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The
Twilight Zone …a new episode
"There
is a fifth dimension beyond that which is known to
man. It is a dimension as vast as space and as
timeless as infinity. It is the middle ground between
light and shadow, between science and superstition,
and it lies between the pit of man's fears, and the
summit of his knowledge. This is the dimension of
imagination. It is an area which we call... THE
TWILIGHT ZONE."
-Rod
Serling
Consider
this… a solitary man stands up and shakes his fist
in defiance as the forces of darkness surround him. (
music in the background now…deee-deee-dee-dee
bum-bum-bum bump)
Salt
Lake City Utah…The United States of America. Brent
Butterfield, a man under extreme pressure, refuses to
sellout his family heritage to the Ford Auto
Collection. Facing a juggernaut with nearly unlimited
financial reserves, this lone entrepreneur vows to
defend the legacy of his family handed down through
the generations since 1937.
Wow…what
an episode that would make huh! Wonder how this
story’s gonna end?
As
these words are flowing out of my keyboard it is the
last week of June. I am sitting in my hotel room at
the MGM Grand Hotel and Casino in Las Vegas. There is
a snifter of Remy Martin Cognac on the night stand
beside me and the neon lights of an electric city
glare through the opened curtains. The setting is
surreal and "The Twilight Zone" is a
befitting title for an article about insanity and
delusion…about greed and deception …misdirection
and incompetence, lies and corruption…An article
about unfathomable arrogance and the enigmas of what
is currently happening in the retail automobile
industry.
Fasten
your seatbelt…it’s going to be a bumpy ride.
There’s the signpost up ahead… …next stop …The
Twilight Zone.
(
music …deee-deee-dee-dee bum-bum-bum bump)
Brent
Butterfield is a hero. There are so few people today
who really stand for anything. The Auto Collection in
Salt Lake City is reportedly choking and sputtering,
losing sales and market share as profits decline. On
the other hand Butterfield Ford is posting record
sales and profits posting nearly 30% increases month
to month.
When
is Ford going to admit that The Auto Collection fiasco
is a failure? Why are Ross Roberts and Bob Rewey
charging ahead with this project ? What’s with this
love affair with Bob Rewey and AutoNation all about
anyway? When asked if Ford had plans for future
projects with AutoNation, Rewey was quoted as saying
he wouldn’t rule that out. On the other hand they
are saying that the Auto Collections are a
self-defense initiative against the proliferation of
the Super Dealers like AutoNation.
What
do you think Tonto? "Pale Face speak out of both
sides of his mouth Kemo Sabe."
What
if…Nobody really knows the true figures, but let’s
speculate here…What if the Tulsa Auto Collection
were losing substantial money…say somewhere between
a million and one million-six hundred thousand a
month…say they were losing that much money every
single month since they began the project. If that was
true would Roberts, O’Conner and Rewey ever admit
that this project was a disaster?
If
anybody knows any of the Lincoln-Mercury Dealers
involved with the San Diego Auto Collection, why
don’t you call them up and ask them if they are
losing substantial market share or is that just
another one of those nasty unfounded rumors?
Let’s
face it boys…Indianapolis was an embarrassment…You
got blown out of the saddle when you tried to put
together an Auto Collection in Connecticut…You were
ridden out of Texas on a rail…Your dealers are
fighting tooth and nail to keep you out of
Virginia…and, it appears to me, that every Auto
Collection that is up and running is running in
reverse.
Talk
About Bizarre…In the May 17th edition of
Automotive News, publisher, Keith Crain called for the
resignation of Cadillac Division general manager, John
Smith. By now everyone is aware that Cadillac got
caught red-handed falsifying sales reports to make it
appear that they had outsold Lincoln in 1998.
Whoa…Wait
a minute Keith…slow down there big fellow. John
Smith is one of the brightest stars in a dying galaxy.
Even though Smith is a Zarella appointee, he is doing
some innovative moves that I believe will restore
Cadillac to market dominance in that segment. I love
this guy. When you called for Smith’s resignation, I
think you were right…you just got the wrong Smith.
Go
on the internet and archive the October 23rd,
1995 edition of Business Week Magazine. There is an
article there about Bausch and Lomb and events that
happened under Ron Zarella’s watch that reportedly
put Bausch and Lomb in the toilet. What strikes me
about that article is that, although the article
doesn’t directly accuse Mr. Zarella of any criminal
activity or impropriety it does say that sales reports
at Bausch and Lomb were falsified and
misreported…phony invoices and shipments reported
that were never made…Gray market Ray Bans etc.
Whether he knew about it or not, Zarella was in charge
there. My question is…Is there something in
Zarella’s management style or the culture he creates
that pressures or encourages managers and executives
to feel the need to report false sales reports? Does
the concept of Red Ball days ring a bell? (Twilight
Zone music…doo-dooo-doo-doo doo-doo-dooo-doo)
Speaking
of General Motors…Now that the cat is out of the
bag. Can you believe it? Those rascals are going to
open up a program car retail outlet and sell off-lease
cars directly to the public. The first one in Houston,
Texas will probably be operational by the time you
read this. When interviewed by Earle Eldridge at USA
Today…a GM spokesperson pointed out that they were
losing $3000.00 per returned off-lease vehicle. He
went to point out that then the dealers bought these
at auction and sold them to the public for a profit.
What he didn’t say but I find to be entirely obvious
is that General Motors wants that profit. I am going
to put this in the hat as a contender for the
"Double-Cross of the Year Trophy".
Mercedes
Benz…Michael Jackson (factory guy not the rock star)
at Mercedes Benz is shown laughing loudly, or at least
grinning broadly, smiling at his dealers in every
recent photograph in every publication. Of course, in
the photos of Mr. Jackson you can’t see his hands or
what configuration his fingers might be in.
What
Mr. Jackson is allegedly grinning about is the new
"Mercedes Experience". I interpret "The
Mercedes Experience" as being another one of
those happy-clappy new age initiatives where Mercedes
Benz cut the discount profit margins in the products
to their dealers from 13% to 7% and they are pressing
hard for the dealers to adopt a "No-Haggle",
non-negotiable price strategy. I wouldn’t be so
crass as to imply that both the dealer and the public
will ultimately get screwed here but I will say that
BMW and Lexus market share will increase dramatically
as a result of this allegedly goofy miscalculation. I
predict that Mercedes customers will reject the
one-price initiative and they will not accept the
trade values that the lower margins will force the
dealer to offer. Another manufacturer tampering with
the retail process. (Twilight Zone music up…dooo-dooo-dooo-doo)
That
rascal Jac Nasser is at it again. This time he’s
appointing more outsiders to top management at Ford
Motor Company.
The
idea is evidently to get rid of all those old
"Car Guys" and replace them with fresh young
marketing guys and gals with no automobile background.
Unfortunately they will also have no shred of a clue
of how to deal with the dealers or the consumers. That
is of course assuming that Jac himself possesses any
of those qualities. One of the latest appointees to
the position of vice-president is Brian Kelley
previously with Proctor and Gamble. It appears that he
will be next in line for Ross Roberts’ position. The
other new face that jumped out at me was Jim Schroer,
who will evidently be Bob Rewey’s successor. These
guys are really young. At first take when I saw the
photographs of Kelley and Schroer I wasn’t wearing
my glasses and I thought the magazine had mistakenly
printed the photos of Opie Taylor of Mayberry and John
Boy Walton. After further inspection I realized that
Kelley and Schroer don’t resemble either of those
two characters.
A
lonely warrior is barreling through the darkness on a
deserted country road. The fog and mist shrouds the
headlamps as you negotiate tight turns sliding on the
loose gravel. You’re struggling to keep a keen
awareness and a razor sharp edge. This road never
ends…Brent Butterfield your destiny is to be an
eternal traveler…This is The Twilight Zone.
(Twilight
Zone music doo-doo-dooo-doo doo-doo-dooo-doo)
More
Food For Thought
As
a sort of footnote to this article I’ve got to say
that I was cracking up with tears rolling down my face
at the quote where they said that Ross Roberts was
tickled to death that Butterfield Ford was doing well.
I bet he was equally thrilled when Butterfield said
that the Auto Collection in Salt Lake was taking a
nosedive in the shallow end. (Ziegler translation of
quote)
If
Butterfield’s success tickled Ross to death, he must
be absolutely euphoric at some recent Bert Boeckman
quotes concerning the Auto Collections.
GMAC…Incredible!
Let me see if I’ve got this right now. GMAC is
offering lower retail interest rates to the customers
of the dealers who floorplan with them and do more
business with GMAC. That is so unbelievable.
Am
I to understand that the consumer will penalized
financially if they do business with a dealer that
doesn’t qualify…does that mean they will get
higher interest rates from non-qualified dealers?
Somebody is gonna get sued here for sure and I am
betting they’ll lose. This is incredible.
Late
Breaking News (written July 1st)
By
James A. Ziegler
Wouldn’t
you know it? Here I am on vacation with my family in
Florida and a reporter calls me to ask me my opinion
on the resignation of Steve Berrard. Berrard was
allegedly the co-CEO of AutoNation.
Well,
bear in mind that I am writing this on July 1st
and, by the time you read this, some of the events in
this drama will have unfolded already.
There
have been rumors about this for a long time now.
Steve’s resignation has a lot to do with Mike
Maroone. However, the most enlightening part of the
National Gossip on this matter is that Berrard will be
replaced, in the short-term, by one of the major
factory executives. Three names have been floating
around for about three months now.
Personally,
I am betting Berrard’s replacement will be a Ford
Vice-President. If that turns out to be the case,
remember that I wrote in this magazine, six months ago
that this was going to happen and that rumors were
strong that a Ford Vice-President was lining up a
plush job with AutoNation…In that article I implied
that Billy Ford needed to wake up and take a
testosterone injection and throw some of the
Philistines out of the sacred halls before they give
the whole Ford Legacy away to marauding pirates. After
the O.J. Trial you never know what would stand up in
court BUT If an influential Ford Vice-President should
end up with that job…I would have to say something
might allegedly stink about this whole deal.
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