This website uses cookies to ensure you have the best experience. Learn more

Can Detroit Make The Cars Customers Want?

2402 words - 10 pages

1. Why is AutoNation having a problem with its inventory?
They order a customized vehicle for a customer, but such an order usually adds six to eight weeks o the transaction. The customer who wants to buy on the spot must choose from cats on the lot that the manufacturer has already configured, priced, and shipped. Dealers often have a glut of new cars sitting in their lots for months at a time that no one wants to buy it. The swollen inventory and slow turnaround hurt dealers because they must borrow money to pay for the cars the manufacturers ship.
Why is this also a problem for auto manufacturers such as GM, Ford, and Chrysler?
Their manufacturing processes are not set up to quickly ...view middle of the document...

Traditional Catholic Forum
A place for SSPX and other Traditional Catholics to discuss matters pertaining to the Catholic Faith

Welcome! ( login | register ) | » Catholic Info » Traditional Catholic Faith » The Greater Depression - Chapter I » Unsold cars a BIG problem for... |

members | search | help |

Pages: << prev 1 next >> | |
Top of Form
Unsold cars a BIG problem for dealers |
Level 5

Group: moderator
Posts: 9,490
Joined: Aug 18, 2006

| | |
Unsold cars rile mega-dealer
AutoNation: Glut worse than makers say, requires bigger cuts

October 27, 2006

The nation's largest dealer of new cars and trucks said Thursday it is struggling to sell many more domestic vehicles than industry reports about swelling inventories would suggest -- and the problem must be dealt with soon.

"The challenge that we have is even greater than people are talking about," Mike Jackson, chief executive officer of Florida-based AutoNation Inc., told the Free Press in an interview. "It's weighing on every retailer."

AutoNation is a crucial cog in the U.S. auto industry, with 80 General Motors Corp., 48 Ford Motor Co. and 58 Chrysler Group dealerships nationwide, in addition to 147 other auto franchises. Jackson's remarks came after AutoNation reported that its profits sank 37% in the past three months, to $81.8 million -- giving a glimpse into how Detroit automakers' falling sales are affecting dealers.

Jackson said GM, Ford and Chrysler need an aggressive combination of incentives and production cuts soon to deal with the inventory glut. Otherwise, he said he feared dealerships across the country would be selling 2006 vehicles well into 2007.

All three automakers noted that they already are taking steps to cut production.

Ford said it would cut its production of new cars and trucks during the last three months of the year by 168,000 vehicles -- its deepest production cut in more than two decades. GM is cutting 150,000 from its production. Chrysler, meanwhile, has said it would build about 135,000 fewer vehicles during the second half of this year.

Paul Ballew, executive director of market and industry analysis at GM, and George Pipas, Ford's top sales analyst, emphasized that AutoNation orders its vehicles, so it has some control over its inventory levels.

But Jackson insisted the automakers are not being aggressive enough in managing their supply of vehicles.

Dealers take out hefty loans to pay for the big inventories they keep on their lots, an expense that can become painful when inventories swell or interest rates rise. The Federal Reserve raised interest rates 17 straight times before August to keep inflation in check. That means the candle has been burning at both ends for domestic auto dealers.

How inventory is measured

Jackson expressed concern the automakers are...

Other Papers Like Can Detroit Make The Cars Customers Want?

Why Give The Customers What They Want?

1411 words - 6 pages businesses have a disadvantage since they cannot get the product to their customers in the very best case, the next day. If I want a DVD player, I can buy one from and wait a couple of day to get it, or go to my local Wal-Mart and buy one and take it now immediately. Video stores and bookstores have a unique format within themselves. Other than the online ones, these are all brick and mortar businesses. As far as delivery, they have

The Hiring Process For ABC Inc. - The Company Is Having Problems Getting New Hires Ready To Work. What Can Be Done To Make To Process Run Smoothly?

892 words - 4 pages information about the person available in an easy-to-read format. At a glance, the recruiter can see the candidate's schedule availability, experience and other relevant information, along with suggested interview questions. This is a way to start a good communication with your new hire to make sure that they have turned in everything that is required for the job. Also, an appointment for a drug screening is to be made at this time. They can

Computers and the Internet Play an Increasingly Important Role in Health and Social Care. in What Ways Can They Help Make Care Safer and Better? What Problems Can Their Use Create?

1595 words - 7 pages their conditions, be it negative or positive, this helps others in the forum as they talk about experiences and not what they have read. The computer and the internet can make care safe and better to patients in remote areas. This enables patients to have medical advice and other options to treatment that may not be available to them. Internet can enable easy communication between service user’s and service providers, they can share

I Everyone, For This Week, I Want You To Read And Respond To Another Case Study. Read The Case Study Measuring Teacher Leadership. This Study Can Be Found Under The Materials Tab For Week Four. Answer...

1196 words - 5 pages supplies snacks to the Unites States. The organization has expanded its operation to several places in the world trying to overcome the barriers of cultural and ethical differences. The organization expansion aims at accessing cheap labor from other countries and enlarging the market hence increased profitability. The company has a continued expansion in the line of its products so that it can satisfy the needs of the customers globally (Adamy, 2009

Using the Data and Your Knowledge of Recent Economic Events, Assess the Contribution That Fiscal and Monetary Policies Can Make in Maintaining a Stable Economy

724 words - 3 pages As stable economy is one which has low rates on inflation and unemployment and a steady rate of economic growth along with a current account stability. Fiscal policy involves the use of government spending and tax receipts to influence the level and pattern of economic activity, whilst monetary policy uses interest rates to achieve the same. Fiscal and monetary policy can be used to influence short term Aggregate Demand with the aim of

Bass Case Study

1484 words - 6 pages workers should be able to carry their jobs carefully. Creative workers are also important to provide customers with different types of customization ideas they can do to their cars. By providing a high quality vintage car restoration service, the car we restored won’t break down frequently and will have a longer life. This is more valuable to our customers than just restoring the exterior of the car. Thus, I recommend that we focus on quality

Automotive Industry Research

2220 words - 9 pages are looking for more environmental friendly cars. Scientists believe that for automakers to continue successfully, they need to follow the desires and want of the consumer more eco-friendly fuel-efficient cars. Can the U.S. automakers survive in this current economic situation? Only if they are willing to make drastic changes that the consumers want. The Volkswagen (VW) Jetta was recently names “Green Car of the Year” at the Los Angeles auto


979 words - 4 pages managers to forecast, influence, and integrate into marketing plans. But it is important that marketers take into account social changes happening in societies in which their customers live when they are framing their marketing strategies. Societies can change in manners which can make companies’ current products and services totally redundant. Time-Starved Customers: Today, fewer customers say that expensive cars, designer clothes, and pleasure

Used Cars

2197 words - 9 pages about used car which you are required. On the bases of inspector information, a customer can buy a used car. WHY IMPORTED CARS ARE BETTER THAN LOCAL CARS What you look when you go to an automobile dealer for purchasing a car? Either you want durability, quality, engine strength, price or affordability. The answer is not complicated you look for all above mentioned factors when you intend to buy a car. No matter you want a vehicle for meeting

Henry Ford

2642 words - 11 pages wouldn’t have to make the same part that would fit different cars. Ford also had innovations for labor as well. He was the first to ever double the pay for his employees. This changed the way companies paid their employees. Being Responsive to Customers “The first law of business is take care of the customers” (Angelo Kinicki, 2012). Ford was able to keep his customers happy and take care of them by reducing the costs of his vehicles. He did

Wriston Manufracture Corporation

5906 words - 24 pages new plant. Sullivan knew that the decision would be difficult. "We must," he noted, "consider the company's responsibilities to the employees and to our customers; and we must look beyond the Detroit plant to the needs of the division and the corporation. In the end, however, the decision may well boil down to what we think we can do with the people we have available." Heavy Equipment Division The Heavy Equipment Division (HED) was a

Related Essays

Can Detroit Make The Cars Customers Want

989 words - 4 pages CAN DETROIT MAKE THE CARS CUSTOMERS WANT? Burger King lets you "have it your way. Your local car dealer is usually not quite so customer friendly. A typical ready-to-buy car shopper may walk into the dealership with an idea of how much he or she wants to spend and which features the car should inc1ude for that price. Many dealers will order a customized vehicle for a customer, but such an order usually adds six to eight weeks to the

Can Detroit Make The Cars Customers Want?

982 words - 4 pages ' lots are bulging with unsold gas-guzzling pickup trucks and SUVS. Detroit auto makers have lost even more market share to the Japanese and Koreans, who are adept at producing small fuel-efficient cars. U.S. auto manufacturers are scrambling to revamp their product lineups, but they cannot move quickly enough. Why haven't auto manufacturers been able to produce the car models and options customers actually want? Why can't they just produce more

Can Detroit Make The Cars Customers Want?

831 words - 4 pages ' lots are bulging with unsold gas-guzzling pickup trucks and SUVS. Detroit auto makers have lost even more market share to the Japanese and Koreans, who are adept at producing small fuel-efficient cars. U.S. auto manufacturers are scrambling to revamp their product lineups, but they cannot move quickly enough. Why haven't auto manufacturers been able to produce the car models and options customers actually want? Why can't they just produce more

Read The Case Study Can Detroit Make The Cars Customers Want? And Answer The Following Questions:

2605 words - 11 pages customers with credit cards, personal loans, mortgages, deposit, wealth management services and corporate finance. The Next Generation project is a SDLC project focused on retail and business customers to improve and enhance the Credit Card Application Processing System. This system will enable bank to integrate reliable framework for growing database which includes modules like Data Warehousing, Quality Control (QC), Scoring, Policy and Contact Point