Part 1.Eden or New Jerusalem: Politicians, the motor industry and the climate emergency

This entry is part 1 of 2 in the series Climate Emergency

Politicians, climate scientists and activists, certain that they have special knowledge about the world that demands urgent, focused attention, turn to increasingly loud, scary, and simplistic solutions to the task of transitioning to a carbon-neutral economy to avoid further global warming. While they seek to re-engineer society to force broad changes in consumption and production patterns in the name of such meaningless slogans as “climate emergency” or”net-zero by 2025″, qualified engineers and scientists are solving the tough questions that will allow the world to actually make the changes required. Behind the noise, there is a clash of philosophies. On the one hand, there are those who wish to return to an-earlier, simpler life. They would like to convince the world to embrace a journey to a new version of the ‘Garden of Eden’. The scientists, engineers and managers have a very different destination in mind – a New Jerusalem, where sophisticated technical solutions master the global warming challenge. This first post draws distinctions between the two views. The second looks at the progress that the technologists have made and asks whether the politicians and activists have even taken a look.

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Car owning vs. car sharing: which will make a lasting impact on car dealer profitability?

Since the Millennium consultancies have been reporting that young, urbanites in the Triad markets (USA, China and the EU) have a growing appetite for car sharing solutions, such as ride hailing and car sharing. Those in the developing markets of China, India and south-east Asia are also less emotionally attached to car ownership. Adding into the mix the trend towards urbanization and concerns for global warming, it’s no surprise that some predict that these factors will lead to falling car sales and a squeeze on margins for car dealers. Zipcar claim that each car added to their fleet removes six cars from private ownership. What if the predictions are right? What if they’re wrong? Read on and find out.

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Emissions KPI’s: Which ones really count?

Like most business people, we’re familiar with key performance ratios such as production, sales and profit targets. But, when we’re told that our favourite calculations might be missing an important factor, we ask, “How can that be?” That’s where automotive production and distribution managers find themselves today. They measured production, sales and profits accurately, but not correctly. They missed one crucial item. They measured vehicle tailpipe emissions and watched them fall year on year. But, the calculation excluded the social costs of the vehicle’s contribution to air pollution and climate change, which have been evident for the last 50 years. Now, under the principle of ‘the polluter should pay”, vehicle manufacturers and distributors should expect some significant new policies,regulations and costs as governments try to clean up the environmental mess and avoid further damage. This post looks at what those policies and costs might be in the coming years for both vehicle makers and their distributors.

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Who gives a dime? The impact of Electric Vehicles on Jobs in Auto makers and retailers

As politicians and activists, auto-makers and early-adopters, embrace electric vehicles as the key transport development of the early 21st century, few are concerned about the impact on jobs. Automotive is one of the world’s largest industries with 8MN-10MN employed directly and another 20MN-25MN in support roles. The outlook for these stable, high quality jobs is at best uncertain. Up to 1MN jobs may be lost in manufacturing and another 13MN in support jobs. Does anyone give a dime?!

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Thinking the Unthinkable: Net Zero Emissions

Welcome the attention given to global warming or not, it ranks high on the world’s political agenda. But, political aspirations and policies are all predicated on the assumption that electric vehicles can be produced and deployed fast enough and in sufficient numbers to make a difference to global emissions. For the more radical activist’s timetable of ‘net zero’ emissions by 2025, aspirations are likely to be dashed. However, the direction of travel is clear and will have significant consequences for the automotive industry, its supply chain and consumers. This post considers dealer profitability.

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Brexit: the impact on car retailers

Whatever your political preferences there is no escape from the impacts of ‘Brexit’ if you’re in motor retail. Retailers and repairers are the final link in global supply chains that are all likely to see disruption. These two blog posts highlights the likely effects on motor retailers and authorized repairers of three possible Brexit negotiation outcomes over two time horizons: immediate and medium and long term effects. This first post focuses on the immediate effects.

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Digital and Social Media for Car Dealers Part 1: The Digital Landscape

This entry is part 1 of 4 in the series Digital for Dealers

This article is the first in a series on the use of digital and social media for automotive retail managers in an increasingly dynamic world. This post is freely available. The rest in the series are Pay To View   Aren’t all motor dealers being disrupted by digital and social media? They’re not alone. Take newspapers. According to the 2016 Carat Ad Spend Report, more than 2.7 Billion people read newspapers last year – up on the year before – but fewer companies spend their advertising budgets in them and, those that do, spend less of the available money, which is the trend since 2005. Apart from a few regions such as south-east Asia and parts of the US the result is declining newsprint profitability, job cuts and a frantic search by newspapers to generate income online. Taking the UK as an example, in 2016 the national advertising spend was around £20 Billion with over half going to digital media. Print media took just over £1 Billion, and is declining by 10% (‘quality’ press) – 15% (tabloids) each year. The continuing closure of local newspapers makes year-on-year comparison impossible, but the trend is similar to the nationals. Advertisers aren’t spending because readers are declining and fewer readers means lower response to advertising. And that includes dealer ads. For car sales managers, both new and used, accustomed to press advertising and classified listings generating a reliable stream of enquiries, the problems faced by newspapers has become theirs. They have to learn how to invest and manage in the fast-changing digital media space but, few are convinced that it works for independent or small group franchisees. “Facebook doesn’t sell cars”. Mostly true. However, digital and social media is about selling your business values, awareness of its location and generating positive attitudes and […]

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Digital and Social Media for Car Dealers Part 2: Digital Strategy

This entry is part 2 of 4 in the series Digital for Dealers

The digital space is almost limitless but for motor dealers wanting to make an impact there are two key channels – each with many options: Digital – the Internet using a website; and, Social Media – a wide range of platforms for communicating and interacting with an audience of your choice. Making the decision about where to invest , why and how can be complex. This post simplifies it for a motor dealer or distributor in any market.

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