03 June 2009

Okay, once more, then Rico stops repeating himself

Rico says there is a simple solution to the whole auto industry problem. They make more cars than they can sell. (Thus the every-year lot full of last-year's cars at markdown prices.) They need to stop doing that, but they don't know how.
They do it by adopting Rico's Excellent Scheme to Sell Cars.
That is, the customer comes on the lot, drives a car until he finds one he likes (and there's only one of each kind, mind you), picks a color and options he likes (there's only one of each color, too, and the options are on a website), fills out an order form, puts down a thousand bucks deposit, arranges for financing, and goes home.
In five or six weeks, the dealership calls and says "Come pick up your car."
The customer goes in, gets the keys, and drives home.
What about all those other situations? The customer's car dies, the customer's car is stolen, the customer's car is wrecked...
Yeah, yeah. Loaner. Rental car. Something. Just not a new one, not for six weeks.
What's that get the customer? A cheaper car, presumably. (And a company that's not gonna go bankrupt before the car's paid off.)
What's that get the car company? Better profit margin. No carrying costs. No inventory costs. No huge-lot-to-store-them-all costs (ever seen those lots with a thousand cars, just sitting there?).
Rico says he will graciously accept the thanks of the Bigs, now that there's gonna be a Big Two (too late for Chrysler; good luck with that Fiat thing), thanks to his idea...

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