ve stayed at my home and met my family and I have stayed at your homes and met your families. I receive email from hundreds of you every month.

This time I am writing the article directly to the factory executives. Please do me a personal favor. Many times I’ve stuck it out there for you…and sticking up for you guys has cost me personally. Now, I am asking every dealer and every manager to take a moment and FAX this article to every factory executive, management employee, and every field representative of every manufacturer …import and domestic. Send it to Ford Credit and GMAC and anyone else you can think of. I hope Bill Ford gets several dozen copies.

It is time to heal deep wounds. To all of the manufacturers…these are my opinions…please put ego and arrogance and your petty little schemes aside for a serious moment and consider what I am saying here. This is the time for the factories and the dealers to reconcile. We have bigger fish to fry together.

Nobody wanted to see Ford Motor Company brought to its knees. We only wanted you to get off of your insane and asinine allegedly idiotic courses that you’ve been charting. Read my articles over the last fifteen years…I have predicted your every failure. I have written hundreds of articles predicting the inevitable outcome of your incredibly bad business and marketing decisions. Not because I am so brilliant but rather because the ineptitude was so obvious. I have watched you blow billions of dollars on stupid ideas when the outcome was 100% predictable to anyone with a lick of common sense.

When you made the decision to buy retail dealerships and you tried to operate them in direct competition with your own dealers, you made an ugly statement. It was a declaration of war against those who had been loyal and faithful to you…in some cases for generations. You tried to implement every allegedly goofy, allegedly misguided, J.D. Power-inspired, happy-clappy, warm and fuzzy, sales and marketing program. Of course, all of that being said, you predictably fell flat on your butt before God, the public, and all witnesses. In a five city cross-section, under the alleged leadership of Jac Nasser and Bob Rewey, Ford Motor Company was humiliated and disgraced (my opinion based on your own numbers)…but still, you gave Jac Nasser a raise that year and the next. Who ever said incompetence is not rewarded?

The Rochester Auto Collection in partnership with the allegedly less than ept AutoNation is now a shambles. Some points, which were extremely profitable under private ownership, are now being closed apparently the result of gross incompetence. Is this to say that AutoNation bailed and Ford dumped in the face of monumental failure?

A former dealer-operator was allegedly handed the keys to the Tulsa Project (Failed Auto Collection) in a transparent deal with United Auto Group/ Roger Penske under the guise of semi-private ownership?

Quit it! Speaking directly to Bill Ford…I think you should be personally humiliated…this is your family name. Every dealer in the world is waiting for your leadership. We are all anxiously waiting to see who is rewarded with the remaining Auto Collections store when they are given away.

Factory-direct Internet sales…you (Ford) fought your dealers head-on and tried to sell cars direct to the public and got your butt handed to you in Texas and California and, especially in Arizona…but still you continue to hire attorneys and lobbyists and you continue to wage an aggressive open war against your dealers trying to defeat their state franchise laws. Have you no honor?

Ford strategy: Regroup and attack again…now it’s Blue Oval Certification. You want to control your dealers through two-tiered pricing. This is a thinly veiled plot to eliminate small-town dealerships in what I perceive to be a fixed fight. I equate this to saying that Ford is willing to crap all over Mayberry. Recently more than 800 small town dealers were planning a march on Dearborn to picket world headquarters with high-profile mainstream press coverage, which would have been arranged by me with my friends in the national media. I personally asked them to reconsider and to give Ford Motor Company another chance to talk it out. Does Ford Motor Company really want the national reputation of being “Anti-Mayberry?” You need to reconsider this vicious attack on your dealers. Small town America, the Main Street Dealers built Ford way back when the original Henry was in charge. Some of these small-town dealer’s ancestors actually shook hands with the original Henry and made what was supposed to be a lifetime partnership. Are you telling me that some Johnny-come-lately Australian-Lebanese chap is empowered to break those Ford Family promises?

Then, you (Ford) hired J.D. Power and Associates to inspect dealerships and rate the scores.  Excuse me, but I have the not-so-unique opinion that nobody in the free world actually believes for a moment that J.D. Power is an impartial, honest or accurate research firm. (Just my opinion mind you, based on my personal interpretation of statistical analysis) It seems to me, whenever J.D. Power and Associates shows up, personally, I gotta’ say that I sort of smell a rat. (Did you ever notice the first three letters in Associates is Ass?)

Billy…look, most dealers know that Blue Oval Certification is a fixed fight. We are praying you will do the right thing here. The North Carolina legislature has banned the concept and now more than a dozen states are getting ready to pass identical legislation. They are about to be all over you like stink on sh… (You get the picture)

It’s illegal and worse yet, it’s immoral. Blue oval Certification is an evil scheme designed to hurt people and out dealers out of business. Enough of this self-righteous crap about customer satisfaction…nobody’s buying that. Come on guys (gals) at Ford let it go! Blue Oval Certification is killing your corporation!

Listen Billy…There is a way out of this Nasser-created mess (opinion) …look…let’s say that since all states cannot agree on implementation of the program, that we (Ford Motor Company) have decided to restore the 1% we stole from our dealers initially  (my opinion here, you can stick to the word “Borrowed” if it makes you feel better) and we promise (swear) that we will never ever again try to screw over our dealers …AND, we will never use the bogus bullcrap argument that it’s really all about customer satisfaction when, in truth, it’s really about some “Propeller Head” with an MBA Degree fresh out of business school who is feeling his (her) oats. (Or, hypothetically, in my opinion, some nerd imported from, say maybe, General Electric who is in ten miles over his little pointy-head)

Cost-cutting and grandstanding arrogance by diminutive, egomaniacal Napoleonic executives apparently have lead to safety issues and quality issues. We’ve seen predictable, preventable and avoidable tire scandals costing billions. Ford is continuing to settle death and injury lawsuits to the tune of  $15 million per case. A quality product was never built with cost-cut parts, bullied suppliers, and cheap assemblies.  “Quality is Job One” was evidently assassinated by a clue-impaired some British Lord and then subsequently by an Australian-Lebanese bean counter from down under. (Definitely just a personal opinion based on what’s just as plain as the nose on your face.) 

Which brings us full-circle around to your company’s latest maneuver titled “REACT.”

If you follow my articles…about three months ago I warned dealers NOT to allow J.D. Power and associates to have voluntary access to your dealerships’ databases. (Danger Will Robinson) Never ever never ever-ever allow J.D. Power or the factory into your dealership’s database.

NOW, low and behold, Ford Motor Company is demanding that their dealers give them unquestioning access to all of your business information and database. This is all under a new program called “REACT”.

Attention to Ford Motor Company (Billy): Are you people ever going to back off? This is a massive pile of bovine feces.

Why in the world would any Ford Dealer in his (her) right mind allow Ford Motor Company to have transparent access to their personal company database? I am telling every dealer that reads this… “Do not ever (never) let the factory have access to your database!”

Dear Ford…when are you going to stop attacking your dealers?

I have personally seen correspondences that appeared to me to be highly threatening to dealers from Ford Motor Company higher and lower level executives insinuating that if the dealers did not sign up for this program (REACT) that there would be severe consequences to the dealerships and their employees. You guys (gals) at Ford are unreal. STOP! (In this case it was a woman executive who was threatening)

Every time you lose on one front. You regroup and attack from another angle. No wonder your dealers seem to despise you (based on NADA surveys).

This is a time for partnership and healing. Mr. Ford (Billy) please listen, your dealers love you, love your family, and they love the company. They (me too) are willing to go the extra mile to put our relationships back together. I would love to be a part of the reconciliation. We are all holding our breath hoping you will (please) do the right thing.

I believe in my heart that there has been treachery and injustice done by your company to the people and to the loyal dealers who have supported and aligned themselves to your best interests and your company since the beginning. Henry Ford’s handshake should mean something.   Your (Ford Motor Company’s) pitiful, low, cash position and your plunging market share should be evidence of just how (in)competent the Nasser and Trotman (Bob Rewey?) administrations actually were. I am sure you are in the process of repairing those blunders.

To Bill Ford, I wish you Godspeed and Good Luck. Let me say this…I have met Jim O’Connor and I believe he is your best, most honest and sincere, and the most loyal representative of your family’s good name and he is the best ambassador in the best interest of your company with your dealers. Give him the power to make meaningful change.

Knock-knock…hey Ron…Ron Zarella…I know you read every issue. I have heard about your comments about my articles. Wow! You really are an emotional sort of guy huh? Let me say this…I believe you have sincerely made a calculated business decision that working with your dealers is in the General Motors’ best interest.  Last month I made the statement that I believed that General Motors was making a sincere effort to repair the rift between the dealers and the factory.  I even invited you to a face-to-face meeting to discuss how to put it back together. Let’s share a cognac together? I made that challenge before the events of September 11^th.  Now Ron I am saying to you that personalities don’t matter anymore. It doesn’t matter what has been said in the past. We all love the automobile industry. This is business. I am willing to support any positive thing that you have in mind…I’ll put it in print and say it in my speeches. You (General Motors) have great product and positive momentum (except for that God-awful terrible quality Opel product) and I would be excited to see General Motors regain market dominance. I am personally driving one of your new 2002 Cadillac Escalades (OnStar sucks) so you know I am leaning your way.

I have said some things that were very hard-hitting…which were aimed directly at you and your performance…now, you (Ron) have the opportunity to not only prove me wrong but you can soar to the highest levels. It has always been about my disappointment not about tearing the company down. Anyway, Bob Lutz is your ace in the hole. Ford is on their butt because Nasser keeps screwing with their dealers and dealer morale is in the toilet. (Just my opinion but I think it’s valid)

That stupid (allegedly stupid) experiment you guys are doing in Washington with AutoByTel (AutoBySmell?) Get rid of those guys already! I just read in AutoSnooze where you guys are only selling 1.6% of all sales in the MSA on the Internet with this program. Excuse me Ronny…isn’t that a dismal putrid bullcrap documented failure? Internet ain’t happenin’ dude. That really sucks in layman’s terms huh? In other words…why are you guys sticking with this sucky-sucky bullcrap AutoByTel joint-venture program?  Are you guys still trying to go around your dealers sort of like Ford is trying to do to their dealers?  That so-called experiment with Wes Rydell out in California should be proof enough that you don’t belong in retail. All Rydell has proved in my opinion is that you can definitely whore up a market and undercut your other loyal dealers prices into the holdback without moving the needle on market share. 

Ron, listen, customers don’t want built-to-order cars. The car dealer with the most inventory on the ground right now will always sell the most cars…period… take your superstar premier car dealers like Bill Heard and Van Tuyl for example. The public wants instantaneous gratification…not built-to-order cars. That’s the factory agenda not the customers’ agenda. Customers still like dealerships with big inventories…you know, instant gratification. Built-to-order cars are another one of those idiotic MBA think-tank ideas that over-educated morons with no real world experience thought up. (Now that’s my opinion based on superior experience in the real world working with real customers) Besides…I know you have documents proving the Internet is a major non-event. Get back to selling cars Ron. We got a war to fight here guy. Hey Ron listen up a second; stop screwing with your dealers and you’ll win…howsabout?

Daimler-Chrysler…yawn! Jim Schroer…Jim, I thought you were brighter than this. Your corporations’ one-price initiative has been absolutely the stupidest (most moronic). I can’t help it that Jürgen Shrimp has gotten himself reelected to another term by the board. Doesn’t that make you go hum-mmm-mmm-nnn?

Jim, You have endorsed a program that will ultimately sink Chrysler dealers’ chances to crawl out of the hole you guys have put them in. Restore the profit margins and you’ve got a fighting chance.    

Really? Yeah really! Swirling a snifter of Remy Martin high in the light and laughing out loud. We have all got bigger fish to fry. There’s a war out there and dealers and manufacturers need other more than ever.

Imports…Domestics…it’s the same game. I urge all of the factories to abandon all of their apparently devious plans to circumvent their dealers and out-maneuver the states’ franchise laws. Fire your lawyers and put an end to the treachery. I really want to see all of us focus on the common good.

I wanted this article to be different than anything I have written previously. It’s time for the manufacturers and the dealers to call a truce. Unfortunately I keep hoping the manufacturers (especially Ford) will back off and do the decent thing.

In 1the last three months I have met with vice-presidents of three major manufacturers in an informal setting to discuss possibilities. This global war on terrorism is going to severely affect our lives and our business. Truthfully, I perceive we are on the brink of World War III. The franchised dealers are the manufacturers’ most loyal and best outlet and marketing resource. I am strongly urging the manufacturers to put aside any plans or plots to defeat their dealers…recall your lawyers and drop your lawsuits against the dealers’ best interests.

Please disband your lobbyists and bogus consumer groups. We are in this together.

Professional Automobile Dealership Consultants

This Man Will Change The Way You Do Business!