Future Visions of the Auto Industry & Automotive Advertising Based On What Was and What Will Be
Each auto industry social network has its own rules and protocols that allow them to be unique in the automotive industry and interdependent automotive advertising industry. Although they may have different content, contributors and formats, their common goal is to educate their members through sharing best practices and insights. It is important to frame my vision for the future of retail automotive industry and advertising in light of changing geo-political, economic and political environment. The foundation for today can be built upon a broad view of our global economy and politics. Next, the Internet and other related technologies can be used to aid in defining tomorrow as I see it.
A competitive business model must also be able to adapt to tomorrow’s needs. It is evident that today is the most important. All brands are seeing a drop in sales volume, profit margins, and inventory. Despite the temporary increase in unemployment and the estimated million-plus census workers, as well as other government employees (such as the 16000 IRS agents who are responsible for policing our new health care system), consumer confidence is declining. Both government intervention and natural business cycles limit wholesale and retail credit lines. Our economy is directly tied to the world economy on both monetary as well as political lines. The United States, as well as European trading partners, are facing excessive debt and unstable monetary systems. The fact that we borrowed money to pay off our growing debt, and no one else would lend it to ourselves, has facilitated the inflation of our dollar and a similar correction to our monetary system. The anticipated correction can be seen in the maturing situation in Greece, Portugal and Spain, as well as other European countries tied to the Euro or the International Monetary Fund (IMF). There is no way to know what tomorrow will bring. It is impossible to predict the future, so it is important to review today’s key issues. These changes in –what was — vs –what is — will most likely determine — what will become and the actions that automotive dealers and advertising agencies must take in order to be profitable in new waters.
With the hope that America would transform, the current administration was elected on a platform for hope and change. This assumption was made in light of the fact that America’s established belief in a free market and our constitution. Most people understood the redistribution to be a reflection of America’s giving and sharing nature. The majority of those who voted for it had no idea that the transformation would take place in ways that were not possible. The inherited financial burdens that our banking system inherited were sufficient to warrant change. This was evident by the contributions of Fannie Mac and Freddie Mac in our mortgage crisis, and the preferential treatment enjoyed by unions, Goldman Sachs and AIG, as well as other Wall Street entities supported by the progressive political movement within both parties.
As a disclaimer, I acknowledge that around 30% of our population believes that the collective — We The People — as well as the associated movement for workers of the world — is better than the constitution’s framers who defined it as the individual — “We The People” — and the rights and responsibilities of each individual as a member of the total. As the President clearly stated, elections can have serious consequences. I will try to limit my future visions and comments to those actions that directly impact the auto industry or the agencies that serve it.
Even though it is being challenged in court, the market is already impacted by the unions’ empowerment in the formation Government Motors. Contrary to law, the mandated consolidation of retail distribution channels for General Motors Chrysler and Chrysler protected the interests of the unions over guaranteed bond holders or independent dealers. Both investors and corporations had to abandon the expectation of relying on individual rights and binding contracts to be able to serve the collective interests of our changing society. Recent changes to language in Federal powers have had an impact on previously accepted State rights and individual rights. These must be taken into account when projecting the future for the auto industry and automotive advertising, if not the country.