16 June 2009

One last time

Rico says he's gonna give the secret away for free, yet again.
If you want to save the American car industry (and who doesn't?), then you have to change how it does business.
It's simple (Rico did it when he bought his Explorer, years ago now), and it's effective.
All car dealerships should only have one each of every model (not in every color, though one of them should be in every color) on its lot. The customer can drive whichever one they think they might like.
Once they've made a decision, the salesperson sits down and writes up an order for the car: model, style, color, accessories, the lot.
The order goes (with a reasonable deposit; say, a thousand dollars) to the factory.
The factory builds that car.
The car is delivered to the dealership, prepped, and the customer is notified to come in and pick up their car. Financing is arranged, as usual.
No inventory anywhere in the pipeline, except maybe in a parts pile in Detroit (or wherever the factory might be).
No inventory carrying costs.
A lot more profits for all concerned, and probably a better deal for the customer.
The auto industry is saved.

Contributions by the auto makers may be sent to Rico; email him for instructions. (He's not holding his breath.)

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