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Auto
sales drive shaky economy by Christopher Key
When I was growing up in the 1950s, one of the most anticipated events of the year was the introduction of the new car models each fall. There were a lot of car-crazy kids like me for whom it ranked right up there with Christmas for sheer suspense and excitement. These days, new car models are introduced throughout the year. Car manufacturers still save some of their best surprises for the traditional fall introduction, however. The automobile market has fragmented a great deal in the ensuing years. Offering just a couple of sedans, a station wagon, and a convertible doesn’t cut it in today’s world of specialized vehicles. There may even be some younger people out there who don’t even know what a station wagon is. It’s what we had before minivans, SUVs, and crew cabs. In the 1950s, the sight of a foreign car would cause crowds to gather. Consumers are demanding that their vehicles serve more purposes than just getting from point A to point B. A perfect illustration of that fact is that the two best selling vehicles in the US are not cars at all, but Ford and Chevrolet pickup trucks. The marketing departments, naturally, want to please everyone all the time, which is why we have so-called “crossover” vehicles that can transform from a full size SUV into a full size pickup. It must be working, since the two originals, Chevrolet Avalanche and Cadillac Escalade EXT, have now been joined by a smaller version of the same idea, the Subaru Baja. Chevrolet even has plans to introduce a roadster pickup for those who can’t decide between a convertible and a truck. In the face of an economy that needs a tune-up, automobile dealers have been setting all kinds of new sales records. Manufacturers, who do much of their own financing, have been offering unheard-of low, and even zero, interest rates to keep the merchandise moving. It has worked well, much to the delight of local car dealers. The cost of all those high-profile financing deals is borne by the manufacturers, not the dealers, and the automakers are operating on very slim profit margins in order to keep the sales volume up. One of the other major changes in the auto industry is the emergence of women salespeople. Auto sales has long been one of the last preserves of male chauvinism, but the ramparts have been breached. Part of this may be due to the fact that women now make more than half the new car purchasing decisions. Those decisions are based on much more than just the color of the paint. Surveys show that women spend more time researching car purchases than men and the deciding issues are dependability, functionality and economic factors. Another motivation is that a successful car salesperson can make more money than in almost any other sales job. This is important in a society where two incomes are often necessary to achieve the American dream of home ownership. Still, depending on whose figures you believe, only seven to eleven percent of auto salespeople are women. The average work week in auto sales ranges from 50 to 60 hours or even more. For women with families, that can be a very demanding challenge. Only four of Bellingham’s new car dealerships employ women salespeople and most of them are relatively new at the auto game, although most have some background in sales. Sharon Chavira of Bellingham Hyundai used to sell vacuum cleaners. She claimed that her skills are such that she could sell me the clipboard she was holding. I took her word for it. “I have a gift for helping people make buying decisions,” Chavira said, “and I love helping this dealership grow.” She has been selling Hyundais for about three months now and it has not been without its challenges. “I’m hardheaded,” said Chavira, “and I had to make it clear to some of the guys that I was not a rug to be walked on.” Her willingness to bump heads with the males on their own terms has won their respect and Chavira said it feels like she is becoming part of the team. “There are three very important words in this business:”
said Chavira, Learning about cars, she pointed out, is no different than learning any other product. Dealerships and manufacturers usually provide extensive training resources to salespeople. She also gets to ‘rub elbows’ with the top salespeople in the business, an educational experience in itself. Part of what convinced Chavira to try auto sales was that it offered a lot of room for advancement. That’s important for someone whose goal is to retire at age 60. It’s also important to her to maintain an atmosphere of mutual respect with her customers. “I try to find out all I can about the customer,” said Chavira, “because I really care about people and I’m a good listener. I will do whatever it takes to be successful.” Two of Hyundai’s main selling points are value for the price and the warranty. Nearly all the Hyundai models sell for less than comparable competitors and the 10-year/100,000 mile warranty is the most extensive in the business. Safety is a top concern for 90 percent of her customers, according to Chavira, and Hyundai has made that a top priority. Hyundai’s Santa Fe, a small SUV, recently came out on top in crash test ratings. Chavira says the hottest sellers are the Sonata, a mid-size sedan, and the sporty Tiburon. New this year is the Tiburon GTV-6 with a 181 horsepower, 24-valve engine. It comes with front and side airbags, independent sport suspension and an Infinity sound system. “We are selling more than cars here,” said Chavira. “We’re selling our business and our service.” Selling the business may be even more important to Rochele Vermeulen at the Bellingham Chrysler Center. She expects to eventually take over the dealership now owned by her father. With that goal in mind, she has set out to learn as much as she can about every part of the operation. For the past six years, she has worked as a detailer, janitor, in the service department and in parts delivery. In addition to her current responsibilities as a salesperson, she is taking management courses at Whatcom Community College to help prepare for her future responsibilities. She has also spent lots of time taking training courses offered by the manufacturer and has been awarded Gold Certification for high customer sales satisfaction. Vermeulen has had no problems invading a traditionally male domain and prefers to attribute it to the “family-type atmosphere” fostered by her father rather than to the fact that she’s the boss’s daughter. “Our customers have reacted very well to me as a salesperson,” said Vermeulen, “especially single women. Women are definitely buying more cars, but they are often more difficult to convince.” The hottest selling vehicles at Bellingham Chrysler Center are minivans and big diesel trucks, according to Vermeulen. She attributes this to the fact that Chrysler Corporation (now Daimler Chrysler) pioneered minivans and to the extensive 7-year/70,000 mile warranty offered with their vehicles. Other selling points of Chrysler vehicles include styling, selection, price ranges, and the fact that they’re American-made. One of Chrysler’s biggest successes, the PT Cruiser, is getting a booster shot for 2003 with the introduction of a turbo package that offers 65 horsepower more than the standard model. A new 5.7 liter, 345 horsepower hemi gas engine will also be introduced for the heavy-duty trucks. Later in the year, the new Neon SRT4 will take on Subaru’s popular WRX in the mini-musclecar niche. The SRT4 features a turbocharged 215 horsepower 4-cylinder engine that is said to rocket the car from 0-60 in 5.9 seconds. Linda Abitia says a “family-type atmosphere” is also important at the dealership she works for. It should be. Diehl Ford has been owned by the same family for 94 years. This translates into lots of repeat customers. They are particularly determined to encourage women salespeople and currently have three on the staff. Abitia had been sales manager at Olive Garden Restaurant and Victoria’s Secret before a friend who is finance manager at Diehl convinced her to try selling cars. “It was not really a tough change for me,” Abitia said. “I’ve been in sales most of my career. You just have to be aggressive and not afraid to talk to people.” She sells both new and used vehicles with the goal of meeting the customers’ needs to the best of her ability and emphasizes the importance of service after the sale. Abitia has detected no resentment on the part of her male colleagues at Diehl who have worked with women salespeople for the past six years. “We have a lot of customers who ask to work with a woman,” Abitia said, “not just females, but couples, as well.” She cites excellent training offered by the dealership and manufacturer for helping her keep up with the new ideas and product knowledge vital to her sales job. She admits, though, that the occasional customer will know more than she does. “If a woman is looking for a great career,” said Abitia, “don’t be afraid of auto sales. It’s a great living. The company is behind you and if you are a ‘people’ person, this job is great.” Diehl Ford has recently been designated an official dealer for pre-owned BMWs and the prospect of selling the high-end German cars puts a gleam in Abitia’s eye. One of the hottest segments of the auto market is luxury SUVs. Abitia is excited about the newly redesigned Lincoln Navigator that features such slick gadgets as a power liftgate, power folding third seat and power deployable running boards, which facilitate getting in and out of the vehicle. Another big hit is the new retro-look Thunderbird. But if you want one, you’ll have to get on a waiting list that is about a year long at this point. Another dealership that encourages women salespeople is King Nissan Volvo. Nancy Kink has been a sales and leasing consultant there for the past year. She has worked in real estate and in a bath shop, but had a mentor who thought she would be good at auto sales. Apparently, the mentor was right. “I love this job,” Kink said. “You get to meet all kinds of people and it’s just great when they drive off with a smile.” She admits that she has been lucky in finding a dealership that encourages women and where her male colleagues are very open to her presence on the staff. “Women customers want a woman salesperson,” Kink said. “They know I will listen and understand. Men sometimes won’t listen to me, but most of them are open to a woman salesperson.” Kink appreciates the fact that there is room for advancement at King. Their current finance manager, Becky Nymoen, started in sales. “I basically came in here and wouldn’t let them tell me no,” said Kink. “If you can sell yourself, then you can sell the product. All you need is a company that’s open to women.” As with the other women salespeople, Kink credits excellent training on the part of both the dealership and manufacturers. “I have gained more knowledge since I have been here,” Kink said, “than at any other period of my life.” SUVs remain among the hottest selling vehicles on the market and Kink says the new Volvo XC-90 will give the Swedish automaker a larger presence in that market and will complement the Cross Country wagon. Volvo has always been known for safety and durability, but models like the S-60 sedan are doing much to overcome the staid, rather boxy image that the cars once had. “This is not your grandfather’s Volvo,” Kink said. “Low financing brings people in, but the product has to speak for itself.” Nissan also has some exciting news for 2003 with the reintroduction of its legendary Z-car. That legend began with the 240-Z more than 30 years ago. The latest incarnation, the 350-Z, boasts a 3.5 liter, 287 horsepower V-6 and five different trim levels that allow the customer to tailor the car toward performance or luxury, or both. For the 2003 model year, Nissan will also introduce the Murano, a new SUV that will complement the popular Pathfinder and Xterra models. With women making the majority of the buying decisions on new cars and nearly half the decisions on used cars, women salespeople should become more common at area dealerships. But could any of these women sell a car to a skeptical journalist? In a New York minute.
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Nissan has resurrected its legendary Z-car for the 2003 model year. King Nissan managed to hold onto a 350-Z for about two hours before it sold.
Sharon Chavira of Bellingham Hyundai shows off the sleek new Tiburon sports model.
Rochele Vermeulen of Bellingham Chrysler Center says the popular PT Cruiser will offer a turbocharged engine package for 2003.
Linda Abitia of Diehl Ford is excited about selling the line of pre-owned BMWs the dealership has added to its stable.
Nancy Kink of King Nissan Volvo says the new Volvos offer a much racier image in addition to their reputation for safety. |
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