Automotive Industry News That Makes a Point

While the average person may not have much interest in automotive industry news, a lot of useful information can be obtained. This would include the interesting reasoning behind why you can’t always find the car you want at a dealership. Many consultants push for dealers to listen to the customers and their needs. Though this suggestion would work when you look at it theoretically, there are some things that are stopping it from happening.

It is not actually the dealers that are dropping the ball most of the time; it’s the automakers themselves. They may not ship what has been requested by the dealers, instead shipping the vehicle they want. This leaves the dealers with an inventory that isn’t what they requested or what their customers want.

This unfortunate circumstance leaves the dealer with the choice of resorting to hard sell tactics or letting the vehicles sit around forever. Those hard to sell cars can continue to sit for a while, but ultimately they will create problems for the dealer, as no customer may really want to buy them. You either hope they have the vehicle you want or sometimes settling on another choice.

Continued build up of those vehicles can leave the dealer with absolutely no cars that will fit their customers’ needs or wants. You will definitely want to figure this in when you head into that local dealership and don’t see a car you want.

Those hard to sell vehicles that continue to sit around are called a “brown banana”, because it’s become overripe and the value has been going down as it continues to sit around. At this point what can a dealer really do about that problem?

Giving away the cars free, while it might thrill customers, is something that isn’t going to happen. Even when they knock off a lot of money on the price, they are hurting themselves as dealerships are held to making a certain amount of profit. If they don’t make that amount of profit, they could be shut down.

Of course dealers could head back to the days when hard sells were being used all the time. However, that isn’t going to make a customer happy in any way. Many people hated to see a salesperson walking up them in those days.

You’ve probably had it done before – you know the old “let me see those keys” routine. They would state they needed to look at your car to value it for trade-in, however, once those keys were gone it took some might serious persuasion for them to bring your car around so you could leave.

It was a process that earned many people a bad reputation in the past. They would wear you down over time, until you would finally agree to the sale. Not only would you get a car you weren’t really sure you wanted, but you may have put yourself into too much debt.

Latest in the Automotive Industry News

The latest in automotive industry news is that Nissan has big plans. Just when the Indian car market is sparked to heat up, one of the major car manufacturers in the world, Nissan, has made some big plans. Nissan Motor India Pvt. Lts. has opened a new corporate office. The location is T. Nagar, Chennal. The person at the helm of leadership will be Kiminobu Tokuyama. Also present at the inaugural were representatives of the Nissan partnership, Renault Nissan Automotive India Private.

Nissan has big plans. One of these is the fact that they will cover 85 per cent of the Indian market by the year 2012. This will evolve as a result of the proposed 11 operating dealerships being in place by the end of this year. This number is expected to increase to 55 dealers in two years.

Another lofty goal Nissan hopes to attain is in exportation. Next year the car manufacturer plans to outsource $20 million in components and double this amount within two years. Along with this goal Nissan plans to export cars. They plan to export to countries until they reach 100 worldwide.

According to automotive industry news, Nissan will begin producing the Global Compact car in their Indian facility next year. Nissan has made it clear that they plan to be a major player in the Indian market just as they have been in the United States and other countries. The production of the compact car will happen in their new corporate facility in India. The 10,000 square feet building will offer employment to 56 people. Another goal is to nearly double this number by the next year. The new facility offers state-of-the-art everything. This, along with artsy interiors and open work-stations will contribute to the culture promoting an open feeling and spreading friendship.

Nissan is proud to be offering nine new models in India. The fact they will open with this large number of models points out that they are entering this new market where they know they will be successful.

Nissan presently has 5.5 per cent of the auto market. Their plans are to increase this number with the opening of additional Indian dealerships along with a lineup of new models. A hatchback, which is built on the V platform, will be the entry car in the Indian market. Nissan will also offer two other autos one of which is a utility vehicle and the other being a sedan. They point out that there are no plans to offer the A segment initially.

Perhaps the competition will be offered mostly with the low cost manufacturing of the compact model while there will also be luxury cars. These will be supplemented by commercial vehicles that will be of the lighter manufacturing. Just six months back it was not certain how the manufacturer would attack the changing market. They have cleared any doubts among other manufacturers after announcing their future plans.