It’s important for dealers to communicate to their teams during uncertain times
As I sit here the Sunday after Liberation Day and ponder what the U.S. administration has done, I can’t help but be distracted by the abundance of “expert opinions” that are clogging our airways and screens.
It reminds me of a conversation I had with my wife’s grandmother when she turned 99 several decades ago. She explained one of her life’s lessons to me: that paper never refuses ink, meaning that anyone can write anything at any time on a piece of paper without rejection.
This holds true today, with the various platforms available to anyone who professes to be a social media influencer.
Liberation Day announcements were based on a series of questionable facts, which were used to justify challenging all countries in the world in support of ambitious desires to create a new U.S.-centric global economic rebalancing.
The result, according to Bank of Canada surveys, is that Canadians believe our country is quickly sliding toward recession. Newly-minted trade concerns are causing businesses of all shapes and sizes to reassess their supply chains and reevaluate their approach to higher costs and related product pricing. Consumer anxiety is on the rise as most Canadians brace for higher prices, loss of job security, mortgage renewals and the overall threat to their long-term financial security.
Buy Canadian slogans popped up everywhere, many without the ability to determine actual product origins in our fully integrated North American economy. To say things are messy at the moment is a massive understatement. The stage is set for possible prolonged mayhem.
So, what does all this mean for Canadian automobile dealers? As I have said many times through my articles, industry speeches, and future-oriented reports, not all brands will be affected in the same way and at the same time.
Stay in touch with your dealer council as well as provincial and national dealer associations. Talk to your colleagues and stay close to your financing sources. This is not the time to act like you are alone on a remote island.
As brand franchisees, single-point dealers have little choice but to follow their brand’s lead. That being said, not all brands openly share their plans with their dealers, which sometimes makes following their lead impossible.
Nonetheless, in the absence of formal direction, common sense must rule. Protecting your investment and doing right by your customers and employees should be the mantra of the day.
Stay in touch with your dealer council as well as provincial and national dealer associations. Talk to your colleagues and stay close to your financing sources. This is not the time to act like you are alone on a remote island.
As multi-franchise dealer groups, big and small, public and private, your challenge is all that more complex. Your approach should be to make sure all your dealerships share ideas as to how to stay the course, consistently executing your overall group’s plan.
Communication is critical, allowing for the various brand idiosyncrasies to function within your group’s dynamic. Your group values must remain unaffected, serving to direct actions of all your dealers to support your employees, service your customers and be leaders in your local communities. This is not the time to take your foot off the pedal; rather, it’s time to reinforce your values.
For dealer operations of all shapes and sizes, it’s important to stick to what you know and not get distracted. There will be many distractions thrown at you. Try not to bite. Passionately follow your processes and live your values by example day in and day out.
No one knows how long the turmoil will last. There is no reason why you should not be able to manage through this period of upheaval successfully.
After all, automobile dealerships are made up of a number of unique but interconnected businesses under one roof. This provides an opportunity to be successful in one way or another, no matter what curves and sliders are thrown at you.
Most dealers have significant local market car parks (aka. units in operation, vehicles on the road) whose vehicles require ongoing repair, maintenance, and periodic replacement. There are used vehicle reconditioning opportunities. In the short term, cross-border opportunities might diminish. This impact could be offset and perhaps balanced by increased domestic activity.
We are in the early days of this turmoil. Where we are headed is anybody’s guess. From a dealer’s business perspective, generally, Canadians still need a vehicle to facilitate employment. Existing leasing and financing terms will expire, drawing some customers back into the market. Others will keep vehicles longer, creating fixed operations opportunities. Dealers have the proven ability to pivot and follow the various movements of their customers.
Now is the time to stay alert, keep a watchful eye on your brand’s behaviour and pivot to meet your customers’ changing habits. Most importantly, step up the communications with your employees.
They will have anxiety and will need your guidance and leadership to help them successfully navigate through this. Your team is your most important asset. It’s essential that your team stay within their capabilities, rely on each other and demonstrate your dealership’s values inside and outside your store’s walls.
