Auto industry social networks all have different rules and protocols to create their unique identities in the auto industry and the inter-dependent automotive advertising industry. — what is — that will likely define — what will be and the actions that auto dealers and automotive advertising agencies must take to remain profitable and competitive in unchartered waters.
The current administration was voted in on a platform of hope and change with the expectation that the promised transformation of America would take place within the confines of our constitution and in consideration of our established belief in a free marketplace. That said, as the President has clearly stated, elections have consequences and I will attempt to limit my comments and future visions to only those actions that have or will have a direct impact on the auto industry and the automotive advertising agencies that are engaged to serve it.
The empowerment of the unions in the formation of Government Motors is already impacting the marketplace even while it is being challenged in the courts. Recent adjustments to the language in a variety of Federal powers have impacted previously accepted State and individual rights which must also be considered when projecting the future of the auto industry and automotive advertising — if not our country as a whole.
For example, the change in the definition of eminent domain from taking personal property — for public use — to the new definition — for public good — has already resulted in private and commercial property being taken at distressed market values and given to other individuals that promised a higher tax base to the governing authority based on their position that the additional tax revenue was for the public good. The potential impact on the farming industry and our food supplies evidence a shift in government control of society that must be considered when projecting the future of any industry — including our beloved auto industry.
Given the government takeover of the banking industry, General Motors, Chrysler, Health Care and Student Loans that are now part of our history, the point becomes self evident. My intent is not to defend our previous constitutional republic over the shift to a Socialistic or Marxist democratic society, but rather to apply them when preparing a business model moving forward for my auto dealer / vendor clients and affiliated automotive advertising agencies.
For example, the recess appointment of Craig Becker as member of the five seat body of the National Labor Relations Board, (NLRB), suggests the intent of the administration to resume its push for the Card Check Regulation that is designed to facilitate unionizing all businesses in the United States. stated Republican party interests and those of the corporate world When coupled with the intent of Card Check regulation to eliminate the right of workers to a private vote to determine if a business can be unionized, the likelihood that retail auto dealerships will be forced to become union shops becomes a real possibility. Based on reduced sales volume, profit margins and increased costs of doing business the inevitability of these privately held dealerships collapsing under the financial weight of union demands is painfully obvious to any auto dealer that understands his cost of sales line items and their impact on his shrinking bottom line.
Similarly, the administration’s success in manipulating the processes in the Congress to pass its version of Health Care reform will increase expenses to auto dealers regarding insurance costs for their employees either in the form of forced coverage or penalties which must now be factored into projected operational expenses. Minimum working capital requirements for auto dealers faced with reduced sales, profits and equity to present as collateral for much needed financing has severely limited dealer options to acquire funds to maintain operations.
As already hinted, the solution lies in shifting the focus form brick and mortar facilities to new online virtual showrooms and other Internet based applications that provide more efficient selling processes.