There was a good piece in this morning’s Media Post Marketing Daily, reporting on an IHS/Global Insight presentation at the New York Auto Show. I say that because the conversation focused on trends that will have significant impact on the car business, including the future availability of credit and the fact that right now, nobody is a clear winner with young people (future consumers). Click here to read the story.
Implications: As consumers continue the process of de-leveraging, and as credit remains tight for all but well-qualified buyers, financing will be an important issue for the car business. Many people simply can’t get it, and many others simply don’t want it. But as credit markets recover and consumers regain their confidence (about future income prospects and financial stability), the credit issue should diminish as a barrier for the industry.
What remains more within the industry’s control is that second observation from IHS/Global Insight. My interpretation: Focused so hard on trying to salvage their core (older, more established) customers, nobody enjoys a clear lead among younger automotive consumers. That’s not just a manufacturing issue, suggesting that the new cars aren’t quite right; it could be argued that the digital dashboard many vehicles offer now is just the thing for today’s younger, connected buyers.
But has the way dealerships sell evolved, too? Yes, most dealers have embraced online shopping and buying. But what of the in-dealership experience? That might be an area worth review. Because it seems to me that lack of leadership among young car buyers is not a problem.
For someone, it's a tremendous opportunity.
Mike Anderson
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment