The Role Of Dealerships In Automotive Industry

There is no question that the automotive industry has become one of the most important commercial sectors in the world today. However, many people fail to realize all the specific elements that make up this sector. From manufacturing to consumers, there are many important steps a vehicle must travel through. In fact, one of the most important, if often overlooked, components of the automotive industry are dealerships.

Dealerships serve as the essential middleman between an automobile manufacturer and the consumer. At a dealership, sales professionals are employed to explain vehicle options to potential buyers and ultimately facilitate the transfer of ownership. Both used and new automotives can be purchased at a dealership, and the thousands such facilities worldwide make up the major source for vehicle sales.

Automobile dealerships generally stock a wide range of vehicle options. They are also able to customize products with special orders to suit a consumers specific needs. In general, dealerships stock such vehicles as motorcycles, cars, light trucks, vans, and some water sport devices.

Perhaps one of the most vital roles dealerships play is in determining the actual selling price of a vehicle. Unlike other products, automobiles are fairly flexible in terms of the buyers power to influence how much he or she will pay. Negotiating a good deal is an essential component of the vehicle purchasing process at a dealership. Thus, the dealer must be aware of various market considerations to ensure a profit is made without losing consumers to competitors. Dealerships may also offer leasing options. This allows them to retain ownership of a vehicle and temporarily rent it out to a user for a period of several years. This provides consumers with a more affordable option for accessing an automobile. It also gives the industry access to people who otherwise would be unable to spend income on an automobile.

Once a consumer decides to purchase an automobile from a dealer, he or she must also use the dealership to facilitate financing. Most vehicle purchases are not made in cash. Rather, they are paid on a set schedule for a number of years. Instead of procuring a loan from a separate lending institution, most dealerships provide financing services through participating partners. This can be done simply at the dealership without much pressure placed upon the consumer to investigate several banks. Additionally, some dealerships help consumers procure automobile insurance and appropriate license plates. Thus, dealerships become one stop shops, for automobile purchases. This is not only a convenience for customers, but also helps increase automobile revenues.

In addition to facilitating sales, dealerships are a consumers primary resource for vehicle care. Most dealerships offer mechanical services to vehicle buyers for years following the initial transaction. This helps keep consumers active in the automotive economy even beyond the actual purchase of a vehicle. This provides considerable numbers of jobs in the automobile industry for those who understand vehicle mechanics. Subsequently, dealerships help expand the automotive sector in yet another way.

Ultimately, dealerships are an integral part of the automotive business. They play a number of important roles that are necessary to the survival of this industry. Without dealerships, it is unlikely automobiles would be as accessible to the general consumer public.

Automotive Business Research

Automotive Business Research includes thorough study of the automotive industry and a detailed survey on leading automotive companies, such as BMW, Ford, GM, Honda, Hyundai, Nissan, Porsche, PSA, Renault, Toyota, and Volkswagen. The Automotive Business Research is performed by automotive industry experts who have years of experience in the field. These professionals go through the automotive company profiles, demand forecast, reviews, books, magazines, newspapers, trade journals, white papers, industry portals and industry news.
Based on the Automotive Business Research various Automotive Market Research Reports are generated that contain accurate and authentic data and information on the automotive industry. Automotive Business Research Reports provide valuable information on Automobile Distribution, Automotive technology, Automotive Insurance, Automobile Parts, Tires and Aftermarket, Vehicle Manufacturing, Vehicle Rental, Leasing and Fleet Management. These research reports give the manufacturers, suppliers, and the buyers’ in-depth insight of the automotive industry.
Automotive Business Research Reports cover info about the latest happenings in the automotive industry, such as the new launches, invention and innovation in design of the vehicles, adding of new parts and accessories to the vehicles, etc. The reports are a comprehensive and detailed document of the marketing, managing, and manufacturing strategies of the automotive companies. Automotive Business Research Reports explain the demand and supply graphs of various automotive giants in detail and show their growth potential in the global market.
Automotive Business Research Reports also are a great help to the automotive companies as they help them to know about the competitive dynamics prevalent in automotive industry. The key trends and issues of the automotive industry are taken into consideration by the specialists while developing these reports. These reports are an immense help to the suppliers as they give the knowledge of global scope of the automotive companies. Automotive Business Research Reports clearly illustrates the major segments of the automotive industry and facts & figures give a clear picture of the automotive business forecast.

Automotive Rapid Prototyping Fail First Paradox

New product development and innovation is much more difficult and time consuming than most other business activities. Automotive rapid prototyping greatly enhances learning speed and reduces the risk of new automotive parts development.

Historically, the automotive industry has been using rapid prototyping as an important tool in the automotive parts design process. The extremely fast-paced automotive design cycles require an extremely fast prototyping system which can produce car parts fast and inexpensively.

The main objective of automotive prototyping is to learn quickly: how a new automotive product behaves in its natural working environment, before transferring the prototype to the production line. Many times, mistakes are learned only after a new automotive part is launched. This is the main explanation for poor automotive parts design, from product mismatch, poor engineering and function or finish, and overpriced production. In order to accelerate the learning curve, before these costly automotive prototyping mistakes are made, one must accelerate and facilitate feedback loops from tests in the lab and market trials.

Automotive Manufacturing Technologies

Working with an assortment of rapid prototyping equipment, automotive prototyping engineers utilize the most advanced 3D printers, in their quest for perfect form, function and utility. Working in advanced manufacturing centers, the automotive engineers use the technology to verify what they are doing, and, equally important, to save tremendous amounts of time, and money.

Automotive Rapid Prototyping Compresses Development Time

The advantages of 3D rapid prototyping model creation versus viewing a cad/cam model on a computer screen is palpable. Automotive parts engineers get together discuss the pros and cons of a rapidly produced automotive parts model and discuss the pros and cons of the design, as they pass it around, twisting and viewing the prototype, and decide if that is what they had in mind. This way, problems get solved up front, before going to the assembly line! Once determined that the automotive prototype design is a go, the model can then be sent to a die maker.

Automotive Prototyping and the Die Maker Process

The die maker cannot use model to make the die, but because they have it in their hand and can look at it and feel it, they can determine where the parting lines will be and exactly how much steel they will need to produce it. The timing of the die process is greatly compressed.

Examples of Automotive Rapid Prototyping Parts

· Engine castings and parts

· Car Engine parts

· Auto Mechanical parts

· Car Dashboards

· Car Handles and Knobs

· Auto Body Components

· Car Trim parts

Fail first Paradox in Automotive Rapid Prototyping

The automotive rapid prototyping paradox is to fail earlier rather than later. By failing earlier, the design engineers surprisingly succeed in accelerating the project; this greatly reduces development cost risk. By considering all automotive prototype failures as learning experiments, the engineer has much less stress, knowing that they are practicing the old adage, that success comes from ninety-nine percent failure and introspection.

Mobile Car Washing for Large Franchised Rent-a-Car Corporations

If you are considering expanding your mobile car wash business clientele and customer base this year perhaps you should look into the washing of Rent-A-Car agencies. What you may not realize is that some Rent-A-Car agencies are huge corporations where each outlet, store or location is owned by the company. But there are large franchised Rent-A-Car companies where each location is independently owned and operated and where the actual Corporation may only own larger airport locations.

If you are considering expanding your clientele to include large franchised Rent-A-Car companies you may want to learn a little bit more about the history behind them before you go to make the sales call. Now then, when doing business with Dollar and Thrifty Rent-A-Car you must understand that they operate differently than other rental car agencies. You see, Dollar and Thrifty have the same parent company. They are head quartered in Tulsa, OK.

Dollar is an interesting company with 441 locations in 26 countries. They have about 100,000 cars in the US in their rental fleet. They were started in Los Angeles, CA in 1964. They were bought by Pentastar Transportation Group in 1990. Along with Thrifty Rent-A-Car, General Rent-A-Car and Snappy Rent-A-Car. Snappy was sold in 1994. They closed General Rent-A-Car in 1993. General Rent-A-Car was pretty much a duplication of the others and it had non-Chrysler cars in it. Once they ran out the company was closed.

Pentastar Transportation was a subsidiary of Chrysler to sell them cars to compete with Hertz owned by Ford and GM’s Rent-A-Car acquisitions of the 80s. Chrysler divested themselves of the company, which was then called Dollar Thrifty Automotive Group. Thrifty and Dollar are franchisors that license out their brand names for independent businesses. Dollar has over 260 suburban locations and is also in most all major airports. Dollar predominately rents only DaimlerChrysler cars, mini vans and pick-ups. Their President, Gary Paxton at one time was the first franchisee outside the state of CA. He now ran that entire company of the Dollar Thrifty Automotive Group. Gary also was formerly the president of the ACRA – American Car Rental Association.

Thrifty Rent-A-Car has 1300 locations all franchised in 58 countries. They have 60 dealership agreements to sell their cars after run out of miles. They are planning to get another 300 car sales lots by 2005. Thrifty and Dollar together pack a wallop. Thrifty Rent-A-Car has 66% of its business in airport markets and 34 % in local suburban markets. Thrifty car sales was only started in 1999, but already has 60 locations and is growing fast. Thrifty has also purchased airport parking lots across the US owning 40 of them with some 14000 spaces. In many of these lots they have a car wash to wash their own cars but also for customers parking.

The Automotive Employment Market Is Still an Open Playing Field

In the automotive employment market there are still very attractive job opportunities available all over the world. So if you are in the automotive employment market and want to make a change there are still a lot of opportunities all over the world.

In this modern world there do exist a massive shortage highly skilled automotive technicians all over the world. So if you are a highly skilled auto technician you can choose where you want to work in the world.

By just applying on one of the many automotive recruitment companies web pages, and they will search a job opportunity for you any place in the world. The fact is that a lot of emerging automotive markets have opened up in reasoned years, due to the power shift in the automotive industry.

This automotive employment market is going to become even bigger in the future as all new type of cars is going to hit the market. Like all the “EV” cars that are still in the prototype phase. All these cars will have new technology implemented into them, so new personnel must be trained to work on them in the future.

This will bring a paradigm shift into this automotive employment market, even the training methods and the skill sets that must be trained have to change in the very near future.

This will cause the manufacturers to start running extensive training and develop programs, to have highly skilled technicians to assist them to establish their brand. There will be coming new brands and brand name into the playing field and these brands will need to still build their names in the market place.

To build a brand name you need a powerful after sales service you can assist your customers with. This alone will create a new automotive employment market to the auto industry; just imagine an electronic or chemical engineer working at your local car dealership.

It may sound farfetched but it is possible as the cars in the future will be driven with power plants like fuel cells, hydrogen emission and electric motors. All of this is going to come to the market place in this modern world sooner than most of us do realize. So the predictions are that a big portion of the existing automotive workforce will leave.

They will leave this workforce as they are from the old school with old school principles that will become extinct with this new technology. The human tendencies are that you will stay ignorant if you become a member of the old school club. This only happens as the older people were conditioned that they can only learn something up to a certain age. All of us know this is not true but the system wants them to leave as it is harder to change and old horse to get rid of his or her habits

The system was created to develop a group of slaves that would be easier to condition, into what this slave system needs and not what the workers needs. That is one of the reasons why the older leading hands in the automotive employment market gets removed or retrenched. The general modern business conceptions are that older people are resisters to modern business, as they don’t want to change.

If all this highly skilled people are removed in the future the whole automotive industry will suffer a massive skills and brain lost that could have passed on to the younger people. Findings are that most of this older people in the automotive industry don’t want to share their knowledge and skills anymore, because they don’t see themselves as resistors for future development in the automotive industry.

So the automotive employment market will suffer great losses in the near future, due to this phenomenon.

Rocco van Rooyen is an Author on Automotive Solutions. As an Entrepreneur and Author on the subject, he is at the forefront to provide solutions to all automotive related problems.