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Entries in Mobility (3)

Thursday
Jan122017

Mobility Business

Lets clarify a point or will it be a few points.

Today there are a lot of folks talking about mobility which is immediately interpreted as some sort of "self driving" or "autonomous" conveyance. Its also become an interesting catchword for a lot of folks.

When you reflect on it for a moment..."An auto dealer is in the people business to provide mobility".

You want or need a vehicle to go from A to B, and all vehicles today will get you from A to B.

Its that simple...

At Strada when we refer to mobility we prefer to think of it as the initial shift from ownership to having mobility on a monthly payment basis.

For decades in Canada we were ingrained in owning the mobility conveyance (car), there was a sense of pride in having ownership of the car.

Fast forward to today and the inexorable rise in consumer credit which is primarily driven by auto loans. It begs the question "Who owns a mobility conveyance?" Not many...

As you read the various virtues, and benefits of autonomous vehicles, from less accidents to car sharing, to vehicles returning home after a short commute...we could keep on going. In Canada we are already a few steps closer towards the model of AV's where less and less folks truly own a vehicle or are seeking an equity position in a vehicle.

Its costing me "So much per month" to have a conveyance that provides mobility.

Obvious that a lot of folks will still own their "toys" be it a car, a truck, motorcycle, hot rod. But the conveyance that is relegated to commuting, going from A to B, doing the errands. That one is on a "So much per month" basis.

Canada is steadily progressing in the "So much per month for mobility" since the past few years. Its the reason that we are seeing record sales.

 

 

Thursday
Nov242016

Some Reflections 

As we are closing in on November and many folks are looking ahead to 2017. In no particuler order, some of our thoughts.

November

We are anxious to see the Canadian sales results for the month. We are anticipatiing a "good" month close to or equal to last year. Its the push prior to Christmas.

The Best of...

Have you noticed the waning interest in the 10 best of this or that, the finalists, or the car of the year and so on. Think about it its the customer that decides what the best of anything is all about.

Mobility

The auto business and prior to autos it was horses have been poviding mobility for a few centuries. Fascinating when suddenly there are all sorts of mobility experts, visionnaries. Think about this for a moment.

Autonomous Vehicles

At some point we will have level 4 AV's on the roads...yes at some point. The technology is almost there, the infrastucture not so much, and how AV's will interface with non AV's will be interesting.

Hatchback

At one time you could not give away a hatchback in North America. Now its the new flavor, must be the utility thing...tailgate...hatchback.

Electric Vehicles

Yes...we are firm believers in electric vehicles...the initial torque is intoxicating at a time where there is rampant congestion all over the place.

Subscription

Hyundai is on to something by offering an auto subscription. Not ownership with forver terms, or a lease with a wear and tear factor. Here is a subscrition so much a month, enjoy the mobility.

People

You know that saying "We are in the people business through cars" late we have learned that "We are in the people business with social media". Reflect on this...

Software

There is a piece of software to do anything and everything, from ABS brakes, to a DMS is a dealer, to going around with a ton of software on a mobile device. Reflect on this and that we are still humans.

Time

Its an hyper precious commodity, a formidable equaliser on a vector that is increasing in velocity. You need to accelerate time...

Leadership

Its evolving, more demanding, and lacking in many ways. The expectations from leaders are increasing, and will continue to increase in 2017.

Passion

Where would you be without passion? Where will you be with more passion?

 

 

Wednesday
Jan062016

Break Another Sales Record in 2016?

It must be the question of the day "Are we going to break another auto sales record in 2016?" and really get into uncharted territory.

Its easy to generate spreadsheets with increases, have smooth powerpoints to support the spreadsheets and story line, while presenting a polished veneer of success. Its the stuff that is served at every auto show on press day. 

At the altitude every manufacturer was flying at the end of 2015, gaining additional altitude will require superb execution, several new models, and sustained competitiveness. Yes...some manufacturers are in better positions than others going into 2016. 

Some bumps in the 2016 road in no particular order.

Economy:

The Canadian economy was not going anywhere in 2015, and will continue to do the same in 2016. Although auto sales and real estate was through the roof last year.

The level of economic confidence last year entering 2015 was higher that entering 2016 this year.

CMS:

Citizen Main Street is more stretched credit wise this year than last year. Although CMS upholds a monthly mobility budget.

Canadian Dollar:

The lower value of the Canadian dollar will impact the cost of vehicles, and the extent of incentives / programs for manufacturers.

Obvious that most if not all manufacturers have run a few models to explore the impact of pricing and programs with a lower dollar.

Free Flowing Money:

We anticipate the trend of free flowing money to enable sales will continue in 2016, and perhaps with an increased level of boldness to deal with negative equity.

Winners / Losers:

There will be winners and losers among manufacturers, dealers, dealer groups, various models. New models that capture the imagination will assist winners, while incentives will prop up older models.

Mobility:

The trend will continue, with CMS increasingly preferring mobility to ownership. By now we should all know that the mobility model increases sales.

Record:

We believe that 2016 will be close, but not surpass the record sales of 2015. It will be very close with some segments of the market doing better than 2015. The no brainer is that trucks/utility will do better, as well as "premium economy".