If you had the opportunity to listen to Mike Jackson at the NADA convention last weekend, then you know he's not only one of the smartest guys in the auto business, but he's also among the most eloquent. Jackson, the head of Fort Lauderdale-based AutoNation, has been an outspoken critic of the auto manufacturers' "push" policy. His point is that the manufacturers have been making lots of cars in order to keep factories running efficiently without really worrying about whether those cars sold or not. That lead to dealers holding large inventories, which they had to pay interest on, and it also led to trouble throughout the industry.
Here's perhaps the most interesting thing that Jackson said. It is time, he says, that consumers and retailers start driving the bus. Do the manufacturers of shirts and other garments tell Walmart how to do business? Not on your life. But in the auto business, the 800 pound gorilla is the supplier. Jackson also believes that manufacturers need to be listening to consumers. Dealers, he says, need to be that voice of the consumer.
In one of his more colorful analogies, Jackson pointed out in the past the decisions on what's available have not reflected consumer demand. He compared the process with that of a woman who goes to a dress shop wanting a size 12 and is given a size 8 and a diet book.
Jackson is a powerful voice in the auto industry and dealers should recognize that he is probably their best advocate, even if they're not too excited to have a public company plowing full steam ahead into their industry.
Thursday, February 18, 2010
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