Omni Automotive Advertising Blog

With Halloween just around the corner it seems appropriate that we be scared of something. Ghosts, Goblins, Vampires, Werewolves and more abound at this time of year, popping up to send a chill down your spine. But it’s not the creepy monsters and such that are scaring us this year. This year the big monster is the economy, or the blog that’s eating up auto dealerships across the globe. That’s right! The scariest thing you could imagine is no longer hiding in the shadows.

You don’t have to live in a cave to know what’s going on. Every day there is another news story about rising costs, dealerships shutting their doors and closing up shop. On Oct 21, AOL reported “Credit Crisis a ‘Catastrophe’ for Auto Sales“. No new news here. Dealerships that use to make money hand over foot are now reporting significant, up to 30%, losses in sales during the last month.

Almost 600 of the about 20,000 U.S. new car dealers have shut their doors this year, and an additional 2,000 will close within 18 months, predicts Mark Johnson, president of a Seattle consulting firm that helps auto dealers buy, sell or merge operations.

While some dealerships have closed due to poor management, others are simply the victim of the slowing economy. With rising costs and less disposable cash, consumers are tightening their belts, hesitating to buy high cost purchases like houses, boats and cars. A article on Yahoo.com reports states that “Consumer spending accounts for about 70 percent of the economy.” The article also goes on to state “layoffs this week include Chrysler LLC, which said Thursday that it would eliminate 1,825 jobs by cutting a shift at a Toledo, Ohio Jeep plant and accelerating the closure of a sport utility vehicle factory in Newark, Del.”

Scared yet? Maybe that is a good thing. Fear can be a great motivator. Don’t let fear immoblise you. Take action. While consumers may delay buying a car, people need cars and they will continue to buy cars. The automakers, knowing that the consumer need those cars but are no longer willing to buy the big gas guzzlers, have seen the light and making more energy efficient models.

And although the news has predicted the demise of some dealerships, others will survive. To survive they must fight. Dealerships must motivate themselves, educate thier salesteams, reassess their priorities. Here at Omni we are taking great strides to recognize the trends. If you’re dealership is faced with lagging sales, give us a call. Omni Advertising knows the automotive world. We know what works and we can help you strengthen your automotive sales during this uncertain time. Don’t be scared! Call us.

Here are some things that have come through my Google Alerts account this week. This is just a small sample of the 71 emails in my inbox this morning.

‘09 Audi A4 3.2 Road Tested – All New, Really! Read all about it!

Capital One Ends Financing of N.Y., N.J. Car Dealers – Bloomberg.com — More problems for Auto Dealers

Car dealers sent packing – Greater Sacramento’s new-car franchises have disappeared at a rate two-and-a-half times greater than the national average. Sacramento Buisness Journal.

Not everyone believes that auto sales are dead. For instance LR Automotive Partnerships in Texas “announces the acquisition of three dealerships in the north central Texas: Nissan of Fort Worth, Waxahachie Ford, Mercury and Waxahachie Pontiac, Buick, GMC.” In Florence, KY, the Jeff Wyler Group bought Florence Buick Pontiac GMC. And remember the Bill Heard post? Well, Luxury-brand retailer Qvale Automotive Group of San Francisco had a pre-bankruptcy deal for the Huntsville store.

Heard about the GM merger? Will the GM Chrylser merger work or will it eventually be the deathsong of the automakers? Read another article about the the deal fostered by Cerebrus here.

Meanwhile, GM is hoping that the new series ‘My Own Worst Enemy‘ will boost GM sales as they provide the show the new 2010 Chevy Camaro SS and 2009 Chevy Traverse for the split-personality lead character Henry/Edward played by Christian Slater. Read the article here.

Speaking of TV shows, the new 09 Dodge Ram is the showcased vehicle on a recent version of “The Sarah Connor Chronicles“. The quad cab sports an optional lockable storage area in the side.

After a one week lay off, it’s BACK!

• So what is the Credit Crisis doing to dealers… you probably already know. CNN is finally covering the story.
• Chevy is cleaning up nicely for their new Hybrid Silverado…
• And catering to the college crowd with Taxi Cab Confessions.
• Lexus… Faster than a speeding cheetah hologram.
• The new Fit fights gas mosquitoes. Another new Fit commercial.
• Volvo has just made an interactive movie type game to tie in with its boat race, or something like that. Just click the link. You only have four minutes.
• Speaking of movies, here’s a Film Noir about Mercedes-Benz and obsession. “The car is not following you. You are following the car.”
• Audi gets all emotional on us.
• Pontiac is all about details in this Sin City type spot. By Sin City I mean the movie, not the city.

That’s it for this week. Hopefully we’ll see each other again next week.