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Consumer Confidence? How About Consumer Angst!
If you listen very carefully youll hear a quiet rumbling
in the air that forces you to look back over your shoulder, to feel
the edgy anxiousness of knowing that something is coming, but not
knowing what. Allow me to enlighten you. You, the consumer, are
about to get kicked once again, this time by the auto industry.
Not surprised? Neither am I. We consumers have been getting it so
much lately, Im beginning to wonder if were not all
wearing signs on our backs that say, kick me.
Personally Im at a loss to explain this strange phenomenon.
As the engine that drives this economy (hasnt consumer spending
recently kept our sagging economy afloat?), one would think that
consumers would be paraded through the streets on the shoulders
of lowly CEOs, hailed as gods and goddesses for our ability to spend
our hard earned dollars on what we need and more often than not,
what we dont. Youd think. But youd be wrong.
The latest kick is delivered by the big auto manufacturers who,
in their infinite wisdom, have decided that we consumers should
ONLY be able to have our vehicles serviced at the dealership. Theyve
done this under the guise of complying with emissions standards
that supposedly have forced them to design some fairly sophisticated,
chip driven equipment for their cars. To service this equipment
requires equally sophisticated diagnostic systems, which theyd
like us to believe independents are not trained to tackle. Thus,
manufacturers are making it virtually impossible for independent
service stations to repair new chip-driven vehicles by not supplying
them with the codes needed for diagnosis and repair. Diagnostic
equipment they are willing to sell to independents is prohibitively
expensive and simply out of reach for many small independent shops.
Who loses in this battle between independent repair shops and the
big manufacturers? You guessed it. We, the consumer.
Heres a potential scenario. You buy a brand new car in November
and in June you take a new job in another state. You make your move
and because life is never perfect, as soon as you get settled, your
car breaks down. No problem, you say (youre making more money
anyway), Ill just find a reputable independent repair shop
to fix it. But when you do, the shop is forced to turn you away
because they cant get the equipment from the manufacturer
to fix your car. So, you turn to the dealership. Unfortunately,
the dealership is 70 miles away. Had enough yet? To add insult to
injury, knowing they have you over a barrel, the dealership charges
you about 30% more on parts and labor than the independent would
have (so much for making more money).
Apparently this is not an unheard of scenario. In a recent USA
Today article, a BMW owner had a similar experience in Washington
state. In this case, the BMW could not be serviced locally and had
to be transported from a remote island in the Sound to a dealership
in Seattle. BMW paid the $200 fee for the transportation. But I
wonder what will happen the next time this gentlemans car
breaks down. Will BMW pay the transportation costs again?
Has BMW set a precedent for paying transportation costs for vehicles
that cannot be serviced locally? I sincerely doubt this savvy company
is intending to pay up every time a car owner finds himself in this
predicament. My guess is they complied in the Seattle case only
as a means of heading off negative publicity (the car owner was
mad as heck which is how USA Today learned of his dilemma). If this
scenario becomes the rule rather than the exception, BMW will either
make a blanket policy of refusing to pay these costs or find a way
of passing the cost on to the consumer. Either way, once again the
consumer loses.
What I find so perplexing is why car manufacturers would bite the
hand that feeds them (and I do consider it biting, since inconveniencing
the consumer of your products probably isnt a great idea).
The answer is complex and competition among dealerships and independent
repair shops is only a part of it. I believe this shortsightedness
is fueled by larger bottom line considerations such as the intense
competition between car manufacturers who want nothing more than
to keep their customers buying their cars. Think about it. Assuming
that the first rule of marketing is to keep in touch with your customer
or client, what better way for car manufacturers to keep in
touch than to force a customer to have his car repaired at
the dealership? When competition is as stiff as it is in the car
industry, letting a potential customer just wander the streets untethered
to the mother (dealer)ship could spell disaster. After all, what
if he spots a car produced by a different manufacturer that he prefers
over the one he has now?
And let us not forget that when competition heats up among manufacturers,
the parts and service department can generate much needed revenue
for a dealership. According to AAA, dealership labor rates tend
to run from $10 to $20 higher per hour than independent shops and
the standard dealer markup on parts from the manufacturer is 30%.
Once again, the consumer loses.
By telling us that independent dealerships are incapable of working
on our cars, the big manufacturers would like us to believe theyre
thinking only of our welfare. However, making the dealership my
only option for repairs sounds like its in their interest,
not mine. Its the sort of spin I find incredibly irritating.
The bottom line is this. When I spend what amounts to a down payment
on a house to buy a car, I absolutely DEMAND to have more than one
option for service and repairs. If car manufacturers have other
ideas, they might think about consulting consumers firstbecause
regardless of what they might think, without consumers, theyre
sunk!
Of course, treating the consumer with that sort of respect would
require that manufacturers actually care about consumers. Instead,
I believe they have complete disdain for us. Why else would they
consistently kick us in the pants? So, although Im not the
aggressive sort, when kicked, Im simply not evolved enough
to turn the other cheek. This time, I plan to come out fighting.
And unless you have a kick me sign on your back, you
might consider doing the same. Heres how.
Write to your congressional representatives and let them know this
latest assault on your freedom to choose is simply not ok. If enough
of us voice our anger, the legislative bill that is now before congress,
H.R. 2735 - Motor Vehicle Owners Right to Repair Act, will
be successful in ensuring that car owners can choose to have their
car serviced at either an independent shop or a dealership. In other
words, it will ensure that we consumers have a choice.
Not voicing your anger will mean that the auto industrys
incredibly powerful lobbying group will spend millions to successfully
keep we consumers from having a choice. Worse than that, once the
powers that be realize we dont care enough to fight back when
were kicked, word will travel to other industries. Dont
worry, theyre all asleep at the wheel, will be the banter
in those paneled boardrooms, as each does whatever they want and
can get away with. Soon that rumbling I referred to earlier will
become the deafening thunder of we consumers being trampled into
the ground.
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