Walking down an aisle at Sams or some other big box retailer and you are car shopping. This may not be that far from reality in the near future. Penske is considering buying Saturn and putting the nameplate on some cars from China and So Korea. A china company is buying Hummer minus the military version. There will not be a lot of profit in these vehicles and what idiot would build an expensive showroom after GM and Chrysler pulled the plug on several new facilities. Of course these may be for sale cheap. Chrysler is forecast to fall from there present 11% of sales to 3% by 2012. That along with the investment by Fiat capped at 6 billion there is a long road ahead for Chrysler. GM however is leaving 10 years of debt and has a solid lineup of cars in the future. With the government pushing mileage requirements and cleaner cars they are going to be spendy so the time to buy is now, but with money tight that is hard for many of us to do. With the fire sales going on right now search the money it is out there. My heart does go out to the many dealers who have lost their franchises I along with many others thought that if you had a profitable dealership it would go on forever. But this has not been the case, not to wish anyone bad luck but I hope in some fashion this comes back to bite Chrysler and GM in the rear. As in the repair business I have an idea these dealers were the ones doing business the old fashioned way with no high pressure sales IE you can’t go home without buying a car because we lost your keys or we made a mistake and sold your car.I doubt if Chrysler can make it even after bankruptcy I think it will be Ford GM and Toyota. You need to change the direction and leadership to become profitable and Chrysler has done neither and any big changes are forecast for 2012 way too late.
Category Archives: Greenflag
52K For A Pickup
As most of you know, if you read my blog or web site, I am retired and have more vehicles then we need. We have been shopping for a different pickup, we now have 2 cars which we drive usually, a pickup and a convertible. The later 2 are only used when we or the kids need to haul junk and the convert only when it is nice out. We would like to cut back to 3 keeping the convertible a newer pickup for me and a SUV for her. But I was surprised, driving through a lot on Sunday, really enjoyed the outing after sticking close to home during the flood, there was a new 4 door pickup priced at 52K. 52 thousand dollars for a pickup, I almost dropped my teeth. I have been involved in the automotive field all my life true I don’t get out as much as I used to but the 52K price almost knocked me over. Maybe I will reconsider and fix up the old Dakota. On a personal note I hate to see GM drop Pontiac and it is not because I own 2 of them. In my opinion the GTO was the first true muscle car followed by the Judge. I know they have to do some things to stay afloat and some of these are going to not be to my liking and I hate to be negative about these changes because I don’t have any answers. My hope is that they can afford bankruptcy which looks more inevitable every day.
Broken Plug Removal
Kind of a follow up to the earlier welded plug wires posted earlier in DIY guide [url”>http://www.greenflagauto.com/forum/Welded-Plug-Wires-t1876.html&pid=5348#entry5348. Ford has come out with a long bulletin and a couple special tools, on removing a broken plug. With 100K plug replacement this is going to become more of a problem. Fords contention is that the pieces of plug can be removed without removing the head; no other Major has commented on this, Ford is using a different plug that is about 3 inches of thread and metal in the head. Adding this length to a 100K replacement is bound to cause problems. I disagree with this, the head has to be removed to assure none of the particles enter the engine, if they do they can cause all sorts of problems some that may not show up for many miles. I haven’t tried it yet, but I will, doing a carbon treatment to the engine before plug removal. I believe will cure numerous problems caused by the longer plug.I don’t know but it looks to me that the 100K plug is costing more in the end with all the problems. I don’t see where it is a cost saving. Also as plugs wear the engine runs leaner thus more engine wear. Maybe these major manufactures are not as dumb as I think.
GM Below $10.00
GM stock fell below $10.00 today for the first time since 1954 oil was at $143.67. There is some talk of bankruptcy but will the government step in and save it as it did Chrysler many years ago. At one time I would have said they will but after so many jobs have been moved out of the country. They have 280,000 employees with 140,000 in the US. One of the items they are trying to sell is the Hummer but at $4.00 a gallon I just can’t imagine they have a lot of interest.Other auto makers stock pricesFord $4.36Toyota $91.40Honda $33.29Nissan $15.80I wish the election would come sooner but I just don’t know if either of the candidates have the answers.
Energy Costs
Does filling the gas tank leave you depressed? Get used to because everything is costing more.From oil changes to washer solvent, groceries and entertainment all cost more. Oil changes have risen by at least $5.00. The cost to go to a movie is almost a day’s pay to many folks. I don’t understand why the industry has not been affected by this. There are several rental choices on line, and the monthly cost is less than one night at the movies. Of course if you leave the munchies alone it is cheaper, which I can’tCost-fighting tactics are getting out of line: Stalling bare-minimum crucial repairs are going to come back to haunt many owners with increased costs when the repairs become necessary. Fuel remains the single biggest expense for car owners over the lifetime of a vehicle at about 30 percent of costs.There are cures if the government would just explore them. Bush says that the Saudis can’t pump anymore which is false the Saudis say they are pumping 8.5K barrels per day 8 months ago they were pumping 9.5K and they say they have the capacity to pump 11K barrels per day.Perhaps cutting the reserve input will help but I doubt it we need a positive and long term solution. Warren Buffet said today that we are in a recession and I agree many families are cutting back on necessities to pay their energy costs. Yet we continue to send money everywhere even to places that don’t want it.I wish I had a cure but I don’t and I don’t think what I see coming up in politics are going to have a solution.
Overnight Service
ATLANTA, May 21 /PRNewswire/ — In an effort to assist customers with managing their time, America’s Service Station in Atlanta, Georgia has added to their extensive list of customer-friendly benefits. Overnight Car Service is the newest advantage offered by all 10 area locations. This concept was developed in order to help customers with busy schedules guarantee the turn-around time of their car repairs. By appointment, and for most services, a customer is able to leave their vehicle anytime before 5 pm and receive it back, with all services completed by 7 am the very next morning.Scheduling a time to bring your vehicle to a repair shop for service has never been a problem for any customer. However, the uncertainty of when you will actually get your car back has been a dilemma for most. America’s Service Station has put an end to the waiting and wondering. Brian Gillis, owner/operator of the Acworth location, spoke briefly about the latest addition to their business. “It’s revolutionary to the car repair business. We’ve always been trend-setters in this industry, and we continue to find ways to be fresh and innovative when it comes to servicing our customers.”The local patrons have taken an immediate liking to it as well. “I can’t see myself having my car repaired any other way,” says Mary Wallerford of Woodstock, Georgia. “I’m always on the go, out and about town, car-pooling the kids to soccer practice or dance lessons. I can’t be without a vehicle for any extended period of time. I’ve been a satisfied customer since I moved to this area 3 years ago, but this new service has made me even happier.”America’s Service Station has 10 Atlanta area locations that repair and maintain vehicles of any make or model. They are open for business 7 days a week and offer their customers benefits that are unique to the auto repair industry.Crew Chief Note I thought about this several times when I had my own shops and often wondered if it would work. I would think it would in a neighborhood setting.
SYNC in Hyundai & Kia
DETROIT – Microsoft Corp. has signed a worldwide deal with automakers Hyundai and Kia to use its in-car software that allows people to use voice commands to control personal music players and telephones.Microsoft (nasdaq: MSFT – news – people )’s exclusive, one-year agreement with Ford Motor Co. (nyse: F – news – people ) for offering Microsoft Auto in the U.S. expires in November. Ford’s system, called “Sync,” connects mobile phones, iPods or MP3 players to the car’s audio system.Fiat (nyse: FIA – news – people ) sells cars with the software outside the U.S.Hyundai Motor Co. and Kia Motors will be entitled to sell cars equipped with Microsoft Auto around the world starting in November, but the companies are working on new capabilities and probably won’t be ready this fall, said Velle Kolde, senior product manager for Microsoft Auto.Kolde wouldn’t say what types of features Hyundai and Kia may add but said the software could include navigation and an emergency call service activated when air bags inflate.”What specific features you see will be tailored toward the types of vehicles they go into,” Kolde said.The two Asian automakers also will tailor features to geography and needs of each country where their cars are sold, he said.Microsoft is now free to license the software to other automakers as well.Ford’s system, called “Sync,” connects mobile phones, iPods or MP3 players to the car’s audio system.Sync is standard on some Ford Motor Co. models but optional others. On Ford’s Focus and Fusion cars, about 50 percent of buyers pick the Sync option, said George Pipas, Ford’s top sales analyst. News source: Forbes
HMMMM
WHY IS IT WITH 10 OR LESS LAPS TO GO, A CAUTION CAUSED BY SOMETHING DROPPING OFF A CAR OR A CAR DROPS OIL ALL OVER THE TRACK CAUSING A YELLOWAT ODD TIMES A CAR, OR DRIVER WILL DROP BODY OR BRAKE PARTS WITH NO CAUTION?WHY IS IT THAT KYLE PETTY IS RIDE SHOPPING BUT NO ONE HAS OFFERED.DERRICK COPE NEVER FINISHES MORE THAN 10 LAPS? JR IS IN THE TOP 5 AND LEADS RACES EVEN WITH EURY JR. SAME AS LAST YEAR JUST BETTER FINISHES BUT THEY STILL OVERCORRECT. WHERE IS JAMIE MC MURRAY LATELY? IS HE STILL EMPLOYED?DANICA FINALLY WINS WHAT NEXT?RUSTY WALLACE CALLED DANICA THE BEST FEMALE RACER WHAT ABOUT HIS NIECE?$52000 FOR A YUKON HYBRID IT BETTER SAVE MONEYIT COSTS $4.00 MORE A YEAR TO FEED A CHICKEN BUT THE PRICE OF EGGS TRIPLESWHERE IS THE SAVING WITH ETHANOL IF THE FOOD PRICES KEEP CLIMBING OF COURSE IF FUEL PRICES KEEP RISING WE WILL HAVE TO MAKE A CHOICE FUEL OR FOOD. IF IT AINT BROKE DON’T FIX IT IF IT IS USE DUCT TAPE
Cerberus and GMAC
I was reading Forbes about the fact that AM Best is about to drop GMAC insurance rating down from an A- because they may have to problems with their mortgage division. So who is the majority holder of GMAC, Cerberus, who just purchased Chrysler? My problem here is how entwined are the big 3 I had no idea they owned all of one and the finance arm of another. I am now worried that if one fails will they all go down or will they try to protect each other and risk going down together. How much involvement is there among them? Also who owns the majority of Cerberus, I would bet the house of the rising sun is in there somewhere. Will do more research and write more on this later.
Fewer Auto Repair Shops
If you see fewer auto repair shops in your area then you are witnessing a trend that is spreading throughout the auto repair industry. The small independent auto repair shop is getting squeezed by both the dealers and the ‘backyarders’ creating shrinking margins and putting many auto repair independents out of business. The global problem is the auto repair and service market has been shrinking in the last ten or fifteen years. Technology has made cars much more reliable with fewer breakdowns, repairs and scheduled maintenances. Many manufacturers offer some sort of 100,000 mile warranty meaning that the independent will get little chance to work on that car for the first 5-10 years it is owned. As new car sales margins have gone down, VW, Chevrolet, Toyota and other manufacturers are looking to their service departments to make up the difference. Additionally many dealers such as Porsche and Saab have been adding other value added benefits such as a loaner car while repairs are being made. Independents are now being forced to give courtesy rides to customers in an effort to keep up with the dealers since customers now expect this service.Furthermore dealers such as Mercedes and Ford are now directly offering specials on services making their dealer prices comparable to independent repair shop prices.But it’s not just competitive pricing that is worrying the independents. The battle for skilled labor is also being won by the dealers: the dealers have always competed for skilled labor and now have become even more aggressive. With fewer young people entering the auto repair profession and opting instead for careers such as health and technology, the total talent pool of the top skilled auto technicians is shrinking. Increasingly it is becoming harder for independents to hire and retain these highly skilled employees. As an automotive technician, would you rather work for Audi or Joe’s Garage? The dealers are picking up the best ‘mechanics’ or as they are known today, ‘technicians.’ A top end dealer technician can make $100,000 a year with benefits while an independent shop owner would have to gross over a $1,000,000 a year to make that and still have to pay for their own benefits and social security. Because of these economic realities many independent owners are now closing their shops and going to work for GM, Nissan and other dealers. This puts the independent auto repair shop at a distinct disadvantage when diagnosing and repairing difficult drivability, fuel injection, electronic and computer related problems. Additionally, if a diagnosis is made and a part needs replacing the dealer will have it in stock, not only verifying the diagnosis but greatly speeding up the repair time and increasing customer satisfaction. Big advantage Cadillac and Mercedes.But it’s not just a skilled employee war. Techs cannot fix cars without information and there has been a long and ongoing dispute between the dealers/manufacturers and independents over technical information access and diagnostic tools. The manufacturers claim that their technical information is proprietary while the independents claim the information should be available to anyone that owns or fixes that make of car. If the dealers wanted to they could stop all outside repairs on their vehicles but the problem is are not enough dealerships to service all geographic areas, especially smaller towns and less populated areas. So the manufacturer/dealer gives out some information but not all, often charging the independent repair shops for this information. Not only does the independent have to buy some parts from the dealer, but also some of the technical information as well. Big advantage Honda and Dodge. Some independent owners simply watch their business steadily decline over the years as they go out of business. Younger independent owners are willing to work harder and for less financial reward hoping industry conditions will eventually improve. In essence the independent auto repair industry has matured and is now in a decline. Some consolidation is going on but much of the repair work has either disappeared or is now being done by the dealers, auto repair chains or one person ‘backyard’ shops. The opportunities are there for those that want to work hard but those opportunities are increasingly limited. In a declining market, only those independents that can develop new competitive strategies will survive and thrive. As with all mature and declining markets there will be new opportunities for those owners that can adapt and make the changes. Those independent auto repair shop owners that don’t modernize, strategize and compete will go the way of the Edsel and Model T. News source: thisisby.us