The manufacturers may have to rethink they way they do it. If their cars don't sell it is probably because they are not connecting with their customers. I think that is as important as price
Cars - a buyers market
By: Drivers.com staff
Date: Friday, 23. June 2006
In 2005, 65 million cars were manufactured but only 55 million were sold, according to financial services and accounting firm Deloitte Touche Tohmatsu (DTT).
The internationally renowned consulting company reckons that car manufacturers could increase their sales by 20% without fancy marketing programs or new niche models simply by revamping way they think about their businesses. The key to change? - a better buying experience for consumers, which will result from improved cooperation between manufacturers and dealers.
The cornerstone of the new strategy will be a focus on service and parts a "profit and growth leaders." Auto manufacturers, say DTT, should rethink basic business assumptions and put in place "design for excellence" programs.
Automakers should be more dealer friendly, improving dealers' customer relations with more efficient service and parts management and more economical logistics. And the dealers, suggests DTT, need to create a better customer experience listening to them, stocking the right vehicles, simplifying the financing process and motivating sales.
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JDP,
Zach,
I work for a company that produces components for the major US auto companies. The biggest problems that involve the price of the vehicle is the money needed to pay the workers who design/assemble the vehicle. As well as, pay for facilities, and further pay the suppliers for parts, and the materials which they individually sell. Plus, the dealer takes a good share out of it. Per each vehicle, the manufacturer doesn't get to see that much profit.
Ozzie,
I think those 10 million not sold car will be sold in next few years at lower price.
The most important thing in selling car is the price. The price should combine with the safety, such as how many airbag in a car. Some low price cars only have two front airbags, but that is not safe enough for the driver and passengers without side airbags. Another aspect is the hidden price in selling a car. Adding that, the price of a car will be doubled sometime.
Also the engine is becoming bigger than past years. For example, the cars with 3.0L were easily found several years ago. Right now they are almost disappearing. Only few choices exist when you want to buy a car with 3.0L engine. More air pollution will be produced with the bigger the engine. For an individual who consents the environment will not buy a car with big engine. The car manufacturer should thing about those.
Doug,
Where did those 10 million cars not sold go to?
