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Less than 35 new cars in stock... SHIFTING!!!

Alex Snyder

President Skroob
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May 1, 2006
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We've been running a monthly report at FRIKINtech, seeing how many of our dealers have less than 35 new cars in stock. We peaked in August, with nearly half our dealerships having 35 or fewer new cars in inventory.

We now have less than a quarter of our dealerships running new car inventories that low.

I'm :dance2: for the rise in inventory levels, but I am not deaf to the new challenges of resharpening the sales floor for a non-order-taking world. My buddy Tom Harsha says, "there are a lot of dealerships with dull knives trying to cook right now."
 
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We've been running a monthly report at FRIKINtech, seeing how many of our dealers have less than 35 new cars in stock. We peaked in August, with nearly half our dealerships having 35 or fewer new cars in inventory.

We now have less than a quarter of our dealerships running new car inventories that low.

I'm :dance2: for the rise in inventory levels, but I am not deaf to the new challenges of resharpening the sales floor for a non-order-taking world. My buddy Tom Harsha says, "there are a lot of dealerships with dull knives trying to cook right now."
Shame manufacturers don't follow the DeBeers philosophy, control the supply, and live off the demand.
 
col·lu·sion
  1. secret or illegal cooperation or conspiracy, especially in order to cheat or deceive others.
Producing an adequate volume of inventory (collusion?) vs over producing, and initiating another race to the bottom (illogical, but prevalent strategy) seem like they would be two sides of the same coin. Market Share driven strategies, versus healthy production volumes, seems to hurt more than it helps.
 
Chris,
There are many OEMs in the game. Let's say GM and Ford adopt 'healthy production volumes'. They go one price and keep inventory in distribution centers (see GM-EV/Tekion announcement this week). Here, the dealer becomes a minor player, they sell for flats, or OEM esales delivery fees.

Then, lets say CDJR sees its competitors are asleep and vulnerable. CDJR goes rogue, wants market share piles dealers high and hits the TV airwaves with sexy rebates. Nissan, Kia and Hyundai pivot and join in.

How many quarters of eroding share before GM and Ford investors demand a pivot?
 
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Chris,
There are many OEMs in the game. Let's say GM and Ford adopt 'healthy production volumes'. They go one price and keep inventory in distribution centers (see GM-EV/Tekion announcement this week). Here, the dealer becomes a minor player, they sell for flats, or OEM esales delivery fees.

Then, lets saly CDJR sees its competitors are asleep and vulnerable. CDJR goes rogue, wants market share piles dealers high and hits the TV airwaves with sexy rebates. Nissan, Kia and Hyundai pivot and join in.

How many quarters of eroding share before GM and Ford investors demand a pivot?
That's exactly what I already see happening. Stellanis is such a fan of losing money, they are already selling below invoice for the lots full of cars.

It just takes some intestinal fortitude to work out COVID era inventory controls, rather than flood lots & play the rebate game.
 
I'm :dance2: for the rise in inventory levels, but I am not deaf to the new challenges of resharpening the sales floor for a non-order-taking world. My buddy Tom Harsha says, "there are a lot of dealerships with dull knives trying to cook right now."

I have to agree with Mr. Harsha. Dealers have been enjoying the easy orders over the last 2 years, causing most sales people to lose their edge