“Damned If You Do……..

...and damned if you don't!" That appears to be the unenviable position of the car divisions today; especially with their fleet interests.

As you are aware from our past editorializing, we have not been exactly sympathetic with the quality of products, the vacillation on warranties, and the direct lack of support for the fleet departments by car divisions corporate management in recognizing the importance and uniqueness of fleet sales.

But now, one can hardly be anything but contrite and filled with compassion for the plight of those veteran fleet men at the car makers. Just consider those groups of Eastern dealers filling suit to eliminate fleet allowances; and NADA in court with similar thoughts. Nader and his feisty group making you wonder if next year's model can be distinguished from a Sherman tank when the U.S car buyer is buying more VW's than ever before. Of course, as a national car marketer, you react, as a national car marketer, you react. Safety innovations are crash engineered into the vehicles. You react (not all) by eliminating both fleet allowances AND government car sale subsidies.

WOW! What happens? All of a sudden it hits the state and federal car buyers that it is now going to cost them a bundle more to obtain the new cars they want. Maybe those fleet subsidies weren't so bad after all. In fact, they feel motivated enough that some fourteen states have essentially banded together in a 'class-type' suit that commands a Federal Grand Jury to investigate this change. They feel that they are not being discriminated against (or for) in the manner they have been accustomed to.

At this writing the Grand Jury is beginning in Detroit. From the number of names (including top management men at the divisions) on the subpoenas, it would appear that the janitor and only a few others have been left out. When the tons of records are mode available, presumably studied, and the Grand Jury finally gets down to the nitty-gritty, it's going to boil down to the nitty-gritty, it's going to boil down to what we already know only too well.

Not unlike other industries, the dealer (solely retail), the dealer (fleet oriented), the government buyer, and the car marketer each have their own interests to primarily serve. And the 'system' has not been that bad; and is not that bad.

The competition between the major companies maintains a healthy balance. The competition between car maker divisions within a corporation is intense; and good. A classic occurred in January when one division just eked out more new registrations than a sister division. The reaction at both divisions will eliminate any doubt in anyone's mind that 'they may be working together' for mother corporation. It is this type of competition that ultimately works toward benefits for the fleet market.

Hopefully, the courtroom dither will subside and we can work ahead with common goals and a solid foundation in our car purchasing. Then, perhaps, we can more properly concentrate on some of the other real problems confronting us; like dealer service, drop shipment, dealer delivery, the inequities of warranty for the well maintained high-mileage fleet car (and the odometer laws) as well as product quality control.

So, that's why we say when you find someone you know well in that classic "Damned if you do, and damned if you don't" situation, it does call for your compassion and understanding-and for the enthusiasm for the brighter tomorrow.