You think Detroit automakers have problems? Pity the poor dealers. By chasing high margins and plant efficiencies instead of building what customers actually want, Detroit has stuck dealers with an inventory crisis, says AutoNation head Michael J. Jackson.
AutoNation is America's largest chain of auto dealers — and, being a car salesman, Jackson has a solution to sell: Ditch the century-old approach whereby Detroit builds what makes sense to Detroit, then lures lukewarm customers with incentives and rebates. AutoNation and other dealer megachains may just have the clout to make change happen — Jackson has already pushed automakers to cut production and led a revolt against pressure on dealers to accept unwanted cars. Now Jackson is sharing strategic sales data to help the Big Three trim and optimize their inventories with customers in mind.
Detroit's chief execs are publicly bullish on the effort — but how willing will they ultimately be to let market intelligence drive manufacturing? For the sake of the auto industry, let's hope Motor City's ivory-tower manufacturers come down to Earth where their customers live — and where their dealers are trying to do business.
[Source: The Wall Street Journal (subscription required)]
