| The proverbial winds of change are blowing like | | | | The "limited use" facilities that dealers operate |
| never before. Some of us are seeking shelter, | | | | have a severely diminished value without a |
| not knowing what to expect and some of us are | | | | franchise. The only way these stores can survive |
| putting up our sails to accelerate in a new | | | | is to grow their used vehicle sales operations and |
| direction and take advantage of the opportunities | | | | service departments. |
| that will no doubt present themselves. We all are | | | | As many of you know, I have always been a |
| heading into uncharted territories. | | | | strong proponent of utilizing, on a daily basis, an |
| I have been in this crazy business since 1970 and | | | | intelligent vehicle inventory management system. |
| have been through a lot of different things over | | | | There has never been a more crucial time in our |
| the years. Never before in our history has it been | | | | industry for dealers to implement a viable system |
| like it is now. I clearly remember Vietnam protest | | | | and process in their stores. You must take |
| marches, shooting of students at Kent State, Oil | | | | advantage of the available technology and be |
| Embargo's, long gas lines, extended manufacturer | | | | proactive in implementing a change in your |
| strikes, President Reagan breaking the PATCO | | | | operations. If you don't, you cannot grow. New |
| union, the very first rebates, 19% prime interest | | | | vehicle trades are going away for a couple of |
| rates, and on and on. | | | | thousand stores. The effect on the used vehicle |
| It is no secret that used vehicles have always | | | | market is yet to be seen but you can bet there |
| played an integral part of building our bottom line. | | | | will be some violent swings. There will be |
| It is also no secret that the financial statement is | | | | shortages in many different segments and other |
| simply ink on paper until we cash the trades and | | | | vehicle inventories are unpredictable. |
| the subsequent trades on those trades. | | | | There is no doubt that some of these events will |
| Remember washout sheets? | | | | create opportunities. If you are not actively |
| History is being made now and unfortunately, for | | | | engaged in the inventory management arena |
| many dealers that were identified and revealed on | | | | there will definitely be lost sales and missed |
| May 14,2009 (Chrysler, Dodge, Jeep) and many | | | | opportunities. These "lost sale" opportunities must |
| more who got their "Dear John" letters on May | | | | be addressed immediately. There is no turning |
| 15th, (GM), their history (and all of ours) is being | | | | back. You are committed to this business. There |
| written each day. It is clear that the winds of | | | | will be survivors and their will be casualties. From |
| change are howling at each of our doors. All of us | | | | my point of view, you still have time to choose |
| are being faced with heretofore unheard of | | | | which category you will fall into. If you sit back |
| policies and are being forced to make decisions | | | | and wait, the winds of change will pass you by. |
| that will affect the lives of untold thousands very | | | | If you would like to talk about implementing a |
| quickly. Our future is being created now. No one | | | | growth plan coupled with a proven vehicle |
| has a crystal ball but you can bet your last dollar | | | | inventory management system for your store, |
| (and some of us are) that dramatic events are | | | | please feel free to contact me anytime. |
| unfolding before our eyes. | | | | |