Honda’s Mendel Says Change is Inevitable
Wednesday, January 13th, 2010Whether you are currently comparing 2010 Honda Accord prices, or are waiting for the commercial launch of the CR-Z hybrid, you can expect some change in the way automobile sales are handled as we move further into the twenty-first century.
In fact, John Mendel, executive vice president for automobile sales at American Hondo Motor Co says that not only is change inevitable at the retail automotive level, established automakers and dealers should be the force behind any change, lest eager entrants from emerging markets like China and India take the world stage instead.
Mendel, speaking at the Automotive News World Congress said, “We need to create a new sales and service environment that the customer doesn’t simply tolerate but desires.” He also said that he doesn’t know the specifics of any forthcoming changes, but that based on what he’s seen in his own company’s motorcycle division, the thought of similar changes in the retail automotive industry, “…keeps me awake at night.”
Currently, Honda’s motorcycle division is being challenged by else-branded motor scooters that are less technologically advanced, but lower priced, and with a look that is similar to the Honda machines. Such vehicles are not being sold at traditional motorcycle dealerships, but instead, are available at auto parts stores, discount stores, sporting goods stores, and even in shopping mall kiosks.
Mr. Mendel said that the sales process must change at the dealership level. He added that Honda has already begun brainstorming about added-value custolmer experiences at the point of purchase. The process is beginning with Acura, rather than Honda itself, because that brand’s network is smaller.
Mendel emphasised, “It’s going to change; somebody is going to change it. It might as well be us.”
He also said that he believes there have been industry-wide steps toward stability, but cautioned against assuming an improved market will solve the industry’s problems. Energy sustainability and security, and greenhouse gas reductions are all areas that must still be addressed.
“The key to the future will be our ability to anticipate the change and strengthen ourselves to prepare for it,” Mendel said.
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