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		<title>Fear not the factory-owned store Mr. Dealer</title>
		<link>http://dcautogeek.com/?p=4078</link>
		<comments>http://dcautogeek.com/?p=4078#comments</comments>
		<pubDate>Wed, 01 May 2013 13:01:08 +0000</pubDate>
		<dc:creator>Juan Barnett</dc:creator>
				<category><![CDATA[Uncategorized]]></category>
		<category><![CDATA[automotive retail]]></category>
		<category><![CDATA[dealers]]></category>
		<category><![CDATA[Ford]]></category>
		<category><![CDATA[franchise]]></category>
		<category><![CDATA[history]]></category>
		<category><![CDATA[Tesla]]></category>

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		<description><![CDATA[The topic of automotive franchise has been in the news lately as Tesla pushes into more states seeking permission to operate factory-owned stores. I decided to browse through a few books to see what history had to say on the topic of the automotive franchise. Below is a brief summary of some of the information&#8230;<br /><span class="more-link-wrapper"><a href="http://dcautogeek.com/?p=4078" class="more-link">Continue Reading...</a></span>]]></description>
				<content:encoded><![CDATA[<p style="text-align: left;"><img class="aligncenter" alt="" src="http://grobbel.org/genealogy/rivard/rivard_brothers_garage_early_1920s.jpg" width="534" height="418" />The topic of automotive franchise has been in the news lately as Tesla pushes into more states seeking permission to operate factory-owned stores. I decided to browse through a few books to see what history had to say on the topic of the automotive franchise. Below is a brief summary of some of the information I learned.</p>
<p>In the early 1900s product inventory was a big driver in creating the need for the modern day auto dealer. Automakers like Ford didn’t have<span id="more-4078"></span> the capital or capacity to produce, store and sell (door to door in some cases) vehicles while also keeping up its focus and investment in the manufacturing process.</p>
<p>Many automakers saw franchise dealers as a way to offload inventory and give them a wider geographical availability of vehicles.</p>
<p>Automakers realized early on that for the automobile to succeed they would need to provide mechanical support to buyers which meant having local part inventories and trained mechanics. Automakers saw revenue from service and parts as another carrot to hang in front of businessmen looking to venture into the automotive retail space.</p>
<p>Interesting note: Ford had a grand plan to sell cars at Wannamaker’s Department stores, but that plan fell apart. Had this plan worked, today’s automotive retail footprint could look very different &#8211; Apple stores sitting adjacent to Ford stores at your local shopping mall.  </p>
<p>Automakers seemed to have an initial thought that cutting out the middleman would create bigger profits for the automakers. As Ford learned, selling direct came with many financial requirements, legal obligations and well, headaches.</p>
<p>As automakers mastered manufacturing and production was up-and-running, they would eventually turn their attention to marketing and financing.</p>
<p>Fun Note: Henry Ford disliked the idea of automotive credit.</p>
<p><b>What are they scared of?</b></p>
<p>Historically, and contrary to what many think, the automotive franchise has never been a battle over factory-owned vs. independent-owned. In the 1950s, when the automotive market started to take off, dealers were fighting for two things: protection from arbitrary termination and remedy rights.</p>
<p>Dealers weren’t out trying to ward off factory-owned stores. They were trying to protect their investment &#8211; their franchise.</p>
<p>A perfect example of the dealer vs. automaker: In the mid ‘50s GM decided to start offering one-year franchise agreements. This allowed GM to let the contract self-terminate and refuse to renew. In many cases the courts sided with GM saying the franchisee entered into the contract with the knowledge that it was only binding for one year and GM didn’t technically terminate the agreement.   </p>
<p>Franchise termination wasn’t the only concern of dealers.  In 1955 a congressional subcommittee surveyed 20,000 dealers and found that a primary concern from dealers was overproduction. Dealers said automakers were forcing them to take on excess inventory just to keep factory production in line with post-war capacity.</p>
<p><b>Relax fellas</b></p>
<p>It would appear that a franchise model has always been the ideal way to sell cars. It allows automakers to; control a certain market (limit franchises), provide a monetary incentive-based ownership (<i>salaried corporate employees would have little personal incentive to sell other than being fired</i>).  Dealers also served as the front line for any dip in market demand and were better suited to deal with the used car market.</p>
<p>It makes sense then that dealer’s coil like a rattlesnake when someone mentions changing franchise laws. Franchise laws are what protect dealers from corporate coercion and termination decisions.  But if large automakers have no interest in owning retail locations, as history would indicate, then why not let a low volume maker like Tesla give it a go.</p>
<p><b>Who knows –in 5 years’ time Tesla could learn what Ford learned 100 years-ago; selling cars direct to consumers has very few benefits. </b></p>
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		<title>Senate bill will make the car stuff you buy online cost more</title>
		<link>http://dcautogeek.com/?p=4071</link>
		<comments>http://dcautogeek.com/?p=4071#comments</comments>
		<pubDate>Tue, 23 Apr 2013 12:29:04 +0000</pubDate>
		<dc:creator>Juan Barnett</dc:creator>
				<category><![CDATA[The Hill]]></category>
		<category><![CDATA[congress]]></category>
		<category><![CDATA[Online buying]]></category>
		<category><![CDATA[Senate]]></category>

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		<description><![CDATA[Today the Senate will begin a 30 hour (if no one seeks to limit debate) deliberation of Senate Bill 743, the Marketplace Fairness Act of 2013. This bill would permit states to charge sales tax for purchases made online otherwise known as ‘remote sales.’ A remote sale is defined as, “A sale into a State&#8230;<br /><span class="more-link-wrapper"><a href="http://dcautogeek.com/?p=4071" class="more-link">Continue Reading...</a></span>]]></description>
				<content:encoded><![CDATA[<p style="text-align: left;"><a href="http://dcautogeek.com/wp-content/uploads/2013/04/SalesTaxLead.jpg"><img class="aligncenter  wp-image-4069" alt="SalesTaxLead" src="http://dcautogeek.com/wp-content/uploads/2013/04/SalesTaxLead.jpg" width="582" height="338" /></a>Today the Senate will begin a 30 hour (if no one seeks to limit debate) deliberation of Senate Bill 743, the Marketplace Fairness Act of 2013.</p>
<p>This bill would permit states to charge sales tax for purchases made online otherwise known as ‘remote sales.’ A remote sale is defined as, “A sale into a State in which the seller would not legally be required to pay, collect, or remit State or local sales and use taxes unless provided by this Act.”</p>
<p>States, rightfully so, support this measure. Economists predict <span id="more-4071"></span>the bill could generate as much as $23 billion dollars in revenue for states. With many states still recovering from the economic downturn and a shrinking federal budget, why wouldn&#8217;t they support this windfall of revenue.</p>
<p>States aren’t the only ones happy about this. Best Buy, Wal-Mart and any other retailer that has a brick and mortar operation sees this as a chance to level the playing field with their online retailers.</p>
<p><strong>How does this impact car people of America?</strong></p>
<p>Simple, take whatever car parts normally cost you online, add your state sales tax and that is your impact. I’ve participated in many online group buys and purchased countless car-related items from online retailers and I’ve concluded; this bill sucks.</p>
<p>Example: Currently when buying tires online in Virginia, notice the large ZERO next to sales tax. Should this law be passed that will reflect normal Virginia sales tax.</p>
<p><a href="http://dcautogeek.com/wp-content/uploads/2013/04/TireSales-Tax.png"><img class="aligncenter size-full wp-image-4070" alt="TireSales Tax" src="http://dcautogeek.com/wp-content/uploads/2013/04/TireSales-Tax.png" width="561" height="278" /></a></p>
<p><strong>Don’t call your congressman, yet</strong></p>
<p>The bill still has a long way to go. Just like an endurance race, this 30-hour legislative stretch could result in a DNF. The biggest concern for those in support of the bill is that an amendment is offered that would create federal revenue.</p>
<p>That would result in a ‘blue slip’, a legislative black flag.</p>
<p>Article I, Section 7 of the Constitution says, “All bills for raising Revenue shall originate in the House of Representatives.” If the House receives a bill from the Senate that raises revenue, the House returns the legislation to the Senate with a blue slip attached. This lets the Senate know the House will not consider the legislation.</p>
<p>While this bill isn’t guaranteed to become law, it is a money generator for states. That means (most) every Governor in America will be on the phone today with their state’s two elected officials in the upper chamber asking for them to support this measure.</p>
<p><strong>A possible upside for the motoring masses?</strong></p>
<p>The ability to tax online purchases could keep states from increasing their fuel taxes. This means you&#8217;d pay more for online parts, but less for your day-to-day motoring juice.</p>
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		<title>Women have been challenging men on the race track for 100 years</title>
		<link>http://dcautogeek.com/?p=4058</link>
		<comments>http://dcautogeek.com/?p=4058#comments</comments>
		<pubDate>Mon, 15 Apr 2013 18:54:12 +0000</pubDate>
		<dc:creator>Juan Barnett</dc:creator>
				<category><![CDATA[Industry]]></category>
		<category><![CDATA[history]]></category>
		<category><![CDATA[racing]]></category>
		<category><![CDATA[Stirling Moss]]></category>
		<category><![CDATA[women]]></category>

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		<description><![CDATA[The internet erupted in outrage over comments made by Stirling Moss on women and their ability to compete with men in auto racing. I decided to see what history had to say on the subject. Looking back 100 years, it seems women were very active in auto racing. Even more so than they are now. It appears&#8230;<br /><span class="more-link-wrapper"><a href="http://dcautogeek.com/?p=4058" class="more-link">Continue Reading...</a></span>]]></description>
				<content:encoded><![CDATA[<p><a href="http://dcautogeek.com/wp-content/uploads/2013/04/LEadWomen-Racing.jpg"><img class="aligncenter size-full wp-image-4059" alt="LEadWomen Racing" src="http://dcautogeek.com/wp-content/uploads/2013/04/LEadWomen-Racing.jpg" width="580" height="350" /></a>The internet erupted in outrage over <a href="http://jalopnik.com/stirling-moss-isnt-just-wrong-about-women-drivers-he-472966683">comments made by Stirling Moss </a>on women and their ability to compete with men in auto racing.</p>
<p>I decided to see what history had to say on the subject. Looking back 100 years, it seems women were very active in auto racing. Even more so than they are now.</p>
<p>It appears it wasn&#8217;t uncommon for them to openly challenge men in races. They competed with one another globally for a racing title, <em>Queen of Racing World</em>.</p>
<p>While this isn&#8217;t by any means a full historical account of women in racing, these few newspaper stories (1914-1918) provide <span id="more-4058"></span>an interesting perspective on what auto racing looked like for women 90+ years ago. </p>
<p style="text-align: center;"><a href="http://dcautogeek.com/wp-content/uploads/2013/04/WomanRacing1915.jpg"><img class="aligncenter  wp-image-4055" alt="WomanRacing1915" src="http://dcautogeek.com/wp-content/uploads/2013/04/WomanRacing1915.jpg" width="580" height="884" /></a> <a href="http://dcautogeek.com/wp-content/uploads/2013/04/racer-girl-2-final.jpg"><img class="aligncenter  wp-image-4056" alt="racer girl 2 final" src="http://dcautogeek.com/wp-content/uploads/2013/04/racer-girl-2-final.jpg" width="580" height="827" /></a> <a href="http://dcautogeek.com/wp-content/uploads/2013/04/Racer-woman.jpg"><img class="aligncenter  wp-image-4057" alt="Racer woman" src="http://dcautogeek.com/wp-content/uploads/2013/04/Racer-woman.jpg" width="580" height="848" /></a></p>
<p>&nbsp;</p>
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		<title>How to turn the reusable grocery bag into an automotive marketing machine</title>
		<link>http://dcautogeek.com/?p=4036</link>
		<comments>http://dcautogeek.com/?p=4036#comments</comments>
		<pubDate>Mon, 15 Apr 2013 16:53:53 +0000</pubDate>
		<dc:creator>Juan Barnett</dc:creator>
				<category><![CDATA[Advermarketing]]></category>
		<category><![CDATA[advertising]]></category>
		<category><![CDATA[automotive]]></category>
		<category><![CDATA[Branding]]></category>
		<category><![CDATA[marketing]]></category>

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		<description><![CDATA[I hate grocery stores. They are cold and filled with people who are either slink around aimlessly or speed down aisles like Supermarket Sweep contestants; both of which are irritating. People, driving a grocery cart is like driving a car; similar rules apply. Don’t block the box, look both ways and most importantly don’t park in a NO&#8230;<br /><span class="more-link-wrapper"><a href="http://dcautogeek.com/?p=4036" class="more-link">Continue Reading...</a></span>]]></description>
				<content:encoded><![CDATA[<div id="attachment_4037" class="wp-caption aligncenter" style="width: 590px"><a href="http://dcautogeek.com/wp-content/uploads/2013/04/BagLead.jpg"><img class="size-full wp-image-4037  " alt="BagLead" src="http://dcautogeek.com/wp-content/uploads/2013/04/BagLead.jpg" width="580" height="326" /></a><p class="wp-caption-text">Apologize for craptastic image. Photoshop died. Resorted to Paint.</p></div>
<p style="text-align: left;">I hate grocery stores. They are cold and filled with people who are either slink around aimlessly or speed down aisles like Supermarket Sweep contestants; both of which are irritating.</p>
<p>People, driving a grocery cart is like driving a car; similar rules apply. Don’t block the box, look both ways and most importantly don’t park in a NO PARKING ZONE (like in front of the meat section).</p>
<p>As frustrating as grocery shopping can be, it does give me a chance to <span id="more-4036"></span>people watch, which is a beloved pastime of mine.</p>
<p>The grocery is a fascinating place to people watch. Not only do you get to watch people interact with each other, you also get to see what kind of food they buy. And if what that say is true, that <em>you are what you eat</em>, then the grocery cart is a rolling statement about who a person is.</p>
<p>This past Sunday I noticed just how many people were carrying reusable grocery bags. Many cities have a per-bag tax on plastic/paper bags and grocery stores offer discounts for buyers who opt-out of plastic and paper. There is no denying it, the reusable bag is here to stay.</p>
<p><strong>Is it a branding opportunity?</strong></p>
<p>A woman wheeled by me in the produce section. Four reusable bags sat inside her cart. Her two small children followed like a pair of well-behaved ducklings. She stopped to let her little ones help her pick out a few apples. There stood a  mother and  two kids, deciding on which apples to put in their green, <em><strong>unbranded</strong></em>, reusable grocery bag.</p>
<p>What if those reusable bags were adorned with an automaker&#8217;s logo? That mother, and her kids, are now a walking billboard. The perfect image of <strong>family, safety and environment. </strong>Every other shopper will make an inference that this mother (or father) values Brand X to carry her or his children and that Brand X also cares enough about the planet&#8217;s wellbeing to provide the family with reusable grocery bags.</p>
<p><strong>Time to Act</strong></p>
<p>If you’re reading this, and happen to be the Chief Marketing Officer of a large automotive brand, set aside a few extra dollars in your marketing budget for a pallet or three of reusable grocery bags. The next time someone buys a family-friendly vehicle from your brand make sure to toss a few of these bags in the back.</p>
<p><strong>They’ll thank you, again and again. <em>Every weekend.</em></strong></p>
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		<title>2014 Jeep Cherokee: An explosion of off-road colors</title>
		<link>http://dcautogeek.com/?p=4025</link>
		<comments>http://dcautogeek.com/?p=4025#comments</comments>
		<pubDate>Sat, 13 Apr 2013 02:23:25 +0000</pubDate>
		<dc:creator>Juan Barnett</dc:creator>
				<category><![CDATA[Advermarketing]]></category>
		<category><![CDATA[Industry]]></category>
		<category><![CDATA[Chrysler]]></category>
		<category><![CDATA[design]]></category>
		<category><![CDATA[Jeep]]></category>
		<category><![CDATA[Mopar]]></category>

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		<description><![CDATA[After writing about the Jeep Cherokee earlier today I started to wonder  how it might look like in a few other colors. Using what little knowledge I have of Photoshop, I made the following colorized versions of Jeep&#8217;s new CUV in Trailhawk trim. (CLICK READ MORE  FOR AN EXPLOSION OF COLORFUL JEEPS) To read more&#8230;<br /><span class="more-link-wrapper"><a href="http://dcautogeek.com/?p=4025" class="more-link">Continue Reading...</a></span>]]></description>
				<content:encoded><![CDATA[<p style="text-align: left;"><a href="http://dcautogeek.com/wp-content/uploads/2013/04/ColorJeepLead.jpg"><img class="aligncenter size-full wp-image-4032" alt="ColorJeepLead" src="http://dcautogeek.com/wp-content/uploads/2013/04/ColorJeepLead.jpg" width="580" height="300" /></a>After writing about the Jeep Cherokee earlier today I started to wonder  how it might look like in a few other colors.</p>
<p style="text-align: left;">Using what little knowledge I have of Photoshop, I made the following colorized versions of Jeep&#8217;s new CUV in Trailhawk trim. (CLICK <em>READ MORE</em>  FOR AN EXPLOSION OF COLORFUL JEEPS)<span id="more-4025"></span></p>
<p style="text-align: center;"><a href="http://dcautogeek.com/wp-content/uploads/2013/04/Sand-Jeep.jpg"><img class="aligncenter  wp-image-4026" alt="2014 Jeep Cherokee Trailhawk" src="http://dcautogeek.com/wp-content/uploads/2013/04/Sand-Jeep.jpg" width="580" height="363" /></a> <a href="http://dcautogeek.com/wp-content/uploads/2013/04/Black-Jeep.jpg"><img class="aligncenter  wp-image-4027" alt="2014 Jeep Cherokee Trailhawk" src="http://dcautogeek.com/wp-content/uploads/2013/04/Black-Jeep.jpg" width="580" height="363" /></a> <a href="http://dcautogeek.com/wp-content/uploads/2013/04/Orange-Jeep-2.jpg"><img class="aligncenter  wp-image-4028" alt="2014 Jeep Cherokee Trailhawk" src="http://dcautogeek.com/wp-content/uploads/2013/04/Orange-Jeep-2.jpg" width="580" height="363" /></a> <a href="http://dcautogeek.com/wp-content/uploads/2013/04/Green-Jeep.jpg"><img class="aligncenter  wp-image-4029" alt="2014 Jeep Cherokee Trailhawk" src="http://dcautogeek.com/wp-content/uploads/2013/04/Green-Jeep.jpg" width="580" height="363" /></a> <a href="http://dcautogeek.com/wp-content/uploads/2013/04/Pink-Jeep.jpg"><img class="aligncenter  wp-image-4030" alt="2014 Jeep Cherokee Trailhawk" src="http://dcautogeek.com/wp-content/uploads/2013/04/Pink-Jeep.jpg" width="580" height="363" /></a> <a href="http://dcautogeek.com/wp-content/uploads/2013/04/Aztec-Orange.jpg"><img class="aligncenter  wp-image-4031" alt="2014 Jeep Cherokee Trailhawk" src="http://dcautogeek.com/wp-content/uploads/2013/04/Aztec-Orange.jpg" width="580" height="363" /></a></p>
<p>To read more about the new Jeep here is a link to Chrysler&#8217;s media page on it: <a href="http://media.chrysler.com/newsrelease.do?id=14034&amp;mid=4">MEDIA LINK</a></p>
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