Are You Ready for the
Changes in the Car Industry?
Churn is upon us. Do you feel it?
Car-makers, parts suppliers, dealers and shops are all being effected. How you perceive it and how you react to it will determine your success.
Churn is change; movement in industries that effects all of the players, and sometimes it alters the industry forever! This change can be initiated not only by an individual company decision or contribution, but by an outside catalyst that can effect industries worldwide. We are seeing churn today ripple from the banking industry to the auto industry. But let me explain it a little better. A good example might be the change that Sears and KMart went through in 2005. The retail marketplace was experiencing intense competition with ever-growing overhead while the consumer base and demand was stagnant with little or no growth. KMart, emerging from a bankruptcy filed in 2002 was competing unsuccessfully against WalMart, while Sears was being beaten down by big-box stores such as Home Depot and Lowes.
"Sears has had a very different problem from Kmart," Lacy said. "Our (Sears) service and products are as good as our competitor's but they're not where our customers are. This now gives us the opportunity to grow off-mall locations closer to the customer."
CNN/Money, November 17, 2004
The answer for both companies was to change their concept of each other dramatically. Both companies were viable. Both had valuable assets as well as proven demand in the industry. The best answer for both companies (and the consumer) was a merger, or buyout of Sears. By doing this, both companies were able to capitalize on each others strengths and unique roles in the marketplace while reducing duplicity and costs. This provided the customer with the best each had to offer without "reinventing the wheel".
"We don't want two separate cultures - but to blend it into one great culture." Kmart Chairman Edward Lampert said Thursday. "The idea is to make the stores more competitive while staying focused on the customer."
CNN/Money, November 17, 2004
Today we're experiencing that same kind of change in the auto industry. But this one is more personal and much more widespread. This one spreads from the shop owner to the doll-up bay, from the assembly line to the CEO, and from the car salesmen to the salvage yard personnel. This one is both local and worldwide, personal and public, emotional and financial. Today's churn in the automotive world is moving us in unknown directions.
We at AirbagSolutions welcome the changes we are living through today. We see opportunity in the future. When AirbagSolutions first came out in 2001, it was a new way of presenting and the data needed for airbag repair. The consumer could absorb the information faster and more accurately. This hasn't changed. We are still new and different from conventional estimating and information systems. And opportunities to grow and expand are still upon us. As restraint systems change and grow, we too have plans to continue new and exciting changes in our information presentation.
We envision an industry that is agile and flexible; responsive to customer's needs and resilient in times of challenge. The auto industry is going to need new, creative vehicles and tools to help us ride out this current wave of churn. Would you care to join us on this ride?
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A Different Way of Thinking
Watching the new car designs roll out and drive down the street is reminiscent of childhood days spotting a 'new car' on the road. New designs like these will propel us through this century with green technology, mass transit, fuel efficiency and hybrid technology forging the paths. It is this type of churn that may be new and different, but will take us to places we've never been. And if you're up for the ride, it'll be a great one, with promise of new opportunities for growth and profit. Here are some of the vehicles and products we are already seeing:
- Hybrid vehicles like the Prius, Scion and the SmartCar
- Electric prototype vehicles, like the P.U.M.A., the Zap and the Volt.
- New paint systems that transition us from HVLP and acrylic enamel to waterborn and low VOC systems.
- 3-D imaging, on-line and interactive information systems.
These new ideas don't all come from the classrooms of the 'younger generation'. Many of these ideas have been around since the last quarter of the twentieth century. It's only now that an eco-friendly government along with with the demanding economics of the recent gas crunch and recession that have made us eager to forge these paths. Gone are the days of the same-old, same-old, business as usual.
As we watch the government partner with the "Big 3 Automakers", mergers between giants like IBM & Sun Microsystems, and the acquisition of Merill Lynch by Bank of America, we know the future is in partnering. Choosing the right partner, creating a distinct advantage to the new blended company and bringing value to the customer will ensure your place in the future.
It's time for change; a change in the way we do business, a change in the way we serve our industry and a change in our attitude.
It's time for a different way of thinking.