How does it feel to be so freakin awesome? And would you like to come to Pittsburgh and have a beer with Pinchvalve?
How does it feel to be so freakin awesome? And would you like to come to Pittsburgh and have a beer with Pinchvalve?
Ive always wanted to know why car manufacturers never embraced a factory direct sales model, where they sell their own wares? It seems the dealership model adds complexity and time to the process of making something, and delivering it to a customer.
If 2 competing car mfrs make a sedan with similar power numbers (a la 90s Taurus/Lumina), and say both factories are into each car for $10k cost, give or take. If the factory sells it to a dealer for $2k over cost, and the dealer marks it up another 2, now, theyre selling them for $14k. Cut out the dealership, open a factory store, offer the car for $2k less than your competitor, and win.
Im sure theres plenty of industry-businessey type jargon that would ensue, but its a question Ive wanted to ask an industry pro for a while now, and have never gotten a chance.
4cylndrfury wrote: Ive always wanted to know why car manufacturers never embraced a factory direct sales model, where they sell their own wares? It seems the dealership model adds complexity and time to the process of making something, and delivering it to a customer. If 2 competing car mfrs make a sedan with similar power numbers (a la 90s Taurus/Lumina), and say both factories are into each car for $10k cost, give or take. If the factory sells it to a dealer for $2k over cost, and the dealer marks it up another 2, now, theyre selling them for $14k. Cut out the dealership, open a factory store, offer the car for $2k less than your competitor, and win. Im sure theres plenty of industry-businessey type jargon that would ensue, but its a question Ive wanted to ask an industry pro for a while now, and have never gotten a chance.
Ahh, laws. There are actual laws against selling a new car NOT at a dealer. Not sure exactly how they are worded, or how they would be changed. Not enough time to research, but lots of silly laws is the answer to this.
tuna55 wrote:4cylndrfury wrote: Ive always wanted to know why car manufacturers never embraced a factory direct sales model, where they sell their own wares? It seems the dealership model adds complexity and time to the process of making something, and delivering it to a customer. If 2 competing car mfrs make a sedan with similar power numbers (a la 90s Taurus/Lumina), and say both factories are into each car for $10k cost, give or take. If the factory sells it to a dealer for $2k over cost, and the dealer marks it up another 2, now, theyre selling them for $14k. Cut out the dealership, open a factory store, offer the car for $2k less than your competitor, and win. Im sure theres plenty of industry-businessey type jargon that would ensue, but its a question Ive wanted to ask an industry pro for a while now, and have never gotten a chance.Ahh, laws. There are actual laws against selling a new car NOT at a dealer. Not sure exactly how they are worded, or how they would be changed. Not enough time to research, but lots of silly laws is the answer to this.
would be my guess that some mfr actually wanted to do this, but the ocean of dealers lobbied and got a bill rammed thru...
there are factory owned dealerships that are run by people. when a dealership gets in trouble the factory will come in and take it over so they dont loose the point in the area. they do try to get someone to take over the franchise but sometimes there is no takers.
with the way people buy cars today i dont think there would be that big of difference the factory would still have the overhead of the dealership and advertising. now 30 to 40 years ago when 90% of people orderd cars they wanted it might of been a different story. back then when some said they bought a new car the next question was "when do you get it".
today people go out and but right off lot very few cars are ordered
id ask him if they could bring back ultra-stripper models, with manual windows, locks, seats, etc. make them simple and indestructable, lightweight, and CHEAP. like my 89 sierra. rubber floor mats, etc. rides great, good gas milage, does the job. my neon is the same way. so is my duster. so were my dakotas.
i cant find stripper models made in the the last few years. what they consider stripper still has alloy wheels, power everything, with all the bells and whistles my 82 caddy had as options coming standard.
id also ask if they could work withing the weight category for upcoming CAFE requirements, thereby making things last longer, handle better, accelerate better, and get better gas milage.
also, lastly, what GM can do for reliability/perception of value/durability/resale value for their fleets. there is NO reason why the Japanese shoudl still eb beating domestics on this front at all. we are capable of doing it, at a competitive price, but we dont seem to put the effort into it.
michael
In reply to Dusterbd13:
I'll give you what I know, COST. If they can build just one door that fits all the model trims, you have saved all the engineering related costs, machining and manufacturing costs. I can relate one story from my instructor from the dealership days. I believe it was in conjunction with the launch of a new Chrysler product and he gave some tour or something about it. Well, a few guys where hanging around and he got talking to them. Come to find out the one guy spent nearly a YEAR on JUST the throttle position sensor on that car and that was the ONLY thing he did. He makes how much a year? Now, think about changing from those power windows back to manual ones....
What I don't like is the shift to having to buy packages to get just the one item I really want when the rest of the package makes no sense. Well, no sense outside of the accountants that seem to build these packages of unpopular items, mostly bloatware type of items for the computer geeks, with the wanted items. I don't know why if I want the locker I need to upgrade to the next level radio, color changing gauges, and 22's.
As far as the perception, kill all the journalists. Except for the pretty middle of the road GRM staff. 
Appleseed wrote: Ask him what he plans to do in reaction to the FRS/BRZ.
I doubt he gives a rats arse.......either that or he'll ask who taught you the alphabet
When Bob was with Interstate battery I flew him often in a Lear 25D. He is a great guy to talk to. On outbound trips he would be studying up for his meeting. On the return he would sit on the jump seat and talk with the pilots. Ask about the time he helped a lost pilot find his way. Or ask about the outcome of his gear up landing at Willow Run, the EPA went ape over something leaking on the runway. And ask him for a ride in his L-39.
N Sperlo wrote: In reply to Keith Tanner: You've been watching too much Tosh.0
Umm, I was quoting Fight Club. Isn't Tosh.0 basically the new version of Funniest Home Videos?
Stripper models went away because people don't buy them. Although I do think you should keep using the word "stripper" in the conversation and see what happens.
I'd be interested in what he has to say about the apparent schizophrenia in the market. Skyrocketing horsepower numbers - but also a bigger emphasis on fuel economy. Can one help the other? Is the middle ground liable to be affected? We've seen the average power and speed of a mom-and-pop-mobile spike dramatically in the past decade or so, but economy has not taken a similar spike. Is that due to market pressures?
Bob made quite a career for himself as a genuine gear head. Who does he see moving up the ranks these days with the same passion for the product?
Any insight on small displacement diesel for GM
Type Q wrote: Bob made quite a career for himself as a genuine gear head. Who does he see moving up the ranks these days with the same passion for the product?
Ralph Gilles!
Oooh yes - "where is the half-ton diesel pickup?"
First of all, please thank him sincerely for the CTS-V.
Then it might be fun to find out what his tailor is driving these days: in one of his books, he describes how his tailor showed up one day driving a brand new Cadillac. (This is from memory, so it might not be 100%.)
"Am I paying too much for my suits?"
"No, Bob, it's just that I got a really good deal. I mean, I went into the dealership looking for a SAAB, but the salesman convinced me to take a really good offer on a Cadillac instead."
Bob thought to himself, "This is messed up: first of all, why not sell somebody the car he wants? Secondly, what kind of brand management are we running if you can get into a Caddy for no money down and low, low monthly payments?"
Keith Tanner wrote:Type Q wrote: Bob made quite a career for himself as a genuine gear head. Who does he see moving up the ranks these days with the same passion for the product?Ralph Gilles! Oooh yes - "where is the half-ton diesel pickup?"
I had thought of Ralph Giles. I am curious who else he would mention. Gearheads do tend to find each other.
I'm probably not supposed to post this here, but I've had half an Ambien, a grasshopper and a root beer popsicle, so I'm not exactly in control of my faculties at the moment. So maybe this'll be gone tomorrow, but here's you chance to see the Bob Lutz interview before anyone else who isn't you sees it. Maybe once it gets taken down, you can whisper in hushed tones and wait for it to reappear at a more opportune place: Lutz Interview
And if an 80 year old dude smoking a cigar isn't cute enough for you, here's a baby squirrel we met at our bird hospital this weekend: AWWWWWWWWWWWW
jg
A good Scotch selection perhaps and a legal, smokeable Cigar?
Way cool interview!
Let's hope it's still up when I get home in a half hour...
Great interview!!
... what a great car guy
Most memorable words I came away with... 'infusing the passion'.
Loved the Volt discussion also, especially future battery development. Thanks JG for including that.
I'm impressed 
I'm not surprised about him mentioning the aztek....jay leno has also said it could be a collectable....jay compared it to the edsel.
It is interesting how much he dislikes modifications to cars, especially since modifications and the aftermarket are such a huge part of our car culture in the USA....
Excellent! Really enjoyed that!
In before the bubble...
JoeyM wrote: It is interesting how much he dislikes modifications to cars, especially since modifications and the aftermarket are such a huge part of our car culture in the USA....
Except he really didn't say that. He greatly disliked the extreme modifications, such as your donks, WTF really is it body kits, etc.. He liked modifications as long as the mods are tasteful and "in proportion". That is what I got out of what he said.
Ranger50 wrote:JoeyM wrote: It is interesting how much he dislikes modifications to cars, especially since modifications and the aftermarket are such a huge part of our car culture in the USA....Except he really didn't say that. He greatly disliked the extreme modifications, such as your donks, WTF really is it body kits, etc.. He liked modifications as long as the mods are tasteful and "in proportion". That is what I got out of what he said.
I like that better than what I was thinking. The vibe I picked up was, "Car designers made it the way it is supposed to be. Don't berkely with it."
You'll need to log in to post.
