Can Detroit Make the Cars Customers Want Essays

974 Words Sep 22nd, 2011 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 transaction. The customer who wants to buy on the spot must choose from cars on the lot that the manufacturer has already configured, priced, and shipped. Despite manufacturer incentives and rebates to entice customers to purchase, dealers often have a glut of new cars sitting in their lots for months at a time …show more content…
Furthermore, auto workers must be paid most of their salaries regardless of whether they are working, so the manufacturers want them working all the time. pushing out factory‐friendly vehicles keeps revenue streams flowing because the automakers are paid as soon as the cars ship to the dealers. U.S. auto makers have to project their model lineups and manufacturing requirements about three years in advance, and experts say there are too many plants in the United States to keep busy all the time. Historically, dealers have been independent or small chains selling a single brand of car and having little bargaining power. They had to accept whatever the auto manufacturers

shipped them, even if it was bad for business. With the growth of chains like AutoNation, the dealers have gained more power in the relationship. For years, AutoNation's CEO Michael J. Jackson has pressured the Big Three to cut back on production and focus on building cars that customers actually want. AutoNation already has experience working with data on the habits of car buyers and the most popular configurations of all makes of vehicles. The work started when the company put forth a major effort to consolidate the customer lists from its hundreds of dealerships. AutoNation uses proprietary analytic

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