Will the Electric Car Cause a Power Shift in the Automotive Industry?

There was a big imbalance created in the automotive industry, as the Western world’s automotive industry came under serious pressure due to some car manufacturers management and the economy. In the same period, the Eastern world started to manufacture a lot more cars, which were cheaper because the Eastern world’s labor costs are much cheaper than the rest of the world. The reason why they have cheaper labor is due to the massive labor forces they have available.

At the same time, the Eastern world tackled their quality problems by head hunting highly skilled automotive engineers from the Western world. This caused a massive brainpower wave between West and the East. This brainpower shift caused the amount of high quality cars that gets manufacturer in the East to increase massively.

The Eastern countries even merged with some of the world-renowned car manufacturers. Some of these world-renowned manufacturers decided to open their own plants in the East. This wave in the East came like a tsunami, which could not be stopped, this caused the competition to became fierce between East and West.

Predictions are that the East is going to overpower the West in the field of car manufacturing, due to their massive labor force. These labor forces combined with the highly skilled automotive engineers they have head hunted from the West cause them to be a force to be reckoned with.

This whole paradigm shift will cause that the East and Japan to join up and Japan is already a reckoned force in the motor industry. There are predictions that new electric cars will also come out of the East as Mr. Warren Buffet bought some shares in a big company by the name of “BYD” in China who plan to tackle the electric car industry, “BYD” stands for “Build Your Dream”.

All the major players in the automotive industry are busy developing electric cars, even in South Africa there is a company developing an electric car. This will cause a power shift on its own in the automotive industry, as electric cars will replace conventional cars very soon. Predictions are this will happen far quicker than most people realize. Let us not be skeptical about it and look forward to all these power shifts, which may come in the future and hope it will be good for the greater good.

Role of A Service Consultant in The Automotive Industry

The automotive industry has undergone tremendous changes and development in the 20th century and so far there is no stopping to it. Since the rolling out of the first car, the automotive industry news reports a steep rise in sales, as more and more cars are being produced. In recent times, with so much economic liberalization, attractive finance schemes and tax benefit laws and with increase in the income of the local people, car sales have been hitting new highs. However, with changing times, the mentality of people has changed and today services provided by car manufacturers play a crucial role, apart from car designs and models.

As more companies jump into the automotive sector, buyers have more freedom of choice to select the best of the lot. Unlike earlier times, buyers today pay more attention towards the services provided by the car producers. And with a variety of media around, buyers research and gather more information, before they step into any car dealerships. Hence, with so much of emphasis given on service, the role of the automotive service manager is vital to every car company in the market.

Not only does the automotive service manager coordinate and supervise the duties performed by the service staff, he looks after all the operations carried out by the service department. He has to make sure that all the employees working under him are adhering to company policies and other applicable standards and laws. Because the automotive service manager deals with customers and the service department, he has to be calculative about keeping both, the customer and his staff happy. Also, he does need to have a decent knowledge about mechanics of automobiles, and a pleasing personality to maintain customer satisfaction ratio.

Those employed in the service manager job have to ensure customer retention by not only providing repair and maintenance service but also by communicating and understanding customer’s priorities. He has to analyze and identify market reports, and have a good understanding of current trends making waves in the automotive sector. With so many things in one platter, it goes without saying that the service manager job requires leadership qualities, management know-how, counseling skills, apart from the customer service parameters.

At times, it becomes an arduous task for the automotive service manager to cope up with so many responsibilities and duties, which is time when he needs a service consultant, who will help him to get out of his overloaded work schedule. The main purpose of the service consultant is to counsel service managers, who are buried under the work load which comes with their job profile. Service consultants help service managers on how they can perform their duties in an organized way, which will not only bring down their stress level, but also pump out more productivity.

Service consultants also provide insight to those in the service manager job or service director job on how to calculate the productivity of other employees, and educate them with work practices to enhance their customer service skills. Service consultants take service advisor training as part of the service consulting module and set standards to make sure employees always have a positive approach towards their work and are updated with skills and knowledge so that they can provide a better experience to their customers.

Finding Finance and Insurance Careers in the Automotive Industry

Interested in finance and insurance (F&I)? Love cars? Looking for a way to merge the two into a long-lasting and fulfilling career in the automotive industry? It’s time to consider a career in auto sales and F&I management. Now is a great time to invest in F&I training, which can provide everything you need to succeed in this career. That means you will acquire excellent leadership and communication skills and have the expertise required to handle the financial and legal aspects of a sales transaction.

Automotive Business Manager programs are designed to teach the skills required to oversee the financial and legal aspects of the automotive industry. Students in these automotive training programs are trained in finance and lease options, sale of after-market products and the use of specialized software.

Becoming an F&I manager means you will be in the center of the action. It also means you will have a direct impact on profitability and be rewarded accordingly. Need another reason to invest in F&I manager? Job Futures 2000 predicts that more than one-third of all jobs created in Canada will require a skilled trade designation or a college diploma.

What about the extensive restructuring of the automotive industry? There has been a lot of change, but the automotive industry remains one of the world’s largest and most important business sectors. Moreover, a surge in demand is expected as consumers make purchases that would normally have been made in the last two years and additional demand is created by increases in population, new consumer offerings and improved manufacturing technology. Employment prospects for automotive sales and F&I management are good for the following reasons:

  • A growing shortage of well trained individuals to fill sales occupations
  • Service Canada predicts there will be strong demand for qualified candidates in Sales and Service, Business, Finance and Administration “because this sector will account for more than 45% of all retirements over the next five years.”
  • Significant worldwide growth within the automotive industry

You know what happens when demand for a specific job goes up. Salaries also go up. That’s exactly what is happening for F&I Professionals. Key elements of F&I training programs can include the following areas of study:

  • Business Manager’s Role in the Dealership
  • Financial Institutions and Their Requirements
  • Getting the Contracts Purchased
  • Credit Reporting Overview
  • Understanding Credit Scores and Risks
  • Reading Credit Reports
  • Prequalification Using Credit Reports
  • Cash Conversions
  • Bank Conversions
  • Use a Customer-Friendly, Aggressive F&I Process
  • Qualify Your Customer, Use The Right Words
  • Product Knowledge
  • Effective Selling Techniques
  • Menu Selling Leasing Skills and Techniques

Force the Change in the Automotive Industry

It is time for you, the average consumer, to take a stand!

Fellow consumer, for years we have been taken to the cleaners from the automotive industry: It is time for us to demand change in product quality and how the automotive industry conducts business! As consumers, we need to pressure the industry to change course and give us the best product and service they can or let them die – let them go bankrupt! If a few American companies survive they might just get it – they might finally understand that Americans deserve and expect more.

Do not be fooled by the stories of bad economy and poor sales! The U.S. automotive industry has done this to themselves!

I am not saying that a bad economy does not exist but they have been on this road to destruction for a long time. I used to work in an Oldsmobile, Subaru dealership: in 1986 we sold all models from both manufacturers’, please allow me to cite two models from the 80’s to make my point.

1) The Oldsmobile Cutlass Sierra wagon came with a 4-cylinder motor, air conditioning, A.M. radio, power steering, power brakes, the approximate retail price was 10k to 11k.

2) The Subaru GL wagon came with 4-cylinder motor, air conditioning, F.M. stereo, power steering, power brakes, 4-wheel drive, power windows, power locks, split rear seats, rear defrost, multi position front seats with tilt, roof rack and more: the approximate retail price was 10k to 11k.

The Olds had a reputation for having major motor problems and often would not survive past 100,000. By contrast, the Subaru was well known for surviving 200,000 miles plus with little motor troubles. In addition, there was a massive difference in standard comfort features for the same price – we sold Subaru’s at a rate of 40 to 1 compared to the Olds.

The U.S automotive industry continued down that path for several years, as the price of vehicles rose dramatically they started to use financing tactics to sell their inferior products. The inevitable happened and many of the vehicles sold failed to last the term of the loans without major repairs and the resale value of a U.S. vehicle was poor so you could not trade them in without going financially backwards.

Around 1990 U.S. automotive manufactures started to take heed, they produced some better quality vehicles and kept the prices more stable. Unfortunately, along with the better quality product came a substantial rise in part costs. Thus, repair bills began to skyrocket and continued to stay behind foreign competitors’ and their technology. Around 2000 it seemed we went downward again in the Quality department, around 2005 we started to rise some but I think it was far too little and a little too late.

In 2008 Ford Motor Company had an ad campaign on stating they now had cars that with equivalent quality of Toyota. I don’t know about you, but if I owned a Ford I would feel like “Oh great, so the Ford I bought prior to 2008 was admittedly inferior!”

U.S. automakers sponsor racing teams at a cost of millions of dollars per year: they continue to grossly overpay their executives: they have wildly exaggerated union worker compensation: and still, after at least 2 decades of foreign competitors nipping at their heels, they still stay so far behind in technology and quality. Quite frankly, I don’t understand why!

Now, after years of inferior products, higher repair bills, exuberant executive payouts, must have unions in order to work in the plants, they put their hands out for the taxpayer to bail them out? There should be no question about the answer: a resounding NO!

Thank you Mr. Ford for making the model T and further ushering in the industrial age, thank you U.S. auto manufacturing for providing good jobs for so many years: But you are a business after all and must hold to do or die like the rest of the business world!

I am not advocating Americans should buy foreign products – especially in our current economic crisis! However, the majority of the working U.S. public has a limited amount of money for automobile purchases necessitating we use that limited amount wisely. With past and current conditions in the automotive industry higher quality, better comfort, more options for the same price suggests the foreign automotive makers provide “more bang for the buck”.

(By the way, I own two American vehicles, one I am not pleased with at all and the other has so far *crossing fingers* been fantastic.)