AM I NEXT? IS THE HANDWRITING ON THE WALL FOR CAR DEALERSHIP EMPLOYEES?

Great changes are taking place in the car industry...

(1) Consumer car purchasing patterns are rapidly changing with the availability of pricing, specification, and car customization online. Most dealers have added e-commerce capabilities to their normal showroom-based activities.

(2) Driving habits have been greatly affected by the global pandemic, including lockdowns, and the general unavailability of destination locations and hospitality resources.

(3) The increasing push for smaller, greener vehicles, some hybrid gas/electric, and fully electric. The exception being pick-up trucks which seem to be available in increasing sizes.

(4) The increases in ownership costs, especially taxes, licenses, smog testing fees, cost of gasoline and diesel, and more expensive repairs.

(5) Look for increasing automation as onboard vehicle diagnostics, performance, and location are electronically transmitted to manufacturer’s government-interconnected data hubs that will support continuous diagnostics, taxes, insurance based on driving styles and mileage driven, and congestion pricing in certain high-traffic areas (similar to congestion pricing on toll roads). Yes, there is also the possibility that they will monetize your data and provide advertising or advice on in-car entertainment systems. You might even be asked to pay a monthly fee to be commercial-free?

(6) The nature of dealerships is changing. Tesla is spearheading a direct-to-consumer business model that will disintermediate many routine customer interactions with live sales personnel at dealerships. State franchising laws that protect dealerships are being legally challenged. Many dealerships may downsize or disappear as some dealers turn into delivery and repair stations.

All of which is leading to the consolidation of dealerships into mega-dealers with highly automated and specialized functions.

Be aware of a reduction in floor sales personnel and more automation between the customers and dealerships. Beware of more automated diagnostics and plug-and-play parts replacements requiring less-skilled mechanics.

Change is coming. There will always be a tomorrow, no matter how much you may try to ignore it. There are no guarantees in life or promises for a bright future. Just because something bad hasn't happened yet, doesn't mean it won't. It can happen to anyone, anytime, anywhere. No one is guaranteed to wake up tomorrow and still have a job by evening. Are you now wondering, Am I Next?

AM I NEXT? NO LOVE AT DENSO INTERNATIONAL AMERICA

Southfield, Michigan-based DENSO International America, a prominent manufacturer of automotive components, has announced the closure of its Greenville, North Carolina small motor production facility.

The closure will impact 475 employees between July and August of 2022.

According to a company spokesperson, "In an effort to optimize its North American manufacturing operations, DENSO announced plans to wind down production at its Greenville, North Carolina, facility by January 2023.

While DENSO continues to develop and manufacture a range of small motors, we will consolidate small motor products to suitable DENSO locations that can support multi-product business to remain efficient and meet customer needs.

After a thorough review of all our options, we made the difficult decision to wind down production at Greenville. As the automotive industry turns its focus to smart and self-driving vehicle technology, we have found it increasingly difficult to cost-effectively produce conventional motors and systems at the site. Those products will move to DENSO locations that can support multi-product business as their demand decreases."

Change is coming. There will always be a tomorrow, no matter how much you may try to ignore it. There are no guarantees in life or promises for a bright future. Just because something bad hasn't happened yet, doesn't mean it won't. It can happen to anyone, anytime, anywhere. No one is guaranteed to wake up tomorrow and still have a job by evening. Are you now wondering, Am I Next?

AM I NEXT? NO LOVE AT ALEXANDER DENNIS LTD.

Winnipeg, Manitoba, Canada-based NFI Group, a manufacturer of transit buses and motorcoaches and parent of Nappanee, Indiana-based Alexander Dennis Limited, has confirmed the previously announced closure of its two ADI Indiana facilities located in Nappanee and Peru, Indiana. The two facilities produce bus sub-assemblies and provide for the final assembly of buses for the North American market. Operations will be transferred to the company's other facilities.

The closure will impact 192 employees and is scheduled to occur between February 4, 2022, and May 6, 2022.

According to a company statement, “After a thorough review of our North American manufacturing locations, we have determined that rationalizing our ADI North American manufacturing locations is the required approach moving forward. As it is never easy to close locations and impact individuals’ careers, this important decision was not taken lightly. This integration, however, continues us on the necessary path for NFI as we execute our plan of transforming our organization into a more cost-efficient, integrated operating business.”

Change is coming. There will always be a tomorrow, no matter how much you may try to ignore it. There are no guarantees in life or promises for a bright future. Just because something bad hasn't happened yet, doesn't mean it won't. It can happen to anyone, anytime, anywhere. No one is guaranteed to wake up tomorrow and still have a job by evening. Are you now wondering, Am I Next?