Ziegler Supersystems, Inc Automobile Dealership Success Plan

I picked him after school at five o’clock in the afternoon. My 16 year-old son, Zach is on the varsity wrestling team again this year so they are staying late everyday. He thought it was a little strange that I would take off early from work since this was usually his mother’s area of responsibility. You see, somehow my family has gotten the mistaken impression I am a workaholic, which, of course couldn’t be farther from the truth.

Now, those of you that follow this column are aware I ordered him a new, silver 2005 Mustang GT. Well, it was here...hidden in the garage...and he wasn’t expecting it for another week or so.

I made up an excuse to call my wife on the cell phone when we were less than a block away so she could be ready with the camera. We executed the entire operation flawlessly...he didn’t suspect a thing.

As we pulled into the driveway, I parked the Escalade right next to the garage door and started an intense conversation with him about his grades. Really, all I was doing was distracting him so he was looking at me and not at the garage. I hit the automatic garage door opener while his back was turned to it. When he finally turned to get out of the car, he turned and saw it, a scream rang out and his face was pure elation. Jumping around...hugging his mother and me...climbing in the car...opening the hood and trunk...playing with the sound system; it made me so happy I got a little teary=eyed myself.

Never, never have I seen him as happy and as excited as he was that day. It brought back intense memories flashing through my mind. You see folks; my first car was a 1966 Ford Mustang with a 289 V8.

Earlier that morning I had spoken to my friend and client, David Karangu, who is the Ford dealer at Fairway Ford in Augusta, Georgia. David had the car delivered to me in Atlanta on a flatbed truck and I signed the papers at my desk. He made sure that every detail was perfect on my son’s new Mustang. We were fortunate to be able to get one of the very first 2005 Mustang GTs in the country thanks to a little nudge from my friend, Jim O’Connor.

I had an opportunity to drive the car myself for a couple of hours before I took it home. Incredible! Ford has a winner here that will reawaken the brand. The retro styling isn’t overdone and power and performance are solid. The statement is bold. When the car showed up at my office, by coincidence, one of the executives in my building is driving a fully-restored 1965 Mustang Convertible. He was out there with his digital camera taking pictures of the two cars side-by-side...then he called all of his friends in the Mustang Club. Within an hour we had drawn a huge crowd of raving fans.

I drove it to lunch and drew another crowd on the parking lot of the restaurant...people slowing down in traffic, coming along side and pointing and waving. The really cool thing that happened was when a real 1967 model pulled up right beside me. The guy driving was checking out the new model. The car is a showstopper.

On the other hand, here are some excerpts I wrote in this magazine, October issue, in an article titled Anxiety...Weathering the Storm

Well, Ford Motor Company is banking on the new Ford 500 platform to lift up the company. Sorry folks, I know it's a great car technologically, but I just don't see it.

... But not Ford Motor Company; it has pinned the hopes of the future of the company on another (yawn) jellybean car with a number instead of a name.

...On the other hand...I think the Freestyle Sport Wagon has a reasonably good chance to be a real winner... Of course the new Mustang and the F150 are world-class contenders that will rock the market.

Well, evidently Steve Lyons and company should have listened to me earlier. In the October 18^th issue of the Snooze, my friend, Amy Wilson, wrote an article about the fact that Ford is going to build more Freestyles and less Ford Five Hundreds.

Ford Division President Steve Lyons was quoted as saying... “The market's surprise demand for the Freestyle is triggering the mix adjustment...We thought it was going to be the other way."

Jumping up and down now, raising my hand... “Hey Steve, I knew!” Truthfully, you’d have to brain-dead and out-of-touch, if you thought the public was going to embrace that car. The Freestyle has imagination and styling, the Five Hundred is boring.

Good Bye

A solitary tear ran down my face splashing in the snifter of Louis XIII cognac sitting next to the keyboard as I read the words. It seems that the Pontiac Aztek is being phased out and replaced with the new Pontiac Torrent sports wagon. As many of us fondly remember the Aztek was once named the most-appealing SUV in its class by inscrutable and irrefutable J.D. Power and Associates alleged research.

In March 2001, in an article titled To Boil a Frog, I wrote the following...

And the new winner is… (Tearing open the envelope) “The Pontiac Aztek”. It all started four years ago years ago when I wrote an article about how butt-ugly the redesigned Ford Taurus was. AND NOW…after four unchallenged years of undisputed rule the Taurus falls to a new contender. This survey was scientifically conducted. I asked twenty inner-city kids with their hats turned backwards…nineteen to one agreed that although the Taurus was extremely repulsive, the Aztek was certainly one ugly son of a bitch deserving of the title.

...some fool told me that they were projecting 70,000 units in the first year. They’ll be lucky if they can find Dealers who are strong enough to push 25,000 of these pigs off the lot. The car (Or whatever the Heck that thing is) reeks of “Propeller Head” engineering influence. It’s so supremely “Geeky”. There’s just something about The Pontiac Aztek that screams out to me… “Shoulda been a Saturn.”

And then in another article titled Fire & Rain, December 2001, I wrote the following...

A little blurb in a recent article hit me as being a little funny…it said that the Pontiac Aztek had won a beauty contest…sort of. Well, I had to read on. It seems that the Pontiac Aztek rated at the very top of the very top in J.D. Power and Associates recent prestigious (barf) awards in the category of performance-execution- and layout. I am talking the most prestigious glass trophy money can buy. You see I had accidentally and evidently erroneously gotten the false impression that the Pontiac Aztek was actually one bastardized, goofy-looking, ugly son-of-a-bitch. I would like to apologize and thank J.D. Power and Associates for pointing out that; evidently, their research has proven beyond a shadow of a doubt that most people actually believe the Aztek is beautiful. I humbly stand corrected.

Power for Sale

Speaking of J.D. Power and Associates...did you see where they were considering selling the company? No joke, really. It seems like Peter Marlow, who is one of the senior partners, said something about they needed to raise money to stay competitive. Some speculators feel they could get as much as $400million for the company. For those of you who are not familiar with J.D. Power and Associates, they sell little glass trophies that companies can use in their advertising.

When I read the headline that said J.D. Power for sale, I said “So, what’s new about that?”

You know, maybe I can talk to Mike Roscoe about the possibility of DEALER Magazine buying J.D. Power and Associates and turning it into a research firm. That’d be cool...we could make me the president and then I could pal around with Keith Crain.

I heard it on CNN first and then I read it again later in USA Today...it seems that my Escalade is the most frequently stolen car in the country with more than 20.2 per 1000 being stolen. On the other end of the spectrum, the least frequently stolen car was a Saturn. Who’d a guessed that?

In March 2002 I wrote an article titled... Laissez Les Bon Temps Roulez! (Let the good times roll) Talking about the 2002 NADA Convention, I wrote then...

The Gods were on the floor. Bob Lutz from General Motors walked by the booth and I said… “Hey Bob, did you know you’re one of my personal heroes!”…To which he replied laughing… “That’s a heavy responsibility Jim.”

Well Bob, I just saw the pictures of the new Buick Crossfire...say it ain’t so!

The concept car was bold and imaginative...this thing is just another old tired re-skinned Buick Regal. Don’t tell me General Motors hasn’t got the balls to step out there with radical designs...look at Cadillac.

What’s going on here? First we stick the valuable brand-equity heritage of the GTO nameplate on the wrong car...obviously the wrong car...AND NOW... what in the hell is this? Some mistakes should be so obvious they never make it into production. Ford has the Five Hundred and now GM has the Crossfire.

Just had to smile when Automotive News said that Lutz is speculating on a $100,000 Cadillac limited-edition super-luxury car. I can definitely see it. As a matter of fact, you know I love Cadillac...if the car is right, I’ll own one.

After the all too predictable failure of the ultra-luxury segment cars, the Mercedes Maybach and the Rolls-Royce Phantom, it would be a bold move for Cadillac to move into the basement of this segment.

Four years ago when DaimlerChrysler announced a $300,000 ultra-luxury sedan, I was quick to inquire as to what these people were smoking. The original high-flying projection was to sell 1500 units annually...then adjusted downward to 800 units...then, reality check, now they are feebly hoping to come out of this year with 600 sales...I am thinking 400-500 maybe.

The Rolls-Royce Phantom (owned by BMW) was optimistically shooting for 1000 sales this year BUT, who woulda guessed, they are creeping into November at right around 500 units worldwide.

Of course the Maybach sticker price ranges between $318,000 and $370,000 (evidently nicely equipped) and the Phantom stickers at $324,000.

One of the trade publications quoted a Rolls-Royce spokesman as saying they were hopeful to sell more of them after the Islamic holidays. Get this; these alleged fools are counting on rich Arabs to pull their bacon out of the fire.

Back to Lutz and the $100,000 Cadillac...it’s doable. As a matter of fact I think you’ll see a lot of competition in that price segment, most notably Lexus, BMW and Mercedes.

The new STS is out, and frankly it’s a Hell of a car but it needs some work too. If it’s going to be the current performance-luxury flagship, it needs more pizzazz and jagged styling. It’s almost as if General Motors got so radical with original Evoq stealth styling that they’ve scared themselves backwards and stopped taking chances with design.

Back in the August issue in an article titled The Day After Tomorrow, I wrote...Chrysler...damn...all of a sudden these guys are hot. You know I love Wolfgang Bernhard and I am laughing till tears flow down my cheeks at the absurdity of ousting this eccentric genius. The Chrysler 300 Hemi is Bernhard's baby...he is 100 percent totally responsible for the resurgence...as in electro-shocked a dead heart back to life...of the Chrysler brand. Now, we all have heard DCX is trying to seduce him to come back to run Chrysler North America. This guy is valuable and he'll have no problem landing a top executive position wherever he wants to land.

I was sort of hoping Wolfgang would land with General Motors to replace a retiring Bob Lutz someday...maybe Ford...but, I’ve got to admit, I was really hoping he wouldn’t end up at Volkswagen. I have often referred to VW as the Detroit Lions of the Automobile Industry. You can always count on them to drop the ball in the Red Zone. Volkswagen has these spurts of brilliance that always seem to crash and burn with self-inflicted wounds borne of monumental arrogance.

Now, I’m not saying Bernhard’s anybody’s darling either for that matter. He’s got his own special breed of ego and arrogance (I can relate to that). But, this guy’s got genius and talent that makes no excuses for his “My Way or the Highway” mentality.

He’s trying to eat an elephant here. One thing you can be sure of is that he’ll shake things up in the traditionally constipated culture at Volkswagen. Will he piss some people off? I hope so! Let’s face it? Volkswagen is a safe-house for underachievers. My question is...does Volkswagen CEO, Bernd Pischetsrieder, have the testicular fortitude to stand up to the heat this guy is going to generate?

Does Wolfgang have another Chrysler 300 Hemi up his sleeve? I think this guy’s got endless imagination and he’s in tune with what they’ll buy. I predict he’ll have some exciting radical new concept cars mocked up and published before the spring car shows.

Of course he’s got to deal with the toughest, most overpaid, whiny-assed, out-of-control union in Europe...he’s got to cut a lot of entrenched fat...Volkswagen has quality issues...and VW dealers aren’t all that happy either.

In the short-term he’s committed to blowing out 5000 dead-weight white collar employees and cost-cutting $5 billion in operations. Renegotiating with the union, freezing salaries and taking back entitlements; it’s a man-sized job.

When it comes to Wolfgang, I am a raving fan. Let’s face it; he’s my kind of guy...in your face comin’ right at ya. The man is a showman with big cajones.

AND, I’ve just gotta think he’s got it in for Jürgen Schrempp and the gang. Something tells me it’s going to be personal. Don’t be surprised if he doesn’t go heads up with Mercedes in some segments. He’s a man on several missions with some scores to settle and things to prove.

And then there’s the issue of stale product and some downright stoopid miscalculations like the VW Phaeton and the Touareg ($3800 on the hood and still can’t give em away).

Way back in December of 2002 I wrote an article titled...Invasion of the Body Snatchers. At that time I wrote, in part...

I was expecting it to come in at somewhere around $40,000. Coffee spewed out my nose when I read the headline in Auto Snooze...Volkswagen to launch $96,000 Luxury Model.

I wrote about this one more than a year ago. At the time I was enthusiastic that Volkswagen was getting into the game. What in the hell are these people thinking about here anyway? We’re talking about a 12 cylinder gasoline engine top line luxury car. The Phaeton is a two or three ton land yacht coming from the same folks who bring you the Beetle for heaven’s sake. The name Volkswagen literally means “people’s car”, you know “folks-wagon”. Who is going to admit they drive a $96,000 Volkswagen?

Of course, consider the source. Isn’t this the same company that insists on calling their new SUV “The Touareg?” Even though they have received numerous complaints from North American dealers about that allegedly idiotic sounding name... “Touareg”...those wacky Germans are doggedly sticking with it. I said it sounds like some moldy infested unidentifiable thing you’d discover in the back of your refrigerator.

Well, guess what...The Phaeton and the Touareg are albatrosses hanging around Volkswagen’s corporate neck.

First of all, let’s look at the Phaeton. I called it two years ago...let me look for an appropriate word here. How about “Idiotic”?

Now, we have $10,000 dealer cash and the 2004’s are advertised at fire sale prices. They even tried offering Mercedes and BMW owners 24-hour test drives...nothing is working. All of this was predictable with certainty. Why were these people so unable to see it? Same thing with the Touareg...I just don’t get it. Remember, I have always said my predictions are so accurate, not because I am so brilliant but more so because some other people are so damn stupid.

Mitsubishi? Still in the toilet and fighting the swirl. I’m sure he’s a decent sort of guy but I always smile when I hear their marketing guy is named Ian Beavis. I just picture this cartoon character standing there going... Heh Heh Heh Heh Hee Hee Hee! Truthfully, I think Finbarr is doing a heroic job and yes, I do believe there’s a fighting chance they’ll pull through. The Ace in the Hole here is the Japanese Government. Somehow if it ever actually gets to crunch time, I think they’ll bail them out.

Over the last several years I’ve written a lot of speculation about the impact the Kirk Kerkorian case will have on the future of Daimler-Chrysler. Well, we’re getting down to crunch time. The decision is in the hands of a Federal Judge in Delaware as to whether or not Kerkorian will be awarded $3 Billion in damages.

It’s not so much the magnitude of the settlement should he prevail as it is the fact that Jürgen Schrempp exhibited such perceived ineptitude when he bragged openly that it was always a takeover. Schrempp is under increasing pressure in Germany, at war with the board and stock holders over a multitude of issues. This case might be the straw.

Saturn ...reinventing itself...again

General Motors top executives are now saying that they plan to realign Saturn to the north of Chevy and Pontiac, just south of Buick in the slot that used to be Oldsmobile.

Saturn General Manager Jill Lajdziak (whose last name counts 50 points in Scrabble) is excited about new product and new design emanating from a liaison with Opel Designers in Europe. Well, I’ve said it repeatedly; new product is never going to save Saturn.

Most recently my company has been working with Saturn dealerships in select markets training the sales people and managers and adjusting flawed processes. We are showing some incredible increases in sales and profitability...without sacrificing integrity. There’s more to selling cars than clapping and singing a little song at your customers.

GM is about to sink at least another $2 billion into what has been a documented “Black Hole” for more than 15 years. You people need to learn how to sell cars.

The article in Detroit news was titled...

McQueen, Mustang ride again

If you build it, they will come...Well, isn’t that what I’ve been saying for years? If you build great exciting, imaginative, quality cars...they will come.

Guess what, if you haven’t already seen it by the time this article comes out, Ford and J. Walter Thompson advertising have come out with an incredible television spot using a computer reincarnated Steve McQueen to advertise the new Mustang.

With advanced computer magic, McQueen lives again, walking out of a cornfield similar to the characters in the movie Field of Dreams and drives off in the new Mustang.

McQueen and the Mustang go together because of the association with the 1968 movie Bullitt where he drove one of the greatest movie car chases ever filmed on the streets of San Francisco, matching a 1967 Mustang GT against a Dodge Charger.

Ford bought the right to bring McQueen back to life on screen from his estate...I assure you he would not mind. That chase scene was the essence of what McQueen was all about. He’d be proud. The car is worthy.

Well, it’s after midnight on a Sunday night in Atlanta. I leave tomorrow for two days consulting in Tampa and then I’m off to speak to a 20-group in California. (I’d love to speak to your 20-group)

Zach just came home about an hour ago while I was sitting here writing this. He called me from his cell phone in the garage and asked me to come up for a minute. I took a break and went upstairs.

He wanted to show me some pictures of stripe packages you can put on the Mustang...and he got some new floor mats he wanted to show me. Yeah, the kid reminds of myself nearly 40 years ago playing with my first Mustang. As I walked up the steps I turned suddenly and stared hard at the dash. He has another new accessory that I hadn’t consciously noticed at first glance. It sort of hit me as I walked up the steps. Evidently Zach has saved up enough money to buy himself a new radar detector. Oh well...chip off the old block.

If you wish to discuss this article with other dealers, or with the author, please go to the "Discussion Forums" at www.DEALER-magazine.com and enter the "Dealer Advocate" forum.

Jim Ziegler is the president of Ziegler Supersystems, Inc.