On My Honor
By Jim Ziegler
Thirty-four years, 13 cruises and four wars, we buried the old Chief in May of 1991. Dad was a big guy, standing six-three, with a commanding presence and that electric intensity that made him a leader. My father was a Chief Petty Officer in the U.S. Navy-one of the very first E-9s-an aviation jet engine mechanic-a leading Chief.
As I write these words, there is a portrait of my father on the wall here in my office. I am looking at him in his dress uniform with eight gold stripes on his sleeve and three rows of medals and ribbons covering everything from World War II, when he served on the original Enterprise, to the Blockade of Cuba-when he was also a "plank holder" on the second Enterprise. The old man served during Vietnam and, when we were stationed in Meridian, Mississippi, he was leading chief for a training squadron where he became friends with a wild young lieutenant, a student pilot named John McCain, who is still a personal friend of my family.
Chief only had an eighth grade education but he was one of the most brilliant and educated men I have ever known. He read voraciously and was conversational in many deep, intellectual subjects.
An enlisted man with a wife and three children doesn't make a lot of money, but our life was rich in many other ways. My dad was an honest and honorable man and he taught us morals and strong values-the meaning of right and wrong. I have to admit that many times I've lost my way, but, no matter how far off-track I strayed, Dad's influence always brought me back to dead center. Very few people today have the guts and conviction to stand up for anything they believe in.
The night I was awarded my Eagle Scout was one of the proudest moments in Chief's life. I can still see the old man smiling as I stood on the stage with the others and raised my right hand in the Scout sign and said those words-
"On My Honor."
Over the last 15 years I have had the pleasure to have met and done business with thousands of franchised automobile dealers. To be sure, if you were to look hard enough, I am sure that you might find some dealers who personify every negative stereotype. When you are talking about a group of more than 20,000 entrepreneurs-high-performance super-achievers-yeah, I guess the odds are that someone in that group might be dishonest or dishonorable.
But, I have got to tell you: I have done millions of dollars of business with thousands of car dealers without a contract any stronger than a handshake and a clear agreement. And you know what? I can count the times that I haven't been paid for my services on one hand. Car dealers are some of the most honest and honorable people that I know, hard business people, granted, tough but fair.
Right now we are seeing a strategic, calculated campaign to bring the dealers down-a concentrated effort by a hostile, liberal media to smear and discredit the franchised car dealer. And, I believe, from evidence that I have seen, that some of the "smear tactics" we are seeing are being promoted and sponsored by some of your factory partners.
The year 2000 NADA Convention saw dealers and their factory suppliers at war-like street gangs battling over their turf. Then, all of a sudden, Ford and General Motors extended olive branches and peace was declared.
Ron Zarella is now really sorry, he never meant to hurt anybody-he's really just a little misunderstood. We are supposed to believe that ole Ron's really a good fellow. Speaking of "Mr. Nice Guy," we found out that Bob Rewey was really always the Dealers' pal after all.
Bullcrap! If you believe for a moment that this thing is over, then you are extremely naive. The factories are coming after the franchise laws and they hope the dealers' organizations are snoozing.
Step back for just a moment and study the factory culture. It's all the same robots spouting all of the same ridiculous party lines and false paradigms. They're all marching in lock-step and the truth isn't in them. Free thinking and free speech are dangerous in a factory culture.
This is hot. Last week I read an article about the latest alleged results of some alleged research by J.D. Power and Associates.
Now, let's put the cards on the table here. Those of you who have followed my articles over the years, it's no secret; you know how I feel about J.D. Power and Associates.
Personally, I don't like J.D. Power and Associates and I would be willing to bet that they don't like me-I don't like their company and, personally, I don't believe their research is valid. I suspect their company's statistics as well as the motives for their research. Maybe that's just me. But, the specific, alleged research in question this time was a recent survey of 400 alleged car buyers who allegedly used the Internet to some degree in the purchase of a new car.
The article went on to quote Chris Denove, director of consulting services for J.D. Power, as coming to the conclusion that consumers would rather deal with buying their cars directly from the factory whether they saved any money or not.
Now, I ask you, "Just how damn convenient is that?"
Just when the factories are waging war on state franchise laws and lobbyists and bogus consumer groups (more lobbyists) are positioning this thing as an Internet commerce issue-just as all of that is happening-good ole J.D. Power and Associates comes riding in with this amazing research showing that as many as half of the Internet car buyers would rather buy their cars directly from the factory.
Who would have guessed in their wildest dreams that you could interview just 400 people and come up with these pinpoint, crystal-clear, definitive conclusions? And-hold the presses-guess what else? J.D. Power and Associates also came up with the amazingly factual supposition that many of these same Internet buyers would rather order a car to be custom built for them by the factory, even though they never drove it, and they would be willing to wait while it was being built.
Wait a minute here! Isn't this what several of the factories are already trying to do? Aren't they designing Web sites that will allow the customers to order directly from the factory and custom-order their cars? The only problem standing in the way is those pesky franchise laws.
Holy Cow! It's a freaking miracle, Batman! What are the odds that just at this precise time in history that J.D. Power would come up with this alleged conclusive research that just happens to support the factory agenda, derived from a 400 respondent survey of people that they came up with from God knows where? Who would have believed it? Nobody! Just who was it who commissioned and paid for this alleged survey anyway? Was this just another one of those J.D. Power free public service surveys?
Okay-okay-maybe I am just a suspicious, skeptical, jaded sort of guy. Possibly, I am completely wrong about Dave Power and J.D. Power and Associates. Writing this column and taking a clear, four-paragraph shot at Dave Power is sort of like slapping Mother Theresa. Some people believe this guy is a saint. Okay I admit it! I just might be wrongNaw!
Hey, did you read the news?
Today is February 29th, the first leap year of the new millennium. As I write these words, I am looking at an Associated Press headline that reads: "Slumping Sales Close Saturn Plants."
Excuse me, I was just whistling "Ding Dong, the Witch is Dead" from Wizard of Oz.
This is an exciting time we're living in, folks. As I said in my last article, I believe that in the next few years we will see the selling off and dismantling of the tattered remains of the former AutoNation Empire as Wayne sneaks out the back door. We're talking about a company here that went from a $15 billion juggernaut to a $3 billion comedy act in the blink of an eye.
In the very near future, I believe you will actually see photographs in this magazine of me and my son and several hundred Chrysler Dealers skateboarding across the vast expanses of empty asphalt at one of those closed down CarMax lots.
And, sooner or later, even those die-hard gluttons for punishment at General Motors are going to have to admit that Saturn is an embarrassment and should be humanely put to sleep.
Remember, I have repeatedly pointed out that Saturn is the main reason that General Motors is in such pitiful shape today (see archived articles at www.ZieglerSuperSystems.com or dealeronline.com). They have spent billions subsidizing that goofy concept at the expense of their bread and butter divisions and, subsequently, put their entire market share in the dumpster while trying to make that pig fly.
Now, I realize that Saturn has gotten a ton of great press and the laser sharp, incredibly accurate research by the prestigious J.D. Power and Associates has repeatedly given them incredible reviews-and that same alleged research has always shown that Saturn buyers are the absolute toppermost of the customer satisfaction surveys-and their customer loyalty is phenomenally strong. Wow! Gosh! Saturn is so great and that goofy one-price no-haggle sales process is so popular. I am ever so impressed.
Okay, humor me for a moment here-remember, I am just a high-school graduate from the west side of Jacksonville. I admit it, I'm a little thick-but-if their customer satisfaction is so high and their customer loyalty is so high and if all of these consumers love the no-haggle process so much, then why aren't they selling any more of those damn little buggers than they are? How come they are shutting down their plants at a time in history when cars and light truck sales are up more than eight percent nationally? Somebody must be lying here somewhere-somehow-somebody is lying and that's a fact.
Now, I am not saying that Saturn products are necessarily "geeks' cars." I admit that I have heard some people say that, but I will tell you that I have personally met several Saturn owners who were normal people and who were not geeks. You may have been thinking that if Saturn is not a geek's car then why do they have such geeky commercials(I think the kid playing the tuba was my favorite)-and why do they clap and sing their little Saturn song at their customers like a bunch of waiters at a Friday's birthday party? I don't know the answers to those questions but I promise to research it for future articles.
Of course, whether or not those geeky commercials are actually geeky is a matter of personal opinion. I think they're geeky, but you may think they're cool. Then again you might also be a "propeller head" yourself and maybe that's influencing your opinion and that's why you think that way. It really makes me chuckle every time I hear that commercial where the roommate yells out in the dorm, "Hey, anybody order a Saturn?" After checking their sales figures, the answer is obviously NO!
Shoot, I'm chuckling right now just typing it here.
Truth be known, I believe those Saturn folks should be just about out of excuses by now. They have used up every reason but the truth as to why they are failing so miserably. They're having to incentive-ise those little buggers just to get them out the door and off the lots.
Now they are trying to spin the story that the reason is that nobody realized they had a reasonably priced Big Saturn. Next, they're saying that they need the Sport Utility vehicle that is coming in 2002. Quit it! It is never going to fly. There is nobody and nothing that can save Saturn. That ox is gonna stay in the ditch.
I do have a suggestion to increase Saturn profitability, however-I am thinking about a designer fashion line that would appeal to some Saturn owners. Maybe the parts department could sell glasses that have already been pre-broken in half and taped back together in the middle-or maybe Saturn pocket protectors.
Getting tired-starting to nod off a little-I am sitting here slowly shaking my head as my left hand idly swirls a half-filled snifter of cognac. It's after midnight and I was just thinking about some poetry I wrote once, a long time ago. Still looking at that old portrait of Chief hanging on the wall-every time I look at it I think of integrity. You know, Chief loved poetry. One thing I am fairly certain of, though: he wouldn't have cared much for some of these people.
More Food For Thought
- Keep On Truckin'.
Well partners-I have it from impeccable sources that Ford has succeeded in finally blowing their lead in market share in truck sales in the great state of Oklahoma, where they have an Auto Collection in every major market.
After nearly twenty years of market share superiority, they got beat in trucks last year. Actually, I believe you might conceivably say that they got their butt handed to them. I can't wait to see what they have accomplished in Utah. I will have that report by next issue.
- Quality is Going to Be Job 1 Again-maybe.
High-level meetings at Ford about product quality concerns are shaking the building. I am still trying to verify statistically a statement a dealer made to me that Ford recalled more new cars last year than they produced.
- Those double-crossing Internet buyers.
Recent research by CNW research (Art Spinella) out of Bandon, Ore., actually concurs with J.D. Power research in several areas. (This is getting scary). It seems that the general consensus in the research community in general is that Internet customers are statistically likely NOT to buy from the dealer who provided them with the figures. In other words, the typical Internet inquiry is using your numbers to leverage the dealer they actually intend to buy from. But then, you already knew that.
Jim Ziegler is President of Ziegler Supersystems, Inc. jziegler@dealeronline.com
