Future Visions of the Auto Industry and Automotive Advertising Based on What Was and What Is

Auto industry social networks all have different rules and protocols to create their unique identities in the auto industry and the inter-dependent automotive advertising industry. While there are differences in format, content and google serp api contributors they share the common goal to educate their community members by sharing best practices and insights with the concept that a rising tide floats all boats. To provide clarity and share my vision of the future of the retail auto industry and automotive advertising it must be framed it in the context of our changing geo-political and economic environment. Once the foundation of today is built on the broad picture of our world economy and politic, then the role of the Internet and related technologies can be applied to the one constant that we can all depend on — human nature — to help define tomorrow as I see it.

Any competitive business model must be built to accommodate tomorrow as well as today. Today is obvious. Sales volume, profit margins and inventory are down across all brands. Consumer confidence is falling as unemployment is rising even in the face of the expected temporary increase when the million plus census workers and various government employees — such as the sixteen thousand IRS agents to police our new health care system — are artificially added to the equation. Wholesale and retail credit lines are restricted by both natural business cycles and government intervention. Our economy is directly linked to the world economy along both monetary and political lines and the United States as well as our European trading partners are faced with excessive debt and unstable monetary systems. Our monetization of our debt — basically the fact that we loaned ourselves the money we needed to fund our growing debt by printing more money, since no one else would lend it to us — has insured the inevitable inflation of our dollar or some similar correction to our monetary system. This anticipated correction is already supported when observing the situation maturing in Greece, Portugal, Spain and other European Countries tied to the Euro and the International Monetary Fund, (IMF). No one has a crystal ball, so the only way to plan for tomorrow is to recap today’s critical issues that didn’t exist yesterday. It is these changes in — what was — vs. — what is — that will likely define — what will be and the actions that auto dealers and automotive advertising agencies must take to remain profitable and competitive in unchartered waters.

The current administration was voted in on a platform of hope and change with the expectation that the promised transformation of America would take place within the confines of our constitution and in consideration of our established belief in a free marketplace. The redistribution of wealth was understood by most to reflect the giving nature of the American people as a moral and sharing society. Unfortunately, the transformation began in ways that could not have been imagined by the majority that voted for it with an agenda that is only now coming to light. The inherited financial burdens on our banking system that justified the need for change were matured across Republican and Democratic party lines — as evidenced by the contributions of Fannie May and Freddie Mac to our mortgage crisis and the preferred treatment enjoyed by the unions, Goldman Sachs, AIG and other entities on Wall Street supported by the progressive political movement that is represented within both parties.

By way of disclaimer, I recognize that approximately 30% of our population believes in the collective — We the people — and the associated movement for the — workers of the world to unite — vs. the framers of the constitution that defined it as the individual — We The People — and the rights of the individual as a contributing member of the whole. That said, as the President has clearly stated, elections have consequences and I will attempt to limit my comments and future visions to only those actions that have or will have a direct impact on the auto industry and the automotive advertising agencies that are engaged to serve it.

The empowerment of the unions in the formation of Government Motors is already impacting the marketplace even while it is being challenged in the courts. The mandated consolidation of the retail distribution channels for General Motors and Chrysler preserved the interest of the unions over the guaranteed bond holders and independent dealers contrary to established rules of law. This precedence diluted expectations of both investors and corporations to rely on binding contracts and individual rights in favor of the collective we that our evolving society is expected to serve. Recent adjustments to the language in a variety of Federal powers have impacted previously accepted State and individual rights which must also be considered when projecting the future of the auto industry and automotive advertising — if not our country as a whole.

For example, the change in the definition of eminent domain from taking personal property — for public use — to the new definition — for public good — has already resulted in private and commercial property being taken at distressed market values and given to other individuals that promised a higher tax base to the governing authority based on their position that the additional tax revenue was for the public good. Similarly, the ownership of water rights in the United States has been changed from the previous Federal ownership of all — navigable waterways — to include — all waterways — such as ponds, surface streams and basically any water that the government determines can be used for the public good. The potential impact on the farming industry and our food supplies evidence a shift in government control of society that must be considered when projecting the future of any industry — including our beloved auto industry.

Given the government takeover of the banking industry, General Motors, Chrysler, Health Care and Student Loans that are now part of our history, the point becomes self evident. These single word changes and government takeover of entire industries for the public good dilute individual and corporate rights in favor of the rights of the collective. This is a basic step in the process of redistributing the wealth in accordance with Socialistic and Marxist principles. I am not judging the validity of any of these differing political philosophies since it would risk my ability to remain unbiased in my evaluation of present and pending opportunities in the auto industry. My intent is not to defend our previous constitutional republic over the shift to a Socialistic or Marxist democratic society, but rather to apply them when preparing a business model moving forward for my auto dealer / vendor clients and affiliated automotive advertising agencies.

For example, the recess appointment of Craig Becker as member of the five seat body of the National Labor Relations Board, (NLRB), suggests the intent of the administration to resume its push for the Card Check Regulation that is designed to facilitate unionizing all businesses in the United States. Recess appointments are an accepted practice used by previous administrations to bypass the Congress and the Senate to fill cabinet positions with individuals that are often blocked by partisan agendas. However, Mr. Becker was challenged in a bi-partisan manner based on his role as a senior attorney for the Unions including the CIO and the Service Employees International Union, (S.E.I.U), just before his appointment. The NLRB decides cases involving workers’ rights which directly impacts larger issues between Democrats and their labor allies vs. stated Republican party interests and those of the corporate world When coupled with the intent of Card Check regulation to eliminate the right of workers to a private vote to determine if a business can be unionized, the likelihood that retail auto dealerships will be forced to become union shops becomes a real possibility. The regulation also allows the government to intervene in the event that an employer challenges a union take over with a Federal administrator enforcing the union proposals as to wage and other terms and conditions of employment pending a final determination. Based on reduced sales volume, profit margins and increased costs of doing business the inevitability of these privately held dealerships collapsing under the financial weight of union demands is painfully obvious to any auto dealer that understands his cost of sales line items and their impact on his shrinking bottom line.

 

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