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I was reading in a forum, and I completely forget where I read it, but me thinks its a wonderful idea.
Could it save the Big 3? Maybe. Can it cut down 2009 production costs, by only providing vehicles that are actually paid for.. instead of having cars left over at the end of the year? Most Likely! Will Americans buy into it? Probably not.
Here's the idea. I believe that BMW and Porsche do it this way. I know Lambo and Bugatti do it (I've been in their dealerships and have gone through a sample buy).
What if we walked into a dealership and saw a kiosk. What if in that kiosk is the model of car we are looking for. Then in that kiosk, we choose what WE want, not 1 of 4 packages, we can mix and match and make it truly our car. Order it, offer a down payment (and so the dealer knows we aren't ordering a car, and not coming back to get it), and within a week we get to drive this car home? Of course this would only be for BRAND NEW models. Like now, the 2009 models.
Now this would work for Americans I believe
A. Every dealership of course holds a fully-loaded model of each car so the consumer can test drive.
B. The car would be shipped quickly and maybe add-ons done on the dealer lot (means dealers get more money) so that the factory doesn't have to do everything (like a/c, rims, stuff like that).
C. Microsoft doesn't build the kiosk. (hehe)
Why do I think this wouldn't work? Dealerships rely on tactics to get someone in a car. That newly vacummed smell (which they trick you into thinking its a new car smell lol). And Americans have a want it now policy.
Here's the good news. Of course there will be trade-ins, so there will always be cars on the lot. Except for the brand new model. So dealerships wouldn't have to worry about handing their job over to a robot.
CarMax has show success for "shipping" customers pay money to have a car that they like better in another state, to have it shipped to CarMax just to test drive and hopefully take home.
What would you think if the big 3 did something like this. I personally think that they would waste less resources and also it would help them with what people are REALLY looking for. Instead of that list of packages that even I dread to go through when figuring which is the best model.
What would you think if the big 3 did something like this. I personally think that they would waste less resources and also it would help them with what people are REALLY looking for. Instead of that list of packages that even I dread to go through when figuring which is the best model.
What do you think?
It would create a lot of uncertainty at the manufacturing level.
Currently, an auto plant has a production schedule that is planned out months in advance so parts arrive “just on time” from suppliers.
In order to meet this kind of On demand system they would need to Stock parts so that they could make anything anytime.
This also keeps a consistent staff levels at both the Auto plant and there suppliers.
Instead of keeping stocking levels at the plants they have decided to Produce like crazy and just close the plants with a years supply of SUV’s and Trucks sitting on the lots.
I don't know. Sounds like a good idea, one that I've thought of a long time ago but it would likely put guys like me out of business so it's not something that I would like to see. I pride myself on the way I treat customers and don't want a Kiosk taking my job, or my customers away from me. Can a computer make a person fall in love with a car? Can it tell real stories of how a car drives and how much fun they are to drive? Yes and no, but one thing is certain...people like the interaction between people.
I don't want to see that happen and I don't think that will save the "Big 3". Smarter production, better products and less incentives on new cars (so that the used car market values hold) is the answer.
When there's any economic uncertainty (gas prices increase, DOW drops) the fluctuation in manufacturing could be severe. Imagine having 3 shifts 100% one week and 1.5 shifts of work the next. How would one manage that without an appropriate backlog?
A backlog means longer delivery times for the vehicles but a more stable and predictable manufacturing environment. If you have some manufacturers (e.g. Toyota, BMW) with new vehicles on the lot and a 3 month wait (due to the needed backlog) for a GM vehicle, would GM get the purchase more often than not?
It would create a lot of uncertainty at the manufacturing level.
Currently, an auto plant has a production schedule that is planned out months in advance so parts arrive “just on time” from suppliers.
In order to meet this kind of On demand system they would need to Stock parts so that they could make anything anytime.
This also keeps a consistent staff levels at both the Auto plant and there suppliers.
Instead of keeping stocking levels at the plants they have decided to Produce like crazy and just close the plants with a years supply of SUV’s and Trucks sitting on the lots.
Instead of keeping stocking levels at the plants they have decided to Produce like crazy and just close the plants with a years supply of SUV’s and Trucks sitting on the lots."
This is exactly why we could use something like this.. because they make all these cars, and then they sit collecting dust when the new model rolls around.
I do understand that manufacturers would be uncertain about how much they would need to stock or what-not. It may be a good test, too just run an idea like this on trucks and suv's, since those aren't in such high-demand.
This would never replace a person to person contact. I'm sure that no-one (except maybe hermit-like-person) wouldn't want a dealer standing with them while they order their new car. Its like ordering a new computer, there's lots of questions that people ask first before making such a large decision.
Here's another question - why would the kiosk have to be at a dealer? Why even use a kiosk - order over the Internet directly from the manufacturer.
The answer is the auto dealer lobby in each state has convinced legislators (maybe through $$$ contributions, who knows?) to pass laws requiring cars to be sold through dealers as opposed to directly through manufacturers. smart is close - we order and configure the cars over the net, but still have to complete the sale at a dealer. Service - the manufacturer could set up company owned service centers, ensuring any profits come back to the car's maker and not a local dealer.
More efficient, more control over service, single point of contact for the customers.
Here's another question - why would the kiosk have to be at a dealer? Why even use a kiosk - order over the Internet directly from the manufacturer.
Without the Dealer/ Sales staff who would be asking the customer
"Show me the commitment!!"
and who are you going to haggle over the price with? Isn't that 1/2 the fun of car buying, NOT
When there's any economic uncertainty (gas prices increase, DOW drops) the fluctuation in manufacturing could be severe. Imagine having 3 shifts 100% one week and 1.5 shifts of work the next. How would one manage that without an appropriate backlog?
A backlog means longer delivery times for the vehicles but a more stable and predictable manufacturing environment. If you have some manufacturers (e.g. Toyota, BMW) with new vehicles on the lot and a 3 month wait (due to the needed backlog) for a GM vehicle, would GM get the purchase more often than not?
Does GM get the purchase more often than not now? No. That's why they've ran into this problem. Maybe if they didn't build so many cars, so fast, cars wouldn't be faltering to the point where even a door handle gets a recall.
Also it could make the consumer feel more exclusive. Just imagine them going in and designing their car from top to bottom, as do Lambo owners. There could be a sense of pride in their vehicle and make them want to go with GM more than ever.
Plus GM will look less retarded when they sit across the parking lot from a Honda Dealership. There won't be a ton of 2008's just sitting there collecting dust, while Honda Accords and Civics across the street are rolling out with the snap of your finger.
Without the Dealer/ Sales staff who would be asking the customer
"Show me the commitment!!"
and who are you going to haggle over the price with? Isn't that 1/2 the fun of car buying, NOT
You mean like we got to haggle over the price of our smarts?
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